BILL NUMBER: AB 1132 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Eggman
FEBRUARY 22, 2013
An act to amend Sections 15053 and 15061 of the Food and
Agricultural Code, relating to commercial feed, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
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 1. Section 15053 of the Food and Agricultural Code is
amended to read:
15053. (a) Each application for a license shall be accompanied by
an annual fee specified by the department for each location.
Beginning on January 1, 2007, the minimum license fee shall be one
hundred dollars ($100) for each location and the maximum license fee
for each location shall not exceed six hundred dollars ($600) for
each location with the specific fee to be set by the secretary upon
recommendation of the Feed Inspection Advisory Board. Those licensees
with feed licenses on the effective date of the bill who have
previously paid their license fees for the then current fiscal year
shall not be subject to any new fees until their licenses are
renewed. Beginning January 1, 2015 2020
, the license fee shall be one hundred dollars ($100) for each
location. Those licensees with feed licenses on that date who have
previously paid their license fees for the then current fiscal year
shall not be subject to any new license fees until their licenses are
renewed.
(b) Revenues generated from license fees shall be used to
replenish feed inspection program reserves to a minimum of 25 percent
of program expenditures, after which point some of the revenues from
these fees shall be used to reduce feed tonnage taxes provided for
in this chapter upon recommendation of the Feed Inspection Advisory
Board.
SEC. 2. Section 15061 of the Food and Agricultural Code, as
amended by Section 74 of Chapter 328 of the Statutes of 2010, is
amended to read:
15061. (a) An inspection tonnage tax at the maximum rate of
fifteen cents ($0.15) per ton of commercial feed sold, except whole
grains, and whole hays when unmixed, shall be paid to the secretary
by any person who distributes commercial feed to a consumer-buyer in
this state. The distributor shall also pay an inspection tonnage tax
for purchased commercial feed fed to his or her own animals.
(b) The secretary may, based upon a finding and recommendation of
the Feed Inspection Advisory Board, determine the specific rate
necessary to provide the revenue needed to carry out the provisions
of this chapter. The secretary and the Feed Inspection Advisory Board
shall not exceed the maximum tonnage rate established by this
section. Setting the tonnage tax rate shall not be subject to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.
(c) The secretary may, based upon a finding and recommendation of
the Feed Inspection Advisory Board, designate 15 percent of the
tonnage taxes collected, or two hundred thousand dollars ($200,000),
whichever amount is greater, to provide funding for research and
education regarding the safe manufacture, distribution, and use of
commercial feed. These funds may only be spent on activities approved
by the Feed Inspection Advisory Board, with approval being made
prior to before any expenditure.
(d) This section shall remain in effect only until January 1,
2015 2020 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2015 2020 , deletes or
extends that date.
SEC. 3. Section 15061 of the Food and Agricultural Code, as
amended by Section 3 of Chapter 245 of the Statutes of 2009, is
amended to read:
15061. (a) An inspection tonnage tax at the maximum rate of
fifteen cents ($0.15) per ton of commercial feed sold, except whole
grains, and whole hays when unmixed, shall be paid to the secretary
by any person who distributes commercial feed to a consumer-buyer in
this state. The distributor shall also pay an inspection tonnage tax
for purchased commercial feed fed to his or her own animals.
(b) The secretary may, based upon a finding and recommendation of
the Feed Inspection Advisory Board, determine the specific rate
necessary to provide the revenue needed to carry out the provisions
of this chapter. The secretary and the Feed Inspection Advisory Board
shall not exceed the maximum tonnage rate established by this
section. Setting the tonnage tax rate shall not be subject to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.
(c) This section shall become operative on January 1,
2015 2020 .