[Senate Report 110-420]
[From the U.S. Government Publishing Office]
110th Congress
2d Session SENATE Report
110-420
_______________________________________________________________________
Calendar No. 880
COMMERCIAL SEAFOOD CONSUMER PROTECTION ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2688
July 15, 2008.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
second session
DANIEL K. INOUYE, Hawaii, Chairman
TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER, IV, West JOHN McCAIN, Arizona
Virginia KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota GORDON H. SMITH, Oregon
BARBARA BOXER, California JOHN ENSIGN, Nevada
BILL NELSON, Florida JOHN E. SUNUNU, New Hampshire
MARIA CANTWELL, Washington JIM DeMINT, South Carolina
FRANK R. LAUTENBERG, New Jersey DAVID VITTER, Louisiana
MARK PRYOR, Arkansas JOHN THUNE, South Dakota
THOMAS CARPER, Delaware ROGER F. WICKER, Mississippi
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Jean Toal Eisen, Senior Advisor and Deputy Policy Director
Christine Kurth, Republican Staff Director and General Counsel
Paul J. Nagle, Republican Chief Counsel
Mimi Braniff, Republican Deputy Chief Counsel
Calendar No. 880
110th Congress Report
SENATE
2d Session 110-420
======================================================================
COMMERCIAL SEAFOOD CONSUMER PROTECTION ACT
_______
July 15, 2008.--Ordered to be printed
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany S. 2688]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2688) to improve the
protections afforded under Federal law to consumers from
contaminated seafood by directing the Secretary of Commerce to
establish a program, in coordination with other appropriate
Federal agencies, to strengthen activities for ensuring that
seafood sold or offered for sale to the public in or affecting
interstate commerce is fit for human consumption, and for other
purposes, having considered the same, reports favorably thereon
with an amendment (in the nature of a substitute) and
recommends that the bill (as amended) do pass.
PURPOSE OF THE BILL
The purpose of S. 2688, the Commercial Seafood Consumer
Protection Act, is to improve the protections afforded under
Federal law to consumers from contaminated seafood by
strengthening the National Oceanic and Atmospheric
Administration (NOAA) seafood inspection program to ensure that
commercially distributed seafood sold in the United States is
fit for human consumption. The bill, as reported, addresses
comments from a wide variety of stakeholders interested in the
bill, including representatives of the fishing and aquaculture
industries, conservation organizations, research institutes,
the NOAA, the Senate Committee on Health, Education, Labor and
Pensions, the Food and Drug Administration (FDA), and the
Senate Committee on Finance.
BACKGROUND AND NEEDS
While the FDA is the primary government agency that manages
food health and safety, the National Marine Fisheries Service
(NMFS) provides the public with information regarding imported
seafood products in the United States. The NMFS also conducts a
voluntary seafood inspection program on a fee-for-service basis
under the authority of the Agricultural Marketing Act of 1946.
This program employs approximately 170 people and is entirely
funded from fees it collects for its services. It primarily
utilizes one NMFS laboratory located in Pascagoula,
Mississippi, to test fish samples for a variety of contaminants
and antibiotics. On very rare occasions, the NMFS will allow
for samples to be verified and inspected at local, certified
labs. In addition, approximately 35 foreign facilities on an
approved list are certified to perform inspections, and more
facilities are being certified. It is important to note,
however, that meeting inspection standards at these overseas
facilities do not nullify the FDA standards or the mandatory
Hazard Analysis and Critical Control Point (HACCP) requirements
necessary to pass FDA import standards. All products inspected
by facilities certified by NMFS are still subject to inspection
by the FDA upon entry into the United States.
In 2005, more than 84 percent of the total fish and shellfish
consumed in the United States were imported, compared to 55
percent in 1995. China is the second largest exporter of
seafood to the United States, with Canada being the largest.
China's seafood imports into the United States were valued at
$1.9 billion in 2006, an increase of 193 percent from a value
of $550 million in 2001. This bill was prompted in part by the
2007 discovery of tainted Chinese seafood imports that
contained illegal antimicrobials, potentially cancer-causing
contaminants.
The NMFS seafood inspection program provides services beyond
the mandatory HACCP requirements including: vessel and plant
sanitation, product inspection, grading and certification,
label review, laboratory analysis, training, and consultative
and informational services. Participants in the NMFS seafood
inspection program may use official marks on compliant products
to indicate they are federally inspected. This is vital for
U.S. exports to be accepted abroad, particularly in the
European Union where a FDA certification is required on all
seafood products entering their markets. The NMFS's program
provides these certification services for approximately 2,500
foreign and domestic firms annually. The seafood inspection
program has been very successful, affecting approximately 20 to
25 percent of domestic and imported seafood consumed in the
United States.
