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Conveyor Currents July 19, 2013
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| Upcoming Dates |
2014
January 15-16, 2014 Grain & Feed Industry Conference, Embassy Suites, Monterey, CA
April 23-26, 2014 CGFA Annual Convention ~ The Sheraton Resort, Maui, HI
2015
April 22-25, 2015 CGFA Annual Convention - The Monterey Plaza Hotel on Cannery Row.
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| Quick Links |
California Dept. of Food & Ag
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CGFA Committee and Study Group Assignments Approved
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President Peter Hanlon and the Board of Directors approved the committee appointments for the 2013-2014 membership year at the recent board of directors meeting.
It is within the committees/study groups that industry problems are identified, analyzed, discussed--and where solutions and courses of action are born. Here the individual can have his/her voice heard and contribute effectively to the process of industry self determination. Committees and study groups also play a major role in the development of CGFA policy and the planning and scheduling of CGFA events. The final effectiveness of this system depends on your active involvement. Finally, study group participation enables you to receive special information mailings on areas of concern related to the study group classification. Our government Relations Committee is devoted to maintaining liaison with state legislators and actively lobbying legislation.
Click here to review the list(s). Please let us know if you don't see your name on a committee that you would like to serve and/or if you see your name on a list that you would prefer to be removed. The office will let you know when these committee(s) will be meeting throughout the year. Thank you for your participation.
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Protecting the Pet Food and Animal Feed Ingredient Approval Process -
Your Action Requested
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Background: The Food and Drug Administration Amendments Act of 2007 (FDAAA) requires FDA to define "ingredient standards and definitions with respect to pet food." The pet food language was incorporated into FDAAA in the wake of the imported Chinese melamine situation. In response, FDA's Center for Veterinary Medicine subsequently announced it would develop such ingredient "standards" for all animal foods, given that livestock/poultry feeds and pet foods are regulated in the same manner. The word "standard" within FDAAA was intended to be synonymous with "definition;" however, the absence of the word "standard" in relevant sections of the Federal Food, Drug and Cosmetic Act is causing confusion within FDA. If this confusion is not addressed in an appropriate manner, it could result in the elimination of the long-standing Association of American Feed Control Officials (AAFCO) ingredient definition process collaboratively administered by FDA and AAFCO through which most ingredients for pet food and animal feed are defined and gain approval for use.
The NGFA, American Feed Industry Association (AFIA) and Pet Food Institute (PFI) have been urging FDA to accept apparent congressional intent in equating the term "standard" with "definition." We have strongly urged FDA to apply its executive authority to this situation and accept these two words as being synonymous. In our view, doing so would represent a common-sense, fiscally responsible and efficient solution to this issue, and immediately remove the threat to the existing FDA/AAFCO ingredient definition process. However, FDA has not taken executive action to resolve this issue.
As a result, the NGFA, AFIA and PFI have worked with members of Congress to reaffirm its intent of the FDAAA language and to instruct FDA to internally resolve this situation while preserving the existing FDA/AAFCO ingredient definition process. In response, Rep. Andy Barr (R- Ky.) and Rep. Robert Latta (R- Ohio) currently are circulating a letter (attached) among their colleagues in the U.S. House of Representatives that requests FDA to "... focus on an administrative solution to the FDAAA language issue while preserving the FDA/AAFCO cooperative relationship and official recognition of OP [AAFCO Official Publication ingredient] listings."
Your Action Requested: The NGFA, AFIA, and PFI request that members contact their Representative within Congress to encourage them to sign this letter. Please consider distributing this request to your individual members. A sample email and points to make if calling a Representative also is attached. U.S. House of Representatives' contact information is available here by entering a zip code. The deadline for Representatives to sign the letter is July 26, so immediate action is requested.
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| California Legislative Report | |
by: Dennis Albiani, Legislative Advocate ~ July 2013
California is experiencing a much better 2013 than the previous 4 years. Tax revenues are considerably higher than in years past and higher than predicted by the Governor and the Legislative Analyst's office. The revenue is higher for two reasons: An overall improving economy and the passage of the Governor's tax increase last November, Proposition 30.
