Existing law governs the reporting, transportation, handling, and disposal, as specified, of animals that are infected with a contagious disease. Existing law provides for the quarantine or destruction of diseased animals, and the vaccination of certain animals. Existing law requires the Secretary of Food and Agriculture to license biologic establishments that are engaged in the production of products used to diagnose and detect, or prevent or treat, disease in animals other than human beings, if those establishments meet certain requirements. Existing law authorizes, until January 1, 2017, the Department of Food and Agriculture to establish, by regulation, a fee schedule not to exceed the reasonable costs associated with carrying out these provisions, up to a maximum fee of $500 for each license, permit, registration, product, or service, as specified.

This bill would extend the operative date of the fee schedule to January 1, 2022.

Existing law authorizes the secretary to make any necessary investigations relative to reported violations of the above-described provisions.

This bill would make a nonsubstantive change to that authorization.

Existing law governs the reporting, transportation, handling, and disposal, as specified, of animals that are infected with a contagious disease. Existing law provides for the quarantine or destruction of diseased animals, and the vaccination of certain animals. Existing law requires the Secretary of Food and Agriculture to license biologic establishments that are engaged in the production of products used to diagnose and detect, or prevent or treat, disease in animals other than human beings, if those establishments meet certain requirements. Existing law authorizes, until January 1, 2017, the Department of Food and Agriculture to establish, by regulation, a fee schedule not to exceed the reasonable costs associated with carrying out these provisions, up to a maximum fee of $500 for each license, permit, registration, product, or service, as specified.

This bill would extend the operative date of the fee schedule to January 1, 2022.

Existing law authorizes the secretary to make any necessary investigations relative to reported violations of the above-described provisions.

This bill would make a nonsubstantive change to that authorization.

Existing law governs the reporting, transportation, handling, and disposal, as specified, of animals that are infected with a contagious disease. Existing law provides for the quarantine or destruction of diseased animals, and the vaccination of certain animals. Existing law requires the Secretary of Food and Agriculture to license biologic establishments which are engaged in the production of products used to diagnose and detect, or prevent or treat, disease in animals other than human beings, if those establishments meet certain requirements. Existing law authorizes, until January 1, 2017, the Department of Food and Agriculture to establish, by regulation, a fee schedule not to exceed the reasonable costs associated with carrying out these provisions, up to a maximum fee of $500 for each license, permit, registration, product, or service, as specified.

This bill would extend the operative date of the fee schedule to January 1, 2022.

Existing law authorizes the secretary to make any necessary investigations relative to reported violations of the above-described provisions.

This bill would make a nonsubstantive change to that authorization.

SENATE THIRD READING

STR Bill Id:SB 1270

Author:(Galgiani)

As Introduced Ver:February 18, 2016

Majority vote

SENATE VOTE: 36-0

SUMMARY: Extends, until January 1, 2022, the authority for the California Department of Food and Agriculture (CDFA) to establish a fee schedule for cost recovery related to animal health services that do not provide benefits beyond the payer; and, makes technical non-substantive changes.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has no additional state costs.

COMMENTS: Within CDFA, the Animal Health Branch (Branch) is the state's organized professional veterinary medical unit which addresses diseases and other problems that require statewide coordinated resources. Among its activities, the Branch conducts surveillance and emergency response planning of animal diseases to help ensure safe products from livestock and poultry.

A trailer bill to the Budget Act of 2011, AB 120 (Budget Committee), Chapter 133, Statutes of 2011, authorized CDFA to establish a fee schedule in order to recover costs associated with animal health services that do not provide a benefit beyond the payer, among other provisions. This includes a service that is required for a personal matter, is not related to a suspected animal health disease outbreak, and there are no private veterinarians certified by CDFA to perform the service. The service fee may not exceed $500 for a particular license, permit, registration, product, or service. This authority is set to sunset on January 1, 2017.

According to the author's office, this bill would improve CDFA's fiscal responsibility and use of state resources.

Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084 FN: 0003977

Date of Hearing: August 3, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 1270

Author:(Galgiani) – As Introduced Ver:February 18, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill extends the sunset from January 1, 2017 to January 1, 2022, for the California Department of Food and Agriculture (CDFA) to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer.

