BILL ANALYSIS �
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
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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