BILL ANALYSIS Ó AB 689 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 689 (Dodd) - As Introduced February 25, 2015 ----------------------------------------------------------------- |Policy |Agriculture |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 689 Page 3 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