BILL ANALYSIS                                                                                                                                                                                                    






           SENATE COMMITTEE ON AGRICULTURE AND WATER RESOURCES
                           Jim Costa, Chairman


       SB 1513 (Hayden)
       As proposed to be amended
       Hearing Date: April 11, 2000
       Fiscal: Yes
       Consultant:  Dennis Albiani

       PURPOSE OF BILL: 

       To provide consumers with information concerning whether a food  
       product contains genetically engineered or transgenic organism  
       (GE/TO) by requiring food to be labeled on its package, in the  
       store bin, or as served in restaurants and other food  
       establishments.  In addition, to create a process for foods in  
       California to be labeled as "free" of GE/TO.  To require foods,  
       except organically labeled foods, to be tested for proof that  
       they do not contain GE/TO.  

       BACKGROUND:

        The technology: 
        
       Biotechnology applications by humans date back to 1800 B.C.,  
       when people began using yeast to leaven bread and ferment wine.   
       By the 1860's, Gregor Mendel and others started breeding plants  
       through deliberate cross-pollination.  

       In the 1970's, a series of complementary advances in the field  
       of molecular biology provided scientists with the ability to  
       readily move DNA between more distantly related organisms.   
       Today, this recombinant DNA (rDNA) technology has reached a  
       stage that allows scientists to take a piece of DNA containing  
       one or more specific genes from nearly any organism, including  
       plants, animals and bacteria, and introduce it into a specific  
       crop species.  

       The ability to easily incorporate genetic material from  
       virtually any organism into many different crop plants has  
       reached the stage of commercial applicability.  Examples of the  
       two most widely accepted commercial applications of rDNA  
       technology are:  Soybeans and cotton varieties that are  
       resistant to herbicide and a corn variety that produces a  
       naturally occurring protein that is toxic to certain  




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       caterpillars, eliminating the need for many conventional  
       pesticides.  

       In 1999, approximately 99 million acres of GE/TO crops were  
       grown worldwide.  It is believed that nearly 70% of all  
       processed food contains some GE/TO.  

        The issues  :

       Over the last several years mandatory labeling of foods  
       containing GE/TO has become an issue in some foreign countries.   
       In the European Union, foods containing GE/TO must be labeled.   
       A few European countries require restaurants to label if they  
       serve food made with GE/TO.  Several other importing countries  
       are beginning to discuss mandatory labeling of this food  
       including Mexico and Japan.  

       Importing and exporting food containing GE/TO is becoming a  
       trade issue.  Some countries are beginning to demand segregation  
       of food imports while others see this issue as a non-tariff  
       trade barrier.  The controversy over this issue and trade was  
       demonstrated this past year at the World Trade Organization  
       talks in Seattle.  Demonstrators protested and many of the  
       meetings were canceled.  

       In an attempt to address many of these trade concerns the United  
       Nations Convention on Biodiversity recently announced the  
       creation of the Biodiversity Protocol.  This Biodiversity  
       Protocol will provide a regulatory framework for international  
       trade in bio-engineered products referred to as living modified  
       organisms (LMO).  The protocol preserves countries' rights under  
       other international agreements.  It requires that regulatory  
       decisions be based on risk assessments and sound science.   
       Countries should not be able to use unfounded concerns about  
       biodiversity as disguised trade barriers.  

       The protocol establishes a biosafety clearinghouse to help  
       countries exchange scientific, technical, environmental and  
       legal information about LMO's.  Processed foods are not covered  
       by the protocol.  

       In 1992 the United States Food and Drug Administration (FDA)  
       developed its guidelines for foods containing GE/TO.  Consistent  
       with the regulations governing all food, the FDA requires that  
       all food be safe and that food labels be accurate and not  
       misleading.  If the content of a food is altered through the  




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       introduction of GE/TO in a manner that changes the food's  
       nutritional content, allergenic principles, and toxicity it must  
       be labeled accordingly.  Under the federal Food, Drug and  
       Cosmetic Act, companies have a legal obligation to ensure that  
       any food they sell meets the safety standards of the law.  This  
       applies equally to conventional food and bioengineered food.   
       FDA has developed a consultation process for industry to work  
       directly with FDA as new foods containing GE/TO are developed.  

       PROPOSED LAW:

       This bill establishes definitions for several scientifically  
       based terms relating to genetic engineering in foods including:

        Defines "Genetically Engineered and Transgenic Products" by  
         the technique used to alter the molecular cell biology.  The  
         definition includes, but is not limited to, the transfer of  
         non species related DNA through any technique.  The definition  
         excludes some techniques including wide crosses, embryo  
         rescue, and induced mutation. 

        Defines "Genetically Engineered and Transgenic Organism" as  
         any living organism whose genetic makeup has been altered  
         through the techniques outlined in the above definition.  

