BILL ANALYSIS Ó AB 2716 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON AGRICULTURE Bill Dodd, Chair AB 2716 (Dodd) - As Amended March 10, 2016 SUBJECT: Meat processing establishment, custom livestock slaughterhouse, and poultry plants: licensing and inspectors. SUMMARY: Extends for five years the sunsets of three licensing and inspection programs, including fees, dealing with livestock and poultry processing. Specifically, this bill: 1)Extends the Livestock Meat Inspector and Processing Inspector licenses and fees sunset from January 1, 2017 to January 1, 2022. 2)Extends the Licensed Meat Processing and Custom Livestock Slaughter Establishments licenses and fees sunset from January 1, 2017 to January 1, 2022. 3)Extends the Poultry and Rabbit processing plant application fees, renewal fees, meat inspector license fees, renewal, and penalty fees sunset from January 1, 2017 to January 1, 2022. EXISTING LAW: 1) Requires, until January 1, 2017, each livestock meat inspector and processing inspector, be licensed before operating a meat processing establishment or a custom livestock slaughterhouse and sets annual license renewal fees AB 2716 Page 2 for custom livestock slaughterhouses and meat processing establishments. Existing law, until January 1, 2017, also establishes application fees for initial and renewal of licenses for livestock meat inspectors and processing inspectors. Existing law imposes a penalty on applicants for renewal who fail to pay the license renewal fee by an expiration date of the meat processing establishment, custom livestock slaughterhouse, livestock meat inspector, or processing inspector, and provides cause for revocation of the license if the applicant fails to pay the renewal fee, plus the penalty, within 90 days of the license's expiration. 2) Existing law provides for the regulation, inspection, and licensing of meat processing and custom livestock slaughter establishments and for the regulation and licensing of poultry and livestock meat inspectors. Existing law, until January 1, 2017, specifies the license application fees for a new, previously unlicensed poultry plant and for a license application submitted upon change of ownership of an existing, previously licensed poultry plant. Existing law, until January 1, 2017, requires that an application for renewal of a license of a poultry plant, accompanied by a specified renewal fee, be made on or before the expiration of the license. 3) Existing law, until January 1, 2017, specifies the application fee for a poultry and rabbit processing plant and meat inspector license application and the renewal fee of that licensee. Existing law, until January 1, 2017, imposes a penalty of $25 on applicants for renewal who fail to pay the renewal fee by the expiration date of the license, and provides for revocation of the license if the applicant fails to pay the AB 2716 Page 3 renewal fee, plus the penalty, within 90 days of the license's expiration. FISCAL EFFECT: Unknown. COMMENTS: The California Department of Food and Agriculture (CDFA), under the California Meat and Poultry Supplemental Inspection Act (Act), are responsible for licensing and overseeing livestock and poultry slaughterhouses and processing plants. In 2011, due to general fund (GF) budget shortfalls, the Meat, Poultry and Egg Safety Branch within CDFA had their GF reduced by approximately $200,000, and then by approximately $325,000 in 2012. This had a major fiscal impact to several public health and safety programs, with programs under the Act being part of them. Through discussions with the affected industry and licensees, CDFA developed a new licensee and renewal fee structure that was adopted in a Budget Trailer Bill AB 112, (Budget), Chapter 30, Statutes of 2011, which significantly increased the licensees' fees while CDFA streamlined the administration of these programs. These increased fees were given a five year sunset in order to have both the fees and administration of the program reviewed. These programs have operated in a reasonable manner making continuation of the sunsets without adjustment to the fee levels a reasonable request. REGISTERED SUPPORT / OPPOSITION: AB 2716 Page 4 Support California Farm Bureau Federation (Sponsor) California Cattlemen's Association California Poultry Association Opposition None on file. Analysis Prepared by:Jim Collin / AGRI. / (916) 319-2084