Amended in Assembly April 26, 2016

Amended in Assembly April 21, 2016

Amended in Assembly April 5, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1826


Introduced by Assembly Member Mark Stone

February 8, 2016


An act to amend Sections 46000, 46001, 46002, 46003, 46004.1, 46007, 46010.5, 46012, 46013.1, 46013.2, 46014.1, 46014.2, 46014.4, 46014.6,begin insert 46016.4,end insert 46016.5, 46021, and 46028 of, and to add Section 46003.2 to, the Food and Agricultural Code, relating to organic products.

LEGISLATIVE COUNSEL’S DIGEST

AB 1826, as amended, Mark Stone. Organic products.

Existing law, the California Organic Products Act of 2003 (the act), requires the Secretary of Food and Agriculture, county agricultural commissioners, and the Director of the State Department of Public Health to enforce state and federal laws governing the production, labeling, and marketing of organic products, asbegin delete specified.Existingend deletebegin insert specified. Existingend insert federal law establishes the National Organic Program which requires operations that produce or handle organic agricultural products to comply with federal organic standards and be certified by a certifying agent, as specified.

This bill would revise and recast the California Organic Products Act of 2003 as the California Organic Food and Farming Act and would set forth the purposes of the act.

Existing law establishes the California Organic Products Advisory Committee, comprised of 15 members, to advise the secretary on his or her responsibilities under the act.

The bill would revise the composition of the advisory committee and would expand the scope of the advisory committee’s duties to include advising the secretary on education, outreach, and technical assistance for producers. The bill would authorize the secretary, in consultation with the advisory committee, to establish procedures for and conduct certain activities, including providing technical assistance, education, outreach, and guidance to the organic industry. The bill would specify that penalties collected by the secretary and fees collected by county agricultural commissioners pursuant to the act’s provisions shall be expended to fulfill the responsibilities authorized under the act, and would exempt from the Administrative Procedure Act the adoption, amendment, or repeal of a registration fee.

Existing law requires every person engaged in the state in the production or handling of raw agricultural products sold as organic to register with the county agricultural commissioner and specifies the information required on the registration form.

This bill would require those persons to instead register with thebegin delete Departmentend deletebegin insert Secretaryend insert of Food and Agriculture, would revise the registration fees required to be paid by certain registrants, and would revise the information required on the registration form. The bill would also revise the type of information and records that persons who produce, handle, or retail products sold as organic are required to keep or make available.

The bill would define certain terms for purposes of the act’s provisions and would make technical and conforming changes to various code sections. To the extent the bill would impose additional duties on county agricultural commissioners, the bill would impose a state-mandated local program.

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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

The Legislature finds and declares both of the
2following:

3(a) The state organic program was first established under the
4California Organic Products Act of 1990 and amended in the
5California Organic Products Act of 2003. The state organic
6program was developed before and during the development of
7federal organic standards. Today, a robust federal organic
8certification and enforcement program exists.

9(b) The purpose of amending the existing law governing the
10state organic program is to reform fees and paperwork and to create
11a framework whereby state organic program enforcement activities
12 are designed to supplement National Organic Program-funded
13enforcement in California.

14

SEC. 2.  

Section 46000 of the Food and Agricultural Code is
15amended to read:

16

46000.  

(a) This chapter and Article 7 (commencing with
17Section 110810) of Chapter 5 of Part 5 of Division 104 of the
18Health and Safety Code shall be known and may be cited as the
19California Organic Food and Farming Act.

20(b) The secretary and county agricultural commissioners under
21the supervision and direction of the secretary shall enforce
22regulations adopted by the National Organic Program (NOP)
23(Section 6517 of the federal Organic Foods Production Act of 1990
24(7 U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing with
25Section 110810) of Chapter 5 of Part 5 of Division 104 of the
26Health and Safety Code and this act applicable to any person selling
27products as organic.

28

SEC. 3.  

Section 46001 of the Food and Agricultural Code is
29amended to read:

30

46001.  

This chapter shall be interpreted in conjunction with
31Article 7 (commencing with Section 110810) of Chapter 5 of Part
325 of Division 104 of the Health and Safety Code and regulations
33adopted by the National Organic Program (Section 6517 of the
34federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501
35et seq.)).

36

SEC. 4.  

Section 46002 of the Food and Agricultural Code is
37amended to read:

P4    1

46002.  

