CHAPTER 11. FOOD: EGGS OFFERED FOR SALE AND STATE EGG BOARD
IC 16-42-11
Chapter 11. Food: Eggs Offered for Sale and State Egg Board
IC 16-42-11-1
Repealed
(Repealed by P.L.28-2009, SEC.16.)
IC 16-42-11-1.1
Definitions
Sec. 1.1. The following definitions apply throughout this chapter:
(1) "Case" means thirty (30) dozen.
(2) "Eggs" means shell eggs represented as fresh or treated.
(3) "Farmers market" means a common facility where two (2)or more farmers or growers gather on a regular basis to sellfarm products, which they produce, directly to the consumer.
(4) "Fresh eggs" means consumer grades of eggs as defined bythe standards of quality and weights as set forth by the state eggboard.
(5) "Person" means any individual, partnership, association,business trust, corporation, or any organized group of persons,regardless of whether the group is incorporated.
(6) "Retailer" means any person who sells eggs for humanconsumption and not for resale.
(7) "Treated eggs" means eggs that have been treated by aprocess such as pasteurization, irradiation, or other method oftreatment that changes the interior quality of an egg in such amanner that United States Department of Agriculture qualitystandards do not apply.
(8) "Wholesaler" means any person engaged in buying eggs forhuman consumption for resale to retailers, hotels, restaurants,hospitals, nursing homes, schools, state or federal institutions,operators of multiple unit retail outlets engaged in thedistribution of eggs to their own retail units, or producers whosell or deliver eggs to retailers, hotels, restaurants, hospitals,nursing homes, schools, or state or federal institutions.
As added by P.L.28-2009, SEC.4.
IC 16-42-11-2
Repealed
(Repealed by P.L.28-2009, SEC.16.)
IC 16-42-11-3
Repealed
(Repealed by P.L.28-2009, SEC.16.)
IC 16-42-11-4
Establishment of board; membership; term; oath; officers;compensation; business office
Sec. 4. (a) The state egg board is established. The board consistsof nine (9) members appointed by the governor as follows: (1) One (1) member from recommendations submitted by theIndiana State Poultry Association, Inc.
(2) One (1) member from recommendations submitted by theIndiana Farm Bureau, Inc.
(3) One (1) member from recommendations submitted by theIndiana Retail Grocery and Convenience Store Association, Inc.
(4) One (1) member from recommendations submitted by theIndiana Retail Council, Inc.
(5) One (1) member from recommendations submitted by theEgg Council of the Indiana State Poultry Association, Inc.
(6) One (1) member from recommendations submitted by thedean of the college of agriculture of Purdue University.
(7) One (1) member at large to represent the interests of theconsumer.
(8) One (1) member to represent those engaged in thewholesaling of eggs through the Federal-State Egg GradingProgram in Indiana.
(9) One (1) member to represent the interests of the food serviceindustry.
(b) All appointments are for terms of three (3) years. However, anappointment to fill an unexpired term shall be made by the governorfor the remainder of that term only.
(c) The recommendations provided for in this section shall besubmitted to the governor within ten (10) days before an appointmentis to be made to the state egg board. All appointments by thegovernor under this chapter shall be made within twenty (20) daysafter submission to the governor of the recommendations forappointments. If the recommendations are not submitted to thegovernor within the specified time, the governor shall make theappointment without the recommendations. If the governor does notmake an appointment to fill an expired term for a member describedin subsection (a)(1), (a)(2), (a)(3), (a)(4), (a)(5), or (a)(6) withintwenty (20) days after receiving the recommendation, the currentmembers of the state egg board may select an individual from thenames submitted by an organization under subsection (a) to fill theposition represented by that organization on the state egg board. Theindividual shall serve a three (3) year term beginning with the nextofficial board meeting following the twenty (20) day deadline.
(d) The members of the state egg board shall, before enteringupon their duties, take and subscribe to the oath of office providedfor other state officers. The oath of office shall be filed in the officeof the secretary of state. The secretary of state shall administer theoath as a part of the duties of the office of secretary of state.
(e) The state egg board shall elect from its own membership thefollowing officers:
(1) President.
(2) A vice president who serves in the president's absence ordisability.
(3) Recording secretary.
The officers serve for one (1) year or until their successors are
elected and qualified.
(f) Each member of the state egg board who is not a stateemployee is entitled to the minimum salary per diem provided byIC 4-10-11-2.1(b). The member is also entitled to reimbursement fortraveling expenses as provided under IC 4-13-1-4 and other expensesactually incurred in connection with the member's duties as providedin the state policies and procedures established by the Indianadepartment of administration and approved by the budget agency.
(g) The state egg board shall provide a suitable office, equipment,supplies, and facilities for the conduct of the board's business.
As added by P.L.2-1993, SEC.25. Amended by P.L.40-1993, SEC.55;P.L.28-2009, SEC.5.
IC 16-42-11-5
Powers and duties
Sec. 5. (a) The state egg board shall administer, enforce, and carryout this chapter.
(b) The state egg board shall do the following:
(1) Formulate and determine standards of quality and weightsof eggs sold or offered for sale.
