BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 732 Hearing Date: 6/30/15
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|Author: |Cooper |
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|Version: |6/24/15 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Cattle protection: brands: inspection: fees.
SUMMARY :
This bill would exempt cattle from brand inspection when sold or
ownership is transferred when all of the following apply: the
entity with a controlling interest does not change, the cattle
remain within California or the point-of-origin inspection area,
and the cattle are associated with a registered brand or dairy
exemption number. This bill would also increase specified
related fees for brand registration and cattle inspection by
approximately 20%.
BACKGROUND AND EXISTING
LAW :
The California Department of Food and Agriculture (CDFA) Bureau
of Livestock Identification is responsible for the
administration and enforcement of cattle protection by issuing
brand registration certificates and conducting inspections.
Generally, inspections are required when cattle are sold,
transported, have a transfer of ownership, and before entering a
feedlot or slaughterhouse. Funding for this program is entirely
supported through registration and inspection fees. (Food and
Agricultural Code §20001 et seq.).
Existing law:
1) Authorizes CDFA, through the Bureau of Livestock
Identification, to administer and enforce laws and
regulations that would protect cattle from theft and
misappropriation in California.
AB 732 (Cooper) Page 2 of ?
2) Authorizes CDFA to regulate and record brands that
establish or indicate cattle ownership, as specified.
3) Establishes the Livestock Identification Advisory Board
to make recommendations to the secretary of CDFA in regards
to administration and enforcement of brand laws and
regulations and the annual budget for the Bureau of
Livestock Identification. Advisory board members are
appointed by the secretary and consist of cattle producers,
dairymen, persons engaged in livestock marketing, operators
of feedlots, and a member of the public.
4) Authorizes CDFA to collect fees and penalties regarding
cattle identification, including but not limited to:
a. $60 per brand registration, renewal, or
transfer.
b. $1.05 per animal inspected, with exceptions.
c. $1.44 per carcass or hide inspected, with
exceptions.
5) Authorizes CDFA to increase cattle inspection fees up to
20% of the statutory fee upon recommendation of the
Livestock Identification Advisory Board (Food and
Agricultural Code § 20760 and 21291).
6) Requires fees and penalties collected pursuant to cattle
protection to be deposited in the Department of Food and
Agriculture Fund and used for the administration and
enforcement of cattle protection provisions.
7) Provides for civil and criminal penalties for persons in
violation of cattle branding laws. Provides penalties for
livestock grand theft, punishable by a fee of $5,000 and/or
imprisonment for up to one year (Penal Code §489).
PROPOSED
LAW :
This bill:
1) Exempts cattle from a brand inspection when sold or
ownership transferred under all of the following
circumstances:
a. The controlling interest remains unchanged.
b. Cattle will remain within California or the
point-of-origin inspection area.
AB 732 (Cooper) Page 3 of ?
c. Cattle are associated with a registered brand
or dairy exemption number.
2) Requires cattle owners, within 30 days of ownership
transfer, to self-certify their ownership in a CDFA-issued
permit application.
3) Authorizes CDFA to charge a fee, not to exceed $50, to
cover the reasonable costs of issuing or renewing the
permit.
4) Makes violations of the above provisions subject to
civil penalties currently in law for violations of cattle
inspection provisions.
5) Increases specified related fees for brand registration
and cattle inspection by approximately 20%.
ARGUMENTS IN SUPPORT:
According to the author, "California's farm families that raise
dairy and beef cattle face increasing economic pressures to
remain competitive. Passing on these family farms and ranches
is becoming increasingly difficult. There are many factors
contributing to the loss of family farms and ranches and it is
important that California works to reduce unnecessary
impediments to passing farms and ranches onto the next
generation. AB 732 would clarify that no inspection is
necessary when the controlling interest of the farm or ranch
does not change and the cattle are not being moved out of state
or out of a modified point-of-origin inspection area. This
clarification will reduce costs to families working to maintain
their farms and bring on the next generation to continue
California's successful farming tradition."
COMMENTS :
Need for this bill. Supporters of this bill provided the
committee with a recent example of a dairy farm owner who wanted
to add his son as a minority partner. This required the dairy
to be changed from a sole proprietorship to a general
partnership. Under current law, this change is considered a
change in ownership and triggers a brand inspection by the
Bureau of Livestock Identification, even though the majority
owner, business name, location, and herd remain the same. This
bill would provide an exemption from brand inspection for cattle
AB 732 (Cooper) Page 4 of ?
whose ownership is transferred in such a manner. At $1.05 per
animal, a brand inspection can be unnecessarily costly.
Fees. Existing law authorizes CDFA to increase cattle inspection
and registration fees up to 20%. On August 28, 2014, the
Livestock Identification Advisory Board passed a motion to
increase several of these fees, many of which are at or near the
maximum 20% increase. In order for the program to remain
effective, this bill would increase the current fees in code to
that which is currently charged by CDFA, while maintaining
existing authority for CDFA to increase fees by another 20%.
These fees were last increased in statute in 2006 (AB 2332;
brand inspection fees) and 2007 (AB 472; registration and hide
inspection fees). Prior to that, the last statutory fee
increase was established in 1991.
Authors amendments.
1) Add Senator Jim Nielsen as a co-author
2) On page 4, line 9, replace "in a permit application"
with "on a form"
3) On page 4, line 11, replace "issuing or renewing the
permit" with "processing the form"
RELATED
LEGISLATION :
AB 1722 (Bigelow), Chapter 129, Statutes of 2014. Prohibits
anyone from registering or owning a cattle brand for five years
if convicted of grand theft for stealing specified livestock;
requires such person to submit any cattle in their possession
for brand inspection and to pay all costs incurred; imposes a
civil penalty in the amount of $1,000 per animal found in
violation; and increases the service fee for cattle brand
inspections.
AB 924 (Bigelow), Chapter 618, Statutes of 2013. Provides that
livestock grand theft is punishable by a fine not greater than
$5,000 and/or imprisonment up to one year and allocates fines to
the Bureau of Livestock Identification to be used for case
investigation.
AB 472 (Agriculture), Chapter 267, Statutes of 2007. Increases
AB 732 (Cooper) Page 5 of ?
fees regarding cattle brand registrations and hide inspections.
AB 2332 (Agriculture), Chapter 568, Statutes of 2006. Increases
cattle inspection fees, permits specified transportation of dead
animals, and modifies the establishment of point-of-origin
inspection sites.
PRIOR
ACTIONS :
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|Assembly Floor: |77 - 0 |
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|Assembly Appropriations Committee: |17 - 0 |
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|Assembly Agriculture Committee: |10 - 0 |
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SUPPORT :
California Farm Bureau Federation (Co-Sponsor)
Milk Producers Council (Co-Sponsor)
California Cattlemen's Association
California Chamber of Commerce
OPPOSITION :
None received
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