In a January 2004 Government Accountability Office (GAO)
report titled, ``FDA's Imported Seafood Safety Program Shows
Some Progress, but Further Improvements are Needed,'' the GAO
recommended that the NMFS provide staff from its seafood
inspection program to bolster the FDA's inspection
capabilities. Currently, the NMFS is working with the FDA to
finalize a Memorandum of Understating (MOU) which includes
language authorizing the use of NMFS staff to increase and
support the FDA's efforts.
The Committee believes it is important to strengthen the MOU
that the NMFS seafood inspection program is finalizing with the
FDA to ensure that the NMFS and the FDA work efficiently and
effectively together to ensure seafood sold or offered for sale
to the public is fit for human consumption. The Committee
believes that an increase in the number of laboratories
certified by the FDA in both the United States and in countries
that export seafood to the United States is important for
increasing our ability to monitor seafood. The Committee
believes it is necessary to have increased monitoring over
imported seafood; therefore, this bill would establish an
optional procedure for dealing with cases where contaminated
shipments enter the United States and increase the number of
inspectors who are sent to a country or exporter of seafood
products to the United States to ensure that the seafood
products are of a standard consistent with the requirements
established under the Federal Food, Cosmetic, and Drug Act (21
U.S.C. 301 et.seq.). The bill would authorize $15 million for
each of fiscal years 2009 through 2013.
LEGISLATIVE HISTORY
S. 2688 was introduced in the Senate on March 4, 2008, by
Senator Inouye and is co-sponsored by Senators Stevens,
Murkowski, Bill Nelson, and Vitter. The bill was referred to
the Committee on Commerce, Science, and Transportation. On
April 24, 2008, the Committee considered the bill in an open
executive session. Senators Inouye and Stevens offered a
substitute amendment, and the Committee, without objection,
ordered S. 2688 to be favorably reported with an amendment in
the nature of a substitute.
Staff assigned to this legislation include Amanda Hallberg,
Democratic professional staff, and Todd Bertoson, Republican
senior counsel.
ESTIMATED COSTS
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 11, 2008.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2688, the Commercial
Seafood Consumer Protection Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Tyler
Kruzich.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
S. 2688--Commercial Seafood Consumer Protection Act
Summary: S. 2688 would require the Departments of Commerce
and Health and Human Services to strengthen federal efforts
related to ensuring the safety of commercially distributed
seafood.
Based on information from the Department of Commerce, CBO
estimates that implementing S. 2688 would cost $66 million over
the 2009-2013 period and $9 million after 2013, assuming
appropriation of the amounts authorized by the bill. Enacting
S. 2688 would not affect direct spending or revenues.
S. 2688 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would not affect
the budgets of state, local, or tribal governments.
By directing the Secretary of Health and Human Services to
enter into a cooperative agreement with the Secretary of
Commerce and modifying the Food and Drug Administration's
(FDA's) authority to regulate seafood safety, the bill could
impose new mandates on the private sector as defined in UMRA.
However, CBO cannot determine whether the aggregate direct cost
of complying with those mandates, if any, would exceed the
annual threshold established in UMRA ($136 million in 2008,
adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 2688 is shown in the following table.
The costs of this legislation fall within the budget functions
300 (natural resources and environment) and 550 (health).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------
2009 2010 2011 2012 2013 2009-2013
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level.......................................... 15 15 15 15 15 75
Estimated Outlays............................................ 9 12 15 15 15 66
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the start of fiscal year 2009
and that the authorized amounts will be appropriated near the
start of each year. Estimates of outlays are based on
historical spending patterns for similar activities.
S. 2688 would require the Departments of Commerce and
Health and Human Services to strengthen federal efforts related
to ensuring the safety of commercially distributed seafood.
Based on information from the Department of Commerce, CBO
expects that funds authorized to be appropriated by the bill
would be used to increase the number of domestic and
international laboratories that inspect seafood. Funds also
would be used to send inspection teams to countries that export
seafood to the United States to assess practices used in the
farming of seafood for export. Assuming appropriation of the
authorized amounts ($15 million annually over the 2009-2013
period), CBO estimates that implementing S. 2688 would cost $66
million over that period and $9 million after 2013.
Estimated impact on State, local, and tribal governments:
S. 2688 contains no intergovernmental mandates as defined in
UMRA and would not affect the budgets of State, local, or
tribal governments.
