Amended in Senate June 30, 2016

Amended in Senate June 15, 2016

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, 46016.4, 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, as specified. Existing 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 supporting organic agriculture through education, outreach, and other programmatic activities. 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.begin insert Existing law requires a certification organization that certifies product in the state as organic to register with the secretary and to pay an annual registration fee based on the number of clients the organization has certified, up to a maximum of $250.end insert

This bill would require those persons to instead register with thebegin delete Secretary of Food and Agriculture,end deletebegin insert secretary,end insert 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.begin insert The bill would increase the maximum annual registration fee for certification agencies from $250 to $500.end insert

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 declaresbegin delete bothend deletebegin insert allend insert of the
2following:

begin delete

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.

end delete
begin insert

14
(a) The California Organic Products Act of 1990 and the federal
15Organic Foods Production Act of 1990 were established to regulate
16organic agricultural products. Improved coordination between
17federal and state organic program enforcement will benefit
18producers and consumers.

end insert
begin insert

19
(b) California is the “Capital of Organic Agriculture” in the
20United States and, in 2014, contributed 40 percent to the nation’s
21$5.5 billion in organic crop and livestock sales. In 2015, California
22also realized over $12.7 billion in gross organic product
23sales--$2.9 billion in organic farm sales and $9.8 billion in organic
24processed products. Nationally, sales of all organic products
25reached over $43 billion in 2015.

end insert
begin insert

26
(c) Organic soil-building practices enhance biodiversity,
27conserve natural resources, and contribute other public and
28environmental health benefits.

end insert
begin insert

P4    1
(d) Demand for organic products grew by 11 percent in 2015,
2far outpacing domestic supply. Streamlining and updating the state
3organic program will improve California competitiveness in this
4vital sector of the state’s agricultural economy.

end insert
5

SEC. 2.  

Section 46000 of the Food and Agricultural Code is
6amended to read:

7

46000.  

(a) This chapter and Article 7 (commencing with
8Section 110810) of Chapter 5 of Part 5 of Division 104 of the
9Health and Safety Code shall be known and may be cited as the
10California Organic Food and Farming Act.

11(b) The secretary and county agricultural commissioners under
12the supervision and direction of the secretary shall enforce
13regulations adopted by the National Organic Program (NOP)
14(Section 6517 of the federal Organic Foods Production Act of 1990
15(7 U.S.C. Sec. 6501 et seq.)), and Article 7 (commencing with
16Section 110810) of Chapter 5 of Part 5 of Division 104 of the
17Health and Safety Code and this act applicable to any person selling
18products as organic.

19

SEC. 3.  

Section 46001 of the Food and Agricultural Code is
20amended to read:

21

46001.  

This chapter shall be interpreted in conjunction with
22Article 7 (commencing with Section 110810) of Chapter 5 of Part
235 of Division 104 of the Health and Safety Code and regulations
24adopted by the National Organic Program (Section 6517 of the
25federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501
26et seq.)).

27

SEC. 4.  

Section 46002 of the Food and Agricultural Code is
28amended to read:

29

46002.  

(a) All organic food or product regulations and any
30amendments to those regulations adopted pursuant to the federal
31Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et
32seq.), that are in effect on the date this bill is enacted or that are
33adopted after that date, shall be the organic food and product
34regulations of this state.

35(b) The secretary may, by regulation, prescribe conditions under
36which organic foods or other products not addressed by the
37National Organic Program may be sold in this state.

38(c) The purpose of the act shall be to do both of the following:

39(1) Promote coordination of federal, state, and local agencies
40in implementing the National Organic Program.

P5    1(2) Support organic agriculture through education, outreach,
2 and other programmatic activities.

3(d) The secretary may receive and expend state and federal
4funds for activities authorized under this act.

5

SEC. 5.  

Section 46003 of the Food and Agricultural Code is
6amended to read:

7

46003.  

(a) The secretary shall establish an advisory committee,
8which shall be known as the California Organic Products Advisory
9Committee, for the purpose of advising the secretary with respect
10to his or her responsibilities under this act.

