BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                         Senator Sheila J. Kuehl, Chair


          BILL NO:       SB 63                                        
          S
          AUTHOR:        Migden                                       
          B
          AMENDED:       As Introduced
          HEARING DATE:  April 18, 2007                               
          6
          FISCAL:        Appropriations                               
          3
                                                                     
          CONSULTANT:                                                
          Patterson
                                     SUBJECT
           
                                 Food labeling
                                         
                                    SUMMARY  

          This bill requires a manufacturer or producer of food to  
          label any food products that contain products from a cloned  
          animal or its progeny.
                                         
                            CHANGES TO EXISTING LAW  
          
          Existing federal law:  
          Federal law requires the U.S. Food and Drug Administration  
          (FDA) to enforce federal food safety laws, including  
          labeling requirements, for processed foods, and requires  
          the U.S. Department of Agriculture (USDA) to enforce  
          federal food safety laws for meat and poultry. Federal law  
          says that, for any food in interstate commerce, states may  
          not directly or indirectly establish food labeling  
          standards that are not identical to federal labeling  
          standards.

          Existing state law:
          Existing state law generally conforms to federal food  
          labeling laws and regulations.  State law requires the  
          California Department of Health Services (DHS) to license  
          any person or entity that manufactures, processes or holds  
          processed foods, and also provides DHS the authority to  
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          2


          

          inspect processed foods and enforce labeling laws.   
          Existing state law also requires DHS to inspect meat  
          products and packing plants which are not inspected by  
          federal inspection authorities, and gives DHS the authority  
          to enforce applicable labeling requirements.  DHS does not  
          routinely inspect meat products or packing plants, as the  
          USDA maintains a pervasive inspection and enforcement  
          program in California.

          Existing state law requires the California Department of  
          Food and Agriculture (CDFA) to license and inspect dairy  
          farms and processors that produce milk products or products  
          resembling milk products.  State law also establishes  
          standards for dairy products, including standards for  
          bacterial levels and fat composition.
          
          This bill:  
          This bill would require a manufacturer or producer of food  
          for human consumption that contains any product from a  
          cloned animal or its progeny to label the food to indicate  
          that it contains such cloned animal products.  The bill  
          requires the food labels to be displayed in a conspicuous  
          and easily legible boldface print or type that is in clear  
          contrast to the other matter on the package, and that meets  
          the type size specifications set forth in federal  
          regulations.

          The bill would define a cloned animal as one that arises  
          from somatic cell nuclear transfer (SCNT).  The bill also  
          would define the progeny of a cloned animal as an animal  
          derived from the sexual reproduction of a cloned animal  
          with another cloned animal, or with an animal that is not  
          cloned.
                                         
                                 FISCAL IMPACT  

          Unknown.
          
                           BACKGROUND AND DISCUSSION

           Purpose of Bill
          According to the author, food from cloned animals gives  
          rise to a number of concerns relating to food safety,  
          animal welfare, biodiversity threats, and ethical and moral  





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          3


          

          challenges.  The author states that, because of these  
          concerns, consumers should have the right to know what they  
          eat.  Given the uncertainties about the safety of, and lack  
          of studies about food from cloned animals, as well as other  
          personal and societal concerns, many consumers should be  
          able to choose not to use products made from cloned  
          animals, even if the products are approved by the FDA.  The  
          author argues that, at a minimum, consumers need  
          transparency so they can make informed decisions about the  
          products they buy, and that this bill is intended to enable  
          California consumers to make knowledgeable choices about  
          food consumption based on the disclosure of information  
          concerning the makeup of that food.   

          Cloned animals
          Most animal cloning uses SCNT, a process whereby scientists  
          take an egg from a female animal and remove the  
          gene-containing nucleus.  They insert new genetic material  
          from another animal into the egg which subsequently becomes  
          a dividing embryo.  The embryo is then implanted into a  
          surrogate animal which carries it to full term and delivers  
          it like its own offspring, although the offspring is  
          genetically identical to the donor animal.  
          
          FDA draft risk assessment 
          The FDA asserts that clones are generated as breeding  
          animals, and are not likely to be used for food production.  
           It is their progeny that are generally used for food.

          In December 2006, the FDA issued a draft risk assessment of  
          the potential food consumption risks associated with cloned  
          animals, as well as an evaluation of animal health risks  
          associated with cloned animals.  The FDA noted a higher  
          frequency of adverse health outcomes in clones and their  
          surrogates, and increased risks of adverse health outcomes  
          in very young clones.  However, the FDA observed no adverse  
          health outcomes in clones or their surrogates that did not  
          appear in other animals conceived through advanced  
          reproductive technologies, such as in-vitro fertilization.

