BILL ANALYSIS Ó AB 1826 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1826 (Mark Stone) As Amended June 30, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 77-0 |(May 31, 2016) |SENATE: | 39-0 |(August 17, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: AGRI. SUMMARY: Overhauls the State Organic Program (SOP), by changing the SOP fee structure; grants a larger administrative role to accredited certifying agencies; revises the composition of the California Organic Products Advisory Committee; and, revises required information provided for registration and recordkeeping. The Senate amendments reword and add to legislative findings; permit the California Department of Food and Agriculture (CDFA) to determine a reasonable time exceeding three business days for responding to a request of records; and, made technical non-substantive changes. EXISTING LAW: SOP is statutorily mandated to enforce the federal Organic Food Production Act of 1990 and the National Organic Program (NOP) regulations. Every person engaged in AB 1826 Page 2 California in the production or handling of raw agricultural products sold as organic, must register with the county agricultural commissioner (CAC) in the county of principal operation prior to the first sale of the product. In addition, every person engaged within California in the processing or handling of processed organic 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; registrations; 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. FISCAL EFFECT: According to the Senate Appropriations Committee, to implement the requirements of this measure, CDFA estimates a one-time cost of $107,000 for reprogramming the SOP's online registration system and database which can be absorbed within SOP's Department of Food and Agriculture Fund (Fund) reserve. Specifically, CDFA would have to restructure the application process, data collection and assignments, and the fee schedule. In addition, CDFA anticipates a reduction in annual revenue of approximately $164,000 to the Fund, resulting from the reduction and consolidation of fee categories and the removal of registration requirements for specified operations. AB 1826 Page 3 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. This bill will help limit those duplications and ensure California remains a top producer of organic products, while maintaining the integrity of the California organics market. California created the first Organic Food Act in 1979. In 1990, SOP was created under the Organic Foods Production Act of 1990, which authorized the 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. For more details please see the policy and fiscal committee analyses. Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084 FN: 0004038 AB 1826 Page 4