BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1399
                                                                  Page  1


          SENATE THIRD READING
          SB 1399 (Galgiani)
          As Amended  March 26, 2014
          Majority vote 

           SENATE VOTE  :35-0  
           
           AGRICULTURE         7-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Eggman, Olsen, Dahle,     |Ayes:|Gatto, Bigelow,           |
          |     |Pan, Quirk, Salas, Yamada |     |Bocanegra, Bradford, Ian  |
          |     |                          |     |Calderon, Campos,         |
          |     |                          |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Holden, Jones, Linder,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Lowenthal                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Extends the dates the California Seed Law (CSL) will  
          become inoperable to July 1, 2019, and changes the methodology  
          for county subventions.  Specifically,  this bill  :   

          1)Extends from July 1, 2016, to July 1, 2019, the inoperative  
            dates, and from January 1, 2017, to January 1, 2020, the  
            repeal dates of an optional county subvention program for  
            enforcement activities, and other provisions of CSL.

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

          3)Authorizes the Secretary of the California Department of Food  
            and Agriculture (CDFA), in consultation with the Seed Advisory  
            Board (board), to determine the subvention fund distribution  
            formula.

          4)Repeals the annual calculation for reimbursement for seed  
            activities between CACs and CDFA, conforming to 2) above.

           EXISTING LAW  provides for an optional CSL subvention program  
          under which a county may enter into a cooperative agreement with  








                                                                  SB 1399
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          CDFA to receive an annual apportionment of funds for maintaining  
          a statewide compliance level on all seed within the county; a  
          county with no registered seed labelers may annually receive  
          $100, at the discretion of CDFA and upon recommendation of the  
          board; and, a county with registered seed labeler operations may  
          annually receive a subvention based on enforcement activity  
          generated by the registered seed labeler operations within the  
          county, and upon the performance of enforcement activities in  
          accordance with specified methodology for calculating  
          apportionments based on units of activity.  Existing law becomes  
          inoperative on July 1, 2016, except as specified, and repeals  
          those provisions on January 1, 2017.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, insignificant costs to the CDFA; and, CDFA's Seed  
          Services Program has a current annual budget of $120,000 and is  
          funded through industry assessments and registration fees.

           COMMENTS  :  According to the author, extension of the inoperative  
          dates or sunsets will permit the continued allocation of  
          industry-derived subvention funds to various counties for the  
          enforcement of the CSL.  These payments provide CACs, on behalf  
          of CDFA, 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 as cost-effective manner.  

          This bill will address the question of whether the formula used  
          to pay subvention funds to CACs should be updated to more  
          accurately distribute the $120,000 among counties, or if this  
          amount should be increased, by allowing CDFA, in consultation  
          with the board, greater flexibility and discretion in  
          determining the subvention distribution formula.

          The seed industry and CACs have been in discussion for several  
          years on updating the distribution formula, including whether  
          the total monies available for subvention should be increased.   
          These discussions are ongoing and should be addressed at future  
          board meetings.

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








                                                                  SB 1399
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          AB 1255 (Tom Berryhill), Chapter 281, Statutes of 2009, extended  
          to January 1, 2015, the operation of provisions of CSL,  
          including a subvention program.  

          AB 856 (Galgiani), Chapter 425, Statutes of 2008, extended to  
          January 1, 2010, the operation of provisions of CSL, including a  
          subvention program, and provided that the minimum $100  
          subvention may not be allocated to counties without registered  
          seed labelers.

          AB 315 (Salinas), Chapter 394, Statutes of 2003, required CDFA  
          to pay a total annual subvention to counties of $120,000, and  
          extended to July 1, 2009, the operation of provisions in CSL.


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084 


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