Amended in Senate August 15, 2016

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 Bill No. 2324

Introduced by Assembly Member Eggman

February 18, 2016

An act to amend Sections begin delete 47000.5, 47001, and 47004 end delete begin insert 47000.5 and 47001 end insert 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. begin delete 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. end delete

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This bill would revise the definition of “agricultural product” to include raw sheared wool.

end delete

This bill would specify the Legislature’s intent that the secretary, in adopting those begin delete regulations and regulations clarifying the provisions regulating certified farmers’ markets, end delete begin insert regulations, end insert endeavor to keep costs incurred by farmers and certified farmers’ market operators at a begin delete minimum. end delete begin insert minimum, would authorize the secretary to adopt regulations clarifying the certified farmers’ market provisions, and would revise the term “agricultural product” for purposes of the certified farmers’ market provisions to include raw sheared wool. The bill would also add a provision specifying that nothing in the certified farmers’ market provisions shall be interpreted to preclude a certified farmers’ market operator from creating and keeping additional information or requiring a vendor to provide additional information, as specified. end insert

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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 within 24 hours 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.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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, raw
sheared wool, livestock meats, poultry meats, rabbit meats, and
fish, including shellfish that is produced under controlled
conditions in waters located in California.

(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.

(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.

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 public, thus
economically 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.

begin delete

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 the public from
each certified farmers’ market at which products were sold.
Records of these product sales shall be maintained by the vendor
for at least 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 at certified
farmers’ markets, including the name and address of the processor,
the dates when the unprocessed product was delivered by the
vendor to the processor, the dates when the processed product was
delivered to the vendor by the processor, the character and type
of processed agricultural product produced by 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 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 24 hours 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.

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begin delete SEC. 4. end delete

begin insert SEC. 3. end insert   

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

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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 those notes and records within three
business days of the delivery of a subsequent written request or
within a similar period of time that is reasonable for the
circumstances prevailing at the time of request.

(b) 

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begin insert 47005.4. end insert   

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Nothing in this chapter 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 a vendor to provide additional
information as a condition to selling in the operator’s farmers’
market.

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SEC. 5.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because 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.

end delete