BILL ANALYSIS
AB 856
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 856 (Caballero)
As Amended September 1, 2009
2/3 vote
-----------------------------------------------------------------
|ASSEMBLY: |76-0 |(June 1, 2009) |SENATE: |34-0 |(September 3, |
| | | | | |2009) |
-----------------------------------------------------------------
Original Committee Reference: AGRI.
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.
The Senate amendments :
1)Require the Secretary (Secretary) of the California Department
of Food and Agriculture (CDFA), in consultation with the
fertilizer board, by January 1, 2012, to review the
definitions of organic input materials for oversights and
implementation issues due to these changes and other products
that might warrant oversight.
2)Require CDFA to post this report on their Web site.
3)Make it a crime to knowingly adulterate organic input
materials with a fine of not more than $5,000 for the first
violation that is unknowing and not more than $15,000 for
subsequent unknowing violations, and not less than $15,000 for
each knowing violation, along with licensure prohibition for
three years.
4)Make technical changes.
EXISTING LAW :
1)Promotes effective and safe use of commercial fertilizers;
assures consumers that fertilizers, minerals, soil amendments,
auxiliary soil and plant substances are properly identified;
and, validates the quality and quantity represented by the
manufacturer.
AB 856
Page 2
2)Provides definitions, licensure requirements for manufacturers
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.
3)States that 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.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, by fiscal year 2011-12, the Organic Fertilizer
Registration and Review Program will have revenues of $442,000
and costs of $416,000 annually, from the Organic Input Materials
Account in the Food and Agriculture Fund.
COMMENTS : Current statutes have not required label review or
registration of manufactured or distributed bulk fertilizers
(over 110 pounds), which is 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 the
National Organic Program.
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
manufacturer. Following this discovery, there was an outcry by
the organic industry and consumers from this episode of deceit.
While no organic farmers 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,
AB 856
Page 3
according to the author.
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
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
FN: 0002931