BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2716


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          Date of Hearing:   April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2716 (Dodd) - As Amended March 10, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill extends the sunset of fees for livestock and poultry  
          processing programs from January 1, 2017, to January 1, 2022.  
          Specifically, this bill extends the following fees:  


          1)The application, renewal, and penalty fees for a livestock  
            meat inspector's license or a processing inspector's license. 









                                                                    AB 2716


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          2)The application, renewal, and penalty fees for a meat  
            processing establishment's license or a custom livestock  
            slaughterhouse's license. 


          3)The application, renewal, and penalty fees for a poultry  
            plant's license and poultry plant inspector's license. 


          FISCAL EFFECT:


          No additional costs to the California Department of Food and  
          Agriculture (CDFA). Absent the provisions in this bill, the  
          Meat, Poultry, and Egg Safety Branch would see a significant  
          drop in industry funds that support the Branch.  


          COMMENTS:


          1)Purpose and background. CDFA is responsible for licensing and  
            overseeing livestock and poultry slaughterhouses and  
            processing plants. As a result of General Fund (GF) budget  
            shortfalls, the Meat, Poultry and Egg Safety Branch within  
            CDFA had their GF reduced by approximately $200,000 and  
            $325,000 in 2011 and 2012, respectively. This reduction had a  
            major fiscal impact to several public health and safety  
            programs, including the licensing inspection programs. 



            Through discussions with the affected industry and licensees,  
            CDFA developed a new licensee and renewal fee structure that  
            was adopted in a Budget Trailer Bill AB 112, (Budget), Chapter  
            30, Statutes of 2011, which significantly increased the  
            licensees' fees while CDFA streamlined the administration of  
            these programs. These increased fees were given a five year  








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            sunset in order to have both the fees and administration of  
            the program reviewed. According to supporters of this bill,  
            these programs have operated in a reasonable manner making  
            continuation of the sunsets without adjustment to the fee  
            levels a reasonable request.


          2)Meat, Poultry and Egg Safety Branch budget. The branch  
            currently has a total budget of $7.6 million, consisting of  
            approximately $3.0 million GF, $4.3 million industry funds,  
            and $277,000 federal funds. 



          Analysis Prepared by:Luke Reidenbach / APPR. / (916)  
          319-2081