BILL ANALYSIS Ó SENATE COMMITTEE on AGRICULTURE Senator Cathleen Galgiani, Chair BILL NO: SB 348 HEARING: 04/02/13 AUTHOR: Galgiani FISCAL: Yes VERSION: 02/20/13 CONSULTANT: Anne Megaro Agricultural seed: county seed enforcement subventions SUMMARY : This bill extends the operation and repeal dates for provisions of the California Seed Law, including an annual county subvention for enforcement activities necessary to carry out these provisions, until July 1, 2019 and January 1, 2020, respectively. BACKGROUND AND EXISTING LAW : The California Seed Law (CSL) was enacted in 1967 to ensure that agricultural and vegetable seed is properly and accurately identified on the product label. Seed is analyzed through the Seed Services program administered by the California Department of Food and Agriculture (CDFA). The CSL is locally enforced by county agricultural commissioners who enter into cooperative agreements with the secretary of CDFA and agree to maintain a statewide compliance level on all seed sold in the county. In return, county agricultural commissioners receive annual subvention payments for expenses incurred in association with approved enforcement work plans (Food and Agriculture Code (FAC) § 52251, et seq.). Funding for this program is entirely supported through industry seed assessments and registration fees and is administered by CDFA. Every labeler of agricultural or vegetable seed offered for sale in California, or any person who sells that seed in this state, must annually register as a seed labeler and pay an annual fee of $40. In addition, those who are registered seed labelers must also pay an assessment capped at 40 cents per $100 gross annual dollar volume sales. The secretary shall determine the rate of assessment, not to exceed the department's cost of carrying out these provisions (FAC § 52321; 52351-6). CDFA allocates $120,000 for subvention payments among all counties for costs incurred by enforcement of the CSL. At the discretion of the secretary and upon recommendation of the Seed Advisory Board, counties with no registered seed labelers may annually receive $100. Counties with registered seed labelers shall receive subventions based upon the volume of work SB 348 - Page 2 performed (FAC § 52323-5). Currently, there are 13 counties that do not have registered seed labelers and receive subvention funds: Alpine, Amador, Calaveras, Del Norte, El Dorado, Inyo, Lake, Mariposa, Mono, Plumas, Sierra, Trinity, and Tuolumne. In addition, there are three counties with registered seed labelers that received subvention funds but did not complete approved work plans: Contra Costa, Marin, and Napa. PROPOSED LAW : This bill: 1. Extends from July 1, 2014 to July 1, 2019 the inoperative date, and from January 1, 2015 to January 1, 2020 the repeal date, of an optional county subvention program for enforcement activities of provisions of the California Seed Law. 2. Makes technical amendments. COMMENTS : Purpose of Bill: According to the author, this bill is necessary for the continued allocation of industry-derived subvention funds to counties for the enforcement of the California Seed Law. These payments provide county agricultural commissioners the ability to perform local seed inspection and enforcement services to ensure that seed sold in California is properly and accurately identified on the product label. Without this subvention, it is unlikely that the CSL would be enforced in a cost-effective manner. Sunset Date: The sunset dates for these provisions have been extended several times since 1993, and this bill marks the third extension within 10 years. The last extension in 2009 was passed with zero "no" votes. Therefore, the committee may wish to consider if the sunset dates should be repealed, making these provisions permanent. RELATED LEGISLATION : AB 1255 (T. Berryhill), Chapter 281, Statutes of 2009. Extends to January 1, 2015, the operation of provisions of the SB 348 - Page 3 California Seed Law, including a subvention program. AB 856 (Galgiani), Chapter 425, Statutes of 2008. Extends to January 1, 2010, the operation of provisions of the California Seed Law, including a subvention program. Provides that the minimum $100 subvention may not be allocated to counties without registered seed labelers. AB 315 (Salinas), Chapter 394, Statutes of 2003. Requires the secretary to pay a total annual subvention to counties of $120,000. Extends to July 1, 2009, the operation of provisions in the California Seed Law. SUPPORT : California Seed Association (Sponsor) Rural County Representatives of California OPPOSITION : None received