HB1618: mandating a cooperative agreement with USDA for "organic" certification.

HB 1618-FN - AS INTRODUCED

2024 SESSION

24-2473

11/08

HOUSE BILL 1618-FN

AN ACT mandating a cooperative agreement with USDA for "organic" certification.

SPONSORS: Rep. Wolf, Merr. 7; Rep. Rung, Hills. 12; Rep. Crawford, Carr. 3; Rep. Myler, Merr. 9; Rep. Tanner, Sull. 5; Rep. B. Boyd, Hills. 12; Rep. Ebel, Merr. 7; Rep. McWilliams, Merr. 30; Sen. Innis, Dist 7; Sen. Bradley, Dist 3

COMMITTEE: Environment and Agriculture

ANALYSIS

This bill requires the commissioner to hire inspectors and enter into a USDA cooperative agreement.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-2473

11/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT mandating a cooperative agreement with USDA for "organic" certification.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Cooperative Agreement; Department of Agriculture, Markets, and Foods. Amend RSA 426:6-b, II to read as follows:

II. The commissioner [may] shall enter into a cooperative agreement with the United States Department of Agriculture to become an accredited certifying agency as provided for by the Organic Foods Production Act of 1990, Public Law 101-624, and the United States Department of Agriculture's National Organic Program, Final Rule, 7 CFR part 205, and to implement the provisions thereof.

2 Organic Certification; Inspectors. Amend RSA 426:6-b, III to read as follows:

III. The commissioner [may] shall employ inspectors to certify agricultural producers, processors, on-farm processors and handlers in this state, and to determine whether or not agricultural plant, animal, food, or fiber commodities are marked, branded, or labeled in accordance with the labeling requirements set forth in this chapter and in the Organic Foods Production Act of 1990, Public Law 101-624, and the United States Department of Agriculture's National Organic Program, Final Rule, 7 CFR part 205.

3 Effective Date. This act shall take effect 60 days after its passage.

LBA

24-2473

12/10/23

HB 1618-FN- FISCAL NOTE

AS INTRODUCED

AN ACT mandating a cooperative agreement with USDA for "organic" certification.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated State Impact - Increase / (Decrease)

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Revenue Fund(s)

General Fund

Organic Certification Fees

Expenditures

$0

$177,000

$1,060,200

$807,000

Funding Source(s)

General Fund

Appropriations

$0

$0

$0

$0

Funding Source(s)

None

• Does this bill provide sufficient funding to cover estimated expenditures? [X] No

• Does this bill authorize new positions to implement this bill? [X] No

METHODOLOGY:

This bill requires the Commissioner of the Department of Agriculture, Markets and Food to hire inspectors and enter into a USDA cooperative agreement.

The Department of Agriculture, Markets and Food indicates the U.S. Department of Agriculture's National Organic Program is a federal privatized program. There are 79 companies throughout the country authorized to conduct organic certifications on behalf of the federal government. The Department notes there are 11 states authorized by the National Organics Program (NOP) to work within this federal program as certifying agents on behalf of the NOP. Authorization for New Hampshire to perform organic certifications on behalf of the NOP would require the Department to enter into an agreement with the NOP. Such an agreement will not be approved without multiple Federal visits and inspections, administrative rule changes and updates, creation of additional standard operating procedures, and the hiring of NOP trained inspectors. The Department indicates availability of NOP trained inspectors for hire is highly unlikely. Required training of new staff will take up to three years prior to the staff being able to conduct inspections and generating additional fee revenue.

The Department states authorization for it to perform the program on behalf of the NOP, even after three years of training eight employees, it is not guaranteed and the Department would have to hire the individuals before knowing if the NOP will authorize it to perform the work. The Department recommends a new Division or Bureau for the program be created within the Department of Agriculture, Markets and Food.

The Department assumes the program will require a minimum of eight additional positions to be trained over three years before the program is initiated by the Department. Adjustments to state revenue could be made through rule changes to reduce the difference between the revenue and expenditures as presented in the table below:

FY 2025

FY 2026

FY 2027

Estimated Revenue

Crop

$15,000

$15,000

$15,000

Livestock/Handler

$21,000

$21,000

$21,000

Total Revenue

$36,000

$36,000

$36,000

Estimated Costs

Organic Director

(LG 25, Step 4 including benefits)

$102,000

$106,000

$106,000

Organic Administrator

(LG 15, Step 4 including benefits)

$75,000

$77,000

$77,000

6 Organic Inspectors

(LG 23, Step 4 including benefits)

$576,000

$594,000

6 Vehicles

$252,000

6 Computers

$7,200

Fuel

$2,000

Training including travel

$40,000

$30,000

Total Expenses

$177,000

$1,060,200

$807,0000

These estimates are based upon historical information, assuming the minimum number staff required to petition the NOP for authorization to implement the program. The requirements associated with organic livestock inspections and oversight would be additional and are not included in this estimate.

AGENCIES CONTACTED:

Department of Agriculture, Markets and Food