American Bakers Association -- Bulletin

Senator Rick Santorum (R-PA) addressed the ABA Board of Directors at its dinner meeting this week. Sen. Santorum, running for re-election to the U.S. Senate, was presented with a campaign contribution from BreadPAC. He spoke at length about key issues facing the Congress this year, and in particular, the current political atmosphere surrounding the elections this fall. Santorum thanked ABA for its confirmed support on Capitol Hill and the Republican Party to enhance over-all Republican control of the Congress and the White House. Following the dinner, ABA Chairman Pat Callaghan said that "Sen. Santorum personifies what our political contributions are trying to achieve – we will provide him with as much support as possible to help him get re-elected."


ABA Board members (from left) Gary Prince of Stroehmann Bakeries, L.C. and ABA Chairman Pat Callaghan, Pepperidge Farm, Inc., with Senator Santorum, (R-PA) (center).	ABA Board during meeting in Washington, D.C. (from left): Tim Kelbel, The Kroger Co./Inter-American Foods, Inc., and Albert Lepage, Lepage Bakeries, Inc.

At its annual June meeting held this week in Washington, D.C. the ABA Board of Directors heard a comprehensive presentation from the Wheat Foods Council President, Judi Adams, Fleishman Hillard and ABA’s Marketing Committee Chairman Mark Dirkes, to review various options to "step-up" the ABA National Nutrition Education Program and to review other industry programs that have sizeable generic product promotion campaigns.

Following an extensive discussion, the Board agreed to continue funding the Nutrition Education Program at its current levels but, agreed the program should enhance its opportunities with the media, not only in print but television as well. In addition to approving the current program, the Board reviewed various programs with increased funding levels and determined that ABA should look at various ways to increase funding for a "higher profile" program and begin a dialogue with other organizations that have a vested interest in a program that promotes grain-based foods. The Board agreed to set up a subcommittee to review the funding issue and to examine what potential benefits may be derived from an increase in expenditures for such a generic program. The Board recognized that the industry collectively is already spending well over $100 million in branded advertising but concluded that the ABA program should continue to move forward and ways to improve the program should also continue to be pursued.

ABA Urges DOT to Withdraw Hours of Service Proposal
Testifies Rule Unrealistic and Unworkable

The American Bakers Association testified in strong opposition to the Department of Transportation's proposed revisions to the Hours of Service regulations. During public hearings, ABA's Vice President Robb MacKie called the proposal "unrealistic and unworkable for the wholesale baking industry" and urged DOT to withdraw the regulation.

In oral testimony, Mr. MacKie stressed concern about the rushed rulemaking schedule and specific concerns of the wholesale baking industry with several key components of the proposed regulations.

"Just as it took the Department many years to issue this proposal, it will take the wholesale baking industry some time to fully understand the complexity of the issues," said Mr. MacKie. ABA has formally requested an extension of the 90-day comment period that expires July 31, 2000.

Specifically, he mentioned the industry’s problems with so-called "weekend" provision that would require two or maybe three nighttime off-duty periods. He also shared with DOT the "administrative nightmare" of keeping track of the various different categories of drivers.

Mr. MacKie shared the views of one ABA member who felt the regulations would require the doubling of his distribution staff. That ABA member also had no idea how they would be able to recruit that many qualified drivers.

"Safety in the wholesale baking industry fleet is paramount in the minds of ABA baking companies," said Mr. MacKie. "The proposal will result in more routes (more trucks) during congested morning rush hours. Common sense suggests that if these changes were approved, the number of accidents would increase. It is difficult to see how safety is improved under these conditions."

Mr. MacKie expressed disappointment that the industry’s concerns had not been addressed early on. "ABA has consistently communicated with the Department its concerns regarding this rulemaking. We have met with DOT officials, sent letters and offered our suggestions to improve the Hours of Service rules."

ABA will continue to lead the food industry coalition in opposition to this proposal. ABA’s Fleet & Distribution Committee is meeting June 13-14 to prepare industry comments to the rule.

