BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1414
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1414 (Agriculture Committee)
          As Amended  March 10, 2014
          2/3 vote.  Urgency
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(May 24, 2013)  |SENATE: |31-0 |(March 13,     |
          |           |     |                |        |     |2014)          |
           ----------------------------------------------------------------- 
               (vote not relevant)

          Original Committee Reference:    A. & A.R. 
            
          SUMMARY  :  Creates a new definition for "pasteurized in-shell  
          eggs" and includes these eggs in the definition of an "egg  
          handler;" 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.  Contains an urgency clause, allowing this bill  
          to take effect immediately upon enactment.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Define "pasteurized in-shell eggs" to mean in-shell eggs that  
            have been pasteurized by a method approved by the Food and  
            Drug Administration (FDA), the California Department of Food  
            and Agriculture (CDFA) or the California Department of Public  
            Health (CDPH).

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

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

          4)Create 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  
            CDFA or CDPH upon request. 

          5)Specify that a food is misbranded if its labeling does not  








                                                                  AB 1414
                                                                  Page  2

            conform to the requirements for pasteurized in-shell egg  
            labeling as defined in this bill.

          6)Exclude 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)Require CDFA, 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. 

           EXISTING LAW  does not identify a difference between shell eggs  
          and pasteurized in-shell eggs and specified labeling  
          requirements, specifically a 30 day sell-by date from packaging.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.
           COMMENTS  :  Current processors of pasteurized in-shell eggs are  
          not selling them in California due to the 30 day sell-by date  
          requirement for shelled eggs.  By pasteurizing the egg in-shell  
          it provides a safer, longer shelf life product, and due to the  
          added expense of the processing, there needs to be a greater  
          time frame for retail sale and the ability for commercial users  
          to be able to store and use the eggs.

          The United States Department of Agriculture (USDA) Agricultural  
          Marketing Service (AMS) allows for the use of an identification  
          symbol to officially identify products produced from U.S. Grade  
          AA or Grade A shell eggs that are processed into pasteurized  
          in-shell eggs.  Additionally, the USDA "Certified Pasteurized"  
          symbol may be used to identify pasteurized eggs that have been  
          processed in accordance with USDA's established pasteurization  
          processing requirements. 

          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  








                                                                  AB 1414
                                                                  Page  3

          adulterated under existing state and federal law, and the sale  
          of such food constitutes a violation.  

          This bill was substantially amended in the Senate and the  
          Assembly-approved version of this bill deleted.  This bill, as  
          amended in the Senate, is inconsistent with Assembly actions and  
          the provisions of this bill, as amended in the Senate, have not  
          been heard in an Assembly policy committee.
           

          Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084 


                                                               FN: 0003060