FISCAL EFFECT

No additional state costs.

COMMENTS:

Purpose and Background. CDFA’s Animal Health Branch (AHB) focuses on protecting livestock populations from devastating diseases that require statewide coordination. AHB investigates known or suspected cases of specified diseases, conducts animal disease surveillance and traceability programs, and prepares and executes emergency response planning. Examples of disease surveillance programs include tuberculosis, brucellosis, bovine spongiform encephalopathy (mad cow disease), and avian diseases. AHB also permits and monitors over 2 million animals entering California annually.

A trailer bill to the Budget Act of 2011, Chapter 133, Statutes of 2011 (AB 120), authorized CDFA to establish a fee schedule in order to recover costs associated with animal health services that do not provide a benefit beyond the payer, among other provisions. This includes a service that is required for a personal matter, is not related to a suspected animal health disease outbreak, and there are no private veterinarians certified by CDFA to perform the service. The author notes that such instances may occur in remote, where there are no private veterinarians certified by CDFA to do specific regulated work, such as test cattle for tuberculosis or administer a vaccine for brucellosis. In these rare instances, the only veterinary service available in the area is a CDFA field veterinarian.

The service fee may not exceed $500 for a particular license, permit, registration, product, or service. This authority is set to sunset on January 1, 2017.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: June 29, 2016

ASSEMBLY COMMITTEE ON AGRICULTURE

Bill Dodd, Chair

SBPCA Bill Id:SB 1270

Author:(Galgiani) – As Introduced Ver:February 18, 2016

SENATE VOTE: 36-0

SUBJECT: Diseased animals and poultry: regulation: fee schedule.

SUMMARY: Extends, until January 1, 2022, the authority for the California Department of Food and Agriculture (CDFA) to establish a fee schedule for cost recovery related to animal health services that do not provide benefits beyond the payer; and, makes technical non-substantive changes.

EXISTING LAW: Existing law governs the reporting, transportation, handling, and disposal, as specified, of animals that are infected with a contagious disease; provides for the quarantine or destruction of diseased animals, and the vaccination of certain animals; requires the CDFA to license biologic establishments which are engaged in the production of products used to diagnose and detect, or prevent or treat, disease in animals other than human beings, if those establishments meet certain requirements; authorizes, until January 1, 2017, CDFA to establish, by regulation, a fee schedule not to exceed the reasonable costs associated with carrying out these provisions, up to a maximum fee of $500 for each license, permit, registration, product, or service, as specified.

FISCAL EFFECT: According to the Senate Appropriations Committee, CDFA states that it has yet to ever exercise this fee authority; consequently, no revenue has ever been collected and this bill would not impact CDFA’s administrative costs.

COMMENTS: Within CDFA, the Animal Health Branch is the state’s organized professional veterinary medical unit which addresses diseases and other problems that require statewide coordinated resources. Among its activities, the Animal Health Branch conducts surveillance and emergency response planning of animal diseases to help ensure safe products from livestock and poultry.

A trailer bill to the Budget Act of 2011, Chapter 133, Statutes of 2011 (AB 120), authorized CDFA to establish a fee schedule in order to recover costs associated with animal health services that do not provide a benefit beyond the payer, among other provisions. This includes a service that is required for a personal matter, is not related to a suspected animal health disease outbreak, and there are no private veterinarians certified by CDFA to perform the service. The service fee may not exceed $500 for a particular license, permit, registration, product, or service. This authority is set to sunset on January 1, 2017.

According to the author’s office, this bill would improve CDFA's fiscal responsibility and use of state resources.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of California Egg Farmers (sponsor)

California Grain and Feed Association (sponsor)

Opposition

None on file.

Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084

 THIRD READING  

Bill No: SB 1270

Author:

:

Vote:

SENATE AGRICULTURE COMMITTEE: 5-0, 4/19/16

AYES: Galgiani, Cannella, Berryhill, Pan, Wolk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/16

AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

SUBJECT:

SOURCE: Association of California Egg Farmers

California Grain and Feed Association

DIGEST: This bill authorizes the California Department of Food and Agriculture (CDFA) to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer.

