ATTACHMENT A

CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE (CDFA) CALIFORNIA ORGANIC PRODUCTS ADVISORY COMMITTEE (COPAC)

September 7, 2016 Meeting Minutes

2800 Gateway Oaks, Sacramento, CA

ITEM 1: ROLL CALL The Committee was called to order at 10:00 am by Mr. Steve Patton. Roll was called, a quorum was established, and self introductions were made. Ms. Melody Meyer reestablished chair at 10:15 am ITEM 2: PUBLIC COMMENTS Ms. Kelly Damewood had a few comments for the Committee. She first thanked the Committee and the SOP for all of their hard work with AB 1826. She also recognized the ongoing need to fill committee vacancies and stated that the California Certified Organic Farmers (CCOF) has been actively advertising the vacancies through various publications and word of mouth. Ms. Damewood also mentioned she would like to discuss the Farm Bill with the committee and asked that the topic be added to the January meeting agenda. Ms. Damewood also talked about the new medical cannabis regulations and how CCOF has been looking towards the future, specifically at the organic industry’s involvement in organic cannabis, and the implications of CCOF adding it as an organic crop. ITEM 3: REVIEW AND APPROVAL OF MEETING MINUTES Mr. Patton asked for a motion to approve the May 19, 2016 Meeting Minutes as submitted. MOTION: Ms. Christina Augustine moved to approve the May 19, 2016 Meeting Minutes as submitted. Ms. Mindee Jeffery seconded the motion. The motion passed unanimously with no abstentions.

MEMBERS PRESENT MEMBERS ABSENT Garff Hathcock Steven Sherman INTERESTED PARTIES Kim Diets - Smuckers Natural Foods-OTA Kelley Damewood - CCOF

CDFA Melody Meyer Patrick Kennelly Vernon Peterson Sean Graham Christina Augustine Heather Podoll Jennifer Shawgo Chad Sokol David Will Thomas Chapman Stacy Carlsen

Steve Patton Natalie Krout-Greenberg Carla Sanchez Marcee Yount Danny Lee David Carlson Scott Renteria Laurel Rudolph Dale Woods

California Organic Products Advisory Committee September 7, 2016 Meeting Minutes Page 2 ITEM 4: VACANCIES / TERM LIMITS Ms. Laurel Rudolph provided the vacancy report. Vacancies include: three producers; six producer alternates; one environmental representative; one environmental representative alternate; two processor alternates; two technical representative alternates; two consumer representative alternates; and one wholesale alternate. Members whose terms will be expiring October 31, 2016, and are not eligible for reappointment are: Mr. Steve Sherman; Mr. Thomas Chapman; Mr. David Will; Mr. Steve DeMuri; and Ms. Melody Meyer. Mr. Patton discussed with the committee the term limits and how it is important to keep continuity within the committee but also recognized the importance for new members with fresh outlooks. Ms. Natalie Krout-Greenberg presented a recommendation regarding the term limits and the recent members who will be terming out. She proposed that one option would be for those current members who have expiring terms to extend their time an additional one full term. During that extended time, the Department and COPAC will work on outreach and recruitment for new members. It will also give time for new members to settle in and learn the ins and outs of the committee. After much discussion, the committee decided to make a recommendation to the Secretary to extend the terms of those members who are currently expiring, if they wish to continue, to an additional one time, three-year term. MOTION: Ms. Melody Meyer, Chair of the Committee, moved to extend current expiring terms to one additional, full three-year term. Ms. Mindee Jeffery seconded the motion. The motion passed unanimously, with no abstentions. ITEM 5: CALIFORNIA DEPARTMENT OF PUBLIC HEALTH UPDATE Mr. Patrick Kennelly provided the California Department of Public Health (CDPH) update. He reported that currently there are 2,825 registrants, registered with CDPH. There have been 24 complaints so far in this year; 15 of those complaints have been completed, 8 were substantiated complaints, and 7 were found to be unsubstantiated. Mr. Kennelly explained that the complaints that come into CDPH are either referrals from CDFA, received via email, or are received directly, via their complaint phone line. ITEM 6: STATE ORGANIC PROGRAM REPORTS I. Genetically Modified Organism (GMO) Testing Mr. Danny Lee discussed the GMO testing pilot program. As of September 2016, the State Organic Program (SOP) has collected 20 blind samples to be tested for GMO’s. Those samples include: alfalfa; blended cattle feed; chicken feed; and a variety of vegetable seeds. Sampling will continue throughout the rest of the year, and a report

California Organic Products Advisory Committee September 7, 2016 Meeting Minutes Page 3 with the findings will be released and presented to the committee once the project has concluded. If the committee finds that there is enough evidence to continue testing for GMO’s, the SOP will include GMO testing with their routine surveillance. II. Legislative Update Mr. Lee provided the legislative update. Assembly Bill (AB) 1826 is currently waiting for approval. Once the bill passes, it will go into effect on January 1, 2017. The SOP will work to make the necessary changes that the bill requires. ITEM 7: ORGANIC STAKEHOLDER WORK GROUP MEETING Ms. Krout-Greenberg discussed the Organic Stakeholder Workgroup meeting report. There were four sessions and a total of 26 people participated. The meeting was designed to allow the participants to set goals that would define current benefits and challenges of the SOP. They also discussed further projects for CDFA’s consideration, and recommendations for the Secretary and COPAC. Mr. Lee presented the recommendations of the Organic Stakeholders Working Group. The participants arrived at the following actions: streamline the CDFA registration process; enhance data collection and maximize data utilization; improve enforcement activities and enhance training; expend outreach and communication to stakeholders; empower and energize COPAC; integrate organics throughout CDFA and other state agencies; and leverage California’s SOP and California organic producers on a national scale. After much discussion, it was decided to form a subcommittee to meet and examine the report’s recommendations and prioritize them. Those on the Organic Workgroup Subcommittee are: Mr. Stacy Carlsen; Mr. Vernon Peterson; Ms. Heather Podoll; Ms. Mindee Jeffery; Mr. Chad Sokol; and Ms. Jane Sooby. ITEM 8: NEW MEMBER RECRUITMENT Ms. Melody Meyer discussed new member recruitment. The committee discussed ways to help recruit members through different media sources. Some sources will include adding an increased presence on social media, sending out a press release to industry, and advertising at various industry conferences throughout California. Other ideas were to schedule all committee meetings a year ahead of time, that way the public and those interested in sitting on the committee can plan in advance to attend the meeting. ITEM 9: ORGANIC INPUT MATERIALS UPDATE Mr. Dale Woods gave an overview of the CDFA Organic Input Materials (OIM) program. He explained that any organic fertilizer material that is being distributed in California must be registered with the OIM program. Currently the program has 1,186 registrants and expects that number to increase to 2,000 by the end of the year. The OIM program also inspects production sites of organic fertilizer, and in turn, provides certifiers with the information the State has gathered.