(2) Regulate the sale of and commerce in eggs sold or offeredfor sale at retail or wholesale and regulate the sale of eggs bywholesalers and retailers.
(3) Formulate and publish definitions, names, and grades ofeggs and specifications for the care and handling of eggs thatmay be offered for sale at retail and wholesale under the termsof this chapter and for the care and handling of eggs that may beoffered for sale by wholesalers and retailers as eggs fit forhuman consumption.
(4) Provide for and issue permits to wholesalers or retailers ofeggs and provide for the registration of wholesalers and retailersof eggs.
(5) Adopt rules necessary for or incident to carrying out thischapter.
(6) Investigate and report violations of this chapter andviolations of the rules of the state egg board to the properauthorities for prosecution.
(7) Revoke any registration or permit for a violation of thischapter or of the rules adopted by the state egg board.
(8) Hold four (4) regular meetings at quarterly intervals at thetime and place the state egg board designates. The president ofthe state egg board may call special meetings of the state eggboard whenever in the president's judgment it becomesnecessary. The president shall call a special meeting of the stateegg board upon written request of a majority of the members ofthe state egg board.
(9) The state egg board shall publish or cause to be published anannual report of the board's work. In addition, the state eggboard may periodically publish or cause to be published anddistributed other information concerning eggs.As added by P.L.2-1993, SEC.25. Amended by P.L.28-2009, SEC.6.
IC 16-42-11-6
Substandard eggs; prohibited sale
Sec. 6. A person may not sell, offer for sale, or advertise for saleat retail or wholesale eggs that do not meet the standards of qualityand weight set forth by the state egg board.
As added by P.L.2-1993, SEC.25. Amended by P.L.28-2009, SEC.7.
IC 16-42-11-7
Proof of delivery
Sec. 7. (a) Every person selling eggs to a retailer shall furnishproof of delivery at the time of delivery showing:
(1) the date;
(2) the grades; and
(3) the quantity of the eggs;
according to the standards prescribed by the state egg board.
(b) A copy of the proof of delivery shall be kept on file byretailers at their respective places of business for thirty (30) days andat all reasonable times shall be available and open for inspection byaccredited inspectors or representatives of the state egg board.
As added by P.L.2-1993, SEC.25. Amended by P.L.28-2009, SEC.8.
IC 16-42-11-8
Farmers' and egg producers' exemption
Sec. 8. Farmers and other bona fide egg producers who sell anddeliver, on the premises where produced, eggs produced by their ownflocks on their own premises are exempt from this chapter.
As added by P.L.2-1993, SEC.25.
IC 16-42-11-9
Farmer's or egg producer's wholesaler or retailer registration
Sec. 9. A farmer or bona fide egg producer may apply forregistration as a wholesaler or retailer under this chapter and may,upon application, after being registered receive a permit to sell eggs.
As added by P.L.2-1993, SEC.25.
IC 16-42-11-9.5
Farmers market retail permit
Sec. 9.5. A farmer or bona fide egg producer who markets directlyto the consumer at a location that is not the farmer's or producer'sown premises and is recognized as a farmers market may be requiredto have a farmers market retail permit issued by the state egg board.The state egg board shall establish requirements and procedures forobtaining a farmers market retail permit by rule under IC 4-22-2.
As added by P.L.28-2009, SEC.9.
IC 16-42-11-10
Application of section; registration statement; fees; wholesalerreport permit Sec. 10. (a) Except as provided in section 10.2(d) of this chapter,this section applies to:
(1) registrations and permits issued by; and
(2) fees due and payable to;
the state egg board before July 1, 2010.
(b) Every wholesaler or retailer selling eggs shall, before July 1of each year, file with the state egg board a statement setting forththe fact that the wholesaler or retailer desires to sell eggs. Thestatement shall designate the name of the wholesaler or retailerdesiring to register the location of the wholesaler's or retailer'sprincipal office and any location where eggs are stored or distributedif that location is different from the principal office. The state eggboard shall furnish blank forms for registration. The state egg boardshall register the facts set forth in the statement in a permanentrecord. The state egg board shall furnish to each registeredwholesaler a registration number upon payment of the registrationfee and deposit.
(c) The state egg board shall require and collect from eachwholesaler at the time of registration a fee based upon the averagenumber of cases of eggs sold to retailers, hotels, restaurants,hospitals, nursing homes, schools, or to state or federal institutionseach week during the preceding calendar year, as follows:
Average Number
of Cases Sold Registration Fee
0 - 100 $ 30
101 - 250 $ 60
251 - 500 $ 90
501 - 1,000 $ 120
1,001 and over $ 150
(d) The state egg board shall require and collect from eachwholesaler at the time of registration a deposit equal to the productobtained by using a multiplier of six cents ($0.06) and a multiplicandthat is the number of cases of eggs sold in that quarter of theimmediately preceding five (5) calendar quarters in which the highestnumber of cases of eggs were sold by the wholesaler to retailers,hotels, restaurants, hospitals, nursing homes, schools, or to state orfederal institutions. However, if the wholesaler does not have a five(5) quarter history, the state egg board shall fix the deposit at areasonable amount.
