BILL ANALYSIS Ó AB 1826 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1826 (Mark Stone) - As Amended April 26, 2016 ----------------------------------------------------------------- |Policy |Agriculture |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill overhauls the State Organic Program (SOP), including changing the SOP fee structure and granting a larger administrative role to accredited certifying agencies. AB 1826 Page 2 Specifically, this bill: 1)Makes the following changes to the California Organics Products Advisory Committee (Committee): a) Requires the Committee to advise the Secretary of California Department of Food and Agriculture (CDFA) on education, outreach, and technical assistance for organic producers. b) Changes the makeup of the Committee by adding a representative from an accredited certifying agency, and reducing from two members representing consumers to one. 1)Defines the scope of SOP as follows: a) States that the purpose of SOP is to promote coordination of federal, state, and local agencies in the implementation of the National Organic Program (NOP), expand, improve, and protect the production of organic products, and provide technical assistance education, outreach, and guidance. b) Authorizes CDFA to establish procedures, in consultation with the Committee, for a number of activities, including inspections, responding to complaints, technical assistance, reimbursement of county agricultural commission activities, and legal proceedings. c) Revises the information required for registration by deleting detailed descriptions of facilities and locations and instead requires an address or parcel number and AB 1826 Page 3 establishes a list of organic product categories. 1)Changes and consolidates the fee structure for producers, handlers, and processors, and authorizes an accredited certifying agency to submit those registration fees and applications on behalf of the applicant. 2)Establishes the following requirements for accredited certifying agencies: a) Establishes a licensing fee that is not to exceed $500 for accredited certifying agencies operating within California. b) Requires any accredited certifying agency to make specified records available to the Secretary or county agricultural commissioner within three days of a request. 1)Replaces the detailed listing of required records to be kept by a producer, handler, or retailer with the requirement that accurate and specific records are kept as required by the Secretary, in consultation with the Committee. FISCAL EFFECT: 1)One-time administrative costs of approximately $100,000 for CDFA to reprogram the current online registration system and database, which will allow CDFA to restructure the application process, data collection and assignments, and fee schedule. (Department of Food and Agriculture Fund) AB 1826 Page 4 2)Ongoing annual revenue loss in the range approximately $150,000 from the new fee schedule. (Department of Food and Agriculture Fund) COMMENTS: 1)Purpose. According to supporters, this bill will bring more consistency to the state and federal organic programs by reducing the required paperwork for farmers and reducing the cost of filing with SOP. Supporters contend that much of the paperwork requirements and fees are duplicative of NOP. 2)Background. Federal, state, and local agencies are all involved in the regulation of organic products. California's SOP was created under the California Organic Foods Production Act of 1990. California's program was in operation before the US Department of Agriculture (USDA)'s NOP was fully implemented in 2002. Under current law, CDFA, through the SOP, registers and enforces organic provisions related to raw agricultural products. SOP's enforcement activities are coordinated with the Department of Public Health, who regulates the processing or handling of processed products, the USDA's NOP, and county agriculture commissioners, who registers local producers and handlers. Currently, SOP's activities include program administration; county biologist training; spot inspections; residue testing and sampling; complaint investigations; registration; and, providing information and guidance to the California organic industry. AB 1826 Page 5 The federal NOP program recognizes SOP as a state organic program and has delegated enforcement of federal organic standards and regulations to SOP. Analysis Prepared by:Luke Reidenbach / APPR. / (916) 319-2081