BILL ANALYSIS
AB 547
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Date of Hearing: April 15, 2009
ASSEMBLY COMMITTEE ON AGRICULTURE
Cathleen Galgiani, Chair
AB 547 (Mendoza) - As Introduced: February 25, 2009
SUBJECT : Commercial Feed: license fee: inspection tonnage tax.
SUMMARY : Extends a license fee and a feed tonnage tax authority
until January 1, 2015. Specifically, this bill :
1)Changes the date for reduction of location license fees to a
flat $100, from January 1, 2001, to January 1, 2015.
2)Extends the date for the Secretary (Secretary) of the
California Department of Food and Agriculture (CDFA) to
designate 15%, up to a maximum of $200,000, which ever amount
is greater, of the inspection tonnage tax to be used for
research and education regarding the safe manufacturing,
distribution and use of commercial feed from January 1, 2001
to January 1, 2015.
3)Extends the date for the Secretary to impose a maximum
inspection tonnage tax of $0.15 per ton for the sale of
commercial feed by any person distributing commercial feed to
a consumer-buyer in this state, from January 1, 2001 to
January 1, 2015.
EXISTING LAW requires for each location that commercial feed is
manufactured, distributed, sold or stored for later sale, a
license and fee of not less than $100 or more than $600, as
recommended to the Secretary by the Feed Inspection Advisory
Board (Board), until January 1, 2001, at which time the license
fee will be $100. Statutes authorize an inspection tonnage tax
on commercial feed at a maximum rate of $0.15 per ton and
permits, until January 1, 2010, the Secretary, upon findings and
recommendations by the Board, to designate a specific portion of
that inspection tonnage tax, but not more than 15% or $200,000
whichever amount is greater annually, to be used for research
and education regarding safe manufacturing, distribution and use
of commercial feed until January 1, 2001.
FISCAL EFFECT : Unknown. Legislative Counsel has keyed this
bill fiscal.
AB 547
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COMMENTS : The Feed Inspection Program (Program) was established
to ensure the quality and safety of commercial feed and that it
was being properly handled. These actions further ensure the
health and safety of animals and our food supply.
Several years ago the funding of the Program was below its needs
and the reserves had been depleted. The industry stepped
forward with legislation (see Previous Legislation) to address
these and other concerns. These changes have been successful in
continuing the Program and inspections. This industry's Board
maintains oversight of funds used and activities by CDFA. AB
547 simply extends the previous sunsets in order to continue the
current structure and funding of the program.
Previous Legislation: AB 2958 (Agriculture), Statutes of 2006,
Chapter 285. This bill allowed commercial feed to be sold by
volume, in addition to weight; replaced the $100 biennial
commercial feed license fee with an annual fee of at least $100,
but not more than $600, upon recommendation of the Board, until
January 1, 2010; required the license fee revenue to replenish
the Program reserves to 25% of its expenditures, after which
point the license fee revenue must be used to reduce feed
tonnage taxes to a level recommended by the Board; and,
increased, from $40 to $100, the penalty imposed for late
renewal of a commercial feed license.
AB 1071 (Matthews), Statutes of 2004, Chapter 929. This bill
expanded the use of commercial feed inspection funds to include
research and education until January 1, 2010; extended the
sunsets to 2011 for the licensing of renderers, collection
centers and the registration of transporters of inedible kitchen
grease and collection centers; permitted the use of rendered
products in accordance with the United States Food and Drug
Administration rules and regulations; and, required a registrant
to notify a county health officer when a contract is terminated
or expires.
REGISTERED SUPPORT / OPPOSITION :
Support
California Grain and Feed Association (Sponsor)
Pacific Egg and Poultry Association
Opposition
AB 547
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None on file
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084