BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: SB 1270 Hearing Date: 4/19/16
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|Author: |Galgiani |
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|Version: |2/18/16 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Diseased animals and poultry: regulation: fee
schedule
SUMMARY :
This bill would authorize the California Department of Food and
Agriculture (CDFA) to establish a fee schedule to recover the
reasonable costs associated with animal health services that do
not provide a benefit beyond the payer.
BACKGROUND AND EXISTING
LAW :
The Animal Health Branch (AHB) of CDFA focuses on protecting
livestock populations from devastating diseases that cannot be
contained on the individual level and which require statewide
coordination. The AHB investigates known or suspected cases of
specified diseases, conducts animal disease surveillance and
traceability programs, and prepares and executes emergency
response planning. Examples of disease surveillance programs
include tuberculosis, brucellosis, bovine spongiform
encephalopathy (BSE or mad cow disease), and avian diseases.
According to CDFA, the AHB also permits and monitors over 2
million animals entering California every year.
Existing law:
1) Requires CDFA to investigate any contagious, infectious,
or transmissible disease affecting domestic animals in
California.
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2) Requires the state veterinarian to make regulations to
prevent bovine tuberculosis from entering and spreading
within California.
3) Authorizes CDFA to adopt regulations to control or
eradicate cattle diseases by requiring permits, limiting
intra or interstate movement of cattle, utilizing
diagnostic tests and vaccines, and mandating reporting of
suspected or confirmed diseases.
4) Requires CDFA to periodically publish a list of
reportable conditions that pose a threat to public health,
animal health, the environment, or the food supply.
5) Authorizes CDFA to establish a fee schedule to cover
reasonable costs associated with animal health services
that provide a specific benefit or service directly to the
payer and the benefit or service is not provided to those
not charged.
6) Limits fees to a maximum $500 per license, permit,
registration, product, or service.
PROPOSED
LAW :
This bill:
Extends the sunset date from January 1, 2017 to January 1, 2022,
for CDFA to establish a fee schedule to recover the reasonable
costs associated with animal health services that do not provide
a benefit to others beyond the payer.
ARGUMENTS IN SUPPORT:
According to the author, "SB 1270 would allow CDFA the
flexibility to charge a fee-for-service to recover the
reasonable costs associated with animal health services that do
not provide a "public good." By doing so, this bill would
improve CDFA's fiscal responsibility and use of General Funds
and department staff. For example, in some remote areas there
are no private veterinarians certified by CDFA to do specific
regulated work, such as test cattle for tuberculosis or
SB 1270 (Galgiani) Page 3 of ?
administer a vaccine for brucellosis. In these rare instances,
the only veterinary service available in the area is a CDFA
field veterinarian. These cattle are not suspected of
contracting these diseases and these services are not related to
an outbreak or emergency response. Therefore, CDFA is justified
to seek reimbursement to cover the costs of these services that
serve a marketing purpose and not a general public health
benefit. Currently, there is no fee schedule established to
determine cost-recovery of these services, and SB 1270 would
allow CDFA to establish this fee schedule until January 1,
2022."
COMMENTS :
2011 Budget. CDFA's General Fund allocation was cut by roughly
$30 million, or one-third, during the 2011-2012 state budget
reductions. The secretary was directed to convene meetings with
agricultural stakeholders to find solutions to limit the need
for state resources and improve fiscal responsibility.
Budget trailer bill. AB 120 of 2011 authorized CDFA to seek
reimbursement for services where the service only benefits the
payee and not the public in general. For example, in some
instances a private-practice veterinarian would provide the
service for a fee; however, only a CDFA staff veterinarian is
available. In other instances, the service is required for
personal or business matters and is not related to a suspected
animal health disease outbreak. In these instances, CDFA would
like to recover the costs for these services.
Sunset. CDFA was granted the authority to establish the fee
schedule in 2012. The final schedule is anticipated to be
released later this year.
RELATED
LEGISLATION :
AB 120 (Budget) Chapter 133, Statutes of 2011. Among other
provisions, authorizes CDFA, until January 1, 2017, to establish
a fee schedule to recover the reasonable costs associated with
animal health services that do not provide a benefit beyond the
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payer. The fee may not exceed $500 for each license, permit,
registration, product, or service.
SUPPORT :
Association of California Egg Farmers (Co-sponsor)
California Grain and Feed Association (Co-sponsor)
OPPOSITION :
None received
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