BILL NUMBER: AB 1069	CHAPTERED
	BILL TEXT

	CHAPTER  283
	FILED WITH SECRETARY OF STATE  SEPTEMBER 4, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 3, 2003
	PASSED THE ASSEMBLY  AUGUST 21, 2003
	PASSED THE SENATE  JULY 21, 2003
	AMENDED IN SENATE  JULY 15, 2003
	AMENDED IN SENATE  JUNE 25, 2003
	AMENDED IN ASSEMBLY  APRIL 7, 2003

INTRODUCED BY   Committee on Agriculture (Matthews (Chair), Maldonado
(Vice Chair), Berg, Cogdill, Maddox, Maze, Oropeza, Parra, Reyes,
Salinas, Vargas, and Wiggins)

                        FEBRUARY 20, 2003

   An act to amend Sections 27541, 27551, and 27553 of, and to add
Sections 27503.5, 27519.5, 27680, 27681, 27682, 27683, 27684, 27685,
27686, 27687, 27688, 27688.5, 27689, and 27690 to, the Food and
Agricultural Code, relating to eggs.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1069, Committee on Agriculture.  Eggs.
   Existing law governing the regulation of eggs and egg products
provides that its purposes are to assure that healthful and wholesale
eggs of known quality are sold in the state, to facilitate the
orderly marketing of eggs, and to prevent the marketing of deceptive
or mislabeled containers of eggs.  Existing law provides that the
Secretary of Food and Agriculture may adopt regulations relating to
the preparation for market and marketing of shell eggs, including
procedures for the collection of assessments and for the registration
of egg handlers.  The secretary may prescribe the frequency of
payment, procedure for payment, and penalties for late payment of
assessments.  Existing law requires that the initial purchaser of
eggs from out-of-state shall report and pay to the director a maximum
assessment fee of five cents ($0.05) for each 30 dozens of eggs,
which shall be deposited into the Department of Food and Agriculture
Fund and used only for the administration and enforcement of
provisions relating to shell eggs.
   This bill would provide that an assessment for eggs for which the
required payment has not been made by the date established by the
department shall be triple the amount otherwise due or $500,
whichever is greater.
   The bill would require out-of-state egg handlers and producers
selling eggs in California to register with the Secretary of Food and
Agriculture.  This bill would require the fees collected to be paid
based upon the number of eggs sold, as specified.  This bill would
require out-of-state egg handlers to pay the fee on eggs sold in
California.  This bill would specify procedures by which out-of-state
registrants would be inspected by the department.  This bill would
provide that if the department determines that eggs do not comply
with standards, the department would prevent their sale in
California, as specified.  This bill would require each registrant to
submit a report on its operations with respect to eggs sold in
California and to remit any fees due on a monthly basis.
   Because this bill would impose new enforcement duties upon local
agencies thereby requiring them to perform a higher level of service,
and would also create new crimes, this bill would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that no reimbursement is required by this
act for specified reasons.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 27503.5 is added to the Food and Agricultural
Code, to read:
   27503.5.  "California egg" means an egg produced in this state.
  SEC. 2.  Section 27519.5 is added to the Food and Agricultural
Code, to read:
   27519.5.  "Shipped egg" means an egg that is produced outside the
State of California and shipped into the state for purposes of resale
or use by a direct user.
  SEC. 3.  Section 27541 of the Food and Agricultural Code is amended
to read:
   27541.  Any person engaged in business in this state as an egg
producer or egg handler, or any out-of-state egg handler or egg
producer selling eggs into California, shall register with the
secretary.  A new registration shall be submitted if any current
information changes.
  SEC. 4.  Section 27551 of the Food and Agricultural Code is amended
to read:
   27551.  The following persons shall pay to the secretary a maximum
fee of five cents ($0.05) for each 30 dozens of eggs sold as
provided below:
   (a) California egg handlers shall pay the fee on all egg sales
from their own production, on eggs purchased or acquired from
California egg producers, and on eggs processed into egg products.
California egg handlers shall not pay a fee on eggs purchased from
out-of-state egg handlers or egg producers.
   (b) California egg producers shall pay the fee on all egg sales to
anyone not registered under this chapter as an egg handler, to
out-of-state purchasers, and to egg breaking plants.
   (c) Out-of-state egg handlers and producers shall report and pay
the fee on egg sales into California sold to a retailer, producer,
handler, or breaking plant.
   (d) Shipments of eggs which are accompanied by a United States
Department of Agriculture certificate of grade and sold to the
federal government or its agencies are exempt from these fees.
   (e) Eggs sold to household consumers on the premises where
produced from a total flock size of 500 hens or less are exempt from
these fees.
   (f) The assessment provided for in this section shall only be paid
once on any particular egg.
  SEC. 5.  Section 27553 of the Food and Agricultural Code is amended
to read:
   27553.  The secretary may, by regulation, prescribe the frequency
of payment of assessments, the procedures for payment, the procedures
for refunds of payment, and penalties for late payment.  However,
the department may triple the assessment for any eggs for which the
required payment has not been made by the established due date.  If a
triple assessment is less than five hundred dollars ($500), the
assessment shall be five hundred dollars ($500).
  SEC. 6.  Section 27680 is added to the Food and Agricultural Code,
to read:
   27680.  If the grade determination and size determination required
by this chapter or performed at a location outside of this state,
the records relating to eggs of any person registered under this
chapter at that location shall be subject to inspection by the
department as the department considers necessary.  The department may
contract with another agency of state government or with a state
department of agriculture or other similar agency where the
out-of-state registrant is domiciled to conduct the inspection.
