BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 2504         Hearing Date:  6/21/16
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          |Author:    |Committee on Agriculture                             |
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          |Version:   |6/15/16   Amended                                    |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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              Subject:  Seed Advisory Board: assessments: alfalfa seed  
                                      producers


           SUMMARY  :
          This bill would authorize the Seed Advisory Board to make  
          recommendations to the secretary of the California Department of  
          Food and Agriculture(CDFA) to assess alfalfa seed sold in this  
          state to fund research to benefit the alfalfa forage industry;  
          would authorize the board to assess alfalfa hay producers up to  
          $0.10 per pound of alfalfa seed sold by the producer; and, upon  
          recommendation of the Seed Advisory Board, establishes an  
          alfalfa seed subcommittee, as specified.


           BACKGROUND AND EXISTING  
          LAW  :
          The California Seed Law (CSL) was enacted in 1967 to ensure that  
          agricultural and vegetable seed is properly and accurately  
          identified on the product label.  Seed is analyzed through the  
          Seed Services Program administered by CDFA.  The CSL is locally  
          enforced by county agricultural commissioners, who enter into  
          cooperative agreements with the secretary of CDFA and agree to  
          maintain a statewide compliance level on all seed sold in the  
          county.  Funding for this program is entirely supported through  
          industry seed assessments and registration fees and is  
          administered by CDFA.  (Food and Agriculture Code (FAC) §52251,  
          et seq.).

          The Seed Advisory Board was created to make recommendations to  
          the secretary of CDFA in regards to seed law and regulations,  







          AB 2504 (Committee on Agriculture)               Page 2 of ?
          
          
          enforcement, seed laboratory diagnostics, and annual budgets.   
          Advisory board members are appointed by the secretary and  
          consist of registered seed labelers representing seed  
          production, conditioning, marketing and utilization; persons who  
          receive or possess seed for sale in California; and two members  
          of the public.

          Existing law:

             1)   Authorizes the secretary of CDFA to regulate seed sold  
               in California to ensure that agricultural and vegetable  
               seed is properly and accurately identified on the product  
               label (Food and Agricultural Code § 52251 et seq.). 

             2)   Establishes the Seed Advisory Board to make  
               recommendations to the secretary of CDFA in regards to seed  
               law and regulations, enforcement, seed laboratory  
               diagnostics, and annual budgets.


           PROPOSED  
          LAW  :

          This bill:

             1)   Authorizes the Seed Advisory Board to make  
               recommendations to the secretary of CDFA to assess alfalfa  
               seed sold in this state to fund research to benefit the  
               alfalfa forage industry.

             2)   Authorizes the Seed Advisory Board to assess alfalfa hay  
               producers up to $0.10 per pound of alfalfa seed sold by the  
               producer to fund research to benefit the alfalfa forage  
               industry.

             3)   Authorizes the secretary of CDFA, upon the imposition of  
               an assessment fee, to appoint an alfalfa seed subcommittee  
               to advise the secretary on funding alfalfa research with  
               the proceeds of the assessments collected.  

             4)   Comprises the nine-member subcommittee as follows: eight  
               alfalfa hay producers, two from each of the 4 specified  
               regions, and one public member. 










          AB 2504 (Committee on Agriculture)               Page 3 of ?
          
          
           ARGUMENTS IN SUPPORT:
           According to the author, "AB 2504 would allow the Seed Advisory  
          Board to advise and make recommendations on assessments to fund  
          research for the benefit the alfalfa seed industry to the  
          Secretary of the California Department of Food and Agriculture.  
          Alfalfa is California's tenth largest commodity with a farm gate  
          value in 2014 of $1.4 billion. Alfalfa hay is planted on  
          approximately 875,000 acres in the state.  

          Currently in California there is less than $25,000 dedicated to  
          alfalfa seed research by the Alfalfa Seed Production Research  
          Board.  Nationally, alfalfa ranks third in value at $10.7  
          billion, behind only corn and soybeans.  There is only $2.1  
          million allocated for alfalfa research by the federal  
          government.  

