BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
856 (Caballero)
Hearing Date: 8/24/2009 Amended: 8/19/2009
As
proposed to be amended
Consultant: Bob Franzoia Policy Vote: EQ 4-1 F&A 5-0
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BILL SUMMARY: AB 856, relating to fertilizers and organic input
materials, would do the following:
- Require the Secretary of Food and Agriculture, by January 1,
2012, and in consultation with the Fertilizer Inspection
Advisory Board, to review issues relating to organic input
materials and to post the review on the Department of Food and
Agriculture Web site.
- Require the secretary, prior to issuing a license, to require
verification that the applicant is a manufacturer or distributor
of fertilizer material and increase the license fee up to $300.
- Require registration of each label for organic input material
and require registration fees be deposited into the Organic
Input Materials Account (OIMA), which this bill would create in
the Food and Agriculture Fund, and would make these funds
available upon appropriation.
- Require the registration fee for organic input material not to
exceed $500 per product with the revenue deposited into the
OIMA, and require that registration may not be issued without a
current license.
- Require the inspection of organic input material manufacturers
at least once annually.
- Include organic input material within the definition of
fertilizing material.
- Increase fines relating to fertilizing materials from not more
than $500 to not more than $1,000 for a first violation and for
each subsequent violation.
- Make it a misdemeanor to knowingly adulterate an organic
material with ingredients that do not comply with federal
standards requirements.
- Authorize a new source of revenue to be deposited into a
continuously appropriated fund, thereby making an appropriation.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Organic fertilizer registration
and review program $208 $416 $416 Special*
- revenue ($221)
($442) ($442)
* Organic Input Materials Account in the Food and Agriculture
Fund
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STAFF COMMENTS: This bill would define organic input material as
a bulk or packaged commercial fertilizer, agricultural mineral,
auxiliary soil and plant substance specialty fertilizer, or soil
amendment, excluding pesticide used on organic crops in
compliance with the National Organic Program. Compost materials
that make no nutrient claim or guarantee are excluded.
The proposed amendments return this bill to the July 1, 2009
version, with the following changes:
Page 2
AB 856 (Caballero)
- Returns the Fertilizer Inspection Advisory Board to current
law.
- Only revenue from registration fees on organic material is
deposited in the OIMA.
- Revises penalties added by this bill to be consistent with
other penalty provisions in current law.
This bill would deposit penalty revenue, which are generally
deposited into the General Fund, into the continuously
appropriated Food and Agriculture Fund. Consistent with the way
the deposit of penalty revenues are administered for regulatory
entities within the Department of Consumer Affairs (see Business
and Professions Code 207) staff recommends this bill be amended
to require these revenues be available for expenditure only upon
appropriation by the Legislature.