  SEC. 7.  Section 27681 is added to the Food and Agricultural Code,
to read:
   27681.  A registrant whose out-of-state location is inspected
shall reimburse the department for actual and necessary expenses
incurred during the inspection.  If an out-of-state registrant fails
to pay the expenses before the 11th day on which the registrant
received an invoice from the department, the department may:
   (a) Automatically cancel the person's registration.
   (b) Deny a registration to any person who is connected with a
person whose registration is canceled because of a violation of this
section.
   (c) Issue an order to stop the sale of all eggs shipped into
California from the registrant.
  SEC. 8.  Section 27682 is added to the Food and Agricultural Code,
to read:
   27682.  The actual and necessary expenses of the department for
each inspection of an out-of-state location may not exceed either of
the following:
   (a) The actual and necessary expenses, not to exceed the state's
per diem, for food, lodging, and local transportation of the
inspector and the cost of the least expensive available space
round-trip airfare from Sacramento to the location to be inspected.
   (b) Any contract fees charged to perform the inspection by another
state agency or an agricultural agency in the state where the
registrant is domiciled.
  SEC. 9.  Section 27683 is added to the Food and Agricultural Code,
to read:
   27683.  The department shall attempt to schedule as many
out-of-state inspections as feasible within an area on each
inspection trip.  If more than one registrant is inspected in an area
during an inspection trip, the expenses of the trip shall be divided
proportionately among the registrants based upon the amount of time
spent on each registrant's audit.
  SEC. 10.  Section 27684 is added to the Food and Agricultural Code,
to read:
   27684.  The department shall perform sufficient inspections of the
records of out-of-state registrants to ensure that out-of-state
registrants selling eggs into California pay the appropriate fees as
required by Section 27551.
  SEC. 11.  Section 27685 is added to the Food and Agricultural Code,
to read:
   27685.  Before receiving a registration as required by this
chapter, an applicant whose home office or principal place of
business is outside of this state shall file with the department the
name of an agent in this state who is authorized to receive service
of process in actions by the state or the department in the
enforcement of this chapter.
  SEC. 12.  Section 27686 is added to the Food and Agricultural Code,
to read:
   27686.  All shipped eggs must be transported under refrigeration
in compliance with California statutes and regulations.
  SEC. 13.  Section 27687 is added to the Food and Agricultural Code,
to read:
   27687.  (a) If the department determines that eggs are not in
compliance with this chapter or that they have been shipped without
the handler or producer first securing the required registration and
being current on the payment of the appropriate fees, the department
shall issue and enforce an order to stop the sale of the eggs.
   (b) A person may not sell eggs on which a stop-sale order has been
issued until the department determines that the eggs and the handler
or producer are in compliance with this chapter.  Eggs that are in
compliance with this chapter, but for which the handler or producer
have not secured the required registration and paid the appropriate
fees, may only be sold or moved under the specific direction of the
secretary.
   (c) With respect to eggs that are not in compliance with this
chapter and on which a stop-sale order has been issued, the seller
may submit the eggs for reinspection to an authorized state or county
enforcement officer.  If on reinspection the eggs fail to meet the
specification of the grades with which they are labeled, the seller
must remark or repackage the eggs to meet the specifications for
their actual grades before calling for reinspection.  Repackaged eggs
must be labeled with the original sell by date.
  SEC. 14.  Section 27688 is added to the Food and Agricultural Code,
to read:
   27688.  Each registrant shall submit a report as designated by the
department and remit any fees due on a monthly basis.  The report is
due no later than the 30th day following the month of delivery to
California.  Each registrant shall keep a copy of this report on file
at the registered facility for a period of three years.
  SEC. 14.5.  Section 27688.5 is added to the Food and Agricultural
Code, to read:
   27688.5.  Any out-of-state registrant who fails to promptly submit
required reports or pay required fees is subject to the criminal
penalties specified in this chapter.  A violation of this section is
also subject to a civil or administrative penalty not to exceed five
hundred dollars ($500) per violation.  Each day a violation continues
may be considered a separate violation for purposes of penalty
assessment.  The department may also seek appropriate injunctive
relief.
  SEC. 15.  Section 27689 is added to the Food and Agricultural Code,
to read:
   27689.  The report required by Section 27688 shall give a complete
breakdown of all sales of graded and ungraded eggs into California,
listing the individual plant or person to whom eggs were sold and
indicating whether these eggs were sold on a graded or ungraded
basis.  A check or money order in the amount of the fee as required
by this chapter on all eggs shipped into California on a graded basis
shall accompany the report.
  SEC. 16.  Section 27690 is added to the Food and Agricultural Code,
to read:
   27690.  All brokers registered with California shall itemize in
their reports a true and complete list of all eggs brokered into and
in California.  This list shall include the name and address of all
persons from whom eggs were purchased, to whom they were sold, and
the amount of eggs involved in each transaction.  Furthermore, the
broker shall indicate whether the eggs involved in the transaction
were graded or ungraded.
  SEC. 17.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because in that regard this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
   With respect to other duties imposed by this act, no reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution for costs that may be incurred by a local
agency or school district because a local agency or school district
has the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.