          In light of these findings, the FDA concluded that food  
          products derived from cattle, swine, and goat clones or  
          their progeny pose no more risk than food derived from  
          sexually reproduced animals.  The FDA stated that, because  





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          4


          

          no unique food consumption hazards were identified for  
          clones, food from animal clones and their progeny would be  
          subject to the same safety standards as food from any other  
          animal.  The FDA stated that there is no science-based  
          reason to recommend any additional safeguards, and offered  
          no recommendations for additional food safety measures  
          related to the human consumption of products from cattle,  
          swine or goat clones or their progeny.

          The FDA did not make a determination on the food  
          consumption risks of sheep clones, citing insufficient  
          information.  As such, the FDA recommends that products  
          from sheep clones or their progeny should not be introduced  
          into the human food supply.

          The FDA will release a final risk assessment on cloned  
          animal food products, including finalized food safety  
          recommendations and industry guidance, later this year.
                 
          Related federal legislation

          S. 414 (Mikulski) would amend the federal Food, Drug and  
          Cosmetic Act (FDCA) and the Federal Meat Inspection Act  
          (FMIA) to require the labeling of a food product that  
          contains any part of a cloned animal.  Referred to U.S.  
          Senate Committee on Health, Education, Labor and Pensions

          H.R. 992 (DeLauro) would amend the federal FDCA and FMIA to  
          require the labeling of a food product that contains any  
          part of a cloned animal.  Referred to the U.S. House  
          Subcommittee on Specialty Crops, Rural Development, and  
          Foreign Crops

          Related state legislation

          AB 1100 (Ruskin) would require a food manufacturer or  
          producer to label food products that contain any product  
          from a cloned animal or its progeny, and would define a  
          cloned animal and progeny from a cloned animal.  Referred  
          to the Assembly Health Committee
          
          Prior legislation

          AB 1058 (Koretz) would have required retailers to label  





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          5


          

          meat products offered for sale with the country or  
          countries of origin to the extent permitted under federal  
          law.  Vetoed by the Governor
          
          Arguments in support
          The Consumers Union and the Center for Food Safety contend  
          that the FDA's findings that cloned animal food products  
          are safe are based on insufficient research that does not  
          adequately determine the long-term effects of cloned animal  
          consumption on humans.  They state that many cloned animals  
          die in fetal stages or shortly after birth and require  
          drugs such as antibiotics to survive.  They also argue that  
          surrogate animals that carry cloned cells must be given  
          large dosages of hormones to carry the clone to full term.   
          Supporters contend that consumers should have the right to  
          know whether or not the foods they eat contain cloned  
          animal products.  They state that many consumer studies  
          show that consumers will not choose to consume foods that  
          contain cloned animal products, even if cloned animal  
          products are deemed safe to eat, and that without the  
          labeling requirement imposed by this bill, consumers who do  
          not want to consume products that contain cloned animal  
          products will have to avoid meats, milk, and other products  
          entirely.  Lastly, the Center for Food Safety asserts that  
          because federal law does not provide labeling requirements  
          for cloned animal food products, the provisions of this  
          bill should not be preempted by federal law.  
          
          Arguments in opposition
          Opponents contend that state-specific meat labeling is  
          pre-empted by federal law.  Additionally, opponents state  
          that the FDA has determined that there is no difference  
          between products from cloned animals and products from  
          conventionally raised animals, and that federal law  
          prohibits manufacturers from making claims on labels that  
          would declare or imply otherwise.  They argue that federal  
          courts have ruled in other mandatory labeling cases that  
          stating the presence of a factor the FDA determines to be  
          of no health or safety consequence is false and misleading,  
          and, thereby, illegal.  Opponents assert that when the FDA  
          issues its final determination on the safety of cloned  
          animal food products, it will issue labeling guidance to  
          food manufacturers that will allow processors to inform  
          their customers if they opt not to accept meat or milk  





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          6


          

          products from cloned animals.  Opponents claim that they  
          are aware that consumers are generally not accepting of  
          products of cloned animals, and that consumer preferences  
          will ultimately determine if meat and milk products from  
          cloned animals will be sold in the marketplace.  They state  
          that when the FDA makes final recommendations on such  
          products, food manufacturers and producers will abide by  
          labeling guidance provided by the agency.  

                              COMMENTS AND QUESTIONS

           1.Unclear if bill is preempted by federal law.  According  
            to DHS, the USDA has asserted that the provisions of this  
            bill would be preempted by federal law. 

