BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1270 (Galgiani) - Diseased animals and poultry: regulation: fee schedule ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 18, 2016 |Policy Vote: AGRI. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 16, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: SB 1270 would extend the sunset date from January 1, 2017 to January 1, 2022 for 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. Fiscal SB 1270 (Galgiani) Page 1 of ? Impact: CDFA notes that it has yet to ever exercise this fee authority. Consequently, no revenue has ever been collected. The bill would not impact CDFA's administrative costs. Background: CDFA's Animal Health Branch (AHB) focuses on protecting livestock populations from devastating diseases that require statewide coordination. 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 (mad cow disease), and avian diseases. AHB also permits and monitors over 2 million animals entering California annually. Proposed Law: This bill would extend the sunset date for five years, 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. Related Legislation: AB 120 (Committee on Budget), Chapter 133, Statutes of 2011. The budget trailer bill, 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 payer. The fee may not exceed $500 for each license, permit, registration, product, or service. Staff Comments: CDFA's General Fund budget was reduced by roughly $30 million, or one-third, in 2011-12. CDFA was directed to convene meetings with agricultural stakeholders to find solutions to limit the need for state resources. Toward that end, a budget trailer bill (AB 120, 2011) authorized CDFA to seek reimbursement for services where the service only benefits the payee and not the public in general. Under current law, CDFA's fee authority would sunset on January 1, 2017. The bill would extend CDFA's fee authority for five years to recover the reasonable costs associated with animal SB 1270 (Galgiani) Page 2 of ? health services that do not provide a "public good." For example, in some remote areas of the State, there are no private veterinarians certified by CDFA to do specific regulated work, such as test cattle for tuberculosis or administer a vaccine for brucellosis. In these 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. This bill would allow CDFA to continue to seek reimbursement to cover the costs of these services. Extending the sunset date of the existing statute would have no fiscal impact to CDFA. The department has never exercised this authority and as a result, has never collected revenue since its inception. -- END --