2005-2006 Bill 3241: Provisions for Labeling and Marketing of Eggs - South Carolina Legislature

1 South Carolina General Assembly 2 116th Session, 2005-2006 3 4 H. 3241 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Rep. Witherspoon 10 Document Path: l:\council\bills\bbm\10523sd05.doc 11 12 Introduced in the House on January 11, 2005 13 Currently residing in the House Committee on Agriculture, Natural Resources and Environmental 14 Affairs 15 16 Summary: Provisions for labeling and marketing of eggs 17 18 19 HISTORY OF LEGISLATIVE ACTIONS 20 21 Date Body Action Description with journal page number 22 1/11/2005 House Introduced and read first time HJ-141 23 1/11/2005 House Referred to Committee on Agriculture, Natural Resources and Environmental 24 Affairs HJ-141 25 26 27 VERSIONS OF THIS BILL 28 29 1/11/2005 30 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND ARTICLE 3, CHAPTER 39, TITLE 39 OF THE 12 CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING 13 TO THE LABELING AND MARKETING OF EGGS, SO AS TO 14 FURTHER PROVIDE FOR THE REGULATION AND 15 PROVISIONS OF LAW GOVERNING THE LABELING AND 16 MARKETING OF EGGS, AND TO PROVIDE PENALTIES 17 FOR CERTAIN VIOLATIONS. 18 19 Be it enacted by the General Assembly of the State of South 20 Carolina: 21 22 SECTION 1. Article 3, Chapter 39, Title 39 of the 1976 Code is 23 amended to read: 24 25 “Article 3 26 27 Provisions for the Labeling and Marketing of Eggs 28 29 Section 39-39-110. As used in this chapter: 30 (1) ‘Ambient temperature’ means the atmospheric temperature 31 surrounding or encircling shell eggs. 32 (2) ‘Candle’ means to determine the interior quality of eggs 33 based on the use of a candling light as defined in the federal 34 standards. 35 (3) ‘Consumer’ means any person using eggs for food and 36 shall include restaurants, hotels, cafeterias, hospitals, state 37 institutions, and any other establishment serving food to be 38 consumed or produced on the premises but shall not include the 39 armed forces or any other federal agency or institution. 40 (1)(4) ‘Eggs’ means the unprocessed shell eggs of a 41 domesticated chicken, turkey, duck, goose or guinea hen while 42 they are still in the shell.

1 [3241] 1 1 (5) ‘Label’ means the display of any printed, graphic, or other 2 method of identification on the shipping container or on the 3 immediate container, including but not limited to, an individual 4 consumer package of eggs. 5 (2)(6) ‘South Carolina eggs’ means eggs produced in this State. 6 (3)(7) ‘Producer’ means a person selling no eggs other than 7 those eggs produced by his own flock. engaged in the business of 8 producing and marketing eggs laid on his farm. 9 (4)(8) ‘Retailer’ means a person, firm, or corporation selling or 10 offering for sale eggs to consumers in this State. 11 (5)(9) ‘Distributor’ means a person offering for sale or 12 distributing eggs in this State to a retailer, cafe, restaurant, or other 13 establishment serving eggs to the public or to an institutional user. 14 It includes a person distributing eggs to his own retail outlet but 15 does not include a person engaged to haul or transport eggs nor a 16 producer. 17 (10) ‘Wholesaler’ means a person engaged in the business of 18 buying or receiving eggs from producers or other persons on his 19 own account and selling or transferring eggs to other wholesalers, 20 processors, retailers, or other persons and consumers. A 21 wholesaler further means a person engaged in producing eggs from 22 his own flock and disposing of any portion of this production on a 23 graded basis. 24 (11) ‘Person’ means any individual, partnership, association, 25 business trust, corporation, or organized group of persons, whether 26 incorporated or not. 27 (12) ‘Sell’ means to offer for sale, expose for sale, have in 28 possession for sale, exchange, barter or trade. 29 30 Section 39-39-120. Wholesalers handling eggs must be licensed 31 by the Department of Agriculture. All wholesalers, distributors, 32 commission merchants, brokers, and dealers who desire to sell or 33 offer eggs for sale in this state shall first file for a license with the 34 Commissioner of Agriculture, upon forms furnished by the 35 Commissioner, stating the name of the firm or person desiring to 36 offer eggs for sale either by themselves or by their agent, together 37 with the address of the firm or person and the type or kind of eggs 38 to be offered for sale. The license must be issued at no cost and in 39 a form prescribed by regulations promulgated by the department. 40 41 Section 39 - 39 - 121. (A) A person may not engage in business as 42 a wholesaler or as a distributor without first obtaining a license 43 from the commissioner. A license issued under this article must

