California’s $648 million egg industry is – so far – neutral on legislation that would extend the Proposition 2 ban on small cages for egg-laying hens to out-of-state producers. The bill is being championed by the same groups that backed Proposition 2 according to the report in PE.com.

Supporters, reportedly including legislators who opposed Proposition 2, say the bill will help California's egg industry compete with out-of-state producers who, under current law, will not need to comply with the ruling when it takes effect in 2015.

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An Assembly committee analysis of the bill raised concerns that expanding Proposition 2's rules to out-of-state egg producers could violate the interstate commerce clause of the U.S. Constitution meant to prevent states from restricting imports from other states.

California egg producers are forming a new group, the Association of California Egg Farmers, mainly to deal with Proposition 2's implementation.