BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 264


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          ASSEMBLY THIRD READING


          AB  
          264 (Dahle)


          As Amended  April 21, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |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          |                      |
          |                |      |                     |                      |
          |                |      |                     |                      |
           -------------------------------------------------------------------- 


          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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