1 [3241] 2 1 not be suspended or revoked except for health and sanitation 2 reasons or for violations of this article and until the licensee to be 3 affected is provided with reasonable notice and an opportunity for 4 hearing, pursuant to the South Carolina Administrative Procedures 5 Act. Licenses issued pursuant to this article are valid until 6 suspended or revoked and are not transferable with respect to 7 persons or location. There is no fee for this license. 8 (B) Shell egg handlers registered under the United States 9 Department of Agriculture Egg Surveillance Inspection Program 10 are exempt from the provisions of subsection (A) of this section. 11 12 Section 39 - 39 - 122. Wholesalers, distributors, and retailers shall 13 maintain records and invoices of their egg purchases for a period 14 of at least ninety days. These records and invoices must show the 15 person or firm to whom the sale was made, the address of the 16 person or firm, and the kind and quantity of eggs involved in the 17 sale, provided that nothing contained in this section may be 18 construed to require the filing of a copy of the invoice of a sale to a 19 consumer. Furthermore, the commissioner or his authorized 20 representative has the authority to enter during regular business 21 hours the place of any producer, wholesaler, retailer, retail 22 establishment, institution, institutional user, warehouse, cold 23 storage house, or other storage places, trucks or carriers where 24 eggs are stored and inspected. 25 26 Section 39-39-130. The South Carolina standards, grades, and 27 weight classes for shell eggs are the same as the United States 28 standards, grades, and weight classes for shell eggs and their 29 supplements and revisions as published by the United States 30 Department of Agriculture, except as modified or rejected by 31 regulations promulgated by the Commissioner of Agriculture. 32 33 Section 39 - 39 - 135. (A) All shell egg producers shall refrigerate 34 eggs upon gathering the eggs. Eggs must be graded and packed 35 within a reasonable period of time from gathering. 36 (B) After washing, processing, and packaging, eggs must be 37 transported, stored, and displayed at ambient temperatures not to 38 exceed forty - five degrees Fahrenheit until sold at retail or used by 39 a commercial establishment or public institution. 40 41 Section 39-39-140. (A) In order to protect the producer, the 42 distributor, and the consumer, all eggs sold in this State must be 43 labeled so as to designate their quality, size, and weight class.

1 [3241] 3 1 (B) The department shall establish standards for the grading, 2 classification, and marking of shell eggs bought and sold by any 3 person in this State. 4 (C) The standards, on the date of the sale to the consumer, shall 5 conform to the minimum standards promulgated by the United 6 States Department of Agriculture as defined in the ‘United States 7 Standards, Grades and Weight Classes for Shell Eggs’, authorized 8 pursuant to 7 U.S.C. Section 1624. 9 (D) The standards of quality of the United States Department of 10 Agriculture are adopted as the standards of quality for the 11 enforcement of this article. An egg described by the United States 12 Department of Agriculture as being inedible is deemed inedible 13 pursuant to the provisions of this article. 14 (E) At the time of packing and candling of each case of eggs, 15 the producer or dealer shall affix a label not less than two inches 16 by four inc hes or not less than eight square inches on one end of 17 each case. On this label must be legibly printed or stamped, in 18 letters not less than one - fourth of an inch in size, the date when the 19 eggs were packed and candled or the expiration date, which may 20 not exceed forty - five days from the date packed; the size and grade 21 of the eggs; and either the name and address of the packer or the 22 USDA assigned plant number or a state approved plant 23 identification code. The name of the state of origin may be given. 24 When eggs are sold in cartons, the cartons must show the date 25 packed or the expiration date, which may not exceed forty - five 26 days from the date packed, and the grade and size, together with 27 either the name and address of the packer or the USDA assigned 28 plant number or a state approved plant identification code. The 29 state of origin also may be given. 30 (F) Abbreviations of any words in the classification or in 31 designating the grade and size are not permitted. The information 32 pertaining to the grade and size must be shown in legible letters 33 not less than one - fourth of an inch in size. The information 34 pertaining to the name and address of the packer or the USDA 35 assigned plant number or a state approved plant identification code 36 and the date packed or expiration date must be legibly given. All 37 wording on egg cases and egg cartons must be in English and must 38 be approved by the Department of Agriculture before using. 39 (G) W ords or phrases tending to obscure or nullify the proper 40 classification of eggs are not permitted. Each word of the 41 classification, including the name of the state of origin, must 42 appear in the same size type and color in any printed 43 advertisement. Abbreviations of any word in the classification or

