California Senate Bill SB362 Latest Draft

 BILL NUMBER: SB 362AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 2, 2010 AMENDED IN ASSEMBLY JUNE 28, 2010 AMENDED IN ASSEMBLY FEBRUARY 23, 2010 AMENDED IN ASSEMBLY JULY 6, 2009 AMENDED IN SENATE MAY 28, 2009 AMENDED IN SENATE MAY 20, 2009 INTRODUCED BY Senator Florez FEBRUARY 25, 2009 An act to add Section 47060 to the Food and Agricultural Code,  and to add Sections 17158 and 24316 to the Revenue and Taxation Code,  relating to agriculture. LEGISLATIVE COUNSEL'S DIGEST SB 362, as amended, Florez. Agriculture: victory garden  growers: taxes: exclusion.   growers.  Existing law provides for the direct marketing of agricultural produce, including through certified farmers' markets, field retail stands, or farm stands, subject to specified conditions. This bill would authorize a victory garden grower, as defined, that files a notice with, and pays a $50 filing fee to, the county agricultural commissioner to sell fruits, nuts, or vegetables that he or she grows in his or her garden directly to the public, including at a farmers' market, or to a retailer or distributor or others, within a 15-mile radius from the garden. The license would be effective upon the filing of the notice and payment of the fee and would be renewable annually.  A licensed victory garden grower would be exempt from certain state laws and local ordinances, as specified.   A licensed victory garden grower would be subjec   t to applicable state and local laws and ordinances, except as provided.  Because this bill would impose new duties on local agencies, the bill would impose a state-mandated local program. A violation of any of these provisions would be a misdemeanor. Because this bill would create a new crime, it would impose a state-mandated local program.  The Personal Income Tax Law and the Corporation Tax Law provide for various exclusions from gross income for the purposes of the taxes imposed by those laws.   This bill would, for purposes of computing personal income and corporation taxes, exclude from gross income any amounts received from the sale of fruits, nuts, or vegetables grown by a licensed victory garden grower pursuant to the license.  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 47060 is added to the Food and Agricultural Code, to read: 47060. (a) Notwithstanding any other law, a person licensed as a victory garden grower may, within a 15-mile radius from the garden, sell fresh fruits, nuts, or vegetables that he or she grows in his or her garden directly to the public, including at a farmers' market, or to a retailer or distributor or others, including, but not limited to, a grocer, market, school, or restaurant. (b) For purposes of this section, a "victory garden grower" means a person in this state who owns or leases a garden of a reasonable size, not exceeding one acre in size, and grows fruits, nuts, or vegetables, or any combination of these foods, in that garden. The county agricultural commissioner may determine rules or guidelines of general applicability addressing what is a reasonable size in his or her county under the circumstances. However, no victory garden grower shall be required to obtain the permission of the county agricultural commissioner as a condition of obtaining or maintaining a victory garden grower license, except for the notice and fee as provided in subdivision (c). (c) (1) In order to be licensed as a victory garden grower, the grower shall file a notice, not exceeding one page in length, and otherwise in a form as prescribed by the county agricultural commissioner, along with a fifty-dollar ($50) filing fee, with the county agricultural commissioner in the county in which the garden is located. The license shall be effective upon the filing of the notice and payment of the fee, and may be renewed annually by filing another notice and paying the fifty-dollar ($50) filing fee. (2) A photocopy of the notice, along with proof of payment of the filing fee, which can be a photocopy of a check or money order or other payment form, shall be prima facie evidence of the victory garden grower's licenseholder status pursuant to this section, and all persons shall be entitled to rely on that evidence. However, a county agricultural commissioner may choose to issue, from time to time, receipts or certificates evidencing the victory garden grower's licenseholder status, and that receipt or certificate, if and when issued, shall also be prima facie evidence of the victory garden grower's licenseholder status pursuant to this section.  (d) (1) A licensed victory garden grower shall be exempt from any state law and local county and city ordinance that requires a license or permit to conduct the activities of a victory garden grower, or that prohibits these activities, including, but not limited to, local zoning and business license ordinances. However, except as provided in subdivision (e), a licensed victory garden grower shall be subject to all other applicable state and local laws relating to, but not limited to, health and safety, noise, and prohibited poisons.   (2) The Legislature finds and declares that the encouragement and development of community-based food gardens to serve their local communities with locally grown foods is a matter of statewide interest and concern. It is, therefore, the intent of the Legislature that this section shall supersede all conflicting local laws and shall apply in charter cities.   (d) Except as provided in subdivision (e), a licensed victory garden grower shall be subject to all applicable state and local laws and ordinances.  (e) The agricultural produce sold by a licensed victory garden grower shall be exempt from size, standard pack, container, and labeling requirements of state law. However, a county agricultural commissioner may issue regulations or guidelines of general applicability providing for point-of-sale identification of the produce of a county's victory garden grower as "____ County Victory Garden Produce" or "Victory Garden produce of ____ County," or similar wording, and the identification regulations or guidelines shall not impose any material or unreasonable cost or burden upon a victory garden grower. In addition to the identification, a victory garden grower may add an optional additional geographic statement of origin for any victory garden produce, which reasonably identifies, with customary publicly recognized names, the neighborhood or microlocality of the victory garden. Any such neighborhood or microlocality shall conform reasonably closely with the 15-mile radius sale area applicable to the victory garden grower as provided in this section.  SEC. 2.   Section 17158 is added to the Revenue and Taxation Code, to read: 17158. Gross income shall not include any amount received during the taxable year by a person licensed pursuant to Section 47060 of the Food and Agricultural Code from the sale of fruits, nuts, or vegetables grown pursuant to the license.   SEC. 3.   Section 24316 is added to the Revenue and Taxation Code, to read: 24316. Gross income shall not include any amount received during the taxable year by a person licensed pursuant to Section 47060 of the Food and Agricultural Code from the sale of fruits, nuts, or vegetables grown pursuant to the license.   SEC. 4.   SEC. 2.  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.