ANALYSIS:

Existing law:

1. Requires CDFA to investigate any contagious, infectious, or transmissible disease affecting domestic animals in California.
2. Requires the state veterinarian to make regulations to prevent bovine tuberculosis from entering and spreading within California.
3. Authorizes CDFA to adopt regulations to control or eradicate cattle diseases by requiring permits, limiting intra or interstate movement of cattle, utilizing diagnostic tests and vaccines, and mandating reporting of suspected or confirmed diseases.
4. Requires CDFA to periodically publish a list of reportable conditions that pose a threat to public health, animal health, the environment, or the food supply.
5. Authorizes CDFA to establish a fee schedule to cover reasonable costs associated with animal health services that provide a specific benefit or service directly to the payer and the benefit or service is not provided to those not charged.
6. Limits fees to a maximum $500 per license, permit, registration, product, or service.

This bill extends the sunset date from January 1, 2017 to January 1, 2022, for CDFA to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit to others beyond the payer.

Background

The Animal Health Branch (AHB) of CDFA focuses on protecting livestock populations from devastating diseases that cannot be contained on the individual level and which require statewide coordination. The AHB investigates known or suspected cases of specified diseases, conducts animal disease surveillance and traceability programs, and prepares and executes emergency response planning. Examples of disease surveillance programs include tuberculosis, brucellosis, bovine spongiform encephalopathy (BSE or mad cow disease), and avian diseases. According to CDFA, the AHB also permits and monitors over 2 million animals entering California every year.

Comments

2011 Budget. CDFA’s General Fund allocation was cut by roughly $30 million, or one-third, during the 2011-2012 state budget reductions. The secretary was directed to convene meetings with agricultural stakeholders to find solutions to limit the need for state resources and improve fiscal responsibility.

Budget trailer bill. AB 120 of 2011(Assembly Budget Committee, Chapter 133, Statutes of 2011) authorized CDFA to seek reimbursement for services where the service only benefits the payee and not the public in general. For example, in some instances a private-practice veterinarian would provide the service for a fee; however, only a CDFA staff veterinarian is available. In other instances, the service is required for personal or business matters and is not related to a suspected animal health disease outbreak. In these instances, CDFA would like to recover the costs for these services.

Sunset. CDFA was granted the authority to establish the fee schedule in 2012. The final schedule is anticipated to be released later this year.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, “CDFA notes that it has yet to ever exercise this fee authority. Consequently, no revenue has ever been collected. The bill would not impact CDFA’s administrative costs.”

SUPPORT: (Verified 5/17/16)

Association of California Egg Farmers (co-source)

California Grain and Feed Association (co-source)

OPPOSITION: (Verified 5/17/16)

None received

ARGUMENTS IN SUPPORT: According to the author, “SB 1270 would allow CDFA the flexibility to charge a fee-for-service to recover the reasonable costs associated with animal health services that do not provide a “public good.” By doing so, this bill would improve CDFA’s fiscal responsibility and use of General Funds and department staff. For example, in some remote areas there are no private veterinarians certified by CDFA to do specific regulated work, such as test cattle for tuberculosis or administer a vaccine for brucellosis. In these rare instances, the only veterinary service available in the area is a CDFA field veterinarian. These cattle are not suspected of contracting these diseases and these services are not related to an outbreak or emergency response. Therefore, CDFA is justified to seek reimbursement to cover the costs of these services that serve a marketing purpose and not a general public health benefit. Currently, there is no fee schedule established to determine cost-recovery of these services, and SB 1270 would allow CDFA to establish this fee schedule until January 1, 2022.”

Prepared by:

5/18/16 16:28:02

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 1270 (Galgiani) - Diseased animals and poultry: regulation: fee schedule

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

SB 1270 would extend the sunset date from January 1, 2017 to January 1, 2022 for the California Department of Food and Agriculture (CDFA) to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer.

Fiscal Impact:

CDFA notes that it has yet to ever exercise this fee authority. Consequently, no revenue has ever been collected. The bill would not impact CDFA’s administrative costs.

