BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                       CONSENT


          Bill No:  AB 1811
          Author:   Dodd (D)
          Amended:  5/27/16 in Senate
          Vote:     21  

           SENATE AGRICULTURE COMMITTEE:  5-0, 6/21/16
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  79-0, 4/21/16 (Consent) - See last page for  
            vote

           SUBJECT:   Fertilizer:  organic input material:  registration:   
                     inspections


          SOURCE:    Author

          DIGEST:  This bill authorizes the California Department of Food  
          and Agriculture (CDFA) to develop a new schedule for organic  
          input material label registrations; authorizes provisional label  
          registrations, as specified; prioritizes inspections for  
          high-risk products and manufacturers; and authorizes CDFA to  
          determine whether a fertilizer material is mislabeled, as  
          specified.


          ANALYSIS:  


          Existing law:


          1)Requires CDFA to enforce laws and adopt regulations relating  








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            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.










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          9)Authorizes CDFA to inspect, sample, and analyze fertilizing  
            materials and to conduct investigations concerning the use,  
            sale, adulteration, or misbranding of any substance.


          This bill:


          1)Allows for a provisional registration of a label for OIMs 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 OIM 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 OIM  
            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.


          Background









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          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.


          Comments


          Need for this bill.  This bill addresses several concerns  
          regarding OIM fertilizers, such as changing registration renewal  
          dates to ease workload on departmental 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 1 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 allows 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  








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          concerns that higher fees would be too burdensome for smaller  
          OIM manufacturers.  Therefore, this bill authorizes 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 OIM changed but did 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  
          authorizes CDFA to make determinations such as these on an  
          individual basis.


          CDFA regulations. CDFA has stated that they will pursue  
          regulations should this bill pass.  The regulations will include  
          dates and procedures for the new registration requirements,  
          provisional registration allowances during renewal, and what  
          products or entities are included as high risk products or  
          manufacturers of OIM.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  








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          Com.:YesLocal:   No


          SUPPORT:   (Verified8/2/16)


          California Certified Organic Farmers
          La Rocca Vineyards
          True Organic Fertilizers

          OPPOSITION:   (Verified8/2/16)


          None received

          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."
           

           ASSEMBLY FLOOR:  79-0, 4/21/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Rodriguez, Salas,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,  
            Waldron, Weber, Wilk, Williams, Wood, Rendon
           NO VOTE RECORDED: Ridley-Thomas











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          Prepared by:  Anne Megaro / AGRI. / (916) 651-1508
          8/3/16 19:22:37


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