The American Bakers Association scored a major victory on the ergonomics issue last night when the U.S. House of Representatives voted to retain a funding prohibition in the Labor Department funding bill. In the latest effort to require OSHA’s ergonomics regulation to be based on a sound scientific and medical basis, the House defeated an amendment to restore funding for OSHA’s ergonomics rulemaking offered by Rep. Traficant (D-OH) and Rep. Weldon (R-PA) by a vote of 203-220. ABA co-chairs the business coalition leading the fight on the ergonomics issue.

"This is the second time in two years that the majority of the House has called on OSHA to slow down its reckless rush to issue the ergonomics regulation," said ABA’s Vice President Government Relations Robb MacKie, "We hope that OSHA will heed this clear message and withdraw its fatally flawed ergonomics regulation."

Last November, OSHA proposed a thousand page regulation that would require enormous changes to the wholesale baking industry. The proposal also would create a separate workers compensation system for repetitive stress injuries and possibly prohibit post-accident substance testing and employee safety incentive programs.

"We are enormously grateful to the tremendous response from bakers to our call to action on this vote," said Mr. MacKie. "Clearly, the message that our members delivered was heard by the House of Representatives."

"We also are grateful to Rep. Anne Northup (R-KY) for stepping up and including the funding prohibition in the Labor Department spending bill," said Mr. MacKie. "If not for her tenacious pursuit of commonsense and the active support of our other champions, we might not have prevailed."

The House will complete consideration of the Labor Department funding bill, H.R. 4577 next week. Senate leaders have indicted their support for the ergonomics funding prohibition. ABA will continue to lead the fight to insert sound science into the ergonomics rulemaking.

The "Truth in Regulating Act" (S.1198 was S.1244) passed the Senate May 9, 2000 by unanimous consent. The bill had strong bipartisan support. The bill would require the General Accounting Office (GAO) to review federal agency regulations when requested to do so by the House or Senate. The request would be made by the chairman or ranking member of a committee or jurisdiction on rules that have an economic impact of more than $100 million.

The request could be made after a proposed rule was published. ABA’s successful effort in the last Congress, the Congressional Review Act, gave Congress the ability to review final rules. This authority is politically costly and consequently is only applied to the most grievous agency actions.

The House bill, H.R. 3669, introduced by Sue Kelly (R-NY) has strong bipartisan support. The Administration supports the bill. ABA is a leader in the fight to improve government and rationalizing the regulatory process.

The EPA Proposed Rule for determining Total Maximum Daily Loads (TMDLs) of pollutants rewrites the Clean Water Act of 1972 making the TMDL numbers the center of the program. This proposal could require zero discharge of pollutants such as flour from bakeries and the treating of incoming as well as discharge water. Costs per bakery could be in the millions of dollars.

Bills have been introduced in the Senate (S.2417) and the House (H.R.4502) to delay the final rule for 18 months so that the National Academy of Sciences can review the TMDL program and make recommendations. Both bills have bipartisan support.

In addition, language has been included in the House HUD-VA Appropriations bill (which includes the EPA budget) which would prohibit implementation of the program.

ABA will be active in pursuing all the legislative options. ABA will continue to ask EPA to repropose the parts of the rule that got the most substantive comments and the parts where the final rule will differ significantly from the proposed rule.

The ABA Board of Directors received the latest information on the class action lawsuit pertaining to overtime for route sales personnel in Washington State. There have been a number of recent developments in the issues surrounding the case. The next few weeks could see further developments.

ABA Vice President Government Relations Robb MacKie also informed the Board about the legislative effort to seek tax equity for independent bakery product distributors. Currently, the House and Senate are pursing broader tax bills, but an opportunity to include the bakery provision may present itself this summer. The minimum wage bill may contain a package of tax provisions that could include the bakery provision.

Finally, Mr. MacKie updated the Board on the status of the health care reform conference between the Senate and House. While revised proposals have been floated to allow employees to sue their employer for "unsatisfactory treatment" from their managed care provider, the ABA remains steadfast against such proposals. As the conference enters the summer months, the likelihood of a compromise bill that contains new legal liabilities grows shorter.

