BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2324| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2324 Author: Eggman (D) Amended: 8/15/16 in Senate Vote: 21 SENATE AGRICULTURE COMMITTEE: 4-0, 6/21/16 AYES: Galgiani, Cannella, Berryhill, Wolk NO VOTE RECORDED: Pan SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 79-0, 6/2/16 - See last page for vote SUBJECT: Certified farmers markets SOURCE: Author DIGEST: This bill adds raw sheared wool to the list of products that can be sold at a certified farmers market (CFM); states the intent of the Legislature that the California Department of Food and Agriculture (CDFA) endeavor to keep CFM administrative costs to a minimum; and states that CFM operators may create and keep vendor marketing records containing additional information other than what is required by law or regulation and may contractually require vendors to provide this information in order to sell at the market. ANALYSIS: Existing law: AB 2324 Page 2 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 and/or by a fine not exceeding $2,500. 6)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. This bill: 1)Adds "raw sheared wool" to the definition of "agricultural products" that can be sold at a CFM. 2)States 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. AB 2324 Page 3 4)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. Background 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 CFMs. Currently, there are nearly 800 CFMs in California and 3,350 certified farmers selling directly to consumers. At the local level, county agricultural commissioners are responsible for issuing producer and operator certificates and conducting on-site 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). Comments 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 where the line should be drawn 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 is generally only the slightest processing AB 2324 Page 4 that is allowed, such as washing, preserving, or sanitizing. This bill adds "raw sheared wool" to the products allowed for sale at a CFM but not include wool products that are further processed, such as dyed spun yarn. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, CDFA would incur minor and absorbable costs to promulgate regulations. SUPPORT: (Verified8/12/16) Agricultural Council of California California Farm Bureau Federation Certified Farmers' Markets of Sacramento Community Alliance with Family Farmers Fibershed Pacific Coast Farmers' Market Association Roger Dickenson, Assembly Member Emeritus Sustainable Economies Law Center OPPOSITION: (Verified8/12/16) None received ARGUMENTS IN SUPPORT: According to the author, "AB 2324 would add "raw sheared wool" to the list of products allowed for sale at a Certified Farmers' Market. The Certified Farmers' Markets have grown into popular community amenities in California and valuable showcases for featuring California Grown agricultural products." ASSEMBLY FLOOR: 79-0, 6/2/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger AB 2324 Page 5 Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Beth Gaines Prepared by:Anne Megaro / AGRI. / (916) 651-1508 8/15/16 20:22:21 **** END ****