Amended in Assembly June 19, 2014

Senate Bill No. 1040

Introduced by Senator Evans

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(Coauthors: Senators DeSaulnier, Leno, and Pavley)

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(Coauthors: Assembly Members Levine and Yamada)

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February 18, 2014

An act to begin delete amend Section 25237 of the Business and Professions Code, relating to alcoholic beverages end delete begin insert add Section 110663 to, and to add Article 6.6 (commencing with Section 110808) to Chapter 5 of Part 5 of Division 104 of, the Health and Safety Code, relating to genetically engineered food. end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 1040, as amended, Evans. begin delete Alcoholic beverages: wine labeling. end delete begin insert Food labeling: genetically engineered food. end insert

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Existing law, the Sherman Food, Drug, and Cosmetic Law, makes it unlawful to manufacture, sell, deliver, hold, or offer for sale, any food that is misbranded. Food is misbranded if its labeling does not conform to specified state and federal labeling requirements regarding nutrition, nutrient content or health claims, and food allergens. Violation of this law is a misdemeanor.

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This bill, beginning January 1, 2016, would require that any food, except as provided, offered for retail sale in the state be considered misbranded if it is entirely or partially genetically engineered, as defined, and that fact is not disclosed in a specified manner. The bill would prescribe labeling requirements for a raw agricultural commodity that is genetically engineered and packaged foods, as defined, containing some products of genetic engineering. The bill would impose these labeling requirements on manufacturers and retailers, as defined, of the commodities and foods.

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Because this bill would create new crimes by expanding the number of foods that could potentially be misbranded, it would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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The Alcoholic Beverage Control Act makes it unlawful to make any representation that a wine is produced entirely from grapes grown in specified counties unless the representation is true. The act specifies that those provisions apply to representations made on labels, advertising matter, letterheads, invoices, tags, signs, business cards, and all other representations of any kind whether oral, written, or printed. A violation of the act is a misdemeanor.

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This bill would additionally provide that these provisions apply to representations made on bottles and to representations made in an electronic form. By expanding the scope of an existing crime, the bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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The Legislature finds and declares all of the
following:

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(a) California consumers have the right to know, through
labeling, whether the foods they purchase were produced with
genetic engineering, so they can make informed purchasing
decisions.

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(b) Polls consistently show that the vast majority of the members
of the public, more than 90 percent, want to know, for health,
economic, environmental, religious, and ethical reasons, if the
food they purchase was produced with genetic engineering.

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(c) Without mandatory disclosure, consumers of foods produced
through genetic engineering may unknowingly violate their dietary
and religious beliefs.

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(d) There is currently no federal or California requirement that
genetically engineered (GE) foods be labeled. In contrast, 64
countries, including three of California’s leading trading partners,
Japan, China, and the European Union member states, as well as
South Korea, Australia, Russia, and Malaysia, already have laws
mandating that foods produced through genetic engineering be
labeled.

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(e) The United States Food and Drug Administration (FDA)
does not require safety studies of GE foods. Instead, any
consultations are voluntary and GE food developers may decide
what information to provide to the FDA.

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(f) Genetic engineering of plants and animals can cause
unintended consequences. It has been demonstrated that
manipulating genes through genetic engineering and inserting
them into organisms is an imprecise process. The results are not
always predictable or controllable.

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(g) United States government scientists have stated that the
artificial insertion of genetic material into plants via genetic
engineering can increase the levels of known toxicants or allergens
in foods and create new toxicants or allergens with consequent
health concerns.

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(h) Mandatory identification of foods produced with genetic
engineering can provide a method for detecting, at a large
epidemiological scale, the potential health effects of consuming
those foods.

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(i) Numerous foreign markets with restrictions on foods
produced through genetic engineering have restricted imports of
United States crops due to concerns about genetic engineering.
Some foreign markets are choosing to purchase agricultural
products from countries other than the United States because GE
crops are not identified in the United States, which makes it
impossible for buyers to determine what does or does not meet
their national labeling laws or restrictions and thus renders United
States products less desirable.

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(j) Agricultural exports in California in 2011 generated $16.8
billion in revenue, representing 39 percent of total production.
Mandatory identification of foods produced with genetic
engineering can be a critical method of preserving the economic
value of exports or domestically sensitive markets with restrictions
on, or prohibitions against, genetic engineering. Preserving the
identity, quality, and reliability of California’s agricultural
products and exports is critical to the state’s economic well-being.

