84R10691 AJZ-F

By: Alvarado H.B. No. 3499

A BILL TO BE ENTITLED

AN ACT

relating to the labeling of genetically modified food; authorizing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 6, Health and Safety Code, is amended by adding Chapter 442 to read as follows:

CHAPTER 442. LABELING OF GENETICALLY MODIFIED FOOD

Sec. 442.001. DEFINITIONS. In this chapter:

(1) "Department" means the Department of State Health Services.

(2) "DNA" means deoxyribonucleic acid.

(3) "Enzyme" means a protein that catalyzes chemical reactions of other substances without being destroyed or altered on completion of the reactions.

(4) "Executive commissioner" means the executive commissioner of the Health and Human Services Commission.

(5) "Food" means food intended for human consumption.

(6) "Genetic engineering" means a process by which a food is produced from an organism in which the genetic material has been changed through the application of:

(A) in vitro nucleic acid techniques, including recombinant DNA or RNA techniques, the direct injection of nucleic acid into cells or organelles, encapsulation, gene deletion, and doubling; or

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

(7) "In vitro nucleic acid techniques" means techniques that use vector systems, including recombinant DNA or RNA techniques, and techniques that involve the direct introduction into an organism of hereditary materials prepared outside the organism, including micro-injection, chemoporation, electroporation, micro-encapsulation, and liposome fusion.

(8) "Manufacturer" means a food manufacturer, as defined by Section 431.221.

(9) "Organism" means any biological entity capable of replicating, reproducing, or transferring genetic material.

(10) "Processed food" means any food other than a raw agricultural commodity, including any food produced from a raw agricultural commodity that has been subjected to processing such as canning, smoking, pressing, cooking, freezing, dehydrating, fermenting, or milling.

(11) "Processing aid" means a substance that is added to a food:

(A) during the processing of the food, but that is removed in some manner from the food before the food is packaged in a finished form;

(B) during processing, is converted into constituents normally present in the food, and does not significantly increase the amount of the constituents naturally found in the food; or

(C) for the substance's technical or functional effect in the processing, but is present in the finished food at levels that do not have a technical or functional effect in that finished food.

(12) "Raw agricultural commodity" has the meaning assigned by Section 431.002.

(13) "RNA" means ribonucleic acid.

Sec. 442.002. LABELING OF FOOD PRODUCED WITH GENETIC ENGINEERING. (a) Except as provided by Section 442.003, food offered for sale by a retailer shall be labeled as produced entirely or in part from genetic engineering if the food is:

(1) offered for sale in this state; and

(2) entirely or partially produced with genetic engineering.

(b) A food that is required to be labeled under Subsection (a) must be labeled as follows:

(1) a manufacturer shall label a packaged raw agricultural commodity with the clear and conspicuous words "produced with genetic engineering";

(2) a retailer shall label a raw agricultural commodity that is not separately packaged by posting a label on the retail store shelf or bin in which the commodity is displayed for sale with the clear and conspicuous words "produced with genetic engineering"; and

(3) a manufacturer shall label the package of a processed food that contains a product of genetic engineering by labeling the package with the words "partially produced with genetic engineering," "may be produced with genetic engineering," or "produced with genetic engineering."

(c) A manufacturer of a food produced entirely or in part from genetic engineering may not label the product on the package, in signage, or in advertising as "natural," "naturally made," "naturally grown," "all natural," or any other words that may mislead a consumer.

(d) This section does not require:

(1) the listing or identification of any ingredient that was genetically engineered; or

(2) the placement of the term "genetically engineered" immediately preceding any common name or primary product descriptor of a food.

Sec. 442.003. APPLICABILITY OF CHAPTER. This chapter does not apply to:

(1) food consisting entirely of an animal, or derived entirely from an animal, that has not been produced with genetic engineering, regardless of whether the animal has been fed or injected with any food, drug, or other substance produced with genetic engineering;

(2) a raw agricultural commodity or processed food derived from a raw agricultural commodity that has been grown, raised, or produced without genetic engineering, that is accompanied by a sworn statement described by Section 442.004;

(3) a processed food that would otherwise be subject to the labeling requirements of Section 442.002 solely because the food includes a processing aid or enzyme produced with genetic engineering;

(4) an alcoholic beverage, as defined by Section 1.04, Alcoholic Beverage Code;

(5) a processed food that would otherwise be subject to the labeling requirements of Section 442.002 solely because the food includes a material that has been produced with genetic engineering, if the genetically engineered materials in the aggregate do not account for more than 0.9 percent of the total weight of the processed food;

(6) food that an independent organization, approved under Section 442.005(b), has verified was not knowingly or intentionally produced from or commingled with food or seed produced with genetic engineering;

(7) food that is certified as organic under the national organic program, as defined by Section 18.001, Agriculture Code;

(8) food that is not packaged for retail sale and that is:

(A) a processed food prepared and intended for immediate human consumption; or

(B) served, sold, or otherwise provided in any restaurant or other food establishment that is primarily engaged in the sale of food prepared and intended for immediate human consumption;

(9) medical food as defined in Section 5(b) of the Orphan Drug Act (21 U.S.C. Section 360ee(b)); or

(10) milk or a milk product subject to Chapter 435.

Sec. 442.004. SWORN STATEMENT. For the purpose of this chapter, a manufacturer or retailer may rely on a sworn statement made by the person who sells a raw agricultural commodity or processed food to the manufacturer or retailer that states the commodity or food has not knowingly been produced with genetic engineering and has not been commingled with food that may have been produced with genetic engineering.

Sec. 442.005. POWERS AND DUTIES. (a) The executive commissioner may adopt rules necessary to implement this chapter.

(b) The department shall publish a list of approved independent organizations that may verify that a food has not been knowingly produced with genetic engineering.

Sec. 442.006. CIVIL PENALTY. (a) A manufacturer or retailer that violates Section 442.002 is liable to the state for a civil penalty of not more than $1,000 for each uniquely named, designated, or marketed product that is not in compliance with the labeling requirements of that section, regardless of the number of individually labeled products. Each day of a continuing violation constitutes a separate violation.

(b) A person who falsely states that a raw agricultural product or processed food has not knowingly been produced with genetic engineering and has not been commingled with food that may have been produced with genetic engineering in a sworn statement described by Section 442.004 is liable for a civil penalty of not more than $2,500 for each false sworn statement.

(c) The attorney general may sue to collect the penalties under this section.

Sec. 442.007. RETAILER LIABILITY. (a) A retailer may not be held liable under Section 442.006(a) for the failure to label a processed food as required by Section 442.002, unless the retailer is the producer or manufacturer of the processed food.

(b) A retailer may not be held liable under Section 442.006(a) for the failure to label a raw agricultural product as required by Section 442.002, if not later than 30 days after the date the retailer is notified of a violation of Section 442.002, the retailer obtains a sworn statement described by Section 442.004.

SECTION 2. This Act takes effect September 1, 2016.