BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2716 (Dodd) - Meat processing establishment, custom livestock slaughterhouse, and poultry plants: licensing and inspectors ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 10, 2016 |Policy Vote: AGRI. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 2716 would extend, until January 1, 2022, the licensing fees for livestock and poultry meat inspectors, livestock meat processing inspectors, and livestock processing facilities, slaughterhouses, and poultry plants, as specified. Fiscal Impact: This bill would not result in additional costs to the California Department of Food and Agriculture (CDFA). Background: CDFA's Meat, Poultry and Egg Safety Branch (Branch) is responsible for (1) issuing licenses, (2) training and evaluating inspectors, and (3) inspecting meat, poultry, and egg production facilities that are exempt from USDA inspection. AB 2716 (Dodd) Page 1 of ? CDFA's General Fund budget was reduced by about one-third (or $30 million), in 2011-12. Specifically, General Fund support for the Branch was reduced by approximately $200,000 in 2011-12 and $325,000 in 2012-13. Subsequently, CDFA was directed to convene meetings with agricultural stakeholders to produce alternatives which limit the need for state resources, including establishing and raising fees. In the case of livestock and poultry licenses, fees were raised with the caveat that they be reviewed every five years according to the sunset date. The increased license fees generate approximately $200,000 in annual revenue. Thus, current law (1) requires livestock meat inspectors and processing inspectors to obtain a license and pay a $100 licensing fee and a $25 penalty late fee, if applicable, (2) requires meat processing and custom livestock slaughterhouses to obtain a license and pay a $500 licensing fee, or more depending on number of animals slaughtered, as specified, (3) prohibits the operation of a slaughterhouse that is not licensed, is not clean, does not meet building or equipment sanitary standards, violates an order of a licensed inspector, misbrands or mislabels livestock and poultry products, or disposes of condemned and inedible carcasses in a manner that violates law and/or regulations, (4) requires poultry plants to obtain a license from CDFA and pay a $500 licensing fee, or more depending on number of animals slaughtered, as specified, and (5) requires poultry meat inspectors to obtain a license and pay a $100 licensing fee and a $25 penalty late fee, if applicable. CDFA's Meat, Poultry and Egg Safety Branch is industry-funded by registration, licensing, and enforcement fees, and mill assessments on egg shipments in the State. The extension of the sunset provisions as specified in this proposal, would allow for the continued funding and operation of the program. Proposed Law: This bill would extend the sunset date, until January 1, 2022, for statutes authorizing the licensing and renewal of livestock meat inspectors, processing inspectors, persons operating a meat processing establishment, a custom livestock slaughterhouse, or AB 2716 (Dodd) Page 2 of ? a poultry plant, and fees charged for changes in the ownership of a custom livestock slaughterhouse, as enforced by CDFA. Related Legislation: AB 120 (Budget Committee, Chapter 113, Statutes of 2011) among other provisions, authorizes CDFA, until January 1, 2017, to increase the licensing fees for livestock and poultry meat inspectors, livestock meat processing inspectors, and livestock processing facilities, slaughterhouses, and poultry plants. Staff Comments: CDFA's Meat, Poultry and Egg Safety Branch is industry-funded by registration, licensing, and enforcement fees, and mill assessments on egg shipments in the State. The extension of the sunset provisions as specified in this proposal, would allow for the continued funding and operation of the program. -- END --