(a) All organic food or product regulations and any
2amendments to those regulations adopted pursuant to the federal
3Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et
4seq.), that are in effect on the date this bill is enacted or that are
5adopted after that date, shall be the organic food and product
6regulations of this state.

7(b) The secretary may, by regulation, prescribe conditions under
8which organic foods or other products not addressed by the
9National Organic Program may be sold in this state.

10(c) The purpose of the act shall be to do all of the following:

11(1) Promote coordination of federal, state, and local agencies
12in implementing the National Organic Program.

13(2) Expand, improve, and protect the production of organic
14products.

15(3) Provide technical assistance, education, outreach, and
16guidance to the organic industry.

17(d) The secretary may receive and expend state and federal
18funds for activities authorized under this act.

19

SEC. 5.  

Section 46003 of the Food and Agricultural Code is
20amended to read:

21

46003.  

(a) The secretary shall establish an advisory committee,
22which shall be known as the California Organic Products Advisory
23Committee, for the purpose of advising the secretary with respect
24to his or her responsibilities under this act.

25(b) The advisory committee shall advise the secretary on
26education, outreach, and technical assistance for producers.

27(c) The advisory committee shall be comprised of 15 members.
28Each member may have an alternate. Six members and their
29alternates shall be producers, at least one of whom shall be a
30producer of meat, fowl, fish, dairy products, or eggs. Two members
31and their alternates shall be processors, one member and his or her
32alternate shall be wholesale distributors, one member and his or
33her alternate shall be representatives of an accredited certifying
34agency operating in the state, one member and his or her alternate
35shall be consumer representatives, one member and his or her
36alternate shall be environmental representatives, two members and
37their alternates shall be technical representatives with scientific
38credentials related to agricultural chemicals, toxicology, or food
39science, and one member and his or her alternate shall be retail
40representatives. Except for the consumer, environmental, and
P5    1technical representatives, the members of the advisory committee
2and their alternates shall have derived a substantial portion of their
3business income, wages, or salary as a result of services they
4provide that directly result in the production, handling, processing,
5or retailing of products sold as organic for at least three years
6preceding their appointment to the advisory committee. The
7consumer and environmental representatives and their alternates
8shall not have a financial interest in the direct sales or marketing
9of the organic product industry and shall be members or employees
10of representatives of recognized nonprofit organizations whose
11principal purpose is the protection of consumer health or protection
12of the environment. The technical representatives and their
13alternates shall not have a financial interest in the production,
14handling, processing, or marketing of the organic products industry.
15The technical representatives may be involved in organic research
16or technical review providing they have no financial benefit from
17results of the research project or technical review.

18(d) An alternate member shall serve at an advisory committee
19meeting only in the absence of, and shall have the same powers
20and duties as, the category whom he or she is representing as
21alternate, except for duties and powers as an officer of the
22committee. The number of alternates present who are not serving
23in the capacity of a member shall not be considered in determining
24a quorum.

25(e) An alternate member may serve at an advisory committee
26subcommittee meeting only in the absence of, and shall have the
27same powers and duties as, the member whom he or she is
28designated as alternate, except for duties and powers as a
29subcommittee chairperson.

30(f) The members of the advisory committee and their alternates
31shall be reimbursed for the reasonable expenses actually incurred
32in the performance of their duties, as determined by the advisory
33committee and approved by the secretary.

34(g) The secretary or his or her representative, the State Public
35Health Officer or his or her representative, and a county agricultural
36commissioner may serve as ex officio members of the advisory
37committee.

38

SEC. 6.  

Section 46003.2 is added to the Food and Agricultural
39Code
, to read:

P6    1

46003.2.  

(a) To the extent that funds are available, the
2secretary, in consultation with the California Organic Products
3Advisory Committee, may establish procedures for and conduct
4all of the following activities:

5(1) Receive and investigate complaints filed by any person
6concerning suspected acts of noncompliance with this act or federal
7organic standards.

8(2) Conduct periodic spot inspections.

9(3) Conduct periodic prohibited substance testing on products
10labeled as organic.

11(4) Conduct farmers’ market inspections.

12(5) Expand, improve, and protect the production of organic
13products.

14(6) Assist operations in achieving organic certification, including
15transition to organic.

16(7) Provide technical assistance, education, outreach, and
17guidance to the organic industry.

