(1)Existing law requires cattle to be inspected before being moved or transported under certain circumstances, including before cattle are moved out of the state. Existing law provides that inspection of cattle consists of the examination of the cattle for all brands and marks, and, in the case of unbranded cattle, for natural marks, sex, and breed, and includes the issuance of a certificate of inspection. Existing law authorizes the Secretary of Food and Agriculture to impose a prescribed service charge for each site at which an inspection is performed. Existing law also establishes various inspection fees per head of cattle to supplement this site-based charge, generally of $1.50 per animal, with certain exceptions.

This bill would increase various inspection fees per head of cattle to $1.60, with certain exceptions, as specified.

(2)Existing law authorizes any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.70 per head before accepting delivery of any cattle from that market, to have a reinspection of the cattle.

This bill would increase that fee to $0.80 per head of cattle.

(3)Existing law requires that the inspection of carcasses with the hide on and of hides to be made in the same manner as the inspection of cattle, as specified. Under existing law, all brand inspection fees for hides or carcasses are due and payable at the time of the inspection. Existing law requires a brand inspection fee to be paid at the point of inspection in the amount of $2 for each carcass or hide that is inspected and $2 for each carcass or hide inspected originating in those counties or geographical areas where a point-of-origin inspection is maintained.

This bill would increase these fees to $2.10 for each carcass or hide that is inspected.

(4)Existing law requires all of the above-described fees to be deposited into the Department of Food and Agriculture Fund, which is continuously appropriated, as prescribed.

By increasing the amount of existing fees, the revenue from which is continuously appropriated, the bill would make an appropriation.

(1)Existing law requires cattle to be inspected before being moved or transported under certain circumstances, including before cattle are moved out of the state. Existing law provides that inspection of cattle consists of the examination of the cattle for all brands and marks, and, in the case of unbranded cattle, for natural marks, sex, and breed, and includes the issuance of a certificate of inspection. Existing law authorizes the Secretary of Food and Agriculture to impose a prescribed service charge for each site at which an inspection is performed. Existing law also establishes various inspection fees per head of cattle to supplement this site-based charge, generally of $1.50 per animal, with certain exceptions.

This bill would increase various inspection fees per head of cattle to $1.60, with certain exceptions, as specified.

(2)Existing law authorizes any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.70 per head before accepting delivery of any cattle from that market, to have a reinspection of the cattle.

This bill would increase that fee to $0.80 per head of cattle.

(3)Existing law requires that the inspection of carcasses with the hide on and of hides to be made in the same manner as the inspection of cattle, as specified. Under existing law, all brand inspection fees for hides or carcasses are due and payable at the time of the inspection. Existing law requires a brand inspection fee to be paid at the point of inspection in the amount of $2 for each carcass or hide that is inspected and $2 for each carcass or hide inspected originating in those counties or geographical areas where a point-of-origin inspection is maintained.

This bill would increase these fees to $2.10 for each carcass or hide that is inspected.

(4)Existing law requires all of the above-described fees to be deposited into the Department of Food and Agriculture Fund, which is continuously appropriated, as prescribed.

By increasing the amount of existing fees, the revenue from which is continuously appropriated, the bill would make an appropriation.

(1)Existing law requires cattle to be inspected before being moved or transported under certain circumstances, including before cattle are moved out of the state. Existing law provides that inspection of cattle consists of the examination of the cattle for all brands and marks, and, in the case of unbranded cattle, for natural marks, sex, and breed, and includes the issuance of a certificate of inspection. Existing law authorizes the Secretary of Food and Agriculture to impose a prescribed service charge for each site at which an inspection is performed. Existing law also establishes various inspection fees per head of cattle to supplement this site-based charge, generally of $1.50 per animal, with certain exceptions.

This bill would increase various inspection fees per head of cattle to $1.60, with certain exceptions, as specified.

(2)Existing law authorizes any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.70 per head before accepting delivery of any cattle from that market, to have a reinspection of the cattle.

This bill would increase that fee to $0.80 per head of cattle.

(3)Existing law requires that the inspection of carcasses with the hide on and of hides to be made in the same manner as the inspection of cattle, as specified. Under existing law, all brand inspection fees for hides or carcasses are due and payable at the time of the inspection. Existing law generally requires a brand inspection fee to be paid at the point of inspection in the amount of $2 for each carcass or hide that is inspected and $2 for each carcass or hide inspected originating in those counties or geographical areas where a point-of-origin inspection is maintained.

