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 Page 2 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 Page 3 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 FN: 0001791