BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 625 (Hernandez)
          
          Hearing Date: 1/17/12           Amended: 1/9/12
          Consultant: Jennifer Douglas    Policy Vote: Ag 5-0
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          BILL SUMMARY: SB 625 would reduce the refund amount of the 
          licensing fee from 50 percent to 25 percent to sellers of 
          nursery stock who later decide they will not engage in these 
          sales and specifies that standards of pest cleanliness must be 
          followed.  This bill would also specify that the county 
          agriculture commissioner must revoke or suspend the right to use 
          a nursery stock certificate or shipping permit of any holder 
          that fails to comply with laws governing nursery stock in 
          California.
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                            Fiscal Impact (in thousands)

           Major Provisions         2012-13      2013-14       2014-15     Fund
           Adoption of pest       Up to $200, one-time             Special*
            cleanliness  regulations

          Licensing fee refund   minor annual revenue increase,   Special*
            reduction            likely less than $5 annually         
          *Department of Food and Agriculture Fund
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          STAFF COMMENTS: This bill may meet the criteria for referral to 
          the Suspense File.
          
          The Secretary of Food and Agriculture sets the licensing fee for 
          persons who sell nursery stock in California.  The revenue 
          generated from the license fee supports the nursery inspection 
          program which ensures that nursery stock meets prescribed 
          standards for pest cleanliness.  Under current regulations the 
          secretary is required to provide for periodic inspection of 
          nurseries and may prescribe standards of pest cleanliness for 
          nursery stock.  This bill requires the secretary to prescribe 
          standards of pest cleanliness for nursery stock and would make 
          specified standards of cleanliness mandatory.  









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          Under existing law, if a person decides to no longer engage in 
          the sale of nursery stock they receive a refund of 50 percent of 
          the licensing fee.  This bill would reduce that refund to 25 
          percent which could result in a minor annual revenue increase to 
          the fund.  For example, if 130 licenses are refunded that would 
          result in an annual revenue increase of approximately $5,000.

          REVISED 1/17/12