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