This bill would increase these fees to $2.10 for each carcass or hide that is inspected.

(4)Existing law requires all of the above-described fees to be deposited into the Department of Food and Agriculture Fund, which is continuously appropriated, as prescribed.

By increasing the amount of existing fees, the revenue from which is continuously appropriated, the bill would make an appropriation.

 THIRD READING  

Bill No: AB 2436

Author: Alanis (R)

Introduced: 2/13/24

Vote: 21

SENATE AGRICULTURE COMMITTEE: 4-0, 7/2/24

AYES: Hurtado, Alvarado-Gil, Cortese, Padilla

NO VOTE RECORDED: Grove

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 71-0, 5/22/24 - See last page for vote

SUBJECT: Cattle: inspections: fees

SOURCE: Author

DIGEST:

This bill (1) increases various cattle inspection fees per head of cattle from $1.50 to $1.60, with certain exceptions, as specified; (2) increase re-inspection fee of $0.70 per head cattle to $0.80 per head of cattle; and (3) increases the inspection of carcasses with the hide on and of hide fees from $2 to $2.10 for each carcass or hide that is inspected.

ANALYSIS:

Existing law:

1. Establishes the Bureau of Livestock Identification (BLI): The BLI is the State's brand registration and inspection program protecting cattle owners in California against loss of animals by theft, straying, or misappropriation. The BLI is financed, in its entirety, through brand registration and inspection fees (https://www.cdfa.ca.gov/ahfss/Livestock_ID/About_Us.html).
2. Requires cattle to be inspected before being moved or transported under certain circumstances, including before cattle are moved out of the state. (Food and Agricultural Code Section 21051)
3. Authorizes the Secretary of Food and Agriculture to impose a prescribed service charge for each site at which an inspection is performed. (Food and Agricultural Code Section 21051.3)
4. Establishes various inspection fees per head of cattle to supplement this site-based charge, generally of $1.50 per animal, with certain exceptions. (Food and Agricultural Code Section 21283)
5. Authorizes any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.70 per head before accepting delivery of any cattle from that market, to have a re-inspection of the cattle. (Food and Agricultural Code Section 21290.5)
6. Requires, generally, a brand inspection fee to be paid at the point of inspection in the amount of $2 for each carcass or hide that is inspected and $2 for each carcass or hide inspected originating in those counties or geographical areas where a point-of-origin inspection is maintained. (Food and Agricultural Code Section 21563.5)

This bill:

1. Increases various inspection fees per head of cattle to $1.60, with certain exceptions.
2. Increases the fee any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.80 per head before accepting delivery of any cattle from that market, to have a re-inspection of the cattle.

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

SUPPORT: (Verified 8/5/24)

California Cattlemen's Association (source)
California Farm Bureau Federation
Western United Dairies

OPPOSITION: (Verified 8/5/24)

None received

ARGUMENTS IN SUPPORT: According to the author:

“The Bureau of Livestock Identification, funded entirely by brand registration fees and inspection fees from cattle producers, uniformly inspects all cattle at change of ownership or movement out of state. It aims to prevent and prosecute all livestock theft and misappropriation. These inspections improve efficiency, animal welfare, and productivity, protecting ranchers who are most vulnerable to crimes like cattle theft and likely to suffer significant economic harm from such theft. However, as ranchers face increased costs, the Bureau finds it more challenging to fulfill its responsibilities. Allowing the industry to raise additional fees on itself will enable the Bureau to continue its important work.”

California Cattleman’s Association writes as a sponsor of this bill stating the BLI is funded solely by brand registration fees and cattle, hide, and carcass inspection fees paid by cattle ranchers and dairy producers. They continue to say cattle owners are willing to bear this increased cost in recognition of the vital services the BLI performs. Finally, their letter clarifies this bill does not increase fees paid by beef and dairy producers.

ASSEMBLY FLOOR: 71-0, 5/22/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas, Ta

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

8/6/24 16:10:54

**** END ****

SENATE COMMITTEE ON AGRICULTURE

Senator Melissa Hurtado, Chair

2023 - 2024 Regular

Bill No: AB 2436 Hearing Date: 7/2/24

Subject: Cattle: inspections: fees

SUMMARY

:

This bill would increase various cattle inspection fees per head of cattle from $1.50 to $1.60, with certain exceptions, as specified. This bill would increase re-inspection fee of $0.70 per head cattle to $0.80 per head of cattle. This bill would increase the inspection of carcasses with the hide on and of hide fees from $2 to $2.10 for each carcass or hide that is inspected.

