Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2324

Introduced by Assembly Member Eggman

February 18, 2016

An act to amend Sections begin insert 47000.5, end insert 47001, 47004, 47020, begin insert and end insert 47021 of, and to add Section 47005.4 to, the Food and Agricultural Code, relating to certified farmers’ markets.

LEGISLATIVE COUNSEL’S DIGEST

AB 2324, as amended, Eggman. Certified farmers’ markets.

Existing law provides for the regulation of certified farmers’ markets and authorizes the Secretary of Food and Agriculture to adopt regulations to encourage the direct sale by farmers to the public of all types of California agricultural products. Existing law requires vendors of agricultural products selling within a certified farmers’ market to comply with specified requirements. Existing law makes it unlawful to violate the provisions regulating certified farmers’ markets, and authorizes the secretary or a county agricultural commissioner, in lieu of prosecution, to levy a civil penalty against a person who violates those provisions. begin insert Existing law defines “agricultural product” for purposes of the certified farmers’ market provisions. end insert

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This bill would revise the definition of “agricultural product” to include wool, and would also specify that certain products that are not agricultural products may be sold at a certified farmers’ market if the operator of the certified farmers’ market ensures that certain conditions are satisfied, including that the product is offered for sale by a producer who is authorized to sell agricultural products at the certified farmers’ market.

end insert

This bill would specify the Legislature’s intent that the secretary, in adopting those regulations and regulations clarifying the provisions regulating certified farmers’ markets, endeavor to keep costs incurred by farmers and certified farmers’ market operators at a minimum.

This bill would additionally require vendors of agricultural products at certified farmers’ markets to keep specified sales records for at least begin delete 6 end delete begin insert 12 end insert months and would require a vendor to make those records available for inspection by any state or county enforcement agency within begin delete 72 hours end delete begin insert 3 business days end insert of delivery of the request or within a reasonable time period, as specified. The bill would also require a certified farmers’ market operator, upon written request by a state or county enforcement agency pursuant to an investigation of an alleged violation of a specified law, to begin insert commence to end insert note and make record of the product identity of all fresh fruits and vegetables offered for sale by a vendor, and to furnish the agency with a copy of those notes and records within begin delete 72 hours end delete begin insert 3 business days end insert of begin delete the end delete begin insert a subsequent end insert request or within a reasonable time period, as specified. By imposing additional requirements on vendors and operators of certified farmers’ markets, the violation of which would be a crime, the bill would impose a state-mandated local program.

Existing law requires a producer to obtain a certified producer’s certificate from a county agricultural commissioner before selling at a certified farmers’ market and also requires the Department of Food and Agriculture to maintain a current listing of certified producers.

This bill would require a county agricultural commissioner to forward a digital copy of each certified producer’s certificate issued to the department and would require the department to maintain an online, publicly accessible database listing all current certified producer certificates. By imposing additional duties on county agricultural commissioners, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 47000.5 of the end insert begin insert Food and Agricultural
Code end insert begin insert is amended to read: end insert

47000.5.  

The following definitions apply to this chapter, unless
otherwise specified:

(a)  begin insert (1) end insert begin insert   end insert “Agricultural product” means a fresh or processed
product produced in California, including fruits, nuts, vegetables,
herbs, mushrooms, dairy, shell eggs, honey, pollen, unprocessed
bees wax, propolis, royal jelly, flowers, grains, nursery stock, begin insert wool, end insert
livestock meats, poultry meats, rabbit meats, and fish, including
shellfish that is produced under controlled conditions in waters
located in California. begin delete Products end delete

begin insert (2) end insert begin insert   end insert begin insert Products end insert that are characterized as services, arts, crafts,
bakery, candies, soaps, balms, perfumes, cosmetics, pottery,
clothing, fabrics, pastas, compost, fertilizers, candles, ceramics,
foraged foods, and types of wares are not agricultural products for
purposes of this chapter. A product that combines an agricultural
product with a nonagricultural product or service in a manner that
materially increases the purchase price of the product shall
disqualify the product from being sold as an agricultural product
for purposes of this chapter. begin insert A product that is not an agricultural
product may be sold within the location of a certified farmers’
market if the operator of the certified farmers’ market ensures that
the following conditions are satisfied: end insert

begin insert

(A) The product is composed entirely of agricultural products
grown by the producer, except for incidental ingredients and
flavorings.

