BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  AB 2716
          Author:   Dodd (D) 
          Amended:  3/10/16 in Assembly
          Vote:     21 

           SENATE AGRICULTURE COMMITTEE:  5-0, 6/21/16
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/1/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           ASSEMBLY FLOOR:  79-0, 5/5/16 (Consent) - See last page for  
            vote

           SUBJECT:   Meat processing establishment, custom livestock  
                     slaughterhouse, and poultry plants:  licensing and  
                     inspectors


          SOURCE:    California Farm Bureau Federation


          DIGEST:  This bill extends, 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.
          
          ANALYSIS:  

          Existing law:

          1)Authorizes the secretary of the California Department of Food  
            and Agriculture (CDFA) to adopt rules, regulations, and  








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            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.

          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 poultry  
            plant licenses and fees.

          4)Deletes an obsolete provision.
          
          Background

          The California Meat and Poultry Inspection Act is designed to  







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          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 CDFA is  
          responsible for issuing licenses, training and evaluating  
          inspectors, and inspecting meat, poultry, and egg production  
          facilities that are exempt from United States Department of  
          Agriculture inspection.  These facilities include custom  
          livestock slaughterhouses, meat processors, and some poultry  
          plants, as specified.  
          
          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.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee, this bill will  
          not result in additional costs to the CDFA. 


          SUPPORT:   (Verified8/2/16)








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          California Farm Bureau Federation (source)
          California Cattlemen's Association
          California Poultry Federation


          OPPOSITION:   (Verified8/2/16)


          None received

          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."

          ASSEMBLY FLOOR:  79-0, 5/5/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Beth Gaines

          Prepared by:Anne Megaro / AGRI. / (916) 651-1508
          8/3/16 19:11:03







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