BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 1381 AUTHOR: Evans INTRODUCED: February 21, 2014 HEARING DATE: March 26, 2014 CONSULTANT: Marchand SUBJECT : Food labeling: genetically engineered food. SUMMARY : Enacts "The California Right to Know Genetically Engineered Food Act" to require the labeling of all genetically engineered foods sold within California. Existing state law: 1.Enacts the Sherman Food, Drug and Cosmetic Law, enforced by the Department of Public Health (DPH), which provides broad authority for DPH to enforce food safety requirements, including that food is not adulterated, misbranded, or falsely advertised. Food labeling requirements generally adopt federal food labeling laws as the state requirement, including nutrition labeling and allergen labeling, but DPH is permitted, by regulation, to adopt additional food labeling regulations. Existing federal law: 1.Establishes, through the U.S. Food and Drug Administration (FDA), various requirements for food labels under the Federal Food, Drug, and Cosmetic Act, which includes the Nutritional Labeling and Education Act and the Food Allergen Labeling and Consumer Protection Act. These include requiring specified nutrition information, a listing of all ingredients, and whether a produce contains any of eight major food allergens, such as milk, eggs, shellfish, tree nuts, etc. 2.Permits, under the United States Department of Agriculture's (USDA) National Organic Program, products to be labeled as "100% organic" if they are comprised of 100 percent certified organic ingredients, or as "organic" if they are comprised of 95 percent certified organic ingredients. Prohibits the use of genetic engineering, or genetically modified organisms, in organic products. This bill: 1.Enacts "The California Right to Know Genetically Engineered Continued--- SB 1381 | Page 2 Food Act" (Act), states the intent of the Legislature, with this Act, to require the labeling of all foods produced with genetic engineering sold within the state, and deems a food misbranded if its labeling does not conform to the provisions of the Act. 2.Defines "genetically engineered," for purposes of the Act, as produced from an organism or organisms in which the genetic material has been changed through the application of either of the following: a. In vitro nucleic acid techniques, as defined, which include, but are not limited to, recombinant deoxyribonucleic acid (rDNA) or ribonucleic acid (RNA) direct injection of nucleic acid into cells or organelles, encapsulation, gene deletion, and doubling; or, b. Methods of fusing cells beyond the taxonomic family that overcome natural physiological, reproductive, or recombinant barriers, and that are not techniques used in traditional breeding and selection such as conjugation, transduction, and hybridization. 3.Exempts from the definition of "genetically engineered" an animal who has not itself been genetically engineered, regardless of whether that animal has been fed or injected with any food or any drug that has been produced through means of genetic engineering. 4.Defines various terms for purposes of the Act, including "agriculture," "commercially cultivated," "food," "food facility," "label," "organism," "packaged food," and "supplier." 5.Requires any raw agricultural commodity or packaged food that is entirely or partially produced with genetic engineering to be labeled in accordance with this Act, and deems it misbranded if not so labeled. 6.Requires a manufacturer of a raw agricultural commodity packaged for retail sale to include the words "Genetically Engineered" clearly and conspicuously on the front or back of the package of that commodity. 7.Requires a retailer of a raw agricultural commodity that is SB 1381 | Page 3 not separately packaged or labeled to place a clear and conspicuous label on the retail store shelf or bin in which that commodity is displayed for sale. 8.Requires a supplier of a raw agricultural commodity to label each container used for packaging, holding, or transporting a raw agricultural commodity produced with genetic engineering that is delivered directly to a retailer in California. 9.Requires a manufacturer of packaged food containing some products of genetic engineering to label the product in clear and conspicuous language on the front or back of the package with the words "Produced with Genetic Engineering" or "Partially Produced with Genetic Engineering." 10.Prohibits the provisions of this bill from being construed to require a label that lists or identifies an ingredient that was genetically engineered, or that the words "genetically engineered" be placed immediate preceding any common name or primary product descriptor of a food. 11.Permits the Attorney General to bring an action to enjoin a violation of the Act in any court of competent jurisdiction. 12.Permits an injured resident of California, 60 days after giving notice of the alleged violation to the Attorney General and the alleged violator, to bring an action to enjoin a violation of this article by a manufacturer or retailer in any court of competent jurisdiction. Permits the court to award to a prevailing plaintiff reasonable attorney fees and costs incurred in investigating and prosecuting the action, but prohibits the court from awarding monetary damages. 