Estimated impact on the private sector: Section 2 of the
bill would direct the Secretary of Health and Human Services to
enter into a cooperative agreement with the Secretary of
Commerce to address and coordinate various regulations in order
to improve seafood safety. Efforts to carry out the agreement
could lead to more stringent requirements on importers,
exporters, sellers, and distributors of seafood. For example,
section 2 would direct the agencies to include a provision in
their agreement to establish a domestic tracking system for
seafood shipments. A tracking system could require recipients
and distributors of shipments to provide additional
information. Because the provisions of the agreement depend on
the future actions of FDA and the National Oceanic and
Atmospheric Administration, CBO cannot determine whether they
would result in new private-sector mandates. Further, section 5
of the bill would modify FDA's current authority to regulate
seafood safety by authorizing the agency to use additional
procedures for handling seafood imports. The extent to which
these provisions would result in new private-sector mandates is
also unclear.
CBO has no basis for predicting what new procedures the
agencies would set under the bill, if any, or whether those
procedures would impose additional requirements on the seafood
industry. Therefore, CBO cannot determine whether the aggregate
direct cost of complying with new private-sector mandates that
may arise as a result of the bill would exceed the annual
threshold established in UMRA ($136 million in 2008, adjusted
annually for inflation).
Estimate prepared by: Federal Costs: Tyler Kruzich and
Jeffrey LaFave; Impact on State, Local, and Tribal Governments:
Elizabeth Cove; Impact on the Private Sector: MarDestinee
Perez.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
REGULATORY IMPACT STATEMENT
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
Number of persons covered
S. 2688, as reported, would authorize appropriations to
continue and expand an existing NOAA program. This bill would
have little, if any, regulatory impact.
Economic impact
This bill, as reported, would provide authorization of $15
million for each fiscal year from 2009 through 2013 for NOAA to
carry out the purpose of this bill. These funding levels are
not expected to have an inflationary impact on the Nation's
economy.
Privacy
The reported bill would have little, if any, impact on the
personal privacy of U.S. citizens.
Paperwork
The reported bill would not increase paperwork requirements
for the private sector. The NOAA and the FDA's paperwork
requirements may increase slightly due to increasing the
certification of laboratories and the report the inspection
teams are required to publish with their findings.
CONGRESSIONALLY DIRECTED SPENDING
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section would establish the short title of this Act as
the ``Commercial Seafood Consumer Protection Act.''
Section 2. Seafood safety
This section would require the Secretary of Commerce, in
coordination with the Secretary of Health and Human Services,
to strengthen Federal activities for ensuring compliance and
quality with regard to commercially distributed seafood.
Additionally, this section would require the Secretary of
Commerce and the Secretary of Health and Human Services to
enter into an MOU to create an infrastructure that would
provide a better system for importing safe seafood. This
agreement would include provisions on how to achieve the
following:
Examine and test imported seafood;
Inspect foreign facilities;
Provide technical assistance and training to
foreign facilities and governments;
Expedite seafood imports from countries with
consistently high standards;
Generate a shipment tracking system;
Create labeling requirements;
Commission NOAA officers and employees to
examine seafood;
Share information concerning non-compliance
and new regulation; and
Conduct joint training on subjects related
to seafood inspection.
Section 3. Certified laboratories
This section would require the Secretary of Commerce, in
consultation with the Secretary of Health and Human Services,
to increase the number of laboratories certified to the
standards of the FDA to analyze seafood both in the United
States and in foreign nations that export seafood to the United
States.
Section 4. NOAA laboratories
This section would increase the number and/or capacity of
NOAA laboratories that are involved with the NMFS service
seafood inspection program.
Section 5. Contaminated seafood
This section would establish an optional procedure for
dealing with cases where contaminated shipments are found
entering the United States or if the Secretary determines that
seafood from a given country is not likely to meet Federal
standards. It would allow the Secretary of Health and Human
Services to refuse imported contaminated seafood and/or request
increased testing of seafood originating from countries where
there is reasonable evidence of contamination. It would allow
individual shipments to be admitted into the United States if
there was laboratory evidence that the shipment is consistent
with the requirements Federal Food, Cosmetic, and Drug Act (21
U.S.C. 301 et.seq.).
Section 6. Inspection teams
This section would authorize the Secretary of Commerce and
the Secretary of Health and Human Services to send inspectors
overseas to assess the methods used by seafood exporters to
ensure they are consistent with the requirements Federal Food,
Cosmetic, and Drug Act (21 U.S.C. 301 et.seq.).
Section 7. Authorization of appropriations
This section would authorize the appropriation of $15,000,000
for each fiscal year from 2009 through 2013 to implement the
provisions of S. 2688.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, the Committee states that the bill as
reported would make no change to existing law.