18(8) Reimbursement of investigation, enforcement, and market
19surveillance expenses, including expenses incurred by any county
20agricultural commissioner for actions conducted pursuant to this
21chapter.

22(9) Conduct hearings, appeals, mediation, or settlement
23conferences from actions taken to enforce this chapter.

24(b) Investigation, inspection, and prohibited material testing
25reports shall be forwarded to the secretary for any required
26enforcement action.

27(c) The secretary shall coordinate activities authorized under
28this section with other county and state licensing, registration,
29inspection, and fee collection procedures applicable to registrants.

30

SEC. 7.  

Section 46004.1 of the Food and Agricultural Code is
31amended to read:

32

46004.1.  

Unless defined pursuant to the National Organic
33Program (NOP), the following words and phrases, when used in
34this act, shall have the following meanings:

35(a) “Accredited certification agency” means an entity accredited
36by the United States Department of Agriculture to certify
37operations as compliant with the federal organic standards.

38(b) “Act” means the California Organic Food and Farming Act.
39It also means the federal Organic Foods Production Act of 1990
40(7 U.S.C. Sec. 6501 et seq.) and the regulations adopted pursuant
P7    1to the federal Organic Foods Production Act of 1990 (7 U.S.C.
2Sec. 6501 et seq.).

3(c) “Categorical products” means categories of products of like
4commodity such as apples, salad products, etc. and does not require
5variety specific information.

6(d) “Certified operation” means a producer, handler, or retail
7food establishment that is certified organic by an accredited
8certification agency as authorized by the federal Organic Foods
9Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and
10implemented pursuant to the National Organic Program.

11(e) “Data” means the information provided annually by persons
12registered under the act, including certified organic acreage and
13gross sales of certified organic products.

14(f) “Department” means the State Department of Public Health.

15(g) “Director” means the director and State Public Health Officer
16for the State Department of Public Health.

17(h) “Enforcement authority” means the governmental unit with
18primary enforcement jurisdiction, as provided in Section 46008.

19(i) “Exempt handler” means a handling operation that sells
20agricultural products as “organic” but whose gross agricultural
21income from organic sales totals five thousand dollars ($5,000) or
22less annually.

23(j) “Exempt operation” means a production or handling operation
24that sells agricultural products but is exempt from certification
25under federal organic standards.

26(k) “Exempt producer” means a production operation that sells
27agricultural products as “organic” but whose gross agricultural
28income from organic sales totals five thousand dollars ($5,000) or
29less annually.

30(l) “Federal organic standards” means the federal regulations
31governing production, labeling, and marketing of organic products
32as authorized by the federal Organic Foods Production Act of 1990
33(7 U.S.C. Sec. 6501 et seq.) and implemented pursuant to the
34National Organic Program (7 C.F.R. Sec. 205 et seq.), and any
35amendments to the federal act or regulations made subsequent to
36the enactment of this chapter.

37(m) “Handle” means to sell, process, or package agricultural
38products.

P8    1(n) “Handler” means any person engaged in the business of
2handling agricultural products, but does not include final retailers
3of agricultural products that do not process agricultural products.

4(o) “Handling operation” means any operation or portion of an
5operation, except final retailers of agricultural products that do not
6process agricultural products that (1) receives or otherwise acquires
7agricultural products, and (2) processes, packages, or stores
8agricultural products.

9(p) “Inspection” means the act of examining and evaluating
10production or handling operation to determine compliance with
11state and federal law.

12(q) “National Organic Program” or “NOP” means the National
13Organic Program established pursuant to the federal Organic Foods
14Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and the
15regulations adopted for implementation.

16(r) “Person” means any individual, firm, partnership, trust,
17corporation, limited liability company, company, estate, public or
18private institution, association, organization, group, city, county,
19city and county, political subdivision of this state, other
20governmental agency within the state, and any representative,
21agent, or agency of any of the foregoing.

22(s) “Processing” means cooking, baking, heating, drying, mixing,
23grinding, churning, separating, extracting, cutting, fermenting,
24eviscerating, preserving, dehydrating, freezing, or otherwise
25manufacturing, and includes packaging, canning, jarring, or
26otherwise enclosing food in a container.

27(t) “Producer” means a person who engages in the business of
28growing or producing food, fiber, feed, and other agricultural-based
29consumer products.

30(u) “Prohibited substance” means a substance the use of which
31in any aspect of organic production or handling is prohibited or
32not provided for in state or federal law.

