BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 1381 (Evans) - Food labeling: genetically engineered food.
Amended: May 5, 2014 Policy Vote: Health 5-2, Judic.
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Urgency: No Mandate: Yes
Hearing Date: May 12, 2014 Consultant: Brendan McCarthy
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 1381 would require most genetically engineered
foods offered for sale in the state to be labeled.
Fiscal Impact:
First year costs of $1.1 million and ongoing costs of
$850,000 per year for enforcement of the bill's labelling
requirements on manufacturers, distributors, and retailers
by the Department of Public Health (General Fund).
Background: Under the state Sherman Food, Drug, and Cosmetic
Law, the Department of Public Health is required to regulate the
contents, packaging, labeling and advertising of foods, drugs,
and cosmetics. The Department enforces these requirements at
food processors and distributors. The Sherman Act deems a food
product misbranded if it is offered for sale under the name of
another food. The Department is authorized to assess civil
penalties for violations of the Sherman Act or to seek
misdemeanor penalties through the criminal justice system.
Retail food facilities are regulated by local environmental
health officers under the California Retail Food Code. Under
current law, the Department can authorize requesting counties to
inspect retail food facilities for compliance with the
requirements of the Sherman Act as well. However, under current
practice, no counties are fully enforcing the Sherman Act on
retailers.
Proposed Law: SB 1381 would require most genetically engineered
foods offered for sale in the state to be labeled.
Specific provisions of the bill would:
Define terms;
SB 1381 (Evans)
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Require any raw agricultural commodity or packaged food
that is entirely or partially produced with genetic
engineering to be labeled;
Exempt alcoholic beverages or foods sold at farmer's
markets or farm stands;
Require manufacturers of raw agricultural commodities
packaged for sale to be labeled as genetically engineered;
Require retailers to provide a label in the store for
genetically engineered raw agricultural products when not
sold in a packaged form;
Provide that a manufacturer or retailer who acts in good
faith shall not be in violation of the bill's requirements,
unless the manufacturer or retailer should have known that
the product was genetically engineered.
Related Legislation:
SB 1000 (Monning) would require certain sugar-sweetened
beverages to include a specified safety warning on the
packaging and/or at the point of sale. That bill is on this
committee's Suspense File.
SB 1138 (Padilla) would require the label of fish or
shellfish offered for sale to clearly identify the species
by its common name. That bill is on this committee's
Suspense File.
Staff Comments: By introducing a warning label for genetically
modified foods, it is likely that the demand for such products
by consumers will decline. There are indications that such
labeling requirements in the European Union have dramatically
reduced the presence of such foods in that food market. To the
extent that there are economic benefits to producing genetically
modified foods (for example, larger yields, less reliance on
pesticides, etc.),a reduction in the demand for such food
products in the state could put cost pressure on growers and
manufacturers. However, given the competitive nature of the
international agricultural markets, it is not clear whether such
costs could be passed along to California consumers.
The only costs that may be incurred by local agencies related to
crimes and infractions. Under the California Constitution, such
costs are not reimbursable by the state.
SB 1381 (Evans)
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