11(b) The advisory committee shall advise the secretary on
12education, outreach, and technical assistance for producers.

13(c) The advisory committee shall be comprised of 15 members.
14Each member may have an alternate. Six members and their
15alternates shall be producers, at least one of whom shall be a
16producer of meat, fowl, fish, dairy products, or eggs. Two members
17and their alternates shall be processors, one member and his or her
18alternate shall be wholesale distributors, one member and his or
19her alternate shall be representatives of an accredited certifying
20agency operating in the state, one member and his or her alternate
21shall be consumer representatives, one member and his or her
22alternate shall be environmental representatives, two members and
23their alternates shall be technical representatives with scientific
24credentials related to agricultural chemicals, toxicology, or food
25science, and one member and his or her alternate shall be retail
26representatives. Except for the consumer, environmental, and
27technical representatives, the members of the advisory committee
28and their alternates shall have derived a substantial portion of their
29business income, wages, or salary as a result of services they
30provide that directly result in the production, handling, processing,
31or retailing of products sold as organic for at least three years
32preceding their appointment to the advisory committee. The
33consumer and environmental representatives and their alternates
34shall not have a financial interest in the direct sales or marketing
35of the organic product industry and shall be members or employees
36of representatives of recognized nonprofit organizations whose
37principal purpose is the protection of consumer health or protection
38of the environment. The technical representatives and their
39alternates shall not have a financial interest in the production,
40handling, processing, or marketing of the organic products industry.
P6    1The technical representatives may be involved in organic research
2or technical review providing they have no financial benefit from
3results of the research project or technical review.

4(d) An alternate member shall serve at an advisory committee
5meeting only in the absence of, and shall have the same powers
6and duties as, the category whom he or she is representing as
7alternate, except for duties and powers as an officer of the
8committee. The number of alternates present who are not serving
9in the capacity of a member shall not be considered in determining
10a quorum.

11(e) An alternate member may serve at an advisory committee
12subcommittee meeting only in the absence of, and shall have the
13same powers and duties as, the member whom he or she is
14designated as alternate, except for duties and powers as a
15subcommittee chairperson.

16(f) The members of the advisory committee and their alternates
17shall be reimbursed for the reasonable expenses actually incurred
18in the performance of their duties, as determined by the advisory
19committee and approved by the secretary.

20(g) The secretary or his or her representative, the State Public
21Health Officer or his or her representative, and a county agricultural
22commissioner may serve as ex officio members of the advisory
23committee.

24

SEC. 6.  

Section 46003.2 is added to the Food and Agricultural
25Code
, to read:

26

46003.2.  

(a) To the extent that funds are available, the
27secretary, in consultation with the California Organic Products
28Advisory Committee, may establish procedures for and conduct
29all of the following activities:

30(1) Receive and investigate complaints filed by any person
31concerning suspected acts of noncompliance with this act or federal
32organic standards.

33(2) Conduct periodic spot inspections.

34(3) Conduct periodic prohibited substance testing on products
35labeled as organic.

36(4) Conduct farmers’ market inspections.

37(5) Support organic agriculture through education, outreach,
38and other programmatic activities.

39(6) Reimburse investigation, enforcement, and market
40surveillance expenses, including expenses incurred by any county
P7    1agricultural commissioner for actions conducted pursuant to this
2chapter.

3(7) Conduct hearings, appeals, mediation, or settlement
4conferences from actions taken to enforce this chapter.

5(b) Investigation, inspection, and prohibited material testing
6reports shall be forwarded to the secretary for any required
7enforcement action.

8(c) The secretary shall coordinate activities authorized under
9this section with other county and state licensing, registration,
10inspection, and fee collection procedures applicable to registrants.

11

SEC. 7.  

Section 46004.1 of the Food and Agricultural Code is
12amended to read:

13

46004.1.  

Unless defined pursuant to the National Organic
14Program (NOP), the following words and phrases, when used in
15this act, shall have the following meanings:

16(a) “Accredited certification agency” means an entity accredited
17by the United States Department of Agriculture to certify
18operations as compliant with the federal organic standards.