BACKGROUND AND EXISTING LAW

:

1. Establishes the Bureau of Livestock Identification (BLI): The BLI is the State's brand registration and inspection program protecting cattle owners in California against loss of animals by theft, straying, or misappropriation. The BLI is financed, in its entirety, through brand registration and inspection fees (https://www.cdfa.ca.gov/ahfss/Livestock_ID/About_Us.html).
2. Requires cattle to be inspected before being moved or transported under certain circumstances, including before cattle are moved out of the state (Food and Agricultural Code Section 21051).
3. Authorizes the Secretary of Food and Agriculture to impose a prescribed service charge for each site at which an inspection is performed (Food and Agricultural Code Section 21051.3).
   
4. Establishes various inspection fees per head of cattle to supplement this site-based charge, generally of $1.50 per animal, with certain exceptions (Food and Agricultural Code Section 21283).
5. Authorizes any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.70 per head before accepting delivery of any cattle from that market, to have a re-inspection of the cattle (Food and Agricultural Code Section 21290.5).
   
6. Existing law generally requires a brand inspection fee to be paid at the point of inspection in the amount of $2 for each carcass or hide that is inspected and $2 for each carcass or hide inspected originating in those counties or geographical areas where a point-of-origin inspection is maintained (Food and Agricultural Code Section 21563.5).

PROPOSED LAW

:

This bill:

1. Increases various inspection fees per head of cattle to $1.60, with certain exceptions.
2. Increases the fee any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.80 per head before accepting delivery of any cattle from that market, to have a re-inspection of the cattle.

ARGUMENTS IN SUPPORT:

According to the author:

“The Bureau of Livestock Identification, funded entirely by brand registration fees and inspection fees from cattle producers, uniformly inspects all cattle at change of ownership or movement out of state. It aims to prevent and prosecute all livestock theft and misappropriation. These inspections improve efficiency, animal welfare, and productivity, protecting ranchers who are most vulnerable to crimes like cattle theft and likely to suffer significant economic harm from such theft. However, as ranchers face increased costs, the Bureau finds it more challenging to fulfill its responsibilities. Allowing the industry to raise additional fees on itself will enable the Bureau to continue its important work.”

California Cattleman’s Association writes as a sponsor of the bill stating the BLI is funded solely by brand registration fees and cattle, hide, and carcass inspection fees paid by cattle ranchers and dairy producers. They continue to say cattle owners are willing to bear this increased cost in recognition of the vital services the BLI performs. Finally, their letter clarifies the bill does not increase fees paid by beef and dairy producers.

ARGUMENTS IN OPPOSITION:

None received.

COMMENTS

:

This is an industry-supported fee increase. The BLI is funded from these fees. The last time the fees were increased was 2019.

RELATED LEGISLATION

:

AB 1801 (Chapter 324, Statutes of 2019): Among other things, increased various inspection fees per head of cattle to $1.50.

PRIOR ACTIONS

:

SUPPORT

:

California Cattlemen's Association (Sponsor)

California Farm Bureau Federation

Western United Dairies

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2436

Author:(Alanis)

As Introduced Ver:February 13, 2024

Majority vote

SUMMARY

This bill increases various cattle inspection fees paid to the California Department of Food and Agriculture (CDFA.)

Major Provisions

This bill increases various cattle inspection fees per head of cattle from $1.50 to $1.60, with certain exceptions, as specified; increases the cattle re-inspection fee from $0.70 to $0.80 per head of cattle; and increases carcass and hide inspection fees from $2 to $2.10 for each carcass or hide that is inspected.

COMMENTS

CDFA's Bureau of Livestock Identification (BLI) is financed, in its entirety, through brand registration and cattle, hide, and carcass inspection fees paid by cattle owners. This bill is sponsored by the California Cattlemen's Association, California Farm Bureau, and Western United Dairies, who collectively represent the state's cattle producers served by BLI. According to the sponsors, BLI's operating expenses have increased in recent years. To ensure the bureau remains revenue-neutral and does not operate at a deficit, fees – which are BLI's sole revenue source – must increase commensurate with costs. Accordingly, BLI's advisory board – which consists of representatives from the beef, dairy, feeder, and marketing sectors – voted unanimously in November 2023 to increase fees beyond the statutory level. Current law permits the secretary of CDFA to increase fees up to 20% above the statutory fee upon the recommendation of the advisory board. Current law also allows the secretary of CDFA to lower fees upon a finding by the advisory board that BLI's costs can be maintained with a lower fee. In 2021, the secretary of CDFA lowered brand inspection fees to offset an operating surplus at BLI.

