During the 1978 session of the General Assembly, legislation was introduced which sought to eliminate the inspection fee imposed by the Virginia Commercial Feed Law (Chapter 28 of Title 3.1, §§ 3.1-797 through 3.1-828 of the Code of Virginia). This legislation, amended by the Senate Committee on Finance, was carried over to the 1979 session. It was subsequently approved by both houses of the General Assembly and signed into law by the Governor.

The amended version which was approved, however, differed considerably from the bill introduced in 1978. The earlier legislation sought to remove all tonnage fees levied on commercial feed at the time of inspection, except for that which was paid into the Virginia Agricultural Foundation Fund to support agricultural research. The new legislation continues to assess fees which are used (i.e., they are deposited in the general fund), to support the feed inspection program.

Prior to the passage of this legislation, a fee of $.20 per ton was assessed on all feed sold in the Commonwealth. Twenty-five percent of the revenue derived from this fee was paid into the Virginia Agricultural Foundation Fund. As a result of the amendments to this statute, those covered by this program are divided into two groups. The first group consists of contract feeders (those who own animals and the feed supplied them, but contract with someone else to supply the necessary management, housing or labor); the second group consists of all other feed manufacturers and distributors. Under the new legislation (which is not effective until July 1, 1980), contract feeders are to be assessed a fee of $.06 per ton of feed, while all others will be assessed $.16 per ton of feed. All of the money derived from contract feeders, and $.06 of the $.16 tonnage fee levied on others, will be paid into the Virginia Agricultural Foundation Fund.

Although the General Assembly was unwilling to abolish, as requested, all feed fees except those which go to the Virginia Agricultural Foundation, it did agree by resolution to further study this question. This Subcommittee was appointed pursuant to this resolution, and was asked to study whether agricultural inspection programs, such as those pertaining to feed and fertilizer, should be supporte??d by the imposition of fees, the general fund, or some combination of both.