BILL NUMBER: AB 1132 CHAPTERED
BILL TEXT
CHAPTER 622
FILED WITH SECRETARY OF STATE OCTOBER 7, 2013
APPROVED BY GOVERNOR OCTOBER 7, 2013
PASSED THE SENATE SEPTEMBER 3, 2013
PASSED THE ASSEMBLY SEPTEMBER 6, 2013
AMENDED IN SENATE AUGUST 12, 2013
AMENDED IN SENATE JUNE 13, 2013
INTRODUCED BY Assembly Member Eggman
FEBRUARY 22, 2013
An act to amend Sections 14323, 14325, 14903, 15053, and 15061 of
the Food and Agricultural Code, relating to agriculture, and making
an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1132, Eggman. Agriculture: livestock drugs and commercial feed.
Existing law regulates the sale of livestock drugs by the
Secretary of Food and Agriculture, and prohibits a person from
selling a restricted drug at retail unless he or she holds a license.
Existing law authorizes a person to file an application for a
license with the secretary and requires that the application be
accompanied by an application fee of $25. Existing law establishes a
license renewal fee of $25 per year, and provides for an additional
penalty of $10 if the fee is not paid by the required date. The funds
collected are deposited into the Department of Food and Agriculture
Fund, and are continuously appropriated for purposes of the
provisions regulating livestock drugs.
This bill would increase the amount of the application fee, the
renewal fee, and the penalty fee to $50. By increasing the fees
deposited into a continuously appropriated fund, the bill would make
an appropriation.
Existing law requires the secretary to establish, by regulation,
good manufacturing practices as are necessary to carry out the
purposes of the provisions regulating commercial feed.
This bill would also require the secretary to establish
regulations for hazard analysis and preventive control measures as
are necessary to carry out those provisions.
Existing law requires that a license be obtained from the
secretary 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.
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.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14323 of the Food and Agricultural Code is
amended to read:
14323. The application shall be accompanied by an application fee
of fifty dollars ($50). The fee is not refundable if the license is
refused.
SEC. 2. Section 14325 of the Food and Agricultural Code is amended
to read:
14325. The fee for the renewal application for a license is fifty
dollars ($50) per year, payable on or before January 31 of each
year. If the fee is not paid by that date, a penalty of fifty dollars
($50) shall be added to the fee.
SEC. 3. Section 14903 of the Food and Agricultural Code is amended
to read:
14903. The secretary shall establish, by regulation, good
manufacturing practices, hazard analysis, and preventive control
measures as the secretary determines are reasonably necessary to
carry out the purposes of this chapter. The good manufacturing
practices, hazard analysis, and preventive control measures,
including verification and validation activities for all commercial
feed and additives, including medicated feed premixes and medicated
feeds, shall be based upon federal food and drug laws and
regulations, unless the secretary determines that the federal laws
and regulations are not appropriate to the conditions that exist in
this state. The regulations adopted pursuant to this section shall
ensure that drug usage under this chapter shall not conflict with the
provisions of Chapter 4 (commencing with Section 14200).
SEC. 4. 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, 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. 5. 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
before any expenditure.
(d) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 6. 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, 2020.