          2.Disclosure needed at sale of cloned animals or their  
            progeny.  The bill implies that labeling requirements  
            will be imposed upon food products derived from a cloned  
            animal or its progeny, but does not imply that the cloned  
            animal or progeny itself should be labeled as such.  The  
            bill should ensure that manufacturers or producers are  
            aware that they are purchasing a cloned animal or its  
            progeny so that they may be able to properly label foods  
            derived from them.  A recommended amendment would be to  
            require any person that sells a cloned animal or its  
            progeny to another person for the purpose of deriving  
            food products to disclose to the purchaser that the  
            animal is a cloned animal or its progeny.
            



            Suggested amendment:     

            Page 2, line 5, after 110806, insert:

             (a) Any producer who sells or transfers any cloned animal  
            or its progeny, for the purposes of producing food for  
            human consumption, to a manufacturer or producer of food  
            for human consumption, shall disclose to the manufacturer  
            or producer that it is a cloned animal or the progeny of  
            a cloned animal. 
          
          3.Bill does not specifically apply to foods sold in the  





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          7


          

            state.  The author's intent is for the bill to impose  
            labeling requirements on foods sold in the State of  
            California.  The bill should be amended to reflect the  
            author's intent.  
            
            Suggested amendment:

            Page 2, line 5, amend subdivision (a) as follows:

             (a)  (b) A manufacturer or producer of food for human  
            consumption that  sells any food that  contains any product  
            from a cloned animal or its progeny shall label the food  
            to indicate that the food includes the product of a  
            cloned animal or its progeny.  
            
          4.State cannot enforce bill's requirements for out-of-state  
            manufacturers or producers.  Since the state cannot  
            enforce the bill's requirements for out-of-state  
            manufacturers or producers, cloned animal food products  
            could be imported into the state without a label and  
            introduced into the food supply.  A recommended amendment  
            that attempts to address this problem, although perhaps  
            not entirely, would be to impose the bill's requirements  
            upon an importer of animal food products from  
            out-of-state manufacturers or producers.
            
            Suggested amendment:

            Page 2, line 18, insert:

             (c ) An importer of food products from out-of-state  
            manufacturers or producers shall label those products,  
            pursuant to subdivision (b), if the importer has any  
            reasonable knowledge that the imported food product  
            contains any product from a cloned animal or its progeny.
           
          5.Labeling requirements too narrow.  The bill should be  
            amended to ensure that any person, other than a  
            manufacturer or producer, keeps the label on the food  
            product before it is purchased by consumers.  For  
            example, a supermarket that purchases food products from  
            a manufacturer that has labeled it as containing cloned  
            animal products should be required to either keep the  
            label, or affix a new one if necessary, before it is  





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          8


          

            placed for sale to consumers.   
          
            Suggested amendment:

            Page 2, line 18, insert:
             
             (d) Any person who purchases, or otherwise obtains any  
            food for human consumption that is labeled as containing  
            any product from a cloned animal or its progeny, must  
            retain the label on the food or affix a new label  
            indicating that the food includes the product of a cloned  
            animal or its progeny, before that food may be sold to  
            another person.  

          6.Definition of producer is unclear.  For clarity, the bill  
            should define the term producer.
            
            Suggested amendment:

            Page 2, line 18, insert:

             (e) Pursuant to this section, a producer is a livestock  
            producer that engages in the business of animal  
            production that includes, but is not limited to, the  
            birth, raising, feeding, weaning, and identifying of the  
            live animal, and generally does not engage in the  
            business of preparing any animal food which is derived  
            wholly or in part from any livestock carcass or its  
            products.

           
                                    POSITIONS  

          Support:  California Alliance for Consumer Protection
                    California Certified Organic Farmers
                    California Public Interest Research Group
                    Center for Environmental Health
                    Center for Food & Justice
                    Center for Food Safety 
                    Community Alliance with Family Farmers
                    Consumer Federation of America
                    Consumer Federation of California
                    Consumers Union
                    Food & Water Watch





          STAFF ANALYSIS OF SENATE BILL 63 (Migden)             Page  
          9


          

                    In Defense of Animals
                    Organic Consumers Association
                    Straus Family Creamery
                    
          Oppose:Agricultural Council of California
                    Biotechnology Industry Organization
                    California Cattlemen's Association
                    California Farm Bureau Federation
                    California Chamber of Commerce
                    California Grain and Feed Association
                    California Grocers Association
                    California Retailers Association
                    California Seed Association
                    California Women for Agriculture
                    Dairy Institute of California
                    Western Plant Health Association

                                     -- END -