Amended in Senate June 15, 2016

Amended in Assembly May 27, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2324


Introduced by Assembly Member Eggman

February 18, 2016


An act to amend Sections 47000.5, 47001, and 47004 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 raw sheared wool.

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 12 months and would require a vendor to make those records available for inspection by any state or county enforcement agency withinbegin delete 3 business daysend deletebegin insert 24 hoursend 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 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 3 business days of 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.

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 no reimbursement is required by this act for a specified reason.

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

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

P2    1

SECTION 1.  

Section 47000.5 of the Food and Agricultural
2Code
is amended to read:

3

47000.5.  

The following definitions apply to this chapter, unless
4otherwise specified:

5(a) (1) “Agricultural product” means a fresh or processed
6product produced in California, including fruits, nuts, vegetables,
7herbs, mushrooms, dairy, shell eggs, honey, pollen, unprocessed
8bees wax, propolis, royal jelly, flowers, grains, nursery stock, raw
9sheared wool, livestock meats, poultry meats, rabbit meats, and
10fish, including shellfish that is produced under controlled
11conditions in waters located in California.

12(2) Products that are characterized as services, arts, crafts,
13bakery, candies, soaps, balms, perfumes, cosmetics, pottery,
P3    1clothing, fabrics, pastas, compost, fertilizers, candles, ceramics,
2foraged foods, and types of wares are not agricultural products for
3purposes of this chapter. A product that combines an agricultural
4product with a nonagricultural product or service in a manner that
5materially increases the purchase price of the product shall
6disqualify the product from being sold as an agricultural product
7for purposes of this chapter.

8(b) “Practice of the agricultural arts” means the undertaking of
9being predominantly responsible for the decisions and actions
10encompassing the various phases of producing an agricultural
11product. The practice of the agricultural arts for fruit, floral, nut,
12vegetable, and other plant products includes directive or actual
13responsibility for all the actions of planting, growing, fertilizing,
14irrigating, cultivating, pest control, and harvesting. The practice
15of the agricultural arts for agricultural animal products includes
16directive or actual responsibility for a substantial time of the
17raising, feeding, veterinary care, and product harvesting.

18(c) “Producer” means a person, partnership, corporation, or an
19otherwise legally formed farm or ranch that produces agricultural
20products by the practice of the agricultural arts upon land that the
21person or entity owns, rents, leases, sharecrops, or otherwise
22controls and has the documented legal right to possession. A person
23or entity that rents, leases, or otherwise acquires the right to
24possession of property essentially only for or limited to the period
25of the harvest season of the agricultural products produced on that
26property shall not be considered a producer under the provisions
27of this chapter.

28

SEC. 2.  

Section 47001 of the Food and Agricultural Code is
29amended to read:

30

47001.  

(a) The secretary may adopt regulations to encourage
31the direct sale by farmers to the public of all types of California
32agricultural products. It is the intent of the Legislature that, in
33adopting those regulations, the secretary shall endeavor to keep
34costs incurred by farmers and certified farmers’ market operators
35to a minimum, recognizing that any administrative costs imposed
36on farmers and certified farmers’ market operators are generally
37passed on in the form of increased prices to the public, thus
38economically benefiting neither the public nor the farmer.

39(b) In accordance with the intent expressed in subdivision (a),
40the secretary may adopt regulations clarifying the provisions of
P4    1 this chapter, including the adoption of regulations for maintaining
2the quality and wholesomeness of the products offered for sale
3and promoting and fostering honest selling activities for those
4products.

5(c) The secretary may enter into a cooperative agreement with
6a county agricultural commissioner to carry out the provisions of
7this chapter, including, but not limited to, administration,
8investigations, inspections, registrations, and assistance pertaining
9to direct marketing producers and outlets. Compensation under
10the cooperative agreement shall be paid from assessments and fees
11collected and deposited pursuant to this chapter and shall provide
12reimbursement to the county agricultural commissioner for
13associated costs exclusive of the costs of certification and minimum
14inspections required pursuant to Section 47020.

15(d) Upon reasonable suspicion of a violation of Section 890, a
16certified farmers’ market operator may contract with a county
17agricultural commissioner for a special onsite field or storage
18verification inspection of a direct marketing producer selling in a
19certified farmers’ market operated and controlled by the operator.
20All contracts and contract fees are subject to the discretion of the
21county agricultural commissioner in the county where the
22verification inspections are being requested.

23

SEC. 3.  

Section 47004 of the Food and Agricultural Code is
24amended to read:

25

47004.  

(a) Certified farmers’ markets are California
26agricultural product point-of-sale locations that are registered under
27the provisions of Section 47020 and operated in accordance with
28this chapter and regulations adopted pursuant to this chapter.

29(b) The operator of a certified farmers’ market shall establish
30a clearly defined marketing area where only agricultural products
31may be sold. Only the producer or the lawful authorized
32representative of the producer may sell agricultural products within
33the area defined as a certified farmers’ market. Sales of agricultural
34products purchased from another individual or entity shall not
35occur within a certified farmers’ market, and an agricultural product
36producer or product dealer shall not sell his or her agricultural
37 products to another individual or entity with the understanding or
38knowledge that the products are intended to be resold in a certified
39farmers’ market in violation of this chapter or the regulations
P5    1adopted pursuant to this chapter. Every producer selling within a
2certified farmers’ market shall comply with Section 47020.

3(c) All vendors of agricultural products selling within a certified
4farmers’ market shall do all of the following:

5(1) Post a conspicuous sign or banner at the point of sale that
6states the name of the farm or ranch, the county where the farm
7or ranch maintains the production grounds that produced the
8products being offered for sale is located, and a statement that “We
9Grew What We Are Selling” or “We Raised What We Are Selling”
10or “We Grow What We Sell” or similar phrases that clearly
11represent that the farm or ranch is only selling agricultural products
12that they themselves have grown or raised on California land that
13they possess or control. Product sales by different farms at the
14same vendor stand shall separate the products from each farm or
15ranch and correspondingly post the required sign or banner in
16direct relationship with the sales display of the products produced
17by each farm.

