Bill Text: CA AB1826 | 2015-2016 | Regular Session | Chaptered


Bill Title: Organic products.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-21 - Chaptered by Secretary of State - Chapter 403, Statutes of 2016. [AB1826 Detail]

Download: California-2015-AB1826-Chaptered.html
BILL NUMBER: AB 1826	CHAPTERED
	BILL TEXT

	CHAPTER  403
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 21, 2016
	PASSED THE SENATE  AUGUST 17, 2016
	PASSED THE ASSEMBLY  AUGUST 23, 2016
	AMENDED IN SENATE  JUNE 30, 2016
	AMENDED IN SENATE  JUNE 15, 2016
	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  APRIL 21, 2016
	AMENDED IN ASSEMBLY  APRIL 5, 2016
	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Mark Stone

                        FEBRUARY 8, 2016

   An act to amend Sections 46000, 46001, 46002, 46003, 46004.1,
46007, 46010.5, 46012, 46013.1, 46013.2, 46014.1, 46014.2, 46014.4,
46014.6, 46016.4, 46016.5, 46021, and 46028 of, and to add Section
46003.2 to, the Food and Agricultural Code, relating to organic
products.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1826, Mark Stone. Organic products.
   Existing law, the California Organic Products Act of 2003 (the
act), requires the Secretary of Food and Agriculture, county
agricultural commissioners, and the Director of the State Department
of Public Health to enforce state and federal laws governing the
production, labeling, and marketing of organic products, as
specified. Existing federal law establishes the National Organic
Program which requires operations that produce or handle organic
agricultural products to comply with federal organic standards and be
certified by a certifying agent, as specified.
   This bill would revise and recast the California Organic Products
Act of 2003 as the California Organic Food and Farming Act and would
set forth the purposes of the act.
   Existing law establishes the California Organic Products Advisory
Committee, comprised of 15 members, to advise the secretary on his or
her responsibilities under the act.
   This bill would revise the composition of the advisory committee
and would expand the scope of the advisory committee's duties to
include advising the secretary on education, outreach, and technical
assistance for producers. The bill would authorize the secretary, in
consultation with the advisory committee, to establish procedures for
and conduct certain activities, including supporting organic
agriculture through education, outreach, and other programmatic
activities. The bill would specify that penalties collected by the
secretary and fees collected by county agricultural commissioners
pursuant to the act's provisions shall be expended to fulfill the
responsibilities authorized under the act, and would exempt from the
Administrative Procedure Act the adoption, amendment, or repeal of a
registration fee.
   Existing law requires every person engaged in the state in the
production or handling of raw agricultural products sold as organic
to register with the county agricultural commissioner and specifies
the information required on the registration form. Existing law
requires a certification organization that certifies product in the
state as organic to register with the secretary and to pay an annual
registration fee based on the number of clients the organization has
certified, up to a maximum of $250.
   This bill would require those persons to instead register with the
secretary, would revise the registration fees required to be paid by
certain registrants, and would revise the information required on
the registration form. The bill would also revise the type of
information and records that persons who produce, handle, or retail
products sold as organic are required to keep or make available. The
bill would increase the maximum annual registration fee for
certification agencies from $250 to $500.
   The bill would define certain terms for purposes of the act's
provisions and would make technical and conforming changes to various
code sections. To the extent the bill would impose additional duties
on county agricultural commissioners, the bill would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The California Organic Products Act of 1990 and the federal
Organic Foods Production Act of 1990 were established to regulate
organic agricultural products. Improved coordination between federal
and state organic program enforcement will benefit producers and
consumers.
   (b) California is the "Capital of Organic Agriculture" in the
United States and, in 2014, contributed 40 percent to the nation's
$5.5 billion in organic crop and livestock sales. In 2015, California
also realized over $12.7 billion in gross organic product
sales--$2.9 billion in organic farm sales and $9.8 billion in organic
processed products. Nationally, sales of all organic products
reached over $43 billion in 2015.
   (c) Organic soil-building practices enhance biodiversity, conserve
natural resources, and contribute other public and environmental
health benefits.
