BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 689


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          Date of Hearing:   April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          689 (Dodd) - As Introduced February 25, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill increases the maximum fine for a violation of shell  
          egg marketing regulations (SEMR) from $1,000 to $10,000, and  
          authorizes County Agricultural Commissioners (CACs) to levy  
          civil penalties for violations of SEMR in lieu of prosecution.   
          The bill specifies notification requirements for persons charged  
          with violations and codifies notification requirements between  
          the Secretary of the Department of Food and Agriculture (DFA) to  
          CACs for proposed actions.


          The bill establishes due process procedures for appealing SEMR  
          violation penalties levied by CACs, and specifies that any funds  








                                                                     AB 689


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          received by CACs as a result of civil actions be deposited in  
          the relevant county general funds.


          FISCAL EFFECT:


          Minor and absorbable enforcement costs to DFA as the bill merely  
          codifies DFA practice with respect to SEMR enforcement, likely  
          offset by increased revenue from enhanced fines.


          COMMENTS:


          1)Purpose.  According to the author, violations of SEMR are  
            under-enforced.  District attorneys may be unlikely to use  
            resources to prosecute commercial or agricultural violations  
            when the returns are limited by the low cap on penalties.  The  
            author believes allowing CACs to levy civil penalties for SEMR  
            violations will place agricultural experts in a position to  
            act quicker, while higher fines will help ensure greater  
            compliance.


            The bill also includes a standard appeals process, allowing  
            parties who believe they have been mistakenly fined by CACs to  
            petition the Secretary of the DFA for relief.


          2)Shell Egg Marketing and Sales.  Shell eggs are in-shell eggs  
            that have not been pasteurized, and the state strictly  
            regulates the quality of shell eggs and the manner in which  
            they are marketed and sold.  Current regulations on the  
            marketing of shell eggs require egg producers and handlers to  
            register with the Secretary of the DFA, and allow the  
            Secretary to levy civil penalties of up to $1,000 for  
            marketing and registration violations.  Current law also  
            allows district attorneys to prosecute violations, with  








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            maximum fines set at $1,000.


            SEMR violations include misleading advertising regarding the  
            grading of eggs and the conditions under which egg-laying hens  
            live, such as free-range eggs.  Current law also regulates the  
            manner of storage, handling, and refrigeration of shell eggs,  
            and compliance with these rules is considered vital for food  
            safety. 


          Analysis Prepared by:Joel Tashjian / APPR. / (916)  
          319-2081