BILL NUMBER: AB 2612	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 9, 2010
	PASSED THE ASSEMBLY  AUGUST 12, 2010
	AMENDED IN SENATE  JUNE 16, 2010
	AMENDED IN SENATE  JUNE 7, 2010
	AMENDED IN ASSEMBLY  APRIL 7, 2010

INTRODUCED BY   Committee on Agriculture (Galgiani (Chair), Tom
Berryhill (Vice Chair), Conway, Ma, and Mendoza)
   (Coauthor: Assembly Member Yamada)

                        FEBRUARY 19, 2010

   An act to amend Sections 12841.4, 19204, 19220, 19312, 46003,
46004.1, 46009, 46013, 46013.1, 46013.2, and 46014.1 of the Food and
Agricultural Code, and to amend Section 110485 of the Health and
Safety Code, relating to food and agriculture.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2612, Committee on Agriculture. Food and agriculture: omnibus
bill.
   (1) Existing law requires every person who is the first to sell
any agricultural- or structural-use pesticide product for use in this
state that is packaged in rigid, nonrefillable, high-density
polyethylene (HDPE) containers of 55 gallons or less to establish a
recycling program, or demonstrate participation in a recycling
program to ensure HDPE containers are recycled. Existing law requires
that the recycling program be certified by an accredited 3rd-party
organization, as specified, as being in compliance with certain
standards, as specified. Existing law requires any person who is
required to establish or participate in this recycling program to
provide to the Director of Pesticide Regulation, at least annually, a
document certifying that this requirement has been met.
   This bill would instead require the registrant of any production
agricultural- or structural-use pesticide product for use in this
state that is packaged in HDPE containers of 55 gallons or less to
establish a recycling program, or demonstrate participation in a
recycling program to ensure HDPE containers are recycled. The bill
would delete the 3rd-party certification requirements pertaining to
the recycling program. The bill would require any registrant who is
required to establish or participate in this recycling program to
provide to the director, at least annually, a document certifying
that this requirement has been met.
   (2) Existing law requires a person engaged in the business of
operating a collection center to obtain a license from the Department
of Food and Agriculture for each collection center operated.
"Collection center" is defined to mean a receiving area for the
temporary storage of animal carcasses, packinghouse waste, or other
products before transportation to a licensed rendering plant.
Existing law makes a violation of these provisions a crime.
   This bill, instead, would define "collection center" to mean a
receiving area for the temporary storage of animal carcasses,
packinghouse waste, or other products before transportation to a
licensed rendering plant or pet food processor. Because this bill
would change the definition of an existing crime, it would impose a
state-mandated local program.
   (3) Existing law requires persons engaged in certain businesses,
including, among others, rendering, pet food processing, and
operating a collection center, to obtain a license from the
department. Existing law provides that those licenses are valid for a
year from the date of issuance.
   This bill, instead, would provide that those licenses shall expire
on December 31 of each year.
   (4) Existing law requires any person or entity who engages in the
transportation of inedible kitchen grease, as defined, to be
registered with the department. An applicant for registration as a
transporter of inedible kitchen grease is required to include a
registration fee of $100, except for any renderer who registers.
   This bill would also exempt a collection center that registers
from this registration fee.
   (5) Existing law, the California Organic Products Act of 2003,
provides that persons engaged in the production or handling of raw
agricultural products sold as organic or the processing or handling
of processed food sold as organic shall register with the Secretary
of Food and Agriculture. Under existing law the registration form
must include, among other things, a map showing the location and
dimensions of the facility or farm where the products are produced.
If the registrant has not had control of the property for 36 months,
existing law requires that the registrant provide the land use
history of the property for the last 36 months from the previous
owners. If the registrant does not own the property, existing law
requires the registrant to provide documentation from the owner
granting permission for the parcel to be registered as organic.
   This bill would provide that, with respect to the registration
form, producers shall include a detailed physical description of the
location and dimensions of the facility or farm where the products
are produced and exempt producers shall, in addition to the physical
description, include a map, as specified. The bill would define an
exempt producer as a producer whose annual gross agricultural income
from organic sales totals $5,000 or less. The bill would provide that
the above requirements regarding prior land use and permission from
the owner would only apply to exempt producers or exempt handlers,
and would define an exempt handler as a handler whose annual gross
agricultural income from organic sales totals $5,000 or less.