   (d) Demand for organic products grew by 11 percent in 2015, far
outpacing domestic supply. Streamlining and updating the state
organic program will improve California competitiveness in this vital
sector of the state's agricultural economy.
  SEC. 2.  Section 46000 of the Food and Agricultural Code is amended
to read:
   46000.  (a) This chapter and Article 7 (commencing with Section
110810) of Chapter 5 of Part 5 of Division 104 of the Health and
Safety Code shall be known and may be cited as the California Organic
Food and Farming Act.
   (b) The secretary and county agricultural commissioners under the
supervision and direction of the secretary shall enforce regulations
adopted by the National Organic Program (NOP) (Section 6517 of the
federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et
seq.)), and Article 7 (commencing with Section 110810) of Chapter 5
of Part 5 of Division 104 of the Health and Safety Code and this act
applicable to any person selling products as organic.
  SEC. 3.  Section 46001 of the Food and Agricultural Code is amended
to read:
   46001.  This chapter shall be interpreted in conjunction with
Article 7 (commencing with Section 110810) of Chapter 5 of Part 5 of
Division 104 of the Health and Safety Code and regulations adopted by
the National Organic Program (Section 6517 of the federal Organic
Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)).
  SEC. 4.  Section 46002 of the Food and Agricultural Code is amended
to read:
   46002.  (a) All organic food or product regulations and any
amendments to those regulations adopted pursuant to the federal
Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.),
that are in effect on the date this bill is enacted or that are
adopted after that date, shall be the organic food and product
regulations of this state.
   (b) The secretary may, by regulation, prescribe conditions under
which organic foods or other products not addressed by the National
Organic Program may be sold in this state.
   (c) The purpose of the act shall be to do both of the following:
   (1) Promote coordination of federal, state, and local agencies in
implementing the National Organic Program.
   (2) Support organic agriculture through education, outreach, and
other programmatic activities.
   (d) The secretary may receive and expend state and federal funds
for activities authorized under this act.
  SEC. 5.  Section 46003 of the Food and Agricultural Code is amended
to read:
   46003.  (a) The secretary shall establish an advisory committee,
which shall be known as the California Organic Products Advisory
Committee, for the purpose of advising the secretary with respect to
his or her responsibilities under this act.
   (b) The advisory committee shall advise the secretary on
education, outreach, and technical assistance for producers.
   (c) The advisory committee shall be comprised of 15 members. Each
member may have an alternate. Six members and their alternates shall
be producers, at least one of whom shall be a producer of meat, fowl,
fish, dairy products, or eggs. Two members and their alternates
shall be processors, one member and his or her alternate shall be
wholesale distributors, one member and his or her alternate shall be
representatives of an accredited certifying agency operating in the
state, one member and his or her alternate shall be consumer
representatives, one member and his or her alternate shall be
environmental representatives, two members and their alternates shall
be technical representatives with scientific credentials related to
agricultural chemicals, toxicology, or food science, and one member
and his or her alternate shall be retail representatives. Except for
the consumer, environmental, and technical representatives, the
members of the advisory committee and their alternates shall have
derived a substantial portion of their business income, wages, or
salary as a result of services they provide that directly result in
the production, handling, processing, or retailing of products sold
as organic for at least three years preceding their appointment to
the advisory committee. The consumer and environmental
representatives and their alternates shall not have a financial
interest in the direct sales or marketing of the organic product
industry and shall be members or employees of representatives of
recognized nonprofit organizations whose principal purpose is the
protection of consumer health or protection of the environment. The
technical representatives and their alternates shall not have a
financial interest in the production, handling, processing, or
marketing of the organic products industry. The technical
representatives may be involved in organic research or technical
review providing they have no financial benefit from results of the
research project or technical review.
   (d) An alternate member shall serve at an advisory committee
meeting only in the absence of, and shall have the same powers and
duties as, the category whom he or she is representing as alternate,
except for duties and powers as an officer of the committee. The
number of alternates present who are not serving in the capacity of a
member shall not be considered in determining a quorum.
   (e) An alternate member may serve at an advisory committee
subcommittee meeting only in the absence of, and shall have the same
powers and duties as, the member whom he or she is designated as
alternate, except for duties and powers as a subcommittee
chairperson.
