BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 689


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          689 (Dodd)


          As Amended  August 17, 2015


          Majority vote


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          |ASSEMBLY:  | 77-0 |(April 30,     |SENATE: | 36-0 |(August 27,      |
          |           |      |2015)          |        |      |2015)            |
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          Original Committee Reference:  AGRI.


          SUMMARY:  Authorizes the California Department of Food and  
          Agriculture (CDFA) to refuse to issue, or suspend or revoke, an  
          egg handler or egg producer certificate of registration, as  
          specified; would authorize CDFA to adopt regulations to classify  
          egg marketing violations and would increase the maximum civil  
          penalty from $1,000 to $10,000; and, authorizes CDFA and county  
          agricultural commissioners (CAC), in lieu of prosecution, to  
          levy an administrative penalty, as specified.


          The Senate amendments:


          1)Authorize CDFA to refuse to issue, or to suspend or revoke, an  
            egg handler or egg producer certificate of registration under  
            certain circumstances and would require CDFA to adopt  
            regulations to establish procedures for an appeals process to  
            contest the refusal to issue a certificate of registration or  








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            CDFA's suspension or revocation of a certificate of  
            registration. 


          2)Make technical and conforming changes to this bill.


          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 shell egg marketing regulations  
            (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.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          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  








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          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 CACs 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 existing SEMR.  This bill also  
          authorizes CDFA to refuse to issue, or suspend or revoke, the  
          license due to violations of SEMR. 


          This bill includes an 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. 


          This bill is substantially similar to the version that was  
          passed by the Assembly. 


          Analysis Prepared by:                                             
                          Victor Francovich / AGRI. / (916) 319-2084  FN:  
          0001363












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