BILL NUMBER: AB 236 CHAPTERED 10/01/01 CHAPTER 384 FILED WITH SECRETARY OF STATE OCTOBER 1, 2001 APPROVED BY GOVERNOR SEPTEMBER 29, 2001 PASSED THE ASSEMBLY SEPTEMBER 6, 2001 PASSED THE SENATE SEPTEMBER 4, 2001 AMENDED IN SENATE JULY 16, 2001 AMENDED IN SENATE JUNE 26, 2001 AMENDED IN SENATE MAY 21, 2001 AMENDED IN SENATE MAY 17, 2001 AMENDED IN SENATE MAY 14, 2001 AMENDED IN ASSEMBLY MARCH 19, 2001 INTRODUCED BY Assembly Member Kelley FEBRUARY 13, 2001 An act to amend Sections 75030 and 75131 of, and to add Sections 75033.5 and 75090.5 to, the Food and Agricultural Code, relating to agriculture. LEGISLATIVE COUNSEL'S DIGEST AB 236, Kelley. Agriculture: the Egg Commission: agricultural markets. (1) Existing law establishes the Egg Commission and provides a definition of "handler" for purposes of the provisions governing the Egg Commission. The definition provided under existing law, among other things, specifies that when the handler is a corporation, all of the directors and officers of the corporation in their capacity as individuals shall be included within the definition. This bill would additionally provide that any handler that owns, controls, or is affiliated with any other person engaged in the handling of eggs in any marketing year shall be considered to be the handler of all eggs handled by that person. The bill would provide a definition of the term "person" for purposes of the provisions governing the Egg Commission. (2) Existing law sets out various powers and duties of the California Egg Commission, including the promotion and sale of eggs and egg products by advertising and other promotional means, to maintain and expand present markets and create new and larger intrastate, interstate, and foreign markets for eggs and egg products, and to educate and instruct the public, as specified. This bill would also authorize the commission to petition the Secretary of Food and Agriculture to adopt and administer any activity authorized by the California Marketing Act of 1937 relating to the commodity covered by the commission, as specified. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 75030 of the Food and Agricultural Code is amended to read: 75030. (a) "Handler" means the first person who sorts, grades, candles, or packages eggs, or who processes eggs into egg products, or who markets eggs or egg products in California that he or she has produced, purchased, or acquired from another person, or that he or she is marketing on behalf of another person, whether as owner, agent, employee, broker, or otherwise. When the handler is a corporation, all of the directors and officers of the corporation in their capacity as individuals shall be included, and any liability for failure to collect or make payment of assessments for which a corporate handler may be subject pursuant to this chapter shall include identical liability upon each individual director or officer of the corporation. "Handler" does not include a retailer, except a retailer who purchases or acquires eggs or egg products from any producer, handler, or broker that were not previously subject to assessment by the commission. (b) For purposes of this chapter, any handler that owns, controls, or is affiliated with any other person engaged in the handling of eggs in any marketing year shall be considered to be the handler of all eggs handled by that person. "Affiliate" or "affiliated with" means a person who directly or indirectly through one or more intermediaries, controls, is controlled by, or is under the common direction and control of another person. "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of any person. (c) All references to "handler" in this chapter, except for Article 3 (commencing with Section 75051), Article 5 (commencing with Section 75111), subdivision (a) of Section 75132, and Article 8 (commencing with Section 75171), but not including Sections 75175 and 75176, includes California handlers and out-of-state handlers, unless otherwise specified. SEC. 2. Section 75033.5 is added to the Food and Agricultural Code, to read: 75033.5. "Person" means an individual, sole proprietorship, partnership, corporation, cooperative, limited liability company, firm, or other business entity. SEC. 3. Section 75090.5 is added to the Food and Agricultural Code, to read: 75090.5. (a) The commission may petition the secretary to adopt and administer any activity authorized by the California Marketing Act of 1937, Chapter 1 (commencing with Section 58601) of Part 2 of Division 21 relating to the commodity covered by the commission. Adoption and administration of the activity by the commission shall be in accordance with the act. (b) As determined by the secretary, the governing body of the commission may serve as the advisory board to the secretary with respect to any activity recommended and approved pursuant to this section. SEC. 4. Section 75131 of the Food and Agricultural Code is amended to read: 75131. (a) The assessment on eggs and egg products shall be established by the commission, with the approval of not less than five handler members, prior to the beginning of each marketing season and, except as provided in subdivision (c), shall not exceed one cent ($0.01) per dozen for shell eggs, or the equivalent thereof, as determined by the commission, for egg products. (b) The commission may establish an assessment rate that is different for eggs than for egg products, so long as it does not exceed the maximum assessment authorized in subdivision (a). (c) An assessment greater than the maximum specified in subdivision (a) may be charged but only if it is approved by a vote of the handlers as provided for in Section 75112.