BILL NUMBER: AB 547 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 31, 2009
PASSED THE ASSEMBLY MAY 11, 2009
INTRODUCED BY Assembly Member Mendoza
FEBRUARY 25, 2009
An act to amend Sections 15053 and 15061 of the Food and
Agricultural Code, relating to commercial feed, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 547, Mendoza. Commercial feed: license fee: inspection tonnage
tax.
(1) Existing law requires that a license be obtained from the
Secretary of Food and Agriculture for each location where commercial
feed is manufactured, distributed, sold, or stored for later sale.
Existing law requires each license application to be accompanied by
an annual fee specified by the Department of Food and Agriculture for
each location of at least $100, but not exceeding $600, with the
specific fee to be set by the secretary upon recommendation of the
Feed Inspection Advisory Board. Beginning January 1, 2010, the
license fee is required to be $100 for each location. The funds
collected are deposited into the continuously appropriated Food and
Agriculture Fund.
This bill would instead require the license fee to be $100 for
each location beginning January 1, 2015.
By extending the time during which a higher license fee may be
applied, this bill would increase the fees that are deposited into a
continuously appropriated fund thereby making an appropriation.
(2) Existing law establishes an inspection tonnage tax for
commercial feed, as specified, with a maximum rate of $0.15 per ton.
The funds collected are deposited into the continuously appropriated
Food and Agriculture Fund.
Existing law, until January 1, 2010, authorizes the Secretary of
Food and Agriculture to designate a specified amount of the tonnage
taxes collected to provide funding for research and education
regarding the safe manufacture, distribution, and use of commercial
feed.
This bill would extend to January 1, 2015, that authority of the
secretary to designate a specified amount of the tonnage taxes
collected for those purposes.
By extending the purposes for which funds in a continuously
appropriated fund may be spent, this bill would make an
appropriation.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15053 of the Food and Agricultural Code is
amended to read:
15053. (a) Each application for a license shall be accompanied by
an annual fee specified by the department for each location.
Beginning on January 1, 2007, the minimum license fee shall be one
hundred dollars ($100) for each location and the maximum license fee
for each location shall not exceed six hundred dollars ($600) for
each location with the specific fee to be set by the secretary upon
recommendation of the Feed Inspection Advisory Board. Those licensees
with feed licenses on the effective date of the bill who have
previously paid their license fees for the then current fiscal year
shall not be subject to any new fees until their licenses are
renewed. Beginning January 1, 2015, the license fee shall be one
hundred dollars ($100) for each location. Those licensees with feed
licenses on that date who have previously paid their license fees for
the then current fiscal year shall not be subject to any new license
fees until their licenses are renewed.
(b) Revenues generated from license fees shall be used to
replenish feed inspection program reserves to a minimum of 25 percent
of program expenditures, after which point some of the revenues from
these fees shall be used to reduce feed tonnage taxes provided for
in this chapter upon recommendation of the Feed Inspection Advisory
Board.
SEC. 2. Section 15061 of the Food and Agricultural Code, as
amended by Section 1 of Chapter 929 of the Statutes of 2004, is
amended to read:
15061. (a) An inspection tonnage tax at the maximum rate of
fifteen cents ($0.15) per ton of commercial feed sold, except whole
grains, and whole hays when unmixed, shall be paid to the secretary
by any person who distributes commercial feed to a consumer-buyer in
this state. The distributor shall also pay an inspection tonnage tax
for purchased commercial feed fed to his or her own animals.
(b) The secretary may, based upon a finding and recommendation of
the Feed Inspection Advisory Board, determine the specific rate
necessary to provide the revenue needed to carry out the provisions
of this chapter. The secretary and the Feed Inspection Advisory Board
shall not exceed the maximum tonnage rate established by this
section. Setting the tonnage tax rate shall not be subject to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.
(c) The secretary may, based upon a finding and recommendation of
the Feed Inspection Advisory Board, designate 15 percent of the
tonnage taxes collected, or two hundred thousand dollars ($200,000),
whichever amount is greater, to provide funding for research and
education regarding the safe manufacture, distribution, and use of
commercial feed. These funds may only be spent on activities approved
by the Feed and Inspection Advisory Board, with approval being made
prior to any expenditure.
(d) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 3. Section 15061 of the Food and Agricultural Code, as added
by Section 2 of Chapter 929 of the Statutes of 2004, is amended to
read:
15061. (a) An inspection tonnage tax at the maximum rate of
fifteen cents ($0.15) per ton of commercial feed sold, except whole
grains, and whole hays when unmixed, shall be paid to the secretary
by any person who distributes commercial feed to a consumer-buyer in
this state. The distributor shall also pay an inspection tonnage tax
for purchased commercial feed fed to his or her own animals.
(b) The secretary may, based upon a finding and recommendation of
the Feed Inspection Advisory Board, determine the specific rate
necessary to provide the revenue needed to carry out the provisions
of this chapter. The secretary and the Feed Inspection Advisory Board
shall not exceed the maximum tonnage rate established by this
section. Setting the tonnage tax rate shall not be subject to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.
(c) This section shall become operative on January 1, 2015.