BILL ANALYSIS �
SENATE COMMITTEE on AGRICULTURE
Senator Cathleen Galgiani, Chair
BILL NO: SB 1399 HEARING: 04/01/14
AUTHOR: Galgiani FISCAL: Yes
VERSION: 03/26/14 CONSULTANT: Anne Megaro
Agricultural seed: county seed enforcement subventions.
SUMMARY :
This bill would extend the operation and repeal dates for
provisions of the California Seed Law, including an annual
county subvention for enforcement activities necessary to carry
out these provisions, until July 1, 2019 and January 1, 2020,
respectively. This bill would give greater discretion to the
secretary of the California Department of Food and Agriculture,
in consultation with the Seed Board, to determine the formula
used to reimburse commissioners for their work enforcing the
seed law and would allow for multi-year memorandums of
understanding between commissioners and CDFA.
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. In return, county agricultural commissioners receive
annual subvention payments for expenses incurred in association
with approved enforcement work plans (Food and Agriculture Code
(FAC) �52251, et seq.).
Funding for this program is entirely supported through industry
seed assessments and registration fees and is administered by
CDFA. Every labeler of agricultural or vegetable seed offered
for sale in California, or any person who sells that seed in
this state, must annually register as a seed labeler and pay an
annual fee of $40. In addition, those who are registered seed
labelers must also pay an assessment capped at 40 cents per $100
gross annual dollar volume sales. The secretary shall determine
the rate of assessment, not to exceed the department's cost of
carrying out these provisions (FAC �52321; 52351-6).
CDFA allocates $120,000 for subvention payments among all
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counties for costs incurred by enforcement of the CSL. At the
discretion of the secretary and upon recommendation of the Seed
Advisory Board, counties with no registered seed labelers may
annually receive $100. Agricultural commissioners in counties
with registered seed labelers shall receive subventions based
upon the volume of work performed (FAC �52323-5).
PROPOSED LAW :
This bill:
1. Extends from July 1, 2016 to July 1, 2019 the
inoperative date, and from January 1, 2017 to January 1,
2020 the repeal date, of an optional county subvention
program for enforcement activities of provisions of the
California Seed Law.
2. Repeals the formula used to calculate the reimbursement
of subvention funds to county agricultural commissioners
for work performed enforcing the California Seed Law.
3. Authorizes the secretary of CDFA, in consultation with
the Seed Advisory Board, to determine the subvention fund
distribution formula.
4. Allows for multi-year memorandums of understanding
between commissioners and CDFA.
COMMENTS :
Purpose of Bill: According to the author, this bill is
necessary for the continued allocation of industry-derived
subvention funds to counties for the enforcement of the
California Seed Law. These payments provide county agricultural
commissioners the ability to perform local seed inspection and
enforcement services to ensure that seed sold in California is
properly and accurately identified on the product label.
Without this subvention, it is unlikely that the CSL would be
enforced in a cost-effective manner.
Commissioner Subvention: There is a question as to whether the
formula used to pay subvention funds to county agricultural
commissioners should be updated to more accurately distribute
the $120,000 among counties. This bill would address this issue
and allow the secretary of CDFA, in consultation with the Seed
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Advisory Board, greater flexibility and discretion in
determining the subvention distribution formula.
MOU: Currently, annual memorandums of understanding (MOU) are
required between commissioners and CDFA to determine work to be
performed. Extending to multi-year MOUs will reduce
administrative costs and reduce paperwork burden on
commissioners.
Additional Concerns: In addition to updating the distribution
formula, there is a question as to whether the total monies
available for subvention should be increased. These discussions
are ongoing and will be addressed at future Seed Advisory Board
meetings.
RELATED LEGISLATION :
SB 348 (Galgiani), Chapter 385, Statutes of 2013. Extends to
January 1, 2017, the operation of provisions of the California
Seed Law, including a subvention program.
AB 1255 (T. Berryhill), Chapter 281, Statutes of 2009. Extends
to January 1, 2015, the operation of provisions of the
California Seed Law, including a subvention program.
AB 856 (Galgiani), Chapter 425, Statutes of 2008. Extends to
January 1, 2010, the operation of provisions of the California
Seed Law, including a subvention program. Provides that the
minimum $100 subvention may not be allocated to counties without
registered seed labelers.
AB 315 (Salinas), Chapter 394, Statutes of 2003. Requires the
secretary to pay a total annual subvention to counties of
$120,000. Extends to July 1, 2009, the operation of provisions
in the California Seed Law.
SUPPORT :
California Seed Association (Sponsor)
California Agricultural Commissioners and Sealers Association
Rural County Representatives of California
OPPOSITION :
None received
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