BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   May 3, 2011

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                    AB 88 (Huffman) - As Amended:  March 21, 2011
           
          SUBJECT  :  Food labeling: genetically engineered food.

           SUMMARY  :  Deems food to be misbranded if it is genetically 
          engineered (GE) salmon or other finfish, the product of GE 
          salmon or other finfish, and the progeny of GE salmon or other 
          finfish, as defined, and its labeling does not conspicuously 
          disclose that it is GE.

           EXISTING LAW  :

          1)Establishes, in federal law, the Food, Drug, and Cosmetic Act 
            (FDCA), enforced by the federal Food and Drug Administration 
            (FDA), to regulate the safety of food, drugs, and cosmetics.

          2)Establishes the Sherman Food, Drug, and Cosmetic Law, 
            administered by the Department of Public Health (DPH), to 
            regulate the contents, packaging, labeling, and advertising of 
            food, drugs, and cosmetics.

          3)Deems any food to be misbranded if its labeling is false or 
            misleading or if its labeling does not conform to the nutrient 
            content or health claims set forth in the federal FDCA.

          4)Makes it a misdemeanor to misbrand any food and subjects 
            violators to fines of between $1,000 and $10,000 and/or 
            imprisonment, depending on the nature of the violation.  

          5)Declares that all food labeling regulations adopted pursuant 
            to the FDCA are the food labeling regulations of this state. 

          6)Authorizes DPH, by regulation, to establish definitions and 
            standards of identity, quality, and fill of container for any 
            food, when, in its judgment, such action will promote honesty 
            and fair dealing in the interest of consumers. 

          7)Makes it unlawful to spawn, incubate, or cultivate any 
            transgenic (genetically altered) fish species or any exotic 
            species of finfish in ocean waters regulated by this state.









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           FISCAL EFFECT  :   This bill has not yet been analyzed by a fiscal 
          committee.

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  The author states that the FDA is 
            currently weighing approval of the first GE salmon for human 
            consumption and determining whether labeling of GE salmon in 
            the marketplace is warranted.  The author asserts that the 
            FDA's current review does not adequately consider the 
            potential environmental and health effects associated with GE 
            salmon, including, but not limited to, risks to native salmon 
            populations and other freshwater and marine species.  
            Furthermore, the author states that public opinion polls 
            indicate that 95% of the public wants labeling of genetically 
            modified foods and nearly 50% of the public would not eat GE 
            seafood.  According to the author, this bill is intended to 
            require the labeling of all GE salmon and other finfish 
            entering and sold within the state to provide accurate and 
            truthful labeling of these products so consumers may protect 
            their health and California's environment.

           2)BACKGROUND  .  Genetic engineering refers to the use of 
            recombinant DNA (rDNA) techniques to introduce new 
            characteristics or traits into an organism.  A GE animal is 
            one that contains a rDNA construct intended to change the 
            animal, for example by making fish grow faster.  The FDA notes 
            that genetic engineering has been used for approximately 20 
            years in the production of plants and microorganisms that make 
            food and medicine.  Many staple crops, such as corn and soy, 
            have been genetically engineered to be resistant to certain 
            herbicides.

          The FDA is responsible for regulating the safety and 
            effectiveness of GE animals because the rDNA construct meets 
            the definition of a "drug" under the FDCA as "an article 
            intended to alter the structure or function of the body of man 
            or animal."  GE animals under development can be divided into 
            six broad classes based on the intended purpose of the genetic 
            modification: a) to enhance production or food quality traits 
            (e.g., pigs with less environmentally harmful waste or faster 
            growing fish); b) to improve animal health (e.g., disease 
            resistance); c) to produce products intended for human 
            therapeutic use (e.g., pharmaceutical products or tissues for 
            transplantation; sometimes referred to as "biopharm" animals); 








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            d) to enrich or enhance the animals' interactions with humans 
            (e.g., hypo-allergenic pets); e) to develop animal models for 
            human diseases (e.g., pigs as models for cardiovascular 
            diseases); and, f) to produce industrial or consumer products 
            (e.g., fibers for multiple uses). 

