BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: AB 1811 Hearing Date: 6/21/16 ----------------------------------------------------------------- |Author: |Dodd | |-----------+-----------------------------------------------------| |Version: |5/27/16 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- Subject: Fertilizer: organic input material: registration: inspections SUMMARY : This bill would authorize the California Department of Food and Agriculture (CDFA) to develop a new schedule for organic input material label registrations; authorize provisional label registrations, as specified; prioritize inspections for high-risk products and manufacturers; and authorize CDFA to determine whether a fertilizer material is mislabeled, as specified. BACKGROUND AND EXISTING LAW : The Fertilizing Materials Inspection Program within CDFA was created to ensure that fertilizer materials are safe and meet the quality and quantity as guaranteed on the product's label. This program is responsible for licensing manufacturers, reviewing and registering product labels, conducting inspections, and providing research and education regarding the safe use and handling of fertilizing material. Existing law: AB 1811 (Dodd) Page 2 of ? 1) Requires CDFA to enforce laws and adopt regulations relating to the manufacture, labeling, and distribution of fertilizing materials. 2) Defines "organic input material," or OIM, to mean any bulk or packaged commercial fertilizer, agricultural mineral, auxiliary soil and plant substance, specialty fertilizer, or soil amendment, excluding pesticides, that is used in organic crop and food production that complies with the National Organic Program standards. 3) Requires every manufacturer or distributor of fertilizing materials to obtain a license from CDFA. All licenses are renewed in January of each odd-numbered year and are valid for two years. 4) Requires fertilizing material label registration for each differing product, such as changes in the guaranteed analysis or derivation statement. All registrations are renewed in January of an even-numbered year and are valid for two years. 5) Establishes licensing and registration fees. 6) Authorizes CDFA to inspect OIM manufacturers at least once per year. 7) Authorizes CDFA to cancel an existing registration or refuse to register any fertilizer material which the secretary determines to be detrimental or harmful to plants, animals, public safety, or the environment, or for any product that contains false or misleading claims. 8) Authorizes CDFA to collect an assessment fee not to exceed $0.002 per dollar of sales of all fertilizing materials. 9) Authorizes CDFA to inspect, sample, and analyze fertilizing materials and to conduct investigations concerning the use, sale, adulteration, or misbranding of any substance. PROPOSED LAW : AB 1811 (Dodd) Page 3 of ? This bill: 1) Allows for a provisional registration of a label for organic input materials or fertilizers during the registration renewal process while labels are being corrected and reprinted. 2) Authorizes CDFA to develop a schedule for all label registrations and renewals, which shall be valid for two years. 3) Expands CDFA's authority to conduct inspections by removing the requirement that organic input material manufacturers be inspected annually during the registration process and, instead, requires CDFA to give priority to inspecting high-risk products and manufacturers. 4) Authorizes CDFA, rather than the National Organic Program, to approve third-party inspectors for out-of-state organic input material manufacturers. 5) Authorizes CDFA to grant a provisional registration for a maximum of six months for a registered product undergoing renewal. 6) Authorizes CDFA to make a determination whether or not a fertilizing material is being distributed under the name of another fertilizing material. ARGUMENTS IN SUPPORT: According to the author, "AB 1811 will conform the Department's inspections of OIM manufacturers to NOP while not limiting the Department's ability to inspect any OIM manufacturer on a discretionary basis, at the same time, providing increased fiscal equity between OIM and non-organic fertilizer programs. Further, AB 1811 will provide fertilizer manufacturers the ability to conduct business during their license renewal periods." COMMENTS : Need for this bill. This bill would address several concerns regarding organic input material fertilizers, such as changing registration renewal dates to ease workload on departmental AB 1811 (Dodd) Page 4 of ? staff, authorizing CDFA to inspect high-risk products and manufacturers more often, allowing manufacturers to sell product while the label is undergoing renewal, and authorizing CDFA to make a determination on an individual basis whether a fertilizing material requires a new label. Registration renewal schedule. Currently, all fertilizing materials must renew label registrations on the same day (January 1st of the odd-numbered year). In order to approve a label registration, CDFA must ensure that all claims, submitted data, and other information is valid. If scientific evaluation is required, a CDFA senior environmental scientist reviews the data, performs an environmental assessment, and consults with outside experts. After this process, the label may be approved. Given that all label registrations are due on the same date, this bill would allow CDFA to develop a new schedule to change registration renewal dates to ease workload on departmental staff. Inspections. Currently, CDFA is required to inspect every OIM manufacturer at least once per year. Given budget constraints, CDFA has had to use alternative, non-OIM sources of funding to complete this task. Suggestions to raise the fee structure on OIM manufacturers to fully cover this cost have been met with concerns that higher fees would be too burdensome for smaller OIM manufacturers. Therefore, this bill would authorize CDFA to, instead, inspect OIM manufacturers based on high-risk factors, such as nitrogen content, while reserving the ability for CDFA to inspect all OIM manufacturers as needed. Nitrogen is a highly valuable resource and, as such, is at risk for adulteration in fertilizing materials. In fact, the strict inspection requirements on OIM products are the result of an investigation that discovered an organic manufacturer illegally using non-organic/synthetic materials in an OIM product. If an OIM were adulterated with non-organic nitrogen, an organic producer unknowingly using this non-organic product would be at risk of losing organic certification. Furthermore, the federal USDA National Organic Program (NOP) requires that only OIM products with a 3% or greater nitrogen content be inspected. Thus, this bill conforms state law with NOP standards but maintains CDFA's discretion to inspect any OIM manufacturer. Is a new label necessary? Concerns have been raised by some organic fertilizer manufacturers that a new label is required for a product because the organic input material changed but did AB 1811 (Dodd) Page 5 of ? not change the N-P-K values for the final product. For instance, if chicken feathers are replaced by turkey feathers and the N-P-K values are consistent, should a new label be required? This bill would authorize CDFA to make determinations such as these on an individual basis. RELATED LEGISLATION : AB 2511 (Levine) of 2016. Would clarify that "biochar" is a soil amendment that is included in the definition of "auxiliary soil and plant substance" and therefore subject to licensing and labeling laws; and would define "biochar" to mean materials derived from thermochemical conversion of biomass in an oxygen-limited environment containing at least 60 percent carbon." Currently in the Senate Committee on Agriculture. AB 856 (Caballero), Chapter 257, Statutes of 2009. Establishes the organic input material manufacturers' licensure program, increases fees and penalties, and makes other various changes regarding fertilizer materials, inspections, and labeling. PRIOR ACTIONS : ------------------------------------------------------------------ |Assembly Floor: |79 - 0 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |20 - 0 | |--------------------------------------+---------------------------| |Assembly Agriculture Committee: | 9 - 0 | | | | ------------------------------------------------------------------ SUPPORT : California Certified Organic Farmers La Rocca Vineyards True Organic Fertilizers OPPOSITION : AB 1811 (Dodd) Page 6 of ? None received -- END --