BILL ANALYSIS                                                                                                                                                                                                    Ó



                           SENATE COMMITTEE on AGRICULTURE
                          Senator Cathleen Galgiani, Chair

          BILL NO:    SB 1399                   HEARING:  04/01/14
          AUTHOR:   Galgiani                    FISCAL:  Yes
          VERSION:  03/26/14                    CONSULTANT:  Anne Megaro
          
               Agricultural seed: county seed enforcement subventions.

           SUMMARY  :
          
          This bill would extend 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.  This bill would give greater discretion to the  
          secretary of the California Department of Food and Agriculture,  
          in consultation with the Seed Board, to determine the formula  
          used to reimburse commissioners for their work enforcing the  
          seed law and would allow for multi-year memorandums of  
          understanding between commissioners and CDFA.

          
           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 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  




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          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.  Agricultural commissioners in counties  
          with registered seed labelers shall receive subventions based  
          upon the volume of work performed (FAC §52323-5).


           PROPOSED LAW  :

           This bill:
           
             1.   Extends from July 1, 2016 to July 1, 2019 the  
               inoperative date, and from January 1, 2017 to January 1,  
               2020 the repeal date, of an optional county subvention  
               program for enforcement activities of provisions of the  
               California Seed Law.

             2.   Repeals the formula used to calculate the reimbursement  
               of subvention funds to county agricultural commissioners  
               for work performed enforcing the California Seed Law.

             3.   Authorizes the secretary of CDFA, in consultation with  
               the Seed Advisory Board, to determine the subvention fund  
               distribution formula.

             4.   Allows for multi-year memorandums of understanding  
               between commissioners and CDFA.


           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.  

           Commissioner Subvention:   There is a question as to whether the  
          formula used to pay subvention funds to county agricultural  
          commissioners should be updated to more accurately distribute  
          the $120,000 among counties.  This bill would address this issue  
          and allow the secretary of CDFA, in consultation with the Seed  





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          Advisory Board, greater flexibility and discretion in  
          determining the subvention distribution formula.

           MOU:   Currently, annual memorandums of understanding (MOU) are  
          required between commissioners and CDFA to determine work to be  
          performed.  Extending to multi-year MOUs will reduce  
          administrative costs and reduce paperwork burden on  
          commissioners.  

           Additional Concerns:   In addition to updating the distribution  
          formula, there is a question as to whether the total monies  
          available for subvention should be increased.  These discussions  
          are ongoing and will be addressed at future Seed Advisory Board  
          meetings.
           
           
           RELATED LEGISLATION  :

          SB 348 (Galgiani), Chapter 385, Statutes of 2013.  Extends to  
          January 1, 2017, the operation of provisions of the California  
          Seed Law, including a subvention program.  

          AB 1255 (T. Berryhill), Chapter 281, Statutes of 2009.  Extends  
          to January 1, 2015, the operation of provisions of the  
          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)
          California Agricultural Commissioners and Sealers Association
          Rural County Representatives of California

           OPPOSITION  :
          
          None received





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