BILL ANALYSIS Ó
AB 732
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CONCURRENCE IN SENATE AMENDMENTS
AB
732 (Cooper)
As Amended August 19, 2015
Majority vote
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|ASSEMBLY: | 77-0 |(May 7, 2015) |SENATE: |39-1 | (September 1, |
| | | | | |2015) |
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Original Committee Reference: AGRI.
SUMMARY: 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
fee caps for brand registrations and cattle inspections.
The Senate amendments make conforming and related changes to those
discussed in the Assembly Agriculture Committee, as well as increase
the caps on related brand registration and cattle inspection fees.
While the increase in fee caps was not discussed by the committee,
the recommendation to increase the fees does come from the industry
advisory board that is paying the fees.
EXISTING LAW: The California Department of Food and Agriculture
AB 732
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(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.
FISCAL EFFECT: According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: 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 whose ownership is transferred in such a manner. At
$1.05 per animal, a brand inspection can be unnecessarily costly.
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 will
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 brand inspection fees were last
increased in AB 2332 (Agriculture Committee), Chapter 568, Statutes
of 2006; and the registration and hide inspection fees were last
increased in AB 472 (Agriculture Committee), Chapter 267, Statutes
of 2007. Prior to that, the last statutory fee increase was in
1991.
Analysis Prepared by: Jim
Collin / AGRI. / (916) 319-2084 FN: 0001374
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