California Assembly Bill AB2324 Amended / Bill

 BILL NUMBER: AB 2324AMENDED BILL TEXT AMENDED IN SENATE AUGUST 15, 2016 AMENDED IN SENATE JUNE 15, 2016 AMENDED IN ASSEMBLY MAY 27, 2016 AMENDED IN ASSEMBLY MARCH 18, 2016 INTRODUCED BY Assembly Member Eggman FEBRUARY 18, 2016 An act to amend Sections  47000.5, 47001, and 47004   47000.5 and 47001  of, and to add Section 47005.4 to, the Food and Agricultural Code, relating to certified farmers' markets. LEGISLATIVE COUNSEL'S DIGEST AB 2324, as amended, Eggman. Certified farmers' markets. Existing law provides for the regulation of certified farmers' markets and authorizes the Secretary of Food and Agriculture to adopt regulations to encourage the direct sale by farmers to the public of all types of California agricultural products.  Existing law requires vendors of agricultural products selling within a certified farmers' market to comply with specified requirements. Existing law makes it unlawful to violate the provisions regulating certified farmers' markets, and authorizes the secretary or a county agricultural commissioner, in lieu of prosecution, to levy a civil penalty against a person who violates those provisions. Existing law defines "agricultural product" for purposes of the certified farmers' market provisions.   This bill would revise the definition of "agricultural product" to include raw sheared wool.  This bill would specify the Legislature's intent that the secretary, in adopting those  regulations and regulations clarifying the provisions regulating certified farmers' markets,   regulations,  endeavor to keep costs incurred by farmers and certified farmers' market operators at a  minimum.   minimum, would authorize the secretary to adopt regulations clarifying the certified farmers' market provisions, and would revise the term "agricultural product" for purposes of the certified farmers' market provisions to include raw sheared wool. The bill would also add a provision specifying that nothing in the certified farmers'   market provisions shall be interpreted to preclude a certified farmers' market operator from creating and keeping additional information or requiring a vendor to provide additional information, as specified.   This bill would additionally require vendors of agricultural products at certified farmers' markets to keep specified sales records for at least 12 months and would require a vendor to make those records available for inspection by any state or county enforcement agency within 24 hours of delivery of the request or within a reasonable time period, as specified. The bill would also require a certified farmers' market operator, upon written request by a state or county enforcement agency pursuant to an investigation of an alleged violation of a specified law, to commence to note and make record of the product identity of all fresh fruits and vegetables offered for sale by a vendor, and to furnish the agency with a copy of those notes and records within 3 business days of a subsequent request or within a reasonable time period, as specified. By imposing additional requirements on vendors and operators of certified farmers' markets, the violation of which would be a crime, the bill would impose a state-mandated local program.   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 no reimbursement is required by this act for a specified reason.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  yes   no  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 47000.5 of the Food and Agricultural Code is amended to read: 47000.5. The following definitions apply to this chapter, unless otherwise specified: (a) (1) "Agricultural product" means a fresh or processed product produced in California, including fruits, nuts, vegetables, herbs, mushrooms, dairy, shell eggs, honey, pollen, unprocessed bees wax, propolis, royal jelly, flowers, grains, nursery stock, raw sheared wool, livestock meats, poultry meats, rabbit meats, and fish, including shellfish that is produced under controlled conditions in waters located in California. (2) Products that are characterized as services, arts, crafts, bakery, candies, soaps, balms, perfumes, cosmetics, pottery, clothing, fabrics, pastas, compost, fertilizers, candles, ceramics, foraged foods, and types of wares are not agricultural products for purposes of this chapter. A product that combines an agricultural product with a nonagricultural product or service in a manner that materially increases the purchase price of the product shall disqualify the product from being sold as an agricultural product for purposes of this chapter. (b) "Practice of the agricultural arts" means the undertaking of being predominantly responsible for the decisions and actions encompassing the various phases of producing an agricultural product. The practice of the agricultural arts for fruit, floral, nut, vegetable, and other plant products includes directive or actual responsibility for all the actions of planting, growing, fertilizing, irrigating, cultivating, pest control, and harvesting. The practice of the agricultural arts for agricultural animal products includes directive or actual responsibility for a substantial time of the raising, feeding, veterinary care, and product harvesting. (c) "Producer" means a person, partnership, corporation, or an otherwise legally formed farm or ranch that produces agricultural products by the