California Organic Products Advisory Committee September 7, 2016 Meeting Minutes Page 4 Mr. Woods also gave an update on the complaint filed against the United States Department of Agriculture (USDA) and the National Organic Program (NOP). The complaint states that in 2010, USDA improperly issued the Contaminated-Compost decision as a “guidance” document without providing public notice or comment opportunities. The Contaminated-Compost decision should have been subject to the Administrative Procedure Act. It has since been decided that the NOP did violate the procedures when they released the new guidance documents and was, in turn, ordered to rescind those documents. The NOP is currently working on developing new guidelines. In the meantime, the industry has continued to do business as usual, and OIM will work to uphold the standards as they currently exist. ITEM 10: FALL NOSB MEETING UPDATE Ms. Meyer gave an update regarding the upcoming National Organic Standards Board (NOSB) meeting in November 2016. This year, one of the discussion items is whether to allow hydroponic, container growing, and aquaponics to register as organic. Ms. Meyer also encouraged the committee to get involved with the NOSB, to comment on the issues, and to encourage others from the industry to do the same. ITEM 11: ORGANINC CHECK OFF UPDATE Ms. Meyer gave an update on the Organic Check off program. The Organic Trade Association (OTA) has formally petitioned the USDA to begin steps to conduct a vote on, and implement a research and promotion check off program for the organic industry. The current petition should be released to the public in October 2016 and be available for public comments for 60-90 days after the release. ITEM 12: ANIMAL WELFARE STANDARDS AND CA STATE VET COMMENTS Ms. Meyer discussed the Animal Welfare Standards and the California State Veterinarian’s comments. The NOP issued proposed rules to amend the organic and livestock poultry practices. Some of the proposed changes to the rule are: changes in requirements for indoor and outdoor space for poultry; clarity on justifications for confinements indoors for livestock and poultry; and a proposed implementation timeline following the issuance of a final rule. The committee discussed the letter written by Dr. Annette Jones, CDFA State Veterinarian, regarding NOP’s rules. The committee decided to write a statement to the Secretary expressing their agreement with the NOP’s animal welfare safety rules, and to ask that she consider consulting with COPAC when ruling on organic issues within the Department. The Committee then decided to make a motion to ask the Secretary to consider COPAC’s input in matters of state organic policy and decision making. MOTION: Mr. Thomas Chapman expressed that COPAC represents diverse perspectives within the organic community, and moved to recommend that when taking positions on state organic policy matters, we ask that Secretary Ross please consider

California Organic Products Advisory Committee September 7, 2016 Meeting Minutes Page 5 the expertise of the committee. Mr. Vernon Peterson seconded the motion. The motion passed unanimously, with no abstentions. ITEM 13: NEXT MEETING/AGENDA ITEMS The next meeting will be held January 26, 2017, during the Eco-Farm conference in Monterey, CA. Some of the Agenda items will include: a discussion on the Farm Bill; an update from the Organic workgroup subcommittee; an update on the organic check-off program; current vacancies; and officer elections. ITEM 14: RESOLUTIONS Mr. Lee presented Mr. Thomas Chapman with a resolution, celebrating his time and commitment to the committee. ITEM 15: ADJOURNMENT Ms. Melody Meyer adjourned the meeting at 12:50 pm.

Respectfully submitted by: ______________________________ Danny Lee, Supervising Special Investigator State Organic Program

Referred to Accredited Certifying Agents:Referred to California Department of Public Health:

Referred to National Organic Program:

Investigated by SOP (CDFA & County Staff):

CALIFORNIA DEPARTMENT OF FOOD & AGRICULTURE STATE ORGANIC PROGRAM

Compliance & Enforcement/Appeals Summary: FY 2015/2016 & FY 2016/2017*

FY 2015/2016 FY 2016/2017*COMPLAINT/INVESTIGATION SUMMARY:

66 29

21

Certified Farmer's Market:Production Site:

822 462275 81

Total Complaints Assigned/Referred:

INSPECTIONS SUMMARY: FY 2015/2016 FY 2016/2017*

Other: 1 1

412

0

45

1018

2

96

Handling Facility:Processing Facility:Retailer:

62 277 7

80

APPEALS SUMMARY: FY 2015/2016 FY 2016/2017*

Residues Detected In Violation:

Investigative Samples: Residues Detected Within Tolerance Levels:

156

4 1

Total Inspections: 1247 599

Total Samples Collected:

4

231

2

83**

20

Residues Detected In Violation:

81

4

SAMPLING SUMMARY: FY 2015/2016 FY 2016/2017*

11

216Surveillance Samples (Random):

Residues Detected Within Tolerance Levels:

3

0

Appeals Denied: 0 1

Total Appeals Received:

Active Appeals:

Appeals Granted:

3

2

1

Appeals in Process: 1 0

*FY 2016/2017 data based on first half of fiscal year. **70% of samples are generally collected in last quarter of fiscal year.