          Generally, in evaluating GE animals, the FDA examines the 
            following factors: the safety of the rDNA construct to the 
            animal; the safety of the food from the animal; the 
            environmental impact; and, the extent to which the producers 
            of GE animals (referred to as "sponsors") have met the claims 
            made for those GE animals (e.g., their effectiveness).  All of 
            these factors are based on a thorough analysis of the rDNA 
            construct, its integration into the animal's DNA, and its 
            stability in the animal over multiple generations.  If the GE 
            animal is intended to be used as a source of food, the FDA 
            assesses whether it is safe to eat by evaluating the rDNA 
            construct and the health of the animal.  FDA experts in food 
            safety look carefully at the composition of the edible tissues 
            of the GE animal to determine whether its byproduct (such as 
            meat, milk, and eggs) differs in any way that affects safety 
            or nutrition from the non-GE counterparts that consumers eat 
            today.  FDA experts also evaluate whether the levels of key 
            substances such as proteins, fats, minerals, and vitamins are 
            in the same range as they are in the food consumers eat from 
            conventional animals.  If there are any differences, the FDA 
            must determine that there is a reasonable certainty of no harm 
            from any of those differences.  The FDA's food safety experts 
            also evaluate data to determine whether the GE animal poses 
            more of an allergic risk than its non-GE counterparts. 

          The FDA notes that when it approves an application for a GE 
            animal, it will generally be for a specific set of conditions 
            of use.  For GE animals, this includes the location and 
            containment conditions.  Containment refers to keeping animals 
            from leaving a physical space, or from interbreeding with 
            other populations.  Types of containment strategies include 
            physical containment, such as using netting over tanks; 
            geographic containment, such as locating an aquaculture 
            facility in conditions unfavorable for fish to survive if they 
            were to escape; and, biological containment, such as inducing 
            sterility to limit the spread of a population.

          With regard to the labeling of foods derived from GE animals, 
            the FDA applies key principles of the FDCA.  Specifically, the 








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            FDCA prohibits labeling that is false and misleading, 
            particularly with regard to material facts about the product.  
            The FDCA permits voluntary labeling about production methods, 
            as long as it is neither false nor misleading but the label 
            must include a name that accurately describes the basic nature 
            of the food.  Lastly, the FDCA states that the FDA cannot 
            require additional labeling about production methods unless it 
            is necessary to ensure that the labeling is not false or 
            misleading.

           3)FDA REVIEW OF GE SALMON  .  Typically, a new animal drug 
            application (NADA) can take as much as five to10 years from 
            when it is first filed with the FDA to reach a final 
            conclusion.  In September 2010, the FDA convened two days of 
            public hearings to review a NADA application by Aqua Bounty 
            Technologies, Inc. (ABT) pending since 1995 for the approval 
            of its sterile female AquAdvantage salmon, a GE Atlantic 
            salmon containing the rDNA construct from both a traditional 
            Chinook salmon and an ocean pout, a distant relative of the 
            salmon.  Among other things, the review was designed to assess 
            the accuracy of ABT's claim that the rDNA construct enables 
            its GE salmon to grow to market weight in half the time of 
            naturally spawned salmon (16-18 months as opposed to three 
            years) and to evaluate safety and effectiveness.  The public 
            comment period for the review closed in November 2010 and the 
            FDA has no deadline for deciding whether or not to approve the 
            product.  

          According to pre-hearing documents by the FDA, GE salmon meet 
            the FDA's standard of identity for Atlantic salmon and, 
            therefore, the FDA was able to conduct analyses to determine 
            whether there were any changes in GE salmon relative to non-GE 
            Atlantic salmon, and if so, if any of those changes posed a 
            food consumption hazard.  The FDA's evaluation of the data 
            from studies provided by ABT found no direct or indirect food 
            consumption hazards.  Furthermore, the FDA reported that there 
            were no food consumption risks because no food consumption 
            hazards were identified.  The FDA's analysis also found no 
            biologically relevant differences between the GE salmon and 
            its non-GE counterparts in general composition, such as 
            vitamins, minerals, and heart healthy omega-3 and omega-6 
            fatty acids, and allergenicity (i.e. risk of causing allergic 
            reactions).  As a result, the FDA made the following 
            conclusions, based on its assessment of the data: sterile, all 
            female GE salmon are not materially different from their 








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            non-GE counterparts; food from these fish is as safe as food 
            from conventional salmon; and, there is a reasonable certainty 
            of no harm from consumption of food from GE salmon. 

          Currently, the FDA is working on the environmental assessment 
            component of ABT's application, which the agency maintains is 
            a critical component of its overall decision to approve or 
            not.  With respect to labeling of ABT's GE salmon, the FDA 
            reports that no final decision has been made but indicates 
            that its preliminary position is that the FDCA and court 
            decisions interpreting the agency's labeling authority make it 
            unlikely that the agency could require that the product be 
            labeled to indicate it is GE.

           4)FDA POSITION ON LABELING  .  According to the FDA, the relevant 
            federal court decisions interpret the FDCA to mean that the 
            FDA may require special labeling for GE food when the genetic 
            change results in a "material" difference in the food, such as 
            a difference in nutritional content or the range of uses 
            (e.g., usability for frying).  However, as interpreted by the 
            courts to date, the fact that a food comes from a GE source 
            does not, by itself, trigger required labeling, absent a 
            material change in the food itself.  The FDA maintains that 
            food labels are geared to informing consumers about the 
            attributes of the product, not about the production method.  
            As a result, courts have held that consumer desire to know is 
            not sufficient to force a manufacturer to put something on the 
            label.  The FDA states that manufacturers are free to provide 
            information, such as whether the food is GE or non-GE, to 
            consumers, provided it is truthful and not misleading.  This 
            voluntary disclosure is similar to the system used for other 
            foods, in which terms such as "natural" are used on a 
            voluntary basis to meet a growing consumer interest in the 
            information, regardless of whether or not the foods have 
            attributes that could trigger a mandatory labeling 
            requirement.  

           5)PENDING FEDERAL LEGISLATION  .  Three bills have been introduced 
            in the current congressional session to address the issue of 
            GE fish.  H.R. 520 (Don Young - AK), 112th Cong., (2011) and 
            S. 229 (Mark Begich - AK), 112th Cong., (2011) amend the FDCA 
            to deem a food to be misbranded if it contains GE fish unless 
            the food bears a label stating that it contains GE fish.  Two 
            companion bills, H.R. 521 (Don Young - AK), 112th Cong., 
            (2011) and S. 230 (Mark Begich - AK), 112th Cong., (2011), 








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            amend the FDCA to deem GE fish to be unsafe under provisions 
            related to new animal drugs and adulterated food.

           6)PRIOR LEGISLATION  . 

              a)    AB 2079 (Emmerson), Chapter 73, Statutes of 2008, 
                deems food to be misbranded if the labeling does not 
                conform to federal food allergen labeling requirements.

              b)    SB 1121 (Migden) of 2008 would have required a 
                manufacturer or producer of food to label any food 
                products that contain products from a cloned animal or its 
                progeny.  SB 1121 died on the Senate Appropriations 
                Committee Suspense File.

              c)    SB 1576 (Florez) of 2008 would have required the 
                retailer of any meats and perishable agricultural 
                commodities to provide information on the country of 
                origin of the item by means of a label or other specific 
                means at the final point of sale to consumers.  SB 1576 
                died on the Senate Appropriations Committee Suspense File.

              d)    SB 63 (Migden) of 2007, which was substantially 
                similar to SB 1121 of 2008, was vetoed by the Governor 
                because it was pre-empted by federal law and would have 
                required tracking and labeling requirements that could be 
                unworkable, costly and unenforceable.

              e)    AB 1058 (Koretz) of 2005 would have required retailers 
                of beef products to label beef produced outside the United 
                States with the country of origin, as specified.  AB 1058 
                was vetoed by the Governor because the requirements of 
                this bill would have demanded a network of tracking from 
                the rancher, to the processor, to the importer, to the 
                wholesaler, to the retailers that would be unworkable, 
                costly, and impossible to enforce.

              f)    SB 245 (Sher), Chapter 871, Statutes of 2003, makes it 
                illegal to spawn, incubate, or cultivate any transgenic 
                fish species or any exotic species of finfish in ocean 
                waters regulated by this state.

              g)    AB 2962 (Strom-Martin) of 2002 would have defined 
                transgenic fish and required that retail sales of any 
                unpackaged transgenic fish, other than by a restaurateur, 








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                be accompanied by a notice that clearly discloses to the 
                consumer that the fish is transgenic.  AB 2962 was 
                referred to the Assembly Agriculture Committee but was 
                never heard.

              h)    AB 307 (Strom-Martin) of 2002 would have defined 
                transgenic fish and made it unlawful to import, transport, 
                possess, or release alive any transgenic fish, or their 
                roe, into California, except under a permit.  AB 307 was 
                referred to the Assembly Water, Parks, and Wildlife 
                Committee but was never heard.

              i)    SB 1525 (Sher) of 2002 would have defined transgenic 
                fish; added transgenic species to the list of aquatic 
                nuisance species established in current law; and, 
                prohibited the importation of transgenic fish, or their 
                roe, including transgenic salmon, into California.  SB 
                1525 was referred to the Assembly Water, Parks, and 
                Wildlife Committee but was never heard.

              j)    SB 1610 (Bowen) of 2002 would have required the 
                packaging of certain foods to disclose the amount of trans 
                fatty acids present in the foods.  SB 1610 failed passage 
                in the Assembly Agriculture Committee.

