BILL ANALYSIS
AB 856
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Date of Hearing: April 29, 2009
ASSEMBLY COMMITTEE ON AGRICULTURE
Cathleen Galgiani, Chair
AB 856 (Caballero) - As Amended: April 27, 2009
SUBJECT : Fertilizer material: organic input material.
SUMMARY : Expands definitions and adds a new definition to the
California Department of Food and Agriculture's (CDFA)
fertilizer program statutes, adding new requirements, fees and
penalties. Specifically, this bill :
1)Adds the term "organic input material" to various existing
definitions and then defines it to mean any bulk or packaged
commercial products to be used in organic crop or food
production, in compliance with the National Organic Program
(NOP).
2)Requires the Secretary (secretary) of CDFA, prior to licensure
of a fertilizer manufacturer or distributor, to verify the
fertilizer material is compliant with this chapter.
3)Raises the registration fee to not exceed $300 per product and
prohibits a registration to be issued without a current
license. Exempts persons producing compost for personal use
from these provisions.
4)Raises the registration fee to not exceed $500 per product,
states that such labels require additional resources and
review time to ensure nutrient guarantees and that claims are
scientifically feasible and meet NOP standards, and prohibits
a registration to be issued without a current license.
5)Requires organic input material manufacturers to be inspected
once per year by the secretary or by a NOP recognized third
party for such out-of-state manufacturers for validation of
label nutrient guarantees, claims and compliance with NOP
standards. All inspection records by third parties must be
made available to the secretary upon request and third parties
must inform CDFA of site inspections no less than 72 hours
prior to the inspection, permitting CDFA to be present at the
inspection.
6)Creates a cause for revocation of a license due to the
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manufacturer's failure to provide the required tonnage report
within 90 days of being due.
7)Authorizes the inspection of fertilizer materials,
manufacturing facilities and samples at various stages of
production to verify production process, label and labeling
claims.
8)Requires the secretary, for purposes of enforcement at times
and as necessary, to monitor the manufacturing of fertilizer
material and sample different stages of the manufacturing
process.
9)Increases the penalty to a maximum of $1,000 for the first
violation of this chapter and to not less than $1000 for each
subsequent violation.
10)Changes the name of the CDFA oversight division from
"Agricultural Commodities and Regulatory Services" to "Feed,
Fertilizer, Livestock Drugs and Egg Regulatory Services."
11)Requires a civil penalty be levied, of not more than $5,000
for each violation of this chapter, based upon the seriousness
of the violation. If the violation is negligible or
unintentional, a notice of warning is permitted. Provides for
those levied civil penalties, a due process appeal hearing
with the right to present evidence, with the secretary's
decision reviewed in accordance to the Code of Civil
Procedure, as specified.
12)Creates a penalty for the unlawful manufacturing or
distribution of any fertilizer material as a misdemeanor
punishable by not more than $15,000 for the first offense and
not less than $15,000 for each subsequent violation. Any
violators may be prohibited from obtaining a license to sell
organic input materials for three years.
13)Creates a civil penalty for the movement, distribution or
sale of product quarantined by the secretary, as per (9) above
or a misdemeanor punishable by a fine or not more than $5,000
for the first offense, and a fine of not less than $10,000 for
second or subsequent violations.
14)Mandates that CDFA is entitled to recovery, from any person
found in violation of this chapter, of any reasonable attorney
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fees and other related costs involved in enforcement of this
chapter.
15)Prohibits the distribution of a product considered
adulterated, and adds that an organic input material is
adulterated if it is not in compliance with the requirements
of NOP standards.-
16)Makes conforming changes and provides exceptions from review
of various fees by the Office of Administrative Law (OAL).
EXISTING LAW was created to promote effective and safe use of
commercial fertilizers, assure consumers that fertilizers,
minerals, soil amendments, auxiliary soil and plant substances
are properly identified and to validate the quality and quantity
represented by the manufacturer. Statute provides definitions,
licensure requirements for manufactures with a fee of $200,
requires a registration fee of up to $200 for each label;
permits proof of label claims to be substantiated; and, allows
for cancellation of registration or refusal to register, as
specified. An appointed industry advisory board makes
recommendations to the secretary regarding all fees. All
licensees pay an assessment to cover inspection, sampling and
analysis and an additional assessment if permitted for research
and education purposes. Additionally, they provide penalties
for violations of these provisions, for misbranding and
adulteration of fertilizers.
FISCAL EFFECT : Unknown. Legislative Counsel has keyed this
bill fiscal.
COMMENTS : Current statutes have not required label review or
registration of manufactured or distributed bulk fertilizers
(over 110 pounds), which are how many organic fertilizers are
handled. This lack of oversight has caused some significant
concerns due to the discovery of one manufacturer spiking their
organically labeled product with a synthetic substance that is
prohibited for use on organic crops. Such a product does not
create a health risk but does violate the requirements for NOP.
This issue was previously raised with CDFA in June 2004 but
their investigation was not completed until January 2007, at
which time CDFA order the removal of the product from the
organic market. No fines or penalties were sought from the
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manufacturer. Following this discovery, there was an outcry by
the organic industry and consumers from this episode of deceit.
While no organic farmer lost their certification, they could
have.
This incident lead to the finding that CDFA lacked sufficient
oversight authority for organic input materials for fertilizers
using organic labels. CDFA is the sponsor of this bill,
according to the author. In February 2009, the Senate Committee
on Food and Agriculture held an informational hearing on the
issue of organic fertilizers and CDFA's oversight of the
fertilizer industry. At that hearing, CDFA referred to AB 856,
although it had not been introduced as of that date, as the
vehicle that would address the organic fertilizer concerns.
CDFA developed a strategic plan for its Fertilizer Materials
Inspection Program that was completed in 2008. The language in
AB 856 reflects many of the statutory gaps that were discovered
by the incident referenced previously and the strategic planning
process. Additionally, as a result of the strategic planning,
CDFA expanded its staff for fertilizer materials label review,
field inspections, and manufacturer and distributor licensure.
In developing this language, CDFA has worked closely with many
stakeholders, including organic and conventional trade groups,
to resolve issues regarding the language in AB 856.
AB 856 will permit CDFA to expand its inspection program by
increasing the fee cap on conventional products and establishing
a new fee specifically for organic products, creating the
revenues to hire additional staff. This new staff will focus on
the review, inspection and testing of fertilizer input
materials, specifically dealing with organic products. Further,
the exemption from review by OAL is because all fees are subject
to a recommendation by the industry advisory board before being
raised or lowered.
REGISTERED SUPPORT / OPPOSITION :
Support
California Department of Agriculture (Sponsor)
California Certified Organic Farmers
Organic Fertilizer Association of California
Western Plant Health Association
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Opposition
None on file.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084