CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 657

Author:(Eggman)

As Amended Ver:June 10, 2019

2/3 vote

SUMMARY:

This extends the sunset date for commercial feed licensure and inspection tonnage tax from January 1, 2020 to January 1, 2025. The bill also increases the maximum rate of the tonnage tax from $0.15 to $0.25 per ton of commercial feed sold. The funding is used for education and research regarding the safe handling of commercial feed.

The Senate Amendments:

Increase the tonnage tax rate from $0.15 to $0.25 per ton of commercial feed sold.

COMMENTS:

The Feed Inspection Program (FIP) ensures a clean and wholesome supply of milk, meat and eggs as well as providing assurance that the product received by the consumer is of the quality and quantity purported by the manufacturer. Inspectors and investigators located throughout the state conduct routine sampling and inspections; conduct quality assurance inspections of the manufacturing facilities; respond to consumer complaints; and, enforce the laws and regulations that govern the manufacturing and distribution of livestock feed.

As part of FIP, the Safe Animal Feed Education Program (SAFE), promotes feed safety and security through outreach and education, and performs Voluntary Feed Quality Assurance Audits. FIP is funded through the collection of a licensing fee and an inspection fee based upon tonnage sold.

According to the Author:

Currently, the California Department of Food and Agriculture's (CDFA) authority will expire January 1, 2020. This proposal extends the sunset for an additional five years. In addition, this bill increases the tonnage tax from $0.15 to $0.25. The increase is needed to allow CDFA the flexibility to maintain a minimum operating reserve for FIP and SAFE.

Arguments in Support:

California's poultry, livestock and dairy industries utilize vast amounts of diverse commodities and feed additives. Animal feed must be of high quality to ensure adequate health and a wholesome supply of meat, milk and eggs. The amount of animal feed commodities used in California has increased substantially over the past decade, making California the largest manufacturer of animal feed in the United States. In addition, the number of livestock production operations and dairies that mix their own feed on-farm has risen significantly. The SAFE Program provides outreach and education materials to promote good manufacturing practices for on-farm feed mixing.

Arguments in Opposition:

None of file.

FISCAL COMMENTS:

According to the Senate Appropriations Committee, this bill has minor and absorbable cost. Additionally, the bill would result in an unknown share of tonnage tax revenues, most likely in the hundreds of thousands of dollars annually, dedicated for education and research programs on commercial feed safety. The specific amounts would depend on decisions by the Feed Inspection Advisory Board.

VOTES:

ASM AGRICULTURE: 10-0-1

YES: Eggman, Mathis, Aguiar-Curry, Bigelow, Flora, Irwin, Jones-Sawyer, Levine, Robert Rivas, Salas

ABS, ABST OR NV: Gray

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

ASSEMBLY FLOOR: 78-0-2

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Obernolte, Patterson, Petrie‑Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

ABS, ABST OR NV: Cooley, Eduardo Garcia

SENATE FLOOR: 36-0-4

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, McGuire, Mitchell, Monning, Moorlach, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

ABS, ABST OR NV: Chang, Leyva, Morrell, Stone

UPDATED:

VERSION: June 10, 2019

CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0001294

 THIRD READING  

Bill No: AB 657

Author: Eggman (D)

Amended: 6/10/19 in Senate

Vote: 27

SENATE AGRICULTURE COMMITTEE: 5-0, 7/2/19

AYES: Galgiani, Wilk, Caballero, Dahle, Glazer

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/12/19

AYES: Portantino, Bates, Bradford, Durazo, Hill, Jones, Wieckowski

ASSEMBLY FLOOR: 78-0, 5/23/19 - See last page for vote

SUBJECT: Agriculture: commercial feed

SOURCE: Author

DIGEST:

This bill increases the maximum rate of the inspection tonnage tax from $0.15 to $0.25 per ton of commercial feed sold. This bill extends the secretary of the California Department of Food and Agriculture’s (CDFA) authority to designate a specified amount of tonnage taxes collected to provide funding for research and education from January 1, 2020, to January 1, 2025. This bill extends the date on which the new license fee requirement of $100 for each location will take effect from January 1, 2020, to January 1, 2025.

ANALYSIS:

Existing law:

1. Establishes the Feed Inspection Program which ensures a clean and wholesome supply of milk, meat, and eggs by providing clean and wholesome fodder for livestock and poultry, as well as providing assurance that the product received by the consumer is of the quality and quantity purported by the manufacturer.
2. Establishes the Safe Animal Feed Education Program (SAFE) which ensures a safe and wholesome supply of commercial feed. Under current law, the authority for the Feed Inspection Advisory Board to allocate a certain share of tonnage tax revenue to the SAFE program will expire on January 1, 2020.