              aa)   AJR 38 (Nation) of 2002 would have urged the FDA to 
                deny ABT's petition to market GE salmon to consumers as 
                food and impose a moratorium on the domestic marketing, 
                importation, and exportation of transgenic fish, as 
                specified.  AJR 38 was referred to the Assembly 
                Agriculture Committee but was never heard.

              bb)   AB 791 (Strom-Martin) of 2001, which was substantially 
                similar to AB 2962 of 2002, was referred to the Assembly 
                Agriculture Committee but was never heard.

              cc)   SB 1513 (Hayden) of 2000 would have required a task 
                force to be convened to consider whether GE food products 
                should be labeled and make recommendations to the 
                Legislature by January 1, 2002.  SB 1513 failed passage in 
                the Assembly Agriculture Committee.

           7)SUPPORT  .  Supporters, representing public health, food safety, 
            environmental, professional, and consumer advocacy groups, 
            assert that this bill is needed because the public has a right 








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            to know what is in the food they eat.  Supporters remain 
            particularly concerned about the potential toxicity, 
            allergenic effects, and diseases posed by the 
            commercialization of GE fish.  They also criticize the FDA's 
            initial decision to render the GE salmon safe for human 
            consumption, contending that the regulatory and approval 
            process has been insufficiently transparent, has failed to 
            provide enough time for public comment, and has accepted 
            questionable science from ABT.  They argue that distinguishing 
            GE fish from natural fish via a labeling requirement will 
            provide consumers with the information they need to make 
            better informed seafood purchasing decisions, based on concern 
            for the environment, the potential transfer of allergens and 
            other health risks, religious tenets, or personal preference.

           8)OPPOSITION  .  Opponents, representing agricultural, 
            biotechnology, manufacturing, and business groups, contend 
            that this bill presupposes an issue with food safety and 
            discourages investment in science and technology that could 
            bring about more efficient production and more nutritious 
            foods.  They contend that the FDA has determined, after 
            decades of scientific review, that GE foods are equivalent to 
            foods developed through crossbreeding and other traditional 
            methods so compulsory state labeling provides no additional 
            significant or useful information to consumers.  Opponents 
            also point out that the FDA's initial decision to render GE 
            salmon safe for consumption in the U.S. does not allow 
            production in the U.S. as these fish will be produced in 
            inland tanks in Canada and Panama.  Lastly, opponents claim 
            that labeling food derived through biotechnology only serves 
            to establish "warning labels" that create a false impression 
            that there are dangers associated with the consumption of such 
            products or that their nutritional value has been diminished.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California State Grange (sponsor)
          Center for Food Safety (sponsor)
          Ocean Conservancy (sponsor)
          American Anti-Vivisection Society
          Blue Ocean Institute
          Bon App�tit Management Company
          Breast Cancer Action








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          California Advisory Committee on Salmon and Steelhead
          California Church Impact
          California Coastal Protection Network
          California Coastkeeper Alliance
          Center for Environmental Health
          Clean Water Action California
          Coast Action Group
          Coastal Environmental Rights Foundation
          Commercial Fishermen's Organization of Morro Bay
          Consumers Union
          Crab Boat Owners Association
          Defenders of Wildlife
          Farm Sanctuary
          Fishermen's Marketing Association of Bodega Bay
          Food & Water Watch
          Friends of the Earth U.S.
          Golden Gate Fishermen's Association
          Half Moon Bay Fishermen's Marketing Association
          Heal the Bay
          Humboldt Fishermen's Marketing Association
          In Defense of Animals
          Institute for Fisheries Resources
          Institute for Responsible Technology
          Monterey Bay Aquarium
          Monterey Fisherman's Marketing Association
          Moss Landing Commercial Fishermen's Association
          Natural Resources Defense Council
          New Leaf Community Markets
          Ocean Beach People's Organic Food Market
          Oceana
          Organic Farming Research Foundation
          Pacific Coast Federation of Fishermen's Associations
          Paw PAC
          Port San Luis Fishermen's Association
          Pro-Troll Fishing Products
          Salmon Trollers Marketing Association
          San Diego Coastkeeper
          Santa Cruz Fishermen's Marketing Association
          Sierra Club California
          Small Boat Commercial Salmon Fishermen's Association
          Southern California Trawler's Association
          South Yuba River Citizens League
          Several individuals

           Opposition 








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          BIO
          BIOCOM
          California Aquaculture Association
          California Chamber of Commerce
          California Farm Bureau Federation
          California Grain and Feed Association
          California League of Food Processors
          California Seed Association
          Grocery Manufacturers Association
          Western Plant Health Association

           
          Analysis Prepared by  :    Cassie Royce / HEALTH / (916) 319-2097