BILL NUMBER: AB 1135	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 29, 2015
	AMENDED IN ASSEMBLY  APRIL 21, 2015

INTRODUCED BY    Committee on Agriculture  
Assembly Member   Perea 

                        FEBRUARY 27, 2015

    An act to amend Sections 5918, 47004, and 47020 of the
Food and Agricultural Code, relating to agricultural products.
  An act to create the Kings River East Groundwater
Sustainability Agency, and prescribing its boundaries, organization,
operation, management, financing, and other powers and duties,
relating to water districts. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1135, as amended,  Committee on Agriculture 
 Perea  .  Agricultural products.  
Kings River East Groundwater Sustainability Agency Act.  
   Existing law, the Sustainable Groundwater Management Act, requires
all groundwater basins designated as high- or medium-priority basins
by the Department of Water Resources that are designated as basins
subject to critical conditions of overdraft to be managed under a
groundwater sustainability plan or coordinated groundwater
sustainability plans by January 31, 2020, and requires all other
groundwater basins designated as high- or medium-priority basins to
be managed under a groundwater sustainability plan or coordinated
groundwater sustainability plans by January 31, 2022, except as
specified.  
   This bill would create the Kings River East Groundwater
Sustainability Agency and would require the agency's initial
boundaries to be established by the boards of supervisors of the
Counties of Fresno and Tulare after a noticed public hearing. The
bill would require the agency to elect to be a groundwater
sustainability agency under the Sustainable Groundwater Management
Act for that portion of the Kings Subbasin that lies within the
boundaries of the agency and would require the agency to develop and
implement a groundwater sustainability plan to achieve sustainable
groundwater management within the territory of the agency. The bill
would generally specify the powers and purposes of the agency. The
bill would prescribe the composition of the 7-member board of
directors of the agency and would require members and alternates to
be chosen by prescribed member agencies, as specified. By imposing
duties on the agency and the member agencies in connection with the
operation of the district, 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   (1) Under existing law, certified farmers' markets are California
agricultural product point-of-sale locations that are registered and
operated in accordance with specified provisions. Existing law
requires an operator of a certified farmers' market to establish a
clearly defined marketing area where only agricultural products may
be sold. Existing law prohibits 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
from allowing the sale or distribution of fresh whole fruits, nuts,
vegetables, and flowers by vendors selling within those sales
activity or vending event or marketing areas. Under existing law, a
violation of these provisions is an infraction or misdemeanor, as
specified.  
   This bill would add cultivated mushrooms and herbs to the list of
items that 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 is prohibited
from selling within those sales activity or vending event or
marketing areas. By changing the definition of a crime, this bill
would impose a state-mandated local program.  
   Existing law requires a certified farmers' market operator or
producer to annually register with the Department of Food and
Agriculture by applying for and receiving a certificate from a county
agricultural commissioner. Existing law requires a producer farming
fruit, vegetables, nuts, herbs, and similar crops, once certified, to
annually submit information requested by the department about the
specific crops that the producer will harvest or intends to harvest
for sale directly to the public.  
   This bill would require a producer of these crops to submit this
information to the county agricultural commissioner's office in the
county in which the producer's land or facility is located as part of
obtaining or renewing a certified producer certificate. By imposing
a new duty on county agricultural commissioners, the bill would
impose a state-mandated local program.  
   (2) Existing law creates in the Department of Food and Agriculture
the California Citrus Pest and Disease Prevention Committee and
provides for its continuation, and that of the California Citrus Pest
and Disease Prevention Program, every 4 years subject to a
referendum of the citrus producers on or before June 30, 2013, and
every 4 years thereafter. Pursuant to this referendum the department
has extended the citrus pest and disease prevention program for an
additional 4 years.  
   Existing law requires the committee to reimburse the Secretary of
Food and Agriculture for all reasonable expenditures incurred by the
secretary in carrying out his or her duties and responsibilities
pursuant to the citrus pest and disease prevention program, including
the costs of implementing and administering the administrative,
enforcement, and regulatory recommendations of the statewide work
plan developed by the committee.  
   This bill would require the committee to reimburse the secretary
for all expenditures incurred by the secretary in carrying out his or
her duties and responsibilities pursuant to the program. 