13.Prohibits injunctive relief or attorneys' fees and costs from being granted with respect to failure to label either of the following: a. Packaged food in which the materials produced through genetic engineering account for nine-tenths of 1 percent or less of the total weight; or, b. Food produced without knowledge or intent, as specified, to use genetic engineering. 14.Specifies that food is produced "without knowledge or intent to use genetic engineering" under any of the following SB 1381 | Page 4 conditions: a. The food is lawfully certified to be labeled, marketed, and offered for sale as "organic" pursuant to the federal Organic Foods Production Act of 1990; b. A manufacturer or retailer who obtained a sworn statement from the supplier that the food was produced without knowledge or intent to use genetic engineered and has been segregated from, and not knowingly or intentionally commingled with, foods that may have been genetically engineered; or, c. An independent organization has determined that the food was produced without knowledge or intent to use genetic engineering and has been segregated from, and not knowingly or intentionally commingled with, foods that may have been genetically engineered. Requires this determination to be made pursuant to a sampling and testing procedure consistent with principles recommended by internationally recognized testing standards organizations and which does not rely on testing processed foods in which no DNA is detectable. 15.Exempts a retailer that is not the producer or manufacturer of food the retailer sells under its brand from being liable under the Act except if the retailer knowingly and willfully fails to provide point-of-purchase labeling for an unpackaged raw agricultural commodity. Specifies that it is a defense in an action under this Act that a retailer reasonably relied on a disclosure, as specified, that the food was not produced through genetic engineering. 16.Prohibits any action from being brought under this Act against a farmer who is not a retailer or manufacturer, but specifies that a farmer who swears a false statement under this Act remain subject to laws pertaining to perjury. 17.Requires the DPH to adopt and enforce regulations as necessary to implement this Act. 18.Specifies that the provisions of the Act are severable, and that if any provision of this Act or its application is held invalid, that invalidity is prohibited from affecting other provisions or applications that can be given effect without the invalid provision or application. SB 1381 | Page 5 19.States numerous legislative findings and declarations, including the following: a. Polls consistently show that the vast majority of the members of the public, more than 90 percent, want to know, for health, economic, environmental, religious, and ethical reasons, if the food they purchase was produced with genetic engineering; b. The United States FDA does not require safety studies of genetically engineered foods, and that instead, any consultations are voluntary and genetically engineered food developers may decide what information to provide to the FDA; c. United States government scientists have stated that the artificial insertion of genetic material into plants via genetic engineering can increase the levels of known toxicants or allergens in foods and create new toxicants or allergens with consequent health concerns; d. Voluntary labeling is insufficient to provide consumers with adequate information on whether the food they are purchasing was produced with genetic engineering, and in some cases the labels may be misleading; and, e. The vast majority of genetically engineered crops are designed to withstand herbicides, and they, therefore, promote indiscriminate herbicide use. As a result, genetically engineered crops have caused 527 million pounds of additional herbicides to be applied to the nation's farmlands. FISCAL EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : 1.Author's statement. According to the author, this bill would allow Californians to make more informed food-buying choices by requiring genetically engineered foods sold in California to be labeled as such. California would join more than 64 countries around the world that have genetically engineered food labeling laws. The FDA does not require the labeling of genetically engineered foods, giving California a duty to the people, the environment, and the agricultural economy to enact this requirement. SB 1381 | Page 6 The author states that there is overwhelming public support in California for labeling genetically engineered foods. Polls both before and after the November 2012 election for Proposition 37 showed that 67 percent of Californians supported California having its own genetically engineered food labeling law. People want the right to know how their food is produced for environmental, health, economic, religious, and ethical reasons. Further, because there is no mandatory labeling of genetically engineered foods, health professionals have no way of tracking if these foods are causing allergic reactions or adverse health effects. SB 1381 would help provide health professionals and researchers with this tracking mechanism. Labeling genetically engineered food is about the right to know and transparency in the marketplace. With clear labels, we can make our own informed decisions. 