19(b) “Act” means the California Organic Food and Farming Act.
20It also means the federal Organic Foods Production Act of 1990
21(7 U.S.C. Sec. 6501 et seq.) and the regulations adopted pursuant
22to the federal Organic Foods Production Act of 1990 (7 U.S.C.
23Sec. 6501 et seq.).

24(c) “Categorical products” means categories of products of like
25commodity, such as apples, salad products, etc., and does not
26require variety specific information.

27(d) “Certified operation” means a producer, handler, or retail
28food establishment that is certified organic by an accredited
29certification agency as authorized by the federal Organic Foods
30Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and
31implemented pursuant to the National Organic Program.

32(e) “Data” means the information provided annually by persons
33registered under the act, including certified organic acreage and
34gross sales of certified organic products.

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

36(g) “Director” means the director and State Public Health Officer
37for the State Department of Public Health.

38(h) “Enforcement authority” means the governmental unit with
39primary enforcement jurisdiction, as provided in Section 46008.

P8    1(i) “Exempt handler” means a handling operation that sells
2agricultural products as “organic” but whose gross agricultural
3income from organic sales totals five thousand dollars ($5,000) or
4less annually.

5(j) “Exempt operation” means a production or handling operation
6that sells agricultural products but is exempt from certification
7under federal organic standards.

8(k) “Exempt producer” means a production operation that sells
9agricultural products as “organic” but whose gross agricultural
10income from organic sales totals five thousand dollars ($5,000) or
11less annually.

12(l) “Federal organic standards” means the federal regulations
13governing production, labeling, and marketing of organic products
14as authorized by the federal Organic Foods Production Act of 1990
15(7 U.S.C. Sec. 6501 et seq.) and implemented pursuant to the
16National Organic Program (7 C.F.R. 205 et seq.), and any
17amendments to the federal act or regulations made subsequent to
18the enactment of this chapter.

19(m) “Handle” means to sell, process, or package agricultural
20products.

21(n) “Handler” means any person engaged in the business of
22handling agricultural products, but does not include final retailers
23of agricultural products that do not process agricultural products.

24(o) “Handling operation” means any operation or portion of an
25operation, except final retailers of agricultural products that do not
26process agricultural products that (1) receives or otherwise acquires
27agricultural products, and (2) processes, packages, or stores
28agricultural products.

29(p) “Inspection” means the act of examining and evaluating
30production or handling operation to determine compliance with
31state and federal law.

32(q) “National Organic Program” or “NOP” means the National
33Organic Program established pursuant to the federal Organic Foods
34Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and the
35regulations adopted for implementation.

36(r) “Person” means any individual, firm, partnership, trust,
37corporation, limited liability company, company, estate, public or
38private institution, association, organization, group, city, county,
39city and county, political subdivision of this state, other
P9    1governmental agency within the state, and any representative,
2agent, or agency of any of the foregoing.

3(s) “Processing” means cooking, baking, heating, drying, mixing,
4grinding, churning, separating, extracting, cutting, fermenting,
5eviscerating, preserving, dehydrating, freezing, or otherwise
6manufacturing, and includes packaging, canning, jarring, or
7otherwise enclosing food in a container.

8(t) “Producer” means a person who engages in the business of
9growing or producing food, fiber, feed, and other agricultural-based
10consumer products.

11(u) “Prohibited substance” means a substance the use of which
12in any aspect of organic production or handling is prohibited or
13not provided for in state or federal law.

14(v) “Residue testing” means an official or validated analytical
15procedure that detects, identifies, and measures the presence of
16chemical substances, their metabolites, or degradation products in
17or on raw or processed agricultural products.

18(w) “Retail food establishment” means a restaurant, delicatessen,
19bakery, grocery store, or any retail outlet with an in-store restaurant,
20delicatessen, bakery, salad bar, or other eat-in or carry-out service
21of processed or prepared raw and ready-to-eat-food.

