BILL ANALYSIS Ó AB 689 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 689 (Dodd) As Amended August 17, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 77-0 |(April 30, |SENATE: | 36-0 |(August 27, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 689 Page 2 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 AB 689 Page 3 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 AB 689 Page 4