BILL NUMBER: AB 2324 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Eggman
FEBRUARY 18, 2016
An act to amend Sections 47000.5, 47001, 47004, 47020,
and 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. Existing law defines
"agricultural product" for purposes of the certified farmers' market
provisions.
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.
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 6 12 months and
would require a vendor to make those records available for inspection
by any state or county enforcement agency within 72 hours
3 business days 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 commence to
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 72 hours
3 business days of the a
subsequent 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:
SECTION 1. Section 47000.5 of the Food
and Agricultural Code is amended to read:
47000.5. The following definitions apply to this chapter, unless
otherwise specified:
(a) (1) "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, wool, livestock meats, poultry meats, rabbit
meats, and fish, including shellfish that is produced under
controlled conditions in waters located in California.
Products
(2) Products 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. 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:
(A) The product is composed entirely of agricultural products
grown by the producer, except for incidental ingredients and
flavorings.
(B) The product is being offered for sale by a producer who is
otherwise authorized to sell agricultural products at the certified
farmers' market.
(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.
SECTION 1. SEC. 2. 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 consumer,
public, thus economically benefitting
benefiting 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.
SEC. 2. SEC. 3. 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
six 12 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 said the
processor, the dates when the processed product was delivered to the
vendor by said the processor, the
character and type of processed agricultural product produced by
said the 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 six months. 12
months from the date the vendor received the product from the
processor.
(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
72 hours three business days 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.
SEC. 3. SEC. 4. 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 commence to 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 these those
notes and records within 72 hours three
business days of the delivery of the a
subsequent 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.
SEC. 4. SEC. 5. 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.
SEC. 5. SEC. 6. 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.
SEC. 6. SEC. 7. 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.