BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1414| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 1414 Page 2 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: CONTINUED AB 1414 Page 3 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 CONTINUED AB 1414 Page 4 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. CONTINUED AB 1414 Page 5 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. CONTINUED AB 1414 Page 6 JL:d 3/5/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED