BILL ANALYSIS
SENATE FOOD and AGRICULTURE COMMITTEE
Senator Dean Florez, Chairman
BILL NO: AB 1401 HEARING: 7/7/09
AUTHOR: Ma FISCAL: Yes
VERSION: 5/5/09 CONSULTANT: John Chandler
Transition to Organics Act
BACKGROUND AND EXISTING LAW
The California Organic Program is responsible for enforcement of
the federal Organic Foods Production Act of 1990 and the
California Organic Products Act of 2003. These statutes protect
consumers, producers, handlers, processors, and retailers by
establishment of standards under which fresh agricultural
products/foods may be labeled and/or sold as "organic".
Enforcement activities are coordinated with the California
Organic Products Advisory Committee, the USDA, and California
county agricultural commissioners. Activities include program
administration, county biologist training, initiation of
complaint investigation, registration of private certification
organizations, and acting as an information resource on the
California Organic Products Act and California's organic
industry.
The California Organic Products Advisory Committee advises
California Department of Food and Agriculture (CDFA) on state
enforcement and management of the California Organic Program.
The committee consists of 15 members: six producers, one
wholesale distrubuter, two technical representatives, one
environmental representative, two processor representatives, two
consumer representatives, and one retail representative.
The National Organic Certification Cost-Share Program,
authorized by the Food, Conservation and Energy Act of 2008,
allocates funds in proportion to the number of organic producers
and handlers within each state. The states in turn reimburse
each eligible producer or handler up to 75 percent of its
organic certification costs, not to exceed $750.
To be eligible for reimbursement, an organic production or
handling operation must be located within a qualified state,
comply with the USDA National Organic Program regulations for
organic production or handling and have received certification
or continuation of certification by a USDA-accredited certifying
agent.
PROPOSED LAW
AB 1401 - Page 2
AB 1401 will establish the Transition To Organics Fund (fund),
to be administered by CDFA, consisting of money from federal,
industry, and citizen sources. The features of the fund are as
follows:
The fund will be administered by CDFA which may adopt
regulations for implementation of the fund.
The fund will consist of money from federal, industry,
and citizen sources, not General Fund money.
The fund shall provide assistance to persons
transitioning their farms from uncertified to certified
organic production by offering reimbursement of 25% of
costs for obtaining organic certification, but not more
that $250 for any transitioning farm.
The fund shall specify that CDFA administrative costs
may not exceed 10% of total fund money expended.
The fund shall authorize CDFA to administer disbursement
from the fund in coordination with the federal Organic
Certification Cost-Share Program.
The fund shall specify that CDFA must maintain records
of all contributions and disbursements from the fund and
make those records available to the California Organic
Products Advisory Committee.
COMMENTS
1.Proponents state farmers wishing to transition to certified
organic face a number of financial challenges when certifying
their operations as organic under the National Organic Program
(NOP). The transition is a three-year process in which the
grower farms as an organic operation while not being able to
sell produce as organic. This, as well as the certifying
requirements, can create a cost hurdle to transitioning to
certified organic. AB 1401 provides a vehicle for the industry
and citizens who wish to promote and support organic
agriculture to assist farmers making the organic conversion.
Similar to the federal NOP Cost-Share program, AB 1401 will
provide needed funds to growers during their transition
period, helping to expand certified organic produce
availability to consumers by increasing California organic
farms.
AB 1401 - Page 3
PRIOR ACTIONS
Assembly Floor 60-16
Assembly Appropriations12-4
Assembly Agriculture 8-0
SUPPORT
Catholic Healthcare West
Natural Products Association West
Organic Consumers Association
Organic Pastures Dairy Company
3 individuals
OPPOSITION
None received