BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 348 (Galgiani) - Agricultural Seed: County Seed Enforcement
Subventions
Amended: As introduced Policy Vote: Agriculture 4-0
Urgency: No Mandate: No
Hearing Date: April 15, 2013 Consultant: Robert Ingenito
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: SB 348 would extend from January 1, 2015, to July
1, 2019, the operation of provisions of the California Seed Law
(CSL), including a subventions program. Because fees collected
pursuant to the California Seed Law are continuously
appropriated to the California Department of Food and
Agriculture (CDFA), by extending the operation of subvention
program, this bill would make an appropriation.
Fiscal Impact: Currently, the California Department of Food and
Agriculture (CDFA) sends $120,000 per year (special funds) to
California's counties in order to fund the enforcement of the
CSL provisions.
Staff Comments: The California Seed Law is designed to ensure
that seeds purchased by the consumer are properly identified and
of the quality represented on the tag or label. The enforcement
program provides for third party seed inspections to monitor the
accuracy of label statements (truth in labeling) as to variety
and type, purity and germination. County agricultural
commissioners enforce these provisions pursuant to cooperative
agreements with CDFA.
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. CFDA determines the rate of
assessment, not to exceed the department's cost of carrying out
SB 348 (Galgiani)
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the program.
The subventions total $120,000 annually statewide and are
allocated to counties in which there are registered seed
labelers to regulate; currently, 13 counties do not have
registered seed labelers). On a per hour basis, the subvention
provides to the counties approximately $40.00 an hour of
reported work, which is approximately one third of the counties'
expenses for seed law enforcement. The three Food and
Agriculture Code sections contained in this bill are the only
sections subject to the January 1, 2010 sunset.
Fees are collected on labelers (Food and Agriculture Code 52354
and 52354.5) and all moneys received by CDFA pursuant to the CSL
are deposited into the Food and Agriculture Fund (Food and
Agriculture Code 52321).
Failure to pass SB 348 would result in an end to the statutory
authorization for seed subventions. If counties do not receive
funds to offset seed enforcement activities, they may not
enforce the CSL. Consequently, CFDA would need to increase staff
to monitor seed-related activities in counties. Specifically,
CDFA has estimated previously that without the annual
subventions, it would require approximately $500,000 per year
for the staffing needs associated with enforcing the CSL at the
state level.