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