BILL ANALYSIS Ó SB 1138 Page 1 SENATE THIRD READING SB 1138 (Padilla) As Amended August 18, 2014 Majority vote SENATE VOTE :36-0 AGRICULTURE 7-0 APPROPRIATIONS 12-2 ----------------------------------------------------------------- |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. SB 1138 Page 2 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 SB 1138 Page 3 $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 SB 1138 Page 4 FN: 0004824