BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1414
          Author:   Committee on Agriculture
          Amended:  1/28/14 in Senate
          Vote:     27 - Urgency

           
          PRIOR VOTES NOT RELEVANT

           SENATE AGRICULTURE COMMITTEE  :  5-0, 2/18/14
          AYES:  Galgiani, Cannella, Berryhill, Lieu, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Pasteurized in-shell eggs:  labeling

           SOURCE  :     Author


           DIGEST  :    This bill defines "pasteurized in-shell eggs" and  
          includes these eggs in the definition of an "egg handler."  This  
          bill exempts pasteurized in-shell eggs from current labeling  
          requirements for "shell eggs" and instead creates new labeling  
          requirements and sell-by date criteria for pasteurized in-shell  
          eggs.  

           ANALYSIS  :    

          Existing law:

          1. Provides for the regulation of egg and egg products to assure  
             that healthful, wholesome eggs of known quality are sold in  
             California, to facilitate the orderly marketing of shell eggs  
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             in a uniform manner, and to prevent the marketing of  
             deceptive, adulterated, or mislabeled containers of eggs.

          2. Authorizes the Department of Food and Agriculture (DFA) to  
             enforce regulations for shell eggs and egg products produced,  
             shipped, or sold in California.  The Egg Safety and Quality  
             Management Program ensures that eggs sold in California are  
             properly handled, transported, refrigerated, and labeled for  
             quality, origin, grade and size.  Egg handlers are required  
             to register with DFA and pay an assessment not to exceed  
             $0.15 for each 30 dozen eggs sold, with exceptions.  

          3. Provides for the Shell Egg Advisory Committee that advises  
             the Secretary of DFA on all matters pertaining to standards  
             for shell eggs, including quality of shell eggs, sampling,  
             inspection, fees, budget, and components of the Egg Quality  
             Assurance Plan.

          4. Establishes the Sherman Food, Drug, and Cosmetic Law which  
             requires the Department of Public Health (DPH) to regulate  
             the manufacture, production, processing, packing, labeling,  
             sale, and advertising of any food, drug, device, or cosmetic.  
              The Sherman Act also specifies labeling requirements for  
             individual food products and defines the misbranding of food  
             if its label is false or misleading.

          5. Requires a "sell-by" date for shelled eggs to be no greater  
             than 30 days excluding the day of packing.

          6. Establishes the California Retail Food Code which excludes  
             from the definition of a potentially hazardous food a shell  
             egg that is not hard boiled but has been pasteurized to  
             destroy all viable salmonella.

          7. Requires licensed health care facilities, school cafeterias,  
             and ready-to-eat foods prepared at a food facility, with  
             specified exceptions, to substitute pasteurized eggs or  
             pasteurized egg products for raw shell eggs in the  
             preparation of foods such as Caesar salad, hollandaise or  
             béarnaise sauces, mayonnaise, egg nog, ice cream, and  
             egg-fortified beverages that are not thoroughly cooked.

          This bill:


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          1. Defines "pasteurized in-shell eggs" to mean in-shell eggs  
             that have been pasteurized by a method approved by the Food  
             and Drug Administration (FDA) or DFA.  

          2. Adds pasteurized in-shell eggs to the definition of an egg  
             handler.

          3. Excludes pasteurized in-shell eggs from the definition and  
             labeling requirements for "shelled eggs."

          4. Creates new labeling requirements for pasteurized in-shell  
             eggs that allows for a sell-by date not to exceed 75 days  
             from the date of pasteurization, requires identification of  
             the eggs as pasteurized, and requires processors of such eggs  
             to complete an appropriate shelf-stability study that  
             includes public health and safety criteria which shall be  
             made available to DFA or the DPH upon request. 

          5. Specifies that a food is misbranded if its labeling does not  
             conform to the requirements for pasteurized in-shell egg  
             labeling as defined in this bill.

          6. Excludes labeling requirements for pasteurized in-shell eggs  
             that are packaged for interstate commerce to a state or  
             federal agency that requires a different format for the  
             sell-by or best-if-used-by date, and the egg processor  
             utilizes that format.

          7. Requires DFA, in consultation with the Shell Egg Advisory  
             Committee, to establish a plant identification numbering  
             system and assign identification numbers to all pasteurized  
             in-shell egg handling facilities.  