   (f) The members of the advisory committee and their alternates
shall be reimbursed for the reasonable expenses actually incurred in
the performance of their duties, as determined by the advisory
committee and approved by the secretary.
   (g) The secretary or his or her representative, the State Public
Health Officer or his or her representative, and a county
agricultural commissioner may serve as ex officio members of the
advisory committee.
  SEC. 6.  Section 46003.2 is added to the Food and Agricultural
Code, to read:
   46003.2.  (a) To the extent that funds are available, the
secretary, in consultation with the California Organic Products
Advisory Committee, may establish procedures for and conduct all of
the following activities:
   (1) Receive and investigate complaints filed by any person
concerning suspected acts of noncompliance with this act or federal
organic standards.
   (2) Conduct periodic spot inspections.
   (3) Conduct periodic prohibited substance testing on products
labeled as organic.
   (4) Conduct farmers' market inspections.
   (5) Support organic agriculture through education, outreach, and
other programmatic activities.
   (6) Reimburse investigation, enforcement, and market surveillance
expenses, including expenses incurred by any county agricultural
commissioner for actions conducted pursuant to this chapter.
   (7) Conduct hearings, appeals, mediation, or settlement
conferences from actions taken to enforce this chapter.
   (b) Investigation, inspection, and prohibited material testing
reports shall be forwarded to the secretary for any required
enforcement action.
   (c) The secretary shall coordinate activities authorized under
this section with other county and state licensing, registration,
inspection, and fee collection procedures applicable to registrants.
  SEC. 7.  Section 46004.1 of the Food and Agricultural Code is
amended to read:
   46004.1.  Unless defined pursuant to the National Organic Program
(NOP), the following words and phrases, when used in this act, shall
have the following meanings:
   (a) "Accredited certification agency" means an entity accredited
by the United States Department of Agriculture to certify operations
as compliant with the federal organic standards.
   (b) "Act" means the California Organic Food and Farming Act. It
also means the federal Organic Foods Production Act of 1990 (7 U.S.C.
Sec. 6501 et seq.) and the regulations adopted pursuant to the
federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et
seq.).
   (c) "Categorical products" means categories of products of like
commodity, such as apples, salad products, etc., and does not require
variety specific information.
   (d) "Certified operation" means a producer, handler, or retail
food establishment that is certified organic by an accredited
certification agency as authorized by the federal Organic Foods
Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and implemented
pursuant to the National Organic Program.
   (e) "Data" means the information provided annually by persons
registered under the act, including certified organic acreage and
gross sales of certified organic products.
   (f) "Department" means the State Department of Public Health.
   (g) "Director" means the director and State Public Health Officer
for the State Department of Public Health.
   (h) "Enforcement authority" means the governmental unit with
primary enforcement jurisdiction, as provided in Section 46008.
   (i) "Exempt handler" means a handling operation that sells
agricultural products as "organic" but whose gross agricultural
income from organic sales totals five thousand dollars ($5,000) or
less annually.
   (j) "Exempt operation" means a production or handling operation
that sells agricultural products but is exempt from certification
under federal organic standards.
   (k) "Exempt producer" means a production operation that sells
agricultural products as "organic" but whose gross agricultural
income from organic sales totals five thousand dollars ($5,000) or
less annually.
   (l) "Federal organic standards" means the federal regulations
governing production, labeling, and marketing of organic products as
authorized by the federal Organic Foods Production Act of 1990 (7
U.S.C. Sec. 6501 et seq.) and implemented pursuant to the National
Organic Program (7 C.F.R. 205 et seq.), and any amendments to the
federal act or regulations made subsequent to the enactment of this
chapter.
   (m) "Handle" means to sell, process, or package agricultural
products.
   (n) "Handler" means any person engaged in the business of handling
agricultural products, but does not include final retailers of
agricultural products that do not process agricultural products.
   (o) "Handling operation" means any operation or portion of an
operation, except final retailers of agricultural products that do
not process agricultural products that (1) receives or otherwise
acquires agricultural products, and (2) processes, packages, or
stores agricultural products.
   (p) "Inspection" means the act of examining and evaluating
production or handling operation to determine compliance with state
and federal law.