Appeals Closed: 1 0

Notes:

4

ATTACHMENT

2013-2014 2014-2015 2015-2016 2016-2017

Ag Fund Beginning Balance 2,896,830 2,973,326 3,104,987 3,236,046

BEGINNING FUND BALANCE 2,896,830 2,973,326 3,104,987 3,236,046

REVENUE

Reg/Cert Fees 1,308,269 1,385,460 1,488,772 525,048

Delinquent Fees 28,204 24,155 27,005 10,577

Organic STDS Violations 10,000 - 7,500 -

Interest & Other Income 16,746 5,400 11,182 8,149

TOTAL REVENUE 1,363,219 1,415,014 1,534,459 543,774

AVAILABLE CASH 4,260,049 4,388,340 4,639,447 3,779,820

EXPENDITURES

PPY Expenditures (780) (5,314) (767) 30 PY Expenditures 183,464 139,774 111,917 131,893 CY Expenditures 1,104,038 1,148,894 1,292,250 520,220

TOTAL EXPENDITURES 1,286,723 1,283,353 1,403,401 652,143

ENDING BALANCE 2,973,326 3,104,987 3,236,046 3,127,677

Organic Program

2016-17 Fund Condition as of November 30, 2016

Implemented as of

1-1-2017

Implementation Year

2016-17

Implementation Year

2017-18

Implementation Year

2018-19 Projected

Expenditures Projected

Expenditures Projected

Expenditures Projected

Expenditures RECOMMENDATIONSWORK GROUP RECOMMENDATIONS REPORT ITEMS A 1-3Streamline CDFA Registration Process, Enhance/Maximize Data CollectionUpdate registration process for implementing AB 1826 X X XAdd a "less than acreage" check off box on the registration form for small farms (min threshold) N/AReal time data information for crop and acreage shared XInclude Organic data information within all CDFA programs TBDPost Commodity information on CDFA Website See below**Renew registration through ACAs See below** X X XTOTAL 15,000 TBD 50,000 50,000 WORK GROUP RECOMMENDATIONS REPORT ITEM B 2Improve Enforcement Activities and Enhance TrainingPost enforcement activities on CDFA website See below** X XPost pesticide residue results on website See below** X XEducate certifiers on commodity information available in the SOP database See below**Increase organic training to counties include role of certifier X X XIncrease organic training for uniformity of county inspections* TBDCreate exit exam for county trainings* TBDAdd some type of organic certification for training* TBDProvide consistent training to counties* See below**Add minimal annual training for county organic enforcement personnel* TBD TBDEvaluate/analyze current county training to improve future training* See below**Utilize NOP website training 101 and 102 videos See below**Share CDFA guidelines with county inspectors for improved enforcement* See below**TOTAL 15,000 15,000 15,000 WORK GROUP RECOMMENDATIONS REPORT ITEM CExpand Outreach and Communication to StakeholdersCommunication Plan X X XCreate a newsletter sent to interested parties, include enforcement activities* include COPAC updates, vacancies, and meeting informationEducate registrants on what SOP is providing with registration fees*Increase outreach, educate public/farmers on organics and enforcement actionsIncrease online presence, i.e. social mediaCreate website with COPAC informationBuild email list to reach out to operations*Provide inspection information, i.e. why inspectors are at the site* See below**Create a check in system with history of all inspections from all agencies* TBDTOTAL 10,000 40,000 40,000 WORK GROUP RECOMMENDATIONS REPORT ITEM DEmpower and Energize COPACSet meeting dates a year in advance/announce upcoming meetings at current meeting See below**Move location of May or Sept meeting throughout the State Minimal impact X XCreate memo of committee responsibilties for each position* N/ACreate form letter for recruitment* See below**Additional activities at meetings e.g. field trips, guest speakers* Minimal impactAsk NOP to speak with COPAC regarding NOP's organic procedures See below**TOTAL 10,000 10,000 WORK GROUP RECOMMENDATIONS REPORT ITEM EIntegrate Organic Throughout CDFA and Other AgenciesPossibilities of CDPH streamlining registration process N/AExplain SOP's relationships/agreements with applicable agencies, e.g. CDPH, CDPR See below**TOTAL WORK GROUP RECOMMENDATIONS REPORT ITEM ECost ShareStreamline costshare application/information required, and less transfer of funds per individual* See below**Work to find way for Controller's office to allow electronic signatures* See below**Require ACAs to apply for cost share on behalf of producer, and money should be sent to producers* N/ATOTAL WORK GROUP RECOMMENDATIONS REPORT ITEM FLeverage SOP and CA ACAs on a National ScaleClarify what Ag Statistics does for producers and logistics fo sharing information with Ag* See below**Statistics to get burden off the producer*Publish Ag Statistics on CDFA website See below**

TOTALS 15,000 25,000 115,000 115,000

*Priority recommendations identified by the COPAC Subcommittee that were not directly listed in the Recommendations from the Organic Stakeholder Work Group Report. These items

clarify and expand on the recommendations listed in the Report.

**Costs for these items may be absorbed through existing CDFA staff functions.

N/A indicates items that are no longer applicable or outside the authority of CDFA.