2.Proposition 37. In the 2012 General Election, an initiative measure, Proposition 37, was defeated by a margin of 51.4 percent to 48.6 percent. Proposition 37 was substantially similar to this bill, but with several significant differences. For example, alcoholic beverages were specifically exempted from the labeling requirements in Proposition 37, but are not exempted in this bill. Also, Proposition 37 permitted consumers to sue for violations under the Consumer Legal Remedies Act, which permits the awarding of punitive damages, among other remedies. This bill includes provisions allowing consumers to sue for injunctive relief, but limits the court to awarding only reasonable attorney fees and costs, and specifically prohibits the awarding of monetary damages. 3.Background on federal oversight of genetically modified foods. According to a paper published by the University of California, Davis, entitled Plant Genetic Engineering and Regulation in the United States (UCD paper), as genetic engineering research was progressing, the United States decided in the early 1980s to formally regulate genetically engineered organisms to assess their safety for human and animal health and the environment. Although many countries later promulgated entirely new laws to regulate rDNA products, the United States chose to adapt existing legislation to accommodate new products derived from rDNA technology. An early study conducted by the National Research Council (NRC) SB 1381 | Page 7 for the National Academies of Science concluded that transgenic methods of plant breeding pose no new categories of risk (NRC 1989). This conclusion of "no new risks with biotechnology" was reiterated in subsequent studies in by the NRC in 2000, 2002, and 2004. Genetically engineered plants were first developed in 1983. The first approved field trials of genetically engineered plants were in 1986, and the first approval leading to a commercial release of a genetically engineered food crop was in 1994, with the now defunct FlavrSavr tomato. Oversight by USDA, FDA, and EPA According to the UCD paper, the USDA regulates plants prior to commercial release. The main concern of the USDA is the possibility that the new plant will harm agriculture and the environment, with harm possibly coming from the plant being modified to increase its ecological fitness and then escaping into the environment, where it would outcompete and displace native plants or become a weed in cultivated lands. USDA oversight comes from the Plant Protection Act of 2000, and under this Act, USDA considers each genetically engineered plant a "regulated article" until it is deemed otherwise. In order to grant "non-regulated" status for genetically engineered crops, the USDA requires a molecular, biochemical, and cellular characterization of the genetically engineered plant, along with data on the life cycle, reproductive characteristics, and any expected or unexpected changes from non-engineered plants of the same species. The FDA is primarily concerned with threats to human health and to the health of other animals (via feed). The FDA's Center for Food Safety and Nutrition evaluate a new genetically engineered food focusing on the presence of additional or increased allergens and toxins and on any changes to overall nutrition and composition. However, the UCD paper notes that one criticism of the regulatory process is that the FDA's system is "voluntary," so developers of a new biotech-derived food crop could legally place it on the market without FDA's knowledge or approval. However, according to the UCD paper, in practice all genetically modified food has gone to the FDA for a consultation, and upon completion of the consultation, the FDA issues a memo summarizing the characteristics of the food and their implications for safety. The FDA does not formally "approve" the product as being safe. SB 1381 | Page 8 The Environmental Protection Agency (EPA) is mainly concerned with the environmental and human health impacts of pesticides. The EPA regulates genetically engineered plants that have altered pesticide characteristics, no matter whether they require a shift in the kind or amount of pesticide used. According to the UCD paper, as an example, Roundup Ready soybeans were genetically modified to survive exposure to Roundup herbicide, so EPA demanded an assessment. Technically, EPA does not assess the soybean plant, but rather the new use of the Roundup herbicide. On the other hand, genetically engineered Bt corn can be cultivated without being sprayed with Bt insecticide because the plant itself produces Bt, which deters pests from eating the plant. Since the genetically engineered corn plant itself produces Bt, EPA refers to this as "plant incorporated protectant" and claims regulatory oversight. 4.World Health Organization statement on GMO food safety. In answer to the question as to whether genetically modified foods safe, the World Health Organization posted the following answer on its website: Different GM [genetically modified] organisms include different genes inserted in different ways. This means that individual GM foods and their safety should be assessed on a case-by-case basis and that it is not possible to make general statements on the safety of all GM foods. GM foods currently available on the international market have passed risk assessments and are not likely to present risks for human health. In addition, no effects on human health have been shown as a result of the consumption of such foods by the general population in the countries where they have been approved. Continuous use of risk assessments based on the Codex principles and, where appropriate, including post market monitoring, should form the basis for evaluating the safety of GM foods. 