end insert begin insert

(B) The product is being offered for sale by a producer who is
otherwise authorized to sell agricultural products at the certified
farmers’ market.

end insert

(b) “Practice of the agricultural arts” means the undertaking of
being predominantly responsible for the decisions and actions
encompassing the various phases of producing an agricultural
product. The practice of the agricultural arts for fruit, floral, nut,
vegetable, and other plant products includes directive or actual
responsibility for all the actions of planting, growing, fertilizing,
irrigating, cultivating, pest control, and harvesting. The practice
of the agricultural arts for agricultural animal products includes
directive or actual responsibility for a substantial time of the
raising, feeding, veterinary care, and product harvesting.

(c) “Producer” means a person, partnership, corporation, or an
otherwise legally formed farm or ranch that produces agricultural
products by the practice of the agricultural arts upon land that the
person or entity owns, rents, leases, sharecrops, or otherwise
controls and has the documented legal right to possession. A person
or entity that rents, leases, or otherwise acquires the right to
possession of property essentially only for or limited to the period
of the harvest season of the agricultural products produced on that
property shall not be considered a producer under the provisions
of this chapter.

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 47001 of the Food and Agricultural Code is
amended to read:

47001.  

(a) The secretary may adopt regulations to encourage
the direct sale by farmers to the public of all types of California
agricultural products. It is the intent of the Legislature that, in
adopting those regulations, the secretary shall endeavor to keep
costs incurred by farmers and certified farmers’ market operators
to a minimum, recognizing that any administrative costs imposed
on farmers and certified farmers’ market operators are generally
passed on in the form of increased prices to the begin delete consumer, end delete begin insert public, end insert
thus economically begin delete benefitting end delete begin insert benefiting end insert neither the public nor the
farmer.

(b) In accordance with the intent expressed in subdivision (a),
the secretary may adopt regulations clarifying the provisions of
this chapter, including the adoption of regulations for maintaining
the quality and wholesomeness of the products offered for sale
and promoting and fostering honest selling activities for those
products.

(c) The secretary may enter into a cooperative agreement with
a county agricultural commissioner to carry out the provisions of
this chapter, including, but not limited to, administration,
investigations, inspections, registrations, and assistance pertaining
to direct marketing producers and outlets. Compensation under
the cooperative agreement shall be paid from assessments and fees
collected and deposited pursuant to this chapter and shall provide
reimbursement to the county agricultural commissioner for
associated costs exclusive of the costs of certification and minimum
inspections required pursuant to Section 47020.

(d) Upon reasonable suspicion of a violation of Section 890, a
certified farmers’ market operator may contract with a county
agricultural commissioner for a special onsite field or storage
verification inspection of a direct marketing producer selling in a
certified farmers’ market operated and controlled by the operator.
All contracts and contract fees are subject to the discretion of the
county agricultural commissioner in the county where the
verification inspections are being requested.

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 47004 of the Food and Agricultural Code is
amended to read:

47004.  

(a) Certified farmers’ markets are California
agricultural product point-of-sale locations that are registered under
the provisions of Section 47020 and operated in accordance with
this chapter and regulations adopted pursuant to this chapter.

(b) The operator of a certified farmers’ market shall establish
a clearly defined marketing area where only agricultural products
may be sold. Only the producer or the lawful authorized
representative of the producer may sell agricultural products within
the area defined as a certified farmers’ market. Sales of agricultural
products purchased from another individual or entity shall not
occur within a certified farmers’ market, and an agricultural product
producer or product dealer shall not sell his or her agricultural
products to another individual or entity with the understanding or
knowledge that the products are intended to be resold in a certified
farmers’ market in violation of this chapter or the regulations
adopted pursuant to this chapter. Every producer selling within a
certified farmers’ market shall comply with Section 47020.

