BILL ANALYSIS Ó
AB 264
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON AGRICULTURE
Henry T. Perea, Chair
AB
264 (Dahle) - As Introduced February 10, 2015
SUBJECT: Farm products: produce dealers: seeds.
SUMMARY: This bill removes flower, agricultural, or vegetable
seeds not purchased from a producer from the list of farm
products that are regulated by the California Department of Food
and Agriculture's (CDFA) Market Enforcement Branch (MEB).
EXISTING LAW:
1. Requires that any person engaged in the business of
buying or reselling, as specified, farm products from a
licensee or producer for resale, to be licensed by MEB.
2. Defines farm products to include every agricultural,
horticultural, viticultural, and vegetable product, as
specified.
3. Provides exemption from licensing several classes of
products, including flower or agricultural or vegetable
seed not purchased from a producer.
AB 264
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4. Establishes the California Seed Law (CSL) which requires
every labeler of specified seeds for sale or that is sold
in this state, or persons receiving or possessing seeds for
sale or that sells in this state, to annually register with
CDFA, as specified, and to pay an annual assessment that
funds the activities of this law.
5. Requires labeling requirements for seed sold and that
regulations be adopted for germination standards,
enforcement tolerances and examination procedures, sampling
methods, schedule of fees, and other such regulations, as
specified. These regulations are required to be as near as
practicable to the Federal Seed Act (FSA).
FISCAL EFFECT: Unknown. This bill has been keyed fiscal by
Legislative Counsel.
COMMENTS: MEB has regulatory and fee authority over all farm
products, which includes a broad definition of agricultural
products. There are several exemptions to MEB authority,
including flower or agricultural or vegetable seed not purchased
from a producer. MEB enforces laws to protect against unfair
business practices between those who grow, package and process
California farm products.
CSL was enacted in 1967 to ensure that agricultural and
vegetable seed is properly and accurately identified on the
product label and that it meets quality standards, including
germination, variety and species. Seed labeling and standards
are also regulated under FSA. According to the author, over the
past few years there has been increasing confusion over which
seed transactions are subject to MEB oversight, which dealers
need to obtain licenses, and which seeds are regulated by CSL.
Furthermore, MEB staff have been citing seed dealers and
threatening them with fines unless they register as produce
dealers under MEB.
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The sponsor of this bill states it will simplify all seed
transactions and consolidate them under the governance of CSL
and FSA. Funding for the CSL program is through industry seed
assessments and registration fees and is administered by CDFA.
Furthermore, the sponsor stresses that there have not been any
complaints from seed farmers to MEB in more than five years. In
conversations, the sponsors pointed out that the seed industry
is a highly regulated industry with both state and federal laws,
and that only a small number of transactions in California fall
under MEB rules. This bill will help streamline seed
transactions, while still protecting buyers, sellers and the
public.
Opponents state that MEB ensures that farmers who sell their
farm products to California handlers and processors have
protections in place to provide they are properly paid for their
products and services. Exempting all seeds from products
included in the MEB's purview leaves farmers of these products
without the same protections provided to other agricultural
producers.
REGISTERED SUPPORT / OPPOSITION:
Support
California Seed Association (Sponsor)
Opposition
California Farm Bureau
Analysis Prepared
AB 264
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by: Victor Francovich/AGRI. (916) 319-2084