5.Labeling laws in other states and countries. Last year, Connecticut and Maine became the first two states to adopt laws requiring the labeling of GE foods. However, both contain trigger mechanisms that delay implementation until other adjoining states also adopt genetically engineered labeling laws. Connecticut's law will not take effect until a combination of Northeastern states adding up to 20 million residents adopt similar labeling requirements, while Maine's law will not take effect until five nearby states have adopted SB 1381 | Page 9 a labeling requirement. Proponents note that numerous other countries already require genetically engineered foods to be labeled. According to an editorial published in Scientific American in September of 2013 (Labels for GMO Foods Are a Bad Idea), the European Union began to require genetically engineered labels in 1997, and by 1999, to avoid labels that might drive customers away, most major European retailers had removed genetically modified ingredients from products bearing their brand. According to this editorial, today it is virtually impossible to find genetically engineered foods in European markets. 6.Triple referral. This bill has also been referred to Senate Agriculture and Judiciary Committees. Should it pass out of this committee, it will be referred to Senate Agriculture Committee. 7.Related legislation. SB 1138 (Padilla) requires the label of fresh, frozen or processed fish to clearly identify the species of fish or shellfish by its common name, as specified. SB 1138 is pending in Senate Health Committee. 8.Prior legislation. AB 88 (Huffman) of 2012 would have required genetically engineered salmon or other finfish products prepared from those fish of the progeny of genetically engineered fish to be conspicuously disclosed on the label. AB 88 failed passage in Assembly Appropriations Committee. SB 63 (Migden) of 2007 would have required cloned animals and their progeny to be labeled. SB 63 was vetoed by Governor Schwarzenegger. In his veto message, the Governor stated, "I cannot sign this bill as it is pre-empted by federal law. Federal law prohibits states from enacting labeling requirements for meat and poultry that are in addition to those federally established. Further, I am concerned that this bill would require tracking and labeling requirements that could be unworkable, costly and unenforceable." AB 1100 (Ruskin) of 2007 and SB 1121 (Migden) of 2008 were substantially similar to SB 63. SB 1100 was held in Senate Appropriations Committee, and AB 1100, after passing the Assembly and the Senate Health Committee, was amended into another subject. SB 1381 | Page 10 AB 791 (Strom-Martin) of 2002 would have required transgenic fish to be labeled. AB 791 died on the Assembly Floor pending concurrence. SB 245 (Sher), Chapter 871, Statutes of 2003, prohibited the spawning, incubation, or cultivation of any species of finfish belonging to the family Salmonidae or transgenic fish species, or any exotic species of finfish, in the waters of the Pacific Ocean that are regulated by California. SB 1513 (Hayden) of 2000 would have created a task force in state government to assess the need for labeling of genetically engineered foods. SB 1513 failed in Assembly Agriculture Committee. 9.Support. This bill is supported by a coalition of organizations, which include the Environmental Working Group, Consumers Union, the California State Grange, the California Nurses Association, the California Farmers' Markets Association, and Eden Foods, among other organizations. Supporters state that Californians should have the choice as to whether to purchase foods that are genetically engineered, and this bill would permit people to make informed choices by requiring genetically engineered foods sold in California to be labeled as such. Supporters state that more than 64 other countries have enacted laws specifically focused on overseeing genetically engineered crops and foods, or their labeling, and that polls continue to indicate that the majority of Californians want the labeling of genetically engineered foods. Supporters also state that this bill would help provide researchers with the means to track ingestion of genetically engineered foods in order to determine if there are adverse health effects. Supporters argue that labeling genetically engineered foods is about transparency and empowering people so that consumer can make their own informed choices. Supporters assert that contrary to the opposition's claim that genetic engineering labeling will cost consumers at the cash register, label changes and updates are a routine part of business for the food industry and don't result in additional costs to shoppers. Supporters point to an economic assessment of Proposition 37 conducted by a professor at Emory University School of Law that found that "prices for many food products will not change as a result of the Right to Know Act." Additionally, supporters