          To be clear, AB 2504 does not prescribe an assessment.  It  
          allows the Seed Advisory Board, which is made up of labelers and  
          sellers of seed, to make recommendations to CDFA, if the Board  
          decides there is a need to fund alfalfa seed research."


           ARGUMENTS IN OPPOSITION:
           According to the California Seed Association, this bill would  
          "create a unique and unprecedented assessment just on alfalfa  
          seed for alfalfa forage research.  Currently there are already  
          three funding sources for alfalfa forage research. [?]  Prior to  
          implementing an additional assessment on just one type of seed  
          for activities unrelated to the seed program, a thorough review  
          of these other funding sources and the research plan should be  
          commenced."


           COMMENTS  :

          Need for this bill. According to the author, there are very  
          little funds dedicated to California alfalfa research.  Given  
          California's unique climate conditions, research conducted in  
          this state can more specifically address the challenges facing  
          California alfalfa producers, such as irrigation methods and  
          drought resistance.  This bill would allow the Seed Advisory  
          Board to make recommendations to CDFA to assess alfalfa seed  
          producers to fund alfalfa research.  Furthermore, according to  
          proponents, this bill provides an opportunity to create a  
          dedicated funding source, ensuring long term research  








          AB 2504 (Committee on Agriculture)               Page 4 of ?
          
          
          commitments by the University of California to improve alfalfa  
          production.

          Alfalfa. California leads the nation in alfalfa hay and seed  
          production. In 2014-15, alfalfa hay was California's 11th top  
          agricultural commodity with a farm gate value of $1.4 billion,  
          and alfalfa seed ranked 63rd with a $72 million farm gate value.  
           Nationally, alfalfa hay is the 10th most valuable agricultural  
          commodity, valued at $8.5 billion.

          Alfalfa research funding. The Alfalfa Seed Production Research  
          Program was established in 1973 as a Marketing Order within CDFA  
          and is governed by the Alfalfa Seed Production Research Board.   
          This program was developed to provide funds for research  
          relating to the production of alfalfa seed.  The program is  
          funded through an industry assessment paid equally between  
          alfalfa seed producers and processors, and the annual budget is  
          $35,000.  A public hearing is held by CDFA every five years to  
          reconsider the continuation of this program, and the last  
          hearing was held in 2012. 

          On February 12, 2016, USDA announced the availability of $1.85  
          million in funding for the Alfalfa Forage and Research Program,  
          created by the 2014 Farm Bill, which funds research that  
          improves alfalfa forage and seed yields and trains producers to  
          utilize best management practices.  Past projects include  
          research conducted at UC Davis to ensure the sustainability of  
          Western U.S. alfalfa production by developing irrigation  
          strategies and resilience to drought.  Each project can receive  
          maximum funding of $250,000, with a required 100% match.

          The National Alfalfa & Forage Alliance (NAFA) announced on May  
          3, 2016, the development of the U.S. Alfalfa Farmer Research  
          Initiative (alfalfa checkoff program), a "farmer-funded  
          investment in alfalfa-related research to help drive innovation  
          and profitability in the alfalfa industry."  Participation in  
          this program is voluntary by seed brand, and the assessment is  
          $1 per bag of alfalfa seed.  According to the NAFA president,  
          "Until now, alfalfa was the only major crop without a  
          farmer-funded checkoff program."  NAFA plans to develop a list  
          of research priorities and circulate a Request for Proposals to  
          all known public U.S. alfalfa researchers.


           PRIOR  








          AB 2504 (Committee on Agriculture)               Page 5 of ?
          
          
          ACTIONS  :
                         
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          |Assembly Floor:                       |79 - 0                     |
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          |Assembly Appropriations Committee:    |19 - 0                     |
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          |Assembly Agriculture Committee:       |10 - 0                     |
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           SUPPORT  :
          
          California Farm Bureau Federation (Sponsor)


           OPPOSITION  :
          
          California Seed Association

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