BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 465
                                                                  Page  1


          SENATE THIRD READING
          SB 465 (Correa)
          As Amended  August 19, 2013
          Majority vote 

           SENATE VOTE  :37-0  
           
           AGRICULTURE         7-0         BUSINESS & PROFESSION             
               13-0           
           
           ----------------------------------------------------------------- 
          |Ayes:|Eggman, Olsen, Atkins,    |Ayes:|Bonilla, Jones,           |
          |     |Dahle, Pan, Quirk, Yamada |     |Bocanegra, Campos,        |
          |     |                          |     |Dickinson, Eggman,        |
          |     |                          |     |Gordon, Hagman, Holden,   |
          |     |                          |     |Maienschein, Mullin,      |
          |     |                          |     |Ting, Wilk                |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Revises the definition for "nonfunctional slack fill"  
          prohibited in packaged goods to require that nonfunctional slack  
          fill be substantially less than the allowed capacity, and  
          clarifies a particular exemption to require the actual size of  
          the product be clearly and conspicuously depicted on any side of  
          the exterior packaging, except the bottom.  Specifically,  this  
          bill  :   

          1)Amends the definition of "nonfunctional slack fill" as it  
            relates to:  packaged commodities under the Fair Packaging and  
            Labeling Act (FPLA), food containers under the Federal Food,  
            Drug and Cosmetic Act (FDC Act) and containers under the  
            Sherman Food, Drug and Cosmetic Law (Sherman Law), to specify  
            that the nonfunctional slack fill in the empty space must be  
            substantially less than its capacity for reasons other than  
            any one or more of 15 existing exemptions, as specified.  

          2)Specifies that slack fill in a package is not by itself a  
            violation of FPLA and the Sherman Law, unless it is  
            nonfunctional slack fill.

          3)Specifies that, for purposes of an existing exemption for  
            nonfunctional slack fill under FPLA and the Sherman Law, the  
            dimensions of the product or immediate product container must  








                                                                  SB 465
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            be visible through the exterior packaging or where the actual  
            size of the product or immediate product container is clearly  
            and conspicuously depicted on any side of the exterior  
            packaging, excluding the bottom. 

          4)Makes other technical and clarifying amendments. 

           EXISTING LAW  : 

          1)Establishes certain packaging requirements for containers used  
            for distribution or sale of commodities under FPLA, the FDC  
            Act and the Sherman Law including:  

             a)   Prohibiting a container in which commodities are packed  
               to have a false bottom, false sidewalls, false lid or  
               covering, or to be constructed or filled as to facilitate  
               the perpetration of deception or fraud;  

             b)   Prohibiting a container from being made, formed, or  
               filled as to be misleading, and declares that a container  
               that does not allow a consumer to fully view its contents  
               violates this provision if it contains nonfunctional slack  
               fill; and, 

             c)   Defining "nonfunctional slack fill" as the empty space  
               in a package that is filled to less than its capacity for  
               reasons other than the specified exemptions.

          2)Defines "slack fill" as the difference between the actual  
            capacity of a container and the volume of product contained  
            therein.  

          3)Authorizes any sealer to seize a container in violation of  
            these provisions of law, and provides that by order of the  
            Superior Court the containers seized shall be condemned and  
            destroyed or released upon conditions imposed by the court  
            against their use in violation of the law.  

           FISCAL EFFECT  :  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel.                                   

           COMMENTS  :  This bill is intended to provide manufacturers and  
          retailers with greater clarity and certainty regarding the  
          various requirements for product and food packaging -  








                                                                  SB 465
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          specifically, the prohibited empty space in packages known as  
          "slack fill" and the multiple exemptions to that prohibition  
          referred to as "safe harbors."  Supporters claim that this lack  
          of clarity has led to unnecessary packaging redesigns and  
          nuisance litigation.  

          According to the author, 15 years after the slack fill  
          exemptions became law, companies face renewed and inconsistent  
          enforcement actions in California for their product packaging,  
          even though such packaging meets one of the law's exemptions.   
          The author states the purported reason for the current  
          enforcement efforts is that, despite meeting an exemption, the  
          packaging is nonetheless misleading and thus violates the  
          statute.  Supporters state that this is a clear misreading of  
          the statute, and ignores the purpose of the exemptions placed  
          into law by the California Legislature.  Slack fill violations  
          can result in monetary penalties and can cause manufacturers to  
          spend millions modifying packaging for products sold in  
          California.  Supporters state that this bill fixes this  
          inequitable situation by clarifying the application of the slack  
          fill exemptions already codified in law.

          Opposition argues that the bill would seriously weaken existing  
          law that prohibits the use of unnecessarily large containers to  
          mislead consumers into believing that they are receiving more  
          product than is actually the case.  The opponents contend the  
          bill would entirely eliminate the first two methods of violating  
          current slack fill law and would add an additional burden in  
          establishing the existence of nonfunctional slack fill.


           Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084 


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