This bill:

1. Increases the maximum rate of tonnage tax from $0.15 to $0.25 per ton of commercial feed sold.
2. Extends the secretary’s authority to designate a specified amount of tonnage tax collected to provide funding for research and education from January 1, 2020, to January 1, 2025.
3. Establishes, beginning January 1, 2020, the license fee required for each location where commercial feed is manufactured, distributed, sold, or stored for later sale to be $100.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

CDFA indicates that any costs resulting from the bill will be minor and absorbable. Additionally, the bill will result in an unknown share of tonnage tax revenues, most likely in the hundreds of thousands of dollars annually, dedicated for education and research programs on commercial feed safety. The specific amounts will depend on decisions by the Feed Inspection Advisory Board.

SUPPORT: (Verified 8/13/19)

California Grain & Feed Association

OPPOSITION: (Verified 8/13/19)

None received

ARGUMENTS IN SUPPORT: According to a letter from the California Grain & Feed Association, “…AB 657 will extend the sunset date for the authority of the Secretary of the California Department of Food and Agriculture (Department) to designate 15%, or $200,000, whichever amount is greater, of the revenue from the inspection tonnage tax to be used for funding the SAFE education program for feed handlers and mills.”

“SAFE uses an approach that fosters voluntary compliance with the state laws and regulations to ensure the safe manufacture and use of commercial feed in a changing livestock feed market. This unique collaboration between SAFE and the feed industry benefits both the agricultural community and the consumer.”

ASSEMBLY FLOOR: 78-0, 5/23/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Cooley, Eduardo Garcia

Prepared by: Reichel Everhart / AGRI. / 916-651-1508

8/14/19 17:09:11

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

AB 657 (Eggman) - Agriculture: commercial feed

Bill Summary:

AB 657 would (1) increase the maximum rate of the inspection tonnage tax from $0.15 to $0.25 per ton of commercial feed sold, (2) extend the Secretary of the California Department of Food and Agriculture’s (CDFA’s) authority to designate a specified amount of tonnage taxes collected to provide funding for research and education from January 1, 2020, to January 1, 2025, and (3) extend the date on which the new license fee requirement of $100 for each location would take effect from January 1, 2020, to January 1, 2025.

Fiscal Impact:

CDFA indicates that any costs resulting from the bill would be minor and absorbable. Additionally, the bill would result in an unknown share of tonnage tax revenues, most likely in the hundreds of thousands of dollars annually, dedicated for education and research programs on commercial feed safety. The specific amounts would depend on decisions by the Feed Inspection Advisory Board.

Background:

The Feed Inspection Program within CDFA was established in 1972 and is responsible for enforcing laws and regulations pertinent to the manufacturing, distributing, and labeling of commercial livestock feed in California, while preventing adulterated feed from being consumed by livestock and poultry. Specifically, this program ensures food and feed safety and assures the consumer that the product is properly identified and is of the quality and quantity as stated by the manufacturer. The Feed Inspection Advisory Board, composed of eight members appointed by the Secretary, meets at least once a year to make recommendations to the Secretary on matters relating to inspection and enforcement, annual budget, inspection fees, and regulations. This program is funded by license fees and an inspection tonnage tax.

The Safe Animal Feed Education (SAFE) Program, as part of the Feed Inspection Program, was developed in collaboration with the feed industry and uses outreach, education, and a voluntary quality assurance program to ensure a safe and wholesome supply of commercial feed. On-farm education and organized workshops provide information on the proper use of medicated feeds, and voluntary audits review manufacturing practices, quality assurance protocols, process controls, ingredient storage, record keeping, product labeling, and compliance with all laws and regulations.

Current law requires that a license be obtained for each location where commercial feed is manufactured, distributed, sold, or stored. The license fee may range from a minimum of $100 to a maximum of $600, and revenues are used to fund the feed inspection program. The license fee is currently $500 per year, as determined by the secretary of CDFA upon recommendation of the Feed Inspection Advisory Board. CDFA’s authority to adjust this fee above $100 will be repealed January 1, 2020, unless a further statute extends this date.

