BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2716 (Dodd) - Meat processing establishment, custom livestock
slaughterhouse, and poultry plants: licensing and inspectors
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|Version: March 10, 2016 |Policy Vote: AGRI. 5 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Robert Ingenito |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 2716 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.
Fiscal
Impact: This bill would not result in additional costs to the
California Department of Food and Agriculture (CDFA).
Background: CDFA's Meat, Poultry and Egg Safety Branch (Branch) is
responsible for (1) issuing licenses, (2) training and
evaluating inspectors, and (3) inspecting meat, poultry, and egg
production facilities that are exempt from USDA inspection.
AB 2716 (Dodd) Page 1 of
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CDFA's General Fund budget was reduced by about one-third (or
$30 million), in 2011-12. Specifically, General Fund support for
the Branch was reduced by approximately $200,000 in 2011-12 and
$325,000 in 2012-13. Subsequently, CDFA was directed to convene
meetings with agricultural stakeholders to produce alternatives
which limit the need for state resources, including 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.
Thus, current law (1) 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, (2)
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, (3) 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, (4) 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, and
(5) requires poultry meat inspectors to obtain a license and pay
a $100 licensing fee and a $25 penalty late fee, if applicable.
CDFA's Meat, Poultry and Egg Safety Branch is industry-funded by
registration, licensing, and enforcement fees, and mill
assessments on egg shipments in the State. The extension of the
sunset provisions as specified in this proposal, would allow for
the continued funding and operation of the program.
Proposed Law:
This bill would extend the sunset date, until January 1, 2022,
for statutes authorizing the licensing and renewal of livestock
meat inspectors, processing inspectors, persons operating a meat
processing establishment, a custom livestock slaughterhouse, or
AB 2716 (Dodd) Page 2 of
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a poultry plant, and fees charged for changes in the ownership
of a custom livestock slaughterhouse, as enforced by CDFA.
Related
Legislation: AB 120 (Budget Committee, 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, livestock meat processing inspectors, and
livestock processing facilities, slaughterhouses, and poultry
plants.
Staff Comments: CDFA's Meat, Poultry and Egg Safety Branch is
industry-funded by registration, licensing, and enforcement
fees, and mill assessments on egg shipments in the State. The
extension of the sunset provisions as specified in this
proposal, would allow for the continued funding and operation of
the program.
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