1 [3241] 4 1 in designating the size and grade to which eggs belong are not 2 permitted. Every person advertising eggs for sale, at retail or 3 wholesale, in newspapers, by window displays, or otherwise shall 4 set forth in the advertisement the classification as to size and grade 5 of the eggs offered for sale. The classification must be set forth in 6 letters equal in size to those advertising the eggs for sale. 7 8 Section 39 - 39 - 141. (A) All eggs offered for sale at retail in 9 open cases, boxes, or other containers from which eggs are sold in 10 bulk to consumers must be properly classified in accordance with 11 this subsection. A heavy cardboard or placard, not less than eight 12 by el even inches, must be conspicuously displayed at all times on 13 or over each receptacle containing eggs offered for sale, setting 14 forth in letters not less than one inch in height, plainly and legibly, 15 the classification as to the quality, weight, and the expiration date. 16 (B) The name of the state of origin of eggs may appear on the 17 placard. 18 (C) The placard is not required when eggs are packed in 19 properly labeled cartons. The eggs are required to come up to the 20 standard as noted on the placard. 21 (D) R estaurants, hotels, or other eating places shall display a 22 conspicuously displayed placard at all times on or over each 23 receptacle containing eggs to be used in food preparation. 24 25 Section 39-39-150. It is unlawful to: 26 (1) offer eggs for sale at retail in open cases, boxes, or other 27 containers from which eggs are sold in bulk to consumers and to 28 fail to display conspicuously on the case, box, or other container a 29 plainly written designation showing the correct grade and weight 30 class to which the eggs conform. The designation must be of the 31 kind and in the manner required by regulations of the Department 32 of Agriculture; 33 (2) use the word ‘nulaid’, ‘country’, ‘hennery’, ‘day-old’, 34 ‘select’, ‘selected’, ‘certified’, ‘best’, ‘nearby’, ‘fresh-laid’, or a 35 similar descriptive term which the Commissioner of Agriculture, 36 by regulation, prohibits in connection with the advertising or 37 selling of eggs; 38 (3) use the words ‘South Carolina’ in connection with the 39 advertisement and sale of eggs not produced in this State; 40 (4) use the word ‘fresh’ in connection with the advertisement 41 and sale of eggs not produced in this State unless those eggs meet 42 or exceed the quality standard designated ‘Grade A’;

1 [3241] 5 1 (5) offer eggs for sale that are not being properly stored in a 2 refrigerated state at the temperature specified in Section 3 39 - 39 - 135. 4 5 Section 39-39-160. The Commissioner of Agriculture is charged 6 with the enforcement of this chapter and is authorized to 7 promulgate regulations necessary to carry out its provisions and 8 purposes. 9 10 Section 39-39-170. The following are exempt from this chapter: 11 (1) persons who buy or sell eggs to be used exclusively for 12 hatching purposes; 13 (2) shipments of eggs in interstate commerce; 14 (3) persons who sell eggs at a roadside stand near the farm on 15 which the eggs were produced. 16 17 Section 39-39-180. (A) A civil action may be brought by the 18 Commissioner of Agriculture in a court of competent jurisdiction 19 to recover a civil penalty of not less than: 20 (1) one hundred nor more than two hundred dollars for a 21 first violation; 22 (2) two hundred fifty nor more than five hundred dollars for 23 a second violation within two years from the date of the first 24 violation; 25 (3) one thousand nor more than five thousand dollars for a 26 third violation within two years of the first violation. 27 (B) The commissioner or his designee may conduct an 28 administrative hearing and, upon notice and an opportunity to be 29 heard, may assess a civil penalty of not less than: 30 (1) one hundred nor more than two hundred dollars for a 31 first violation; 32 (2) two hundred fifty nor more than five hundred dollars for 33 a second violation within two years from the date of the first 34 violation; 35 (3) one thousand nor more than five thousand dollars for a 36 third violation within two years of the first violation. 37 (C) A person violating this chapter, upon conviction, is guilty 38 of a misdemeanor and, upon conviction, must be fined not less 39 than two hundred nor more than five hundred dollars or 40 imprisoned not more than ninety days, or both, in the discretion of 41 the court.” 42

1 [3241] 6 1 SECTION 2. This act takes effect upon approval by the 2 Governor. 3 ----XX---- 4

1 [3241] 7