According to the Author

This bill, which is sponsored by the California Cattlemen's Association, responds to the financial challenges confronting California Department of Food and Agriculture's Bureau of Livestock Identification, which relies on fees from cattle producers for funding. With rising operating expenses, it's imperative to adjust fees to ensure the Bureau can maintain crucial livestock inspection services without financial strain.

Arguments in Support

The sponsors note this bill does not increase fees paid by beef and dairy producers; rather, the legislation codifies the current fee schedule approved by BLI's advisory board, which became effective on January 1, 2024.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations, CDFA estimates approximately $334,000 in additional annual revenue from the higher fees paid by cattle owners (Department of Food and Agriculture Fund). CDFA does not anticipate additional administrative costs to the department as a result of this bill. As noted below, CDFA's Bureau of Livestock Identification (BLI) is financed, in its entirety, through brand registration and cattle, hide, and carcass inspection fees paid by cattle owners.

VOTES

ASM AGRICULTURE: 9-0-1

YES: Soria, Alanis, Aguiar-Curry, Connolly, Irwin, Jones-Sawyer, Sanchez, Villapudua, Wood

ABS, ABST OR NV: Ta

ASM APPROPRIATIONS: 14-0-1

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Villapudua

ABS, ABST OR NV: Ta

UPDATED

VERSION: February 13, 2024

CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0003008

Date of Hearing: April 24, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2436

Author:(Alanis) – As Introduced Ver:February 13, 2024

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

SUMMARY:

This bill increases various cattle inspection fees paid to the California Department of Food and Agriculture (CDFA.)

Specifically, this bill increases various cattle inspection fees per head of cattle from $1.50 to $1.60, with certain exceptions, as specified; increases the cattle re-inspection fee from $0.70 to $0.80 per head of cattle; and increases carcass and hide inspection fees from $2 to $2.10 for each carcass or hide that is inspected.

FISCAL EFFECT:

CDFA estimates approximately $334,000 in additional annual revenue from the higher fees paid by cattle owners (Department of Food and Agriculture Fund). CDFA does not anticipate additional administrative costs to the department as a result of this bill. As noted below, CDFA’s Bureau of Livestock Identification (BLI) is financed, in its entirety, through brand registration and cattle, hide, and carcass inspection fees paid by cattle owners.

COMMENTS:

1) Purpose. According to the author:

AB 2436, which is sponsored by the California Cattlemen’s Association, responds to the financial challenges confronting California Department of Food and Agriculture’s Bureau of Livestock Identification, which relies on fees from cattle producers for funding. With rising operating expenses, it's imperative to adjust fees to ensure the Bureau can maintain crucial livestock inspection services without financial strain.

2) Background. The rural and geographically vast nature of livestock production in the state makes ranchers particularly vulnerable to theft, including livestock theft. In addition, the high input costs of ranching make the theft or other loss of valuable cattle particularly harmful for beginning and socially disadvantaged ranchers. CDFA’s BLI is the state's brand registration and inspection program protecting cattle owners in California against loss of animals by theft, straying, or misappropriation. BLI is responsible for, among other things, inspection of cattle for lawful possession prior to movement, sale, or slaughter and assisting local law enforcement with investigations and prosecutions involving cattle theft.

BLI is financed, in its entirety, through brand registration and cattle, hide, and carcass inspection fees paid by cattle owners. This bill is sponsored by the California Cattlemen’s Association, California Farm Bureau, and Western United Dairies, who collectively represent the state’s cattle producers served by BLI. According to the sponsors, BLI’s operating expenses have increased in recent years. To ensure the bureau remains revenue-neutral and does not operate at a deficit, fees – which are BLI’s sole revenue source – must increase commensurate with costs. Accordingly, BLI’s advisory board – which consists of representatives from the beef, dairy, feeder, and marketing sectors – voted unanimously in November 2023 to increase fees beyond the statutory level. Current law permits the secretary of CDFA to increase fees up to 20% above the statutory fee upon the recommendation of the advisory board. Current law also allows the secretary of CDFA to lower fees upon a finding by the advisory board that BLI’s costs can be maintained with a lower fee. In 2021, the secretary of CDFA lowered brand inspection fees to offset an operating surplus at BLI.

