BILL ANALYSIS                                                                                                                                                                                                    �



                                                               AB 1437
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       Date of Hearing:   April 30, 2014

                         ASSEMBLY COMMITTEE ON AGRICULTURE
                           Susan Talamantes Eggman, Chair
                   AB 1437 (Mullin) - As Amended:  April 22, 2014
        
       SUBJECT  :  Medically important antimicrobials:  livestock and poultry.

        SUMMARY  :  This bill would ban the sale, in California, of a livestock  
       or poultry product if the livestock or poultry was given a medically  
       important antimicrobial (MIAM) for nontherapeutic use.  Specifically,  
        this bill  : 

          1)    Makes the following legislative findings and declarations:

               a.        The United States Food and Drug Administration  
                 (FDA), in 1977, concluded that use of antibiotics in animal  
                 feed could promote antibiotic resistance and pose a risk to  
                 human health.  Furthermore, FDA did not act on the finding.  
                  In 2013, FDA issued voluntary Guidance  for Industry (GFI)  
                 for the use of antibiotics, but this guidance is unlikely  
                 to reduce the use of nontherapeutic antibiotics due to  
                 broad exemptions; 

               b.        The health cost due to antibiotic resistance  
                 bacteria range from $16.6 billion to $26 billion annually  
                 and cost a further $35 billion in lost productivity;  

               c.        The United States Government Accountability  
                 Office's 1999 study concluded that three strains of  
                 microorganisms that cause food borne illness are resistant  
                 to antibiotics and are linked to the use of antibiotics in  
                 animals;

               d.        The United States Department of Agriculture's  
                 (USDA) multiyear voluntary survey  revealed the following:

                     i.             83% or more of swine farms, cattle feed  
                      lots, and sheep farms used antimicrobials in feed or  
                      water for health or growth promotion;

                     ii.            Many of the antimicrobials were  
                      identical or related to drugs used in human medicine;  
                      and,









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                     iii.           These drugs are used to treat serious  
                      diseases in humans.

               e.        The Clinical Infectious Diseases Journal published  
                 a report that recommends that antimicrobials should not be  
                 used in agriculture for nontherapeutic use;

               f.        The National Academy of Sciences stated that a  
                 decrease in antimicrobials use in human medicine alone will  
                 have little effect on the rise in antibiotic-resistant  
                 bacteria, and that efforts should be made to decrease the  
                 overuse of antimicrobials in animals and agriculture;

               g.        The Molecular Cell Journal published a study  
                 demonstrating that a low-dosage use of antibiotics causes a  
                 dramatic increase in genetic mutation;

               h.        The Danish Veterinary and Food Administration  
                 testified that the Danish ban of the nontherapeutic use of  
                 antibiotics in food animal production resulted in a  
                 reduction in antimicrobial resistance in multiple bacterial  
                 species;

               i.        FDA found that 80% of antibiotic drugs, and over  
                 70% of medically important antibiotic drugs, in the United  
                 States, were sold for use on food-producing animals;

               j.        A review of all scientific studies on antimicrobial  
                 use in farm animals found the following:

                     i.             That the use of antibiotics in  
                      food-producing animals leads to the development of  
                      reservoirs of antibiotic resistance and that  
                      antibiotic -resistant bacteria can spread various  
                      ways;

                     ii.             A ban on nontherapeutic antibiotic use  
                      in food-producing animals would preserve the use of  
                      antibiotics for medicine; and, 

                     iii.            A Danish ban on nontherapeutic  
                      antibiotics in food-producing animals resulted in  
                      little change in animal health, and only a modest  
                      increase in production cost.









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               aa.       The Centers for Disease Control and Prevention  
                 (CDC) concluded that overuse or misuse of antibiotics  
                 contributes to the spread of antibiotic resistance, whether  
                 in human medicine or in agriculture, and estimated that  
                 antibiotic resistance causes at least 23,000 deaths and two  
                 million illnesses every year;

               bb.       Two recent studies showed that people living close  
                 to swine farms, fields with swine manure, or swine feeding  
                 operations, had higher than average rates of antibiotic  
                 resistance infection;

               cc.       FDA routinely finds that recalled meat products  
                 have bacteria that are resistance to antibiotics used in  
                 human medicine. 

               dd.       The American Academy of pediatrics states the use  
                 of nontherapeutic antibiotics in animal production causes  
                 antibiotic resistance and causes a greater risk to  
                 children;

               ee.       Many scientific studies confirm that the  
                 nontherapeutic use of antibiotics in food-producing animals  
                 contributes to the development of antibiotic-resistant  
                 bacterial infections in people; and, 

               ff.       The spread of antibiotic-resistant bacteria poses a  
                 risk to the health of Californians, and reduced use of  
                 antibiotics for livestock production is likely to reduce  
                 the risks of the rise and spread of antibiotic-resistant  
                 bacteria through food and other pathways, thus reducing the  
                 risk to Californians.

