BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 549
                                                                  Page  1

          Date of Hearing:   June 29, 2011

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                  SB 549 (Rubio) - As Introduced:  February 17, 2011

           SENATE VOTE  :  33-6
           
          SUBJECT  :  Eggs: assessment fees.

           SUMMARY  :  This bill would increase the assessment fee on 
          in-state and out-of-state eggs from a maximum of $0.05 per 30 
          dozen to a maximum of $0.15 per 30 dozen.  Specifically,  this 
          bill  :   

          1)Increases the maximum egg assessment fee from $0.05 per 30 
            dozen eggs to $0.15 per 30 dozen eggs for in-state and 
            out-of-state eggs sold in California.

          2)Adds an assessment fee on out-of-state egg products brought 
            into California of up to $0.15 per 30 dozen eggs equivalent. 

          3)Requires the Secretary (Secretary) of the California 
            Department of Food and Agriculture (CDFA) to establish a lower 
            rate of egg assessment that reasonably covers the cost of 
            administration and enforcement of the shell egg program.

          4)Makes technical and non-substantive changes.

           EXISTING LAW:

           1)Authorizes CDFA 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.  �Food and 
            Agriculture code (FAC) section 27531]

          2)Requires egg handlers and producers pay a maximum assessment 
            of $0.05 per 30 dozen eggs sold in the state.  Out-of-state 
            egg handlers and producers must report and pay the assessment 
            on egg sales into California sold to a producer, retailer, 
            handler, or breaking plant.  Allows the Secretary to establish 
            a lower assessment rate that reasonably covers the cost of 
            administration and enforcement of the shell egg program. �FAC 








                                                                  SB 549
                                                                  Page  2

            sections 27551-27555]

          3)Defines egg products as the white, yolk, or any part of eggs, 
            in liquid, frozen, dried, or any other form, used, intended or 
            held for use, in the preparation of, or to be a part of, or 
            mixed with, food or food products, for human consumption. �FAC 
            section 27512]

           FISCAL EFFECT  :  According to the Senate Committee on 
          Appropriations, this bill could raise up to $2.1 million for the 
          shell egg program.

           COMMENTS  :  Supporters state that an increase in the assessment 
          cap on the shell egg program will provide funds for increased 
          enforcement and a stronger egg inspection program.  This bill 
          raises the maximum egg assessment by $0.10 over the current 
          level and adds out-of-state egg products into the assessment 
          pool.  Including out-of-state egg products brings those products 
          in line with the current assessment on California produced egg 
          products.  

          During last year's egg recall, which involved out-of-state eggs, 
          it was realized that additional enforcement was needed to 
          maintain food safety and quality assurances for Californians.  
          This bill ensures that the shell egg program will be adequately 
          funded for the future, while placing safe guards to ensure the 
          egg assessment is increased judicially. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Pacific Egg & Poultry Association (sponsor) 
          California Grain and Feed Association (sponsor)
           
            Opposition 
           
          None on file.

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











                                                                  SB 549
                                                                  Page  3