   (6) Under existing law a producer required to register with the
secretary is required to list all substances applied to the crop,
soil, or irrigation water as part of the registration.
   Under this bill only producers whose annual gross agricultural
income from organic sales totals $5,000 or less would be required to
include this information in their registration.
   (7) Existing law establishes a schedule of fees that the
registrant is required to pay to the secretary based on the gross
sales of the registrant.
   This bill would allow the secretary to require the registrant to
submit its gross sales by commodity and acreage and to provide the
exact dollar amount of sales of $25,000,001 or more.
   This bill would also authorize the secretary to adopt regulations
that supersede the registration provisions applicable to persons
engaged in organic production, processing, and handling to the extent
reasonably necessary to provide an online system of registration.
   (8) Existing law requires the secretary to establish the
California Organic Products Advisory Committee to advise the
secretary regarding his or her responsibilities under the act. Under
existing law the committee is comprised of 15 members and allows the
members to have alternates. Existing law provides that 6 members and
their alternates must be producers, 2 processors, 2 consumer
representatives, 2 technical representatives, one wholesale
distributor, one environmental representative, and one retail
representative. Existing law provides that alternates at large may be
appointed as specified.
   This bill would delete the provisions regarding the appointment of
alternates at large.
   (9) Existing law imposes, until January 1, 2011, a $100 food
safety fee on every person who is engaged in the manufacture,
packing, or holding of processed food.
   This bill would extend that fee until January 1, 2016.
   (10) This bill would make certain conforming and technical
changes.
   (11) 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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 12841.4 of the Food and Agricultural Code is
amended to read:
   12841.4.  (a) Every registrant of any production agricultural- or
structural-use pesticide product sold for use in this state that is
packaged in rigid, nonrefillable, high-density polyethylene (HDPE)
containers of 55 gallons or less shall establish a recycling program,
or demonstrate participation in a recycling program to ensure HDPE
containers are recycled. Container recycling must comply with the
American National Standards Institute American Society of Agriculture
and Biological Engineers Standard S596, entitled Recycling Plastic
Containers from Pesticides and Pesticide-Related Products, as
published in February 2006. The records required by these standards
shall be maintained for three years and shall be subject to audit by
the director.
   (b) Any registrant who is required to establish or participate in
a recycling program pursuant to this section shall provide to the
director, at least annually, a document certifying that this
requirement has been met.
   (c) (1) The director may adopt regulations to carry out the
purposes of this section. Upon a federal pesticide container
recycling program being adopted, the director may adopt regulations
to conform to the federal program.
   (2) It is the intent of the Legislature in enacting this section
that any regulatory standards adopted by the department shall be at
least as stringent as those standards referred to in subdivision (a).

   (d) Commencing September 1, 2010, the department shall estimate a
recycling rate for pesticide containers and propose suggestions for
program improvements and post this information annually on its
Internet Web site.
  SEC. 2.  Section 19204 of the Food and Agricultural Code is amended
to read:
   19204.  "Collection center" means a receiving area for the
temporary storage of animal carcasses, packinghouse waste, or other
products before transportation to a licensed rendering plant or pet
food processor.
  SEC. 3.  Section 19220 of the Food and Agricultural Code is amended
to read:
   19220.  A license granted under this chapter shall expire on
December 31 of each year.
  SEC. 4.  Section 19312 of the Food and Agricultural Code is amended
to read:
   19312.  (a) Registration shall be made with the department and
shall include all of the following:
   (1) The applicant's name and address.
   (2) A description of the operations to be performed by the
applicant.
   (3) The vehicles to be used in the transportation.
   (4) A registration fee of one hundred dollars ($100).
   (5) A list of the names of the drivers employed by the transporter
who transport inedible kitchen grease subject to this article and
their drivers' license numbers.
   (6) Any other information that may be required by the department.
   (b) Any renderer or collection center that registers pursuant to
this article is not required to pay the fee prescribed in this
section.
   (c) The department may refuse to issue an original or renewal
registration certificate to any applicant for which the grounds
specified in subdivisions (a) to (e), inclusive, of Section 19314
exist.
   (d) (1) The applicant may appeal the decision of the department to
refuse to register the applicant.
   (2) The department shall establish procedures for the appeals
process, to include a noticed hearing.