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

23(y) “State Organic Program” or “SOP” means a state program
24that meets the requirements of Section 6506 of the federal Organic
25Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.), is
26approved by the Secretary of the United States Department of
27Agriculture, and is designed to ensure that a product that is sold
28or labeled as organically produced under the federal Organic Foods
29Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) is produced
30and handled using organic methods.

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

32

SEC. 8.  

Section 46007 of the Food and Agricultural Code is
33amended to read:

34

46007.  

(a) Any penalties collected by the secretary and any
35fees collected by a county agricultural commissioner pursuant to
36this chapter shall be deposited in the Department of Food and
37Agriculture Fund and, upon appropriation by the Legislature, shall
38be expended solely to fulfill the responsibilities authorized under
39this chapter.

P10   1(b) Any fees and penalties collected by a county agricultural
2 commissioner pursuant to Section 46017 and any other penalties
3collected by a county agricultural commissioner pursuant to this
4chapter shall be paid directly to the county agricultural
5commissioner and expended to fulfill the responsibilities of the
6county agricultural commissioner, as specified in this chapter.

7(c) The secretary shall establish a specific minimum amount to
8be reimbursed to each county agricultural commissioner per
9registrant in that county. This reimbursement shall not limit the
10amount of the reimbursement otherwise made to county
11commissioners for their enforcement activities.

12

SEC. 9.  

Section 46010.5 of the Food and Agricultural Code is
13amended to read:

14

46010.5.  

(a) No fee established and collected pursuant to this
15chapter shall exceed the secretary’s costs or the county agricultural
16commissioner’s costs, as the case may be, of regulating and
17enforcing the provisions of this chapter related to the function for
18which the fee is established.

19(b) The fees established and collected pursuant to this chapter
20may be expended, under the advisement of the California Organic
21Products Advisory Committee, for activities authorized under this
22chapter, including assisting operations in achieving certification,
23conducting education and outreach, entering research and
24development partnerships, and addressing production or marketing
25obstacles to the growth of the organic sector.

26

SEC. 10.  

Section 46012 of the Food and Agricultural Code is
27amended to read:

28

46012.  

Article 14 (commencing with Section 43031) of Chapter
292 applies to any food product that is represented as organically
30produced by any person who is not registered as required by this
31chapter or any product that is not in compliance with this chapter
32or Article 7 (commencing with Section 110810) of Chapter 5 of
33Part 5 of Division 104 of the Health and Safety Code. The
34secretary, agricultural commissioners, and the director shall be
35considered enforcing officers for purposes of those provisions of
36law under their respective jurisdiction.

37

SEC. 11.  

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

39

46013.1.  

(a) Every person engaged in this state in the
40production or handling of raw agricultural products sold as organic
P11   1shall register with the secretary before the first sale of the product.
2All processors of organic agriculturally derived products that are
3not required to be registered as outlined in subdivision (b) shall
4register with the secretary. Each registrant shall annually renew
5the registration with the secretary unless no longer engaged in the
6activities requiring the registration.

7(b) Every person engaged in this state in the processing or
8handling of processed products pursuant to Section 110460 of the
9Health and Safety Code, and pet food pursuant to Section 18653,
10and cosmetics pursuant to Section 111795 of the Health and Safety
11Code, including processors of alcoholic beverages, fish, and
12seafood, shall register with the State Public Health Officer.

13(c) Registration pursuant to this section shall be on a form either
14provided by the secretary or approved by the secretary and shall
15be valid for a period of one calendar year from the date of
16validation by the secretary of the completed registrationbegin delete form.end deletebegin insert form
17or for a period determined by the secretary to promote
18coordination with organic certification applications and renewals,
19organic certification cost share programs, and other state program
20registration.end insert

21(d) The information provided on the registration form shall
22include all of the following:

23(1) The nature of the registrant’s business, including the
24categorical products produced, handled, or processed that are sold
25as organic. For the purposes of registration, organic products shall
26bebegin delete categorized as follows:end deletebegin insert reported in accordance with the
27following specified categories unless the secretary, in consultation
28with the California Organic Products Advisory Committee,
29establishes different categories:end insert

30(A) Citrus.