   (q) "National Organic Program" or "NOP" means the National Organic
Program established pursuant to the federal Organic Foods Production
Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and the regulations adopted
for implementation.
   (r) "Person" means any individual, firm, partnership, trust,
corporation, limited liability company, company, estate, public or
private institution, association, organization, group, city, county,
city and county, political subdivision of this state, other
governmental agency within the state, and any representative, agent,
or agency of any of the foregoing.
   (s) "Processing" means cooking, baking, heating, drying, mixing,
grinding, churning, separating, extracting, cutting, fermenting,
eviscerating, preserving, dehydrating, freezing, or otherwise
manufacturing, and includes packaging, canning, jarring, or otherwise
enclosing food in a container.
   (t) "Producer" means a person who engages in the business of
growing or producing food, fiber, feed, and other agricultural-based
consumer products.
   (u) "Prohibited substance" means a substance the use of which in
any aspect of organic production or handling is prohibited or not
provided for in state or federal law.
   (v) "Residue testing" means an official or validated analytical
procedure that detects, identifies, and measures the presence of
chemical substances, their metabolites, or degradation products in or
on raw or processed agricultural products.
   (w) "Retail food establishment" means a restaurant, delicatessen,
bakery, grocery store, or any retail outlet with an in-store
restaurant, delicatessen, bakery, salad bar, or other eat-in or
carry-out service of processed or prepared raw and ready-to-eat-food.

   (x) "Secretary" means the Secretary of Food and Agriculture.
   (y) "State Organic Program" or "SOP" means a state program that
meets the requirements of Section 6506 of the federal Organic Foods
Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.), is approved by
the Secretary of the United States Department of Agriculture, and is
designed to ensure that a product that is sold or labeled as
organically produced under the federal Organic Foods Production Act
of 1990 (7 U.S.C. Sec. 6501 et seq.) is produced and handled using
organic methods.
   (z) "USDA" means the United States Department of Agriculture.
  SEC. 8.  Section 46007 of the Food and Agricultural Code is amended
to read:
   46007.  (a) Any penalties collected by the secretary and any fees
collected by a county agricultural commissioner pursuant to this
chapter shall be deposited in the Department of Food and Agriculture
Fund and, upon appropriation by the Legislature, shall be expended
solely to fulfill the responsibilities authorized under this chapter.

   (b) Any fees and penalties collected by a county agricultural
commissioner pursuant to Section 46017 and any other penalties
collected by a county agricultural commissioner pursuant to this
chapter shall be paid directly to the county agricultural
commissioner and expended to fulfill the responsibilities of the
county agricultural commissioner, as specified in this chapter.
   (c) The secretary shall establish a specific minimum amount to be
reimbursed to each county agricultural commissioner per registrant in
that county. This reimbursement shall not limit the amount of the
reimbursement otherwise made to county commissioners for their
enforcement activities.
  SEC. 9.  Section 46010.5 of the Food and Agricultural Code is
amended to read:
   46010.5.  (a) No fee established and collected pursuant to this
chapter shall exceed the secretary's costs or the county agricultural
commissioner's costs, as the case may be, of regulating and
enforcing the provisions of this chapter related to the function for
which the fee is established.
   (b) The fees established and collected pursuant to this chapter
may be expended, under the advisement of the California Organic
Products Advisory Committee, for activities authorized under this
chapter, including assisting operations in achieving certification,
conducting education and outreach, entering research and development
partnerships, and addressing production or marketing obstacles to the
growth of the organic sector.
  SEC. 10.  Section 46012 of the Food and Agricultural Code is
amended to read:
   46012.  Article 14 (commencing with Section 43031) of Chapter 2
applies to any food product that is represented as organically
produced by any person who is not registered as required by this
chapter or any product that is not in compliance with this chapter or
Article 7 (commencing with Section 110810) of Chapter 5 of Part 5 of
Division 104 of the Health and Safety Code. The secretary,
agricultural commissioners, and the director shall be considered
enforcing officers for purposes of those provisions of law under
their respective jurisdiction.
