BILL ANALYSIS Ó AB 2725 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON HEALTH Jim Wood, Chair AB 2725 Chiu - As Amended April 5, 2016 SUBJECT: Food manufacturers: food facilities: labels. SUMMARY: Requires food for sale to include a quality date and an elevated risk date on specified food products. Specifically, this bill: 1)Requires, on or before July 1, 2017, food for sale or offered for sale in the state that includes a quality date on food to comply with the following: a) The quality date to be displayed with the uniform phrase "best if used by" unless and until the Department of Public Health (DPH) specifies a different uniform term. Authorizes DPH to modify the guidelines, after consulting with stakeholders in an open public process; and, b) The quality date to be expressed by the first three letters of the month followed by the numeral designating the appropriate calendar day and year or by expressing the calendar month numerically followed by a numeral designating the calendar day and a numeral designating the year. AB 2725 Page 2 2)Authorizes DPH to adopt regulations modifying the guidelines in 1) above, after consulting with stakeholders in an open public process, in accordance with the Administrative Procedure Act. 3)Defines quality date as the date indicated on the label affixed to the packaging or container of food that communicates to consumers the date after which the food's quality may begin to deteriorate. 4) Prohibits a retail food facility, on or after July 1, 2017, from selling or offering for sale a food item that is not labeled pursuant to 6) below. 5)Authorizes a retail food facility to donate a food item that is not labeled pursuant to the requirements of this bill. States that this bill does not prohibit and shall not be construed to discourage the sale, donation, or use of food after the food's quality date has passed. 6)Authorizes a food manufacturer to include an elevated risk date on products that require time/temperature control for safety (TCS), as specified. 7)Requires, on and after July 1, 2017, food for sale or offered for sale that includes an elevated risk date on the product to meet both of the following requirements: a) The elevated risk date to be displayed with the uniform phrase "expires on," unless and until DPH specifies a different uniform phrase; and, AB 2725 Page 3 b) The date to be expressed by the first three letters of the month, followed by the numerals designating the appropriate calendar day and year or by expressing the calendar month numerically followed by numerals designating the calendar day and year. 8)Authorizes DPH to adopt regulations adding or exempting foods from the requirements of 7) above. 9)Defines an elevated risk date as the date indicated on the label affixed to the packaging or container after which there is a high level of risk associated with the consumption of the food product. 10)Provides that nothing in this bill can be construed to create a legal liability for the retail food provider to ensure that the manufacturer has properly labeled the food product. 11)Requires DPH, on or before December 1, 2017, to provide consumer guidance on the meaning of the quality and safety date food labels. 12)Prohibits a retail food facility from selling or offering for sale a food item that is labeled with a "sell by" date, or any date in the labeling of food that is intended to communicate primarily to a distributor or retailer for purposes of stock rotation that is not a quality date or an elevated-risk date. States that this does not prohibit the use of sell-by dates that are presented in a coded format that is not easily readable by consumers. AB 2725 Page 4 EXISTING LAW: 1)Establishes the Sherman Food, Drug and Cosmetic Law, administered by DPH to regulate food, drugs, and cosmetics in California. 2)Establishes the California Retail Food Code (CRFC), administered by DPH, to govern all aspects of retail food safety and sanitation in California and makes local environmental health departments (LEHDs) primarily responsible for enforcement through local food safety inspection programs. 3)Defines a retail food facility as an operation that stores, prepares, packages, serves, vends, or otherwise provides food for human consumption at the retail level, including, but not limited to, public and private school cafeterias, restricted food service facilities (such as bed and breakfast inns and agricultural homestays), licensed health care facilities, commissaries, temporary food facilities, vending machines, certified farmers markets, as specified, and, farm stands, as specified. 4)Excludes from the definition of food facility a cooperative arrangement, as specified, a private home, cottage food operation, as specified, church, non-profit and for-profit entities under certain conditions, premises set aside for wine tasting, as specified, a commercial food processing plant, a child day care facility, a community care facility, and a residential care facility for the elderly. 5)Authorizes LEHDs to inspect food facilities, issue and suspend permits, conduct hearings, take samples or other evidence, impound food or equipment, and issue inspection reports. 