state that genetically engineered food labeling has not increased food prices in Europe, citing SB 1381 | Page 11 a statement to that effect by the former European Commissioner for Health and Consumer Protection of the European Parliament. CALPIRG states in support that genetic engineering-centric agriculture has increased the use of toxic chemicals. According to CALPIRG, most genetically engineered foods in the US are designed to withstand herbicides and pesticides, and therefore enable increased use of these toxic chemicals. CALPIRG states that high pesticide exposure is associated with cognitive decline, cancer, and negative birth outcomes. According to CALPIRG, increased pesticide and herbicide use also lead to chemical-resistant weeds and insects, which pushes farmers to both increase the dosages still further, and return to older, more toxic chemicals to which pests are not yet resistant. 10.Opposition. This bill is opposed by a number of organizations, including the Agricultural Council of California, BAYBIO, BIOCOM, California Citrus Mutual, the California Chamber of Commerce, the California Farm Bureau Federation, the California Grocers Association, the California Retailers Association, the Grocery Manufacturers Association, and the California Healthcare Institute. Opponents state that this bill will mandate a California-only labeling scheme that will increase food costs for California families and raise liability and compliance costs for farmers, grocers and food manufacturers. According to opponents, it will confuse consumers with a label that lacks context and scientific basis and stigmatize food ingredients that are safe and healthy. Opponents state that economic studies of Proposition 37 concluded that genetic engineering labeling mandates would cost the average California family up to $400 per year in higher grocery bills, and that this would disproportionately impact low and fixed income populations. Opponents argue that as food costs increase, the allocated dollars for programs such as the Supplemental Nutrition Assistance Program will not purchase as much nutritional food as before and will hurt California's most vulnerable populations. Opponents also assert that more than 400 scientific studies have shown foods made with genetically engineered ingredients are safe, and that the American Medical Association, the World Health Organization, the National Academy of Sciences, and the US Food and Drug Administration all agree. 11.Policy comments and drafting concerns. SB 1381 | Page 12 a. Unnecessary definitions. This bill includes a number of definitions of terms that are not used in the remainder of the bill. Unless there is a specific reason to include these definitions, they should be removed from the bill. Definitions included in this bill for which there is no further use of the term include: "agriculture," "cultivated commercially," "food facility," and "medical food." b. Should the implementation date be delayed? This bill, should it be enacted into law, would take effect on January 1, 2015. Given that it proposes a new labeling requirement, the author may wish to consider delaying the implementation date to give the food industry time to prepare for implementation. c. What does "clear and conspicuous" mean? This bill requires the labeling of GE foods to be "clear and conspicuous," but does not define what this means. This bill does require DPH to adopt regulations necessary to implement this bill, and it may be the author's intent to have "clear and conspicuous" defined through the regulatory process, but without a delayed implementation date to give DPH time to adopt regulations, this requirement may not be sufficiently clear to the food industry when the bill takes effect in January. d. Technical correction. On page 8, line 23, "engineered" should be replaced with "engineering." SUPPORT AND OPPOSITION : Support: Alliance for Natural Health USA Biosafety Alliance CALPIRG California Farmers' Markets Association California Nurses Association California State Grange California Right to Know Prop 37 Steering Committee Californians for GE Food Labeling Center for Environmental Health Consumers Union Eden Foods Environmental Working Group Food and Water Watch SB 1381 | Page 13 Food Democracy Now! Friends of the Earth Good Earth Natural Foods Green America Harmony Art Label GMOs LaRocca Vineyards Mercola.com MOMS Advocating Sustainability Organic Consumers Association Pesticide Action Network North America Pesticide Watch Silo's Slow Food California 1 individual Oppose: Agricultural Council of California BAYBIO BIOCOM Biotechnology Industry Organization California Chamber of Commerce California Citrus Mutual California Cotton Ginners Association California Cotton Growers Association California Farm Bureau Federation California Grain and Feed Association California Grocers Association California Healthcare Institute California League of Food Processors California Manufacturers and Technology Association California Retailers Association California Seed Association California Women for Agriculture Family Winemakers of California Grocery Manufacturers Association International Formula Council Pacific Egg and Poultry Association Western Agricultural Processors Association Western Growers Western Plant Health Association -- END -- SB 1381 | Page 14