          2)   Defines Department as the California Department of Food and  
            Agriculture (CDFA).

          3)   Defines Director as the Director (Secretary) of CDFA.

          4)   Defines exempt producer as an owner of livestock or poultry  
            that raises less than 250 animals per year or 10,000 birds per  
            year.

          5)    Defines MIAM as a drug that is both of the following:

               a.        Intended for the use of food-producing animals;  








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                 and,

               b.        Composed wholly or partly of a drug from an  
                 antimicrobials class that is listed as either "highly  
                 important," "critically important," or "important" by the  
                 FDA's GFI #152, as specified.

          6)   States MIAM includes, but is not limited to, penicillin,  
            tetracycline, macrolide, lincosamide, streptogramin,  
            aminoglycoside, sulfonamide, or cephalosporin.

          7)   Defines a non-customary situation as a situation that does  
            not include normal or standard practices and conditions on the  
            premises that facilitates the transmission of disease.

          8)   Defines non-routine disease control (NDC) as the use of  
            antimicrobials in the feed or water of a food-producing animal  
            that is not sick, and where a particular disease or infection  
            is, or is likely to be, present on the premises because of a  
            specific, non-customary situation.

          9)   Defines nontherapeutic use as either of the following:

               a.        The one-time administration of a medically  
                 important antimicrobial to a food-producing animal through  
                 feed or water, or, for purposes of poultry hatcheries,  
                 through any means, for purposes such as growth promotion,  
                 feed efficiency, weight gain, or disease prevention, other  
                 than therapeutic use or NDC; or,

               b.        Any repeated or regular pattern of administration  
                 of MIAM to food-producing animals for purposes other than  
                 therapeutic use or NDC.

          10)  Defines therapeutic use, with respect to MIAM, as use for the  
            specific purpose of treating an animal with a documented disease  
            or infection, and does not include the continued use after the  
            disease or infection has been resolved.

          11)  Prohibits the sale of livestock or poultry products, wholly  
            or in part, in California, if the livestock or poultry was given  
            MIAM for nontherapeutic uses.

          12)  Allows livestock or poultry products, if complying with #11  
            above, to be marketed with the claim "Raised with minimal  








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            antibiotics under California law."

          13)  Requires CDFA to implement regulations to phase in complying  
            with #11 above and applies to all livestock or poultry products  
            sold in California after January 1, 2020. 

          14)  Prohibit the sale of livestock or poultry products, wholly or  
            in part, in California, if the livestock or poultry was given  
            MIAM for NDC unless all of the following conditions are met:

               a.        There was a significant risk that a disease or  
                 infection that was present on, or was likely to be present  
                 on, the premises would be transmitted to the food-producing  
                 animal;

               b.        The administration of MIAM to the food-producing  
                 animal was necessary to prevent or reduce the risk of  
                 transmission of the disease or infection;

               c.        The MIAM was administered to the food-producing  
                 animal for the shortest duration possible to prevent or  
                 reduce the risk of transmission of the disease or  
                 infection; and,

               d.        The MIAM was administered to the fewest  
                 food-producing animals possible in order to prevent or  
                 reduce the risk of transmission of the disease or  
                 infection.

          15)  Requires a producer, as specified, to maintain and keep for  
            five years, records including prescriptions, or veterinary feed  
            directives, documenting the use and reasons for the use of  
            antibiotic for NDC.

          16)  Prohibits the sale of a livestock or poultry product, in  
            California, unless the product is constituted of livestock or  
            poultry that was slaughtered at a slaughter facility that is  
            registered with CDFA and that annually reports all of the  
            information, as specified.