Current law provides for the collection of an inspection tonnage tax on commercial feed sold in California. Revenues shall be used to carry out provisions regulating commercial feed, and 15 percent or $200,000, whichever is greater, may also be used to provide funding for research and education regarding the safe manufacture, distribution, and use of commercial feed. The inspection tonnage tax cannot be greater than $0.15 per ton of commercial feed sold. Currently, the rate is set at $0.10 per ton, as determined by the secretary of CDFA upon recommendation of the Feed Inspection Advisory Board. Provisions authorizing CDFA to use these funds for research and education are repealed January 1, 2020, unless a further statute extends this date.

Proposed Law:

This bill would (1) increase the maximum rate of tonnage tax from $0.15 to $0.25 per ton of commercial feed sold, (2) Extend CDFA’s authority to designate a specified amount of tonnage tax collected to provide funding for research and education from January 1, 2020, to January 1, 2025, and (3) establishes, beginning January 1, 2020, the license fee required for each location where commercial feed is manufactured, distributed, sold, or stored for later sale be $100.

Related Legislation:

The tonnage tax has been regularly extended. AB 1132 (Eggman, Chapter 622, Statutes of 2014), and AB 547 (Mendoza, Chapter 245, Statutes of 2009) both extended the sunset five years.

Staff Comments:

As noted above, under current law, the authority for the Board to allocate a certain share of tonnage tax revenue to the SAFE program will expire on January 1, 2020. Absent this bill, the SAFE program would lose a source of dedicated funding. If the current tax rate were increased to the maximum $0.25 rate as proposed, total revenues would increase by an additional $2.7 million annually.

Additionally, if the current license fee of $500 reverts to $100 per license in 2020, the annual reduction in revenue would be about $750,000.

-- END --

SENATE COMMITTEE ON AGRICULTURE

Senator Cathleen Galgiani, Chair

2019 - 2020 Regular

Bill No: AB 657 Hearing Date: 7/2/19

Subject: Agriculture: commercial feed

SUMMARY

:

This bill would increase the maximum rate of the inspection tonnage tax from $0.15 to $0.25 per ton of commercial feed sold. The bill will extend the secretary of the California Department of Food and Agriculture’s (CDFA) authority to designate a specified amount of tonnage taxes collected to provide funding for research and education from January 1, 2020, to January 1, 2025. This bill would extend the date on which the new license fee requirement of $100 for each location would take effect from January 1, 2020, to January 1, 2025.

BACKGROUND AND EXISTING LAW

:

1. Feed Inspection Program (FIP) : Created in 1972, the FIP’s purpose is to ensure a clean and wholesome supply of milk, meat, and eggs by providing clean and wholesome fodder for livestock and poultry, as well as providing assurance that the product received by the consumer is of the quality and quantity purported by the manufacturer.
2. Safe Animal Feed Education Program (SAFE): Under current law, the authority for the Feed Inspection Advisory Board to allocate a certain share of tonnage tax revenue to the SAFE program will expire on January 1, 2020. Without this bill, the SAFE program will lose a dedicated funding source. However, the board will still retain the authority to set an inspection tonnage tax of up to $0.15 per ton.

PROPOSED LAW

:

This bill:

1. Increases the maximum rate of tonnage tax from $0.15 to $0.25 per ton of commercial feed sold.
2. Extends the secretary’s authority to designate a specified amount of tonnage tax collected to provide funding for research and education from January 1, 2020, to January 1, 2025.
3. Establishes, beginning January 1, 2020, the license fee required for each location where commercial feed is manufactured, distributed, sold, or stored for later sale be $100.

ARGUMENTS IN SUPPORT:

According to a letter from the California Grain and Feed Association, the sponsors of this legislation, “…AB 657 will extend the sunset date for the authority of the Secretary of the California Department of Food and Agriculture (Department) to designate 15%, or $200,000, whichever amount is greater, of the revenue from the inspection tonnage tax to be used for funding the SAFE education program for feed handlers and mills.”

“Currently, the Secretary’s authority will expire January 1, 2020. This proposal extends the sunset for an additional 5 years. In addition, this bill increases the tonnage tax from 15 cents to 25 cents. The increase is needed to allow the Secretary the flexibility to maintain a minimum operating reserve for the Department’s Feed Inspection Program (FIP) and Safe Animal Feed Education Program (SAFE).”

“California’s poultry, livestock and dairy industries utilize vast amounts of diverse commodities and feed additives. Animal feed must be of high quality to ensure adequate health and a wholesome supply of meat, milk and eggs. The amount of animal feed commodities used in California has increased substantially over the past decade, making California the largest manufacturer of animal feed in the U.S. In addition, the number of livestock production operations and dairies that mix their own feed on-farm has risen significantly. The SAFE Program provides outreach and education materials to promote good manufacturing practice for on-farm feed mixing.”