31(B) begin deleteFruit and vegetable row crops. end deletebegin insertFruits, excluding citrus.end insert

32(C) Livestockbegin delete andend deletebegin insert orend insert dairy.

begin delete

33(D) Stone fruit.

end delete
begin delete

34(E) Tree fruit.

end delete
begin delete

35(F) Tree nuts.

end delete
begin insert

36
(D) Nuts.

end insert
begin insert

37
(E) Vegetables.

end insert
begin delete

38(G)

end delete

P12   1begin insert(F)end insert Other, which includes, but is not limited to,begin insert apiculture,end insert
2 organic fallow ground,begin delete herbs andend deletebegin insert herbs,end insert mushrooms, cut flowers,
3
begin delete nursery, and apiaries.end deletebegin insert and nursery.end insert

4(2) The address or assessor’s parcel number of the precise
5location or locations where the products are produced, processed,
6or handled.

7(3) Sufficient information, under penalty of perjury, to enable
8the secretary to verify the amount of the registration fee to be paid
9in accordance with this act.

10(4) The names of all certification organizations or governmental
11entities, if any, providing organic certification to them.

12(e) (1) A registration form shall be accompanied by payment
13of a nonrefundable registration fee by producers, handlers, and
14processors, which shall be based on total gross sales by the
15registrant of product sold as organic in the calendar year that
16precedes the date of registration or, if no sales were made in the
17preceding year, then based on the expected sales during the 12
18calendar months following the date of registration in accordance
19with the following fee schedule. The secretary, in consultation
20with the California Organic Products Advisory Committee, may
21lower the amounts specified in the following fee schedule by
22regulation.


23

 

 

  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  36

 

37(2) Producers that sell processed product shall pay fees based
38on the value of raw product before being processed and the value
39of any product sold as unprocessed.

P13   1(3) Any person that packs, repacks, labels, sorts, or otherwise
2handles any organic product that is outside the jurisdiction of the
3State Public Health Officer and that does not take title or manage
4the sale of the product, but provides only handling services for
5organic product, shall register and pay one hundred dollars ($100)
6per year.

7(4) Any person that provides temporary storage or transportation
8for organic product and does not handle the raw unpackaged
9product does not have to register.

10(5) Any person required to register pursuant to this section that
11fits the description of more than one of the persons described above
12 shall pay the greater of the multiple amounts.

13(6) The secretary may require any producer, handler, processor,
14or other organic registrant to provide the exact dollar amount of
15gross sales of twenty-five million one dollars ($25,000,001) or
16more in lieu of the range specified in paragraph (1).

17(f) The secretary may adopt regulations that supersede the terms
18of this section to the extent reasonably necessary to provide an
19online system of registration for those required to register pursuant
20to this section.

21(g) The adoption, amendment, or repeal of any fee pursuant to
22this section shall not be subject to the requirements of Chapter 3.5
23(commencing with Section 11340) of Part 1 of Division 3 of Title
242 of the Government Code. An order to adopt, amend, or repeal
25the regulations concerning assessment rates pursuant to this section
26shall be transmitted within 30 days by the secretary to the Office
27of Administrative Law. The Office of Administrative Law shall
28file the order promptly with the Secretary of State without further
29review pursuant to Article 6 (commencing with Section 11349) of
30Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government
31Code. The order shall do all of the following:

32(1) Indicate that the regulations are being adopted, amended,
33or repealed pursuant to this chapter.

34(2) State that the order is being transmitted for filing.

35(3) Request that the Office of Administrative Law publish a
36notice of the filing of the order and print an appropriate reference
37in Title 3 of the California Code of Regulations.

38

SEC. 12.  

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

P14   1

46013.2.  

(a) To the extent feasible, the secretary, in
2consultation with the director, shall coordinate the registration and
3annual fee collection procedures of this section with similar
4licensing or registration procedures applicable to registrants.

5(b) The secretary shall deny a registration submission that is
6incomplete or not in compliance with this act.