33(v) “Residue testing” means an official or validated analytical
34procedure that detects, identifies, and measures the presence of
35chemical substances, their metabolites, or degradation products in
36or on raw or processed agricultural products.

37(w) “Retail food establishment” means a restaurant, delicatessen,
38bakery, grocery store, or any retail outlet with an in-store restaurant,
39delicatessen, bakery, salad bar, or other eat-in or carry-out service
40of processed or prepared raw and ready-to-eat-food.

P9    1(x) “Secretary” means the Secretary of Food and Agriculture.

2(y) “State Organic Program” or “SOP” means a state program
3that meets the requirements of Section 6506 of the federal Organic
4Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.), is
5approved by the Secretary of the United States Department of
6Agriculture, and is designed to ensure that a product that is sold
7or labeled as organically produced under the federal Organic Foods
8Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) is produced
9and handled using organic methods.

10(z) “USDA” means the United States Department of Agriculture.

11

SEC. 8.  

Section 46007 of the Food and Agricultural Code is
12amended to read:

13

46007.  

(a) Any penalties collected by the secretary and any
14fees collected by a county agricultural commissioner pursuant to
15this chapter shall be deposited in the Department of Food and
16Agriculture Fund and, upon appropriation by the Legislature, shall
17be expended solely to fulfill the responsibilities authorized under
18this chapter.

19(b) Any fees and penalties collected by a county agricultural
20 commissioner pursuant to Section 46017 and any other penalties
21collected by a county agricultural commissioner pursuant to this
22chapter shall be paid directly to the county agricultural
23commissioner and expended to fulfill the responsibilities of the
24county agricultural commissioner, as specified in this chapter.

25(c) The secretary shall establish a specific minimum amount to
26be reimbursed to each county agricultural commissioner per
27registrant in that county. This reimbursement shall not limit the
28amount of the reimbursement otherwise made to county
29commissioners for their enforcement activities.

30

SEC. 9.  

Section 46010.5 of the Food and Agricultural Code is
31amended to read:

32

46010.5.  

(a) No fee established and collected pursuant to this
33chapter shall exceed thebegin delete department’send deletebegin insert secretary’send insert costs or the
34county agricultural commissioner’s costs, as the case may be, of
35regulating and enforcing the provisions of this chapter related to
36the function for which the fee is established.

37(b) The fees established and collected pursuant to this chapter
38may be expended, under the advisement of the California Organic
39Products Advisory Committee, for activities authorized under this
40chapter, including assisting operations in achieving certification,
P10   1conducting education and outreach, entering research and
2development partnerships, and addressing production or marketing
3obstacles to the growth of the organic sector.

4

SEC. 10.  

Section 46012 of the Food and Agricultural Code is
5amended to read:

6

46012.  

Article 14 (commencing with Section 43031) of Chapter
72 applies to any food product that is represented as organically
8produced by any person who is not registered as required by this
9chapter or any product that is not in compliance with this chapter
10or Article 7 (commencing with Section 110810) of Chapter 5 of
11Part 5 of Division 104 of the Health and Safety Code. The
12secretary, agricultural commissioners, and the director shall be
13considered enforcing officers for purposes of those provisions of
14law under their respective jurisdiction.

15

SEC. 11.  

Section 46013.1 of the Food and Agricultural Code
16 is amended to read:

17

46013.1.  

(a) Every person engaged in this state in the
18production or handling of raw agricultural products sold as organic
19shall register with thebegin delete departmentend deletebegin insert secretaryend insert before the first sale of
20the product. All processors of organic agriculturally derived
21products that are not required to be registered as outlined in
22subdivision (b) shall register with the secretary. Each registrant
23shall annually renew the registration with thebegin delete departmentend deletebegin insert secretaryend insert
24 unless no longer engaged in the activities requiring the registration.

25(b) Every person engaged in this state in the processing or
26handling of processed products pursuant to Section 110460 of the
27Health and Safety Code, and pet food pursuant to Section 18653,
28and cosmetics pursuant to Section 111795 of the Health and Safety
29Code, including processors of alcoholic beverages, fish and
30seafood, shall register with the State Public Health Officer.

31(c) Registration pursuant to this section shall be on a form either
32provided by the secretary or approved by the secretary and shall
33be valid for a period of one calendar year from the date of
34validation by the secretary or county agricultural commissioner
35of the completed registration form.

