BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 549 (Rubio)
          
          Hearing Date: 5/16/2011         Amended: As Introduced
          Consultant: Bob Franzoia        Policy Vote: Agriculture 7-0
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 549 would raise the maximum fee to $0.15 per 30 
          dozen eggs sold in the state, the revenue of which is used by 
          the Department of Food and Agriculture to ensure that eggs sold 
          and marketing in the state meet quality standards and to prevent 
          the deceptive or mislabeled marketing of eggs.  The fees paid 
          are deposited in the Department of Food and Agriculture Fund, a 
          continuously appropriated fund.  By increasing moneys in a 
          continuously appropriated fund, this bill would make an 
          appropriation.  The secretary is authorized to establish a lower 
          rate for those fees if the funds derived from the assessment are 
          more than reasonably necessary to cover the cost of 
          administration and enforcement of the preparation for market and 
          marketing of eggs.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Market enforcement     Up to ($210) initially, annually; up to  
          Special*
          assessment             ($2,100) maximum annually at $0.15   
          * Department of Food and Agriculture Fund
          _________________________________________________________________
          ____

          STAFF COMMENTS: 

          The department is authorized to adopt regulations on the market 
          and marketing of shell eggs, including packaging, sampling 
          procedures, branding, advertising, registration, grade 
          standards, inspection, size and appearance and other matters 
          related to shell egg production and marketing.

          The current assessment is the near maximum $0.045 per 30 dozen 
          eggs which generates approximately $1,050,000 or $210,000 per 
          $0.01 per 30 dozen eggs.  Total revenue would be $3,150,000 for 
          program operations.








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