  SEC. 11.  Section 46013.1 of the Food and Agricultural Code is
amended to read:
   46013.1.  (a) Every person engaged in this state in the production
or handling of raw agricultural products sold as organic shall
register with the secretary before the first sale of the product. All
processors of organic agriculturally derived products that are not
required to be registered as outlined in subdivision (b) shall
register with the secretary. Each registrant shall annually renew the
registration with the secretary unless no longer engaged in the
activities requiring the registration.
   (b) Every person engaged in this state in the processing or
handling of processed products pursuant to Section 110460 of the
Health and Safety Code, and pet food pursuant to Section 18653, and
cosmetics pursuant to Section 111795 of the Health and Safety Code,
including processors of alcoholic beverages, fish, and seafood, shall
register with the State Public Health Officer.
   (c) Registration pursuant to this section shall be on a form
either provided by the secretary or approved by the secretary and
shall be valid for a period of one calendar year from the date of
validation by the secretary of the completed registration form or for
a period determined by the secretary to promote coordination with
organic certification applications and renewals, organic
certification cost share programs, and other state program
registration.
   (d) The information provided on the registration form shall
include all of the following:
   (1) The nature of the registrant's business, including the
categorical products produced, handled, or processed that are sold as
organic. For the purposes of registration, organic products shall be
reported in accordance with the following specified categories
unless the secretary, in consultation with the California Organic
Products Advisory Committee, establishes different categories:
   (A) Citrus.
   (B) Fruits, excluding citrus.
   (C) Livestock or dairy.
   (D) Nuts.
   (E) Vegetables.
   (F) Other, which includes, but is not limited to, apiculture,
organic fallow ground, herbs, mushrooms, cut flowers, and nursery.
   (2) The address or assessor's parcel number of the precise
location or locations where the products are produced, processed, or
handled.
   (3) Sufficient information, under penalty of perjury, to enable
the secretary to verify the amount of the registration fee to be paid
in accordance with this act.
   (4) The names of all certification organizations or governmental
entities, if any, providing organic certification to them.
   (e) (1) A registration form shall be accompanied by payment of a
nonrefundable registration fee by producers, handlers, and
processors, which shall be based on total gross sales by the
registrant of product sold as organic in the calendar year that
precedes the date of registration or, if no sales were made in the
preceding year, then based on the expected sales during the 12
calendar months following the date of registration in accordance with
the following fee schedule. The secretary, in consultation with the
California Organic Products Advisory Committee, may lower the amounts
specified in the following fee schedule by regulation.
          Gross Sales                Registration Fee
$         0 -      4,999                 $        25
$     5,000 -     10,000                 $        50
$    10,001 -     50,000                 $        75
$    50,001 -    250,000                 $       100
$   250,001 -    500,000                 $       450
$   500,001 -  1,000,000                 $       750
$ 1,000,001 -  2,500,000                 $     1,000
$ 2,500,001 -  5,000,000                 $     1,500
$ 5,000,001 - 15,000,000                 $     2,000
$  15,000,001 25,000,000                 $     2,500
             -
$  25,000,001  and above                 $     3,000
             -


   (2) Producers that sell processed product shall pay fees based on
the value of raw product before being processed and the value of any
product sold as unprocessed.
   (3) Any person that packs, repacks, labels, sorts, or otherwise
handles any organic product that is outside the jurisdiction of the
State Public Health Officer and that does not take title or manage
the sale of the product, but provides only handling services for
organic product, shall register and pay one hundred dollars ($100)
per year.
   (4) Any person that provides temporary storage or transportation
for organic product and does not handle the raw unpackaged product
does not have to register.
   (5) Any person required to register pursuant to this section that
fits the description of more than one of the persons described above
shall pay the greater of the multiple amounts.
   (6) The secretary may require any producer, handler, processor, or
other organic registrant to provide the exact dollar amount of gross
sales of twenty-five million one dollars ($25,000,001) or more in
lieu of the range specified in paragraph (1).
   (f) The secretary may adopt regulations that supersede the terms
of this section to the extent reasonably necessary to provide an
online system of registration for those required to register pursuant
to this section.