Background:

CDFA’s Animal Health Branch (AHB) focuses on protecting livestock populations from devastating diseases that require statewide coordination. AHB investigates known or suspected cases of specified diseases, conducts animal disease surveillance and traceability programs, and prepares and executes emergency response planning. Examples of disease surveillance programs include tuberculosis, brucellosis, bovine spongiform encephalopathy (mad cow disease), and avian diseases. AHB also permits and monitors over 2 million animals entering California annually.

Proposed Law:

This bill would extend the sunset date for five years, to January 1, 2022, for CDFA to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit to others beyond the payer.

Related Legislation:

AB 120 (Committee on Budget), Chapter 133, Statutes of 2011. The budget trailer bill, among other provisions, authorizes CDFA, until January 1, 2017, to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer. The fee may not exceed $500 for each license, permit, registration, product, or service.

Staff Comments:

CDFA’s General Fund budget was reduced by roughly $30 million, or one-third, in 2011-12. CDFA was directed to convene meetings with agricultural stakeholders to find solutions to limit the need for state resources. Toward that end, a budget trailer bill (AB 120, 2011) authorized CDFA to seek reimbursement for services where the service only benefits the payee and not the public in general.

Under current law, CDFA’s fee authority would sunset on January 1, 2017. The bill would extend CDFA’s fee authority for five years to recover the reasonable costs associated with animal health services that do not provide a “public good.” For example, in some remote areas of the State, there are no private veterinarians certified by CDFA to do specific regulated work, such as test cattle for tuberculosis or administer a vaccine for brucellosis. In these instances, the only veterinary service available in the area is a CDFA field veterinarian. These cattle are not suspected of contracting these diseases and these services are not related to an outbreak or emergency response. This bill would allow CDFA to continue to seek reimbursement to cover the costs of these services.

Extending the sunset date of the existing statute would have no fiscal impact to CDFA. The department has never exercised this authority and as a result, has never collected revenue since its inception.

-- END --

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 1270 (Galgiani) - Diseased animals and poultry: regulation: fee schedule

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

SB 1270 would extend the sunset date from January 1, 2017 to January 1, 2022 for the California Department of Food and Agriculture (CDFA) to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer.

Fiscal Impact:

CDFA notes that it has yet to ever exercise this fee authority. Consequently, no revenue has ever been collected. The bill would not impact CDFA’s administrative costs.

Background:

CDFA’s Animal Health Branch (AHB) focuses on protecting livestock populations from devastating diseases that require statewide coordination. AHB investigates known or suspected cases of specified diseases, conducts animal disease surveillance and traceability programs, and prepares and executes emergency response planning. Examples of disease surveillance programs include tuberculosis, brucellosis, bovine spongiform encephalopathy (mad cow disease), and avian diseases. AHB also permits and monitors over 2 million animals entering California annually.

Proposed Law:

This bill would extend the sunset date for five years, to January 1, 2022, for CDFA to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit to others beyond the payer.

Related Legislation:

AB 120 (Committee on Budget), Chapter 133, Statutes of 2011. The budget trailer bill, among other provisions, authorizes CDFA, until January 1, 2017, to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer. The fee may not exceed $500 for each license, permit, registration, product, or service.

Staff Comments:

CDFA’s General Fund budget was reduced by roughly $30 million, or one-third, in 2011-12. CDFA was directed to convene meetings with agricultural stakeholders to find solutions to limit the need for state resources. Toward that end, a budget trailer bill (AB 120, 2011) authorized CDFA to seek reimbursement for services where the service only benefits the payee and not the public in general.

Under current law, CDFA’s fee authority would sunset on January 1, 2017. The bill would extend CDFA’s fee authority for five years to recover the reasonable costs associated with animal health services that do not provide a “public good.” For example, in some remote areas of the State, there are no private veterinarians certified by CDFA to do specific regulated work, such as test cattle for tuberculosis or administer a vaccine for brucellosis. In these instances, the only veterinary service available in the area is a CDFA field veterinarian. These cattle are not suspected of contracting these diseases and these services are not related to an outbreak or emergency response. This bill would allow CDFA to continue to seek reimbursement to cover the costs of these services.

Extending the sunset date of the existing statute would have no fiscal impact to CDFA. The department has never exercised this authority and as a result, has never collected revenue since its inception.

