BILL ANALYSIS Ó AB 2716 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2716 (Dodd) - As Amended March 10, 2016 ----------------------------------------------------------------- |Policy |Agriculture |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 2716 Page 3 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