   (g) The adoption, amendment, or repeal of any fee pursuant to this
section shall not be subject to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. An order to adopt, amend, or repeal the
regulations concerning assessment rates pursuant to this section
shall be transmitted within 30 days by the secretary to the Office of
Administrative Law. The Office of Administrative Law shall file the
order promptly with the Secretary of State without further review
pursuant to Article 6 (commencing with Section 11349) of Chapter 3.5
of Part 1 of Division 3 of Title 2 of the Government Code. The order
shall do all of the following:
   (1) Indicate that the regulations are being adopted, amended, or
repealed pursuant to this chapter.
   (2) State that the order is being transmitted for filing.
   (3) Request that the Office of Administrative Law publish a notice
of the filing of the order and print an appropriate reference in
Title 3 of the California Code of Regulations.
  SEC. 12.  Section 46013.2 of the Food and Agricultural Code is
amended to read:
   46013.2.  (a) To the extent feasible, the secretary, in
consultation with the director, shall coordinate the registration and
annual fee collection procedures of this section with similar
licensing or registration procedures applicable to registrants.
   (b) The secretary shall deny a registration submission that is
incomplete or not in compliance with this act.
   (c) A registrant shall, within a reasonable time, notify the
secretary of any change in the information reported on the
registration form and shall pay any additional fee owed if that
change results in a higher fee owed than that previously paid.
   (d) (1) At the request of any person, the secretary or county
agricultural commissioner shall provide the following:
   (A) The name and address of the registrant.
   (B) The nature of the registrant's business.
   (C) The names of all certification organizations or governmental
entities, if any, providing certification pursuant to the NOP and
this act.
   (2) The secretary or county agricultural commissioner may charge a
reasonable fee for the cost of reproducing this information. Except
as provided in this subdivision, a registration form is exempt from
Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code.
   (e) The secretary, in consultation with the California Organic
Products Advisory Committee, may suspend the registration program set
forth in this section if the secretary determines that income
derived from registration fees is insufficient to support a
registration enforcement program.
   (f) A registration is considered legal and valid until revoked,
suspended, or until the expiration of the registration.
   (g) The registration revocation process shall be in conjunction
with other provisions of this act. The secretary or county
agricultural commissioner's office may initiate the revocation
process for failure to comply with the NOP or this act. Any person
against whom the action is being taken shall have the opportunity to
appeal the action and be afforded the opportunity to be heard in an
administrative appeal. This appeal shall be administered by either
the state or county agricultural commissioner's office.
   (h) When the registration fee is not paid within 60 days from the
expiration date, the account shall be considered closed and the
registration voided. A notification shall be sent to the registrant
and the certifier, if applicable, notifying them the registrant is no
longer able to market products as organic until the account is paid
in full.
   (i) Any producer, handler, processor, or certification agency
subject to this chapter that does not pay the fee within 10 days of
the date on which the fee is due and payable shall pay a penalty of
10 percent of the total amount determined to be due plus interest at
the rate of 1.5 percent per month on the unpaid balance.
  SEC. 13.  Section 46014.1 of the Food and Agricultural Code is
amended to read:
   46014.1.  (a) Any certification agency that certifies product in
this state sold as organic shall register with the secretary and
shall thereafter annually renew the registration, unless the
organization is no longer engaged in the activities requiring the
registration. Registration shall be on a form provided by the
secretary, shall include a copy of accreditation by the USDA or proof
of application if applicable.
   (b) Each certification agency shall pay to the secretary an annual
registration fee of twenty-five dollars ($25) for each client they
have certified in this state up to a maximum of five hundred dollars
($500). Any registration submitted by a certification agency shall be
made available to the public for inspection and copying. The
secretary may audit the agency's certification procedures and records
at any time, but any records of the certification agency not
otherwise required to be disclosed shall be kept confidential by the
secretary.
                    (c) An accredited certifying agency may submit an
annual registration fee and application on behalf of their client
provided that all of the information required under Section 46013.1
is included when remitting applicable fees to the secretary.
