BILL ANALYSIS Ó
AB 264
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ASSEMBLY THIRD READING
AB
264 (Dahle)
As Amended April 21, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+---------------------+----------------------|
|Agriculture |10-0 |Perea, Gallagher, | |
| | |Cooper, Dahle, Dodd, | |
| | |Eggman, Grove, | |
| | |Irwin, Quirk, Salas | |
| | | | |
|----------------+------+---------------------+----------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bloom, Bonta, | |
| | |Calderon, Chang, | |
| | |Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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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
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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.
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: According the Assembly Appropriations Committee,
this bill has minor and absorbable costs to DFA and a 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.
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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.
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.
Analysis Prepared by:
Victor Francovich / AGRI. / (916) 319-2084 FN:
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