   (3) The department may reverse a decision to refuse to register
the applicant, upon a finding of good cause to do so.
  SEC. 5.  Section 46003 of the Food and Agricultural Code is amended
to read:
   46003.  (a) The secretary shall establish an advisory committee,
which shall be known as the California Organic Products Advisory
Committee, for the purpose of advising the secretary with respect to
his or her responsibilities under this act and Article 7 (commencing
with Section 110810) of Chapter 5 of Part 5 of Division 104 of the
Health and Safety Code.
   (b) The advisory committee shall be comprised of 15 members. Each
member may have an alternate. Six members and their alternates shall
be producers, at least one of whom shall be a producer of meat, fowl,
fish, dairy products, or eggs. Two members and their alternates
shall be processors, one member and his or her alternate shall be
wholesale distributors, two members and their alternates shall be
consumer representatives, one member and his or her alternate shall
be environmental representatives, two members and their alternates
shall be technical representatives with scientific credentials
related to agricultural chemicals, toxicology, or food science, and
one member and his or her alternate shall be retail representatives.
Except for the consumer, environmental, and technical
representatives, the members of the advisory committee and their
alternates shall have derived a substantial portion of their business
income, wages, or salary as a result of services they provide which
directly result in the production, handling, processing, or retailing
of products sold as organic for at least three years preceding their
appointment to the advisory committee. The consumer and
environmental representatives and their alternates shall not have a
financial interest in the direct sales or marketing of the organic
product industry and shall be members or employees of representatives
of recognized nonprofit organizations whose principal purpose is the
protection of consumer health or protection of the environment. The
technical representatives and their alternates shall not have a
financial interest in the production, handling, processing, or
marketing of the organic products industry. The technical
representatives may be involved in organic research or technical
review providing they have no financial benefit from results of the
research project or technical review.
   (c) An alternate member shall serve at an advisory committee
meeting only in the absence of, and shall have the same powers and
duties as, the category whom he or she is representing as alternate,
except for duties and powers as an officer of the committee. The
number of alternates present who are not serving in the capacity of a
member shall not be considered in determining a quorum.
   (d) An alternate member may serve at an advisory committee
subcommittee meeting only in the absence of, and shall have the same
powers and duties as, the member whom he or she is designated as
alternate, except for duties and powers as a subcommittee
chairperson.
   (e) The members of the advisory committee and their alternates
described in subdivision (b) shall be reimbursed for the reasonable
expenses actually incurred in the performance of their duties, as
determined by the advisory committee and approved by the secretary.
   (f) The secretary or his or her representative, the State Public
Health Officer or his or her representative, and a county
agricultural commissioner may serve as ex officio members of the
advisory committee.
  SEC. 6.  Section 46004.1 of the Food and Agricultural Code is
amended to read:
   46004.1.  Unless defined pursuant to the National Organic Program
(NOP), the following words and phrases, when used in this act, shall
have the following meanings:
   (a) "Act" means this chapter. It also means the federal Organic
Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and the
regulations adopted pursuant to the federal Organic Foods Production
Act of 1990 (7 U.S.C. Sec. 6501 et seq.).
   (b) "Categorical products" means categories of products of like
commodity such as apples, salad products, etc. and does not require
variety specific information.
   (c) "Enforcement authority" means the governmental unit with
primary enforcement jurisdiction, as provided in Section 46008.
   (d) "Exempt handler" means a handling operation that sells
agricultural products as "organic" but whose gross agricultural
income from organic sales totals five thousand dollars ($5,000) or
less annually.
   (e) "Exempt producer" means a production operation that sells
agricultural products as "organic" but whose gross agricultural
income from organic sales totals five thousand dollars ($5,000) or
less annually.
   (f) "Handle" means to sell, process, or package agricultural
products.
   (g) "Handler" means any person engaged in the business of handling
agricultural products, but does not include final retailers of
agricultural products that do not process agricultural products.
   (h) "Handling operation" means any operation or portion of an
operation, except final retailers of agricultural products that do
not process agricultural products that (1) receives or otherwise
acquires agricultural products, and (2) processes, packages, or
stores agricultural products.
   (i) "NOP" means the National Organic Program established pursuant
to the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec.
6501 et seq.) and the regulations adopted for implementation.
