BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1270|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 1270
Author: Galgiani (D)
Introduced:2/18/16
Vote: 21
SENATE AGRICULTURE COMMITTEE: 5-0, 4/19/16
AYES: Galgiani, Cannella, Berryhill, Pan, Wolk
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
SUBJECT: Diseased animals and poultry: regulation: fee
schedule
SOURCE: Association of California Egg Farmers
California Grain and Feed Association
DIGEST: This bill authorizes 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.
ANALYSIS:
Existing law:
1)Requires CDFA to investigate any contagious, infectious, or
transmissible disease affecting domestic animals in
California.
2)Requires the state veterinarian to make regulations to prevent
bovine tuberculosis from entering and spreading within
SB 1270
Page 2
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.
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.
Background
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.
Comments
2011 Budget. CDFA's General Fund allocation was cut by roughly
$30 million, or one-third, during the 2011-2012 state budget
SB 1270
Page 3
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(Assembly Budget Committee,
Chapter 133, Statutes 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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, "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."
SUPPORT: (Verified5/17/16)
Association of California Egg Farmers (co-source)
California Grain and Feed Association (co-source)
OPPOSITION: (Verified5/17/16)
None received
ARGUMENTS IN SUPPORT: According to the author, "SB 1270
SB 1270
Page 4
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
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."
Prepared by:Anne Megaro / AGRI. / (916) 651-1508
5/18/16 16:28:02
**** END ****