BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2324 (Eggman) - Certified farmers' markets ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 15, 2016 |Policy Vote: AGRI. 4 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- 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 AB 2324 (Eggman) Page 1 of ? 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 AB 2324 (Eggman) Page 2 of ? 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. -- END -- AB 2324 (Eggman) Page 3 of ?