   (3) 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.    This act shall be known and may be
cited as the   Kings River East Groundwater Sustainability
Agency Act   . 

       Kings River East Groundwater Sustainability Agency Act 
      Article 1.  Findings and Declarations


  101.  The Legislature hereby finds and declares that the
preservation of the groundwater resources within the territory of the
agency for agricultural, municipal, and industrial uses is in the
public interest and that the creation of the agency pursuant to this
act is for the common benefit of water users.
  102.  The Legislature further finds and declares that the
groundwater management activities of the agency benefit all operators
of groundwater extraction facilities within the territory of the
agency.  
      Article 2.  Creation and Purposes


  201.  (a) A groundwater management agency is hereby created in the
Counties of Fresno and Tulare to be known as the Kings River East
Groundwater Sustainability Agency.
   (b)  The agency shall be governed by a board as specified in
Section 501 and shall have the boundaries specified in Section 301.
The agency shall exercise the powers granted by this act and the
Sustainable Groundwater Management Act (Part 2.74 (commencing with
Section 10720) of Division 6 of the Water Code) for purposes of
groundwater management within the boundaries of the agency, together
with any other powers as are reasonably implied, necessary, and
proper to carry out the objectives and purposes of the agency to
implement the Sustainable Groundwater Management Act.  
      Article 3.  Boundaries


  301.  For the purposes of this act, the boundaries of the agency
shall include all land located within the exterior perimeter
boundaries of Alta Irrigation District within the Counties of Fresno
and Tulare, the Orange Cove Irrigation District, the Hills Valley
Irrigation District, and the Tri-Valley Water District overlying the
San Joaquin Valley Basin Kings Subbasin as described in the report by
the Department of Water Resources entitled "California's
Groundwater: Bulletin 118" updated in 2003, as it may be subsequently
updated or revised in accordance with Section 12924 of the Water
Code.
  302.  The agency's initial boundaries shall be established by the
boards of supervisors of the Counties of Fresno and Tulare after a
noticed public hearing. The boundaries shall be depicted on a map
that shall be adopted by the boards of supervisors of those counties
and thereafter recorded in the office of the county recorder of each
county.
  303.  The boards of supervisors of the Counties of Fresno and
Tulare may adjust the boundaries of the agency in the same manner
prescribed for establishment of the initial boundaries if the
boundaries of the basin are revised, including the establishment of
new subbasins.  
      Article 4.  Definitions


  401.  Unless otherwise indicated by their context, the definitions
set forth in this article govern the interpretation of this act.
  401.1.  "Actively and primarily engaged in production of
agriculture" means that a person derives at least 75 percent of his
or her annual income from production agriculture.
  402.  "Agency" means the Kings River East Groundwater
Sustainability Agency established by this act.
  403.  "Alta" means the Alta Irrigation District.
  404.  "Aquifer" means a geologic formation or structure that
transmits water in sufficient quantities to supply pumping wells or
springs.
  405.  "Basin" has the same meaning as defined in Section 10721 of
the Water Code.
  406.  "Board" means the board of directors of the agency, as more
particularly described in Section 501.
  407.  "Cities" means the Cities of Dinuba, Orange Cove, and Reedly.

