BILL ANALYSIS Ó AB 1826 Page 1 ASSEMBLY THIRD READING AB 1826 (Mark Stone) As Amended April 26, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Agriculture |10-0 |Dodd, Mathis, Eggman, | | | | |Gallagher, Gray, | | | | |Grove, Irwin, | | | | |Jones-Sawyer, Quirk, | | | | |Salas | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |20-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Jones, Obernolte, | | | | |Quirk, Santiago, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ AB 1826 Page 2 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. Specifically, this bill: 1)Restructures the SOP by reducing certain registration fees, authorizes certifying agencies to register organic farmers and pay fees, and changes the paperwork requirements for registration. 2)Adds that the Advisory Committee (AC) is to advise the Secretary of the California Department of Food and Agriculture (CDFA) on education, outreach, and technical assistance for organic producers, among other specified activities of the Secretary. 3)Expands and changes the make-up of the AC by adding a representative from an accredited certifying agency operating within this state, reducing from two to one member representing consumers. 4)Adds specified definitions to the Food and Agricultural Code (FAC). 5)Increases the fee cap the Secretary may charge a certifying agency operation in California to $500, and permits certifying agencies to submit annual registration fees and applications on behalf of their clients 6)Requires any certifying agency to make specified records available to the Secretary or the county agricultural AB 1826 Page 3 commissioner (CAC) within three business days of a request. 7)Makes technical, clarifying and conforming changes. (For a more detailed analysis, please see the Assembly Policy Committee's analysis.) EXISTING LAW: SOP is statutorily mandated to enforce the federal Organic Food Production Act of 1990; National Organic Program (NOP) regulations; the California Organic Products Act of 2003; and, SOP regulations. Every person engaged in California in the production or handling of raw agricultural products sold as organic, must register with CAC in the county of principal operation prior to the first sale of the product. In addition, every person engaged in this State in the processing or handling of processed products is required to register with the Department of Public Health (DPH). Generally, CDFA registers and enforces organic provisions related to raw agricultural products while DPH registers and enforces organic provisions related to processed organic products. SOP's enforcement activities are coordinated with DPH, NOP, and CAC's SOP's activities including program administration; county biologist training; spot inspections; residue testing and sampling; complaint investigations; registration; and, providing information and guidance to the California organic industry. Federal law establishes NOP, 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. NOP has recognized SOP as a state organic program and has delegated enforcement of federal organic standards and regulations to SOP. AB 1826 Page 4 FISCAL EFFECT: According to the Assembly Appropriations Committee, there is a one-time administrative cost 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; and, ongoing annual revenue loss in the range approximately $150,000 from the new fee schedule. COMMENTS: The California Certified Organic Farmers (CCOF) is a trade association, as well as an approved organic certifying agent; they want to bring more consistency to the state and federal programs by reducing the required paperwork for farmers and reduce the cost of filing with SOP. They state that much of the paperwork and fees are duplicative of NOP, and that much of the information required of SOP is already collected by the certifying agents. Further, they state that SOP puts California organic producers, processors and handlers at a competitive disadvantage. California was the first state to create an Organic Food Act in 1979. In 1990, SOP was created under the Organic Foods Production Act of 1990 which authorized United States Department of Agriculture (USDA) to establish the NOP regulations. USDA finished development of NOP regulations in 2002. The purpose of these laws is to ensure that the consumer is purchasing organic products when labeled as organic. According to USDA, organic agriculture has grown substantially over the past years to an annual sales level of more than $39 billion in the United States and over $75 billion worldwide. The numbers of certified organic operations have significantly increased, continuing the trend of double digit growth in the organic sector. According to new data, there are now 21,781 certified organic operations in the United States. California AB 1826 Page 5 has roughly 4,160 registered organic operations. CDFA estimates that California producers account for over 40% of the organic production in the United States. Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084 FN: 0003294