BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    AB 2137                   HEARING:  6/15/10
          AUTHOR:   Chesbro                     FISCAL:  No
          VERSION:  6/7/10                      CONSULTANT:  John Chandler  

          
                            Fertilizing material: labels.

          BACKGROUND AND EXISTING LAW

          California Department of Food and Agriculture (CDFA) is  
          responsible for the enforcement of a fertilizing materials  
          program under state law that licenses individuals or companies  
          who manufacture or distribute fertilizing materials and  
          registers labels for fertilizing materials that are sold or  
          distributed in California.

          Existing law defines 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."  Existing law  
          defines fertilizer material "labeling" as "all written, printed,  
          or graphic material on, accompanying, or used in promoting the  
          sale of any fertilizing material, including advertisements,  
          brochures, posters, and television and radio announcements."

          Existing law regulates fertilizer labeling and identifies  
          specific requirements for commercial fertilizers (fertilizer  
          containing 5% or more nitrogen (N), phosphoric acid (P), or  
          soluble potash (K) promoting or stimulating plant growth),  
          specialty fertilizers (packaged fertilizer for home and garden  
          use containing 5% or less N, P, or K), agricultural minerals  
          (any substance with 5% or less N, P, and/or K), auxiliary soil  
          and plant substances (any chemical or biological substance or  
          mixture applied that is intended to improve germination, growth,  
          yield, product quality, reproduction, flavor or change in soil),  
          and packaged soil amendments (any substance for the purpose of  
          promoting plant growth or quality by conditioning soils through  
          physical means).  

          Food and Agriculture Code defines compost as a substance derived  
          from the biological decomposition of organic matter which  
          inhibits pathogens, viable weed seeds, and odors.  Cocompost is  
          defined in the Public Contract Code as a blend of compost and  
          biosolids, animal manure, food residue, or fish processing  
          byproducts.  Mulch is defined in the Public Contract Code as  
          material including, but not limited to, lawn clippings and wood  




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          byproducts broken down by chipping and grinding.  

          PROPOSED LAW

          AB 2137 would do the following:

                 Exempt certified laboratory analysis showing nutrient  
               content of compost, cocompost, or mulch from the  
               definitions of "label" and "labeling."

                 Require that a certified laboratory analysis of compost,  
               cocompost, or mulch include a clear statement that the  
               nutrient content of the material may vary from the data in  
               the laboratory analysis.  

                 Require a certified laboratory analysis to be from  
               random samples, as provided in the California Code of  
               Regulations.

                 Specify that a certified laboratory analysis for  
               material from more than one 5,000 cubic yard batch would  
               include analysis on all batches in the material.

                 Sunset the exemption from "label" and "labeling" for  
               certified laboratory analysis showing nutrient content of  
               compost, cocompost, or mulch on January 1, 2014.

          COMMENTS

          1.According to the author, composters have been informed by CDFA  
            that they are not allowed to provide nutrient lab analysis of  
            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 state that the nutrient  
            content of finished compost is subject to significant  
            variability based on the many factors such as time, moisture  
            and compost input matter.  Nutrient levels determined in these  
            voluntarily provided lab analyses fluctuate based on the  
            organic nature of compost and mulch.  This limits the  
            guarantee that nutrient content will remain the same over  
            time.  Without that component to the lab analysis, composters  
            say they will lose customers and in turn harm the industry as  
            a whole would negatively impact a sustainable avenue for  
            organic waste disposal.

          2.Opponents state that plant nutrient products should meet the  





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            claims of any laboratory analysis provided with the product.   
            AB 2137 bypasses the process established in 2009 in AB 856  
            (Caballero) requiring CDFA to review issues relating to  
            organic input materials, including labeling, and post the  
            review on their website.  Further, opponents feel that AB 2137  
            is inappropriate at this time as this issue would be better  
            vetted through the Fertilizer Inspection Advisory Board  
            subcommittee formed to address implementation of AB 856,  
            including labeling claims of plant nutrient products.  Last  
            year AB 856 was signed into law as a result of false and  
            misleading organic claims of a fertilizer producer.  AB 2137  
            would allow composters to present nutrient lab analysis on a  
            product label that may not accurately reflect the nutrient  
            content of the product being sold.

          3.AB 2137 would sunset on January 1, 2014.  According to  
            supporters AB 2137 addresses the expansion of CDFA's authority  
            to regulate label claims of organic and compost materials as  
            passed in AB 856.  AB 856 specified the following:  "The  
            secretary, by January 1, 2012, and in consultation with the  
            board, shall review the definition of organic input materials  
            in Section 14550.5 and identify oversight and implementation  
            issues that may arise or have arisen on account of that  
            definition. The review shall also include an examination of  
            materials not currently regulated under this definition that  
            may warrant oversight by the department so as to protect the  
            state's agricultural industry, including the organic industry,  
            and recommendations for any necessary statutory changes."  The  
            committee may wish to consider if the sunset provision of AB  
            2137 should be a little more consistent with the January 1,  
            2012, report from CDFA.

          4.The Senate Rules Committee has doubled referred this bill to  
            the Senate Environmental Quality Committee as the second  
            committee of referral.  Therefore, if this measure is approved  
            by this committee, the motion should include an action to  
            re-refer the bill to the Senate Committee on Environmental  
            Quality.

          PRIOR ACTIONS

          Assembly Floor 47-19
          Assembly Agriculture  5-2

          SUPPORT
          
          Alameda County Waste Management Authority





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          Cagwin & Dorward Landscape Contractors
          California Bio-Mass, Inc.
          California Certified Organic Farmers
          California Compost Coalition
          California Refuse Recycling Council
          Californians Against Waste
          City of San Diego Environmental Services Department
          Cold Canyon Landfill
          Comgro Soil Amendment Inc.
          Community Alliance of Family Farmers
          Department of Environment, City and County of San Francisco
          Humboldt Waste Management Authority
          Nortech
          Recology
          Regional Council of Rural Counties
          Republic Services, Inc.
          Tulare County Compost & Biomass, Inc.
          Upper Valley Disposal Recycling
          Z-Best Products

          OPPOSITION
          
          California Department of Food and Agriculture