           Background
           
           Salmonella background  .  Salmonella is a bacterium that may be  
          found in uncooked or undercooked foods of animal origin, such as  
          eggs, beef, poultry, and milk.  The Centers of Disease Control  
          and Prevention (CDC) estimate that 42,000 cases of salmonellosis  
          are reported in the United States each year and 400 persons die  
          from acute salmonellosis.  The actual number of total infections  
          may be 29 or more times greater when considering undiagnosed and  
          unreported cases.  To prevent salmonella infection, the CDC  
          recommends cooking poultry, ground beef, and eggs thoroughly as  

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          well as avoiding cross contamination when handling these  
          products.  

           Existing regulations  .  Existing state and federal regulations  
          define "treatment" of eggs to mean a technology or process that  
          achieves at least a five-log destruction of Salmonella  
          Enteritidis (SE) for shell eggs.  Such treated eggs are exempt  
          from specified regulations including transportation, SE  
          prevention measures, and "safe handling instructions" labeling;  
          however, treated eggs are not exempt from specified  
          refrigeration or registration requirements. 

          In accordance with the Egg Products Inspection Act, the FDA  
          criterion for pasteurization is a five-log reduction in  
          salmonella, which is an approved process under the definition of  
          "treatment," above.  Processors must demonstrate the  
          effectiveness of their pasteurization process by obtaining and  
          providing FDA data which show that their process resulted in the  
          required reduction in salmonella count.  Additionally,  
          processors will also be required to demonstrate that product  
          integrity can be ensured after pasteurization.

           USDA Grademark and Certified Pasteurized stamps  .  The United  
          States Department of Agriculture (USDA) Agricultural Marketing  
          Service (AMS) allows for the use of a "Produced From" grademark  
          to officially identify products produced from U.S. Grade AA or  
          Grade A shell eggs "for which there are no U.S. grade standards  
          (e.g. pasteurized shell eggs)." Additionally, the USDA  
          "Certified Pasteurized" stamp may be used to identify  
          pasteurized eggs that have been processed in accordance with  
          established pasteurization processing requirements described  
          above.

           Federal definition of pasteurized eggs  .  According to a final  
          rule published by the FDA in 2009, both FDA and the USDA Food  
          Safety Inspection Service (FSIS) are "evaluating additional  
          measures to improve egg safety, and FSIS intends to issue  
          proposed rules in the near future for egg products plants and  
          egg handlers, including egg handlers who operate in-shell  
          pasteurization treatments".  However, a specific definition and  
          standard of identity for pasteurized in-shell eggs does not  
          currently exist in federal regulation.  This bill provides this  
          definition in California statute to distinguish between shell  
          eggs and pasteurized in-shell eggs sold in this state.

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           Court petition  .  A recent petition for writ of administrative  
          mandate questioned whether pasteurized shell eggs must be  
          labeled with a sell-by date not to exceed 30 days as currently  
          required by law.  The court concluded that it is clear that  
          pasteurized shell eggs fall within the statutory definition of  
          "eggs" in the Food and Agriculture Code; therefore, all in-shell  
          chicken eggs must be labeled accordingly (M.G. Waldbaum Company  
          v. DFA No. 34-2012-80001114.  Sacramento Superior Court, Filed  
          April 17, 2012).

           Sell-by date .  This bill extends the sell-by date for  
          pasteurized in-shell eggs from 30 days to no greater than 75  
          days.  Processors will be required to provide a shelf-stability  
          study verifying that the extended sell-by date meets public  
          health and safety standards.  Although not currently required by  
          law, shelf-stability studies are used by food manufacturers to  
          best determine sell-by dates to avoid deterioration and  
          decomposition of their products in the marketplace.  Any  
          decomposed food would be considered adulterated under existing  
          state and federal law, and the sale of such food constitutes a  
          violation.  

           Prior Legislation
           
          AB 1069 (Assembly Agriculture Committee, Chapter 283, Statutes  
          of 2003), creates a new procedure for regulating out-of-state  
          egg shippers.

          AB 2981 (Assembly Agriculture Committee, Chapter 535, Statutes  
          of 2002), clarifies compliance with federally-required labeling  
          for safe-handling instructions for eggs.

          AB 593 (Cardoza, Chapter 403, Statutes of 1997), improves the  
          quality controls under which fresh eggs are handled,  
          transported, and marketed.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT :   (Verified  3/4/14)

          National Pasteurized Eggs, Inc.


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          JL:d  3/5/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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