BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 1138 (Padilla) - Fish and shellfish: labeling.
          
          Amended: As introduced          Policy Vote: Health 8-0
          Urgency: No                     Mandate: Yes
          Hearing Date: May 23, 2014      Consultant: Brendan McCarthy
          
          SUSPENSE FILE.
          
          
          Bill Summary: SB 1138 would require the label of fish or  
          shellfish offered for sale to clearly identify the species by  
          its common name.

          Fiscal Impact: 
              Potential one-time costs up to $150,000 (General Fund) to  
              amend existing regulations. Under current regulation, the  
              Department of Public Health can authorize a local  
              environmental health officer to enforce certain portions of  
              the Sherman Act. This bill's provisions would be part of the  
              Sherman Act, but would not be included in the existing  
              regulations. If local environmental health officers wished  
              to enforce the provisions of this bill at retail food  
              facilities, the existing regulations would need to be  
              amended. 

              One-time costs of about $170,000 to purchase laboratory  
              equipment to test fish and shellfish samples for accurate  
              labeling by the Department of Public Health (General Fund).

              Ongoing costs of about $600,000 per year for enforcement of  
              the bill's requirement by the Department of Public Health  
              (General Fund). The Department anticipates that it will  
              perform about 650 spot inspections of retailers to verify  
              compliance. If the inspection raised issues about the  
              correct labeling of fish or shellfish, the Department would  
              then perform DNA tests on a limited number of samples. In  
              addition, the Department anticipates responding to about 50  
              complaints from the public per year. To the extent that  
              local environmental health officers opt to enforce this bill  
              (and are authorized to do so by the Department), the need  
              for the Department to conduct spot checks at retail food  
              facilities would be reduced, reducing the Department's  








          SB 1138 (Padilla)
          Page 1


              enforcement costs.

          Background: Under the state Sherman Food, Drug, and Cosmetic  
          Law, the Department of Public Health is required to regulate the  
          contents, packaging, labeling and advertising of foods, drugs,  
          and cosmetics. The Department enforces these requirements at  
          food processors and distributors. The Sherman Act deems a food  
          product misbranded if it is offered for sale under the name of  
          another food. The Department is authorized to adopt regulations  
          specifying the name and characteristics of seafood for labeling  
          purposes. The Department is authorized to assess civil penalties  
          for violations of the Sherman Act or to seek misdemeanor  
          penalties through the criminal justice system.

          Retail food facilities are regulated by local environmental  
          health officers under the California Retail Food Code. In  
          addition, upon request of the local environmental health  
          officer, the Department can authorize the local agency to  
          enforce certain provisions of the Sherman Act.

          Proposed Law: SB 1138 would require the label of fish or  
          shellfish offered for sale to clearly identify the species by  
          its common name.

          The bill would declare it misbranding to knowingly sell any fish  
          or shellfish that is mislabeled under the bill.

          Related Legislation: 
              SB 1000 (Monning) would require certain sugar-sweetened  
              beverages to include a safety warning on the packaging  
              and/or at the point of sale. That bill will be heard in this  
              committee.
              SB 1381 (Evans) would require the labeling of any  
              genetically modified foods sold in the state. That bill is  
              in the Judiciary Committee.
              SB 1486 (Lieu, 2012) would have required certain retail  
              food facilities to provide specified information on seafood  
              offered for sale. That bill was held in the Senate Rules  
              Committee.
              SB 88 (Huffman, 2011) would have required genetically  
              engineered fish or fish products to be labelled. That bill  
              was held in the Assembly Appropriations Committee.

          Staff Comments: The only costs that may be incurred by a local  








          SB 1138 (Padilla)
          Page 2


          agency under the bill relate to crimes and misdemeanors. Under  
          the California Constitution, such costs are not reimbursable by  
          the state.