California Assembly Bill AB657

California 2019-2020 Regular Session

• Introduced: 2/15/19
• Refer: 2/25/19
• Report Pass: 3/28/19
• Refer: 3/28/19
• Refer: 4/10/19
• Report Pass: 5/16/19
• Engrossed: 5/23/19
• Refer: 5/24/19
• Refer: 6/6/19
• Report Pass: 6/10/19
• Refer: 6/10/19
• Report Pass: 7/2/19
• Refer: 7/2/19
• Report Pass: 8/12/19
• Enrolled: 8/30/19
• Chaptered: 9/20/19
• Passed: 9/20/19

Caption

Agriculture: commercial feed.

Impact

The revenue generated from these license fees will significantly impact the state’s agricultural funding by ensuring replenishment of reserves for the feed inspection program. Once reserves reach a minimum level, any additional funds collected through these fees may be redirected to reduce tonnage taxes associated with commercial feed sales, consequently affecting the operating costs for businesses involved in this sector. The bill's provisions also support ongoing research and educational efforts related to the safe manufacture and use of commercial feed, contributing to overall industry safety and sustainability.

Summary

Assembly Bill 657, introduced by Eggman, amends the Food and Agricultural Code to extend the implementation date for a new license fee structure affecting commercial feed distributors. The initial requirement for a new annual license fee of $100 per location was set to commence on January 1, 2020, but this bill moves the effective date to January 1, 2025. This extension aims to provide commercial feed distributors additional time to comply with the new fee structure and is expected to generate increased revenue for state agricultural programs.

Sentiment

Overall, the sentiment surrounding AB 657 reflects a cautious optimism, recognized by both agricultural stakeholders and regulatory bodies. Supporters anticipate that this measured approach in implementing fees will allow for better compliance and more structured oversight within the commercial feed industry. Conversely, there may be concerns from smaller distributors regarding the financial impact of the new fees and whether they can bear the additional costs while maintaining competitiveness in the market.

Contention

While the bill primarily seeks to facilitate a smoother transition to a higher fee structure, contention may arise surrounding the sustainability of these fees and the effectiveness of the inspection program. Questions could emerge about whether the projected revenues will adequately support necessary program functions, and if the potential for reduced tonnage taxes will sufficiently offset new licensing costs for consumers. These discussions will likely continue as the implementation date approaches.