(c) All vendors of agricultural products selling within a certified
farmers’ market shall do all of the following:

(1) Post a conspicuous sign or banner at the point of sale that
states the name of the farm or ranch, the county where the farm
or ranch maintains the production grounds that produced the
products being offered for sale is located, and a statement that “We
Grew What We Are Selling” or “We Raised What We Are Selling”
or “We Grow What We Sell” or similar phrases that clearly
represent that the farm or ranch is only selling agricultural products
that they themselves have grown or raised on California land that
they possess or control. Product sales by different farms at the
same vendor stand shall separate the products from each farm or
ranch and correspondingly post the required sign or banner in
direct relationship with the sales display of the products produced
by each farm.

(2) Ensure that all processed agricultural products that they offer
for sale state in a clear manner by package label, container label,
or bulk sales signage that they consist only, with the exception of
incidental flavorings and necessary preservatives, of agricultural
products grown or raised by the farm or ranch selling them, the
farm or ranch name, and the city where the farm or ranch is located.
In addition, every processed product shall identify on a package
label, container label, or on bulk sales signage the registration
number or other identity reference of the facility where the food
was processed, or another required labeling statement or
information, in accordance with Sections 110460, 114365, and
114365.2 of the Health and Safety Code, or, in the case of meat
or poultry products, the identity of the facility where the meat or
poultry products were cut and wrapped, in accordance with the
applicable United States Department of Agriculture or State of
California inspection standards, or, in the case of dairy products,
the identity of the facility where the dairy products were
manufactured or processed.

(3) Ensure all products being represented or offered for sale as
organic are clearly labeled or have conspicuous and posted
point-of-sale signage identifying the products as organic.

(4) Keep product identity, product variety, and quantity of sales
records for all agricultural product sales made to consumers from
each certified farmers’ market at which products were sold.
Records of these product sales shall be maintained by the vendor
for at least begin delete six end delete begin insert 12 end insert months from the date of sale.

(5) Keep product identity and relative measured weight or
volume records of all unprocessed agricultural product delivered
to a processing facility for purposes of creating processed
agricultural product intended for sale to the public, including the
name and address of the processor, the dates when the unprocessed
product was delivered by the vendor to begin delete said end delete begin insert the end insert processor, the
dates when the processed product was delivered to the vendor by
begin delete said end delete begin insert the end insert processor, the character and type of processed agricultural
product produced by begin delete said end delete begin insert the end insert processor for the vendor, and the
relative measured weight or volume of the processed product
delivered back to the vendor. These records shall be maintained
by the vendor for a minimum of begin delete six months. end delete begin insert 12 months from the
date the vendor received the product from the processor. end insert

(d) Upon a written request that specifically identifies the
information desired, the records required to be kept pursuant to
paragraphs (4) and (5) of subdivision (c) shall be made available
for inspection during normal business hours to any state or county
enforcement agency charged with enforcement of this chapter
within begin delete 72 hours end delete begin insert three business days end insert of the delivery of the request,
or within a similar period of time that is reasonable for the
circumstances prevailing at the time.

(e) The representations required pursuant to subdivision (c)
shall be subject to the provisions and penalties specified in Section
890.

(f) An operator of a certified farmers’ market that also operates,
manages, or otherwise controls a separate sales activity or vending
event or marketing area in close proximity, adjacent, or contiguous
to the operator’s certified farmers’ market shall not allow the sale
or distribution of fresh whole fruits, nuts, vegetables, cultivated
mushrooms, herbs, and flowers by vendors selling within those
sales activity or vending event or marketing areas.

(g) The operator of a certified farmers’ market shall keep an
accurate participation record of the individual direct marketing
producers whose agricultural products were presented for sale in
their market each market day. The operators shall submit to the
department a quarterly report of the registration numbers and
participation frequency of the direct marketing producers whose
agricultural products were presented for sale in the operator’s
market during that past quarter. The department shall create and
maintain online capability for reporting.

