BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2324 (Eggman) - Certified farmers' markets
          
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          |Version: June 15, 2016          |Policy Vote: AGRI. 4 - 0        |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.


          


          Bill  
          Summary: AB 2324 would (1) add "raw sheared wool" to the list of  
          products that can be sold at certified farmers' markets, and (2)  
          modify recordkeeping requirements for CFM vendors and operators.


          Fiscal  
          Impact: The California Department of Food and Agriculture (CDFA)  
          would incur $250,000 in one-time costs (special fund) to  
          promulgate regulations, develop new enforcement procedures, and  
          train county staff.


          Background: CDFA is responsible for administering and regulating the direct  
          sale of agricultural products to consumers, including those at  
          certified farmers' markets (CFMs), to (1) ensure product  
          quality, and (2) to prevent fraud, deception, or  
          misrepresentation in the marketplace. Currently, there are  







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          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  
          inspections to verify that all agricultural products sold at  
          CFMs are grown by the producer.
          Current 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.


          The Certified Farmers' Market Advisory Committee was created to  
          make recommendations to CDFA on all matters pertaining to direct  
          marketing, including administration, enforcement, inspections,  
          fees, civil penalties, and an annual budget.




          Proposed Law:  
          This bill would significantly augment the record and reporting  
          requirements at CFMs by certified producers, market operators  
          and CACs. Specifically, this bill would (1) require CFM vendors  
          (producers) to maintain sales records ("load lists") for a year  
          and make them available for inspection, a duty currently  
          required of market operators, (2) require a CFM operator to  
          record all products offered for sale and supply said records to  
          the state and county enforcement agencies, (3) require CACs to  
          forward a digital copy of each certified producer's certificate  
          issued to CDFA and would require CDFA to maintain an online,  
          publicly accessible database listing all current certified  
          producers' certificates, (4) clarify CDFA's authority to adopt  
          regulations for promoting and fostering honest selling  
          activities for CFM products, and (5) revise the definition of an  
          "agricultural product" to include raw sheared wool.


          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  








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               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.




          



          Staff  
          Comments: Currently, CFM vendors must pay a stall fee of $2 per  
          day per stall; however, the fee is assessed on the market  
          operator, who may, in turn, directly recover all or part of the  
          fee from the participating vendors.  Also, a CFM operator  
          located in a county with a population of less than 400,000 may  
          petition CDFA for a vendor fee of one dollar. A total of 14 CFMs  
          (out of 751) have done so. During 2015-16, the fee generated  
          $1.4 million. 
          Any local government costs resulting from the mandate in this  
          measure are not state-reimbursable because the mandate only  
          involves the definition of a crime or the penalty for conviction  
          of a crime.




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