BILL ANALYSIS �
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THIRD READING
Bill No: SB 513
Author: Cannella (R)
Amended: As introduced
Vote: 21
SENATE AGRICULTURE COMMITTEE : 7-0, 5/3/11
AYES: Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas,
Wolk
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/16/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SUBJECT : Renderers and farmers markets: fees
SOURCE : California Grain and Feed Association
Pacific Coast Rendering Association
DIGEST : This bill reinstates the renderer enforcement
program at the Department of Food and Agriculture (CDFA)
and the ability of CDFA to impose administrative fees on
renderers and collection centers in connection with animal
rendering until July 1, 2015. This bill 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.
ANALYSIS : Existing law (1) requires every person engaged
in the business of rendering or of operating a collection
center to obtain a license from CDFA, as specified, (2)
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regulates transporters of inedible kitchen grease, (3)
provides an operative date until January 1, 2010, and a
repeal date of January 1, 2011, and (4) authorizes the
collection of administrative fees, as specified, from
renderers and collection centers in connection with
rendering.
This bill 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.
Existing law requires, until January 1, 2012, that every
operator of a certified farmers' market remit to CDFA a fee
equal to the number of agricultural producers participating
on each market day for the entire previous quarter to be
used by CDFA upon appropriation by the Legislature, as
specified, (2) provides that California farmers may
transport for sale and sell California-grown fresh fruits,
nuts, and vegetables that they produce directly to the
public at a certified farmers' market, as specified, and
provides that it is unlawful for any person operating under
these provisions to commit certain acts related to the
conduct of farmers' markets, and (3) provides that, until
January 1, 2012, in lieu of prosecution, but not precluding
suspension or revocation of certified producer's
certificates or certified farmers' market certificates, the
CDFA Secretary or the county commissioner may levy a civil
penalty against a person who violates these provisions or
any regulation implemented pursuant to these provisions, as
specified.
This bill 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.
Background
CDFA, funded by licensing fees, oversees health and safety
practices of licensed renderers, transporters, and
collection centers. The fees are set by the Secretary and
by statute. The authority to collect licensing fees was
sunsetted out on July 1, 2010, and was repealed on January
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1, 2011.
The Certified Farmers' Market (CFM) program enables farmers
to directly sell their produce to consumers under the
Direct Marketing Law. Originally, the CFM program was
funded from the General Fund at approximately $120,000
annually for state oversight, dispute resolution, and
enforcement. However, in the early 1990s, 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. CDFA collects the fee from the CFM operator based on
a per stall fee. The fee revenue supports the county
agricultural commissioner who issues the certificates to
the producer and the market operator and conducts
inspection and enforcement activities at the markets. 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.
Prior legislation . AB 2676 (Assembly Agriculture
Committee), Chapter 440, Statutes of 2006, extended the
sunset for the fees.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Sunset extensions
- rendering collection program $108
$216$216Special*
($108) ($216) ($216)
- farmers' market program $115 $230
$230Special*
($115) ($230) ($230)
* Department of Food and Agriculture Fund
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SUPPORT : (Verified 5/17/11)
California Grain and Feed Association (co-source)
Pacific Coast Rendering Association (co-source)
California Certified Organic Farmers
ARGUMENTS IN SUPPORT : According to the bill's sponsors,
this bill provides 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 following an NBC-LA investigative report
which found several farmers' market vendors making false
claims about their produce. The extension of the sunset
date enables the industry to continue to evaluate and
review the effectiveness of the enforcement provisions and
of the industry self-regulation and funding.
MEL:mw 5/17/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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