BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 1811         Hearing Date: 6/21/16
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          |Author:    |Dodd                                                 |
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          |Version:   |5/27/16                                              |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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           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  :
                         
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          |Assembly Floor:                       |79 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Appropriations Committee:    |20 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Agriculture Committee:       |  9 - 0                    |
          |                                      |                           |
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           SUPPORT  :
          
          California Certified Organic Farmers
          La Rocca Vineyards
          True Organic Fertilizers


           OPPOSITION  :







          AB 1811 (Dodd)                                      Page 6 of ?
          
          
          None received

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