BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 88
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 88 (Huffman) - As Amended:  March 21, 2011 

          Policy Committee:                              HealthVote:10 - 6 


          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires that genetically engineered (GE) salmon or 
          other finfish products prepared from those fish or the progeny 
          of GE fish be conspicuously disclosed on the label. GE fish 
          without this label will be considered misbranded. 

           FISCAL EFFECT  

          1)This bill allows the review of GE fish or fish products to 
            take place during routine inspections of food manufacturing 
            and distribution facilities and/or during investigations 
            derived from consumer complaints.  Therefore, the costs 
            associated with this legislation would be minor and absorbable 
            within existing resources. 

          2)Minor nonreimbursable costs to local government for additional 
            enforcement, offset to some extent by additional fine 
            revenues. 

           COMMENTS  

           1)Purpose  . This bill is modeled after similar legislation passed 
            in the state of Alaska in 2005 that requires labeling of all 
            genetically modified seafood. 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.  








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            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 an 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.

           3)Environmental Concerns  . In a September 2010 issue brief, Food 
            and Water Watch notes that AquaBounty Technology, the company 
            that created the GE salmon, intends to sell GE salmon eggs to 
            commercial farms to grow to full size, claiming that the 
            operators will raise fish in contained aquaculture facilities 
            that limit the possibility of escape.  However, Food and Water 
            Watch notes that if the fish do escape, the impact will be 
            severe. They cite research from scientists at Purdue 
            University which suggests that the escape of even a small 
            number of salmon could cause extinction of wild populations in 
            as little as 40 generations. The danger comes because GE fish 
            will be larger and more voracious (growing twice as fast as 
            normal salmon), they could out-compete other wild fish for 
            food and habitat. Of greater concern is the fact that their 
            own weak constitutions, not designed for life outside of 
            captivity, could mean that GE salmon only last long enough in 
            the wild to prevent natural populations from reproducing, 
            leading to a total extinction of salmon in open waters.

           4)Opposition  . BIOCOM, an organization representing the 
            biotechnology and life sciences industry, notes that the 
            federal Food and Drug Administration (FDA) closely regulates 
            the use of bioengineering and biotechnology in foods and is 
            currently reviewing the approval of consumption of genetically 








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            engineered salmon. BIOCOM argues that it should be left to the 
            FDA to determine whether or not labeling should be required on 
            these products. 
                
            5)Key Question  . While this bill does not prohibit the sale of GE 
            fish or fish products, it does require it to be labeled so 
            consumers know what they are purchasing.  The question before 
            the Legislature is whether or not consumers have a right to 
            know how their food is developed. Does the required label 
            falsely imply that the food is somehow different or presents a 
            risk to the consumer? Or does it provide the consumer with the 
            information they need to make an informed choice about the 
            products they are purchasing and the food they are consuming? 

             Precedent in Other States  . In 2005, Alaska enacted Senate Bill 
            25 to require the labeling of all products containing 
            genetically engineered fish and shell fish.  SB 25 states that 
            all genetically engineered fish will be "conspicuously labeled 
            to identify the fish or fish product as a genetically modified 
            fish or fish product" whether packaged or unpackaged. To date, 
            Congress has not taken any action to expressly regulate or 
            prohibit the labeling of genetically engineered animals; 
            therefore, it can be argued that California, like the state of 
            Alaska, is not preempted from enacting labeling requirements. 
            Also, Alaska's law has not been challenged or invalidated 
            since it was enacted; thus setting the stage for other states 
            to enact similar labeling requirements for genetically 
            engineered seafood. 

           6)Related Legislation  . In 2008, SB 1121 (Migden) would have 
            required the labeling of all food containing genetically 
            modified animals. That bill was held on the Senate 
            Appropriations committee suspense file. 

            SB 63 (Migden) in 2007 was substantially similar to SB 1121.  
            That bill was vetoed.  In his veto message, Governor 
            Schwarzenegger wrote, "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.

            Also in 2007, AB 1100 (Ruskin) had similar labeling provisions 
            to SB 63 with regard to selling and manufacturing of cloned 








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            animal products for human consumption. The original contents 
            of that bill were removed and replaced with language 
            pertaining to the child-proofing of gasoline containers. 

           7)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), 
            amend the FDCA to deem GE fish to be unsafe under provisions 
            related to new animal drugs and adulterated food.



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081