BILL ANALYSIS �
AB 1871
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Date of Hearing: April 9, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1871 ( Dickinson) - As Introduced: February 19, 2014
Policy Committee:
AgricultureVote:6-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill recasts and expands the laws, requirements,
exemptions, and fees for Certified Farmers' Markets (CFM), their
operators and vendors, and adjacent non-agricultural markets,
and increases penalties for violations. The bill deletes the
January 1, 2018 sunset provisions for this chapter, making its
provisions permanent.
Specifically, this bill:
1)Creates and modifies crimes for misleading statements or
representations with respect to the area of production,
identity of producer, or manner of production, or use of the
term "California Grown," punishable by a fine of up to $2,500
or six months in county jail.
2)Provides that, in lieu of prosecution, the Secretary of the
California Department of Food and Agriculture (CDFA) or county
agricultural commissioner (CAC) may levy a civil penalty
against violators of not less than $500 and not more than
$5,000 for each violation. Additionally allows the CDFA or
CAC to modify, suspend, revoke, or refuse, or condition the
issuance of a permit, registration, or certification issued
under this chapter.
3)Creates the Direct Agricultural Marketing Penalty Account
(DAMPA) and requires all penalties collected under this
chapter to be deposited into DAMPA for use in investigations
and enforcement actions related to this chapter; authorizes a
continuous appropriation of DAMPA funds without regard to
fiscal year.
AB 1871
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4)Increases the CFM vendor fee from $0.60 per day per stall to
$2.00 per day per stall and expands the payment base from CFM
vendors to all vendors selling goods under authority of the
CFM operator; allows CFM operator to recover those fees from
vendors.
FISCAL EFFECT
1) Costs. Overall costs relating to oversight of county programs
and enforcement expected to be approximately $1.35 million to
the Agriculture Fund, consisting of new oversight and
enforcement personnel at CDFA as well as reimbursement to
counties for investigative work at CFMs and the point of
production through cooperative agreements.
2) Fee revenue. Over the last five years, the CDFA has collected
between $240,000 and $270,000 per year in vendor fees under
the current $0.60 fee. Assuming the number of markets and
vendors remain consistent, the $2.00 vendor fee would generate
revenue between $800,000 and $900,000 per year to the CDFA.
Given that the universe of vendors paying fees will expand to
include all vendors selling goods under authority of the CFM
operator, however, total fee revenue to the CDFA (Agriculture
Fund) is expected to be $1.35 million.
COMMENTS
1) Purpose. According to the author, this bill is needed to
address concerns over fraud, food safety, and traceability,
with news reports having indicated that cheating,
misrepresentation, and fraud at CFMs has become widespread.
A few years ago a Los Angeles television station broadcast an
undercover story exposing a certified producer who was not
producing what he was selling. In response, CDFA put a task
force together to evaluate the CFM program and develop new
requirements for operating and participating in a CFM.
AB 1871 uses the task force recommendations to restructure and
expand the requirements for CFMs, their operators and vendors,
and adjacent non-agricultural markets. It increases the
vendor fee as well as broadens the pool of paying vendors to
include those that participate in adjacent non-agricultural
markets in order to fund a more robust inspection and
AB 1871
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enforcement regime. It requires producers to declare they are
selling what they grow, creating a claim modeled after current
Business and Professions Code false advertising statutes that
can be pursued by district attorneys and private citizens
2) Certified Farmers' Markets. There are approximately 800
farmers' markets in California, a significant number of which
operate year-round. Following the enactment of the Federal
Farmer to Consumer Direct Marketing Act of 1976, CDFA
established regulations that exempted farmers from packing,
sizing, and labeling requirements for fresh fruits, nuts, and
vegetables, enabling farmers to sell products they grow at
farmers' markets, provided they receive certification from a
CAC.
Several CFMs have grown into community events. Many CFMs have
adjacent non-agricultural markets selling homemade and
commercial products.
As CFMs became more popular, several CFM operators expressed
concern over the willingness of a few producers to sell
produce they did not grow, or other products they did not
produce. In 1999, the Legislature exacted a daily per stall
fee of $0.60, intending it to be used by CDFA and the CACs for
inspections and enforcement purposes. As a result of the
growth of the CFM program and reductions in General Fund
support to CDFA, the fee has been primarily used to administer
the program, and not for inspection and enforcement as
originally intended.
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081