BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2324


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          Date of Hearing:  March 30, 2016


                          ASSEMBLY COMMITTEE ON AGRICULTURE


                                  Bill Dodd, Chair


          AB 2324  
          (Eggman) - As amended March 18, 2016


          SUBJECT:  Certified farmers' markets.


          SUMMARY:  Recasts definitions and adds vendor record keeping  
          requirements to the Certified Farmers' Market (CFM) Law;  
          requires records to be made available to specified enforcement  
          agencies; and, makes technical changes.   Specifically, this  
          bill:  


          1)Adds "wool" to the definition of "agricultural product" and  
            adds that a non-agricultural product may be sold in a CFM if  
            the market operator ensures the following conditions are  
            satisfied:


             a)   The product is composed entirely of agricultural  
               products grown by the producer, except for incidental  
               ingredients and flavoring; and,


             b)   The product is being offered for sale by a producer who  
               is otherwise authorized to sell agricultural products at a  
               CFM.










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          2)Requires the Secretary (Secretary) of the California  
            Department of Food and Agriculture (CDFA), in adopting  
            regulations for CFMs, to endeavor to keep costs to farmers and  
            CFM operators to a minimum.


          3)Rewords authority to adopt regulations for CFMs by referencing  
            item 2) above and that regulations promote and foster honest  
            selling activities.


          4)Requires all CFM vendors to keep product identity, variety,  
            and quantity of sales records for all product sales to  
            consumers from each CFM the vendor attends and requires the  
            vendors to maintain these records for at least 12 months from  
            date of sale.


          5)Requires vendors to keep product identity and relative  
            measured weight or volume records for all unprocessed  
            agricultural products delivered to a processing facility for  
            processing into a product intended for sale to the public,  
            including name and address of processor, the date delivered to  
            processor, the date processed product was delivered to vendor,  
            the character and type of processed agricultural product  
            produced and the relative measured weight or volume of  
            processed product produced.  These records are to be  
            maintained for 12 months from the date vendor received product  
            from processor.


          6)Requires, upon written request that identifies, specifically,  
            information requested by a county or state enforcement agency,  
            that these records be made available within three business  
            days or within a similar period of time that is reasonable at  
            the time of the request.


          7)Requires a CFM operator, upon request by a state or county  








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            enforcement agency pursuant to an investigation of false or  
            misleading marketing by a vendor, to note and make a record of  
            the products that vendor offers for sale at each market, and  
            to make those records available within three days of a written  
            request by the agency.  This requirement shall not preclude a  
            CFM operator from establishing other requirements for vendors  
            to sell at their CFMs.


          8)Requires county agricultural commissioners to send a digital  
            copy of each certified producer's certificate issued and  
            requires CDFA to post each certificate on their internet site  
            in a timely manner.


          9)Deletes the requirement for CDFA to maintain a statewide  
            listing of certified producers, replacing that list with a  
            required online, publically accessible database listing of  
            current certified producers' certificates.


          10)Makes technical changes.


          EXISTING LAW:  Provides for the regulation of certified farmers'  
          markets and authorizes the Secretary to adopt regulations to  
          encourage the direct sale by farmers to the public of all types  
          of California agricultural products; requires vendors of  
          agricultural products selling within a certified farmers' market  
          to comply with specified requirements; 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; and, requires a  
          producer to obtain a certified producer's certificate from a  
          county agricultural commissioner before selling at a certified  
          farmers' market and requires CDFA to maintain a current listing  
          of certified producers.









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          Exempts farmers that market direct to consumers from standard  
          pack and size requirements; establishes requirements for CFMs  
          and producers to be certified; authorizes CDFA to adopt  
          regulations to permit the direct selling of certified  
          agricultural products to consumers; authorizes the collection of  
          up to two dollars ($2.00) per producer per market day to be used  
          for administration, inspection and enforcement; provides for the  
          appointment of a 17 member advisory committee; permits CFMs to  
          establish rules and procedures that are more restrictive than  
          the state rules; provides for civil penalties for violations of  
          rules; provides for an appeal and decision process by CDFA;  
          creates a crime by establishing a violation and provides  
          enforcement provisions that sunset January 1, 2018; and, allows  
          CDFA to appoint ad hoc advisory committees to assist in the  
          administration of programs under this authority.