       The bill requires labels for all fresh fruit and vegetables,  
       processed foods, food supplements, vitamins, and foodstuffs that  
       contain a "detectable" portion of genetically engineered,  
       transgenic organisms.  The label must say "Consumer Notice:  
       Contains Genetically Engineered or Transgenic Organisms."  This  
       measures prescribes requirements for the label including size,  
       color, density, and format. 
       This bill would allow for products to be labeled free of GE/TO  
       if they have been tested at a "certified laboratory" and provide  
       evidence that the product contains less than .01% GE/TO  
       ingredients.

       This bill provides an exemption for products that are properly  
       labeled as "certified organic" from the labeling requirement.   

       This measure creates exemptions for foods that use GE/TO aids  
       during processing, such as enzymes for fermentation, but do not  
       contain detectable residues and an exemption for animals  
       intended for human consumption that eat feed or are given  
       prescription drugs containing GE/TO.





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       This bill would require restaurants, bakeries, or other  
       establishments that prepare food to label with the consumer  
       notice if the end product is made from ingredients with GE/TO.

       This measure requires testing by the California Department of  
       Food and Agriculture of samples from food producers who wish to  
       not have to label their product as containing GE/TO and creates  
       a misdemeanor punishable by not more than 30 days in jail and/or  
       a fine of $2,500 for violation of these provisions.

       COMMENTS:

       Supporters of mandatory labeling of foods containing GE/TO state  
       that it is simply the "consumers right to know" what they are  
       eating and labels will provide a means for consumers to make  
       informed choices about their food.  They site polls that find  
       consumers desire mandatory labels for food products created with  
       GE/TO.  Labels for these products are required in some European  
       countries, and consumers in the United States should receive the  
       same information as European consumers.  

       The bills supporters state that precedent for labeling food  
       production processes exist with "organically grown" and "kosher"  
       labels, although it should be noted these are not mandatory  
       labels. The supporters believe the current process of approving  
       new foods in the United States has no requirement that the U.S.  
       Food and Drug Administration (FDA) take an affirmative action to  
       approve a food containing elements that have been genetically  
       engineered. Finally, it is proposed by the bills supporters that  
       a clear and unambiguous label could provide a simple means of  
       tracing a potential food safety problem in the event of an  
       adverse reaction.   

       Opponents of this measure believe that federal uniformity in  
       food labeling is paramount.  They believe that if each state  
       chooses a different labeling scheme, requirements, and  
       definition it will lead to many challenges concerning food  
       labeling, distribution, and production.  Additionally, national  
       uniformity provides consumers with consistent product  
       information across the nation.  

       Furthermore, opponents state FDA's existing guidelines for  
       genetically engineered food is consistent with the manner that  
       all food is treated.  FDA labels food based on the contents of  
       the food item, not the process in which it was produced.  If the  
       addition of a genetically engineered organism leads to the food  




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       content being altered in one of three ways, allergenic  
       principle, toxicity, or nutritional content it would require  
       appropriate labeling.  Finally, opponents note that no  
       scientific study has identified any health or food safety  
       concerns linked to foods containing GE/TO.

       The measure proposes to create three classes of food in  
       California:  1)  food created with GE/TO that must be labeled  
       with the prescribed consumer notice; 2) food that is certified  
       as "GE/TO free" and is labeled accordingly; and 3)  food that  
       does not contain GE/TO but the producers do not want to go  
       through the expense and process of certifying their food as  
       "GE/TO free".  

       The way the bill is currently written it requires the default  
       class of food to carry the consumer notice that the product  
       contains GE/TO.  Section 17598 creates a requirement that food  
       producers who do not want to place the consumer notice on all  
       their food would at least need to submit samples to the  
       Department of Food and Agriculture to prove the "absence of  
       GE/TO."  Therefore, if a farmer or producer was growing food as  
       he or she has for many years on the same trees or vines, he or  
       she has two alternatives; label the food with the consumer  
       notice even though it was clearly  not  grown with GE/TO or be  
       required to submit samples to the department for testing.  To  
       alleviate this problem, the committee may wish to consider  
       either removing this section, or delete the section and develop  
       a section that gives the proper state agency the power to  
       develop a regulatory scheme of random testing for the purpose of  
       policing this article.

       If the committee chooses to retain this section, the measure  
       should be amended to allow the Department of Food and  
       Agriculture to develop regulations and collect fees to  
       administer this "sampling" program.

       The definition of "Genetically Engineered and Transgenic  
       Products" uses the term "  includes, but is not limited to  , the  
       transfer of non species related DNA through  any  technique."   
       Some researchers argue that this definition is too broad and may  
       encompass some techniques not intended.  The definition excludes  
       some techniques including wide crosses, embryo rescue, and  
       induced mutation.  The authors office indicates they are most  
       concerned with the process of transferring recombinant DNA  
       (rDNA).  The committee may wish to discuss narrowing the  
       definition to more precisely focus on the authors intent.