          17)  Prohibits MIAM to be administered to a food-producing animal  
            unless both of the following conditions are met:

               a.        The administration of MIAM is for a therapeutic  
                 use; and,








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               b.        The MIAM is administered by, or caused to be  
                 administered by, a licensed veterinarian, as specified, as  
                 part of a valid veterinarian-client-patient relationship  
                 (VVCPR) in accordance with the California Code of  
                 Regulations, as specified, as those regulations existed on  
                 January 1, 2015.

          18)  Requires CDFA to make regulations to establish a schedule to  
            phase in implementation of this bill and requires the  
            requirements in this bill be fully implemented on and before  
            January 1, 2020.

          19)  Requires a slaughter facility to annually report to the  
            Secretary all of the following information, as specified, on a  
            schedule and in the format specified by the Secretary:

               a.        The total number of food-producing animals given a  
                 MIAM in their feed or water, or, for purposes of poultry  
                 hatcheries, through any means;

               b.        The type of MIAM administered;

               c.        The total amount of each MIAM used;

               d.        The total number of days over which MIAM was  
                 intended to be provided to the food-producing animals and  
                 the dosage of the active MIAM given to the food-producing  
                 animals.  The dosage shall be listed by the total  
                 milligrams of antibiotic used per animal, per day, or the  
                 total milliliters of the antibiotic solution used per  
                 animal, per day, and label concentration; and,

               e.        Whether the purpose for administering MIAM was for  
                 therapeutic or nontherapeutic use.  The purpose shall be  
                 categorized in a manner determined by the Secretary and  
                 shall include, at a minimum, the following categories:

                     i.             Growth promotion;

                     ii.            Disease prevention; 

                     iii.           Disease treatment; and,

                     iv.            Other information that may be deemed  








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                      necessary or important by the Secretary, producer, or  
                      slaughter facility.

               f.        The type of disease or infection to be treated or  
                 addressed by MIAM.

               g.        The owners of the livestock or poultry. 

                     i.             Defines "owners of the livestock or  
                      poultry" for purposes of reporting to CDFA, as a  
                      person who either has an ownership interest in the  
                      animals or birds or otherwise establishes management  
                      and production standards for the maintenance, care,  
                      and raising of the animals or birds.  An ownership  
                      interest includes a right or option to purchase the  
                      animals or birds for maintenance, care, or for  
                      raising.

               h.        The owner of the slaughter facility.

                     i.             Defines "owner of the slaughter  
                      facility" for purposes of reporting to CDFA, as a  
                      person who either has an ownership interest in the  
                      facility or otherwise establishes management and  
                      production standards for the facility.  An ownership  
                      interest of a slaughter facility includes a right or  
                      option to purchase the animal or poultry to be  
                      processed by the slaughter facility.

          20)  Exempts the slaughter facility from reporting the information  
            for an exempt producer.

          21)  Requires CDFA, by December 31, 2017, to develop and make  
            operational, a consumer-friendly, publicly accessible, Internet  
            Web site (web site) containing a database of the information  
            through reporting requirements.

               a.         Requires the database to be searchable and able to  
                 be useable by a wide range of users, as specified. 

               b.        Requires the web site to be designed to be easily  
                 navigable and enable users to compare and contrast the  
                 reported usage of MIAM, as specified. 

               c.        Allows CDFA to send a copy of this information to  








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                 the California Department of Public Health (DPH).

          22)  Requires civil penalties, for slaughter facilities, for  
            violations related to the sale of prohibited livestock or  
            poultry products under this bill, and regulations adopted by  
            CDFA, are as follows:

               a.        First violation:  civil penalty of up to $500;

               b.        Second violation:  civil penalties on not less than  
                 $500 and not more than $1,000; and,

               c.        Third violation:  civil penalties on not less than  
                 $300 and not more than $2,000.

          23)  Exempts slaughter facilities from civil penalties if the  
            owners made a good faith effort to ensure livestock or poultry  
            products sold in California were made from livestock and poultry  
            that meet the requirements of this bill.  

          24)  Requires civil penalties, for slaughter facilities, for  
            violations related to reporting requirements under this bill,  
            and regulations adopted by CDFA, are as follows:

               a.        First violation:  civil penalty of $100; and

               b.        Second violation:  civil penalties on not less than  
                 $200 and not more than $1,000.

