BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: AB 2716 Hearing Date: 6/21/16 ----------------------------------------------------------------- |Author: |Dodd | |-----------+-----------------------------------------------------| |Version: |3/10/16 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- Subject: Meat processing establishment, custom livestock slaughterhouse, and poultry plants: licensing and inspectors SUMMARY : This bill would extend, until January 1, 2022, the licensing fees for livestock and poultry meat inspectors, livestock meat processing inspectors, and livestock processing facilities, slaughterhouses, and poultry plants, as specified. BACKGROUND AND EXISTING LAW : The California Meat and Poultry Inspection Act is designed to protect the health and welfare of consumers from unwholesome, adulterated, or misbranded meat and poultry. The inspection programs enforce requirements that are at least equal to those imposed and enforced under the Federal Meat Inspection Act and the Federal Poultry Products Inspection Act in order to comply with intrastate operations and commerce. The Meat, Poultry and Egg Safety Branch within the California Department of Food and Agriculture (CDFA) is responsible for issuing licenses, training and evaluating inspectors, and inspecting meat, poultry, and egg production facilities that are exempt from USDA inspection. These facilities include custom livestock slaughterhouses, meat processors, and some poultry plants, as specified. Existing law: AB 2716 (Dodd) Page 2 of ? 1) Authorizes the secretary of CDFA to adopt rules, regulations, and standards regarding the inspection, sanitation, preparation, processing, buying, selling, transporting, storing, identifying, recordkeeping, registration, and labeling of livestock and poultry products (Food and Agricultural Code § 18650 et seq.; § 24501 et seq.). 2) Requires livestock meat inspectors and processing inspectors to obtain a license and pay a $100 licensing fee and a $25 penalty late fee, if applicable. 3) Requires meat processing and custom livestock slaughterhouses to obtain a license and pay a $500 licensing fee, or more depending on number of animals slaughtered, as specified. 4) Prohibits the operation of a slaughterhouse that is not licensed, is not clean, does not meet building or equipment sanitary standards, violates an order of a licensed inspector, misbrands or mislabels livestock and poultry products, or disposes of condemned and inedible carcasses in a manner that violates law and/or regulations. 5) Requires poultry plants to obtain a license from CDFA and pay a $500 licensing fee, or more depending on number of animals slaughtered, as specified. 6) Requires poultry meat inspectors to obtain a license and pay a $100 licensing fee and a $25 penalty late fee, if applicable. PROPOSED LAW : This bill: 1) Extends to January 1, 2022, livestock meat inspector and processing inspector licenses and fees. 2) Extends to January 1, 2022, meat processing and custom livestock slaughterhouse licenses and fees. 3) Extends to January 1, 2022, poultry meat inspector and AB 2716 (Dodd) Page 3 of ? poultry plant licenses and fees. 4) Deletes an obsolete provision. ARGUMENTS IN SUPPORT: According to the author, "Due to general fund (GF) budget shortfalls in 2011, the Meat, Poultry and Egg Safety Branch within the California Department of Food and Agriculture (CDFA) had their GF reduced by approximately $200,000, and then by approximately $325,000 in 2012, which impacted several public health and safety 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 120; Statutes of 2011) which significantly increased the fees while CDFA streamlined the administration of these programs. These increased fees were given a five year sunset in order to have both the fees and administration of the program reviewed. The current fee structure and administrative changes have worked well and their sunsets need to be extended." COMMENTS : Need for this bill. CDFA's General Fund allocation was cut by roughly $30 million, or one-third, during the 2011-2012 state budget reductions. Specifically, the Meat, Poultry and Egg Safety Branch General Fund support was reduced by approximately $200,000 in 2011 and $325,000 in 2012. In response, the secretary was directed to convene meetings with agricultural stakeholders to find solutions to limit the need for state resources and improve fiscal responsibility. Some of the solutions that arose from these meetings included establishing and raising fees. In the case of livestock and poultry licenses, fees were raised with the caveat that they be reviewed every five years according to the sunset date. The increased license fees generate approximately $200,000 in annual revenue. RELATED LEGISLATION : AB 120 (Budget) Chapter 113, Statutes of 2011. Among other provisions, authorizes CDFA, until January 1, 2017, to increase the licensing fees for livestock and poultry meat inspectors, AB 2716 (Dodd) Page 4 of ? livestock meat processing inspectors, and livestock processing facilities, slaughterhouses, and poultry plants. PRIOR ACTIONS : ------------------------------------------------------------------ |Assembly Floor: |79 - 0 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |19 - 0 | |--------------------------------------+---------------------------| |Assembly Agriculture Committee: |10 - 0 | | | | ------------------------------------------------------------------ SUPPORT : California Farm Bureau Federation (Sponsor) California Cattlemen's Association California Poultry Federation OPPOSITION : None received -- END --