  408.  "Coordination agreement" has the same meaning as defined in
Section 10721 of the Water Code.
  409.  "County" means either the County of Fresno or the County of
Tulare, as the context requires. "Counties" means the County of
Fresno and the County of Tulare.
  410.  "Extraction" means the act of obtaining groundwater by
pumping or other controlled means.
  411.  "Groundwater" has the same meaning as defined in Section
10721 of the Water Code.
  412.  "Groundwater management activities" means programs, measures,
or actions taken to preserve, protect, and enhance groundwater
resources within the territory of the agency.
  413.  "Kings Subbasin" means the San Joaquin Valley Basin Kings
Subbasin as described in Section 301.
  414.  "Member agency" means Alta, the counties, the cities, and the
special districts entitled to representation on the agency's board
of directors as specified in Section 501.
  415.  "Operator" has the same meaning as defined in Section 10721
of the Water Code.
  416.  "Person" includes any state or local governmental agency,
private corporation, firm, partnership, limited liability company,
individual, group of individuals, or, to the extent authorized by
law, any federal agency.
  417.  "Plan" means a groundwater sustainability plan prepared by
the agency pursuant to this act.
  418.  "Supplemental water" means surface water or groundwater
imported from outside the watershed or watersheds of the basin or
aquifer and flood waters that are conserved and saved within the
watershed or watersheds that would otherwise have been lost or would
not have reached the basin or aquifer.  
      Article 5.  General Provisions


  501.  (a) The agency shall be governed by a board of directors that
shall consist of seven members, as follows:
   (1) One member shall be chosen by Alta.
   (2) One member shall be chosen by the County of Fresno.
   (3) One member shall be chosen by the County of Tulare.
   (4) One member shall be chosen by the cities. This member shall be
chosen from the members of the city councils of the cities whose
territory, at least in part, overlies the territory of the agency.
This member shall be chosen at a public meeting where each city is
represented by its mayor.
   (5) One member shall be chosen from the members of the governing
boards of the following special districts that are not governed by
the board of supervisors of either county, are engaged in water
activities, and whose territory, at least in part, overlies the
territory of the agency:
   (A) Hills Valley Irrigation District.
   (B) Orange Cove Irrigation District.
   (C) Tri-Valley Water District.
   (6) One member shall be chosen from the members of the governing
boards of the following special districts that provide drinking water
within the territory of the agency:
   (A) Cutler Public Utility District.
   (B) East Orosi Community Services District.
   (C) London Community Services District.
   (D) Orosi Public Utility District.
   (E) Sultana Community Services District.
   (7) One member shall be chosen by the other six board members to
represent agricultural interests within the territory of the agency.
This member shall reside and be actively and primarily engaged in
production of agriculture within the territory of the agency. This
member shall be selected from a list of at least five nominations
submitted from the Fresno County Farm Bureau and the Tulare County
Farm Bureau, acting jointly, but the five nominees need not be
members of either organization.
   (b) The board members described in paragraphs (1), (2), and (3) of
subdivision (a) shall be chosen by their respective governing boards
from their board members whose districts or divisions overlie, at
least in part, the territory of the agency.
   (c) The board members described in paragraphs (5) and (6) of
subdivision (a) shall be chosen at a public meeting where each
special district is represented by the president or chair of its
governing board.
   (d) There shall be an alternate for each board member, chosen in
the same manner and by the same entity as the board member. The
alternate member shall act in place of the board member he or she is
an alternate for in case of that board member's absence or inability
to act.
  502.  (a) The members described in paragraphs (1) to (6),
inclusive, of subdivision (a) of Section 501 shall serve for a
four-year term of office, or until the member is no longer an
eligible official of the member agency. These members may serve for
more than one term of office.
   (b) The member described in paragraph (7) of subdivision (a) shall
serve a four-year term of office.
  503.  (a) The board may adopt an ordinance to provide compensation
to members of the board in an amount not to exceed one hundred
dollars ($100) per day for each day's attendance at meetings of the
board or for each day's service rendered as a member of the board by
request of the board. For purposes of this section, the determination
of whether a board member's activities on any specific day are
compensable shall be made pursuant to Article 2.3 (commencing with
Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5 of the
Government Code.
   (b) Reimbursement for expenses of members of the board is subject
to Sections 53232.2 and 53232.3 of the Government Code.
   (c) The board may adopt an ordinance to increase the compensation
received by members of the board above the amount of one hundred
dollars ($100) per day. The increase shall not exceed an amount equal
to 5 percent, for each calendar year following the operative date of
the last adjustment, of the compensation that is received when the
ordinance is adopted.
   (d) A board member shall not be compensated for more than a total
of 10 days in any calendar month.
  504.  (a) The board may adopt ordinances for the purpose of
regulating, conserving, managing, and controlling the use and
extraction of groundwater within the territory of the agency.
   (b) An ordinance adopted by the board shall become effective 30
days from the date of its passage.
   (c)  All ordinances shall be adopted at noticed, public hearings
by a majority vote of the board. No ordinance shall be adopted by the
board except at a public hearing. Notice of the hearing shall be
published in a newspaper of general circulation pursuant to Section
6066 of the Government Code.
   (d) The board shall provide notice of the adoption of all
ordinances.
  505.  No provision of this act shall be construed as denying to the
counties, any city, Alta, or any other member agency any rights or
powers that they already have or that they may be granted.
  506.  The agency may contract with either county or Alta for staff
and other services. The agency may hire contractors and consultants
as it considers appropriate.
  507.  The agency may enter into a coordination agreement with other
local agencies for purposes of coordinating the agency's plan with
other agencies or groundwater sustainability plans within the basin.
  508.  The agency may exclude from any of the requirements of this
act, or the operation of any ordinance, any operator who annually
extracts less than a minimum amount of groundwater as specified by an
ordinance adopted by the board.  
      Article 6.  Studies and Investigations