ORGANIC PROGRAMOrganic Workgroup-COPAC Subcommitee Recommendation Priorities

ATTACHMENT

1

Operation Types

Producer Handler Processor Retailer

Month Total Number of New Registrations

Jan-16 41 Jan-16 34 9

Feb-16 49 Feb-16 40 9 1 2

Mar-16 59 Mar-16 51 8 1 2

Apr-16 57 Apr-16 49 9 2 1

May-16 49 May-16 42 7 2

Jun-16 51 Jun-16 39 14 1

Jul-16 52 Jul-16 40 15 2

Aug-16 48 Aug-16 41 9 2 2

Sep-16 48 Sep-16 36 11 3 1

Oct-16 21 Oct-16 19 2 1

Nov-16 18 Nov-16 14 5 2 1

Dec-16 11 Dec-16 9 3

Total 504 Total 414 101 14 12

CDFA State Organic Program Calendar Year 2016

NOTE: The number of operation types may not match the number of new operations, since operations may fall under more than one type.

3037 30873338 3441 3500 3690 3893

4397

0500

100015002000250030003500400045005000

2009 2010 2011 2012 2013 2014 2015 2016

Total Registrants

Total Registrants

DATESample Form

NumberWHO SAMPLED

COUNTY WHERE SAMPLED

PRODUCER HANDLER RETAIL CFM Wholesale Chain OTHER COMMODITYSUBSTANCE DETECTED/

ALLOWABLE (Y/N)AMOUNT DETECTED

EPA TOLERANCEABOVE 5% of EPA TOLERANCE & IN

VIOLATIONCOMMENTS

7/6/2016 R16O00165 El Dorado El Dorado x Tomatoes None N/A N/A N/A7/11/2016 R16O00166 Modoc Modoc x Horseraddish None N/A N/A N/A7/15/2016 R16O00167 San Diego San Diego x Grapefruit None N/A N/A N/A

7/24/2016 R60O00168 Los Angeles Los Angeles x Grapes None N/A N/A N/A7/22/2016 R16O00169 San Diego San Diego x Brussel Sprouts None N/A N/A N/A7/26/2016 R16O00170 Sutter Sutter x Corn None N/A N/A N/A7/26/2016 R16O00171 Sutter Sutter x Corn None N/A N/A N/A8/1/2016 R16O00172 SOP Butte x Animal Feed None N/A N/A N/A8/1/2016 R16O00173 SOP Butte x Animal Feed None N/A N/A N/A8/2/2016 R16O00174 Napa Napa x Squash None N/A N/A N/A8/2/2016 R16O00175 Napa Napa x Tomatoes None N/A N/A N/A

8/3/2016 R16O00176 Santa Barbara Santa Barbara x Broccoli None N/A N/A N/A

8/3/2016 R16O00177 San Diego San Diego x Bananas None N/A N/A N/A8/3/2016 R16O00178 Sonoma Sonoma x Strawberries None N/A N/A N/A8/4/2016 R16O00179 Los Angeles Los Angeles x Carrots None N/A N/A N/A8/4/2016 R16O00180 Los Angeles Los Angeles x Grapefruit None N/A N/A N/A

8/11/2016 R16O00181 SOP Sacramento x Corn None N/A N/A N/A8/15/2016 R16O00182 Alameda Alameda x Avocado None N/A N/A N/A8/17/2016 R16O00183 Los Angeles Los Angeles x Corn None N/A N/A N/A8/19/2016 R16O00184 Napa Napa x Apples None N/A N/A N/A

8/19/2016 R16O00185 NapaNapa

xTomatoes 2-Phenylphenol .032 ppm 10 ppm No

Below tolerance levels. Follow-up into source of contamination.

8/19/2016 R16O00186 Sonoma Sonoma x Grapes None N/A N/A N/A8/18/2016 R16O00187 San Diego San Diego x Avocados None N/A N/A N/A8/23/2016 R16O00188 San Diego San Diego x Grapefruit None N/A N/A N/A

8/21/2016 R16O00189 SonomaSonoma

xPear O-Phenylphenol .029 ppm 25 ppm No

Below tolerance levels. Follow-up into source of contamination.

8/21/2016 R16O00190 Sonoma Sonoma x Cucumber None N/A N/A N/A8/25/2016 R16O00191 Lake Lake x Peppers None N/A N/A N/A8/31/2016 R16O00192 Lake Lake x Walnuts None N/A N/A N/A9/6/2016 R16O00193 Los Angeles Los Angeles x Grapes Cyprodinil .12 ppm 3.0 ppm No

Boscalid .02 ppm 5.0 ppm NoFlupyradifurone .097 ppm 3.0 ppm No

9/7/2016 R16O00194 San DiegoSan Diego

xCucumber Propamocarb .02 ppm 1.5 ppm No

Below tolerance levels. Follow-up into source of contamination.

9/7/2016 R16O00195 Sonoma Sonoma x Strawberries None N/A N/A N/A9/7/2016 R16O00196 Lake Lake x Tomatoes None N/A N/A N/A

9/10/2016 R16O00197 Napa Napa x Eggplant None N/A N/A N/A9/10/2016 R16O00198 Napa Napa x Strawberries None N/A N/A N/A9/12/2016 R16O00199 Mariposa Mariposa x Apples None N/A N/A N/A

9/14/2016 R16O00200 Los Angeles Los Angeles x Broccoli None N/A N/A N/A

9/15/2016 R16O00201 Lake Lake x Walnuts None N/A N/A N/A

9/21/2016 R16O00202 San Diego San Diego x Apples None N/A N/A N/A9/20/2016 R16O00203 Lake Lake x Tomatoes None N/A N/A N/A9/28/2016 R16O00204 San Diego San Diego x Watermelon None N/A N/A N/A9/27/2016 R16O00205 Mendocino Mendocino x Apples None N/A N/A N/A9/28/2016 R16O00206 Mendocino Mendocino x Grapes None N/A N/A N/A9/23/2016 R16O00207 San Diego San Diego x Oranges None N/A N/A N/A10/4/2016 R16O00208 San Francisco San Francisco x Cauliflower None N/A N/A N/A10/4/2016 R16O00209 Mendocino Mendocino x Apples None N/A N/A N/A10/5/2016 R16O00210 San Diego San Diego x Guava None N/A N/A N/A10/9/2016 R16O00211 Napa Napa x Strawberry None N/A N/A N/A

Sampling Fiscal Year 2016/2017

Below tolerance levels. Follow-up into source of contamination.