   (d) The secretary and the county agricultural commissioners under
the supervision of the secretary shall, if requested by a sufficient
number of persons to cover the costs of the program in a county as
determined by the secretary, establish a certification program. This
program shall meet all of the requirements of this act. In addition,
this program shall meet all of the requirements of the federal
certification program, including federal accreditation. The secretary
shall establish a fee schedule for participants in this program that
covers all of the secretary's reasonable costs of the program. A
county agricultural commissioner that conducts a voluntary
certification program pursuant to this section shall establish a fee
schedule for participants in this program that covers all of the
county's reasonable costs of the program. The secretary shall not
expend funds obtained from registration fees collected under this
chapter for the purposes of adopting or administering this program.
The certification fee authorized by this subdivision is due and
payable on January 1 or may be prorated before the 10th day of the
month following the month in which the decision to grant the
certification is issued. Any person who does not pay the amount that
is due within the required period shall pay the enforcement authority
providing the certificate a penalty of 10 percent of the total
amount determined to be due, plus interest at the rate of 1.5 percent
interest per month on the unpaid balance.
   (e) Notwithstanding any other law, any certification agency that
certifies product in this state sold as organic shall immediately
make the following records available for inspection by, and shall
upon request within three business days of the request, or within a
reasonable time exceeding three business days as determined by the
secretary, provide a copy to, the secretary or county agricultural
commissioner:
   (1) Records obtained from applicants for certification and
certified operations.
   (2) Records created by the certifying agent regarding applicants
for certification and certified operations.
   (3) Any record required to be kept under the National Organic
Program (Section 6517 of the federal Organic Foods Production Act of
1990 (7 U.S.C. Sec. 6501 et seq.) and 7 C.F.R. 205 et seq.), Article
7 (commencing with Section 110810) of Chapter 5 of Part 5 of Division
104 of the Health and Safety Code, and this act applicable to any
person selling products as organic.
   (f) Records acquired pursuant to this section shall not be public
records as that term is defined in Section 6252 of the Government
Code and shall not be subject to Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code.
  SEC. 14.  Section 46014.2 of the Food and Agricultural Code is
amended to read:
   46014.2.  (a) All products sold as organic in California shall be
certified by an accredited certifying agent if they are required to
be certified under the federal act.
   (b) Product shall be sold as organic only in accordance with this
act.
   (c) A certification agency shall be accredited by the USDA as
provided in the NOP.
  SEC. 15.  Section 46014.4 of the Food and Agricultural Code is
amended to read:
   46014.4.  A registered certification agency shall submit to the
secretary every January and June a list of all persons whose
production or processing of product in California is certified. The
list shall be publicly available within 30 days after the end of each
filing period. A certifier that keeps a current list on an Internet
Web site available to the public may be deemed to meet this
requirement.
  SEC. 16.  Section 46014.6 of the Food and Agricultural Code is
amended to read:
   46014.6.  Only products that have been produced and handled in
accordance with this act may be certified by a registered
certification agency.
  SEC. 17.  Section 46016.4 of the Food and Agricultural Code is
amended to read:
   46016.4.  The appeal shall be submitted to the secretary in
writing within 30 days of the date of the action or the letter
proposing the action. The secretary's proceeding shall, insofar as
practicable, comply with the provisions of the Administrative
Procedure Act, Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code, except that a
Department of Food and Agriculture hearing officer may be used.
  SEC. 18.  Section 46016.5 of the Food and Agricultural Code is
amended to read:
   46016.5.  As provided for in regulations adopted by the NOP, the
action proposed by an NOP accredited certification agency against a
client may be appealed to the secretary for mediation.
  SEC. 19.  Section 46021 of the Food and Agricultural Code is
amended to read:
   46021.  (a) It is unlawful for any person to certify any product
in violation of this act.
   (b) It is unlawful for any person to certify a product or company
as organic unless duly registered as a certification agency pursuant
to this act.
   (c) It is unlawful for any person to willfully make a false
statement or representation, or knowingly fail to disclose a fact
required to be disclosed, in registration for a certification agency
pursuant to this act.
  SEC. 20.  Section 46028 of the Food and Agricultural Code is
amended to read:
   46028.  All persons who produce, handle, or retail products that
are sold as organic shall keep accurate and specific records as
required by the secretary in consultation with the California Organic
Products Advisory Committee.
  SEC. 21.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.

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