BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 856
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 856 (Caballero) - As Amended:  April 27, 2009 

          Policy Committee:                              AgricultureVote:8  
          - 0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill expands the California Department of Food and  
          Agriculture's (CDFA) fertilizer program to include "organic  
          input material." Specifically, this bill: 

          1)Defines "organic input material" as any bulk or packaged  
            commercial products designed to be used in organic crop or  
            food production, in compliance with the National Organic  
            Program (NOP). 

          2)Requires the Secretary of CDFA, prior to licensure of a  
            fertilizer manufacturer or distributor, to verify the  
            fertilizer material is compliant with this chapter.

          3)Requires organic input material manufacturers to be inspected  
            once per year by the secretary or by an NOP recognized third  
            party.

          4)Requires the secretary, for purposes of enforcement, to  
            monitor the manufacturing of fertilizer material and sample  
            different stages of the manufacturing process.

          5)Raises various maximum registration fees.

          6)Increases the maximum misdemeanor penalty from $500 to $1,000  
            for any violations of this chapter.

          7)Requires CDFA to levy a civil penalty of up to $5,000 against  
            any person who violates the provisions of this law. 

          8)States that it unlawful for any person to adulterate,  








                                                                  AB 856
                                                                  Page  2

            misbrand, or alter any fertilizing material with the result  
            that the fertilizing material would be inconsistent with the  
            label claims. Violation of this provision is a misdemeanor and  
            is punishable by a fine of not more than $15,000 and may  
            result in the revocation of the license needed to sell organic  
            input materials. 

           FISCAL EFFECT  

          Costs associated with the expansion of the fertilizer program  
          would be approximately $400,000 per year.  Funding would come  
          from the increased revenue deposited into the Fertilizer  
          Inspection Program Fund.

           
          COMMENTS  

           1)Purpose  . The intent of this legislation is to increase state  
            oversight for organic fertilizers.  The author asserts that  
            the lack of oversight has resulted in the use of synthetic  
            substances in the production of fertilizers used for organic  
            farming. Additionally, the current penalty provisions are  
            insufficient to deter manufacturers from false advertising.   
            This bill, sponsored by CDFA, would strengthen oversight by  
            allowing for the review, registration, and testing of any bulk  
            organic fertilizing material sold in the state.  In addition,  
            it would establish civil penalties for violations of the  
            provisions contained in this legislation. 

            In 2008, CDFA developed a strategic plan for its Fertilizer  
            Materials Inspection Program.  The language in AB 856 reflects  
            many of the statutory gaps that were discovered during the  
            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  
            asserts that it 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 revenue necessary to hire additional staff.  This  
            new staff will focus on the review, inspection and testing of  








                                                                  AB 856
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            fertilizer input materials, specifically dealing with organic  
            products. 
             
           2)Background  . Specialty fertilizers, packaged agricultural  
            minerals, auxiliary soil and plant substances, and packaged  
            soil amendments require registration prior to being offered  
            for sale or distribution in California. Registrations are for  
            two years, beginning January 1st of an even numbered year and  
            expiring on December 31st of the following odd-numbered year.  
            The initial registration fee is $100 per label, and renewal is  
            $50 per label.

           3)The Fertilizing Materials Inspection Program  is an  
            industry-funded program that ensures consumers receive  
            fertilizing materials that are safe and effective and meet the  
            quality and quantity guaranteed by the manufacturer.  
            Inspectors and investigators located throughout the state  
            conduct routine sampling and inspections; respond to consumer  
            complaints; and enforce the laws and regulations that govern  
            the manufacturing and distribution of fertilizing materials. 

            As part of the Fertilizing Materials Inspection Program, the  
            Fertilizer Research and Education Program (FREP) facilitates  
            research to advance the environmentally safe and agronomically  
            sound use and handling of fertilizer materials. The program is  
            funded through the collection of a license fees, mill tax and  
            registration fees. 

            Current law establishes the formation of a Fertilizer  
            Inspection Advisory Board who advises or makes recommendations  
            to the secretary on matters relating to inspection and  
            enforcement, research and education, annual budget, necessary  
            fees, and regulations required to accomplish the purposes of  
            the law. The board is comprised of eight members who possess a  
            commercial feed license and one public member; all are  
            appointed by the secretary for three-year terms. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081