10/6/2016 R16O00212 Alameda Alameda x Kale None N/A N/A N/A10/6/2016 R16O00213 Alameda Alameda x Peas None N/A N/A N/A10/6/2016 R16O00214 Alameda Alameda x Peas None N/A N/A N/A10/8/2016 R16O00215 Los Angeles Los Angeles x Broccoli None N/A N/A N/A10/8/2016 R16O00216 Los Angeles Los Angeles x Apples None N/A N/A N/A

10/11/2016 R16O00217 San Diego San Diego x Dragon Fruit None N/A N/A N/A10/12/2016 R16O00218 San Diego San Diego x Tangelo None N/A N/A N/A10/17/2016 R16O00219 San Benito San Benito x Cauliflower None N/A N/A N/A10/18/2016 R16O00220 Fresno Fresno x Strawberry None N/A N/A N/A10/12/2016 R16O00221 Mendocino Mendocino x Grapes None N/A N/A N/A10/12/2016 R16O00222 Mendocino Mendocino x Grapes None N/A N/A N/A10/20/2016 R16O00223 San Diego San Diego x Valencia None N/A N/A N/A10/24/2016 R16O00224 Imperial Imperial x Lettuce None N/A N/A N/A10/22/2016 R16O00225 San Diego San Diego x Tangelo None N/A N/A N/A10/21/2016 R16O00226 San Diego San Diego x Persimmons None N/A N/A N/A10/26/2016 R16O00227 Imperial Imperial x Lettuce Chlorpyrifos 0.038 ppm NTE Yes

DCPA 0.022 ppm 2.0 ppm No10/26/2016 R16O00228 San Diego San Diego x Grapefruit None N/A N/A N/A10/27/2016 R16O00229 Imperial Imperial x Bermuda None N/A N/A N/A10/31/2016 R16O00230 Imperial Imperial x Celery DCPA .058 ppm NTE Yes

Pendimethalin .011 ppm NTE Yes10/24/2016 R16O00231 San Diego San Diego x Oranges None N/A N/A N/A

11/4/2016 R16O00232 San Diego San Diego x Lemons None N/A N/A N/A

11/8/2016 R16O00233 Tehama Tehama x Rice None N/A N/A N/A11/8/2016 R16O00234 Tehama Tehama x Rice None N/A N/A N/A

11/16/2016 R16O00235 Imperial Imperial x Broccoli None N/A N/A N/A

11/16/2016 R16O00236 San Diego San Diego x Avocados None N/A N/A N/A

11/15/2016 R16O00237 San Diego San Diego x Avocados None N/A N/A N/A

11/29/2016 R16O00238 San Diego San Diego x Eggplant Pyrimethanil .23 ppm .50 ppm YesResults forwarded to operation's certifier.

Product originated outside CA12/4/2016 R16O00239 San Francisco San Francisco x Lettuce None N/A N/A N/A12/2/2016 R16O00240 San Diego San Diego x Citrus None N/A N/A N/A12/5/2016 R16O00241 Tuolumne Tuolumne x Apples None N/A N/A N/A

12/13/2016 R16O00242 Fresno Fresno x Cabbage None N/A N/A N/A12/14/2016 R16O00243 Imperial Imperial x Onion None N/A N/A N/A12/19/2016 R16O00244 Fresno Fresno x Fennel None N/A N/A N/A12/21/2016 R16O00245 Riverside Riverside x Celery None N/A N/A N/A12/22/2016 R16O00246 San Diego San Diego x Avocados None N/A N/A N/A12/22/2016 R16O00247 San Diego San Diego x Avocados None N/A N/A N/A

Part of ongoing investigation

Part of ongoing investigation

Attachment

Fiscal Year July August Sep Oct Nov Dec Jan Feb Mar April May June Total Projected

2015/16 133,323 114,302 106,030 90,000 74,402 133,525 158,230 145,110 157,078 141,954 144,048 119,999 1,518,001$ 1,350,217$ 2014/15 116,049 86,750 66,268 105,608 - 191,475 141,069 175,010 145,690 122,753 112,629 122,160 1,385,460$ 2013/14 102,788 108,105 75,674 76,916 83,553 91,069 160,931 147,063 140,183 121,013 116,905 126,179 1,350,378$ 2012/13 101,726 100,237 75,529 91,100 78,629 92,682 157,620 140,554 140,252 111,714 96,450 89,064 1,275,556$

2011/12 121,663 108,102 75,903 69,493 73,721 87,982 145,999 127,058 91,541 134,586 86,682 98,183 1,220,914$

2010/11 70,555 82,212 104,311 62,902 66,948 99,831 136,658 91,803 119,711 93,580 102,369 92,386 1,123,266$

2009/10 72,789 79,513 67,856 63,285 55,128 96,998 120,063 93,642 74,998 90,254 55,807 83,036 953,368$

2008/09 72,876 73,911 63,563 64,835 71,398 102,695 127,727 94,913 78,774 78,316 83,492 79,279 991,777$

2007/08 51,985 65,914 61,989 54,560 59,894 91,955 121,776 89,574 71,088 92,462 72,107 83,241 916,544$

2006/07 46,461 57,168 57,897 47,474 61,087 59,966 103,670 86,253 81,104 76,115 75,212 61,989 814,397$