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(k) The cultivation of GE crops can have serious effects on the
environment. For example, in the year 2012, 93 percent of all soy
grown in the United States was genetically engineered to be
herbicide resistant. In fact, the vast majority of GE crops are
designed to withstand herbicides and they, therefore, promote
indiscriminate herbicide use. As a result, GE crops have caused
527 million pounds of additional herbicides to be applied to the
nation’s farmland. These toxic herbicides damage the vitality and
quality of our soil, contaminate our drinking water, and pose health
risks to consumers and farmworkers. Further, because of the
consequent massive increase in herbicide use, herbicide-resistant
weeds have developed and flourished, infesting farm fields and
roadsides, complicating weed control for farmers, and causing
farmers to resort to more and increasingly toxic herbicides.

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(l) The FDA is currently proposing approval of the first GE
salmon for human consumption. Wild Pacific salmon are a critical
natural and cultural resource of California and are under
increasing environmental stress. More than 106 major salmon
runs in northern California and the Pacific Northwest are extinct
and another 214 runs of wild salmon are at risk of extinction. An
escaped GE fish could pose additional environmental risk to
California’s already stressed wild salmon populations and coastal
ecosystems by, among other things, imposing new competitive
pressures on these populations for food and space, interfering with
effective breeding and reproduction, and spreading disease. The
west coast salmon fishing industry, including both commercial
and recreational components, has lost an estimated 72,000 jobs
during the last 20 years. In the face of market confusion, seafood
consumers may avoid purchasing salmon altogether to avoid
genetically engineered salmon which would further negatively
impact California’s wild salmon fishermen.

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(m) The people of California should have the choice to avoid
purchasing foods produced in ways that can lead to that
environmental harm.

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(n) Labeling of foods produced through genetic engineering as
provided in this act can be implemented without substantial burden
to either food producers or the government.

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begin insert SEC. 2. end insert   

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It is the intent of the Legislature, with the enactment
of this act, to require the labeling of all foods produced with
genetic engineering sold within the state, with exceptions.

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begin insert SEC. 3. end insert   

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begin insert Section 110663 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

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begin insert 110663. end insert   

A food is misbranded if its labeling does not conform
to the requirements of Section 110809.

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begin insert SEC. 4. end insert   

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begin insert Article 6.6 (commencing with Section 110808) is added
to Chapter 5 of Part 5 of Division 104 of the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

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Article begin insert 6.6. end insert   The California Right to Know Genetically
Engineered Food Act

 

begin insert 110808. end insert   

The following definitions shall apply for the purposes
of this article only:

(a) “Food” shall have the meaning set forth in Section 109935,
except that “food” as used in this article includes only food for
human consumption and not any food for consumption by animals.

(b) (1) “Genetically engineered” means produced from an
organism or organisms in which the genetic material has been
changed through the application of either of the following:

(A) (i) In vitro nucleic acid techniques, which include, but are
not limited to, recombinant deoxyribonucleic acid (DNA) or
ribonucleic acid (RNA) direct injection of nucleic acid into cells
or organelles, encapsulation, gene deletion, and doubling.

(ii) “In vitro nucleic acid techniques” include, but are not
limited to, recombinant DNA or RNA techniques that use vector
systems, and techniques involving the direct introduction into the
organisms of hereditary materials prepared outside the organisms
such as biolistics, microinjection, macroinjection, chemoporation,
electroporation, microencapsulation, and liposome fusion.

(B) Methods of fusing cells beyond the taxonomic family that
overcome natural physiological, reproductive, or recombinant
barriers, and that are not techniques used in traditional breeding
and selection such as conjugation, transduction, and hybridization.

(2) “Genetically engineered” does not include an animal who
has not itself been genetically engineered, regardless of whether
that animal has been fed or injected with any food or any drug
that has been produced through means of genetic engineering.

(c) “Label” shall have the meaning set forth in Section 109955.

(d) “Labeling” shall have the meaning set forth in Section
109960.

(e) “Manufacturer” means the person or entity that makes,
processes, combines, or packages food ingredients into a finished
product.

(f) “Organism” means any biological entity capable of
replication, reproduction, or transferring genetic material.

(g) “Packaged food” means any food offered for retail sale in
the state, other than raw food and food served, sold, or provided
ready to eat in any bake sale, restaurant, or cafeteria that are
subject to the provisions of Article 6 (commencing with Section
110660).

(h) “Raw agricultural commodity” shall have the meaning set
forth in Section 110020.

