AB 1132, as introduced, Eggman. Commercial feed: license fee: inspection tonnage tax.
Existing law requires that a license be obtained from the Secretary of Food and Agriculture for each location where commercial feed is manufactured, distributed, sold, or stored for later sale. Existing law requires each license application to be accompanied by an annual fee specified by the Department of Food and Agriculture for each location of at least $100, but not exceeding $600, with the specific fee to be set by the secretary upon recommendation of the Feed Inspection Advisory Board. Beginning on January 1, 2015, the license fee is required to be $100 for each location. The funds collected are deposited into the Department of Food and Agriculture Fund and are continuously appropriated for purposes relating to the manufacture and distribution of commercial feed.
This bill would extend the date on which the new fee requirement of $100 for each location would take effect from January 1, 2015, to January 1, 2020. By extending the time during which a higher license fee may be applied, the bill would increase the fees that are deposited into a continuously appropriated fund, thereby making an appropriation.
(2) Existing law establishes an inspection tonnage tax for commercial feed, as specified, with a maximum rate of $0.15 per ton. The funds collected are deposited into the Department of Food and Agriculture Fund, and are continuously appropriated for purposes of the provisions regulating commercial feed. Existing law, until January 1, 2015, authorizes the secretary to designate a specified amount of the tonnage taxes collected to provide funding for research and education regarding the safe manufacture, distribution, and use of commercial feed.
This bill would extend the secretary’s authority to designate a specified amount of the tonnage taxes collected for those purposes from January 1, 2015, to January 1, 2020. This would constitute a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2⁄3 of the membership of each house of the Legislature. By extending the purposes for which funds in a continuously appropriated fund may be spent, the bill would make an appropriation.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 15053 of the Food and Agricultural Code
2 is amended to read:
(a) Each application for a license shall be accompanied
4by an annual fee specified by the department for each location.
5Beginning on January 1, 2007, the minimum license fee shall be
6one hundred dollars ($100) for each location and the maximum
7license fee for each location shall not exceed six hundred dollars
8($600) for each location with the specific fee to be set by the
9secretary upon recommendation of the Feed Inspection Advisory
10Board. Those licensees with feed licenses on the effective date of
11the bill who have previously paid their license fees for the then
12current fiscal year shall not be subject to any new fees until their
13licenses are renewed. Beginning January 1,begin delete 2015end deletebegin insert
2020end insert, the license
14fee shall be one hundred dollars ($100) for each location. Those
15licensees with feed licenses on that date who have previously paid
16their license fees for the then current fiscal year shall not be subject
17to any new license fees until their licenses are renewed.
P3 1(b) Revenues generated from license fees shall be used to
2replenish feed inspection program reserves to a minimum of 25
3percent of program expenditures, after which point some of the
4revenues from these fees shall be used to reduce feed tonnage taxes
5provided for in this chapter upon recommendation of the Feed
6Inspection Advisory Board.
Section 15061 of the Food and Agricultural Code, as
8amended by Section 74 of Chapter 328 of the Statutes of 2010, is
9amended to read:
(a) An inspection tonnage tax at the maximum rate of
11fifteen cents ($0.15) per ton of commercial feed sold, except whole
12grains, and whole hays when unmixed, shall be paid to the secretary
13by any person who distributes commercial feed to a
14consumer-buyer in this state. The distributor shall also pay an
15inspection tonnage tax for purchased commercial feed fed to his
16or her own animals.
17(b) The secretary may, based upon a finding and
18recommendation of the Feed Inspection Advisory Board, determine
19the specific rate necessary to provide the revenue needed to carry
20out the provisions of this chapter. The secretary and the Feed
21Inspection Advisory Board shall not exceed the maximum tonnage
22rate established by this section. Setting the tonnage tax rate shall
23not be subject
to Chapter 3.5 (commencing with Section 11340)
24of Part 1 of Division 3 of Title 2 of the Government Code.
25(c) The secretary may, based upon a finding and
26recommendation of the Feed Inspection Advisory Board, designate
2715 percent of the tonnage taxes collected, or two hundred thousand
28dollars ($200,000), whichever amount is greater, to provide funding
29for research and education regarding the safe manufacture,
30distribution, and use of commercial feed. These funds may only
31be spent on activities approved by the Feed Inspection Advisory
32Board, with approval being madebegin delete prior toend deletebegin insert beforeend insert any expenditure.
33(d) This section shall remain in effect only until January 1,begin delete 2015end delete
34begin insert
2020end insert, and as of that date is repealed, unless a later enacted statute,
35that is enacted before January 1,begin delete 2015end deletebegin insert
2020end insert, deletes or extends
36that date.
Section 15061 of the Food and Agricultural Code, as
38amended by Section 3 of Chapter 245 of the Statutes of 2009, is
39amended to read:
(a) An inspection tonnage tax at the maximum rate of
2fifteen cents ($0.15) per ton of commercial feed sold, except whole
3grains, and whole hays when unmixed, shall be paid to the secretary
4by any person who distributes commercial feed to a
5consumer-buyer in this state. The distributor shall also pay an
6inspection tonnage tax for purchased commercial feed fed to his
7or her own animals.
8(b) The secretary may, based upon a finding and
9recommendation of the Feed Inspection Advisory Board, determine
10the specific rate necessary to provide the revenue needed to carry
11out the provisions of this chapter. The secretary and the Feed
12Inspection Advisory Board shall not exceed the maximum tonnage
13rate established by this section. Setting the tonnage tax rate shall
14not be subject
to Chapter 3.5 (commencing with Section 11340)
15of Part 1 of Division 3 of Title 2 of the Government Code.
16(c) This section shall become operative on January 1,begin delete 2015end delete
17begin insert 2020end insert.
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