(h) Operators of certified farmers’ markets may establish rules
and procedures that are more restrictive and stringent than state
laws or regulations governing or implementing this chapter, so
long as the rules and procedures are not in conflict with state laws
or regulations.

(i) Except for certified farmers’ markets operated by government
agencies, nonprofit entities and other qualified operators of certified
farmers’ markets shall be considered private entities and may take
actions, adopt rules, and impose requirements they deem necessary
for the proper and honest operation of their market, subject to the
application of any state or other laws. Government agency
operators of certified farmers’ markets are subject to applicable
state laws, the regulations and laws of the governing agency, and
other laws governing the conduct and actions they may take as a
governmental entity.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 47005.4 is added to the Food and Agricultural
Code, to read:

47005.4.  

(a) Pursuant to an investigation of an alleged violation
of Section 890, and upon a request by a state or county enforcement
agency specifying the vendor’s name, farmers’ market location,
and farmers’ market date, the operator of a certified farmers’
market shall begin insert commence to end insert note and make record of the product
identity of all fresh fruits and vegetables that the vendor offered
for sale on the specified farmers’ market date. The operator shall
furnish to the agency copies of begin delete these end delete begin insert those end insert notes and records within
begin delete 72 hours end delete begin insert three business days end insert of the delivery of begin delete the end delete begin insert a subsequent end insert
written request or within a similar period of time that is reasonable
for the circumstances prevailing at the time of request.

(b) Nothing in this section shall be interpreted to preclude the
creation and keeping of additional information that a certified
farmers’ market operator may endeavor itself to create and keep,
or to contractually require the provision of by a vendor as a
condition to selling in the operator’s farmers’ market.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 47020 of the Food and Agricultural Code is
amended to read:

47020.  

(a) An operator of a certified farmers’ market shall
annually register with the department by applying for and obtaining
a certificate from the county agricultural commissioner’s office in
the county in which the certified farmers’ market is located. The
application shall include the times and location of the farmers’
market, the name and contact information for the operator of the
farmers’ market, and the agent for service of process for the
operator. Upon approval of an application, the county agricultural
commissioner shall issue to the operator a certified farmers’ market
certificate.

(b) A certified farmers’ market certificate issued by a county
agricultural commissioner shall be valid for 12 months from the
date of issue, and may be renewed annually thereafter. The county
agricultural commissioner shall inspect every certified farmers’
market within his or her jurisdiction at least once for every six
months of operation. At the time of application or renewal, the
county agricultural commissioner shall provide a schedule of fees
that reflects an estimate of expenses for inspections and may charge
a certification and inspection fee equal to the actual expenses
incurred.

(c) (1) (A) Before selling at a certified farmers’ market, a
producer shall register with the department by applying for and
obtaining a certificate from the county agricultural commissioner’s
office in the county in which the producer’s land or facility is
located. The application shall include a declaration by the producer
that he or she is knowledgeable of and intends to produce in
accordance with good agricultural practices, as outlined in the
Small Farm Food Safety Guidelines published by the department.
Upon approval of an application, the county agricultural
commissioner shall issue to the producer a certified producer’s
certificate.

(B) A declaration made pursuant to subparagraph (A) shall not
be used to infer that the producer is not required to comply with
other state or federal laws relative to food safety and good
agricultural practices.

(2) As part of obtaining or renewing a certified producer
certificate, a producer farming fruit, vegetables, nuts, herbs, and
similar crops shall annually submit to the county agricultural
commissioner’s office in the county in which the producer’s land
or facility is located information requested by the department about
the specific crops that he or she will harvest or intends to harvest
for sale directly to the public. The secretary may promulgate
regulations specifying the information a producer is required to
submit.

