BILL NUMBER: AB 3045	CHAPTERED  08/30/04

	CHAPTER  352
	FILED WITH SECRETARY OF STATE  AUGUST 30, 2004
	APPROVED BY GOVERNOR  AUGUST 27, 2004
	PASSED THE SENATE  AUGUST 12, 2004
	PASSED THE ASSEMBLY  MAY 10, 2004
	AMENDED IN ASSEMBLY  MAY 3, 2004
	AMENDED IN ASSEMBLY  APRIL 22, 2004

INTRODUCED BY   Committee on Agriculture (Matthews (Chair), Berg,
Oropeza, Parra, Salinas, Vargas, and Wiggins)

                        FEBRUARY 26, 2004

   An act to amend Section 33294 of the Food and Agricultural Code,
relating to milk.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3045, Committee on Agriculture.  Milk:  inspection fees.
   Existing law requires every person that is engaged in the
production of market milk outside the jurisdiction of an approved
milk inspection service and every person engaged in the processing,
manufacture, or distribution of milk, milk products, or products
resembling milk products, or in the processing, manufacture, or
freezing of ice cream, ice milk, sherbet, or any similar frozen
product to pay a cost-related inspection fee to the Secretary of Food
and Agriculture.  Existing law requires the secretary to fix the fee
for dairy farm inspection, as specified.
   This bill would require the secretary to charge a dairy farm all
actual direct costs for initial and any followup dairy farm
inspections for a facility out of compliance in the initial
inspection, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 33294 of the Food and Agricultural Code is
amended to read:
   33294.  (a) The secretary shall fix the fee for dairy farm
inspection not to exceed the actual directly related costs.
   (b) Whenever the secretary finds that the cost of administering
this chapter can be defrayed from revenue derived from lower fees,
the secretary may adjust the fee, but in no case shall the initial
inspection fee for producers who sell market milk at wholesale that
is to be sold as graded market milk, exceed three mills ($0.003) per
gallon of the first 45,000 gallons only on graded market milk that
was sold during the quarter-year period preceding the date the
inspection fee becomes due and payable.
   (c) Notwithstanding the fee limit specified in this section for
producers, the secretary may increase the inspection fee by an amount
not to exceed one quarter mill ($0.00025) per gallon per annum.
   (d) The secretary shall charge a dairy farm all actual direct
costs for initial and any followup dairy farm inspections for a
facility out of compliance in the initial inspection.  However, in no
event shall the fee for an initial inspection exceed the limitation
established in subdivisions (a) and (b).