2005/06 32,852 39,343 42,662 37,768 47,815 71,678 93,852 72,458 63,557 58,160 43,641 50,775 654,558$

2004/05 34,576 35,788 28,366 43,254 48,329 77,550 77,306 65,274 54,583 56,563 36,227 47,334 605,150$

2003/04 33,043 42,659 36,098 34,441 42,785 64,011 57,045 51,563 47,807 46,945 41,934 41,569 539,900$

2002/03 36,765 29,122 35,448 31,206 30,289 49,412 71,462 62,472 31,798 36,968 34,566 35,508 485,016$

2001/02 30,143 28,672 19,912 24,087 37,670 44,729 76,118 40,109 36,732 29,573 41,208 24,760 433,714$

2000/01 27,060 29,889 28,742 21,563 43,640 49,804 63,351 44,783 45,720 26,429 27,672 38,250 446,905$

1999/00 22,526 23,869 16,693 20,547 34,509 59,557 50,269 30,234 41,024 29,894 45,974 25,110 400,205$

1998/99 16,525 18,709 14,539 14,809 22,533 35,884 76,993 33,772 26,290 23,267 23,546 32,196 339,064$

1997/98 13,894 16,251 17,843 16,827 15,180 39,324 65,617 30,022 24,268 19,793 11,592 28,919 299,530$

1996/97 14,656 11,809 7,628 11,390 13,714 37,654 52,142 22,680 20,561 13,555 11,209 21,007 238,003$

1995/96 7,001 15,117 8,568 9,152 17,263 33,826 59,630 29,776 17,357 11,750 8,413 6,412 224,265$

1994/95 13,286 9,643 6,882 7,608 18,913 45,430 49,026 20,402 14,903 7,616 10,067 10,891 214,667$

1993/94 9,834 9,613 3,979 6,758 12,703 33,361 42,882 22,364 15,471 5,548 9,931 11,577 184,021$

1992/93 3,174 3,863 2,897 2,859 2,053 14,533 54,253 25,498 11,401 6,775 4,136 12,298 143,739$ 1991/92 938 6,438 11,338 47,478 89,611 23,702 6,300 2,055 5,592 193,451$

Page 1 of 1

Organic Program Revenue from Registrations by Month and Year

Attachment

Revenue History Page 1 fo 1

ATTACHMENT California Department of Food and Agriculture

California State Organic Program Complaint Activity Report

General complaint categories from most complaints to least:

1. Not registered or certified. Product organic status in question. 2. Misbranding/mislabeling containers. 3. Failure to properly identify and/or segregate organic products from non-organic

products. 4. Pesticides; excessive or prohibited substances detected.

24

13

514

54Open Over 120 DaysOpen Over 90 Days < 120 DaysOpen Over 60 Days < 90 DaysOpen Over 30 Days < 60 DaysOpen < 30 DaysComplaints Closed

Total Active

Complaint Activity 1/1/2016 to 12/31/2016

ATTACHMENT

2013-2014 2014-2015 2015-2016 2016-2017

Ag Fund Beginning Balance 2,896,830 2,973,326 3,104,987 3,236,046

BEGINNING FUND BALANCE 2,896,830 2,973,326 3,104,987 3,236,046

REVENUE

Reg/Cert Fees 1,308,269 1,385,460 1,488,772 654,057

Delinquent Fees 28,204 24,155 27,005 13,319

Organic STDS Violations 10,000 - 7,500 -

Interest & Other Income 16,746 5,400 11,182 8,149

TOTAL REVENUE 1,363,219 1,415,014 1,534,459 675,524

AVAILABLE CASH 4,260,049 4,388,340 4,639,447 3,911,570

EXPENDITURES

PPY Expenditures (780) (5,314) (767) 31 PY Expenditures 183,464 139,774 111,917 132,652 CY Expenditures 1,104,038 1,148,894 1,292,250 621,693

TOTAL EXPENDITURES 1,286,723 1,283,353 1,403,401 754,376

ENDING BALANCE 2,973,326 3,104,987 3,236,046 3,157,195

Organic Program

2016-17 Fund Condition as of December 31, 2016

ATTACHMENT

2013-14 2013-14 2014-15 2014-15 2015-16 2015-16 2016-17 Approved

Expenditures Actual

Expenditures Approved

Expenditures Actual

Expenditures Approved

Expenditures Projected

Expenditures Approved

Expenditures PERSONAL SERVICESSalaries 354,651 367,444 410,915 383,123 437,107 425,104 431,303 Benefits 121,847 157,305 171,404 176,867 213,125 200,363 191,257 TOTAL PERSONAL SERVICES 476,498 524,749 582,319 559,990 650,232 625,468 622,559

OPERATING EXP & EQUIPGeneral Expenses 8,500 2,981 5,000 6,783 5,000 2,448 5,000 Printing 2,500 18 - - 1,000 13 1,000 Communications 500 620 1,250 1,655 750 3,148 3,000 Postage 8,000 8,337 7,500 7,442 7,900 10,889 11,000 Travel: In-State & Out-Of-State 35,000 14,416 35,000 16,165 35,000 35,000 35,000 Training 2,000 165 1,000 1,776 1,000 2,371 1,000 Facilities Operation (GWO Rent) 22,000 18,600 24,500 55,906 56,055 23,897 35,000 Cons/Prof Serv-Interdept - 390 550 522 450 86 450 Information Technology (Supplies) - 2,942 3,500 5,226 3,250 2,469 3,250 Other items of Expense (County Contracts) 400,830 193,362 380,000 174,676 380,000 348,950 349,000 Miscellaneous Expenses (Ag Supplies, etc) - 6 1,400 1,849 - - 2,000 Database Charges - 52,242 50,000 20,263 50,000 50,000 50,000 Credit Card Service Charges - 12,054 10,000 12,294 15,000 16,702 17,000 Chem Lab 60,000 120,000 180,000 120,000 180,000 180,000 240,000 GMO Testing - - - - - 6,000 13,950 Attorney General Fees 200,000 40,925 75,000 270 50,000 5,000 10,000 TOTAL OP EXP & EQUIP 739,330 467,058 774,700 424,826 785,405 686,973 776,650