36(d) The information provided on the registration form shall
37include all of the following:

38(1) The nature of the registrant’s business, including the
39categorical products produced, handled, or processed that are sold
P11   1as organic. For the purposes of registration, organic products shall
2be categorized as follows:

3(A) Citrus.

4(B) Fruit and vegetable row crops.

5(C) Livestock and dairy.

6(D) Stone fruit.

7(E) Tree fruit.

8(F) Tree nuts.

9(G) Other, which includes, but is not limited to, organic fallow
10ground, herbs and mushrooms, cut flowers, nursery, and apiaries.

11(2) The address or assessor’s parcel number of the precise
12location or locations where the products are produced, processed,
13or handled.

14(3) Sufficient information, under penalty of perjury, to enable
15the secretary to verify the amount of the registration fee to be paid
16in accordance with this act.

17(4) The names of all certification organizations or governmental
18entities, if any, providing organic certification to them.

19(e) (1) A registration form shall be accompanied by payment
20of a nonrefundable registration fee by producers, handlers, and
21processors, which shall be based on total gross sales by the
22registrant of product sold as organic in the calendar year that
23precedes the date of registration or, if no sales were made in the
24preceding year, then based on the expected sales during the 12
25calendar months following the date ofbegin delete registration.end deletebegin insert registration in
26accordance with the following fee schedule.end insert
The secretary, in
27consultation with the California Organic Products Advisory
28Committee,begin delete shall establish the registration fee not to exceed the
29amounts specified in the following schedule:end delete
begin insert may lower the
30amounts specified in the following fee schedule by regulation.end insert


31

 

 

  Gross Sales

Registration Fee

$

0 -

4,999

$

25

$

5,000 -

10,000

$

50

$

10,001 -

50,000

$

75

$

50,001 -

250,000

$

100

$

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

P12   4

 

5(2) Producers that sell processed product shall pay fees based
6on the value of raw product before being processed and the value
7of any product sold as unprocessed.

8(3) Any person that packs, repacks, labels, sorts, or otherwise
9handles any organic product that is outside the jurisdiction of the
10State Public Health Officer and that does not take title or manage
11the sale of the product, but provides only handling services for
12organic product, shall register and pay one hundred dollars ($100)
13per year.

14(4) Any person that provides temporary storage or transportation
15for organic product and does not handle the raw unpackaged
16product does not have to register.

17(5) Any person required to register pursuant to this section that
18fits the description of more than one of the persons described above
19 shall pay the greater of the multiple amounts.

20(6) The secretary may require any producer, handler, processor,
21or other organic registrant to provide the exact dollar amount of
22gross sales of twenty-five million one dollars ($25,000,001) or
23more in lieu of the range specified in paragraph (1).

24(f) The secretary may adopt regulations that supersede the terms
25of this section to the extent reasonably necessary to provide an
26online system of registration for those required to register pursuant
27to this section.

28(g) The adoption, amendment, or repeal of any fee pursuant to
29this section shall not be subject to the requirements of Chapter 3.5
30(commencing with Section 11340) of Part 1 of Division 3 of Title
312 of the Government Code. An order to adopt, amend, or repeal
32the regulations concerning assessment rates pursuant to this section
33shall be transmitted within 30 days by the secretary to the Office
34of Administrative Law. The Office of Administrative Law shall
35file the order promptly with the Secretary of State without further
36review pursuant to Article 6 (commencing with Section 11349) of
37Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government
38Code. The order shall do all of the following:

39(1) Indicate that the regulations are being adopted, amended,
40or repealed pursuant to this chapter.

P13   1(2) State that the order is being transmitted for filing.

2(3) Request that the Office of Administrative Law publish a
3notice of the filing of the order and print an appropriate reference
4in Title 3 of the California Code of Regulations.

5

SEC. 12.  

Section 46013.2 of the Food and Agricultural Code
6 is amended to read:

7

46013.2.  

(a) To the extent feasible, the secretary, in
8consultation with the director, shall coordinate the registration and
9annual fee collection procedures of this section with similar
10licensing or registration procedures applicable to registrants.

11(b) The secretary or county agricultural commissioner shall
12deny a registration submission that is incomplete or not in
13compliance with this act.

14(c) A registrant shall, within a reasonable time, notify the
15secretary of any change in the information reported on the
16registration form and shall pay any additional fee owed if that
17change results in a higher fee owed than that previously paid.