   (j) "Person" means any individual, firm, partnership, trust,
corporation, limited liability company, company, estate, public or
private institution, association, organization, group, city, county,
city and county, political subdivision of this state, other
governmental agency within the state, and any representative, agent,
or agency of any of the foregoing.
   (k) "Processing" means cooking, baking, heating, drying, mixing,
grinding, churning, separating, extracting, cutting, fermenting,
eviscerating, preserving, dehydrating, freezing, or otherwise
manufacturing, and includes packaging, canning, jarring, or otherwise
enclosing food in a container.
   (l) "Secretary" means the Secretary of Food and Agriculture.
   (m) "USDA" means the United States Department of Agriculture.
  SEC. 7.  Section 46009 of the Food and Agricultural Code is amended
to read:
   46009.  Any person subject to this act that does not pay the
registration fee within 10 days of the date on which the fee is due
and payable shall pay a penalty of 10 percent of the total amount
determined to be due plus interest at the rate of 1.5 percent per
month on the unpaid balance.
  SEC. 8.  Section 46013 of the Food and Agricultural Code is amended
to read:
   46013.  Any producer, handler, processor, or registered
certification organization subject to this chapter that does not pay
the fee within 10 days of the date on which the fee is due and
payable shall pay a penalty of 10 percent of the total amount
determined to be due plus interest at the rate of 1.5 percent per
month on the unpaid balance.
  SEC. 9.  Section 46013.1 of the Food and Agricultural Code is
amended to read:
   46013.1.  (a) Every person engaged in this state in the production
or handling of raw agricultural products sold as organic, and
retailers that are engaged in the production of products sold as
organic, and retailers that are engaged in the processing, as defined
by the NOP, of products sold as organic, shall register with the
agricultural commissioner in the county of principal operation prior
to the first sale of the product. All processors of organic
agriculturally derived products that are not required to be
registered as outlined in subdivision (b) must register with the
secretary. Each registrant must annually renew the registration
unless no longer engaged in the activities requiring the
registration. Each registrant shall provide a complete copy of its
registration to the county agricultural commissioner in any county in
which the registrant operates.
   (b) Every person engaged in this state in the processing or
handling of processed products pursuant to Section 110460 of the
Health and Safety Code, and pet food pursuant to Section 18653, and
cosmetics pursuant to Section 111795 of the Health and Safety Code,
including processors of alcoholic beverages, fish and seafood, shall
register with the State Public Health Officer.
   (c) Registration pursuant to this section shall be on a form
either provided by the secretary or approved by the secretary and
shall be valid for a period of one calendar year from the date of
validation by the secretary or county agricultural commissioner of
the completed registration form.
   (d) The information provided on the registration form shall
include all of the following:
   (1) The nature of the registrant's business, including the
categorical products produced, handled, or processed that are sold as
organic and the names and registration numbers of those persons for
whom they sell product as applicable.
   (2) (A) For producers, a detailed physical description of the
precise location and dimensions of the facility or farm where the
products are produced.
   (B) For exempt producers, in addition to the physical description
specified in subparagraph (A), a map describing the boundaries and
dimensions of the production area and all adjacent land uses,
assigning field numbers to distinct fields or management units, and
describing the size of each field or management unit.
   (C) When the exempt producer or exempt handler has not had control
of the property being registered for at least 36 months,
documentation shall be provided from previous owners or managers that
shows the 36-month land use history. When the exempt producer or
exempt handler is not the owner, documentation shall be provided from
the owner granting permission for the parcel to be registered as
organic by the exempt producer or exempt handler.
   (3) Sufficient information, under penalty of perjury, to enable
the secretary or county agricultural commissioner to verify the
amount of the registration fee to be paid in accordance with this
act.
   (4) The names of all certification organizations or governmental
entities, if any, providing organic certification to them.
   (5) In the case of exempt producers, for each field or management
unit, a list of all substances applied to the crop, soil, growing
medium, growing area, irrigation water or postharvest wash or rinse
water, or seed, including the source of the substance, the brand
name, if any, the rate of application, and the total amount applied
in each calendar year, for at least the applicable time periods
specified in this act.
   (e) The registration form shall include a separate "public
information sheet" or its equivalent that shall include:
   (1) The name and address of the registrant.
   (2) The nature of the registrant's business, including the
categorical products produced, handled, or processed that are sold as
organic.
   (3) The names of all certification organizations or governmental
entities, if any, providing certification pursuant to the NOP and
this act.
