BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1399
                                                                  Page  1

          Date of Hearing:   June 18, 2014

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                           Susan Talamantes Eggman, Chair
                   SB 1399 (Galgiani) - As Amended:  March 26, 2014

           SENATE VOTE  :   35-0
           
          SUBJECT  :  Agricultural seed: county seed enforcement  
          subventions.

           SUMMARY  :  Extends inoperable dates of the California Seed Law  
          (CSL) to July 1, 2019, and changes the methodology for county  
          subventions.  Specifically,  this bill :   

          1)Extends from July 1, 2016, to July 1, 2019, the inoperative  
            dates, and from January 1, 2017, to January 1, 2020, the  
            repeal dates of an optional county subvention program for  
            enforcement activities, and other provisions of CSL.

          2)Repeals the formula used to calculate the reimbursement of  
            subvention funds to county agricultural commissioners (CACs)  
            for work performed enforcing CSL.

          3)Authorizes the Secretary of the California Department of Food  
            and Agriculture (CDFA), in consultation with the Seed Advisory  
            Board (board), to determine the subvention fund distribution  
            formula.

          4)Repeals the annual calculation for reimbursement for seed  
            activities between CACs and CDFA, conforming to item 2) above.

           EXISTING LAW  provides for an optional CSL subvention program  
          under which a county may enter into a cooperative agreement with  
          CDFA to receive an annual apportionment of funds for maintaining  
          a statewide compliance level on all seed within the county; a  
          county with no registered seed labelers may annually receive  
          $100, at the discretion of CDFA and upon recommendation of the  
          board; and, a county with registered seed labeler operations may  
          annually receive a subvention based on enforcement activity  
          generated by the registered seed labeler operations within the  
          county, and upon the performance of enforcement activities in  
          accordance with specified methodology for calculating  
          apportionments based on units of activity.  Existing law becomes  
          inoperative on July 1, 2016, except as specified, and repeals  








                                                                  SB 1399
                                                                  Page  2

          those provisions on January 1, 2017.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  According to the author, extension of the operative  
          dates or sunsets, will permit the continued allocation of  
          industry-derived subvention funds to various counties for the  
          enforcement of CSL.  These payments provide CACs, on behalf of  
          CDFA, 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 CSL would be  
          enforced in as cost-effective manner.  

          The question as to whether the formula used to pay subvention  
          funds to CACs should be updated to more accurately distribute  
          the $120,000 among counties, or if this amount should be  
          increased.  This bill would address one issue, by allowing CDFA,  
          in consultation with the Seed Advisory Board, greater  
          flexibility and discretion in determining the subvention  
          distribution formula.

          The seed industry and CACs have been in discussion for several  
          years on updating the distribution formula, including whether  
          the total monies available for subvention should be increased.   
          These discussions are ongoing and should be addressed at future  
          board meetings.

           PREVIOUS LEGISLATION  :  SB 348 (Galgiani), Chapter 385, Statutes  
          of 2013, extended to January 1, 2017, the operation of  
          provisions of CSL, including a subvention program.  

          AB 1255 (Tom Berryhill), Chapter 281, Statutes of 2009, extended  
          to January 1, 2015, the operation of provisions of CSL,  
          including a subvention program.  

          AB 856 (Galgiani), Chapter 425, Statutes of 2008, extended to  
          January 1, 2010, the operation of provisions of CSL, including a  
          subvention program, and provided that the minimum $100  
          subvention may not be allocated to counties without registered  
          seed labelers.

          AB 315 (Salinas), Chapter 394, Statutes of 2003, required CDFA  
          to pay a total annual subvention to counties of $120,000, and  








                                                                 SB 1399
                                                                  Page  3

          extended to July 1, 2009, the operation of provisions in CSL.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 

           California Agricultural Commissioners and Sealers Association
          California Seed Association
          Rural County Representatives of California
           
            Opposition

           None on file 


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084