BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1399| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 1399 Page 2 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 CONTINUED SB 1399 Page 3 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. CONTINUED SB 1399 Page 4 JL:d 4/30/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED