BILL ANALYSIS Ó
SB 549
Page 1
SENATE THIRD READING
SB 549 (Rubio)
As Introduced February 17, 2011
Majority vote
SENATE VOTE :33-6
AGRICULTURE 9-0 APPROPRIATIONS 13-4
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| | | | |
|Ayes:|Galgiani, Valadao, Bill |Ayes:|Fuentes, Blumenfield, |
| |Berryhill, Hill, Ma, | |Bradford, Charles |
| |Mendoza, Olsen, Perea, | |Calderon, Campos, Davis, |
| |Yamada | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Norby, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Wagner |
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SUMMARY : This bill would increase the assessment fee on
in-state and out-of-state eggs from a maximum of $0.05 per 30
dozen to a maximum of $0.15 per 30 dozen. Specifically, this
bill :
1)Adds an assessment fee on out-of-state egg products brought
into California of up to $0.15 per 30 dozen eggs equivalent.
2)Requires the Secretary of the California Department of Food
and Agriculture (CDFA) to establish a lower rate of egg
assessment that reasonably covers the cost of administration
and enforcement of the shell egg program.
3)Makes technical and non-substantive changes.
EXISTING LAW:
1)Authorizes CDFA to adopt regulations on the market and
marketing of shell eggs as specified. ÝFood and Agriculture
Code (FAC) Section 27531]
2)Requires egg handlers and producers pay a maximum assessment
of $0.05 per 30 dozen eggs sold in the state. Out-of-state
SB 549
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egg handlers and producers must report and pay the assessment
on egg sales into California sold to a producer, retailer,
handler, or breaking plant. Allows the Secretary of the CDFA
to establish a lower assessment rate that reasonably covers
the cost of administration and enforcement of the shell egg
program. ÝFAC Sections 27551-27555]
3)Defines egg products as specified. ÝFAC Section 27512]
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill's 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.
COMMENTS : Supporters state that an increase in the assessment
cap on the shell egg program will provide funds for increased
enforcement and a stronger egg inspection program. This bill
raises the maximum egg assessment and adds out-of-state egg
products into the assessment pool. Including out-of-state egg
products brings those products in line with the current
assessment on California produced egg products.
During last year's egg recall, which involved out-of-state eggs,
it was realized that additional enforcement was needed to
maintain food safety and quality assurances for Californians.
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 judicially.
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
FN: 0001923