BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1871
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1871 (Dickinson)
          As Amended  August 19, 2014
          Majority vote
           
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          |ASSEMBLY:  |71-5 |(May 29, 2014)  |SENATE: |35-1 |(August 21,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    AGRI.  

           SUMMARY  :  Recasts and expands the requirements, exemptions, and  
          fees for Certified Farmers' Markets (CFM), their operators and  
          vendors, and adjacent non-agricultural markets, and increases  
          penalties for violations.  This bill deletes the January 1,  
          2018, sunset provisions for this chapter, making its provisions  
          permanent.  

           The Senate amendments  add poultry products to eligible products  
          to be sold and made technical, clarifying and non-substantive  
          changes.  

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, the California Department of Food and Agriculture  
          (CDFA) indicates that, under the bill, annual costs relating to  
          oversight of county programs and enforcement would be about  
          $1.35 million (special fund), reflecting:  1) new oversight and  
          enforcement personnel, and 2) reimbursement to counties for  
          investigative work at the local level.  However, this bill's  
          increased fee authority would generate revenues roughly equal to  
          the higher costs.

           COMMENTS  :  CFMs have become established in many California  
          communities, as have other outlets for direct marketing, such as  
          farm stands and community supported agriculture.  There are  
          approximately 800 farmers' markets in California, a significant  
          number of which operate year-round.  The success of CFMs has  
          created community events around them.  Many CFMs have adjacent  
          non-agricultural markets selling all types of homemade and  
          commercial products.  









                                                                  AB 1871
                                                                  Page  2

          As CFMs have become more popular, the willingness of a few  
          producers to sell whatever they could became a concern to many  
          CFM operators.  In 1999, they came to the Legislature and  
          enacted a daily per stall fee of $0.60, intending it to be used  
          by CDFA and county agricultural commissioners (CAC) for  
          inspections and enforcement purposes.  Due to the growth of the  
          program and reductions in the General Fund to CDFA, and  
          reductions to CAC's budgets, the fee has been used to administer  
          the program and not for inspection and enforcement, as it was  
          intended.  

          This bill establishes a specific inspection and enforcement fee,  
          increases the amount of the daily stall fee, and broadens the  
          pool of payers to include those that participate in adjacent  
          non-agricultural markets.  These changes are supported by CFMs  
          and CACs.

          See policy committee analysis for more details and specifics of  
          this bill.


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084FN:  
          0005112