BILL ANALYSIS Ó
AB 1811
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Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1811 (Dodd) - As Amended February 25, 2016
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|Policy | Agriculture |Vote:| 9 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill modifies the requirements for the inspection of
organic input materials. In summary, this bill:
1)Removes the requirement that the California Department of Food
and Agriculture (CDFA) inspect organic input material
manufacturers at least once a year.
AB 1811
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2)Repeals the provision that CDFA can only perform site
inspections of organic input materials during the registration
process.
3)Authorizes CDFA to accept inspection records obtained by a
contracted third party organization for any Organic Input
Materials (OIM) manufacturer.
FISCAL EFFECT:
Potential ongoing annual costs savings in the range of $750,000
to the OIM Program. These costs savings assume that CDFA uses
the regulatory flexibility established in this bill to focus on
high-risk organic products.
COMMENTS
1)Background. The OIM program is an industry-funded program that
is part of the Fertilizing Material Inspection Program (FMIP).
The Program was created in 2004 in the aftermath of a CDFA
investigation of a manufacturer who falsely labeled its
fertilizer as organic. Following this incident, consumers and
the organic industry strived for better regulatory oversight
on behalf of CDFA.
Existing law requires that OIM manufacturers be inspected
annually and as part of the registration process, and allows
for out-of-state manufacturers to be inspected by recognized
third parties. However, the program is not currently being
covered by the registration fees that it collects from OIM
manufacturers. In 2014-15, total Program expenditures were
$860,200, while revenues were just $365,700. One reason for
AB 1811
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this deficit is the requirement that the OIM Program inspect
each manufacturer every year, combined with the rising
popularity of organic products and the growing number of
required inspections.
2)High-risk products. High-risk firms are typically those that
produce liquid high-nitrogen projects (greater than 3%
nitrogen).
3)Purpose. AB 1811 is intended to make the OIM Program more cost
effective. According to the author, CDFA lacks flexibility to
target inspections based on need, and the growing popularity
of organic foods has meant the program's requirement to
inspect all manufacturers annually has led growing costs
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081