BILL ANALYSIS
SENATE FOOD and AGRICULTURE COMMITTEE
Senator Dean Florez, Chairman
BILL NO: AB 547 HEARING: 7/7/09
AUTHOR: Mendoza FISCAL: Yes
VERSION: 2/25/09 CONSULTANT: John Chandler
Commercial feed: license fee: inspection tonnage tax.
BACKGROUND AND EXISTING LAW
The Feed Inspection Program is responsible for inspecting feed
to assure buyers of proper labeling, quality, and quantity from
manufacturers of commercial feed and ensure that commercial feed
will not threaten food safety. The Feed Inspection Program
receives its funding from both commercial feed license fees and
feed tonnage tax.
Current law requires that any person who manufactures, sells, or
stores commercial feed shall obtain a license from the
California Department of Food and Agriculture (CDFA) per
commercial feed location. Any person who is engaged in retail
sales of feed is exempt from the license requirement. The
license is issued annually and is accompanied by a fee of not
less than $100 and not more than $600 as recommended by the Feed
Inspection Advisory Board. After January 1, 2010, the license
fee will be $100. In the event of a late renewal of the
commercial feed license, a penalty of $100 is added to the fee.
Revenues from the licensing fee are used to replenish feed
inspection program reserves up to 25% of program expenditures
after which the revenues are used to reduce feed tonnage taxes
upon recommendation of the Feed Inspection Advisory Board. The
licensing fee is due to sunset January 1, 2010.
The feed tonnage tax may not be more that $0.15 per ton of
commercial feed, except for whole grains and whole hays unmixed,
sold to a consumer-buyer in this state. The rate of the feed
tonnage tax is determined by CDFA with recommendation from the
Feed Inspection Advisory Board.
Based on the recommendation of the Feed Inspection Advisory
Board, CDFA may designate up to 15% of the tonnage taxes
collected, or $200,000 dollars, whichever is greater, to fund
research and education on the safe maintenance, distribution,
and use of commercial feed. This authorization for research and
education funding is due to sunset on January 1, 2010.
PROPOSED LAW
AB 547 - Page 2
AB 547 will:
Extend the sunset date for the reduction of the
commercial feed license fee to $100 from 2010 to 2015.
Extend the sunset date for CDFA to designate 15%, or
$200,000, whichever is greater, for research and education
on the safe maintenance, distribution, and use of
commercial feed from 2010 to 2015.
COMMENTS
1.Proponents state that, by extending the sunset for the feed
inspection program funding authority, AB 547 will help
continue both the Feed Inspection Program and the Safe Animal
Feed Education Program for another five years. These programs
support feed inspection, enforcement, and education of feed
manufacturers on safe animal feed handling, storage, and
ingredient integrity.
PRIOR ACTIONS
Assembly Floor 80-0
Assembly Appropriations16-0
Assembly Agriculture 8-0
SUPPORT
California Grain & Feed Association
Pacific Egg & Poultry Association
OPPOSITION
None received