BILL ANALYSIS Ó SB 348 Page 1 SENATE THIRD READING SB 348 (Galgiani) As Amended August 7, 2013 Majority vote SENATE VOTE :38-0 AGRICULTURE 7-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Eggman, Olsen, Atkins, |Ayes:|Gatto, Harkey, Bigelow, | | |Dahle, Pan, Quirk, Yamada | |Bocanegra, Bradford, Ian | | | | |Calderon, Campos, | | | | |Donnelly, Eggman, Gomez, | | | | |Hall, Holden, Linder, | | | | |Pan, Quirk, Wagner, Weber | | | | | | ----------------------------------------------------------------- SUMMARY : Extends the provisions and repeal dates of the California Seed Law (CSL) and county subventions, until July 1, 2016, and January 1, 2017, respectfully. EXISTING LAW permits the California Department of Food and Agriculture (CDFA) to pay counties annually for the costs incurred in the enforcement of CSL by the county commissioners. These payments are made to the counties at the discretion of CDFA and upon the recommendation of the Seed Advisory Board (SAB), and those counties without activities may receive $100. FISCAL EFFECT : According to Assembly Appropriations Committee, CDFA sends $120,000 per year (special funds) to California's counties in order to fund the enforcement of the CSL provisions; and, CDFA estimates that without subventions they would need approximately $500,000 annually to enforce the CSL. COMMENTS : The CSL was enacted in 1967 to ensure that agricultural seed is properly and accurately identified on the product label. Seed is analyzed through the Seed Services program, administered by CDFA. The CSL is locally enforced by county agricultural commissioners who enter into cooperative agreements with 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. SB 348 Page 2 Funding for this program is through industry seed assessments and registration fees, and is administered by CDFA. Every labeler of agricultural 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 $0.40 per $100 gross annual dollar volume sales. CDFA determines the rate of assessment, not to exceed the department's cost of carrying out these provisions. The SAB, commissioners, and CDFA, are in discussions as to how to rework the funding structure to better reflect the current needs of everyone. Due to these concerns, the sunset is being extended for two years rather than the typical five years. This will give the parties a chance to work out a resolution. Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084FN: 0001839