   (f) A registration form shall be accompanied by payment of a
nonrefundable registration fee by producers, handlers, and
processors, which shall be based on gross sales by the registrant of
product sold as organic in the calendar year that precedes the date
of registration or, if no sales were made in the preceding year, then
based on the expected sales during the 12 calendar months following
the date of registration. Unless specified elsewhere the fee is based
according to the following schedule:
          Gross Sales                Registration Fee
$         0 -      4,999                 $        25
$     5,000 -     10,000                 $        50
$    10,001 -     25,000                 $        75
$    25,001 -     50,000                 $       100
$    50,001 -    100,000                 $       175
$   100,001 -    250,000                 $       300
$   250,001 -    500,000                 $       450
$   500,001 -  1,000,000                 $       750
$ 1,000,001 -  2,500,000                 $     1,000
$ 2,500,001 -  5,000,000                 $     1,500
$ 5,000,001 - 15,000,000                 $     2,000
$  15,000,001 25,000,000                 $     2,500
             -
$  25,000,001  and above                 $     3,000
             -


   (1) Any person required to register pursuant to this section whose
registration fee would be less than seventy-five dollars ($75) shall
pay an initial registration fee of seventy-five dollars ($75).
Thereafter, the amount of the annual fee shall be as specified above
or, according to the applicable classification, as described in
paragraphs (2) to (9), inclusive.
   (2) Any person selling a multi-ingredient product in which less
than 70 percent of the ingredients are organic shall pay a fee of one
hundred dollars ($100) or one-half of the amount that would be due
based on the above chart, whichever is more.
   (3) Producers that sell processed product shall pay fees based on
the value of raw product prior to being processed and the value of
any product sold as unprocessed.
   (4) Any person that packs, repacks, labels, sorts, or otherwise
handles any organic product that is outside the jurisdiction of the
State Public Health Officer and that does not take title or manage
the sale of the product, but provides only handling services for
organic product, shall register and pay one hundred dollars ($100)
per year.
   (5) Commission merchants or brokers that do not take possession or
title of the product but arrange for the sale of the product shall
register and pay one hundred dollars ($100) per year.
   (6) A retail store engaged in the handling or processing of
organic products shall register and pay a fee of one hundred dollars
($100) for each store location that processes organic products
onsite.
   (7) Any person that provides temporary storage or transportation
for organic product and does not handle the raw unpackaged product
does not have to register.
   (8) Any person that hires any other person for custom packing or
labeling shall register and pay a fee based on the total sales of
product custom produced for them as outlined in the chart above. In
addition to the required registration information above the person
must disclose on the registration form the names of all companies
that pack and process for them.
   (9) Any person required to register pursuant to this section that
fits the description of more than one of the persons described above
shall pay the greater of the multiple amounts.
   (10) The secretary may require any producer, handler, processor,
or other organic registrant to provide the exact dollar amount of
gross sales of twenty-five million one dollars ($25,000,001) or more
in lieu of the range specified in subdivision (f).
   (11) The secretary may require any producer, handler, processor,
or other organic registrant to submit gross sales by commodity and
gross sales by acreage.
   (g) The secretary may adopt regulations that supersede the terms
of this section to the extent reasonably necessary to provide an
online system of registration for those required to register pursuant
to this section.
  SEC. 10.  Section 46013.2 of the Food and Agricultural Code is
amended to read:
   46013.2.  (a) To the extent feasible, the secretary shall
coordinate the registration and fee collection procedures of this
section with similar licensing or registration procedures applicable
to registrants.
   (b) The secretary or county agricultural commissioner shall deny a
registration submission that is incomplete or not in compliance with
this act.
   (c) A registrant shall, within a reasonable time, notify the
secretary of any change in the information reported on the
registration form and shall pay any additional fee owed if that
change results in a higher fee owed than that previously paid.
   (d) At the request of any person, the "public information sheet"
described in subdivision (e) of Section 46013.1 for any registrant
shall be made available for inspection and copying at the main office
of the department and each county agricultural commissioner. Copies
of the "public information sheet" shall also be made available by
mail, upon written request. The secretary or county agricultural
commissioner may charge a reasonable fee for the cost of reproducing
a "public information sheet." Except as provided in this subdivision,
a registration form is exempt from Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code.