18(2) Ensure that all processed agricultural products that they offer
19for sale state in a clear manner by package label, container label,
20or bulk sales signage that they consist only, with the exception of
21incidental flavorings and necessary preservatives, of agricultural
22products grown or raised by the farm or ranch selling them, the
23farm or ranch name, and the city where the farm or ranch is located.
24In addition, every processed product shall identify on a package
25label, container label, or on bulk sales signage the registration
26number or other identity reference of the facility where the food
27was processed, or another required labeling statement or
28information, in accordance with Sections 110460, 114365, and
29114365.2 of the Health and Safety Code, or, in the case of meat
30or poultry products, the identity of the facility where the meat or
31poultry products were cut and wrapped, in accordance with the
32applicable United States Department of Agriculture or State of
33California inspection standards, or, in the case of dairy products,
34the identity of the facility where the dairy products were
35manufactured or processed.

36(3) Ensure all products being represented or offered for sale as
37organic are clearly labeled or have conspicuous and posted
38point-of-sale signage identifying the products as organic.

39(4) Keep product identity, product variety, and quantity of sales
40records for all agricultural product sales made to the public from
P6    1each certified farmers’ market at which products were sold.
2Records of these product sales shall be maintained by the vendor
3for at least 12 months from the date of sale.

4(5) Keep product identity and relative measured weight or
5volume records of all unprocessed agricultural product delivered
6to a processing facility for purposes of creating processed
7agricultural product intended for sale to the public at certified
8farmers’ markets, including the name and address of the processor,
9the dates when the unprocessed product was delivered by the
10vendor to the processor, the dates when the processed product was
11delivered to the vendor by the processor, the character and type
12of processed agricultural product produced by the processor for
13the vendor, and the relative measured weight or volume of the
14processed product delivered back to the vendor. These records
15shall be maintained by the vendor for a minimum of 12 months
16from the date the vendor received the product from the processor.

17(d) Upon a written request that specifically identifies the
18information desired, the records required to be kept pursuant to
19paragraphs (4) and (5) of subdivision (c) shall be made available
20for inspection during normal business hours to any state or county
21enforcement agency charged with enforcement of this chapter
22withinbegin delete three business daysend deletebegin insert 24 hoursend insert of the delivery of the request,
23or within a similar period of time that is reasonable for the
24circumstances prevailing at the time.

25(e) The representations required pursuant to subdivision (c)
26shall be subject to the provisions and penalties specified in Section
27890.

28(f) An operator of a certified farmers’ market that also operates,
29manages, or otherwise controls a separate sales activity or vending
30event or marketing area in close proximity, adjacent, or contiguous
31to the operator’s certified farmers’ market shall not allow the sale
32or distribution of fresh whole fruits, nuts, vegetables, cultivated
33mushrooms, herbs, and flowers by vendors selling within those
34sales activity or vending event or marketing areas.

35(g) The operator of a certified farmers’ market shall keep an
36accurate participation record of the individual direct marketing
37producers whose agricultural products were presented for sale in
38their market each market day. The operators shall submit to the
39department a quarterly report of the registration numbers and
40participation frequency of the direct marketing producers whose
P7    1agricultural products were presented for sale in the operator’s
2market during that past quarter. The department shall create and
3maintain online capability for reporting.

4(h) Operators of certified farmers’ markets may establish rules
5and procedures that are more restrictive and stringent than state
6laws or regulations governing or implementing this chapter, so
7long as the rules and procedures are not in conflict with state laws
8or regulations.

9(i) Except for certified farmers’ markets operated by government
10agencies, nonprofit entities and other qualified operators of certified
11farmers’ markets shall be considered private entities and may take
12actions, adopt rules, and impose requirements they deem necessary
13for the proper and honest operation of their market, subject to the
14application of any state or other laws. Government agency
15operators of certified farmers’ markets are subject to applicable
16state laws, the regulations and laws of the governing agency, and
17other laws governing the conduct and actions they may take as a
18governmental entity.

19

SEC. 4.  

Section 47005.4 is added to the Food and Agricultural
20Code
, to read:

21

47005.4.  

(a) Pursuant to an investigation of an alleged violation
22of Section 890, and upon a request by a state or county enforcement
23agency specifying the vendor’s name, farmers’ market location,
24and farmers’ market date, the operator of a certified farmers’
25market shall commence to note and make record of the product
26identity of all fresh fruits and vegetables that the vendor offered
27for sale on the specified farmers’ market date. The operator shall
28furnish to the agency copies of those notes and records within three
29business days of the delivery of a subsequent written request or
30within a similar period of time that is reasonable for the
31circumstances prevailing at the time of request.

32(b) Nothing in this chapter shall be interpreted to preclude the
33creation and keeping of additional information that a certified
34farmers’ market operator may endeavor itself to create and keep,
35or to contractually requirebegin delete the provision of byend delete a vendor begin insertto provide
36additional informationend insert
as a condition to selling in the operator’s
37farmers’ market.

38

SEC. 5.  

No reimbursement is required by this act pursuant to
39Section 6 of Article XIII B of the California Constitution because
40the only costs that may be incurred by a local agency or school
P8    1district will be incurred because this act creates a new crime or
2infraction, eliminates a crime or infraction, or changes the penalty
3for a crime or infraction, within the meaning of Section 17556 of
4the Government Code, or changes the definition of a crime within
5the meaning of Section 6 of Article XIII B of the California
6Constitution.



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