BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1132
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1132 (Eggman)
          As Amended  August 12, 2013
          2/3 vote
           
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          |ASSEMBLY:  |77-0 |(May 29, 2013)  |SENATE: |36-0 |(September 3,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    AGRI.

          SUMMARY  :  Increases both the restricted livestock drug license  
          application fee and late payment fee to $50; authorizes the  
          Secretary of the California Department of Food and Agriculture  
          (CDFA) to establish a hazard analysis and preventive control  
          measures for all commercial feed; and, extends the sunset date  
          for commercial feed license fees, inspection tonnage tax, and  
          provisions regarding the inspection tonnage tax to January 1,  
          2020.

           The Senate amendments  expand the provisions of the bill as  
          passed by the Assembly, by adding the following:

          1)Increase the restricted livestock drug license and late  
            payment fees from $25 to $50.

          2)Authorize CDFA to establish a hazard analysis and preventive  
            control measures for all commercial feed.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, the increase in restricted livestock drug license  
          application fee is projected to increase revenues by about  
          $10,000 (special funds), and would be sufficient to fund current  
          workload; the commercial feed license fee is projected to  
          generate $528,900 in revenue (special funds); without a sunset  
          extension for the enhanced fee authority, the revenue would fall  
          to approximately $176,300, a loss of $352,600; and, the  
          commercial feed tonnage tax generates about $1.9 million  
          (special funds) annually for the operation of the feed  
          inspection program.  The tonnage tax has a statutory maximum  
          rate of $0.15 per ton while the current rate is $0.08 per ton.

           COMMENTS  :  The retail license application fee for the sale of  
          restricted livestock drugs and the renewal fee has been $25  








                                                                  AB 1132
                                                                  Page  2

          since 1976, if not longer.  The cost of handling these  
          applications has increased and this increase should cover the  
          costs of the program.

          The Feed Inspection Program (FIP) was created in 1972.  Its  
          purpose is to ensure a clean and wholesome supply of milk, meat  
          and eggs by providing clean and wholesome fodder for livestock  
          and poultry, as well as providing assurance that the product  
          received by the consumer is of the quality and quantity  
          purported by the manufacturer.  The feed industry has requested  
          to have CDFA establish a hazard analysis and preventive control  
          measures for all commercial feed.

          This is the first time the sunset on the inspection tax has been  
          considered "a tax", requiring a two-thirds vote for passage in  
          both houses.  In the past, previous to Proposition 26 of 2010,  
          this legislation required a simple majority vote in both houses  
          for passage.


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084
                                                               FN: 0001772