Departmental ServicesDirect Charges 85,000 - Indirect CHG - Branch 75,000 90,181 165,776 174,859 126,000 140,813 140,813 Indirect Cost - Exec/Admin - 71,051 79,000 76,703 88,432 87,502 90,000 Indirect Dept Cost - IT 10,000 45,487 50,000 49,703 56,000 52,952 55,000 Indirect Costs - Div 40,000 25,679 35,000 34,352 38,364 35,703 38,000 Central Admin Services - 1,727 1,800 1,505 1,596 1,696 1,700 Pro Rata 40,000 32,867 33,000 35,682 36,000 53,012 54,000 Indirect CHG Recovery - - (15,299) (4,928) (5,712) (5,712) TOTAL DEPARTMENTAL 250,000 266,992 364,576 357,505 341,463 365,965 373,800 Budget Adjustment Unallocated - - - - - - - TOTAL PROGRAM COST 1,465,828 1,258,799 1,721,595 1,342,321 1,777,100 1,678,406 1,773,010 Gas Tax (Sect 224) (16,000) (14,786) (12,500) (14,520) (14,520) (20,660) (20,660) Fed Fund Budget ActDirect Charge Recovery (from cost share) (64,372) (66,161) (70,013) (72,645) (72,645) Year-End Closing Exp/CreditTOTAL PROGRAM BUDGET 1,449,828 1,244,013 1,644,723 1,261,640 1,692,567 1,585,101 1,679,705 ACTUAL REVENUE 1,363,219 1,415,014 1,350,217* 1,376,150*

*Projected Revenue

ORGANIC PROGRAM2016-2017 APPROVED BUDGET

ATTACHMENT

California Department of Food and Agriculture State Organic Program

APPEALS STATUS REPORT Fiscal Year Report

2016/2017

As of: January 18, 2017

Report Categories Number Total appeals logged 4 Active appeals being reviewed by CDFA 2 Active appeals referred to DOJ 1 Appeals granted 1 Total active appeals 4 Appeals resolved 0 Active appeals over 120 days

Implemented as of

1-1-2017

Implementation Year

2016-17

Implementation Year

2017-18

Implementation Year

2018-19 Projected

Expenditures Projected

Expenditures Projected

Expenditures Projected

Expenditures RECOMMENDATIONSWORK GROUP RECOMMENDATIONS REPORT ITEMS A 1-3Streamline CDFA Registration Process, Enhance/Maximize Data CollectionUpdate registration process for implementing AB 1826 X X XAdd a "less than acreage" check off box on the registration form for small farms (min threshold)Real time data information for crop and acreage shared XInclude Organic data information within all CDFA programsPost Commodity information on CDFA Website X XRenew registration through ACAs X X X XTOTAL: Streamline CDFA Registration Process, Enhance/Maximize Data Collection $15,000 $50,000 $50,000WORK GROUP RECOMMENDATIONS REPORT ITEM B 2Improve Enforcement Activities and Enhance TrainingPost enforcement activities on CDFA website XPost pesticide residue results on website XEducate certifiers on commodity information available in the SOP database XIncrease organic training to counties include role of certifier XIncrease organic training for uniformity of county inspections XCreate exit exam for county trainings XAdd some type of organic certification for training XAdd minimal annual training for county organic enforcement personnel XEvaluate/analyze current county training to improve future training XShare CDFA guidelines with county inspectors for improved enforcement XTOTAL: Improve Enforcement Activities and Enhance Training $15,000 $15,000 $15,000

ORGANIC PROGRAM

Organic Workgroup-COPAC Subcommitee Recommendations Projected Budget/Estimated Timelines

Implemented as of

1-1-2017

Implementation Year

2016-17

Implementation Year

2017-18

Implementation Year

2018-19 Projected

Expenditures Projected

Expenditures Projected

Expenditures Projected

Expenditures WORK GROUP RECOMMENDATIONS REPORT ITEM CExpand Outreach and Communication to StakeholdersCommunication Plan X X X

Create a newsletter sent to interested parties, include enforcement activities include COPAC updates, vacancies, and meeting information

Educate registrants on what SOP is providing with registration feesIncrease outreach, educate public/farmers on organics and enforcement actionsIncrease online presence, i.e. social mediaCreate website with COPAC informationBuild email list to reach out to operationsProvide inspection information, i.e. why inspectors are at the site X X

Create a check in system with history of all inspections from all agencies*TOTAL: Expand Outreach and Communication to Stakeholders $25,000 $50,000 $50,000WORK GROUP RECOMMENDATIONS REPORT ITEM DEmpower and Energize COPACSet meeting dates a year in advance/announce upcoming meetings at current meeting X XMove location of May or Sept meeting throughout the State X X XCreate memo of committee responsibilities for each positionCreate form letter for recruitment X XAdditional activities at meetings e.g. field trips, guest speakers XAsk NOP to speak with COPAC regarding NOP's organic procedures XTOTAL: Empower and Energize COPAC $6,000 $6,000 $6,000WORK GROUP RECOMMENDATIONS REPORT ITEM EIntegrate Organic Throughout CDFA and Other AgenciesPossibilities of CDPH streamlining registration processExplain SOP's relationships/agreements with applicable agencies, e.g. CDPH, CDPR X XTOTAL: Integrate Organic Throughout CDFA and Other Agencies WORK GROUP RECOMMENDATIONS REPORT ITEM ECost ShareStreamline cost share application/information required, and less transfer of funds per individual X XWork to find way for Controller's office to allow electronic signatures XRequire ACAs to apply for cost share on behalf of producer; money should be sent to producersTOTAL: Cost Share

