BILL ANALYSIS �
AB 1625
Page 1
GOVERNOR'S VETO
AB 1625 (Allen)
As Amended August 21, 2012
2/3 vote
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|ASSEMBLY: |52-19|(May 3, 2012) |SENATE: |31-7 |(August 27, |
| | | | | |2012) |
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|ASSEMBLY: |57-22|(August 29, | | | |
| | |2012) | | | |
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Original Committee Reference: AGRI.
SUMMARY : Creates the "Transition to Organic Act" (Act) fund and
program, to financially assist farmers who have transitioned
from conventional farming practices to certified organic farming
practices that are registered with the California Department of
Food and Agriculture (CDFA), with the first year of
certification costs; provides definitions for "conventional
farm" and "person;" creates a fund and source of funds, while
prohibiting any state general funds; authorizes regulations be
created for implementing the Act; and, makes related qualifiers
for the Act.
The Senate amendments add "foundations" to the definition of
"person" and a co-author; and, make a technical correction to
the definition of a "Conventional farm."
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
EXISTING STATE LAW established the state organic program in 1990
for the purpose of protecting the consumers, producers,
handlers, processors and retailers by the establishment of
standards under which fresh agricultural products and foods may
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be labeled and sold as "organic." It provides definitions,
enforcement, program procedures, an advisory board, inspections,
penalties, a certification process, fees, and regulations.
Enforcement activities are coordinated with the Advisory
Committee, the National Organic Program (NOP) within the United
States Department of Agriculture, and the California County
Agricultural Commissioners. The scope of the Act was expanded
in 1992 to include seed fiber, and horticultural products sold
or labeled as organic. In 2002, it was amended to conform to
NOP and renamed California Organic Products Act (COPA).
Current statutes provide that the Secretary of the CDFA may, in
lieu of prosecution, levy a civil penalty per violation of up to
$5,000, as specified. Further, if it is found that the
violation was not intentional, the penalty shall not exceed
$2,500 per violation; statutes provide for due process.
EXISTING FEDERAL LAW provides for the establishment of
regulations of food for humans, food for pets, livestock feed
and raw agricultural products when using, on a principal display
panel (label), the word "organic." The enabling NOP regulations
were finalized and adopted in December 2001 under the
authorization of the federal Organic Foods Product Act, which
was created in 1990. Regulations provide definitions,
enforcement procedures, registration fees for certification and
procedures, requirements for becoming a certifier, and listing
of allowed and prohibited substances that are annually updated.
The federal Organic Certification Cost-Share program provides up
to 75% of the certification cost, up to a maximum of $750.
FISCAL EFFECT : According to the Senate Appropriations
Committee, cost are unknown, likely minor costs annually to the
Transition to Organics Fund for CDFA to administer the Act, plus
an estimated $25,000 annually to the Transition to Organics Fund
for 100 applications for assistance.
COMMENTS : Transition from conventional to organic farming
creates many challenges; it takes at least three years to become
certified organic. Organic or transitioning farmers cannot use
synthetic fertilizers and can only use approved pesticides, and
such products are often more expensive and less familiar to the
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farmer. During this time, the farmer must comply with organic
growing requirements but cannot sell products as organic. The
author states that these financial challenges discourage many
farmers from converting to organic practices. It is estimated
that California has 22% of the nation's certified organic
growers.
Currently, CDFA has an agreement with NOP 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 per
year. CDFA receives $1 million annually to operate the federal
program. Last fiscal year they sent cost-share applications to
3,276 organic registrants; 1,481 responded (45%) and 1,475
received reimbursements totaling $925,027.68 for an average of
$625 each. Six applicants did not have operations within
California and were redirected to the appropriate state in which
they were located. This bill 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 once they have reached certification status.
The federal cost-share program has annual caps, but no lifetime
caps, for applicants to receive reimbursement. This subsidy can
be requested year after year as long as the funds continue to be
appropriated in the federal budget. As written, this bill will
only allow reimbursement of certification costs, up to 25%, for
the first year of certification, limiting the funding needs of
the program.
Previous legislation : AB 1401 (Ma) of 2009, vetoed by the
Governor, created the "Transition to Organics Fund" and the
"Transition to Organics Act," to assist farmers who are
transitioning from conventional farming practices to certified
organic practices, and provided specified definitions and
related authority to operate the program. Governor
Schwarzenegger's veto message stated: "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
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Agriculture when there is no guarantee of a funding mechanism."
GOVERNOR'S VETO MESSAGE :
"This bill would establish a fund to assist persons who are
transitioning conventional farms to certified organic farms, by
subsidizing their organic certification costs not to exceed $250
per farm or $1000 per person.
"I would prefer to see a nongovernmental entity take the lead in
this matter, especially given our current fiscal uncertainties."
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0005933