          25)  Requires moneys collected from civil penalties imposed, be  
            deposited into the CDFA Fund and made available, upon  
            appropriation, to CDFA for the purposes of this bill.  

          26)  Requires CDFA to adopt any necessary regulations to implement  
            this bill. 

          27)  Provides that the provisions are severable.

        EXISTING LAW  :

       1)Requires CDFA to enforce provisions relating to the importation of  
         animals, milk and milk products, produce dealers, and other  
         agricultural regulations.  

       2)Establishes a meat and poultry inspection program and, in  








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         connection with the operation of that program by CDFA, authorizes  
         the Secretary of CDFA to adopt, by regulation, standards and  
         requirements that meet those prescribed by the Federal Meat  
         Inspection Act and the Federal Poultry Products Inspection Act.

       3)Requires the Secretary of CDFA to register over-the-counter  
         livestock drugs and regulate their use for safety and efficacy.   
         Requires a license for the retail sales of restricted livestock  
         drugs.  Requires each licensee to keep a record of each sale of a  
         restricted drug, including the kind and quantity of the drug; sale  
         date; purchaser's name, address and signature; and, any other  
         information deemed necessary by the Secretary.

        FISCAL EFFECT  :  Unknown.

        COMMENTS  :   

       Antimicrobial drugs have been widely used in human medicine since the  
       1940s.  Antimicrobial drugs have significant health benefits in both  
       human and animal medicine, and are important and valuable tools used  
       to treat and prevent illness and infection.  Incidences of  
       antimicrobial resistance have been recorded over time and, if left  
       unchecked, pose a threat to public health.

       CDC estimates that in the United States, more than two million people  
       are sickened every year with antibiotic-resistant infections, with at  
       least 23,000 infections resulting in death.  In a recent report, CDC  
       lists four core actions that fight the spread of antibiotic  
       resistance:  1) preventing infections from occurring and preventing  
       resistant bacteria from spreading; 2) tracking resistant bacteria; 3)  
       improving the use of antibiotics; and, 4) promoting the development  
       of new antibiotic and new diagnostic tests for resistant bacteria.  

       CDC notes that the use of antibiotics is the single most important  
       factor leading to antibiotic resistance around the world.  Up to 50%  
       of all antibiotics prescribed for people are either not needed or not  
       optimally effective as prescribed.  Antibiotics are also used in  
       food-producing animals for the purpose of promoting growth, which CDC  
       recommends phasing out.  

       In the past decade, FDA has worked on creating GFIs regarding the  
       judicious use of MIAM drugs in food producing animals.  In three GFI,  
       FDA has:  1) GFI #152, compiled a list of MIAM drugs categorized by  
       their importance to human health; 2) GFI #219, developed principals  
       that determine the appropriate or judicious use of such drugs, by  








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       limiting use to only when necessary to maintain animal health, and  
       with veterinary oversight or consultation; and, 3) GFI #213),  
       provided recommendations as to the implementation of the guidelines.   
       The FDA concludes that using MIAM drugs for animal growth promotion  
       or feed efficiency is not a judicious use, and that veterinary  
       oversight or consultation is necessary when using these drugs.

       In December 2013, FDA released the final draft of GFI #213.  GFI #213  
       contains nonbinding recommendations to industry regarding the use of  
       MIAM drugs in the feed and drinking water of food-producing animals.   
       The FDA intends to work with drug companies to help them voluntarily  
       implement the recommendations, which include:  1) phasing out the use  
       of MIAM drugs in food-producing animals for production purposes  
       (growth promotion and feed efficiency); and, 2) include veterinary  
       oversight of these drugs when used in the feed or water of  
       food-producing animals.

       Denmark is a case study for the banning of nontherapeutic use of  
       antibiotics on food production animals.  In 1995, Denmark banned the  
       use of antimicrobial drugs for growth promotion in livestock and has  
       continually recorded antimicrobial drug use and impacts on animal  
       health.  Denmark reports that overall use of antimicrobials in  
       livestock has decreased by 46% since 1994 and has not compromised  
       animal health or has had a significant cost increase in swine  
       production.  From 1999 to 2012, the average size of a Danish swine  
       herd has grown from 612 pigs to 2,599 pigs.  Furthermore, from 2010  
       to 2012, there was a loss of 19% of Danish pig farms. 

