BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    AB 1255                   HEARING:  7/7/09
          AUTHOR:   T. Berryhill                FISCAL:  Yes
          VERSION:  2/27/09                     CONSULTANT:  John Chandler
          
               Agricultural seed: county seed enforcement subventions.

          BACKGROUND AND EXISTING LAW

          The California Seed Law (CSL) was created in 1967 to ensure  
          product accuracy for seeds and seed labeling.  In 1973, the Seed  
          Advisory Board was created and charged with enforcing standards  
          in the seed industry, with the industry covering the costs of  
          the program.  These standards provide consumer protection by  
          providing germination and purity requirements and labeling  
          standards for each package. 

          To insure the integrity and quality of both the seeds and their  
          labels, the legislature empowered the county agricultural  
          commissioners with enforcing many of the provisions of the CSL.   
          The California Department of Food and Agriculture (CDFA) pays  
          counties an annual subvention of $120,000 for costs incurred in  
          the enforcement of the CSL.  Counties choosing to participate in  
          this program receive subvention funds based on units of  
          enforcement activity generated by the registered seed labeler  
          operations and enforcement performance as determined by the  
          Secretary of CDFA.  At the discretion of CDFA, counties with no  
          registered seed labelers may receive $100. The annual assessment  
          cannot exceed $0.40 per $100 of sales.

          This subvention program providing funding to counties for CSL  
          enforcement will sunset on January 1, 2010.  CDFA's  
          administrative reimbursement and annual subvention to counties  
          for costs incurred in the enforcement will sunset on July 1,  
          2009.

          AB 856 (Parra) Chapter 425, Statutes of 2008, allowed the  
          department to not distribute to counties that do not have  
          registered seed labelers the required minimum $100 seed  
          subvention funds.  It also extended the sunset from July 1,  
          2009, to January 1, 2010.

          PROPOSED LAW

          AB 1255 will extend the sunset for county subvention funds for  
          seed law enforcement from 2010 to 2015.





          AB 1255 - Page 2


          COMMENTS

          1.Proponents of AB 1255 state seed subvention funds provide  
            counties with a source of revenue from the seed industry to  
            cover a portion of their costs for enforcing the California  
            Seed Law.  Seed subvention funds also provide county  
            agricultural commissioners with the ability to quickly respond  
            to seed inspection needs and keep current with testing and  
            sampling procedures.

          2.AB 1255 will extend the sunset for the subvention program  
            apportionment to counties.  However, there are two other  
            sections of code dealing with seed subvention funds that will  
            sunset on July 1, 2009.  Those sections deal with the costs of  
            administering the chapter which includes a requirement to pay  
            in arrears $120,000 to counties for enforcement and subvention  
            cooperative agreement which outlines county agriculture and  
            CDFA interaction on subvention funds.  The committee may wish  
            to consider if these other sections due to sunset should be  
            included in this sunset extension bill.

          PRIOR ACTIONS

          Assembly Floor 76-0
          Assembly Appropriations16-0
          Assembly Agriculture  8-0

          SUPPORT
          
          California Agricultural Commissioners & Sealers Association
          California Seed Association
          Regional Council of Rural Counties

          OPPOSITION
          
          None received