BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 2324 Hearing Date: 6/21/16
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|Author: |Eggman |
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|Version: |6/15/16 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Certified farmers' markets
SUMMARY :
This bill would add "raw sheared wool" to the list of products
that can be sold at a certified farmers' market (CFM); require
CFM vendors to keep a list of products sold at each market, as
specified; require these records to be available for inspection
within 24 hours of a written request; require CFM operators,
upon investigation, to make and provide a record of products
sold by a specific vendor pursuant to an investigation of
alleged violation upon request by an enforcement agency; and
state that CFM operators may create and keep additional
information and may contractually require vendors to provide
this information in order to sell at the market.
BACKGROUND AND EXISTING
LAW :
CDFA is responsible for administering and regulating the direct
sale of agricultural products to consumers to ensure product
quality and to prevent fraud, deception, or misrepresentation in
the marketplace. One form of direct marketing regulated by CDFA
is certified farmers' markets (CFM). Currently, there are
nearly 800 CFMs in California and 3,350 certified farmers
selling directly to consumers. At the local level, county
agricultural commissioners (CAC) are responsible for issuing
producer and operator certificates and conducting on-site
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inspections to verify that all agricultural products sold at the
CFM are grown by the producer (Food and Agricultural Code §47000
et seq.).
Existing law exempts certified producers selling at CFMs from
certain packing, size, and labeling requirements under the
Fruit, Nut, and Vegetable Standards Law. These producers are
instead subject to conditions and regulations specific to direct
marketers, which include packing and labeling requirements (Food
and Agricultural Code §47002).
The Certified Farmers' Market Advisory Committee, composed of 17
members appointed by the secretary of CDFA, was created to make
recommendations to the secretary on all matters pertaining to
direct marketing, including administration, enforcement,
inspections, fees, civil penalties, and an annual budget (Food
and Agricultural Code §47011).
Existing law:
1) Authorizes CDFA to adopt regulations to encourage the
sale of California agricultural products directly from
farmer to consumer and to ensure that sales activities are
free from fraud, deception, or misrepresentation.
2) Requires a CFM operator to annually register with CDFA
by applying for and obtaining a certificate from the county
agricultural commissioner.
3) Requires all vendors to pay a stall fee not greater than
$2.00 per marketing day, with exceptions. Fees are
collected by the CFM operator and deposited into the
Department of Food and Agriculture Fund to be used to cover
the reasonable costs to carry out CFM administration,
inspection, and enforcement (Food and Agricultural Code
§47021).
4) Requires CFM vendors to post a conspicuous sign at the
point of sale that states the name and county location of
the vendor's farm/ranch and the statement "We Grow What We
Sell" or such similar statement.
5) Provides that a violation of false, deceptive, or
misleading marketing is a misdemeanor punishable by
imprisonment in county jail for not longer than six months
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and/or by a fine not exceeding $2,500.
6) Authorizes CDFA or CACs, in lieu of prosecution, to levy
a civil penalty between $500 and $5,000 per violation. The
severity of the penalty is based on the seriousness of the
deception and impact of the penalty on the violator.
7) Prohibits CFM operators who operate other
non-agricultural marketing events in close proximity to a
CFM from allowing the sale of fresh whole fruits, nuts,
vegetables, and flowers outside of the CFM area.
PROPOSED
LAW :
This bill:
1) Adds "raw sheared wool" to the definition of
"agricultural products" that can be sold at a CFM.
2) States it is the intent of the legislature that the
secretary, when adopting CFM regulations, shall endeavor to
keep costs incurred by farmers and CFM operators to a
minimum.
3) Clarifies the secretary's authority to adopt regulations
for promoting and fostering honest selling activities for
CFM products.
4) Requires all CFM vendors to keep a record of all
agricultural products sold to the public at a CFM for 12
months.
5) Requires all CFM vendors to keep a record for 12 months
of all unprocessed agricultural products delivered to a
processing facility that will create a processed
agricultural product intended for sale at a CFM.
6) Requires all CFM vendors, upon written request, to make
these records available within 24 hours for inspection to
any state or county enforcement agency charged with
enforcement of CFM laws and regulations, as specified.
7) Requires CFM operators, upon request by a state or
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county enforcement agency, to begin to make a record of the
products sold by a vendor under investigation for an
alleged violation of marketing laws. Copies of these
records shall be given to the agency within three business
days upon written request.
8) Authorizes CFM operators to create and keep additional
information and to contractually require vendors to provide
this additional information in order to sell at the
operator's CFM.
