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 Page 2 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 Page 3 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 FN: 0004438