          FISCAL EFFECT:  Unknown.  


          COMMENTS:  According to the author, AB 2324 is completing the  
          efforts started by AB 1871 (Dickinson), of the 2013-14  
          legislative session.  That bill rewrote definitions and expanded  
          the requirements, exemptions, and fees for CFM, their operators  
          and vendors, and adjacent non-agricultural markets, and  
          increased penalties for violations.  This bill adds record  
          keeping for farmers of their sales and products, along with  
          record keeping requirements by CFM operators when an  
          investigation into false or misleading sales activities occurs.   
          It also makes other less significant changes.


          Certified farmers' markets have become established in many  
          California communities, as have other outlets for direct  
          marketing, such as farm stands and community supported  
          agriculture.  There are roughly 800 farmers' markets in  
          California, a significant number of which operate year-round.   
          Following the enactment of the Federal Farmer to Consumer Direct  








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          Marketing Act of 1976, CDFA enacted regulations that exempted  
          farmers from packing, sizing and labeling requirements for fresh  
          fruits, nuts, and vegetables, and enabled them to sell products  
          they grow at farmers' markets, provided they receive  
          certification from a county agriculture commissioner (CAC).  The  
          certification process is to assure the consumer that the product  
          is grown by the seller.  Further, farmers must have a sign that  
          they sell what they grow.


          As CFMs have become more popular, the willingness of a few  
          producers to sell whatever they could became a concern to many  
          CFM operators.  In 1999, they came to the Legislature and  
          enacted a daily per stall fee of sixty cents, intending it to be  
          used by CDFA and CAC for inspections and enforcement purposes.   
          Due to the growth of the program and reductions in General Fund  
          to CDFA and reductions to CAC's budgets, the fee has had to be  
          used to administer the program and not for inspection and  
          enforcement, as it was intended.  AB 1871 raised this fee to  
          $2.00 per stall per day.  This has significantly improved CDFA's  
          funding of this program and will allow for more inspections of  
          selling practices of CFM vendors.





          Several years ago a Los Angeles television station did an  
          undercover story, exposing a certified producer who was not  
          producing what he was selling, causing much concern to the  
          publics' confidence in buying from CFMs.  This prompted the  
          multi-year effort to update the statutes that govern CFMs; AB  
          2324 is another step in that effort.


          RELATED LEGISLATION:  AB 1252 (Health), Chapter 556, Statutes of  
          2014, made various technical, clarifying, and conforming changes  
          to the California Retail Food Code, the state's principal law  
          governing food safety and sanitation in retail food facilities,  








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          and made changes necessary to implement California's cottage  
          food operations law.


          AB 2539 (Ting), Chapter 907, Statutes of 2014, made various  
          changes to the rules governing CFMs, including requiring all  
          meat products offered for sale in a farmers' market to be from  
          approved sources and to be maintained at 41 degrees Fahrenheit,  
          prohibiting smoking of nicotine products within 25 feet of the  
          commerce area of the farmers' market, and prohibiting the  
          self-serving of food samples.


          AB 1871 (Dickinson), Chapter 579, Statutes of 2014, recast and  
          expanded the requirements, exemptions, and fees for Certified  
          Farmers' Markets (CFM), their operators and vendors, and  
          adjacent non-agricultural markets, and increases penalties for  
          violations.  This bill deletes the January 1, 2018, sunset  
          provisions for this chapter, making its provisions permanent. 


          AB 224 (Gordon), Chapter 404, Statutes of 2013, created  
          definitions dealing with requirements for Consumer Supported  
          Agriculture (CSA); and, authorized CDFA to establish fees, not  
          to exceed $100, to administer this new program, as specified.





          AB 654 (Hall), Chapter 409, Statutes of 2013, extended the  
          sunset date to January 1, 2018, for the collection of CFM  
          operator fees and enforcement provisions.





          REGISTERED SUPPORT / OPPOSITION:








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          Support


          Agricultural Council of California


          California Farm Bureau Federation


          Certified Farmers' Markets of Sacramento


          Community Alliance with Family Farmers


          Myrrhia Fine Knitwear


          Pacific Coast Farmers' Market Association


          1 individual 




          




          Opposition


          None on file.








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          Analysis Prepared by:Jim Collin / AGRI. / (916) 319-2084