BILL NUMBER: AB 1459	CHAPTERED  07/22/99

	CHAPTER   143
	FILED WITH SECRETARY OF STATE   JULY 22, 1999
	APPROVED BY GOVERNOR   JULY 21, 1999
	PASSED THE SENATE   JULY 15, 1999
	PASSED THE ASSEMBLY   MAY 20, 1999
	AMENDED IN ASSEMBLY   APRIL 19, 1999
	AMENDED IN ASSEMBLY   APRIL 14, 1999

INTRODUCED BY   Assembly Member Wiggins

                        FEBRUARY 26, 1999

   An act to amend Section 55861 of the Food and Agricultural Code,
relating to agriculture.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1459, Wiggins.  Agricultural products:  processors licensing:
fees.
   Under existing law, pertaining to the processing of farm products,
processors and cash buying processors, as those terms are defined,
are required to be licensed and to pay to the Department of Food and
Agriculture an annual license application fee in accordance with a
specified schedule determined by the annual dollar volume of business
based on farm product volumes.  The department is required to
reevaluate that fee structure in fiscal years 1998-99 and 1999-2000
and to submit a report to the Legislature within 60 days subsequent
to June 30, 2000, which shall include, but not be limited to, a
summary of the fees paid and services utilized by the various
commodity groups covered.
   This bill, instead, would require the report to include, but not
be limited to, a summary of the fees paid by commodity and dollar
volume, an analysis of whether the fee structure is appropriate to
overall program revenues, and the volume of services utilized by the
major commodity groups covered.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 55861 of the Food and Agricultural Code is
amended to read:
   55861.  (a) Except as otherwise provided in this article or in
Section 56574, each applicant for a license shall pay to the
department a fee in accordance with the schedule in subdivision (b),
except that an agent shall pay thirty-five dollars ($35) for each
license period of the principal.
   (b) The amount of the fee due each year from the applicant shall
be determined by the annual dollar volume of business based on the
value of the farm products that is returned to the grower, as
follows:
   (1) For a dollar volume of less than twenty thousand dollars
($20,000), the fee shall be one hundred dollars ($100).
   (2) For a dollar volume of twenty thousand dollars ($20,000) and
over, but less than fifty thousand dollars  ($50,000), the fee shall
be four hundred dollars ($400).  Effective January 1, 1999, for a
dollar volume of twenty thousand dollars ($20,000) and over, but less
than fifty thousand dollars ($50,000), the fee shall be three
hundred dollars ($300).  Effective January 1, 2000, for a dollar
volume of twenty thousand dollars ($20,000) and over, but less than
fifty thousand dollars ($50,000), the fee shall be two hundred
dollars ($200).
   (3) For a dollar volume of fifty thousand dollars ($50,000) and
over, but less than two million dollars ($2,000,000), the fee shall
be five hundred dollars ($500).  Effective January 1, 1999, for a
dollar volume of fifty thousand dollars ($50,000) and over, but less
than two million dollars ($2,000,000), the fee shall be four hundred
dollars ($400).  Effective January 1, 2000, for a dollar volume of
fifty thousand dollars ($50,000) and over, but less than two million
dollars ($2,000,000), the fee shall be three hundred dollars ($300).

   (4) For a dollar volume of two million dollars ($2,000,000) and
over, the fee shall be six hundred dollars ($600).  Effective January
1, 1999, for a dollar volume of two million dollars ($2,000,000) and
over, the fee shall be five hundred dollars ($500).  Effective
January 1, 2000, for a dollar volume of two million dollars
($2,000,000) and over, the fee shall be four hundred dollars ($400).

   (c) The department shall reevaluate the fee structure based on
operating costs in fiscal years 1998-99 and 1999-2000 and,
notwithstanding Section 7550.5 of the Government Code, shall report
on the fee structure to the Legislature within 60 days subsequent to
June 30, 2000.  The report shall include, but shall not be limited
to, a summary of the fees paid by commodity and dollar volume, an
analysis of whether the fee structure is appropriate to overall
program revenues, and the volume of services utilized by the major
commodity groups covered under this chapter.  The fees shall
adequately cover the costs to fully administer and operate the
program in an effective and efficient manner.