(i) “Retailer” means an establishment engaged in the business
of selling any perishable agricultural commodity or packaged food
via a storefront.

(j) “Supplier” means a person or entity that engages in the
operation of selling or distributing raw agricultural commodities
that the person or entity has produced, purchased, or acquired
from a processor.

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(a) Any raw agricultural commodity or packaged
food that is entirely or partially produced with genetic engineering
shall be labeled in accordance with this article and is misbranded
if not labeled in accordance with this article.

(b) This section does not apply to an alcoholic beverage that is
subject to the Alcoholic Beverage Control Act (Division 9
(commencing with Section 23000) of the Business and Professions
Code).

(c) This section does not apply to any food sold at a storefront
with 10 or fewer employees or a certified farmers’ market, field
retail stand, or farm stand, as defined by Sections 47004, 47030,
and 47050 of the Food and Agricultural Code.

begin insert 110809.1. end insert   

(a) (1) A manufacturer of a raw agricultural
commodity packaged for retail sale shall include the words
“Genetically Engineered” clearly and conspicuously on the front
or back of the package of that commodity.

(2) A retailer of a raw agricultural commodity that is not
separately packaged or labeled shall place a clear and conspicuous
label on the retail store shelf or bin in which that commodity is
displayed for sale.

(b) A manufacturer of packaged food containing some products
of genetic engineering shall label the product in clear and
conspicuous language on the front or back of the package of that
food product with the words “Produced with Genetic Engineering”
or “Partially Produced with Genetic Engineering.”

(c) This section shall not be construed to require a label that
lists or identifies an ingredient that was genetically engineered,
or that the words “genetically engineered” be placed immediately
preceding any common name or primary product descriptor of a
food.

(d) This section does not apply to an alcoholic beverage that is
subject to the Alcoholic Beverage Control Act (Division 9
(commencing with Section 23000) of the Business and Professions
Code).

(e) This section does not apply to any food sold at a storefront
with 10 or fewer employees or a certified farmers’ market, field
retail stand, or farm stand, as defined by Sections 47004, 47030,
and 47050 of the Food and Agricultural Code.

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(a) A person engaged in business as a manufacturer
or retailer of products who in good faith sells, offers for sale,
labels, or advertises any product in reliance on the representations
of a farmer, producer, or supplier that the product is not entirely
or partially produced with genetic engineering, shall not be found
to have violated this article unless the manufacturer or retailer
knew or should have known that the product was entirely or
partially produced with genetic engineering.

(b) A farmer, producer, or supplier who is not a retailer or
manufacturer is not liable for a violation of this article.

(c) It shall not be a violation of this article for failure to label
any of the following:

(1) Packaged food in which the materials produced through
genetic engineering account for nine-tenths of 1 percent or less of
the total weight.

(2) Food produced without knowledge or intent to use genetic
engineering.

(3) An alcoholic beverage that is subject to the Alcoholic
Beverage Control Act, set forth in Division 9 (commencing with
Section 23000) of the Business and Professions Code.

(4) Food sold at a storefront with 10 or fewer employees or a
certified farmers’ market, field retail stand, or farm stand, as
defined by Sections 47004, 47030, and 47050 of the Food and
Agricultural Code.

(d) Food is produced without knowledge or intent to use genetic
engineering under either of the following conditions:

(1) The food is lawfully certified to be labeled, marketed, and
offered for sale as “organic” pursuant to the federal Organic
Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.).

(2) (A) An independent organization has determined that the
food was produced without knowledge or intent to use genetic
engineering and has been segregated from, and not knowingly or
intentionally commingled with, foods that may have been
genetically engineered.

(B) The determination has been made pursuant to a sampling
and testing procedure that (i) is consistent with sampling and
testing principles recommended by internationally recognized
standards organizations and (ii) does not rely on testing processed
foods in which no DNA is detectable.

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This article shall become operative on January 1,
2016.

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begin insert SEC. 5. end insert   

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The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

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begin insert SEC. 6. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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SECTION 1.  

Section 25237 of the Business and Professions
Code is amended to read:

25237.  

It is unlawful to make any representation that a wine
is produced entirely from grapes grown in the counties mentioned
in Section 25236 unless the representation is true. This section
shall apply to representations made on labels, bottles, advertising
matter, letterheads, invoices, tags, signs, business cards, and all
other representations of any kind that are oral, written, electronic,
or printed.

SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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