BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1138
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          SENATE THIRD READING
          SB 1138 (Padilla)
          As Amended  August 18, 2014
          Majority vote 

           SENATE VOTE  :36-0  
           
           AGRICULTURE         7-0         APPROPRIATIONS      12-2        
           
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          |Ayes:|Eggman, Olsen, Dahle,     |Ayes:|Gatto, Bocanegra,         |
          |     |Pan, Quirk, Salas, Yamada |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bigelow, Jones            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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 wild caught or farm  
               raised; 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 by regulation, as the common name for any  
            seafood species identified in the Seafood List issued by the  
            federal Food and Drug Administration.








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          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.

          5)Provides that a retail food facility or restaurant that acts  
            in reasonable reliance on package labeling or product invoice  
            for labeling fish or shellfish to satisfy the labeling  
            requirements shall not be held in violation of the labeling  
            requirements.

          6)Requires any retail food facility or restaurant that offers or  
            sells fresh, frozen, or processed fish or shellfish, wild or  
            farm-raised, shall clearly identify, at point of sale, the  
            species of fish or shellfish by its common name, as specified.

          7)Provides that if any retail food facility that offers or sells  
            fresh, frozen, or processed fish or shellfish, wild or  
            farm-raised, and choses to list country of origin, or whether  
            the fish is wild caught or farm raises, it must not be  
            knowingly mislabeled. 

             a)   States that retail food facilities are not required to  
               label country of origin, or whether the fish is wild caught  
               or farm raised.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
            Committee:

          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.

          2)Ongoing General Fund enforcement costs to DPH of approximately  








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            $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  :  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 labeled 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,  
          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.


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










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