BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2137
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                AB 2137 (Chesbro) - As Introduced:  February 18, 2010
           
          SUBJECT  :  Fertilizing material: misbranding: labels. 

           SUMMARY  :  Provides an exemption to labeling claims under  
          California fertilizer misbranding laws for certified lab (lab)  
          analysis that show nutrient contents of compost, cocompost or  
          mulch.   

           EXISTING LAW  prohibits a person from distributing misbranded  
          fertilizing materials and provides specified conditions under  
          which a fertilizing material will be deemed to be misbranded.   
          Violations for misbranding range from $1,000 to $5,000 for each  
          offense.  (Food and Agriculture Code (FAC) Section 14681,  
          14651-14651.5)

          Requires CDFA to evaluate organic input materials, which include  
          compost, and report if and how these materials should be  
          regulated.  The report is due by January 1, 2012.  (FAC Section  
          14853.5)

          Defines compost as a controlled biological decomposition of  
          organic materials; cocompost as a blend of compost and  
          biosolids, animal manure, food residue or fish processing  
          byproducts; and, mulch as material, including, but not limited  
          to, lawn clippings and wood byproducts, broken down by chipping  
          and grinding.  Compost, cocompost and mulch must also be  
          produced by a public or private supplier that is in compliance  
          with the Department of Resources, Recycling and Recovery's  
          composting operations regulatory requirements. (Public Contract  
          Code Section (PCC) Section 12207) 

          For the purpose of fertilizer, defines compost as biologically  
          stable material derived from the composting process. (FAC  
          Section 14525)

           FISCAL EFFECT  :  This bill is keyed non-fiscal by Legislative  
          Counsel.

           COMMENTS  :  According to the author, composters regularly provide  
          independent analysis of the nutrient content in their compost.   








                                                                  AB 2137
                                                                  Page  2

          The results of recent lab analyses are provided to customers as  
          an indication of nutrient levels in the compost.  This is done  
          on a voluntary basis and in concurrence with a variety of  
          certification programs.  Lab analysis also tests for pathogens  
          and heavy metals, per the United State's Environmental  
          Protection Agency's Class A standards.  

          Supporters state that the nutrient content of finished compost  
          is subject to significant variability based on the many factors.  
           Nutrient levels determined in these voluntarily-provided lab  
          analyses fluctuate.  This limits the guarantee that nutrient  
          content will remain the same over time.

          According to the author, composters have been informed by the  
          California Department of Food and Agriculture (CDFA) they are  
          not allowed to provide nutrient lab analysis with bulk compost  
          sales without that lab analysis representing a labeling claim.   
          Once a labeling claim has been made, a product must be  
          registered with CDFA and the nutrient levels must remain  
          consistent.  Supporters maintain this is a difficult standard  
          for compost to maintain, due to the nature of the product.  This  
          action is a result of AB 856 (Caballero), Chapter 257, Statutes  
          of 2009, which was responding to a lack of oversight by CDFA in  
          dealing with the organic fertilizers industry. 

          Supporters state the farmer and nursery customers  
          request/require the full analysis of nutrient information, not  
          just the report on pathogens and heavy metals.  It is the  
          nutrient portion of the lab analysis that provides the most  
          value to the compost customers.  Without that component to the  
          lab analysis, composters say they will lose customers and in  
          turn harm the industry as a whole.  This is the reason why  
          industry and the author state the bill is necessary.

          Opponents state that plant nutrient products must meet the  
          nutrient guarantees of lab analysis provided to growers and  
          agricultural retailers.  To expect growers or retailers to  
          differentiate between when a lab analysis is being presented as  
          a guarantee and when it is not, is unfair to consumers and will  
          contribute to confusion in the marketplace.  Opponents also say  
          this bill is inappropriate until the stakeholder committee has  
          reviewed the issue and made its recommendations to CDFA and is  
          contrary to the intent of AB 856.

          Compost is defined in FAC twice:  for the purpose of fertilizer  








                                                                  AB 2137
                                                                  Page  3

          (FAC Section 14525) and for the purpose of pesticide  
          contamination of compost (FAC Section 13190).  FAC has no  
          specific definition for cocompost or mulch.  The definitions of  
          compost, cocompost and mulch used in this bill are related to  
          the State Agency Buy Recycled Campaign and are to be used in  
          state purchasing programs (PCC Section 12153-12217).   
          Furthermore, PCC Section 12207 definitions mean items used for  
          soil amendments, erosion controls, soil toppings, ground covers,  
          weed suppressants, and organic materials used for water  
          conservation.  While soil amendments are listed as fertilizing  
          materials in FAC (FAC Section 14533), they are defined as any  
          substance used for plant growth or crop improvement through  
          solely physical means. (FAC Section 14552) 

          1)The committee may wish to consider if the FAC definition for  
            compost as it relates to fertilizer or the PCC definition as  
            it relates to soil amendments is better suited to fulfill the  
            purpose of California's fertilizer misbranding laws.  

          2)If PCC definition is better suited for the purpose of this  
            law, the committee may wish to consider adding the PCC  
            definitions of compost, cocompost and mulch to FAC.

          CDFA's Fertilizer Inspection Advisory Board (FIAB) is forming a  
          committee to evaluate organic input materials, which include  
          compost, and report if and how these materials should be  
          regulated.  The report is due by January 1, 2012, and may affect  
          compost, cocompost and mulch products.  The committee may wish  
          to consider placing a sunset date in this bill of December 31,  
          2015.  With a sunset, the Legislature will revisit this issue  
          again after CDFA and FIAB have issued its report and the  
          industry has had a chance to review and respond.  

          On page 2, lines 23-24 state "does not constitute a label claim  
          for purpose of this chapter."  This may be overly broad and have  
          unintended consequences.  The committee may wish to consider the  
          following language to cover the stated intent of the author:   
          "  is not deemed a misbranded label for the purpose of this  
          article.  "

           PREVIOUS LEGISLATION  :  AB 856 expanded definitions and added a  
          new definition to CDFA's fertilizer program statutes, adding new  
          requirements, fees and penalties.  

           








                                                                 AB 2137
                                                                  Page  4



          REGISTERED SUPPORT / OPPOSITION  :   

           Support 

           California Bio-Mass, Inc
          California Compost Coalition
          Californians Against Waste
          Nortech Waste
          Recology 
          Tracy Delta Solid Waste Management, Inc 
          Tulare County Compost and Biomass, Inc
          Zanker Road Resource Management, Ltd.
          Z-Best Products

           Opposition 
           
          Western Plant Health Association
           

          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084