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| Upcoming Dates |
March 10, 2016:
DoubleTree Hotel
Modesto, CA
April 27-30, 2016:
CGFA Annual Convention The Manchester Grand Hyatt San Diego
California Animal Nutrition Conference at the DoubleTree by Hilton Fresno Convention Center
Fresno, CA
March 8-10, 2016:
2016 Golden State Dairy Management Conference
Seaside, CA
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Benefits of Belonging to CGFA
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- State & Federal Legislative Advocacy
- Industry & Small Business Issues
- Business Advocacy
- Weekly Updates on Current Issues
- Networking Opportunities
- Industry Specific Directories
- Advertising Venues
- Social Media Sites
- Cost Saving Insurance Programs
- Environmental and Safety Resource
- Continuing Education and Training
- Political Action Committee Administration
- Annual Convention
- Education Programs
- District Meetings
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FSMA Informational Seminar
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Assisting Firms with Implementation Strategies
March 10th: 9:00 am - 4:00 pm
DoubleTree Hotel in Modesto
Sponsored by:
CDFA Safe Program
California Grain & Feed Association
National Grain & Feed Association
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FDA to Hold Public Meeting on FSMA Import Programs; AFIA Urges Caution on 'Training' Offers
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FDA this week said it will hold a public meeting in College Park, Maryland, on March 21, entitled "FDA Food Safety Modernization Act: Prevention-oriented Import System Regulations and Implementation." The meeting is to allow stakeholders to discuss new import safety regulations, including the foreign supplier verification program (FSVP) that applies to both animal feed ingredients and imported components of human foods. Information on the meeting can be found on the agency website at www.fda.gov, and at the CVM FSMA page.
In a related FSMA development, the American Feed Industry Assn. (AFIA) this week cautioned its members to conduct due diligence when deciding whether to attend one of the multitude of private FSMA "training" or "compliance" seminars offered to industry since publication by FDA of the "Current Good Manufacturing Practice and Hazard Analysis & Risk-based Preventive Controls for Food for Animals" final rule, generically known as the "feed rule." "When considering whether to attend these other trainings, keep in mind not everyone has been part of discussions by the animal food industry associations (AFIA and the National Grain & Feed Assn. (NGFA)) regarding the role of CGMPs in mitigating most hazards in animal food plants; therefore, these facilities would not require preventive controls," AFIA said in a FSMA update released this week. "Don't get caught believing your facility automatically needs to implement costly preventive controls."
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Supreme Court Won't Hear Chesapeake Case; Ag Wants Appeals Court WOTUS Decision "Revisited"
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The U.S. Supreme Court this week denied a petition by the American Farm Bureau Federation (AFBF) to review EPA's controversial Chesapeake Bay watershed pollution control plan, leaving in place a lower court order affirming the agency's authority to set runoff controls for the 64,000-square-mile watershed.
In related agriculture actions against EPA, a coalition of agriculture and manufacturing groups formally asked the 6th District Court of Appeals to revisit its decision that the federal appeals court is the appropriate venue for hearing the multitude of cases filed against the agency's "waters of the U.S. (WOTUS)" rulemaking. The high court's refusal to hear the AFBF challenge to the Chesapeake Bay pollution control program means seven states in the bay's watershed must impose tough standards on nitrogen and phosphorus runoff. The cost of compliance for the seven states - New York, Pennsylvania, Maryland, Virginia, West Virginia and Delaware - will be in the billions, AFBF said in its court petition. The EPA program was challenged last November, with AFBF asking the Supreme Court to determine whether the agency has the authority under the Clean Water Act (CWA) to set and enforce total maximum daily load (TMDL) nutrient standards for the Bay. Part of the concern is not only the degree of the TMDL standards, but that the Chesapeake program could be used as a model for other watershed actions by EPA. In fact, the lower court ruling upholding agency authority said EPA's action was no different than when it sets thousands of TMDLs across the country. In the WOTUS legal wrangling, the ag groups are asking the three-judge appeals court panel to revisit its odd 1-1-1 February 22 ruling that it is the appropriate venue to hear WOTUS challenges. The industry argued the actions should first be heard in federal district courts and then move to the appellate level. Said AFBF and the National Association of Manufacturers (NAM): "The court's decision raises more questions than it answers. This case cries out for en banc review. There is a 'circuit split,' the question presented is 'an important federal question,' and a 'number of judges on the court' have come to the validity of its own precedent." The two industry groups also said the review is necessary because there is a strong chance the ruling could be overturned. If the court decides to revisit its decision, it will be months before final action.