18(d) (1) At the request of any person, thebegin delete departmentend deletebegin insert secretaryend insert
19 or county agricultural commissioner shall provide the following:

20(A) The name and address of the registrant.

21(B) The nature of the registrant’s business.

22(C) The names of all certification organizations or governmental
23entities, if any, providing certification pursuant to the NOP and
24this act.

25(2) The secretary or county agricultural commissioner may
26charge a reasonable fee for the cost of reproducing this information.
27Except as provided in this subdivision, a registration form is
28exempt from Chapter 3.5 (commencing with Section 6250) of
29Division 7 of Title 1 of the Government Code.

30(e) The secretary, in consultation with the California Organic
31Products Advisory Committee, may suspend the registration
32program set forth in this section if the secretary determines that
33income derived from registration fees is insufficient to support a
34registration enforcement program.

35(f) A registration is considered legal and valid until revoked,
36suspended, or until the expiration of the registration.

37(g) The registration revocation process shall be in conjunction
38with other provisions of this act. The secretary or county
39agricultural commissioner’s office may initiate the revocation
40process for failure to comply with the NOP or this act. Any person
P14   1against whom the action is being taken shall have the opportunity
2to appeal the action and be afforded the opportunity to be heard
3in an administrative appeal. This appeal shall be administered by
4either the state or county agricultural commissioner’s office.

5(h) When the registration fee is not paid within 60 days from
6the expiration date, the account shall be considered closed and the
7registration voided. A notification shall be sent to the registrant
8and the certifier, if applicable, notifying them the registrant is no
9longer able to market products as organic until the account is paid
10in full.

11(i) Any producer, handler, processor, or certification agency
12subject to this chapter that does not pay the fee within 10 days of
13the date on which the fee is due and payable shall pay a penalty
14of 10 percent of the total amount determined to be due plus interest
15at the rate of 1.5 percent per month on the unpaid balance.

16

SEC. 13.  

Section 46014.1 of the Food and Agricultural Code
17 is amended to read:

18

46014.1.  

(a) Any certification agency that certifies product in
19this state sold as organic shall register with the secretary and shall
20thereafter annually renew the registration, unless the organization
21is no longer engaged in the activities requiring the registration.
22Registration shall be on a form provided by the secretary, shall
23include a copy of accreditation by the USDA or proof of
24application if applicable. The secretary, in consultation with the
25California Organic Products Advisory Committee, shall establish
26a registration fee not to exceed five hundred dollars ($500) annually
27for certifying agencies operating within the state.

28(b) Each certification agency shall pay to the secretary an annual
29registration fee of twenty-five dollars ($25) for each client they
30have certified in this state up to a maximum of two hundred fifty
31dollars ($250). Any registration submitted by a certification agency
32shall be made available to the public for inspection and copying.
33The secretary may audit the agency’s certification procedures and
34records at any time, but any records of the certification agency not
35otherwise required to be disclosed shall be kept confidential by
36the secretary.

37(c) An accredited certifying agency may submit an annual
38registration fee and application on behalf of their client provided
39that all of the information required under Section 46013.1 is
P15   1included when remitting applicable fees to thebegin delete department.end delete
2
begin insert secretary.end insert

3(d) The secretary and the county agricultural commissioners
4under the supervision of the secretary shall, if requested by a
5sufficient number of persons to cover the costs of the program in
6a county as determined by the secretary, establish a certification
7program. This program shall meet all of the requirements of this
8act. In addition, this program shall meet all of the requirements of
9the federal certification program, including federal accreditation.
10The secretary shall establish a fee schedule for participants in this
11program that covers all of thebegin delete department’send deletebegin insert secretary’send insert reasonable
12costs of the program. A county agricultural commissioner that
13conducts a voluntary certification program pursuant to this section
14shall establish a fee schedule for participants in this program that
15covers all of the county’s reasonable costs of the program. The
16secretarybegin delete mayend deletebegin insert shallend insert not expend funds obtained from registration
17fees collected under this chapter for the purposes of adopting or
18administering this program. The certification fee authorized by
19this subdivision is due and payable on January 1 or may be prorated
20before the 10th day of the month following the month in which
21the decision to grant the certification is issued. Any person who
22does not pay the amount that is due within the required period shall
23pay the enforcement authority providing the certificate a penalty
24of 10 percent of the total amount determined to be due, plus interest
25at the rate of 1.5 percent interest per month on the unpaid balance.

