BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2716


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          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  








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          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  








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          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:












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          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