BILL ANALYSIS Ó
AB 2504
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2504 (Committee on Agriculture) - As Amended March 31, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill allows the Seed Advisory Board to advise and make
recommendations on assessments to fund research to benefit the
alfalfa industry.
FISCAL EFFECT:
AB 2504
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1)Minor costs to collect data on alfalfa seeds, which the Seed
Service Program does not currently have, to inform the Seed
Advisory Board's recommendations.
2)This bill does not specify or require a level of funding for
alfalfa research. Similar research programs generally require
ongoing annual funding in the range of $100,000. It is unknown
whether assessments on alfalfa seeds alone can fund this level
research or if assessments will have to be increased on
non-alfalfa seeds as well.
COMMENTS:
1)Background and purpose. Alfalfa is California's tenth largest
commodity, and alfalfa hay is planted on approximately 875,000
acres in the state. Currently, less than $25,000 is dedicated
to alfalfa seed research by the Alfalfa Seed Production
Research Board, and there is only $2.1 million allocated for
alfalfa research by the federal government. Supporters state a
dedicated funding stream is necessary to continue important
investigations into alfalfa production and that funding source
should be dictated and recommended by representatives of the
alfalfa seed industry.
2)The seed industry and current assessments. In 2015, reported
seed sales from all crops during fiscal year 2015 were
approximately $638 million. The assessment rate for those
sales will be $0.30 per $100.00 of seed sales, bringing in in
an estimated $1.94 million.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081
AB 2504
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