Implemented as of

1-1-2017

Implementation Year

2016-17

Implementation Year

2017-18

Implementation Year

2018-19 Projected

Expenditures Projected

Expenditures Projected

Expenditures Projected

Expenditures WORK GROUP RECOMMENDATIONS REPORT ITEM FLeverage SOP and CA ACAs on a National ScaleClarify what Ag Statistics does for producers and logistics for sharing information with Ag XStatistics to get burden off the producer X XPublish Ag Statistics on CDFA website X XTOTAL: Leverage SOP and CA ACAs on a National Scale

GRAND TOTAL $61,000 $121,000 $121,000

AB 1826State Organic Program

(SOP)

January 26, 2017

Pacific Grove, CA

Topics

• Key Changes Per AB 1826

• Revisions to Paper Applications

• Revisions to Online Applications

• Updates to SOP Procedures

Key Changes Per AB 1826• Recast the California Organic Products Act of 2003 as the California Organic Food

and Farming Act

• Retailers no longer require registration with the SOP

• Individual commodities collected for registration have been reduced to groups; • Citrus • Fruits (excluding citrus) • Vegetables• Nuts • Livestock/Dairy• Other

• A total gross sale is now required (no longer individual commodity sales)

• Fee Schedule has been revised

• Certifier’s may submit an application for registration on behalf of their client

• New Applications are now reviewed and approved by the State

Revised Fee Schedule

Revisions to Paper& Online Applications

Paper Application Process

• Paper forms have been redesigned

• Only 2 forms are required (previously, up to 9 forms were required)

• Same forms are used for all activity types

• Available now for download on both CDFA’s main webpage and the Organic Program Database

Old Paper Applications (9 Forms)

Old Paper Applications (continued)

New Paper Applications (2 Forms)

Online Application Process

• Implementation process is seamless

• Company Info., Certification Info., Site Information all retained

• New commodity groups are assigned to sites

• Commodity Site and Sales screens reduced to 2 screens (previously, if there were 30 commodities the user would see 30 screens)

• A total gross sale collected on same Commodity Site Screen (no longer individual sales per commodity screens)

Old Commodity Site/Sales Assignments Screens(at least 6 screens)

( x the number of commodities)

New Commodity Site/Sales Assignments Screens(2 screens)

Commodity Site Assignment Screen Total Gross Sales Screen

Update to SOP Procedures

• ACAs can submit applications for registration from within their own ACA User account (for each of their clients)

• All applications for registration now sent directly to State for review and approval (no longer sent to local county ag office)

• Reduction in paperwork will improve overall review and approval timelines

Thank you

Organic Workgroup Subcommittee Recommendations 12-19-16

A. Streamline the CDFA registration process, enhance data collection and maximize data collection:

Add a “less than acreage” check off box on the registration form for small farms.

Real time data information for crop and acreage shared. Include Organic data information within all CDFA programs Post Commodity information on CDFA Website. Renew registration through ACAs

B. Improve Enforcement Activities and Enhance Training.

Post enforcement actions on CDFA website. Create a newsletter or memo to be sent out to interested parties

announcing enforcement activities. Post pesticide residue results on the website. Educating certifiers on what commodities information they can access on

the SOP database. Increase training and outreach for the counties regarding organics and

organic certifiers’ rolls in the industry. Uniformity throughout the counties when inspecting organics. Create exit exam for county trainings. Add certifications to trainings. Consistency of training and shared information from county to county. Add a minimum annual training for county personal who enforce the

organic industry. Evaluate and analyze current county training for future training

improvement. Share CDFA guidelines with county inspectors for improved enforcement.

C. Expand Outreach and Communication to Stakeholders.

Educating registrants of what the SOP is providing with their registration

fees. Information regarding inspections, answering why the county inspectors

are at the site, i.e. a complaint or spot inspection. Add spot inspection information to newsletter/ memo being sent out to

interested parties. Creating a check in system with history of any and all inspections from all

agencies for each farm. Increase organic outreach and educate the public and other farmers on

the meaning of organics and what types of enforcement actions are done.

SOP and CDFA to Increase online presence, i.e. Social media Create website presence for COPAC information.

D. Empower ad Energize COPAC

Set meeting dates a year in advance and announce upcoming meetings at

current meeting. Moving location of the meeting throughout the state. Create memo of committee responsibilities for each position. Create form letter for recruitment. Additional activities at meetings i.e. field trips, guest speakers. Work on making the implementation of AB 1126 seamless. Streamline costshare application and information required. Less transfer

of funds per individual. Ask representative from NOP to speak with COPAC regarding their

organic procedures. Build email list to reach out to operations. Create newsletter with updates, vacancies, and meeting information to be

sent out to ACAs and registrants.

E. Integrate Organic Throughout CDFA and Other Agencies

Possibilities of DPH streamlining registration process. Automate costshare application process. Work to find best way to ask Controller’s office to allow electronic

signature when applying for costshare. Require that ACA’s apply for costshare on behalf of producer and money

be sent to them. Utilize NOP website training 101 and 102 videos. Outline SOP agreements with other applicable agencies, i.e. California

Department of Public Health.

F. Leverage California’s SOP and California Organic Producers on a National Scale.

Clarify what the Ag Statistics do for producers and logistics of sharing

information with the Ag Statistics to get the burden off of the producer. Publish AG Statistics on website.