       This bill proposes addressing the use of MIAMs in food producing  
       animals by prohibiting the sale of livestock or poultry products  
       produced with nontherapeutic use of MIAM,  requiring livestock or  
       poultry products  sold in California to have been slaughtered in a  
       CDFA registered slaughter house, and that the slaughter houses report  
       levels of MIAM used in food producing animals. These provisions will  
       be phased in, until 2020, when they would apply to all sales of  
       livestock or poultry products in California.

       Supporters point out that the vast majority of all antibiotics sold  
       in the United States are for cattle, pigs, poultry, and other  
       livestock, with the greatest use to speed up growth and compensate  
       for crowded, unsanitary conditions.  Supporters point out that  
       numerous studies demonstrate that the use of antibiotics in animals  
       results in resistant bacteria in food animals, that these resistant  
       bacteria can spread through the food supply and the environment, and  
       can be transmitted to humans, and, as a result, more and more humans  








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       are experiencing adverse health effects.

       Thus, supporters state that the solution is clear:  antibiotics  
       should be used to treat sick animals, and in limited circumstances,  
       to control disease outbreaks, not as a production tool, and always  
       under the supervision of a veterinarian.  Furthermore, supporters  
       state there should be a report of antibiotics in food producing  
       animals use so state public health officials can better track how  
       these drugs are being used, and if there are impacts on the spread of  
       antibiotic resistant bacteria. This bill addresses these issues and  
       will help stem the antibiotic resistance crisis.

       Opponents state this bill would create a costly regulatory program  
       and reporting requirements that will not add to the health of the  
       animals, and are out of step with recent FDA actions.  Under this  
       bill, farmers and ranchers would not be able to immediately respond  
       to an animal's health needs. and instead, would require them to  
                                                                                  obtain a prescription for all MIAMs. This requirement could add costs  
       and delays, and in some circumstances, in certain rural or more  
       remote locations, even prevent care for the animal. 

       Opponents raise concerns over the legality of this legislation.  AB  
       2098, (Krekorian), Statutes of 2008, Chapter 194, requires slaughter  
       facilities to euthanize all non-ambulatory livestock. Federal law  
       only requires slaughter facilities to euthanize non-ambulatory  
       cattle.  California was sued over its attempt to regulate federally  
       inspected slaughter facilities beyond what the Federal Meat  
       Inspection Act (FMIA) requires.  FMIA prohibits states from  
       regulating slaughter facilities beyond what is required by federal  
       law.  This bill, according to opponents, attempts to do just that,  
       despite the 2012 Supreme Court decision in National Meat Association  
       v. Harris.

       CDFA's Meat, Poultry and Egg Safety Branch (MPES) licenses and  
       inspects meat, poultry and egg production establishments that are  
       exempt from USDA inspections.  MPES does not register or inspect meat  
       processing plants under USDA jurisdiction within the state, out of  
       state plants or international plants.  The committee may wish to  
       consider how the bill's slaughter house reporting requirement to CDFA  
       will work and if they conflict with USDA jurisdiction.

       This bill bans the sale of a livestock or poultry product if the  
       livestock or poultry was given a MIAM for nontherapeutic use, in  
       California.  Previous legislation, AB 1437 (Huffman), Statutes of  
       2010, Chapter 51, prohibits selling shelled eggs for human  








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       consumption in California, if the eggs are not produced with  
       California animal care standards.  Currently, six states, Missouri,  
       Nebraska, Alabama, Oklahoma, Kentucky, and Iowa, have filed a lawsuit  
       against California over its law requiring out of state egg producers  
       to comply with California animal care standards (Missouri vs.  
       Harris).  The committee may wish to consider if this bill will  
       provoke similar lawsuits. 

       One issue often raised about FDA's GIFs on antimicrobials, is there  
       is no mechanism to quantify if the GIF are effectively lowering the  
       use of antimicrobials or ensuring antimicrobials are used in a  
       judicious manner.  This bill does set up a mechanism for tracking the  
       use of MIAMs via the reporting requirements by slaughter houses, and  
       for slaughter houses to register with CDFA. This raises the practical  
       question of, does CDFA have the ability or the legal status to  
       register and request records from slaughter houses under USDA  
       jurisdiction or outside of the state?  The committee may wish to  
       consider exploring other options for tracking the use of MIAMs in  
       food animal production, such as on farm antimicrobial use tracking,  
       veterinary antimicrobial use tracking, or tracking of antimicrobial  
       farm use sales.