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       The measure as proposed contains three standards that are  
       inconsistent.  Foods can have no "  detectable portion  of the  
       novel DNA or its gene products," or they require the consumer  
       notice.  To be labeled "GE/TO free," food may contain no more  
       than  "0.1 percent GE/TO ingredients  ."  A third standard requires  
       samples to have an "  absence of GE/TO  " to avoid a label.  

       It is unclear whether this bill attempts to create an exemption  
       from the consumer notice for properly labeled organic foods, or  
       if it requires food carrying the "certified organic" label to be  
       free of GE/TO.  The committee may wish to clarify this provision  
       of the bill.

       The measure creates an exemption for livestock and fowl grown or  
       produced on GE/TO "  feedstuffs " and "  prescription  " drugs.  Many  
       drugs that require a "prescription" for humans such as  
       antibiotics, parasitic controlling drugs, and penicillin, do not  
       require a prescription for animal uses.  By including the  
       qualifier "prescription drugs" livestock produced with  
       prescription drugs will be exempt, while livestock produced with  
       non-prescription drugs will require the consumer notice.   
       Limiting the exemption to feedstuffs will require labeling for  
       livestock produced with growth hormones containing GE/TO and  
       many other implements of husbandry while exempting livestock  
       raised on GE/TO feed.  The committee may wish to include all  
       drugs and supplements in this exemption.  

       The section establishing a method for labeling as "GE/TO free"  
       requires testing at a "certified laboratory."  The bill does not  
       define what a "certified laboratory" is or establish the  
       parameters for certification.  The committee may wish to  
       consider authorizing the proper state agency, such as the  
       Department of Food and Agriculture, to develop a certification  
       process for laboratories.  

       It is unclear what requirements would be placed on a restaurant  
       or other food preparation establishment such as a school lunch  
       program or bakery.  This article, when referencing food,  
       discusses labeling on the package or the food itself and  
       prescribes certain requirements for the label.  Once the food is  
       prepared and presented on a plate, obvious challenges with  
       labeling arise. The authors office states that other labeling  
       schemes such as the Proposition 65 warning sign or placing the  
       consumer notice on the menu may be adequate.  Nevertheless, the  
       committee may wish to consider specific considerations for  




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       restaurants and other food preparation establishments.
        
       The Senate Committee on Rules requests that any do-pass motion  
       include a re-referral of this bill to the Senate Rules  
       Committee.
       
       SUPPORT:
       Abiquiu Organics
       Alliance for Bio-diversity
       Alliance for Democracy of Indiana
       American Corn Growers Association
       Breast Cancer Fund
       California Public Interest Research Group
       California State Naturopathy Medical Association
       Calvary Church Tennessee
       Campaign for Food Safety
       Center for Environmental Health
       Center for environmental Health
       Center for Ethics and Toxics
       Center of Concern, Washington D.C.
       Community Health Advocates
       Consumers Choice Council
       Consumers Union
       Corporate Agribusiness Research Project
       Council for Responsible Genetics
       Earth Communications Office
       Earth Justice Ministries
       Earthjustice Legal Defense Fund
       Environmental Health Coalition
       Environmental Health Fund
       Environmental Media Association
       Episcopal Diocese of California, Commission for the Environment
       Food and Farming Forum
       Food First/Institute for food and policy development
       Foundation on Economic Trends
       Friends of the Earth
       Green Party of St. Louis
       Health Care Without Harm
       Indicators Program, Redefining Progress
       Institute for Agriculture and Trade Policy
       Institute for World Religions
       Mendocino Environmental Center
       Mothers and Others for a Livable Planet
       Mothers for Natural Law
       Natural Resource Defense Council
       Northwest Coalition for Alternatives to Pesticides




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       Occidental Arts and Ecology Center
       Organic Consumers Association
       Our Lady of Victoria Missionary Sisters
       Pesticide Action Network of the United States
       Pesticide Watch
       Physicians for Social Responsibility
       Rural Advancement Foundation
       Rural Vermont
       Shalom Center, Philadelphia
       Sierra Club
       Soul of Agriculture
       Sustainable Agriculture Working Group
       Texas Organic Growers Association
       The Constellation Fund
       The Edmonds Institute
       The Foundation on Economic Trends
       The Humane Society of the United States
       The Natural Law Party of the US
       United States Public Interest Research Group
       Washington Biotechnology Action Council
       Western Sustainable Agriculture Working Group
       7 individuals

       OPPOSED:
       Agricultural Council of California
       California Bean Shippers Association
       California Farm Bureau Federation
       California Grain and Feed Association
       California Grocers Association
       California League of Food Processors
       California Manufacturers Association
       California Poultry Industry Federation
       California Restaurant Association
       California Retailers Association
       California Seed Association
       Grocery Manufacturers of America
       National Food Processors Association
       Western Growers Association