7(c) A registrant shall, within a reasonable time, notify the
8secretary of any change in the information reported on the
9registration form and shall pay any additional fee owed if that
10change results in a higher fee owed than that previously paid.

11(d) (1) At the request of any person, the secretary or county
12agricultural commissioner shall provide the following:

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

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

15(C) The names of all certification organizations or governmental
16entities, if any, providing certification pursuant to the NOP and
17this act.

18(2) The secretary or county agricultural commissioner may
19charge a reasonable fee for the cost of reproducing this information.
20Except as provided in this subdivision, a registration form is
21exempt from Chapter 3.5 (commencing with Section 6250) of
22Division 7 of Title 1 of the Government Code.

23(e) The secretary, in consultation with the California Organic
24Products Advisory Committee, may suspend the registration
25program set forth in this section if the secretary determines that
26income derived from registration fees is insufficient to support a
27registration enforcement program.

28(f) A registration is considered legal and valid until revoked,
29suspended, or until the expiration of the registration.

30(g) The registration revocation process shall be in conjunction
31with other provisions of this act. The secretary or county
32agricultural commissioner’s office may initiate the revocation
33process for failure to comply with the NOP or this act. Any person
34against whom the action is being taken shall have the opportunity
35to appeal the action and be afforded the opportunity to be heard
36in an administrative appeal. This appeal shall be administered by
37either the state or county agricultural commissioner’s office.

38(h) When the registration fee is not paid within 60 days from
39the expiration date, the account shall be considered closed and the
40registration voided. A notification shall be sent to the registrant
P15   1and the certifier, if applicable, notifying them the registrant is no
2longer able to market products as organic until the account is paid
3in full.

4(i) Any producer, handler, processor, or certification agency
5subject to this chapter that does not pay the fee within 10 days of
6the date on which the fee is due and payable shall pay a penalty
7of 10 percent of the total amount determined to be due plus interest
8at the rate of 1.5 percent per month on the unpaid balance.

9

SEC. 13.  

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

11

46014.1.  

(a) Any certification agency that certifies product in
12this state sold as organic shall register with the secretary and shall
13thereafter annually renew the registration, unless the organization
14is no longer engaged in the activities requiring the registration.
15Registration shall be on a form provided by the secretary, shall
16include a copy of accreditation by the USDA or proof of
17application if applicable.begin delete The secretary, in consultation with the
18California Organic Products Advisory Committee, shall establish
19a registration fee not to exceed five hundred dollars ($500) annually
20for certifying agencies operating within the state.end delete

21(b) Each certification agency shall pay to the secretary an annual
22registration fee of twenty-five dollars ($25) for each client they
23have certified in this state up to a maximum ofbegin delete two hundred fifty
24dollars ($250).end delete
begin insert five hundred dollars ($500).end insert Any registration
25submitted by a certification agency shall be made available to the
26public for inspection and copying. The secretary may audit the
27agency’s certification procedures and records at any time, but any
28records of the certification agency not otherwise required to be
29disclosed shall be kept confidential by the secretary.

30(c) An accredited certifying agency may submit an annual
31registration fee and application on behalf of their client provided
32that all of the information required under Section 46013.1 is
33included when remitting applicable fees to the secretary.

34(d) The secretary and the county agricultural commissioners
35under the supervision of the secretary shall, if requested by a
36sufficient number of persons to cover the costs of the program in
37a county as determined by the secretary, establish a certification
38program. This program shall meet all of the requirements of this
39act. In addition, this program shall meet all of the requirements of
40the federal certification program, including federal accreditation.
P16   1The secretary shall establish a fee schedule for participants in this
2program that covers all of the secretary’s reasonable costs of the
3program. A county agricultural commissioner that conducts a
4voluntary certification program pursuant to this section shall
5establish a fee schedule for participants in this program that covers
6all of the county’s reasonable costs of the program. The secretary
7shall not expend funds obtained from registration fees collected
8under this chapter for the purposes of adopting or administering
9this program. The certification fee authorized by this subdivision
10is due and payable on January 1 or may be prorated before the
1110th day of the month following the month in which the decision
12to grant the certification is issued. Any person who does not pay
13the amount that is due within the required period shall pay the
14enforcement authority providing the certificate a penalty of 10
15percent of the total amount determined to be due, plus interest at
16the rate of 1.5 percent interest per month on the unpaid balance.