  601.  The agency may collect data and conduct technical and other
investigations of all kinds in order to carry out the provisions of
this act. All hydrological investigations and studies carried out by
or on behalf of the agency shall be constructed by or under the
supervision of licensed engineers or other persons qualified in
groundwater geology or hydrology.
  602.  The agency may recommend and encourage water recycling and
other water development projects, where those projects will enhance
and contribute to the responsible management of groundwater
resources, as part of its annual plan for implementation of
groundwater management objectives.  
      Article 7.  Sustainable Groundwater Management Powers


  701.  The agency shall develop and implement a groundwater
sustainability plan pursuant to Chapter 6 (commencing with Section
10727) of Part 2.74 of Division 6 of the Water Code to achieve
sustainable groundwater management within the territory of the
agency.
  702.  The agency shall elect to be a groundwater sustainability
agency pursuant to Chapter 4 (commencing with Section 10723) of Part
2.74 of Division 6 of the Water Code for that portion of the Kings
Subbasin that lies within the boundaries of the agency.
  703.  The agency may exercise any of the powers described in
Chapter 5 (commencing with Section 10725) of Part 2.74 of Division 6
of the Water Code and the enforcement powers described in Chapter 9
(commencing with Section 10732) of Part 2.74 of Division 6 of the
Water Code.
  704.  The availability of supplemental water to any operator shall
not subject that operator to regulations that are more restrictive
than those imposed on other operators.  
      Article 8.  Fee Authority


  801.  Pursuant to Chapter 8 (commencing with Section 10730) of Part
2.74 of Division 6 of the Water Code, the agency may impose fees,
including, but not limited to, permit fees and fees on groundwater
extraction or other regulated activity, to fund the costs of a
groundwater sustainability program, that include, but are not limited
to, the preparation, adoption, and amendment of a groundwater
sustainability plan, investigations, inspections, compliance
assistance, enforcement, and program administration, including a
prudent reserve. 
   SEC. 2.    If the Commission on State Mandates
determines that this act contains 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.  
  SECTION 1.    Section 5918 of the Food and
Agricultural Code is amended to read:
   5918.  (a)  The committee shall reimburse the secretary for all
expenditures incurred by the secretary in carrying out his or her
duties and responsibilities pursuant to this article, including the
costs of implementing and administering the administrative,
enforcement, and regulatory recommendations of the statewide work
plan developed by the committee.
   (b) The secretary shall not seek reimbursement for costs that
exceed expenditures developed by the committee without first
notifying the committee of the additional expenditures. 