“SAFE uses an approach that fosters voluntary compliance with the state laws and regulations to ensure the safe manufacture and use of commercial feed in a changing livestock feed market. This unique collaboration between SAFE and the feed industry benefits both the agricultural community and the consumer.”

ARGUMENTS IN OPPOSITION:

None received.

COMMENTS

:

Under current law, the authority for the board to allocate a certain share of tonnage tax revenue to the SAFE program will expire on January 1, 2020. Without this bill, the SAFE program will lose a dedicated funding source.

PRIOR ACTIONS

:

SUPPORT

:

California Grain & Feed Association (sponsor)

OPPOSITION

:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 657

Author:(Eggman)

As Introduced Ver:February 15, 2019

2/3 vote

SUMMARY:

This bill extends, from January 1, 2020, to January 1, 2025, the Feed Inspection Advisory Board's (Board) authority to allocate a specified amount of tonnage tax revenue for commercial feed safety research and education.

Major Provisions

Allows the Board to confine funding the Safe Animal Feed Education (SAFE) Program, which promotes feed safety through outreach and education.

COMMENTS:

The Feed Inspection Program (FIP) was created in 1972. Its purpose is to ensure a clean and wholesome supply of milk, meat and eggs by providing clean and wholesome fodder for livestock and poultry, as well as providing assurance that the product received by the consumer is of the quality and quantity purported by the manufacturer. Inspectors and investigators are located throughout the state to conduct routine sampling and inspections; conduct quality assurance inspections of the manufacturing facilities; respond to consumer complaints; and, enforce the laws and regulations that govern the manufacturing and distribution of animal feed.

As part of the FIP, the SAFE promotes feed safety and security through outreach and education, and performs Voluntary Feed Quality Assurance Audits. The FIP is funded through the collection of a licensing fee and an inspection tax based upon tonnage sold. Commercial feed licensing is for a one-year period, beginning July 1st and expiring June 30th of the following year. The current annual licensing fee is $300. The inspection tonnage tax is currently at eight cents ($0.08) per ton and is due on a quarterly basis.

The Board advises or makes recommendations to CDFA on matters relating to inspection and enforcement, annual budget, inspection fees, and regulations required to accomplish the purposes of the law. The Board is comprised of eight members who possess a commercial feed license and one public member; all are appointed by CDFA for three-year terms. The Board currently meets at least once a year.

According to the Author:

Under current law, the authority for the Board to allocate a certain share of tonnage tax revenue to the SAFE Program will expire on January 1, 2020. Without this bill, the SAFE Program will lose a dedicated funding source. However, the Board will still retain the authority to set an inspection tonnage tax of up to 15 cents per ton.

Arguments in Support:

Animal feed must be of high quality to ensure adequate health and a wholesome supply of meat, milk and eggs. The amount of animal feed commodities used in California has increased substantially over the past decade, making California the largest manufacturer of animal feed in the U.S. In addition, the number of livestock production operations and dairies that mix their own feed on-farm has risen significantly. The SAFE Program provides outreach and education materials to promote good manufacturing practice for on-farm feed mixing.

Arguments in Opposition:

None on file

FISCAL COMMENTS:

According to the Assembly Appropriations Committee, this bill has an unknown share of tonnage tax revenues, likely in the hundreds of thousands of dollars annually, dedicated for education and research programs on commercial feed safety. Actual amounts would depend on decisions by the Board

VOTES:

ASM AGRICULTURE: 10-0-1

YES: Eggman, Mathis, Aguiar-Curry, Bigelow, Flora, Irwin, Jones-Sawyer, Levine, Robert Rivas, Salas

ABS, ABST OR NV: Gray

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: February 15, 2019

CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0000509

Date of Hearing: April 10, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 657

Author:(Eggman) – As Introduced Ver:February 15, 2019

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

SUMMARY:

This bill extends, from January 1, 2020, to January 1, 2025, the Feed Inspection Advisory Board (Board)’s authority to allocate a specified amount of tonnage tax revenue for commercial feed safety research and education.

FISCAL EFFECT:

Unknown share of tonnage tax revenues – likely in the hundreds of thousands of dollars annually - dedicated for education and research programs on commercial feed safety. Actual amounts would depend on decisions by the Board.