17(e) Notwithstanding any other law, any certification agency that
18certifies product in this state sold as organic shall immediately
19make the following records available for inspection by, and shall
20upon request within three business days of thebegin delete requestend deletebegin insert request, or
21within a reasonable time exceeding three business days as
22determined by the secretary,end insert
provide a copy to, the secretary or
23county agricultural commissioner:

24(1) Records obtained from applicants for certification and
25certified operations.

26(2) Records created by the certifying agent regarding applicants
27for certification and certified operations.

28(3) Any record required to be kept under the National Organic
29Program (Section 6517 of the federal Organic Foods Production
30Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and 7 C.F.R. 205 et seq.),
31Article 7 (commencing with Section 110810) of Chapter 5 of Part
325 of Division 104 of the Health and Safety Code, and this act
33applicable to any person selling products as organic.

34(f) Records acquired pursuant to this section shall not be public
35records as that term is defined in Section 6252 of the Government
36Code and shall not be subject to Chapter 3.5 (commencing with
37Section 6250) of Division 7 of Title 1 of the Government Code.

38

SEC. 14.  

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

P17   1

46014.2.  

(a) All products sold as organic in California shall
2be certified by an accredited certifying agent if they are required
3to be certified under the federal act.

4(b) Product shall be sold as organic only in accordance with this
5act.

6(c) A certification agency shall be accredited by the USDA as
7provided in the NOP.

8

SEC. 15.  

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

10

46014.4.  

A registered certification agency shall submit to the
11secretary every January and June a list of all persons whose
12production or processing of product in California is certified. The
13list shall be publicly available within 30 days after the end of each
14filing period. A certifier that keeps a current list on an Internet
15Web site available to the public may be deemed to meet this
16requirement.

17

SEC. 16.  

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

19

46014.6.  

Only products that have been produced and handled
20in accordance with this act may be certified by a registered
21certification agency.

22

SEC. 17.  

Section 46016.4 of the Food and Agricultural Code
23 is amended to read:

24

46016.4.  

The appeal shall be submitted to the secretary in
25writing within 30 days of the date of the action or the letter
26proposing the action. The secretary’s proceeding shall, insofar as
27practicable, comply with the provisions of the Administrative
28Procedure Act, Chapter 5 (commencing with Section 11500) of
29Part 1 of Division 3 of Title 2 of the Government Code, except
30that a Department of Food and Agriculture hearing officer may be
31 used.

32

SEC. 18.  

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

34

46016.5.  

As provided for in regulations adopted by the NOP,
35the action proposed by an NOP accredited certification agency
36against a client may be appealed to the secretary for mediation.

37

SEC. 19.  

Section 46021 of the Food and Agricultural Code is
38amended to read:

39

46021.  

(a) It is unlawful for any person to certify any product
40in violation of this act.

P18   1(b) It is unlawful for any person to certify a product or company
2as organic unless duly registered as a certification agency pursuant
3to this act.

4(c) It is unlawful for any person to willfully make a false
5statement or representation, or knowingly fail to disclose a fact
6required to be disclosed, in registration for a certification agency
7pursuant to this act.

8

SEC. 20.  

Section 46028 of the Food and Agricultural Code is
9amended to read:

10

46028.  

All persons who produce, handle, or retail products that
11are sold as organic shall keep accurate and specific records as
12required by the secretary in consultation with the California
13Organic Products Advisory Committee.

14

SEC. 21.  

If the Commission on State Mandates determines
15that this act contains costs mandated by the state, reimbursement
16to local agencies and school districts for those costs shall be made
17pursuant to Part 7 (commencing with Section 17500) of Division
184 of Title 2 of the Government Code.



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