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California Legislative Report
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By: Dennis Albiani, Legislative Advocate
Speaker Rendon to be Sworn In Monday
Monday, March 7, will be the official election and transition of the Assembly Speakership from Toni Atkins to Anthony Rendon. Rendon was elected by his caucus at the end of last year, elected by the whole of the Assembly at the onset of session in 2016 and formally takes the reigns on March 7. Rendon has announced that Carrie Cornwell will serve as his Chief of Staff, Juan Torres as a Senior Advisor and John Kasey as Communications Director. One staff change of significance is that longtime Senior Policy Advisor for the Speaker, Arnie Sowell, will be leaving the Speaker's office and going with Atkins for the remainder of her Assembly term and into the Senate. It is not anticipated that there will be significant committee changes in the near term. It was previously been announced that Assemblymember Gatto will be taking over the Assembly Utilities and Commerce Committee, vacated when Rendon became Speaker-elect and Assemblymember Dodd was selected to serve as Ag Committee chair due to a resignation. Labor Bills Could Impact Ag and Processing Industry There have been a number of labor and employment bills introduced this year that could impact agriculture, input providers and processors. The most noteworthy include the elimination of the exemption to overtime for ag field employees and the potential for indoor heat requirement regulations. AB 2757 (Lorena Gonzalez) would eliminate the current 10 hour per day overtime threshold for agricultural workers by deleting the provision of Labor Code Section 554 exempting agricultural workers covered by Industrial Welfare Commission Wage Order 14. AB 2757 would add a new Section 852 to the Labor Code to phase-in a requirement for overtime after 8 hours in a work day or 40 hours in a work week over a four-year period beginning January 1, 2017 and ending on January 1, 2020. SB 1167 (Connie Leyva) requires Cal/OSHA to propose to the Cal/OSHA Standards Board a standard protecting indoor workers from heat illness no later than July 1, 2017. This could impact warehouse operations, food processors, manufacturing and packing sheds. AB 1676 (Nora Campos) would prohibit an employer from seeking salary history information about an employment applicant and would require an employer to furnish an employment applicant with a "pay scale for a position to an applicant applying for employment." AB 1843 (Mark Stone) would prohibit an employer from asking an employment applicant to disclose or to consider in "any condition of employment" information concerning juvenile court actions. AB 1948 (Donald Wagner) provides that the penalty of one additional hour of pay to an employee who missed a meal or rest period, as provided in Labor Code 226.7, would be the sole penalty that could be imposed on the employer for that missed meal or rest period. This would disallow recovery otherwise available to the employee under the Labor Code or the Business and Professions Code. AB 2197 (Cristina Garcia) would delete a provision from the Unemployment Insurance Code that requires that the first week of a maximum of two weeks' vacation that an employer may require an employee to take before receiving Paid Family Leave benefits be applied to the seven day waiting period for receiving Paid Family Leave benefits. Groundwater Regulations Released The Department of Water Resources released the Groundwater Sustainability Act Draft Emergency Regulations and scheduled public meetings and developed a public comment process. Below is the schedule of public meetings and links to the Draft Groundwater Regulations. Monday, March 21, 2016 4:00 p.m. to 6:00 p.m. Visalia Convention Center 303 E Acequia Ave., Visalia Tuesday, March 22, 2016 1:00 p.m. to 3:00 p.m. Delhi Community Center 505 E. Central Ave., Santa Ana Friday, March 25, 2016 9:00 a.m. to 11:00 a.m. Secretary of State Building 1500 11th Street, Sacramento Additionally, an online webinar will be held Thursday, March 24, 2016 from 1:00 p.m. to 3:00 p.m. You can register ahead of time for the webinar here.
Comments on the draft GSA regulations may be submitted electronically to: SGMPS@water.ca.gov with the Subject: Draft GSP Emergency Regulations Public Comment.
Find the link to the Draft Emergency Regulations here. DWR is required to adopt the emergency regulations by June 1, 2016.
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Senate Biotech Food/Feed Labeling Battle Expands Promises Lively Floor Debate
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With Senate Agriculture Committee Chair Pat Roberts (R, KS) having this week successfully run his federal solution to state genetically engineered (GE) food/feed labeling laws through his committee in near-record time on a 14-6 vote, the dash for the Senate floor was complicated this week when Sen. Jeff Merkley (D, OR) introduced his own labeling bill, saying the bill was designed to delay the process so opposition to the Roberts' bill could build.