6)Prohibits any person from engaging in the manufacture, packing, or holding of any processed food in California unless the person has a valid processed food registration from DPH. AB 2725 Page 5 FISCAL EFFECT: This bill has not yet been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, improving date labeling policies and practices can decrease consumer confusion, which will not only reduce food waste, but also improve food safety. Date labels on food come in a variety of forms, including "use by," "best before," "sell by" and "freshest by" dates, yet these simple markers are both poorly understood and surprisingly under-regulated, such that their meanings and timeframes are generally not defined in law. This bill will standardize the language of date labels on food. Creating standard phrases with definitions is the foundation for educating consumers on the meaning of the labels, leading to less premature waste of food. 2)BACKGROUND. a) Food dating. According to the Food Safety and Inspection Services (FSIS) of the United States Department of Agriculture (USDA), with the exception of infant formula which requires a "use by" date on the label, there is no uniform or universally accepted system for food dating in United States. Open dating (use of a calendar date as opposed to a code) on a food product is a date stamped on a product's package to help the store determine how long to display the product for sale, and assist the purchaser in determining the time limit to purchase or use the product at its best quality. If a calendar date is used, it must include both the month and day of the month (and year for shelf-stable and frozen products). If a calendar date is shown, immediately adjacent to the date must be a phrase explaining the meaning of that date such as "sell by" or AB 2725 Page 6 "use before." Additionally, canned food must have a packing code to enable tracking of the product in interstate commerce. This enables manufacturers to rotate their stock as well as to locate their products in the event of a recall. The codes, which appear as a series of letters and/or numbers, might refer to the date or time of manufacture, and are not 'use by" dates. Canned foods are safe indefinitely as long as they are not exposed to freezing temperatures or temperatures above 90 F. b) Type of dates. The FSIS Website defines the following dating labels: i) Sell-By: date tells the store how long to display the product for sale. A consumer must buy the product before the date expires; ii) Best if used by (or before): date is recommended for best flavor or quality. It is not a purchase or safety date; iii) Use by: date is the last date recommended for the use of the product while at peak quality. The date has been determined by the manufacturer of the product; and iv) Closed or coded dates: these are packing numbers for use by the manufacturer. According to the FSIS, except for "use-by" dates, product dates don't always pertain to home storage and use after purchase. "Use-by" dates usually refer to best quality and are not safety dates. Even if the date expires during home storage, a product should be safe, wholesome and of good AB 2725 Page 7 quality if handled properly. If a product has a "use-by" date, follow that date. If foods are mishandled, however, foodborne bacteria can grow and, if pathogens are present, cause foodborne illness - before or after the date on the package. For example, if hot dogs are taken to a picnic and left out several hours, they will not be safe if used thereafter, even if the date hasn't expired. Other examples of potential mishandling are products that have been: defrosted at room temperature more than two hours; cross contaminated; or, handled by people who don't practice good sanitation. c) Egg Safety and Quality Management Program (ESQM). ESQM regulates chicken shell eggs and egg products produced, shipped, or sold in California. For purposes of labeling, consumer-date packages or containers of eggs must state all of the following: name, address, zip code, size, grade, quantity, and the words "keep refrigerated," and either the USDA plant of origin code number, the USDA Shell egg surveillance number or California state handler code, sell by date, Shell Egg food Safety Compliant, Julian date of pack, as specified. d) TCS. This bill authorizes a manufacturer to include an elevated risk date on products that require TCS, as defined by the United States Food and Drug Administration (FDA) AB 2725 Page 8 Food Code. The FDA Food Code defines TCS as food that requires time and temperature control to limit pathogenic microorganism growth or toxin formation. It includes an animal food that is raw or heat-treated, a plant food that is heat-treated or consists of raw seed sprouts, cut melons, cut leafy greens, cut tomatoes or mixtures of cut tomatoes that are not modified in a way so that they are unable to support pathogenic microorganism growth or toxin formation, or garlic-in-oil mixtures that are not modified in a way so that they are unable to support pathogenic microorganism growth or toxin formation. The following are examples of foods that are considered potentially hazardous foods and require proper control of time and temperature: milk and dairy products, eggs (except those treated to eliminate microorganisms), meat (beef, pork and lamb), poultry, fish and shellfish, baked potatoes, heat-treated plant foods (rice, beans, and vegetables), tofu and other soy proteins, sprouts and sprout seeds, sliced melons, and cut tomatoes e) Food Waste. Background information provided to the Committee by the author and sponsor of this bill, including an issue brief entitled "The Dating Game: How Confusing Labels