BILL ANALYSIS Ó
SB 625
Page 1
Date of Hearing: June 27, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 625 (Hernandez) - As Amended: May 30, 2012
Policy Committee: AgricultureVote:9
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Secretary of the California Department of
Food and Agriculture (CDFA) to prescribe cleanliness standards
for nursery stock in California and allows the Secretary to
develop an audit-based certification system (ABCS) for nursery
stock shipments. Specifically, this bill:
1)Allows the Secretary of CDFA to develop and implement an ABCS.
2)Requires an ABCS to address the control and management of
plant pests, and lessen the risk of movement of plant pests in
nursery shipments.
3)Requires an ABCS be a risk based system using current
scientific and industry data, and includes best management
practices.
4)Reduces the refund amount from 50% to 25% to those applicants
who later decide they will not engage in the sale of nursery
stock.
FISCAL EFFECT
1)Should CDFA decide to develop an ABCS, it would require
$255,000 to develop the program and promulgate regulations.
It is unclear from the legislation exactly what the ABCS would
entail; depending on the scope it could cost up to $5 million
per year for counties to conduct the auditing and inspection
activities associated with the ABCS and for state oversight.
Existing licensing fees in the nursery program are
SB 625
Page 2
insufficient to cover the costs associated with the ABCS.
Funding would likely need to be redirected from the GF or the
Department of Food and Agriculture Fund.
2)The required changes to the nursery stock cleanliness
standards could cost in excess of $150,000 to implement. Those
costs would be one-time Department of Food and Agriculture
Fund costs.
3)The change in the maximum refund amount from 50% to 25% of the
minimum license fee would have little fiscal impact. In 2010,
one refund in the amount of $75 was made under section 6278 of
the Food and Ag Code. This was 50% percent of the license
fee. In 2011, no refunds were made.
COMMENTS
1)Purpose . 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
revenue generated from the license fee supports the nursery
inspection program, a program that ensures nursery stock meets
prescribed standards for pest cleanliness.
According to the author, most plant pest quarantines impact
the nursery industry and restrict the movement of products,
which creates significant economic harm. Currently, nurseries
are required to incorporate pest management practices on a
pest-by-pest basis, which results in significant costs and
duplication of effort. The author states an ABCS approach, as
proposed in this bill, would allow nurseries that incorporate
current pest management practices to avoid some of the
distressing results of quarantines placed on nurseries when
new pests are found in the state.
2)Audit-Based Certification System (ABCS) . An ABCS is designed
to allow nurseries to follow certain past management practices
and self-certify that their nursery stock is free of pests and
invasive species. The certified nurseries provide records and
submit to inspections and audits.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081
SB 625
Page 3