Merkley, ranking member of the Senate Appropriations Committee Subcommittee on Agriculture/FDA, was joined by three Democratic members of his subcommittee in introducing the bill: Sens. Dianne Feinstein (D, CA), Patrick Leahy (D, VT) and Jon Tester (D, MT), who's an organic farmer. Already in the hopper is Sen. Barbara Boxer's (D, CA) bill to federally mandate labeling of every food/feed containing a GE ingredient, which would lead, critics say, to 85-90% of all food labels carrying a GE ingredient "warning." In a related development, Dr. Richard Califf, newly approved FDA Commissioner, appeared this week before the Merkley subcommittee, chaired by Sen. Jerry Moran (R, KS), and reaffirmed in an exchange with subcommittee member Sen. Steve Daines (R, MT) that FDA has determined there is no legal justification to require biotech food labeling given the safety and the equivalence of the foods are well established. Meanwhile, Roberts continues to court his committee's ranking member Sen. Debbie Stabenow (D, MI) in hopes that the two of them can come to an agreement on how to provide consumer access to food product ingredient information. Roberts wants a voluntary system; Stabenow wants on-pack information to be mandatory. The three committee Democrats who voted for Roberts' proposal were Sen. Amy Klobuchar (D, MN), Sen. Heidi Heitkamp (D, ND), and Sen. Joe Donnelly (D, IN). Klobuchar and Heitkamp said they voted "aye" because a patchwork of state laws is unworkable, and they understand a compromise with Stabenow is forthcoming. Also in the disclosure option mix is ag committee member Donnelly, who spoke during committee consideration of Roberts' plan about an amendment he plans to offer to modify the bill in hopes of providing a labeling regime Stabenow can embrace. After the markup, Stabenow stopped short of endorsing the Donnelly approach, but did not reject it, saying it provided additional ideas for discussion. Roberts, this week, briefed Senate Majority Leader Mitch McConnell (R, KY) on his committee's action, with McConnell having pledged to Roberts "quick action" on the measure as a standalone bill. No schedule was revealed - the Senate is on recess the week of March 7 - and the Kansas lawmaker stopped short of saying all Senate Republicans were on board with his approach. The Just Label It! coalition contends there aren't 60 votes in favor of Roberts' bill, the number needed to cut off debate and formally consider the bill. However, if Stabenow embraces a bipartisan solution with Roberts, it's expected that agreement could pull as many as eight to 12 Democrats on board. Boxer called the ag committee effort "a sham bill" denying consumers the right to know what "they're feeding their kids." Roberts' bill, formally introduced shortly after his committee approved it, would preempt state labeling laws while requiring USDA to develop a voluntary labeling program to provide on-pack sources of information for consumers, e.g., websites, 1-800 numbers, bar codes, etc. The Donnelly hybrid approach would preempt the states and allow for voluntary labeling, but would review industry participation after four years, and if the percentage of the industry providing the ingredient source information is less than 85%, the packaging information would become mandatory. While the food and agriculture industries dismissed Merkley's effort as "just another mandatory labeling bill in search of a non-existent problem," the bill was endorsed by Ben & Jerry's, Consumers Union (CU), the Just Label It! coalition and Campbell's Soup Co., which announced it will label all of its products containing GE ingredients. The Merkeley's Bill would amend the federal Food, Drug & Cosmetic Act (FDCA) - Donnelly and Roberts would amend USDA's Agriculture Marketing Act (AMA) - to require food makers to "disclose" the use of GE ingredients in one of four ways as part of the current on-label ingredient list: Indicate an ingredient listed on the package is "genetically engineered;" identify GE ingredients with an asterisk, with an explanation at the end of the ingredient listing; apply a "catch-all statement" to the label stating the product was "produced with genetic engineering," or FDA would get authority to develop a symbol to be added to all labels - after consulting with the food industry - that would "clearly and conspicuously" disclose the use of GE ingredients. None of the options would be a "warning" label or be required to be on the front label. Merkley said his bill is a "uniform federal GM labeling standard with sufficient flexibility to suit manufacturing operations of various sizes and markets, while also giving national manufacturers in compliance with the federal standard a safe harbor from the potential patchwork of state laws." Also introduced this week was a bill by Sen. Lisa Murkowski (R, AK) that would require that GE Atlantic salmon, recently approved by FDA, carry a label. Murkowski's action is seen as a move to protect her state's Pacific "wild caught" salmon from market competition. Rep. Don Young (R, AK) introduced a House bill that also requires FDA to conduct a third-party environmental review.
