BILL ANALYSIS
AB 547
Page 1
ASSEMBLY THIRD READING
AB 547 (Mendoza)
As Introduced February 25, 2009
Majority vote
AGRICULTURE 8-0 APPROPRIATIONS 16-0
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|Ayes:|Galgiani, Tom Berryhill, |Ayes:|De Leon, Nielsen, |
| |Arambula, Conway, Fuller, | |Ammiano, |
| |Ma, Mendoza, Yamada | |Charles Calderon, |
| | | |Krekorian, Duvall, |
| | | |Fuentes, Monning, Harkey, |
| | | |Miller, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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, whichever 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
AB 547
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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 : According to the Assembly Committee on
Appropriations, there are no costs associated with this
legislation, either for the CDFA Feed Inspection Program funds
or the state General Fund.
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.
Previous legislation: AB 2958 (Agriculture Committee), Statutes
of 2006, Chapter 285, 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, 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
AB 547
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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.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0000531