26(e) Notwithstanding any other law, any certification agency that
27certifies product in this state sold as organic shall immediately
28make the following records available for inspection by, and shall
29upon request withinbegin delete 72 hoursend deletebegin insert three business daysend insert of the request
30provide a copy to, the secretary or county agricultural
31commissioner:

32(1) Records obtained from applicants for certification and
33certified operations.

34(2) Records created by the certifying agent regarding applicants
35for certification and certified operations.

36(3) Any record required to be kept under the National Organic
37Program (Section 6517 of the federal Organic Foods Production
38Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and 7 C.F.R. 205 et seq.),
39Article 7 (commencing with Section 110810) of Chapter 5 of Part
P16   15 of Division 104 of the Health and Safety Code, and this act
2applicable to any person selling products as organic.

3(f) Records acquired pursuant to this section shall not be public
4records as that term is defined in Section 6252 of the Government
5Code and shall not be subject to Chapter 3.5 (commencing with
6Section 6250) of Division 7 of Title 1 of the Government Code.

7

SEC. 14.  

Section 46014.2 of the Food and Agricultural Code
8 is amended to read:

9

46014.2.  

(a) All products sold as organic in California shall
10be certified by an accredited certifying agent if they are required
11to be certified under the federal act.

12(b) Product shall be sold as organic only in accordance with this
13act.

14(c) A certification agency shall be accredited by the USDA as
15provided in the NOP.

16

SEC. 15.  

Section 46014.4 of the Food and Agricultural Code
17 is amended to read:

18

46014.4.  

A registered certification agency shall submit to the
19secretary every January and June a list of all persons whose
20production or processing of product in California is certified. The
21list shall be publicly available within 30 days after the end of each
22filing period. A certifier that keeps a current list onbegin delete aend deletebegin insert an Internetend insert
23 Web site available to the public may be deemed to meet this
24requirement.

25

SEC. 16.  

Section 46014.6 of the Food and Agricultural Code
26 is amended to read:

27

46014.6.  

Only products that have been produced and handled
28in accordance with this act may be certified by a registered
29certification agency.

30begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 46016.4 of the end insertbegin insertFood and Agricultural Codeend insert
31
begin insert is amended to read:end insert

32

46016.4.  

The appeal shall be submitted to the secretary in
33writing within 30 days of the date the action, or the letter proposing
34the action. The secretary’s proceeding shall, insofar as practicable,
35comply with the provisions of the Administrative Procedure Act,
36Chapter 5 (commencing with Section 11500) of Part 1 of Division
373 of Title 2 of the Government Code, except that abegin delete departmentend delete
38begin insert Department of Food and Agricultureend insert hearing officer may be used.

P17   1

begin deleteSEC. 17.end delete
2
begin insertSEC. 18.end insert  

Section 46016.5 of the Food and Agricultural Code
3 is amended to read:

4

46016.5.  

As provided for in regulations adopted by the NOP,
5the action proposed by a NOP accredited certification agency
6against a client may be appealed to the secretary for mediation.

7

begin deleteSEC. 18.end delete
8
begin insertSEC. 19.end insert  

Section 46021 of the Food and Agricultural Code is
9amended to read:

10

46021.  

(a) It is unlawful for any person to certify any product
11in violation of this act.

12(b) It is unlawful for any person to certify a product or company
13as organic unless duly registered as a certification agency pursuant
14to this act.

15(c) It is unlawful for any person to willfully make a false
16statement or representation, or knowingly fail to disclose a fact
17required to be disclosed, in registration for a certification agency
18pursuant to this act.

19

begin deleteSEC. 19.end delete
20
begin insertSEC. 20.end insert  

Section 46028 of the Food and Agricultural Code is
21amended to read:

22

46028.  

All persons who produce, handle, or retail products that
23are sold as organic shall keep accurate and specific records as
24required by the secretary in consultation with the California
25Organic Products Advisory Committee.

26

begin deleteSEC. 20.end delete
27
begin insertSEC. 21.end insert  

If the Commission on State Mandates determines that
28this act contains costs mandated by the state, reimbursement to
29local agencies and school districts for those costs shall be made
30pursuant to Part 7 (commencing with Section 17500) of Division
314 of Title 2 of the Government Code.



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