BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 549
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 SB 549 (Rubio) - As Introduced:  February 17, 2011 

          Policy Committee:                              AgricultureVote:9 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill increases the assessment fee that egg producers pay 
          the California Department of Food and Agriculture (CDFA) for the 
          egg marketing program from five cents to a maximum of 15 cents 
          per 30 dozen eggs. 

           FISCAL EFFECT  

          1)CDFA estimates that the higher fee has the potential to 
            increase the budget for regulatory enforcement of eggs from 
            approximately $1.2 million per year to approximately $3 
            million. 

          2)The fees paid for this program are deposited in the Department 
            of Food and Agriculture Fund, a continuously appropriated 
            fund.  By increasing moneys in a continuously appropriated 
            fund, this bill makes an appropriation.

           COMMENTS 

           Rationale  . CDFA is authorized to adopt regulations on the 
          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. To fund this 
          program an assessment fee is charged to all in-state and out of 
          state shelled egg producers.  That assessment fee has been at 
          its current level since 1998. 

          During last year's egg recall, which involved out-of-state eggs, 
          CDFA and the egg industry realized that additional enforcement 








                                                                  SB 549
                                                                  Page  2

          was needed to maintain food safety and quality assurances for 
          Californians.  The author notes that this bill ensures that the 
          shell egg program will be adequately funded for the future, 
          while placing safeguards to ensure the egg assessment is 
          increased fairly. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081