practice of the agricultural arts upon land that the person or entity owns, rents, leases, sharecrops, or otherwise controls and has the documented legal right to possession. A person or entity that rents, leases, or otherwise acquires the right to possession of property essentially only for or limited to the period of the harvest season of the agricultural products produced on that property shall not be considered a producer under the provisions of this chapter. SEC. 2. Section 47001 of the Food and Agricultural Code is amended to read: 47001. (a) The secretary may adopt regulations to encourage the direct sale by farmers to the public of all types of California agricultural products. It is the intent of the Legislature that, in adopting those regulations, the secretary shall endeavor to keep costs incurred by farmers and certified farmers' market operators to a minimum, recognizing that any administrative costs imposed on farmers and certified farmers' market operators are generally passed on in the form of increased prices to the public, thus economically benefiting neither the public nor the farmer. (b) In accordance with the intent expressed in subdivision (a), the secretary may adopt regulations clarifying the provisions of this chapter, including the adoption of regulations for maintaining the quality and wholesomeness of the products offered for sale and promoting and fostering honest selling activities for those products. (c) The secretary may enter into a cooperative agreement with a county agricultural commissioner to carry out the provisions of this chapter, including, but not limited to, administration, investigations, inspections, registrations, and assistance pertaining to direct marketing producers and outlets. Compensation under the cooperative agreement shall be paid from assessments and fees collected and deposited pursuant to this chapter and shall provide reimbursement to the county agricultural commissioner for associated costs exclusive of the costs of certification and minimum inspections required pursuant to Section 47020. (d) Upon reasonable suspicion of a violation of Section 890, a certified farmers' market operator may contract with a county agricultural commissioner for a special onsite field or storage verification inspection of a direct marketing producer selling in a certified farmers' market operated and controlled by the operator. All contracts and contract fees are subject to the discretion of the county agricultural commissioner in the county where the verification inspections are being requested.  SEC. 3.   Section 47004 of the Food and Agricultural Code is amended to read: 47004. (a) Certified farmers' markets are California agricultural product point-of-sale locations that are registered under the provisions of Section 47020 and operated in accordance with this chapter and regulations adopted pursuant to this chapter. (b) The operator of a certified farmers' market shall establish a clearly defined marketing area where only agricultural products may be sold. Only the producer or the lawful authorized representative of the producer may sell agricultural products within the area defined as a certified farmers' market. Sales of agricultural products purchased from another individual or entity shall not occur within a certified farmers' market, and an agricultural product producer or product dealer shall not sell his or her agricultural products to another individual or entity with the understanding or knowledge that the products are intended to be resold in a certified farmers' market in violation of this chapter or the regulations adopted pursuant to this chapter. Every producer selling within a certified farmers' market shall comply with Section 47020. (c) All vendors of agricultural products selling within a certified farmers' market shall do all of the following: (1) Post a conspicuous sign or banner at the point of sale that states the name of the farm or ranch, the county where the farm or ranch maintains the production grounds that produced the products being offered for sale is located, and a statement that "We Grew What We Are Selling" or "We Raised What We Are Selling" or "We Grow What We Sell" or similar phrases that clearly represent that the farm or ranch is only selling agricultural products that they themselves have grown or raised on California land that they possess or control. Product sales by different farms at the same vendor stand shall separate the products from each farm or ranch and correspondingly post the required sign or banner in direct relationship with the sales display of the products produced by each farm. (2) Ensure that all processed agricultural products that they offer for sale state in a clear manner by package label, container label, or bulk sales signage that they consist only, with the exception of incidental flavorings and necessary preservatives, of agricultural products grown or raised by the farm or ranch selling them, the farm or ranch name, and the city where the farm or ranch is located. In addition, every processed product shall identify on a package label, container label, or on bulk sales signage the registration number or other identity reference of the facility where the food was processed, or another required labeling statement or information, in accordance with Sections 110460, 114365, and 114365.2 of the Health and Safety Code, or, in