Committee advances updates to commodity handler and farm product law to appropriations

The House Agriculture, Natural Resources and Water Committee moved Senate Bill 25176 to the Appropriations Committee after sponsors described the measure as a technical update to Colorado's Farm Products and Commodity Handler Act.

Assistant Minority Leader AML Winter, a sponsor, said the bill implements Department of Agriculture and sunset-review recommendations, and extends the statute's repeal date from September 2025 to September 2032. Representative Martinez, co-prime sponsor, described the measure as "streamlining what's already in place."

Daniel Zangari, chief of technical services in the Department of Agriculture's Inspection Consumer Services Division, testified the bill would raise the small-volume dealer annual purchase limit from $20,000 to $45,000, a figure the department said has not been updated in more than 30 years. The bill would also authorize the commissioner to adjust the small-volume threshold by rule and remove marijuana from the statutory definition of "commodities." Zangari told the committee the effect would be to modernize classification of dealers and maintain bonding and letter-of-credit protections for sellers of perishable agricultural goods.

After no amendments, sponsors moved the bill to Appropriations with a favorable recommendation; the committee adopted the motion by recorded vote, 13-0.

Why it matters: The act is a regulatory program designed to protect Colorado farmers and ranchers from financial risk when selling perishable agricultural products; the updated purchase threshold and rulemaking authority are intended to reflect inflation and reduce the need for frequent legislative adjustments.

Next steps: SB 25176 will be considered by the Appropriations Committee.