BILL ANALYSIS �
AB 1132
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1132 (Eggman) - As Introduced: February 22, 2013
Policy Committee: AgricultureVote:7
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the sunset date for the Secretary of Food and
Agriculture's authority to establish and collect a license fee
and tonnage tax on commercial animal feed. Specifically, this
bill:
1)Extends from January 1, 2015, to January 1, 2020, the
authority of the California Department of Food and Agriculture
(CDFA) to establish an annual license fee range from $100 to
$600 for each location where commercial feed is stored,
manufactured, sold or distributed. On January 1, 2020, absent
further extension, the fee will be reduced to a flat $100 per
location.
2)Extends from January 1, 2015, to January 1, 2020, the
authority of the CDFA to designate 15%, or $200,000, whichever
amount is greater, of the revenue from the inspection tonnage
tax to be used for education and research regarding the safe
handling of commercial feed.
3)Extends from January 1, 2015, to January 1, 2020, the
authority of the CDFA to impose an inspection tonnage tax of
up to $0.15 per ton for the sale of commercial feed.
FISCAL EFFECT
1)Negligible costs to the CDFA Feed Inspection Program funds or
the General Fund.
2)In 2012-13, the Commercial Feed License Fee is expected to
generate $528,900 in revenue for the program. Without the
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extension of the sunset for the enhanced fee authority, the
revenue will fall to approximately $176,300, a loss of
$352,600 in revenue for the program.
3)Over the last three years the commercial feed tonnage tax has
provided $1.9 million in revenue annually for operating the
feed inspection program. Currently, the tax is not at the
maximum allowed under the law. The current rate is $0.08 per
ton.
COMMENTS
1)Purpose . The intent of this legislation is to continue the
enhanced funding of the commercial feed inspection program
until January 1, 2020. Without this extension, funding would
be inadequate to maintain the current program.
2)Background . The Feed Inspection Program was established to
ensure the quality and safety of commercial feed. Inspecting
the feed ensures the health and safety of the animals and the
food supply. Several years ago, funding for the program was
lagging. The industry stepped forward with legislation to
address these concerns by increasing the industry licensing
fees.
3)Why extend the sunset now ? It has generally been the policy of
this committee to encourage authors to wait to extend sunset
dates on programs until the year prior to the sunset. It is
unclear why the Legislature needs to extend this sunset at
this time.
4)Related Legislation . AB 547 (Mendoza), Statutes of 2009,
Chapter 245, extended the sunset date from January 1, 2010 to
January 15, 2015 for the Secretary of the Department of Food
and Agriculture to (a) set a specific fee for feed licenses,
and (b) designate a specified amount of commercial feed
tonnage taxes collected for funding research and education
regarding the safe manufacture, distribution, and use of
commercial feed.
AB 2958 (Agriculture) Statutes of 2006, Chapter 285, allowed
commercial feed to be sold by volume, in addition to weight;
replaced the $100 biennial commercial feed license fee with an
annual fee of at least $100, but not more than $600, upon
recommendation of the Board, until January 1, 2010; required
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the license fee revenue to replenish the Program reserves to
25% of its expenditures, after which point the license fee
revenue must be used to reduce feed tonnage taxes to a level
recommended by the Board; and, increased, from $40 to $100,
the penalty imposed for late renewal of a commercial feed
license.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081