the case of meat or poultry products, the identity of the facility where the meat or poultry products were cut and wrapped, in accordance with the applicable United States Department of Agriculture or State of California inspection standards, or, in the case of dairy products, the identity of the facility where the dairy products were manufactured or processed. (3) Ensure all products being represented or offered for sale as organic are clearly labeled or have conspicuous and posted point-of-sale signage identifying the products as organic. (4) Keep product identity, product variety, and quantity of sales records for all agricultural product sales made to the public from each certified farmers' market at which products were sold. Records of these product sales shall be maintained by the vendor for at least 12 months from the date of sale. (5) Keep product identity and relative measured weight or volume records of all unprocessed agricultural product delivered to a processing facility for purposes of creating processed agricultural product intended for sale to the public at certified farmers' markets, including the name and address of the processor, the dates when the unprocessed product was delivered by the vendor to the processor, the dates when the processed product was delivered to the vendor by the processor, the character and type of processed agricultural product produced by the processor for the vendor, and the relative measured weight or volume of the processed product delivered back to the vendor. These records shall be maintained by the vendor for a minimum of 12 months from the date the vendor received the product from the processor. (d) Upon a written request that specifically identifies the information desired, the records required to be kept pursuant to paragraphs (4) and (5) of subdivision (c) shall be made available for inspection during normal business hours to any state or county enforcement agency charged with enforcement of this chapter within 24 hours of the delivery of the request, or within a similar period of time that is reasonable for the circumstances prevailing at the time. (e) The representations required pursuant to subdivision (c) shall be subject to the provisions and penalties specified in Section 890. (f) An operator of a certified farmers' market that also operates, manages, or otherwise controls a separate sales activity or vending event or marketing area in close proximity, adjacent, or contiguous to the operator's certified farmers' market shall not allow the sale or distribution of fresh whole fruits, nuts, vegetables, cultivated mushrooms, herbs, and flowers by vendors selling within those sales activity or vending event or marketing areas. (g) The operator of a certified farmers' market shall keep an accurate participation record of the individual direct marketing producers whose agricultural products were presented for sale in their market each market day. The operators shall submit to the department a quarterly report of the registration numbers and participation frequency of the direct marketing producers whose agricultural products were presented for sale in the operator's market during that past quarter. The department shall create and maintain online capability for reporting. (h) Operators of certified farmers' markets may establish rules and procedures that are more restrictive and stringent than state laws or regulations governing or implementing this chapter, so long as the rules and procedures are not in conflict with state laws or regulations. (i) Except for certified farmers' markets operated by government agencies, nonprofit entities and other qualified operators of certified farmers' markets shall be considered private entities and may take actions, adopt rules, and impose requirements they deem necessary for the proper and honest operation of their market, subject to the application of any state or other laws. Government agency operators of certified farmers' markets are subject to applicable state laws, the regulations and laws of the governing agency, and other laws governing the conduct and actions they may take as a governmental entity.   SEC. 4.   SEC. 3.  Section 47005.4 is added to the Food and Agricultural Code, to read:  47005.4. (a) Pursuant to an investigation of an alleged violation of Section 890, and upon a request by a state or county enforcement agency specifying the vendor's name, farmers' market location, and farmers' market date, the operator of a certified farmers' market shall commence to note and make record of the product identity of all fresh fruits and vegetables that the vendor offered for sale on the specified farmers' market date. The operator shall furnish to the agency copies of those notes and records within three business days of the delivery of a subsequent written request or within a similar period of time that is reasonable for the circumstances prevailing at the time of request. (b)   47005.4.  Nothing in this chapter shall be interpreted to preclude the creation and keeping of additional information that a certified farmers' market operator may endeavor itself to create and keep, or to contractually require a vendor to provide additional information as a condition to selling in the operator's farmers' market.  SEC. 5.   No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because 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.