BILL ANALYSIS Ó
SB 1138
Page 1
Date of Hearing: July 2, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1138 (Padilla) - As Amended: June 24, 2014
Policy Committee:
AgricultureVote:7-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill establishes labeling requirements for the sale of fish
and shellfish with respect to common species name, whether the
fish or shellfish was farm raised or wild, and whether the fish
or shellfish was caught domestically or imported. Specifically,
this bill:
1)Requires the label of any fresh, frozen, or processed fish or
shellfish offered for sale at wholesale or retail to clearly
identify the species of fish or shellfish by its common name,
whether the fish or shellfish was farm raised or wild, and
whether the fish or shellfish was caught domestically or
imported. Knowingly selling fish or shellfish in violation of
the labeling provision is deemed to constitute misbranding.
2)Requires a retail food facility to identify the species of
fish or shellfish it sells or offers for sale by its common
name, and prohibits a retail food facility from knowingly
misidentifying the country of origin of the fish or shellfish
or whether the fish or shellfish was farm raised or wild.
Knowingly misidentifying fish or shellfish is deemed unlawful.
FISCAL EFFECT
1)One-time General Fund costs to the Department of Public Health
(DPH) of up to $150,000 to promulgate and amend regulations to
implement the provisions of the bill. One-time General Fund
costs to DPH of approximately $170,000 to purchase laboratory
equipment needed to test fish and shellfish samples for
accurate labeling.
SB 1138
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2)Ongoing General Fund enforcement costs to DPH of approximately
$600,000 per year based on 650 spot inspections of retailers
to verify compliance, further investigation and DNA testing of
100 samples resulting from issues raised in the inspections,
and responses to 50 consumer complaints per year.
COMMENTS
1) Purpose. According to the author, mislabeling of fish and
shellfish can defraud consumers, restaurants, and fishermen
when a specific fish or shellfish is ordered but has been
substituted with a less expensive, less desirable fish or
shellfish. The author claims mislabeling fish and shellfish
can also lead to the consumption of seafood that is unhealthy
or dangerous. For example, certain species of fish may have
unhealthy levels of mercury, while shellfish may be illegally
harvested from areas deemed too polluted for commercial
fishing.
2) Oceana Study. In 2013, the ocean conservation advocacy
organization Oceana released a two year study on fish sold for
retail in grocery stores and restaurants across the United
States, including Northern and Southern California. Oceana
found that 52% of fish was mislabeled in Southern California,
which led the nation, and 38% of fish was mislabeled in
Northern California.
Sushi restaurants were the worst offenders, with 95% of sushi
restaurants visited in the United States having sold
mislabeled fish. In Southern California, 84% of sushi
restaurants visited sold mislabeled fish, while in Northern
California the rate was 76%.
32% of grocery stores and 39% of non-sushi restaurants were
found to have sold mislabeled fish in Southern California,
while in Northern California 27% of grocery stores and 58% of
non-sushi restaurants were found guilty of the practice.
3) Stronger Enforcement for Fish and Shellfish. While current
federal and state law generally prohibit mislabeling of fish
and shellfish along with other foods, recent studies have
shown seafood mislabeling is not strongly enforced. This bill
is intended to address this problem by enacting specific and
detailed labeling standards for fish and shellfish while
providing protection for unknowing sales of mislabeled fish so
SB 1138
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long as the unwitting sellers maintain sufficient
documentation to demonstrate reliance on previous labeling.
4) Suggested Technical Amendment.
On page 3, line 1, insert "or raised" between "caught" and
"domestically".
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081