(3) A certified producer’s certificate issued by a county
agricultural commissioner shall be valid for up to 12 months from
the date of issue and may be renewed annually thereafter. The
county agricultural commissioner in each county shall perform at
least one onsite inspection for all new certified producer’s
certificate applicants, and may perform additional inspections as
needed of the property or properties listed on the certified
producer’s certificate issued in his or her county as deemed
appropriate by the county agricultural commissioner to verify
production of the commodities being sold at a certified farmers’
market or the existence in storage of the producer’s actual harvested
production, or both, of any product being sold at a certified
farmers’ market. Where practical or purposeful, verification
inspections shall be made when the actual harvest or sale of the
commodity in question is occurring. The county agricultural
commissioner shall provide to the producer a schedule of fees that
reflects an estimate of expenses for certification or inspection at
the time of application or renewal or before any needed additional
verification inspection, and may charge a certification and
inspection fee equal to the actual expenses incurred.

(4) A county agricultural commissioner shall forward a digital
copy of each certified producer’s certificate issued to the
department, and the department shall post each certified producer’s
certificate on the department’s Internet Web site in a timely
manner.

(d) Renewal of a certified farmers’ market certificate or certified
producer’s certificate may be denied by either the department or
a county agricultural commissioner if a certified farmers’ market
or a producer is delinquent in the payment of the required state fee
or a county certification and inspection fee or administrative civil
penalty authorized pursuant to this chapter. The certificate may
be eligible for renewal when all outstanding balances and
associated penalties or administrative fines have been paid to the
department or the respective county or counties.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

Section 47021 of the Food and Agricultural Code is
amended to read:

47021.  

(a) Every operator of a certified farmers’ market shall
remit to the department, within 30 days after the end of each
quarter, a fee equal to the number of vendors participating and
selling goods under the authority and management of the certified
farmers’ market operator participating on each farmers’ market
day for the entire previous quarter. The fee shall be two dollars
($2) for each vendor whose products were presented for sale on
each farmers’ market day. A certified farmers’ market operator
may directly recover all or part of the fee from the participating
vendors. An operator of a certified farmers’ market located in a
county with a population of less than 400,000 that allows only
vendors of agricultural products produced by producers on land
located in the same county as the certified farmers’ market may
petition the secretary for a vendor fee of one dollar ($1). The
petition shall include a statement of verification of the information
upon which the petition is based by the county agricultural
commissioner in the county where the certified farmers’ market
is located.

(b) An operator of a certified farmers’ market who fails to pay
the required fee within 30 days after the end of the quarter in which
it is due shall pay to the department a monthly interest charge on
the unpaid balance and a late penalty charge, to be determined by
the department and not to exceed the maximum amount permitted
by law.

(c) All fees collected pursuant to this section shall be deposited
in the Department of Food and Agriculture Fund. The money
generated by the imposition of the fees shall be used, upon
appropriation by the Legislature, by the department to cover the
reasonable costs to carry out this chapter, including all of the
following actions undertaken by the department:

(1) The coordination of the Certified Farmers’ Market Advisory
Committee or any ad hoc direct marketing advisory committee.

(2) The evaluation of county enforcement actions and assistance
with regard to multiple county enforcement problems.

(3) The adoption of regulations to carry out the provisions of
this chapter pertaining to certified farmers’ markets.

(4) Hearings from actions taken to enforce this chapter.

(5) The maintenance of a current statewide listing of certified
farmers’ markets locations.

(6) The maintenance of an online, publicly accessible database
listing all current certified producer certificates.

(7) The dissemination to all certified farmers’ markets
information regarding the suspension or revocation of any
producer’s certificate and the imposition of administrative
penalties.

(8) Other actions, including the maintenance of special fund
reserves, that are recommended by the Certified Farmers’ Market
Advisory Committee or any ad hoc direct marketing advisory
committee and approved by the department for purposes of carrying
out this chapter pertaining to certified farmers’ markets.

(9) Investigation and enforcement expenses, including expenses
incurred by any county agricultural commissioner for actions
conducted pursuant to this chapter.

begin delete SEC. 6. end delete
begin insert SEC. 7. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for certain
costs that may be incurred by a local agency or school district
because, in that regard, this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.

However, if the Commission on State Mandates determines that
this act contains other costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.