BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 856|
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THIRD READING
Bill No: AB 856
Author: Caballero (D), et al
Amended: 9/1/09 in Senate
Vote: 27
SENATE ENV. QUALITY COMMITTEE : 4-1, 7/6/09
AYES: Simitian, Runner, Lowenthal, Pavley
NOES: Ashburn
NO VOTE RECORDED: Corbett, Hancock
SENATE FOOD AND AGRICULTURE COMMITTEE : 5-0, 7/7/09
AYES: Florez, Maldonado, Hancock, Hollingsworth, Pavley
SENATE APPROPRIATIONS COMMITTEE : 11-0, 8/24/09
AYES: Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,
Price, Walters, Wolk, Wyland
NO VOTE RECORDED: Runner, Yee
ASSEMBLY FLOOR : 76-0, 6/01/09 - See last page for vote
SUBJECT : Fertilizing material: organic input material
SOURCE : Department of Food and Agriculture
DIGEST : This bill makes various changes to existing law
governing the organic fertilizer industry in this state.
ANALYSIS : Existing law generally regulates fertilizing
materials, as defined, and provides for the licensure of
individuals who manufacture or distribute fertilizing
CONTINUED
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materials.
Existing law provides that there is in the Department of
Food and Agriculture a Fertilizer Inspection Advisory Board
consisting of nine persons appointed by the Secretary of
Food and Agriculture and composed as specified and with
specified functions.
This bill:
1.Requires 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.
2.Requires 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.
3.Requires 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.
4.Requires 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.
5.Requires the inspection of organic input material
manufacturers at least once annually.
6.Includes organic input material within the definition of
fertilizing material.
7.Increases 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.
8.Makes it a misdemeanor to knowingly adulterate an organic
material with ingredients that do not comply with federal
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standards requirements.
9.Authorizes a new source of revenue to be deposited into a
continuously appropriated fund, thereby making an
appropriation.
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 this state. Registrations are for
two years, beginning January 1st of an even-numbered year
and expiring on December 31st of the following odd-numbered
year. While the fee can be raised to $200, the current
registration fee is $100 per label, and renewal is $50 per
label. Current law does not require label review of
manufactured or distributed bulk fertilizers (over 110
pounds).
Fertilizing Materials Inspection Program . The Fertilizing
Materials Inspection Program is an industry-funded program
that is supposed to ensure that 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
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
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of eight members who are subject to licensure pursuant to
the fertilizer laws and regulations and one public member;
all are appointed by the secretary for three-year terms.
This bill attempts to provide representation that is
reflective of the new materials and products under the
purview of DFA. Some argue that the current Board make-up
has representation of producers and users of organic
products, however this might not always be the case and
adding specified slots would ensure adequate
representation. Also, as this Board has advisory authority
to the Secretary on most matters related to the oversight
and enforcement it is even more critical to have
representation.
Organic Oversight Shortcomings . Current law does not
require label review or registration of manufactured or
distributed bulk fertilizers (over 110 pounds) including
many organic fertilizers. 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. This violates the requirements for NOP
standards. The NOP at the USDA, develops, implements, and
administers national production, handling, and labeling
standards for organic agricultural products. The NOP also
accredits the certifying agents (foreign and domestic) who
inspect organic production and handling operations to
certify that they meet USDA standards. Organic food is
produced without using most conventional pesticides,
fertilizers made with synthetic ingredients or sewage
sludge, bioengineering, or ionizing radiation. Organic
meat, poultry, eggs, and dairy products come from animals
that are given no antibiotics or growth hormones. Before a
product can be labeled "organic," a USDA accredited
certifier inspects the farm where the food is grown to make
sure the farmer is following all the rules necessary to
meet USDA organic standards. Companies that handle or
process organic food before it gets to your local
supermarket or restaurant must be certified and inspected
also.
Problems with labeling and organics were raised with DFA in
June 2004 but their investigation was not completed until
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January 2007, at which time DFA ordered the removal of the
product from the organic market. No fines or penalties
were sought from the manufacturer. This incident lead to
the finding that DFA lacked sufficient oversight authority
for organic input materials for fertilizers using organic
labels.
In February 2009, the Senate Committee on Food and
Agriculture held an informational hearing on the issue of
organic fertilizers and DFA's oversight of the fertilizer
industry. At that hearing, DFA referred to AB 856,
although it had not been introduced as of that date, as the
vehicle that would address the organic fertilizer concerns.
DFA developed a strategic plan for its Fertilizer
Materials Inspection Program that was completed in 2008.
This bill reflects many of the statutory gaps that were
discovered by the organics incident referenced previously
and the strategic planning process. Additionally, as a
result of the strategic planning, DFA expanded its staff
for fertilizer materials label review, field inspections,
and manufacturer and distributor licensure. This bill
permits DFA 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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
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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SUPPORT : (Verified 9/1/09)
Department of Food and Agriculture (source)
California Certified Organic Farmers
Department of Finance
Organic Fertilizer Association of California
Western Plant Health Association
ARGUMENTS IN SUPPORT : According to the author's office,
this bill increases the enforcement and regulatory
authority of DFA toward manufacturers of organic
fertilizers including increased penalties and civil
actions. The lack of oversight has resulted in the use of
synthetic substances in the production of fertilizers used
for organic farming.
ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Ammiano, Block, DeVore, Hagman
TSM:nl 9/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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