   (e) The secretary, in consultation with the California Organic
Products Advisory Committee, may suspend the registration program set
forth in this section if the secretary determines that income
derived from registration fees is insufficient to support a
registration enforcement program.
   (f) A registration is considered legal and valid until revoked,
suspended, or until the expiration of the registration.
   (g) The registration revocation process shall be in conjunction
with other provisions of this act. The secretary or county
agricultural commissioner's office may initiate the revocation
process for failure to comply with the NOP or this act. Any person
against whom the action is being taken shall have the opportunity to
appeal the action and be afforded the opportunity to be heard in an
administrative appeal. This appeal shall be administered by either
the state or county agricultural commissioner's office.
   (h) When the registration fee is not paid within 60 days from the
expiration date, the account shall be considered closed and the
registration voided. A notification shall be sent to the registrant
and the certifier, if applicable, notifying them the registrant is no
longer able to market products as organic until the account is paid
in full.
   (i) Any producer, handler, processor, or certification agency
subject to this chapter that does not pay the fee within 10 days of
the date on which the fee is due and payable shall pay a penalty of
10 percent of the total amount determined to be due plus interest at
the rate of 1.5 percent per month on the unpaid balance.
  SEC. 11.  Section 46014.1 of the Food and Agricultural Code is
amended to read:
   46014.1.  (a) Any certification organization that certifies
product in this state sold as organic shall register with the
secretary and shall thereafter annually renew the registration,
unless the organization is no longer engaged in the activities
requiring the registration. Registration shall be on a form provided
by the secretary, shall include a copy of accreditation by the USDA
or proof of application if applicable.
   (b) Each certification organization shall pay to the secretary an
annual registration fee of twenty-five dollars ($25) for each client
they have certified in this state up to a maximum of two hundred
fifty dollars ($250). Any registration submitted by a certification
organization shall be made available to the public for inspection and
copying. The secretary may audit the organization's certification
procedures and records at any time, but any records of the
certification organization not otherwise required to be disclosed
shall be kept confidential by the secretary.
   (c) The secretary and the county agricultural commissioners under
the supervision of the secretary shall, if requested by a sufficient
number of persons to cover the costs of the program in a county as
determined by the secretary, establish a certification program. This
program shall meet all of the requirements of this act. In addition,
this program shall meet all of the requirements of the federal
certification program, including federal accreditation. The secretary
shall establish a fee schedule for participants in this program that
covers all of the department's reasonable costs of the program. A
county agricultural commissioner that conducts a voluntary
certification program pursuant to this section shall establish a fee
schedule for participants in this program that covers all of the
county's reasonable costs of the program. The secretary may not
expend funds obtained from registration fees collected under this
chapter for the purposes of adopting or administering this program.
The certification fee authorized by this subdivision is due and
payable on January 1 or may be prorated before the 10th day of the
month following the month in which the decision to grant the
certification is issued. Any person who does not pay the amount that
is due within the required period shall pay the enforcement authority
providing the certificate a penalty of 10 percent of the total
amount determined to be due, plus interest at the rate of 1.5 percent
interest per month on the unpaid balance.
  SEC. 12.  Section 110485 of the Health and Safety Code is amended
to read:
   110485.  (a) Every person who is engaged in the manufacture,
packing, or holding of processed food in this state shall pay a food
safety fee of one hundred dollars ($100) to the department in
addition to any fees paid pursuant to Section 110470.
   (b) Revenue received pursuant to this section shall be deposited
in the Food Safety Fund created pursuant to Section 110050. A penalty
of 10 percent per month shall be added to any food safety fee not
paid when due.
   (c) Upon appropriation, the food safety fees deposited in the Food
Safety Fund shall be used by the department to assist in developing
and implementing education and training programs related to food
safety. These programs shall be developed in consultation with
representatives of the food processing industry. Implementation shall
include education and training in the prevention of microbial
contamination.
   (d) This section does not apply to companies exclusively involved
in flour milling, dried bean processing, or in the drying or milling
of rice, or to those individual registrants the director determines
should not be assessed because substantial economic hardship would
result to those registrants. For the purposes of this subdivision,
the substantial hardship exemption shall be extended only to
registrants whose wholesale gross annual income from the registered
business is twenty thousand dollars ($20,000) or less.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted on or before January 1, 2016, deletes or
extends that date.
  SEC. 13.  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.