COMMENTS:

1. Background. The Feed Inspection Program (FIP) was established to ensure the quality and safety of commercial feed. Inspecting feed ensures the health and safety of the animals and the food supply. FIP also includes the Safe Animal Feed Education (SAFE) Program, which promotes feed safety through outreach and education. The Board has the authority to set tonnage a tax rate of up to 15 cents per ton and to allocate the greater of 15% of these revenues or $200,000 to support the SAFE Program. The current tonnage tax is 8 cents per ton.
2. What expires when? Under current law, the authority for the Board to allocate a certain share of tonnage tax revenue to the SAFE Program will expire on January 1, 2020. Without AB 657, the SAFE Program will lose a dedicated funding source. However, the Board will still retain the authority to set an inspection tonnage tax of up to 15 cents per ton.
3. Recent legislation. The tonnage tax has been regularly extended. AB 1132 (Eggman), Statutes of 2014, Chapter 622, and AB 547 (Mendoza), Statutes of 2009, Chapter 245, both extended the sunset five years.

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

Date of Hearing: March 27, 2019

ASSEMBLY COMMITTEE ON AGRICULTURE

Susan Talamantes Eggman, Chair

ABPCA Bill Id:AB 657

Author:(Eggman) – As Introduced Ver:February 15, 2019

SUBJECT: Agriculture: commercial feed

SUMMARY: Extends the sunset date to January 1, 2025, for commercial feed operations license fees and the inspection tonnage taxes.

EXISTING LAW: Requires an annual licensure of a commercial feed operation, per site, ranging from a minimum of $100 to a maximum of $600, as determined by the Secretary of the California Department of Food and Agriculture (CDFA), based upon the recommendations of the Feed Inspection Advisory Board (Board). Requires fees to fund program reserves to a minimum of 25% of the program costs, then such fees shall be used to reduce the feed tonnage tax, based upon the recommendations of the Board. This requirement will sunset on January 1, 2020 and the license cost will revert to $100.

Existing statute authorizes a maximum tonnage tax on commercial feeds, except for whole grains and hays when unmixed, of fifteen cents ($0.15) per ton for any distributor of commercial feed to an in-state consumer-buyer. This includes feeds provided by a distributor to his or her own animals. This rate is established by CDFA, based upon recommendations of the Board. Based upon the Board recommendations, CDFA may designate 15% of tonnage taxes, or $200,000, whichever is greater, to be used for research and education regarding the safe manufacture, distribution and use of commercial feed. These funds may only be used for activities approved by the Board, with approval made prior to expenditure. This statute will sunset on January 1, 2020. After this date, the tonnage tax remains in effect but the use of 15% or $200,000, whichever is greater for research and education regarding the safe manufacturing, distribution and use of commercial feed, is deleted.

FISCAL EFFECT: Unknown

COMMENTS: The Feed Inspection Program (FIP) was created in 1972. Its purpose is to ensure a clean and wholesome supply of milk, meat and eggs by providing clean and wholesome fodder for livestock and poultry, as well as, providing assurance that the product received by the consumer is of the quality and quantity purported by the manufacturer. Inspectors and investigators are located throughout the state to conduct routine sampling and inspections; conduct quality assurance inspections of the manufacturing facilities; respond to consumer complaints; and, enforce the laws and regulations that govern the manufacturing and distribution of animal feed.

As part of the FIP, the Safe Animal Feed Education Program promotes feed safety and security through outreach and education, and performs Voluntary Feed Quality Assurance Audits. The FIP is funded through the collection of a licensing fee and an inspection tax based upon tonnage sold. Commercial feed licensing is for a one-year period, beginning July 1st and expiring June 30th of the following year. The current annual licensing fee is $300. The inspection tonnage tax is currently at eight cents ($0.08) per ton and is due on a quarterly basis.

The Board advises or makes recommendations to CDFA on matters relating to inspection and enforcement, annual budget, inspection fees, and regulations required to accomplish the purposes of the law. The Board is comprised of eight members who possess a commercial feed license and one public member; all are appointed by CDFA for three-year terms. The Board currently meets at least once a year.

The inspection tax has been considered "a tax", requiring a 2/3 vote for passage in both houses. In the past, previous to Proposition 26 of 2010, this legislation required a simple majority vote in both houses for passage.

Previous Legislation:

AB 1132 (Eggman), Statues of 2014, Chapter 622, extended the sunset date to January 1, 2020, for commercial feed operations license fees and the inspection tonnage taxes.

AB 547 (Mendoza), Statutes of 2009, Chapter 245, extended the sunset date to January 1, 2015, for commercial feed operations license fees and the inspection tonnage taxes.

AB 2958 (Agriculture), 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.

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.

REGISTERED SUPPORT / OPPOSITION:

Support

California Grain and Feed Association (Sponsor)

Opposition

None on file

Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084