BILL ANALYSIS Ó
AB 689
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON AGRICULTURE
Henry T. Perea, Chair
AB 689
(Dodd) - As Introduced February 25, 2015
SUBJECT: Marketing of eggs: violations: civil actions: civil
penalties.
SUMMARY: This bill increases the fine for a violation of shell egg
marketing regulations (SEMR) from a maximum of $1,000 to a maximum
of $10,000 and authorizes county agricultural commissioners, in lieu
of prosecution, to levy civil penalties for a violation of SEMR.
Specifically, this bill:
1)Increases the fine for a violation of SEMR from a maximum of
$1,000 to a maximum of $10,000.
2)Requires notification to the person charged with a SEMR violation
that includes the following information: nature of the violation,
amount of proposed penalty, the right to request an appeal hearing
and right to judicial review of a decision within 30 days of the
decision.
3)Requires the Secretary (Secretary) of the California Department of
Food and Agriculture (CDFA) to send a copy of the notice of
proposed action to the County Agricultural Commissioner (CAC)
where the violation took place.
4)Requires the Secretary to inform CAC, as specified, of the
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violation for which a penalty has been assessed.
5)Allows CAC to bring civil action against a person who violates
SEMR within the CAC's county.
6)Requires any funds recovered by CAC, due to civil action against a
person who violates SEMR within the CAC's county, to be deposited
in the CAC's county's General Fund (GF).
7)Defines person, for the purpose of SEMR violations, as anyone
engaging in the business of preparing or selling of shelled eggs
for market, as specified.
a) Requires, before a civil penalty is imposed, notification to
the person charged with a SEMR violation that includes the
nature of the violation and amount of proposed penalty;
b) Requires the person charged to have the right to request a
hearing within 20 days of receiving notification;
c) Requires, if a hearing is requested, notification to the
person charged the time and place of the hearing at least 10
days before the hearing;
d) Requires at the hearing that the person charged be allowed
to review CAC's evidence and present evidence on their own
behalf; and,
e) Allows CAC to take proposed action without a hearing, if one
is not requested.
8)Requires CAC to send a copy of the proposed action to the
Secretary, at the same time notice is sent to the person charged.
9)Allows a person, who CAC levies civil penalties against, to appeal
the decision to the Secretary, if the person had requested and
appeared at a hearing.
10)Requires the following procedures to apply to the appeal:
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a) Requires the appeal to be in writing and signed by the
person or their agent, listing the grounds for appeal and a
copy of the CAC decision. Requires copy a to be sent to CAC;
b) Allows the person and CAC to present a record of the hearing
and a written argument to the Secretary stating grounds for
upholding, changing or repealing the CAC's decision;
c) Allows the Secretary to allow oral arguments when written
arguments are filed.
i) Requires at least 10 days' notice of time and place, if
oral arguments are granted; and,
ii) Allows times to be changed if agreed upon by the person,
CAC and the Secretary.
d) Requires the Secretary to make a written decision within 45
day of the date of the appeal or as specified;
e) Allows that the Secretary's decision could uphold, modify,
reduce or repeal the CAC's action, as specified. Requires both
the person and CAC to receive a copy of the Secretary's
decision;
f) Disallows a person who does request a hearing with CAC to
file for an appeal with the Secretary; and,
g) Allows the person to request a review of the Secretary's
decision within 30 days of the decision, as specified.
11)Allows CAC to file a certified copy of a final decision with the
court that directs the payment of a civil penalty pursuant to
violations of SEMR, as specified.
12)Requires funds from civil penalties levied by CAC to be placed in
the CAC's county GF, to be used by the CAC to carry out the CAC's
duties. Requires CAC to inform the Secretary of the violation for
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which a penalty has been assessed.
13)Provides for procedures to receive payment for civil penalties
and court remedies if payments are not made, as specified.
14)Requires, that when an administrative hearing is requested, a
final decision and order within 60 days of the conclusion of the
hearing and that the order be mailed to the person and any
penalties imposed are due within 45 days of the postmark on the
order.
EXISTING LAW:
1)Regulates the marketing of shell eggs, and requires egg producers
and egg handlers to register with the Secretary of CDFA.
2)Provides for violations of SEMR, punishable as a misdemeanor.
3)Allows the Secretary, in lieu of seeking prosecution for SEMR
violations, to bring a civil action for up to $1,000 for each
violation.
4)Allows a district attorney in a county were a violation takes
place to prosecute SEMR violations.
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FISCAL EFFECT: Unknown. This bill has been keyed fiscal by
Legislative Counsel.
COMMENTS: In order to ensure fair business practices and informed
consumers, California has enacted a series of civil and criminal
laws and regulations concerning the marketing of shell eggs. Shell
eggs are in-shell eggs which have not been pasteurized. California
strictly regulates the quality of egg products for sale and the
manner in which they are advertised so that consumers can be safe
and informed. Among these are regulations concerning misleading
advertising regarding the grading of the eggs; under what conditions
the egg-laying hens lived; the proper storage, handling, and
refrigeration of the eggs; and even if the eggs are chicken eggs at
all. According to supporters, SEMR requirements are vital, not only
for promoting fair business and informed consumption, but for
protecting the health of Californians.
According to the author, violations of SEMR are under-enforced.
District attorneys are unlikely to use limited resources to
prosecute a commercial/agricultural issue that brings little return
to the county due to caps on penalties. While the Secretary of CDFA
can pursue civil penalties, using a statewide office to pursue local
violations also may not be the best use of limited resources.
By allowing CAC to levy civil penalties for SEMR violations, this
bill puts the local officials with in-depth knowledge of
agricultural issues and regulations in a position to act quickly.
Furthermore, the author states the combination of quicker local
action and increased fines will help ensure greater compliance with
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existing SEMR.
This bill includes a standard appeals process. Parties who believe
they have been mistakenly fined by CACs can petition either for a
reduction in the fine or a total overturn. The appeals process is
mediated by the Secretary of CDFA.
REGISTERED SUPPORT / OPPOSITION:
Support
Association of California Egg Farmers (Sponsor)
Pacific Egg and Poultry (Sponsor)
Opposition
None on file
Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084
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