The final budget agreement uses the Governors more conservative projections on general fund revenue at $97 billion. The Legislative Analyst had argued that the Governor underestimated revenues by $3.2 billion. There was some movement to the Governors "local weighted" formula for education financing. The UC and CSU had approximately $500 million restored to their budgets. CDFA budget remained relatively static and attempts by urban legislators to tax fertilizers and further regulate pesticide applications were thwarted for the time being.
We are now in summer recess for the legislative session. The Assembly will return August 5th and the Senate returns August 12th. Some of the major news from the house of origin deadline was that all the threatening tax bills including "split roll" property tax, redefining "change of ownership" for tax assessments, taxes on soda, cigarettes and other products were all held on the suspense committee and did not pass the house of origin. Several bills further ratcheting environmental reforms also failed to pass. It was reported that 31 of the 37 bills identified by the California Chamber of Commerce failed. However, several labor bills (discussed below) are moving forward.
CGFA Sponsored Legislation
AB 1132 (Eggman) Feed Inspection Program Reauthorization - Extend the sunset on the Feed Inspection Program and provide federal coordination on FSMA implementation including the SAFE program and HACCP equivalent practices.
AB 1319 (Eggman) Animal Diseases and Secretary Strategic Growth Initiative - This bill was initially introduced as an animal welfare placeholder to address any issues with AW that may arise. Since there were not any bills or legal actions that arouse that needed legislative attention, the Secretary of CDFA asked if the bill could be used to add her to the "Strategic Growth Council" as well as address a clean-up provision updating the indemnification provisions for cattle that are seized under brucellosis outbreaks.
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California Legislative Update
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SD 16 Special Election July 23
The special election for Senate District 16 between Democrat Leticia Perez and Republican Andy Vidak will take place next Tuesday, July 23. The race is heating up as the California Republican Party has reported contributing more than $186,000 to Vidak's campaign, an amount supplemented by contributions from the Tulare County Republican Party ($21,381) and the San Luis Obispo Republican Central Committee ($40,000). Union-backed independent expenditure committees, meanwhile, are putting their money behind Perez. Since July 1, she has benefited from nearly $200,000 spent on mailers, radio buys, Facebook ads and other activities of several IE committees, including those of SEIU Local 1000 and the California State Council of Service Employees. As of July 6, Vidak reported $124,838 while Perez reported $72,455, according to filings with the secretary of state through late last week.
2 California Legislators to Testify Before Grand Jury in Calderon Case
Senator Kevin De Leon (D-Los Angeles) and Assemblyman Adam Gray (D-Merced) have been subpoenaed to testify at the federal grand jury next month in Los Angeles involving Senator Ron Calderon. Officials still have not stated what they are investigating, but they searched Calderon's Capitol office last month and removed several boxes of material.
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| Senate Acts on House Farm Bill |
Yesterday afternoon, the Senate moved the House passed Farm Bill, H.R. 2642, under unanimous consent. The bill was modified to strip the House passed bill language and inserting language from the Senate Farm Bill, S. 10. Following passage, the Senate formally requested a conference committee with the House. Still unclear is whether the House will pass a nutrition bill, as nutrition programs were not included in the House Farm Bill. House Ag Chair Frank Lucas (R-OK) is working to find a consensus on SNAP programs but, even if he crafts a compromise, House Speaker John Boehner (R-OH) has stated he has no time frame for addressing SNAP.
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House Farm Bill on Way to Senate; Process, Nutrition Cloud Outlook |
With Senate Agriculture Committee Chair Debbie Stabenow (D, MI) willing to take anything the House sends her -- returning something "responsible" once the dust settles, the House this week struggled with how to get at least a step closer to conference committee action on the Farm Bill.
However, the House stripped out the nutrition title containing the controversial federal food stamp program, and the ultimate fate of those nutrition programs may be blocking quick action in getting the House bill to conference. The current extension of 2008 farm program authority expires September 30, so August is critical.
