BILL ANALYSIS Ó
AB 264
Page 1
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
264 (Dahle) - As Amended April 21, 2015
-----------------------------------------------------------------
|Policy |Agriculture |Vote:|10 - 0 |
|Committee: | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill removes flower, agricultural, and vegetable seeds not
purchased from a producer from the farm products regulated by
the Department of Food and Agriculture's (DFA) Market
Enforcement Branch (MEB) under the Producer Dealers Act, and
instead consolidates the regulation of those seeds under the
Seed Services Program (SSP) within the California Seed Law. As
a result, enforcement of financial terms and unfair practices
for the sale of seeds will be mediated by SSP and not MEB.
FISCAL EFFECT:
AB 264
Page 2
Minor and absorbable costs to DFA; potential loss of fee revenue
to MEB of up to $68,000 from seed dealers who no longer need to
be licensed under the Producer Dealers Act.
COMMENTS:
1)Purpose. The California Seed Law was enacted to ensure
agricultural and vegetable seed is properly and accurately
identified on the product label, and that it meets certain
quality standards for germination, variety, and species.
According to the author, there has been growing confusion over
which seed transactions are subject to MEB oversight and which
are exempt. MEB oversight of certain transactions has
required some seed dealers to register and obtain licenses
from MEB under the Producer Dealers Act.
The author contends that AB 264 will harmonize all seed
transactions and clarify they are governed solely by state and
federal seed laws, and not subject to the oversight and fees
of the MEB. Funding for the seed program is supported through
industry seed assessments and registration fees and is
administered by DFA.
2)Seedy Dealings. The Market Enforcement Branch currently has
regulatory and fee authority over a broad range of
agricultural products. MEB enforces, among other things, laws
to protect against unfair business practices between those who
grow, package, and process California farm products. MEB
attempts to ensure farmers who sell their products to
California handlers and processors have adequate protections
to ensure they are properly paid. Though seed dealings will
still be regulated by the SSP under this bill, exempting all
seeds from MEB's jurisdiction may leave farmers of these
AB 264
Page 3
products without the same protections provided to other
agricultural producers.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081