BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 625|
          |Office of Senate Floor Analyses   |                         |
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                                 THIRD READING


          Bill No:  SB 625
          Author:   Hernandez (D)
          Amended:  1/9/12
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  5-0, 1/5/12
          AYES:  Cannella, Rubio, Berryhill, La Malfa, Wolk
          NO VOTE RECORDED:  Evans, Vargas
          
           SENATE APPROPRIATIONS COMMITTEE  :  8-0, 1/17/12
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Steinberg
          NO VOTE RECORDED:  Runner


           SUBJECT  :    Nursery stock

           SOURCE  :     Author


           DIGEST :    This bill reduces the refund amount of the 
          licensing fee from 50 percent to 25 percent to sellers of 
          nursery stock who later decide they will not engage in 
          these sales; requires that the Secretary of the California 
          Department of Food and Agriculture prescribe standards of 
          cleanliness for nursery stock; specifies that standards of 
          cleanliness must be followed; and specifies 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.

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           ANALYSIS  :    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.  Existing 
          law specifies that the standard of cleanliness may include 
          requiring that all nursery stock be kept free and clean of 
          pests; prescribing methods of treatment of various types of 
          nursery stock for control of pests; requiring isolation of 
          infested or infected nursery stock pending treatment or 
          disposal; and making provisions to ensure all nursery stock 
          produced or sold in California be free from pests.

          Under existing 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.

          This bill:

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


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          2. Requires the Secretary of CDFA to prescribe standards of 
             cleanliness for nursery stock.  Specifies that standards 
             of cleanliness for nursery stock must be followed.

          3. Specifies 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.

          4. Makes other technical changes.

           Comments
           
          According to the author's office, this bill is a work in 
          progress.  Originally, this bill reintroduced the 
          California Nursery Producers Commission.  This bill 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, this bill would be a small step in fighting the 
          spread of harmful pests.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions       2012-13     2013-14    2014-15     Fund  

            Adoption of pest     Up to $200, one-time         
            Special*
            cleanliness regulations

            Licensing fee refund           minor annual revenue 
            increase,            Special*
            reduction            likely less than $5 annually

            * Department of Food and Agriculture Fund


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           SUPPORT  :   (Verified  1/23/12)

          California Association of Nurseries and Garden Centers


          MEL:mw  1/23/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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