Despite the Senate rhetoric and the House political hurdles, both Stabenow and Rep. Frank Lucas (R, OK), chair of the House Ag Committee, are trading political challenges and assertions of inadequacy in each chamber's bill. "Not a real Farm Bill," is how Stabenow first described the House action removing the nutrition title. For himself, Lucas told the press this week the Senate bill is deficient in its commodity title, food stamp reform, crop insurance and contains no measurable regulatory reforms. Lucas sent a note to his House colleagues this week informing them of his intent to begin informal conversations with the Senate on reconciling the two bills. He also met with House Majority Leader Eric Cantor (R, VA) on how the chamber will deal with a stand-alone nutrition bill, and whether the future of nutrition is tied to the future of the Farm Bill conference.
On July 16, the House formally sent its "farm-only" bill to the Senate, bringing the two chambers at least one step closer to reconciling the differences in the two bills. The next move is Stabenow's and Senate leadership's. Because the Senate bill includes some revenue increasers -- which under the Constitution, must originate in the House -- the Senate can take up the House bill, substitute the Senate approved Farm Bill and send it back to the House. Stabenow must go through other procedural hurdles, getting the Senate to send its approved bill to the House and formally requesting a conference committee be named. She and committee ranking member Sen. Thad Cochran (R, MS) early this week told the full Senate each member needs to send the ag committee its list of issues to be discussed in conference.
House leadership can name conferees without the procedural hurdles in the Senate. However, In the Senate, new rules in force for this Congress require formal votes to name conferees and another vote to move to formal conference committee action. While these votes are traditionally voice votes, any one Senator can throw a wrench into the process. The Senate could take up the House-passed bill, amend it and send it back to the House without a conference committee. However, this game of chamber legislative ping pong is complex, time-consuming and unpopular.
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| Hidden Rail Rate Study Provision in Both Farm Bills |
A little-known provision of both House and Senate-approved Farm Bills would require USDA and the Department of Transportation to cooperate in a study on agriculture transportation factors, including rail rates. While not identical, both provisions would require the joint USDA-DOT study of rail freight rates, with the Senate bill laying out the provisions of the transport factors study in greater detail. The Senate language also calls on the ag secretary to "represent rural interests" before the Surface Transportation Board (STB).
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| Do Food Stamps, Nutrition Have to be Part of Farm Bill? |
The House Agriculture Committee chair says it's possible; the Senate Agriculture Committee chair says it's mandatory, but when the dust settles on the Farm Bill conference committee, odds are the conference report will contain a nutrition title. And most food stamp program and federal nutrition advocates would like to see those programs as part of a five-year Farm Bill. House ag panel Chair Frank Lucas (R, OK) said this week he's been appointed to a House Task Force dealing with the future of nutrition program reauthorization -- including federal food stamps -- because the House stripped that title from the Farm Bill approved last week. That group of about 20 met this week. At the same time, leadership is debating whether to send its Farm Bill to conference before the House deals with a stand-alone nutrition bill. Lucas says it is "problematic" to try and conference a Farm bill without some clear direction or a formal House position. Lucas says any action taken by the House will be problematic given how far the original House Farm Bill language on food stamp reform was from the Senate version. The House claimed over $20 billion in food stamp reform by curtailing fraud, waste and abuse; the Senate bill claims about $4 billion in savings over the same 10-year period. Lucas pointed out several major areas in which the House reworked the Supplemental Nutrition Assistance Program (SNAP), but challenged his colleagues: "If you want more cuts, what do you want to cut?" Ultimately, either the House or Senate must relent. The Senate bill contains a nutrition title meaning either it surrenders that section of the bill to match the House bill, or the House accepts the Senate language, with or without negotiated changes. |
| No Serious House Action on Immigration Seen | |
There's no likelihood of a House immigration reform "package" soon, said staff close to the issue this week, as the bipartisan "gang" of House members trying to forge a consensus yet again failed to meet a deadline to "unveil" its bipartisan reform package.
However, House leadership have made it clear they're willing to act on a path to citizenship for the children of illegal immigrants, whether brought to the U.S. with their parents or born here. This willingness to deal with the "Dream" children issue is also seen as a change in a GOP hardline opposition to a path to citizenship for the 11 million illegal workers in the U.S.