(e) The state egg board shall require and collect from each retailstore or unit of retailing a fee based upon the average number ofcases of eggs sold each week during the preceding calendar year, asfollows:
Average Number Registration Fee
of Cases Sold
1-5 $20
more than 5 $25
(f) All registered wholesalers must make application to the stateegg board for a permit to report the case volume of eggs sold inIndiana and submit a fee of six cents ($0.06) for each thirty (30)
dozen eggs or a fraction of that number of the volume reported. Inapplying for a permit, the applicant must agree to do the following:
(1) Keep records the state egg board considers necessary toindicate accurately the case volume of eggs sold in Indiana.
(2) Grant the state egg board permission to examine thoserecords and verify the statement of the number and grade ofeggs reported.
(3) Report under oath to the state egg board, on forms furnishedby the state egg board, the number of eggs reported during theperiod covered.
As added by P.L.2-1993, SEC.25. Amended by P.L.183-1993, SEC.1;P.L.28-2009, SEC.10.
IC 16-42-11-10.2
Application of section; permit and registration requirements; fees
Sec. 10.2. (a) Except as provided in subsection (d), this sectionapplies to:
(1) registrations and permits issued by; and
(2) fees due and payable to;
the state egg board after June 30, 2010.
(b) The state egg board may establish requirements for issuing apermit or registration under this chapter by rule under IC 4-22-2.
(c) The state egg board may establish fees necessary to carry outthis chapter by rule under IC 4-22-2.
(d) If a rule is not in effect by July 1, 2010, the fees andrequirements for obtaining a registration or permit under section 10of this chapter apply until the date the rule takes effect.
As added by P.L.28-2009, SEC.11.
IC 16-42-11-10.4
Permits; issuance; revocation; fees
Sec. 10.4. The state egg board may grant a permit if the boarddetermines that the action will lead to efficient enforcement of thischapter. The state egg board may revoke a permit at any time if itappears to the state egg board that a wholesaler is not complyingwith the terms of the agreement entered into at the time of theissuance. The report of eggs is due and the fees are payable quarterlyon the last day of the month following the end of the quarter. If:
(1) the report is not filed and the fee paid by the tenth dayfollowing the due date;
(2) the report is false; or
(3) the requirements of this chapter have not been compliedwith;
the state egg board may revoke the permit. If the fee is unpaid afterthe ten (10) day grace period, a penalty of the greater of twentydollars ($20) or ten percent (10%) of the amount due in addition tothe amount due shall be assessed. If the state egg board determinesthat an account review is necessary, out-of-state permit holders shallreimburse the state egg board for expenses incurred to conduct theaccount review.As added by P.L.28-2009, SEC.12.
IC 16-42-11-11
Prohibited sales or distribution
Sec. 11. (a) A person may not sell as a wholesaler to a retailer,hotel, restaurant, hospital, nursing home, school, or state or federalinstitution eggs for human consumption that are not subject to beingreported as provided in this chapter.
(b) A person operating multiple retail outlets may not distributeor deliver to retail units eggs for human consumption that are notsubject to being reported as provided for in this chapter. A retailstore or retail unit may not receive from a wholesaler eggs for humanconsumption that are not subject to being reported as provided for inthis chapter.
As added by P.L.2-1993, SEC.25. Amended by P.L.28-2009, SEC.13.
IC 16-42-11-12
Purdue University; inspections
Sec. 12. The dean of the college of agriculture of PurdueUniversity may, subject to the approval of the state egg board,employ an executive administrator, inspectors, clerks, and otherassistants necessary to carry out this chapter under the direction andsupervision of the state egg board. The inspectors shall inspect andexamine eggs sold, offered for sale, or exposed for sale and shall alsoinspect and examine eggs sold by wholesalers and retailers as fit forhuman consumption under this chapter at times and places and in themanner the state egg board directs.
As added by P.L.2-1993, SEC.25. Amended by P.L.40-1993, SEC.56;P.L.28-2009, SEC.14.
IC 16-42-11-13
Fiscal management
Sec. 13. All money received by the state egg board shall be paidto the treasurer of Purdue University who shall, under the directionof the state egg board, expend the money on proper vouchers to meetall necessary expenditures for carrying out this chapter and for anyother expenses of Purdue University agricultural programsauthorized by law and in support of the purposes of this chapter. Thedean of agriculture shall submit to the state egg board an annualreport showing the receipts and expenditures of all money receivedand expended by the director under this chapter. The report shall bemade a part of the annual report of the state egg board.
As added by P.L.2-1993, SEC.25. Amended by P.L.40-1993, SEC.57.
IC 16-42-11-14
Violations
Sec. 14. A person who violates this chapter commits a Class Cinfraction.
As added by P.L.2-1993, SEC.25.
IC 16-42-11-15
Immunity from liability
Sec. 15. The:
(1) members of the state egg board;
(2) dean of the college of agriculture of Purdue University; and
(3) employees of the state egg board;
are not liable in their individual capacity, except to the state, for anact done or omitted in connection with the performance of theirrespective duties under this chapter.
As added by P.L.2-1993, SEC.25. Amended by P.L.40-1993, SEC.58;P.L.28-2009, SEC.15.