-- END --

SENATE COMMITTEE ON AGRICULTURE

Senator Cathleen Galgiani, Chair

2015 - 2016 Regular

Bill No: SB 1270 Hearing Date: 4/19/16

Subject: Diseased animals and poultry: regulation: fee schedule

SUMMARY

:

This bill would authorize the California Department of Food and Agriculture (CDFA) to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer.

BACKGROUND AND EXISTING LAW

:

The Animal Health Branch (AHB) of CDFA focuses on protecting livestock populations from devastating diseases that cannot be contained on the individual level and which require statewide coordination. The AHB investigates known or suspected cases of specified diseases, conducts animal disease surveillance and traceability programs, and prepares and executes emergency response planning. Examples of disease surveillance programs include tuberculosis, brucellosis, bovine spongiform encephalopathy (BSE or mad cow disease), and avian diseases. According to CDFA, the AHB also permits and monitors over 2 million animals entering California every year.

Existing law:

1. Requires CDFA to investigate any contagious, infectious, or transmissible disease affecting domestic animals in California.
2. Requires the state veterinarian to make regulations to prevent bovine tuberculosis from entering and spreading within California.
3. Authorizes CDFA to adopt regulations to control or eradicate cattle diseases by requiring permits, limiting intra or interstate movement of cattle, utilizing diagnostic tests and vaccines, and mandating reporting of suspected or confirmed diseases.
4. Requires CDFA to periodically publish a list of reportable conditions that pose a threat to public health, animal health, the environment, or the food supply.
5. Authorizes CDFA to establish a fee schedule to cover reasonable costs associated with animal health services that provide a specific benefit or service directly to the payer and the benefit or service is not provided to those not charged.
6. Limits fees to a maximum $500 per license, permit, registration, product, or service.

PROPOSED LAW

:

This bill:

Extends the sunset date from January 1, 2017 to January 1, 2022, for CDFA to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit to others beyond the payer.

ARGUMENTS IN SUPPORT:

According to the author, “SB 1270 would allow CDFA the flexibility to charge a fee-for-service to recover the reasonable costs associated with animal health services that do not provide a “public good.” By doing so, this bill would improve CDFA’s fiscal responsibility and use of General Funds and department staff. For example, in some remote areas there are no private veterinarians certified by CDFA to do specific regulated work, such as test cattle for tuberculosis or administer a vaccine for brucellosis. In these rare instances, the only veterinary service available in the area is a CDFA field veterinarian. These cattle are not suspected of contracting these diseases and these services are not related to an outbreak or emergency response. Therefore, CDFA is justified to seek reimbursement to cover the costs of these services that serve a marketing purpose and not a general public health benefit. Currently, there is no fee schedule established to determine cost-recovery of these services, and SB 1270 would allow CDFA to establish this fee schedule until January 1, 2022.”

COMMENTS

:

2011 Budget. CDFA’s General Fund allocation was cut by roughly $30 million, or one-third, during the 2011-2012 state budget reductions. The secretary was directed to convene meetings with agricultural stakeholders to find solutions to limit the need for state resources and improve fiscal responsibility.

Budget trailer bill. AB 120 of 2011 authorized CDFA to seek reimbursement for services where the service only benefits the payee and not the public in general. For example, in some instances a private-practice veterinarian would provide the service for a fee; however, only a CDFA staff veterinarian is available. In other instances, the service is required for personal or business matters and is not related to a suspected animal health disease outbreak. In these instances, CDFA would like to recover the costs for these services.

Sunset. CDFA was granted the authority to establish the fee schedule in 2012. The final schedule is anticipated to be released later this year.

RELATED LEGISLATION

:

AB 120 (Budget) Chapter 133, Statutes of 2011. Among other provisions, authorizes CDFA, until January 1, 2017, to establish a fee schedule to recover the reasonable costs associated with animal health services that do not provide a benefit beyond the payer. The fee may not exceed $500 for each license, permit, registration, product, or service.

SUPPORT

:

Association of California Egg Farmers (Co-sponsor)

California Grain and Feed Association (Co-sponsor)

OPPOSITION

:

None received

-- END --