BILL ANALYSIS                                                                                                                                                                                                    Ó



                            SENATE AGRICULTURE COMMITTEE
                         Senator Anthony Cannella, Chairman

          BILL NO:    SB 625                    HEARING:  01/05/12
          AUTHOR:   Hernandez                   FISCAL:  Yes
          VERSION:  01/04/12                    CONSULTANT:  John Chandler
          
                                   Nursery stock.


          BACKGROUND AND EXISTING LAW

          Individuals in California who sell plants for planting, 
          propagation, or ornamental purposes, such as cut flowers and 
          greens, must pay an annual license fee.  The Secretary of the 
          California Department of Food and Agriculture (CDFA) sets the 
          licensing fee at an amount not to exceed $180.  The secretary 
          may adjust the amount if the cost of the program that the fee 
          supports exceeds the revenues generated from the fee.  Fees are 
          collected for each branch or store that is owned and operated by 
          the applicant.  Acreage fees are also added as an additional 
          license fee.  

          The revenue generated from the license fee supports the nursery 
          inspection program.  The program ensures that nursery stock 
          meets prescribed standards for pest cleanliness, thereby 
          insuring consumers that the stock meets a minimal quality 
          standard.  

          CDFA is required by regulation to provide for periodic 
          inspection of nurseries and may prescribe standards of 
          cleanliness for nursery stock sold in the state.  Current law 
          specifies that the standard of cleanliness may include the 
          following:  Require that all nursery stock be kept free and 
          clean of pests; Prescribe methods of treatment of various types 
          of nursery stock for control of pests; Require isolation of 
          infested or infected nursery stock pending treatment or 
          disposal; and Make provisions to ensure all nursery stock 
          produced or sold in California be free from pests.

          Under current law, CDFA may issue nursery stock certificates and 
          shipping permits to ensure that nursery shipments and nursery 
          stock are relatively free from pests.  Further, permits and 
          certificates may govern inspection and cleanliness requirements 
          and nursery stock grades and standards.  The county agricultural 
          commissioner may revoke the certificate or permit of any 
          violator of state law governing nursery stock.






          SB 625 - Page 2


          PROPOSED LAW

          SB 625 would do the following:

                 Reduce the refund amount from 50% to 25% to those 
               applicants who later decide they will not engage in the 
               sale of nursery stock.

                 Specify that standards of cleanliness must be followed.

                 Specify that the county agriculture commissioner must 
               revoke or suspend the right to use a nursery stock 
               certificate or shipping permit of any holder that fails to 
               comply with laws governing nursery stock in California.

                 Make other technical changes.


          COMMENTS

          1.According to the author, SB 625 is a work in progress.  
            Originally, this bill reintroduced the California Nursery 
            Producers Commission.  SB 625 has been amended to make 
            technical changes and minor adjustments to current nursery 
            stock licensing, inspection, certification and shipping permit 
            law.  Given the increased pressure from invasive pests and 
            their impacts on California nurseries, by requiring basic 
            cleanliness provisions, SB 625 would be a small step in 
            fighting the spread of harmful pests.  Further, supporters 
            state this bill increases protections against fraudulent use 
            of shipping permits or nursery stock certificates by requiring 
            the county agricultural commissioner to revoke certificates or 
            shipping permits of violators.

          2.SB 625 would change current law to require standards of 
            cleanliness.  However, under current law (Food &Agriculture 
            Code 6901), CDFA is required to provide periodic inspections 
            of nurseries but is given discretionary authority to prescribe 
            standards of cleanliness for nursery stock.  The committee may 
            wish to consider if F&A Code 6901 should be changed from "may" 
            to "shall" to be consistent with current changes made by     
            SB 625.    
             
          3.The Senate Rules Committee has doubled referred this bill to 
            the Senate Governance and Finance Committee as the second 
            committee of referral.  Therefore, if the committee approves 
            this measure, the motion should include an action to re-refer 





          SB 625 - Page 3


            the bill to the Senate Committee on Governance and Finance.


          SUPPORT
          
          Dave Wilson Nursery
          Sunlet Nursery, Inc.

          OPPOSITION
          
          None received