BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2137
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          Date of Hearing:   April 21, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                   AB 2137 (Chesbro) - As Amended:  April 21, 2010
           
          SUBJECT  :  Fertilizing material: labels. 

           SUMMARY  :  Adds to the definitions of fertilizing material labels  
          and labeling an exemption for certified lab (lab) analysis that  
          show nutrient contents of compost, cocompost or mulch.  Requires  
          a lab analysis showing the nutrient contents of compost,  
          cocompost or mulch, to clearly state that the finished product  
          may vary from the lab analysis.  Contains a sunset provision  
          that will repeal the added definitions from law on January 1,  
          2015.

           EXISTING LAW:  

          1)Defines a fertilizing material label as "the display of all  
            written, printed, or graphic matter on the immediate container  
            of, or a statement, including the guaranteed analysis,  
            accompanying fertilizing material." (Food and Agriculture Code  
            (FAC) Section 14540)  

          2)Defines a fertilizing material labeling as "all written,  
            printed, or graphic matter on, accompanying, or used in  
            promoting the sale of any fertilizing material, including  
            advertisements, brochures, posters, and television and radio  
            announcements." (FAC Section 14542)  

          3)Allows for misdemeanor and civil penalties for mislabeling  
            ranging from $1,000 to $5,000 for each offense.  (FAC Section  
            14651-14651.5)

          4)Requires the California Department of Food and Agriculture  
            (CDFA) to evaluate organic input materials, which includes  
            compost, and report if and how these materials should be  
            regulated.  The report is due by January 1, 2012.  (FAC  
            Section 14853.5)

          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  








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            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) 

          6)Defines compost, for the purpose of fertilizer, 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.   
          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 CDFA  
          that 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  








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          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 say this  
          bill is contrary to the intent of AB 856.  Furthermore,  
          opponents state the bill is inappropriate until the stakeholder  
          committee has reviewed the issue and made its recommendations to  
          CDFA.

          Compost is defined for the purpose of fertilizer (FAC Section  
          14525).  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) 

          The committee may wish to consider if this bill's labeling  
          exemption for compost, cocompost and mulch is the correct public  
          policy before CDFA has completed its AB 856 report on the  
          regulation of organic inputs, or if this bill is a reasonable  
          accommodation for the compost industry, while CDFA develops the  
          organic inputs regulations with the stakeholders.

          The committee may wish to consider, in order to protect compost  
          consumers, that the lab analysis is from random compost samples.  
           

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

          REGISTERED SUPPORT / OPPOSITION  :   








                                                                  AB 2137
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           Support 

          California Bio-Mass, Inc.
          California Compost Coalition
          Californians Against Waste
          Community Recycling & Resource Recovery
          Lopez Ag Service
          Nortech Waste
          Recology 
          Republic Services, Inc.
          Tracy Delta Solid Waste Management, Inc. 
          Tulare County Compost and Biomass, Inc.
          Zanker Road Resource Management, Ltd.
          Z-Best Products

           Opposition 
           
          California Farm Bureau Federation
          Western Plant Health Association
           

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