BILL ANALYSIS Ó SB 549 Page 1 Date of Hearing: August 17, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 549 (Rubio) - As Introduced: February 17, 2011 Policy Committee: AgricultureVote:9 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill increases the assessment fee that egg producers pay the California Department of Food and Agriculture (CDFA) for the egg marketing program from five cents to a maximum of 15 cents per 30 dozen eggs. FISCAL EFFECT 1)CDFA estimates that the higher fee has the potential to increase the budget for regulatory enforcement of eggs from approximately $1.2 million per year to approximately $3 million. 2)The fees paid for this program are deposited in the Department of Food and Agriculture Fund, a continuously appropriated fund. By increasing moneys in a continuously appropriated fund, this bill makes an appropriation. COMMENTS Rationale . CDFA is authorized to adopt regulations on the marketing of shell eggs, including packaging, sampling procedures, branding, advertising, registration, grade standards, inspection, size and appearance and other matters related to shell egg production and marketing. To fund this program an assessment fee is charged to all in-state and out of state shelled egg producers. That assessment fee has been at its current level since 1998. During last year's egg recall, which involved out-of-state eggs, CDFA and the egg industry realized that additional enforcement SB 549 Page 2 was needed to maintain food safety and quality assurances for Californians. The author notes that this bill ensures that the shell egg program will be adequately funded for the future, while placing safeguards to ensure the egg assessment is increased fairly. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081