Land Billions of Pounds of Food in the Trash," points out that the current system of expiration dates misleads consumers to believe they must discard food in order to protect their own safety. About 40% of food is never eaten in the United States. Producing that uneaten food accounts for an estimated 25% of the water and 4% of oil consumed in the United States and putting it in the garbage makes food the number one product filling up landfills, where it produces the powerful greenhouse gas methane. A more standardized, less confusing date labeling system across the U.S. would help consumers maximize the value of their food budgets while eliminating waste of food and resources. In "A Roadmap to Reduce Food Waste by 20 Percent" nearly 80% of food waste come from perishable foods, which include prepared fresh deli items, meats, AB 2725 Page 9 fruits, and vegetables, seafood, milk and dairy, and some grain products such as bread and bakery items. Non-perishable foods (pastas, canned goods, and highly-processed, shelf-stable products), are generally wasted less because they don't spoil as easily. 3)PREVIOUS LEGISLATION. AB 1826 (Chesbro), Chapter 727, Statutes of 2014, requires a business that generates a specified amount of organic waste per week to arrange for recycling services for that organic waste, in a specified manner. 4)SUPPORT. Californians Against Waste, one of the sponsors of this bill, states that this bill will standardize the language of date labels on food, creating one standard label for communicating product quality, and one for indicating if a product carries increased risk after that date. This will give consumers a better understanding of what these labels mean, leading not only to less food going in the trash but also increased consumer confidence in the safety of their food. The Natural Resources Defense Council states that misinterpretation of the date labels on foods is a key factor leading to food waste in American households. The lack of standardization around date labels makes it impossible to educate consumers on their meaning. This bill educates consumers on the meaning of food labels which would lead to less premature waste of food. 5)OPPOSITION. The California Chamber of Commerce, California Manufacturers & Technology Association, California Retailers Association, California Grocers Association, and the California League of Food Processors state that this bill imposes a costly and confusing new food warning program and that a "California only" labeling scheme will not help consumers or waste reduction. AB 2725 Page 10 6)POLICY COMMENT. This bill requires retail food facilities to label food products that they sell to include an elevated risk date. Existing law defines retail food facilities to include public and private school cafeterias, restricted food service facilities (such as bed and breakfast inns and agricultural homestays), licensed health care facilities, commissaries, temporary food facilities, vending machines, certified farmers markets, and farm stands. These facilities must already comply with the CRFC which includes requirements on how to maintain potentially hazardous foods and comply with specified time and temperature requirements. Additionally, the nature of these facilities may make it difficult to comply with the labeling requirements of this bill. Similarly, this bill appears to authorize a retail food facility to sell, donate, or use food even after the food's quality date has passed. Although these provisions are well-intentioned, they appear inconsistent with the purposes of the CRFC. As this bill moves forward, the Committee may wish to recommend to the author to convene a stakeholder meeting with retail food facility stakeholders to determine how these facilities could comply with the requirements of this bill in a way that is consistent with the CRFC. 7)DOUBLE REFERRAL. This bill has been double referred by the Assembly Rules Committee. Upon passage out of this Committee, it will be referred to the Assembly Business and Professions Committee. REGISTERED SUPPORT / OPPOSITION: Support AB 2725 Page 11 Californians Against Waste (co-sponsor) Natural Resources Defense Council (co-sponsor) AZUL California Association of Local Conservation Corps. California League of Conservation Voters California Compost Coalition California Public Interest Research Group Catholic Charities of the Diocese of Stockton City of Sunnyvale Clean Water Action Community Alliance with Family Farmers Environment California Environmental Working Group AB 2725 Page 12 Harvard Food Law and Policy Clinic Inika Small Earth, Inc. Marin Sanitary Service Napa Recycling & Waste Services Natural Resources Defense Council Northern California Recycling Association Pesticide Action Network Solana Center for Environmental Innovation Solid Waste Association of North America Sonoma County Waste Management Agency StopWaste Tri-CED Community Recycling Zanker Recycling AB 2725 Page 13 Several Individuals Opposition Agricultural Council of California California Bean Shippers Association California Chamber of Commerce California Farm Bureau Federation California Grocers Association California League of Food Processor California Manufacturers & Technology Associ9ation California Pear Growers Association California Retailers Association Grocery Manufacturers Association North American Meat Institute Analysis Prepared by:Rosielyn Pulmano / HEALTH / (916) 319-2097