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Obama Nominates Two to CFTC Slots
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A college professor and a hedge fund founder who use to work on Capitol Hill have been nominated by President Obama to fill the vacant Democrat and Republican commissioner slots at the Commodity Futures Trading Commission (CFTC). No word on when confirmation hearings may be held for either nominee.
To fill the GOP commissioner vacancy, Obama nominated Brian Quintenz, founder and managing principal in Saeculum Capital Management LLC, in Washington, DC. Prior to forming Saeculum, Quintenz was an outside consultant to the Global Institutional Consulting Group at Merrill Lynch, and was a senior associate for Hill-Townsend Capital. He was also a legislative assistant to former Rep. Deborah Pryce (R, OH). The Democrat commissioner nod goes to Georgetown University law professor Chris Brummer. Brummer, who has taught at Georgetown since 2009, was an academic fellow at the SEC in 2008-2009 during the financial crisis, focusing on international issues. He also sits on a board of the Financial Industry Regulatory Authority (FINRA), a private corporation acting as a self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD).
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FDA's Center for Vet Medicine Loses Long-Time Director, Top Vet Dunham
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Dr. Bernadette Dunham, director of FDA's Center for Veterinary Medicine (CVM) which regulates animal feeds, pet foods and animal drugs, notified agency stakeholders this week she will step down in April. Dunham, FDA's top veterinarian, has served as CVM director for eight years, and before that headed up the CVM Office of New Animal Drugs.
During her tenure, Dunham oversaw the collaborative effort between FDA and industry to limit the use of antibiotics on farms and to require veterinary oversight; she also led CVM efforts following enactment of the Food Safety Modernization Act (FSMA) in publishing the feed-related implementation rules, and she was lead bureaucrat in the approval of genetically engineered (GE) Atlantic salmon, the first biotech food animal approved anywhere in the world. Dunham will continue as a senior advisor to the FDA Office of Foods & Veterinary Medicine, but will dedicate most of her time to the One Health collaborative effort of the Milken Institute of Public Health at George Washington University in Washington, DC, and FDA. The program works on interdisciplinary education and training of public health professionals. "It has been an honor and privilege to work alongside such a talented, dedicated and passionate group of colleagues during my years at CVM," Dunham said. "I am extremely proud of what we have accomplished." During a national search for Dunham's replacement, Tracy Forfa, an attorney and CVM deputy director since 2008, will serve as acting center director. Prior to joining FDA, Dunham was head of the public policy team at the Washington, DC, office of the American Veterinary Medical Assn. (AVMA).
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FDA Wants to Know How it Should Regulate Manure as Fertilizer
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Agriculture needs to let FDA know how best to protect the public health when farmers use raw animal manure as fertilizer, according to a formal request for comments published by the agency this week.
While farmers, particularly organic producers, see raw manure as a cheap, non-chemical fertilizer, agency concern stems from the number of food safety episodes and product recalls resulting from bacteria, including E. coli and salmonella, found in animal waste spread on fields. As part of the agency's recent Food Safety Modernization Act (FSMA) final rule on produce safety, raw manure emerged as controversial section because the agency decided not to try and regulate use of the material until it has conducted a risk assessment, hence the call for scientific data. Producers are being urged by FDA to comply with USDA's National Organic Program (NOP) standards on manure use which set intervals between manure application and crop harvest.
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USDA Begins Shutdown of COOL
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Final rules ending country-of-origin labeling (COOL) for fresh beef, pork and chicken were published this week by USDA, following the December enactment of the FY2016 appropriations bill that included language repealing COOL. USDA's Agricultural Marketing Service (AMS) said the economic benefits of repeal total about $1.8 billion.
The COOL repeal came after the U.S. lost repeated battles in the World Trade Organization (WTO) over complaints by Canada and Mexico that the U.S. labeling scheme discriminated against the two North American neighbors. At the same time, both Canada and Mexico threatened if the U.S. did not repeal COOL, they would impose a series of retaliatory tariffs against U.S. exports to their countries. The battles over COOL continues, and as recently as this week Sen. Heidi Heitkamp (D, ND) filed an amendment to require USDA to set up a voluntary COOL labeling program that she intended to offer during Senate Agriculture Committee consideration of Chair Pat Roberts' proposal to provide federal preemption to state laws that require labeling for the use of genetically engineered (GE) ingredients. Heitkamp did not offer the amendment.
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Registration is open for the CGFA Annual Convention April 27-30, 2016 at the Manchester Grand Hyatt, San Diego!
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