04/28/2004 09:06 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 281                                                                                                        
     "An Act relating to labeling and identification of genetically                                                             
     modified fish and fish products."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken stated this bill is sponsored by Senator Elton.                                                                 
                                                                                                                                
Senator Elton  testified this legislation would require  genetically                                                            
modified   fish  to   be  labeled.   The  federal   Food  and   Drug                                                            
Administration (FDA) has  not approved any transgenetic fish for the                                                            
marketplace,  but the FDA  does have a pending  application  for the                                                            
approval of the  'Frankenfish', which is a farmed  salmon that would                                                            
grow  at a  much  greater  rate than  presently  farmed  fish.  This                                                            
legislation  is   similar  to  legislation  passed   in  Oregon  and                                                            
California, and is unanimously  supported by the State legislature's                                                            
Salmon  Industry Task  Force. The  Senate Resources  Committee  also                                                            
unanimously passed this legislation.                                                                                            
                                                                                                                                
Senator  Olson asked  whether any  fish currently  available in  the                                                            
marketplace has been genetically altered.                                                                                       
                                                                                                                                
Senator Elton replied,  "no", that the only genetically altered fish                                                            
approved  for sale is the  neon blinking aquarium  fish sold  in pet                                                            
stores. His  concern is related  to a pending  FDA application  that                                                            
would approve  genetic alteration  of salmon  fish. This  alteration                                                            
would  cause  the  fish  to grow  at  very  fast  rates,  and  would                                                            
subsequently  increase  the  profitability  of the  industrial  fish                                                            
makers.                                                                                                                         
                                                                                                                                
ELISE  HSIEH, Assistant  Attorney  General,  Environmental  Section,                                                            
Civil  Division, Department  of  Law, testified  via teleconference                                                             
from  an offnet  location to  the uncertainty  of  whether this  law                                                            
would be  valid when  the Food  and Drug Administration  grants  the                                                            
pending  application. The  FDA would  not likely  approve the  label                                                            
proposed  in this  legislation  because there  are  no known  health                                                            
risks  associated with  transgenic  fish.  The State  would have  to                                                            
prove the  necessity of labeling  transgenic  fish, and a threat  to                                                            
State commerce would not be an acceptable reason.                                                                               
                                                                                                                                
Ms. Hsieh  continued that  the State of  Vermont passed legislation                                                             
requiring  that hormone-produced   milk be  labeled,  and created  a                                                            
label  that specified  that the  milk did  not have  adverse  health                                                            
affects. The State  of Alaska may have to make a similar  compromise                                                            
in order to require a label for transgenic fish.                                                                                
                                                                                                                                
Senator Olson  questioned  how the states  of Oregon and  California                                                            
have justified the passage of similar legislation.                                                                              
                                                                                                                                
Ms. Hsieh was  not familiar with the  laws adopted by those  states.                                                            
She noted that  several states are  passing food-labeling  laws with                                                            
the knowledge that the FDA may challenge their laws.                                                                            
                                                                                                                                
Senator  Elton  informed  that  this  legislation   is  proposing  a                                                            
"consumer  notice", and not  a health warning.  He gave examples  of                                                            
similar  labeling,  such  as  country of  origin  labeling  and  the                                                            
labeling  of farmed  and  wild salmon  at  the grocery  level.  This                                                            
legislation  would not necessarily  pre-empt the actions  of federal                                                            
Food and Drug Administration.                                                                                                   
                                                                                                                                
Ms.  Hsieh  countered  that  existing  law  regarding  labeling  and                                                            
advertisement of halibut  and salmon does not require such labeling,                                                            
but rather allows it. Because  interstate commerce product would not                                                            
be  required to  label,  fish harvesters  could  easily  opt out  of                                                            
labeling.                                                                                                                       
                                                                                                                                
Senator Bunde  referenced the zero fiscal note for  this legislation                                                            
and asked the  fiscal impact to retail businesses.  He remarked that                                                            
imported products  would have to be  labeled at the grocery  stores.                                                            
                                                                                                                                
Senator Elton  was unsure but referred  to the required labeling  at                                                            
the grocery level of wild  and farmed salmon, and stated that he did                                                            
not hear any grocer comment  on negative economic impacts related to                                                            
the labeling.                                                                                                                   
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.