       This bill defines VVCPR, as it relates to administration of MIAMs for  
       therapeutic use, by codifying current regulations for VVCPR.  Over  
       time, if the regulations change, this could lead to different  
       definitions for VVCPR.  The committee may wish to consider if  
       codifying VVCPR for use of MIAMs, while leaving VVCPR for all other  
       aspects of veterinary medicine in regulations, is prudent public  
       policy.  The committee may further wish to consider amendments to  
       either leave VVCPR exclusively in regulations or to codify VVCPR for  
       all veterinary medicine.  

        Related Legislation  :

       SB 835 (Hill) of 2014, would codify the FDA's  GIF #213, dated  
       December 2013, by requiring the Secretary of CDFA to refuse to  
       register a livestock drug administered in the feed or drinking water  
       of food animals if such drug is a MIAM drug.  SB 835 is in the Senate  
       Committee on Appropriations.

       SB 1311 (Hill) of 2014, would require DPH to include antibiotic  
       resistant infections on the list of reportable diseases and  
       conditions.  SB 1311 is set for hearing in the Senate Committee on  
       Health.









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       SCA 23 (Florez) of 2009, would have amended the California  
       Constitution to ban the use of nontherapeutic antibiotics in any  
       animal raised for the production of any human food product starting  
       January 1, 2015.  SCA 23 was held in the Senate Committee on Rules.

       SB 416 (Florez) of 2009, would have authorized a school district to  
       make every effort to purchase poultry and meat products that have not  
       been treated with nontherapeutic antibiotics. The bill failed passage  
       in the Senate.

       SB 562 (Florez) of 2009, would have required a warning label on any  
       commercial products derived from animals produced with nontherapeutic  
       antibiotics sold for human consumption. The hearing was canceled at  
       the request of the author in the Assembly Agriculture Committee. 

       SB 1058 (Alquist), Chapter 296, Statutes of 2008, established the  
       Medical Facility Infection Control and Prevention Act, which requires  
       specified hospitals to implement procedures for screening,  
       prevention, and reporting of hospital-related infections, including  
       MRSA, an antimicrobial-resistant bacterium.

       SB 739 (Speier), Chapter 526, Statutes of 2006, established the  
       Hospital Infectious Disease Control Program, which requires DPH and  
       specified hospitals, to implement a disease surveillance and  
       hospital-associated infection prevention program.

        REGISTERED SUPPORT / OPPOSITION  :   

        Support 
        























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          American Academy of Pediatrics
          Applegate
          Black Women for Wellness 
          Blood System Research group
          Bloomberg School of Public Health 
          Breast Cancer Action
          Breast Cancer Fund
          California Certified Organic Farmers
          California Public Health Association-North
          California State Grange
          CALPIRG
          Center for Food Safety
          Children's Advocacy Institute
          Children's Hospital & Research Center, Oakland
          Clean Water Action
          Coast Action Group
          Community Environmental Council 
          Consumer Federation of California
          Consumers Union
          Endangered Habitats League
          Environment California
          Environmental Working Group
          Food & Water Watch
          Food Animals Concerns Trust
          Food Chain Workers Alliance
          Friends of the Earth 
          Health Care without Harm
          Humane Farming Association
          Infectious Disease Association of California
          John Hopkins Center for a Livable Future
          Keep Antibiotics Working
          Klamath Forest Alliance
          Natural Resources Defense Council Palomar Audubon Society
          Pesticide Action Network North America
          PEW Charitable Trust
          Physicians for Social Responsibility, Sacramento
          Physicians for Social Responsibility, SF-Bay Area
          Prevention Institute
          Roots of Change 
          Sierra Club California 
          Slow Food California
          Sustain LA
          Western Watersheds Project









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          22 Medical and Public Health Professors

           Opposition 
           

          Agricultural Council of California
          Animal Health Institute
          Association of California Egg Farmers
          California Cattlemen's Association
          California Chamber of Commerce
          California Farm Bureau Federation
          California Grain and Feed Association
          California Pork Producers Association
          California Poultry Federation
          California Veterinary Medical Association
          California Wool Growers Association
          Western United Dairymen
           

          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084