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Committee approves bill to establish state meat inspection program; DFA appropriation planned

Senate Agriculture, Forestry & Economic Development Committee · March 2, 2021
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Summary

HB 1315 would create a state meat inspection program funded initially via a DFA appropriation; the Department of Agriculture estimates set-up costs based on other states of roughly $2 million to $10 million and anticipates nominal application fees but not fee-funded full operation.

Senator Ricky Hill presented HB 1315 and said funding would come from an appropriation through the Department of Finance and Administration budget. Wes Ward of the Arkansas Department of Agriculture told the committee the bill would begin a multi-step process to stand up a state meat inspection program: the legislature must pass law and the agency must develop rules, submit a state inspection plan to USDA and await USDA approval before conducting inspections.

Ward said about 27 states have state inspection programs and that the setup and USDA approval process can take substantial time; the department is planning a roughly two-year startup window to develop rules and a plan that would come back to the legislature for any statutory adjustments. He gave cost comparisons from other states, saying programs can cost anywhere from $2,000,000 to $10,000,000 depending on lab needs and the number of inspected facilities, and cited Mississippi as a roughly $2,000,000 program with about 50% cost shared by USDA.

Committee members asked whether inspection fees would fund the program. Ward said the department anticipates only nominal application or inspection fees to offset administrative and laboratory costs and that those fees would not be expected to fully fund the program; the rules-and-fees framework would be set through the formal rulemaking process. After discussion, the committee passed HB 1315 by voice vote.