The draft comprehensive package is said to be about 500 pages long, but is in desperate need of "fine tuning," said one source. Sticking points include illegal immigrants' liability for back taxes; enhanced border security, and big penalties for employers who knowingly hire illegal workers.
Meanwhile, the House Judiciary Committee, chaired by Rep. Bob Goodlatte (R, VA), continues to move individual bills mirroring sections of the Senate-passed comprehensive legislation, and met with House Majority Leader Eric Cantor (R, VA) to talk about the fate of Cantor's KIDS Act dealing with accelerated citizenship for the children of illegal and undocumented workers.
The KIDS Act, as well a separate bill dealing with visa reforms for low-skilled non-ag workers are expected to be taken up by the judiciary panel soon. They are the sixth and seventh bills to move through committee; no bills are set for floor action yet.
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| Barley Seen as Next Ethanol Feedstock; RFS Repeal Movement Grows | |
Ethanol refined from grain sorghum is now an advanced biofuel, and this week EPA said this week ethanol refined from barley meets all federal greenhouse gas reduction standards under the Renewable Fuels Standard (RFS) and with some fine tuning of processing technology could also qualify as an advanced biofuel.
Meanwhile, the House Energy & Commerce Committee this week held a hearing on the impact of the ethanol RFS on livestock and poultry producers due to run-ups in the cost of feed based on competition for corn. Rep. Bob Goodlatte (R, VA), who's introduced legislation to repeal the RFS, said the issue boils down to "the federal government puts a big thumb on one side of the scale between the use of corn for food and the use of corn for fuel."
EPA is expected to publish soon its proposed rule on barley-based ethanol qualifying as a renewable fuel, seeking public comment on EPA's findings. These findings include at least a 20% reduction in greenhouse gas emissions; to qualify as an advanced biofuel, that reduction must hit 50%, the agency said. Cellulosic ethanol, for instance, hits a 60% reduction.
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| McCarthy Confirmed as EPA Administrator |
Following a lively debate, the Senate confirmed Gina McCarthy as EPA Administrator, by a vote of 59-40. Biofuel industry insiders applauded the move while those in the coal industry continued to have serious concerns with EPA. EPA is currently writing climate regulations that are expected to significantly affect the nation's power plants. During the confirmation process, McCarthy acknowledged EPA's deteriorating relationship with the ag community. Aggies were especially angered by the release of animal operations data to environmental organizations earlier this year.
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| Bills on Permitting, Regulatory Costs Backed by Panel | |
The House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law approved, in separate voice votes, a bill (HR 2641) to streamline federal agency preparation of environmental assessments of construction permits and a measure (HR 2122) to update federal rulemaking requirements to direct agencies to choose the least-costly options. (Source: CQ.com)
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Still A Lot of Value in Dental and Vision Care
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Executives at Bailey Lauerman & Associates, an advertising agency in Lincoln and Omaha, Neb., see big value in offering a vision plan to its employees.
Though they're paying for coverage of a single dental and vision plan for its 60 employees, they say it's a small price to pay for keeping - and attracting - happy and healthy employees.
"We use it as a recruiting tool," says Spencer Peery, the firm's business manager. "We offer some of the best benefits at a competitive price. These benefits keep our employees healthier. They use dental and vision coverage almost as much as they use health insurance, for both prevention and general care."
Bailey Lauerman & Associates offer a single dental and vision plan and pays for employees' coverage. Workers pay $20 a month to add their families to the plan.
"It's worth it to us to be able to offer that benefit. It's one of our costs of doing business and keeping employees happy," Peery says, adding that the company plans to continue offering the same, standalone vision benefit, even when coverage bought on an insurance exchange becomes another option.
Peery's firm is simultaneously unusual and very common: unusual in paying the entire premium for employees' vision coverage, but common in planning to continue the benefit after the Patient Protection and Affordable Care Act comes fully into effect.
An increasingly voluntary benefit
Twenty years ago, many employers began offering workers vision coverage, part of a continuing effort to recruit and retain the best people. Back then, employers typically picked up the entire premium, at least for the employee and sometimes for employee families are well.
Now, by contrast, firms are moving toward voluntary enrollment and an arrangement that has employees participating in at least some of the costs.
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