BILL ANALYSIS �
SENATE AGRICULTURE COMMITTEE
Senator Anthony Cannella, Chairman
BILL NO: SB 513 HEARING: 05/03/11
AUTHOR: Cannella FISCAL: Yes
VERSION: 02/17/11 CONSULTANT: John Chandler
Renderers and farmers' markets: fees.
BACKGROUND AND EXISTING LAW
The Food and Agricultural Code defines "rendering" as the
recycling, processing, and conversion of animal and fish
byproducts and carcasses from the meat, poultry, and seafood
industries, and used kitchen grease into fats, oils, and
proteins that are used primarily as feed in the animal, poultry,
and pet food industries.
The California Department of Food and Agriculture, funded by
licensing fees, oversees health and safety practices of licensed
renderers, transporters, and collection centers. Fees are set
by the secretary and by statute cannot exceed $3,000 per
licensed collection center or rendering plant. The authority to
collect licensing fees was sunsetted out on July 1, 2010 and was
repealed on January 1, 2011.
The Certified Farmers' Market (CFM) program enables farmers to
directly sell their produce to consumers under the Direct
Marketing Law. Sellers are permitted to market only produce
that they grow. This alternate method of marketing for farmers,
without the required labeling, packing, or size requirements,
has grown tremendously throughout California. Today, there are
approximately 700 farmers' markets and more than 2,000 producers
participating in California farmers' markets.
Originally, the CFM program was funded from the general fund at
about $120,000 annually for state oversight, dispute resolution,
and enforcement. However, in the early 1990's, the general fund
dollars were eliminated. Following a period of meager funding
through a certification charge for participating farmers, the
legislature authorized an operator's fee in 1999. California
Department of Food and Agriculture (CDFA) collects the fee from
the CFM operator based on $0.60 per stall times the number of
market events in which a producer participates. If an operator
fails to pay the fee, an interest charge on the unpaid balance
is assessed.
CDFA provides much of the oversight and direction to the county
agriculture commissioners (commissioner) who issue the
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certificates to both the producer and the market operator and
conduct inspection and enforcement activities at the markets.
The secretary or commissioner is authorized to levy civil
penalties against certified farmers' markets that violate the
direct marketing law. Civil penalties levied are measured as
either (1) "serious," which are repeat or intentional violations
punishable by a penalty between $401 and $1,000 per violation;
(2) "moderate," which are repeat or unintentional violations
punishable by a penalty between $151 and $400 per violation; (3)
or "minor," which are procedural in nature and punishable by a
penalty between $50 and $150 per violation. Alleged violators
have the ability to appeal the action.
The operator fee and enforcement provisions are due to sunset on
January 1, 2012. The sunset provision for enforcement and fees
has already been extended multiple times by the legislature.
Most recently, AB 2676 (Agriculture, Chapter 440, Statutes of
2006) extended the sunset for the fees.
PROPOSED LAW
SB 513 does the following:
Reinstates the renderer enforcement program at CDFA and
the ability of CDFA to impose administrative fees on
renderers and collection centers in connection with animal
rendering until July 1, 2015.
Extends the sunset date for the Certified Farmers'
Market operator fees collected by CDFA and the enforcement
article for civil penalties and appeal provisions to
January 1, 2017.
COMMENTS
1.According to the sponsors, SB 513 would provide the necessary
funding for the California Rendering Program and Certified
Farmers Markets Program with CDFA. Reenacting the funds for
the rendering program ensures that these products are
appropriately transported, handled, and recycled and helps
prevent theft and illegal distribution, which could impact
animal and human health.
Farmers' markets are a valuable part of the state's
agriculture market, providing a direct link from the farmer to
the consumer. Under California's unique Certified Farmers'
Market Program, consumers and the integrity of the markets are
protected. Recently, farmer's markets have come under fire
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following a NBC-LA investigative report which found several
farmer's market vendors making false claims about their
produce. The extension of the sunset date would enable the
industry to continue to evaluate and review the effectiveness
of the enforcement provisions and of the industry
self-regulation and funding.
SUPPORT
California Certified Organic Farmers
California Grain and Feed Association
Pacific Coast Rendering Association
OPPOSITION
None received