BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                       CONSENT


          Bill No:  SB 1399
          Author:   Galgiani (D)
          Amended:  3/26/14
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  5-0, 4/1/14
          AYES:  Galgiani, Cannella, Berryhill, Lieu, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Agricultural seed:  county seed enforcement  
          subventions

           SOURCE  :     California Seed Association


           DIGEST  :    This bill extends the operation and repeal dates for  
          provisions of the California Seed Law (CSL), 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 deletes the provisions establishing a  
          method of calculating apportionments based on units of activity,  
          and instead requires the amount of the subvention designated to  
          each participating county to be established in a memorandum of  
          understanding between the county agricultural commissioner and  
          the Secretary of the Department of Food and Agriculture (DFA),  
          in consultation with the Seed Advisory Board.

           ANALYSIS  :    Existing law establishes the CSL to ensure that  
          agricultural and vegetable seed is properly and accurately  
          identified on the product label.  Seed is analyzed through the  
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          Seed Services Program administered by DFA.  The CSL is locally  
          enforced by county agricultural commissioners who enter into  
          cooperative agreements with the Secretary of DFA 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.

          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 CSL.

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

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

          4. Allows for multi-year memorandums of understanding between  
             county agricultural commissioners and DFA.

           Background
           
          Funding for the CSL is entirely supported through industry seed  
          assessments and registration fees and is administered by DFA.   
          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 of DFA is required to  
          determine the rate of assessment, not to exceed the DFA's cost  
          of carrying out these provisions.

          DFA allocates $120,000 for subvention payments among all  
          counties for costs incurred by enforcement of the CSL.  At the  
          discretion of the Secretary of DFA and upon recommendation of  
          the Seed Advisory Board, counties with no registered seed  
          labelers may receive $100 annually.  Agricultural commissioners  

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          in counties with registered seed labelers receive subventions  
          based upon the volume of work performed.

           Related Legislation  

          SB 348 (Galgiani, Chapter 385, Statutes of 2013) extends to  
          January 1, 2017, the operation of provisions of the CSL,  
          including a subvention program.  

          AB 1255 (T. Berryhill, Chapter 281, Statutes of 2009) extends to  
          January 1, 2015, the operation of provisions of the CSL,  
          including a subvention program.  

          AB 856 (Galgiani, Chapter 425, Statutes of 2008) extends to  
          January 1, 2010, the operation of provisions of the CSL,  
          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 of DFA to pay a total annual subvention to counties of  
          $120,000; extends to July 1, 2009, the operation of provisions  
          in the CSL.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  4/29/14)

          California Seed Association (source)
          California Agricultural Commissioners and Sealers Association
          Rural County Representatives of California

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill is necessary for the continued allocation of  
          industry-derived subvention funds to counties for the  
          enforcement of the CSL.  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.



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          JL:d  4/30/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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