BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           547 (Mendoza)
          
          Hearing Date:  7/23/2009        Amended: As Introduced
          Consultant:  Bob Franzoia       Policy Vote: Food & Ag  4-0
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          ____
          BILL SUMMARY: AB 547 would extend from January 1, 2010 to  
          January 1, 2015, the authority of the Department of Food and  
          Agriculture (CDFA) to impose a license fee of $100 to $600 for  
          each location where commercial feed is manufactured,  
          distributed, sold, or stored for later sale.  The funds  
          collected are deposited into the Food and Agriculture Fund.   
          This bill would require the license fee to be $100 for each  
          location beginning January 1, 2015.  In addition, this bill  
          would extend for the same period the authority of CDFA to  
          establish an inspection tonnage tax for commercial fee with a  
          maximum rate of $0.15 per ton and to designate a specified  
          amount of the tonnage taxes to provide funding for research and  
          education regarding the safe manufacture, distribution, and use  
          of commercial feed.  The funds collected from the license fee  
          and from the tonnage tax are deposited into the Food and  
          Agriculture Fund.  By extending the time during which a higher  
          license fee may be applied and the authority to designate a  
          specified amount of the tonnage taxes collected, this bill would  
          (1) increase the fees that are deposited into a continuously  
          appropriated fund, and (2) extend the purposes for which funds  
          in a continuously appropriated fund may be spent, thereby making  
          an appropriation.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
          Sunset extension       $265       $530        $530      Special*
          (revenue)              $1,050     $2,100      $2,100     
          Special**              

          * Commercial Feed License Fee 
          ** Commercial Feed Tonnage Tax, both deposited in the Food and  
          Agriculture Fund
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          ____











          STAFF COMMENTS: 
          
          In 2008, the Commercial Feed License Fee generated $530,000 in  
          revenue.  Without a sunset extension for the enhanced fee  
          authority, the revenue would fall to approximately $180,000, a  
          loss of $350,000.  

          Over the last three years, the commercial feed tonnage tax has  
          generated $2.1 million annually for the operation of the feed  
          inspection program.  Currently, this tax is not at the maximum  
          allowed by statute ($0.15 per ton).  The current rate is $0.12  
          per ton.