BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1138
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          Date of Hearing:   June 18, 2014

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                           Susan Talamantes Eggman, Chair
                    SB 1138 (Padilla) - As Amended:  June 11, 2014

           SENATE VOTE  :   36-0
           
          SUBJECT  :   Fish and shellfish: labeling.

           SUMMARY  :   Requires the label of fish or shellfish that is  
          offered for sale at wholesale or retail to clearly identify the  
          species of fish or shellfish by its common name.  Specifically,  
           this bill  :    

          1)Requires any label of fresh, frozen, or processed fish or  
            shellfish, wild or farm-raised, offered for sale at wholesale  
            or retail to clearly identify the following:

             a)   Species of fish or shellfish by its common name, as  
               specified;

             b)   Whether the fish or shellfish was farm raised or wild  
               caught; and,

             c)   Whether the fish or shellfish was caught domestically or  
               imported. 

          2)Defines the common name, for purposes of this bill, if the  
            common name is not defined by the California Department of  
            Public Health (CDPH) by regulation, as the common name for any  
            seafood species identified in the Seafood List issued by the  
            federal Food and Drug Administration (FDA).

          3)Defines processed, for purposes of this bill, as cooking,  
            baking, heating, drying, mixing, grinding, churning,  
            separating, extracting, cutting, fermenting, eviscerating,  
            preserving, dehydrating, freezing, or otherwise manufacturing,  
            and includes packaging, canning, jarring, or otherwise  
            enclosing food in a container.

          4)States it is unlawful and that it constitutes misbranding for  
            any person to knowingly sell or offer for sale any fish or  
            shellfish that is labeled in violation, as specified.









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          5)States that knowledge of mislabeling shall be presumed if the  
            person fails to provide sufficient product documentation that  
            demonstrates the fish or shellfish was labeled in violation of  
            this section when the person received the fish or shellfish.  
            The presumption established by this section is a presumption  
            affecting the burden of proof.

          6)Requires any retail food facility that offers or sells fresh,  
            frozen, or processed fish or shellfish, wild or farm-raised,  
            shall clearly identify on the menu all of  the following:

             a)   Species of fish or shellfish by its common name, as  
               specified;

             b)   Whether the fish or shellfish was farm raised or wild  
               caught; and,

             c)   Whether the fish or shellfish was caught domestically or  
               imported. 

          7)Defines processed as above in #3.

           EXISTING LAW:  

          1) Establishes the Sherman Food, Drug, and Cosmetic Law (Sherman  
            Act), administered by CDPH, to regulate the contents,  
            packaging, labeling, and advertising of food, drugs, and  
            cosmetics.

          2)States any food misbranded if it's labeling is false or  
            misleading in any particular.  States any food misbranded if  
            it is offered for sale under the name of another food.

          3)States any food for which no standard of identity exists as  
            misbranded unless it bears a label clearly stating the common  
            or usual name of the food.

          4)Requires any label of any retail cut of beef, veal, lamb, or  
            pork held for sale , as specified, to clearly identify the  
            species and the primal cut from which it is derived, and the  
            retail name.  Exempts ground beef, boneless stewing meat,  
            cubed steaks, sausage and soup-bones from this requirement.

          5)Permits CDPH to adopt regulations that name and describe the  
            characteristics of salmon and any other fish or other seafood  








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            it considers appropriate.  Requires CDPH to consult with the  
            Department of Fish and Game (CDFG) and other stakeholders, as  
            specified, and prohibits CDPH from adopting any regulation  
            that conflicts with the common name of any fish designated by  
            CDFG, as specified.

          6)Establishes misdemeanor penalties for violations of the  
            Sherman Act, including the misbranding of food.  Penalties may  
            include up to a year in the county jail and fines of up to  
            $1,000, or up to $10,000 for repeated violations, as  
            specified. 

          7)Permits CDPH, in addition to the misdemeanor penalties, to  
            assess civil penalties for violations of the Sherman Act of up  
            to $1,000 per day.  

          8)Requires the attorney general, any district attorney, or any  
            city attorney to whom CDPH reports any violation of the  
            Sherman Act, to begin appropriate proceedings in the proper  
            court.  Allows CDPH to issue written notice or warning for  
            minor violations, as specified.

           FISCAL EFFECT  :  Unknown.  This bill is keyed fiscal by the  
          Legislative Counsel.

           COMMENTS  :  In 2013, Oceana released a two year study on fish  
          sold for retail in San Francisco, Monterey, and Los Angeles. The  
          study found that 90% of sushi samples were mislabeled in Los  
          Angeles County, 38% of all fish were mislabeled in Northern  
          California, and with 52% of sea food tested being mislabeled,  
          Southern California leads the nation in mislabeled fish.

          Mislabeling defrauds consumers, restaurants and fishermen when a  
          more expensive fish is ordered and then is substituted with a  
          less expensive, less desirable fish.  Restaurants are victims of  
          fraud when fish distributors sell falsely labels fish.  Fraud is  
          unfair to fishermen who fish responsibly and lose profits when  
          fish caught unsustainably are sold in their place.

          Furthermore, according to the author, mislabeling fish can lead  
          to the consumption of seafood that is unhealthy and dangerous.   
          Specific fish can have unhealthy levels of mercury.   
          Additionally, shellfish can be illegally harvested from areas  
          that have been deemed too polluted for commercial fishing.   
          Eating mislabeled fish can lead to potential health risks  








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          especially to vulnerable populations, such as children and  
          pregnant women.

          Under current federal and state law, it is already illegal to  
          mislabel fish or shellfish.  However, recent studies show  
          seafood mislabeling is not strongly enforced.  This bill  
          proposes to address this issue by enacting an explicit  
          requirement that seafood products be accurately labeled with the  
          common name of the fish, rather than rely on the more general  
          existing law requirement that labels not be false or misleading.  
          This bill does add protection for entities that unknowingly  
          sells mislabeled fish, if the entities have documentation to  
          show the product was mislabeled when purchased.

           REGISTERED SUPPORT / OPPOSITION :

           Support 
           
          CALPIRG
          Center for Oceanic Awareness, Research & Education
          Del Mar Seafood's Inc
          Light & Motion Industries
          Marine Life Studies
          Monterey Bay Aquarium
          Monterey Coastkeepers
          Natural Resources Defense Council
          Ocean Conservancy
          Ocean Outfall Group
          Oceana
          Passion Fish Restaurant
          Save the Whales
          Sierra Club
          Taylor's Market
          The Otter Project
          Turtle Island Network
           
            Opposition 
           
          None on file


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










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