BILL ANALYSIS                                                                                                                                                                                                    

          |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) 
          Vote:     21 

           SENATE AGRICULTURE COMMITTEE:  5-0, 4/19/16
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk

           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SUBJECT:   Diseased animals and poultry:  regulation:  fee  

          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.  

          Existing law:

          1)Requires CDFA to investigate any contagious, infectious, or  
            transmissible disease affecting domestic animals in  

          2)Requires the state veterinarian to make regulations to prevent  
            bovine tuberculosis from entering and spreading within  


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          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  

          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  

          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.

          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.

          2011 Budget.  CDFA's General Fund allocation was cut by roughly  
          $30 million, or one-third, during the 2011-2012 state budget  


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          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  


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          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,  

          Prepared by:Anne Megaro / AGRI. / (916) 651-1508
          5/18/16 16:28:02

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