ARGUMENTS IN SUPPORT:
According to the author, "AB 2324 will improve record keeping by
farmer vendors selling at certified farmers' markets. Currently,
farmers and farmer vendors participating in certified farmers'
markets are required to fill out astonishing amounts of
paperwork, and yet have no clear recordkeeping. AB 2324 fixes
this by creating clear record-keeping guidelines for vendors to
follow and for enforcement officials to check for compliance
with when inspecting records for enforcement activities. This
bill will clarify that fees are to be kept at a minimum for
farmers and certified farmers' market operators. This bill will
not add another layer of record keeping, rather incorporate
information and records that farmers are already keeping.
Certified Farmers' Markets are popular community amenities in
California and valuable showcases for featuring California Grown
agricultural products."
ARGUMENTS IN OPPOSITION:
According to the County Agricultural Commissioners and Sealers
Association, "The measure would eliminate the third-party
collection of commodity sales data from market vendors, removing
one of the few, but among the most valuable and useful, tools
available to agricultural commissioners in efforts to
effectively enforce Certified Farmer's Market law. [?] First and
foremost, commissioners strive to ensure that vendors doing
business within CFMs 'Grow What They Sell' and sell only what
they actually grow." CACs use two invaluable resources to
accomplish this task: a publically posted Certified Producer's
Certificate verified by the CAC by visiting the vendor's farm
and a "load sheet" that reports the specific commodities and
quantities sold by the vendor each market day. These two
documents can then be compared to determine if a vendor has sold
more product than what possibly could have been grown on their
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farm. According to CACASA, "Commissioners fear that the
information they will receive will be hastily assembled in
response to the request [that the documentation be handed over]
and will not compare to the accuracy of the 'real time'
collection and third-party maintenance of current 'load sheets.'
"
COMMENTS :
Recordkeeping. AB 1871 (Dickenson) of 2014 significantly
revised CFM laws to prevent fraudulent marketing practices
occurring at CFMs. Among other provisions, AB 1871 raised fees
and increased violations to support and improve marketing
enforcement. However, the bill failed to specify vendor
recordkeeping or reporting requirements that would track vendor
sales of agricultural products, and the bill did not provide a
process for enforcement officials to obtain these records during
an investigation. Given concern that this information is
proprietary, the author and supporters of the current bill do
not want these records to be kept by the CFM operator as in some
cases the operator is a farmer and competitor. However, the
CACs who enforce marketing laws and regulations would prefer to
have a third-party maintain these records.
Currently, CDFA regulations require CFM operators to obtain from
each vendor an itemized list ("load list") of all products sold
at the CFM each market day and maintain these records for 18
months [3 CCR § 1392.9(b)]. In the case of an investigation,
CACs can use this information to identify instances where a
specified producer is selling products that do not match their
certified producer certificate in volume, product type, or
appropriateness for the season. This bill requires
recordkeeping to be maintained by the vendor but also clarifies
the authority of CFM operators to require vendors to provide
load lists on the local level as a condition for selling at the
market.
Raw sheared wool. There is continued debate as to what products
should or should not be included for sale within a CFM.
Currently, only raw or processed agricultural products are
allowed (as defined), but the line between these products and
others that are a few steps further up the processing chain is
debated. Examples of these products include beeswax and dyed
beeswax candles, and now, raw sheared wool and dyed spun yarn.
Although processed products are allowed to be sold at a CFM, it
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is generally only the slightest processing that is allowed, such
as washing, preserving, or sanitizing. This bill would add "raw
sheared wool" to the products allowed for sale at a CFM but not
include further processed wool products, such as dyed spun yarn.
RELATED
LEGISLATION :
AB 862 (Agriculture), Chapter 374, Statutes of 2015. Among
other provisions, adds "cultivated mushrooms" and "herbs" to the
list of products that cannot be sold in areas in proximity to a
certified farmers' market.
AB 1871 (Dickinson), Chapter 579, Statutes of 2014. Revises
provisions related to CFMs by increasing fees and penalties and
expanding requirements, enforcement, and violations.
AB 654 (Hall), Chapter 409, Statutes of 2013. Extends from
January 1, 2014 to January 1, 2018, the sunset date for the
collection of certified farmers' market fees and related penalty
and enforcement provisions.
AB 593 (Strom-Martin), Chapter 833, Statutes of 1999. Codifies
regulations exempting direct marketers from specified packing
and labeling standards, amends fee structures, and authorizes
farmers' markets to establish rules and procedures.
PRIOR
ACTIONS :
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|Assembly Floor: |79 - 0 |
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|Assembly Appropriations Committee: |19 - 0 |
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|Assembly Agriculture Committee: | 9 - 0 |
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SUPPORT :
Agricultural Council of California
California Farm Bureau Federation
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Certified Farmers' Markets of Sacramento
Community Alliance with Family Farmers
Fibershed
Sustainable Economies Law Center
Pacific Coast Farmers' Market Association
Roger Dickenson, Assembly Member Emeritus
OPPOSITION :
County Agricultural Commissioners and Sealers Association
(oppose unless amended)
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