BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2324|
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                                   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:









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          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.








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          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  







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          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  







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            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


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