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Senate panel approves transfer of gas-assessment mills to help fund state meat-inspection program

Agriculture, Forestry & Economic Development - Senate · March 9, 2021
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Summary

The Senate Agriculture Committee approved SB 419 to transfer 4.5-cent mills from a gas assessment into general revenue, generating roughly $1.8 million; sponsors said part of the revenue would help fund a new state meat-inspection program, with an added provision for a four-year legislative reevaluation after USDA approval.

The Senate Agriculture, Forestry and Economic Development Committee approved Senate Bill 419 on a voice vote after its sponsor said the measure would shift 4.5-cent mills from a gas assessment into general revenue and generate about $1.8 million.

Senator Jonathan Disming (District 28) told the committee the transfer was intended in part to help finance a newly proposed state meat-inspection program. He said the program’s annual cost was "about $750,000," and that the committee needed to account for the program’s budget when planning revenue stabilization.

Senator Hill (District 29) described and secured adoption of an amendment to the related meat-inspection package that requires the General Assembly to reevaluate the program four years after approval by the United States Department of Agriculture "to look at the financials" and determine whether the program remains financially feasible for the state. Hill said the amendment would allow a formal, scheduled look-back at program outcomes and fiscal performance.

Committee practice was to approve the bill by voice vote. No roll-call tally was recorded in the hearing; members indicated assent through the committee’s voice vote procedure.

Why it matters: state-implemented meat-inspection programs can substitute for federal inspection in limited circumstances but carry startup and recurring costs. Committee sponsors framed the revenue transfer as a way to fund the state role while building in a legislative mechanism to review whether the program is fiscally sustainable after USDA approval.

What’s next: the committee approved SB 419 and the amendment; the measure will move forward in the legislative process.