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
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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
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
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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