The sponsors note this bill does not increase fees paid by beef and dairy producers; rather, the legislation codifies the current fee schedule approved by BLI’s advisory board, which became effective on January 1, 2024.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 10, 2024

ASSEMBLY COMMITTEE ON AGRICULTURE

Esmeralda Soria, Chair

ABPCA Bill Id:AB 2436

Author:(Alanis) – As Introduced Ver:February 13, 2024

SUBJECT: Cattle: inspections: fees

SUMMARY: This bill would increase various cattle inspection fees per head of cattle from $1.50 to $1.60, with certain exceptions, as specified. This bill would increase reinspection fee of $0.70 per head cattle to $0.80 per head of cattle. This bill would increase the inspection of carcasses with the hide on and of hide fees from $2 to $2.10 for each carcass or hide that is inspected.

EXISTING LAW:

1. Requires cattle to be inspected before being moved or transported under certain circumstances, including before cattle are moved out of the state. (Food and Agriculture code (FAC) 21051)
   
2. Provides that inspection of cattle consists of the examination of the cattle for all brands and marks, and, in the case of unbranded cattle, for natural marks, sex, and breed, and includes the issuance of a certificate of inspection. (FAC 21051)|
   
3. Authorizes the Secretary of Food and Agriculture to impose a prescribed service charge for each site at which an inspection is performed. (FAC 21051.3 )
   
4. Establishes various inspection fees per head of cattle to supplement this site-based charge, generally of $1.50 per animal, with certain exceptions. (FAC 21283)
   
5. Authorizes any person who receives cattle from any cattle sale market, upon request and payment of a fee of $0.70 per head before accepting delivery of any cattle from that market, to have a reinspection of the cattle. (FAC 21290.5)
   
6. Existing law generally requires a brand inspection fee to be paid at the point of inspection in the amount of $2 for each carcass or hide that is inspected and $2 for each carcass or hide inspected originating in those counties or geographical areas where a point-of-origin inspection is maintained. (FAC 21563.5)

FISCAL EFFECT: Unknown.

COMMENTS: The Bureau of Livestock Identification (BLI) is the State's brand registration and inspection program protecting cattle owners in California against loss of animals by theft, straying, or misappropriation. BLI applies the Food and Agricultural Code (FAC) to protect and regulate the livestock industry. BLI has four offices located throughout California. This bureau is financed, in its entirety, through brand registration and inspection fees paid by cattle owners.

In California cattle inspections are required at the following times:

1. Whenever cattle are sold or ownership is transferred.
2. Prior to transportation out of any designated modified point-of-origin inspection area, for purposes other than sale or slaughter and no change of ownership is involved.
3. Exception to above: If cattle are moved to a destination point (salesyard, slaughterhouse, or registered feedlot), they will be inspected at the destination point instead of point of origin.
4. Prior to transportation out of state.
5. Upon entry into a registered feedlot.
6. Prior to slaughter.
7. Prior to release or sale from a public saleyard or public or private cattle sales market.
8. Prior to transportation or movement from premises designated as quarantine, restricted, or isolated areas pursuant to Section 9565.

According to the author, Inflationary pressures, increased wages for brand inspectors, the transition to an electric vehicle fleet in furtherance of the state’s climate goals, and other economic pressures have increased the BLI’s operating expenses in recent years. As inspection fees are the Bureau’s sole source of revenue, fees will need to increase commensurate with costs for BLI to continue providing vital services to California’s livestock producers. This bill is supported by the very producers it would impact: In November of 2023, the Bureau’s Advisory Board unanimously voted in favor of increasing the statutory fees.

The rural and geographically-vast nature of livestock production makes ranchers particularly vulnerable to theft, including livestock theft. Additionally, the high input costs of ranching make the theft or other loss of valuable cattle particularly harmful for beginning and socially disadvantaged ranchers. BLI is charged with uniform inspection of all cattle at change of ownership or movement out of state and seeks to prevent and prosecute all livestock theft and misappropriation. These inspections ensure improved efficiency, animal welfare, and productivity. BLI’s services insulate from harm those ranchers who are – including by virtue of their geographic, economic, or social status and conditions – most vulnerable to crimes such as cattle theft and most likely to suffer significant economic harm from such theft.

The bill does not increase the fee, but ups the amount the fee can be increased. This will provide BLI the needed flexibility to remain revenue neutral while safeguarding cattle producers against theft and misappropriation.

REGISTERED SUPPORT / OPPOSITION:

Support

California Cattlemen's Association

California Farm Bureau Federation

Western United Dairies

Opposition

None on file.

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