BILL ANALYSIS
AB 1401
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GOVERNOR'S VETO
AB 1401 (Ma)
As Amended September 4, 2009
2/3 vote
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|ASSEMBLY: |60-16|(May 28, 2009) |SENATE: |23-12|(September 9, |
| | | | | |2009) |
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|ASSEMBLY: |62-14|(September 10, 2009) |
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Original Committee Reference: AGRI.
SUMMARY : Creates the Transition to Organics Fund (Fund) and the
Transition to Organic Act (Act), to assist farmers who are
transitioning from conventional farming practices to certified
organic practices and provides specified definitions and other
related authority to operate the program.
The Senate amendments delete the prohibition against
transferring Fund balances to any other account; require the
Fund to be appropriated by the Legislature; and, make the
payment of administrative expenses based upon the determination,
by the Director of Finance, that sufficient funds are available.
Change the maximum total payments made to a person per year to
$1,000.
EXISTING FEDERAL LAW provides an Organic Certification
Cost-Share program for up to 75% of the certification cost, or a
maximum of $750.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
AB 1401
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Committee, it is estimated that the $25,000 would be needed to
cover 100 applications and there is potential minor costs that
would not be reimbursed.
COMMENTS : Transitioning from conventional to organic farming
creates many challenges; it takes at least three years to become
certified organic. During the transition, the farmer must
comply with organic growing requirements but cannot sell
products as organic. Transitioning or organic farmers cannot
use synthetic fertilizers and only approved pesticides. The
sponsors state that these challenges discourage many farmers
from converting to organic practices.
Currently, the California Department of Food and Agriculture has
an agreement with the National Organic Program to administer the
federal Cost-Share Program, which can provide to organic
farmers, processors and handlers who are eligible, up to 75% or
a maximum of $750 of their costs to be certified as organic.
This is funded by a limited pool of federal funds which is
estimated to be expended over the next two years. AB 1401
proposes to create a similar program to the federal cost-share
program to encourage farmers interested in transitioning to
organic practices and provide an economic incentive to become
certified organic, but AB 1401 proposed the incentive for only
the first year after the certification and to a maximum of $250.
GOVERNOR'S VETO MESSAGE :
"While I support the author's goal to assist individuals
converting to organic farming, I cannot support establishing an
assistance program and expanding the workload of the California
Department of Food and Agriculture when there is no guarantee of
a funding mechanism."
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
AB 1401
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