  SEC. 2.    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.
   (d) The representations required pursuant to subdivision (c) shall
be subject to the provisions and penalties specified in Section 890.

   (e) 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.
   (f) 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.
   (g) 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.
   (h) 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. 3.    Section 47020 of the Food and
Agricultural Code is amended to read:
   47020.  (a) An operator of a certified farmers' market shall
annually register with the department by applying for and obtaining a
certificate from the county agricultural commissioner's office in
the county in which the certified farmers' market is located. The
application shall include the times and location of the market, the
name and contact information for the operator of the market, and the
agent for service of process for the operator. Upon approval of an
application, the county agricultural commissioner shall issue to the
operator a certified farmers' market certificate.
   (b) A certified farmers' market certificate issued by a county
agricultural commissioner shall be valid for 12 months from the date
of issue, and may be renewed annually thereafter. The county
agricultural commissioner shall inspect every certified farmers'
market within his or her jurisdiction at least once for every six
months of operation. At the time of application or renewal, the
county agricultural commissioner shall provide a schedule of fees
that reflects an estimate of expenses for inspections and may charge
a certification and inspection fee equal to the actual expenses
incurred.
   (c) (1) (A) Before selling at a certified farmers' market, a
producer shall register with the department by applying for and
obtaining a certificate from the county agricultural commissioner's
office in the county in which the producer's land or facility is
located. The application shall include a declaration by the producer
that he or she is knowledgeable of and intends to produce in
accordance with good agricultural practices, as outlined in the Small
Farm Food Safety Guidelines published by the department. Upon
approval of an application, the county agricultural commissioner
shall issue to the producer a certified producer's certificate.
   (B) A declaration made pursuant to subparagraph (A) shall not be
used to infer that the producer is not required to comply with other
state or federal laws relative to food safety and good agricultural
practices.
   (2)  As part of obtaining or renewing a certified producer
certificate, a producer farming fruit, vegetables, nuts, herbs, and
similar crops shall annually submit to the county agricultural
commissioner's office in the county in which the producer's land or
facility is located information requested by the department about the
specific crops that he or she will harvest or intends to harvest for
sale directly to the public. The secretary may promulgate
regulations specifying the information a producer is required to
submit.
   (3) A certified producer's certificate issued by a county
agricultural commissioner shall be valid for up to 12 months from the
date of issue and may be renewed annually thereafter. The county
agricultural commissioner in each county shall perform at least one
onsite inspection for all new certified producer's certificate
applicants, and may perform additional inspections as needed of the
property or properties listed on the certified producer's certificate
issued in his or her county as deemed appropriate by the county
agricultural commissioner to verify production of the commodities
being sold at a certified farmers' market or the existence in storage
of the producer's actual harvested production, or both, of any
product being sold at a certified farmers' market. Where practical or
purposeful, verification inspections shall be made when the actual
harvest or sale of the commodity in question is occurring. The
                                       county agricultural
commissioner shall provide to the producer a schedule of fees that
reflects an estimate of expenses for certification or inspection at
the time of application or renewal or before any needed additional
verification inspection, and may charge a certification and
inspection fee equal to the actual expenses incurred.
   (d) Renewal of a certified farmers' market certificate or
certified producer's certificate may be denied by either the
department or a county agricultural commissioner if a certified
farmers' market or a producer is delinquent in the payment of the
required state fee or a county certification and inspection fee or
administrative civil penalty authorized pursuant to this chapter. The
certificate may be eligible for renewal when all outstanding
balances and associated penalties or administrative fines have been
paid to the department or the respective county or counties.
 
  SEC. 4.    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.