ABA will soon be distributing to its members a document "Guidelines and Communications Strategy for Food Biotechnology Inquiries" to help baking companies address consumers’ concerns regarding food biotechnology. The paper should be mailed by the end of this month. For questions, please contact Lee Sanders, Vice President, Regulatory & Technical Services, at ABA. The components of this document are listed below:

The new Dietary Guidelines for Americans 2000 continue to recognize the important role grain foods play in the diet by separating the grain recommendation from the fruit and vegetable guideline. Released on May 27, the new grain guideline recommends consumers "choose a variety of grains daily, especially whole grains." In previous years, the Guidelines grouped together grain foods with fruits and vegetables.

"We are pleased the new Dietary Guidelines emphasize the importance all grain foods play in the diet by establishing a separate grain recommendation," said Judi Adams, M.S., R.D., president of the Wheat Foods Council. "Separating the grain guideline from fruits and vegetables emphasizes the need for consumers to eat the recommended six to 11 daily servings of grains, with at least three coming from whole grains. It also highlights the health and nutrition benefits grain foods provide, that may not be attained from consuming fruits and vegetables, " Ms. Adams continued.

The new Guidelines 2000 recognize enriched and fortified grain foods as important sources of folic acid, an essential nutrient in preventing neural tube birth defects and protecting against coronary heart disease and some cancers.

"The new Guidelines emphasis on grain-based foods will help increase awareness about the benefits of all grain foods, whole grain, fortified and enriched products, in the daily American diet," noted Lee Sanders, ABA Vice President, Regulatory & Technical Services.

The Guidelines 2000 were released directly before the National Nutrition Summit held May 30-31 in Washington, D.C. Both ABA and the Wheat Foods Council participated in the Summit, the first held in 30 years. The Summit reviewed the remarkable achievements in nutrition policy of the past 30 years and brought together nutrition professionals, experts in the nutrition field and consumers to discuss the direction of future nutrition policy in the new millenium.

In May, The Clinton Administration announced Food and Agricultural Biotechnology Initiatives: Strengthening Regulation and Consumer Access to Information. "These initiatives will be broadly encompassing government agencies to include USDA, FDA, EPA and the Department of State," reported Lee Sanders, ABA Vice President, Regulatory & Technical Services. The administration intends for the initiative to build consumer confidence and provide consumer information that is truthful and non-misleading to consumers. The administration is currently working out the details of this plan that will be published in the Federal Register as an advanced notice of proposed rulemaking later this summer.

"We can expect the FDA portion to include new mandatory consultation with the agency 120 days before a biotech product is introduced into the food supply; this consultation is currently voluntary," said Miss Sanders. Additionally, there will be voluntary biotech labeling guidance. Other issues that we may see included in this document are questions regarding thresholds; analytical methodology for biotech testing; third party certification and guidance on segregation," concluded Miss Sanders.

ABA will review the government proposal when it is released later this summer and will assist in formulating and coordinating industry consensus on this important proposal.

As a result of the resent USDA sponsored "Great Nutrition Debate", USDA will launch a coordinated nutrition research program on popular diets. The USDA Human Nutrition Research Centers will lead this new effort to provide science based information to American consumers to better evaluate the appropriate weight loss strategies to maintain a healthy lifestyle.

The first phase activities include a white paper, "What do we know about the Health and Nutrition Effects of Popular Weight Loss Diets?," to be completed in September 2000, will analyze existing scientific literature on weight reduction as a critical first step in helping to define the coordinate research program on weight loss strategies and health consequences. Additionally, Phase One will include an analysis of current dietary patterns and nutrition in the U.S. based on two key surveys, the USDA Continuing Survey of Food intake by Individuals and the HHS, National Health and Nutrition Examination Survey. The goals will be to understand the food patterns of a representative sample of the U.S. population and how the patterns relate to Body Mass Index (BMI) and other health indicators. The analysis will be completed in January 2001.

Phase Two will include a workshop to develop a research agenda on weight loss strategies and an evaluation of the effects of popular diets. For additional information, contact Lee Sanders, ABA Vice President, Regulatory & Technical Services.

During the final week for the Senate and Assembly to move legislation introduced this year, the Senate narrowly adopted SB 1513 sponsored by Senator Tom Hayden (D-Santa Monica). S.B. 1513 directs the Departments of Food and Agriculture, Consumer Affairs, and Health Services to convene a task force to consider whether there is a sound basis for a consumer labeling procedure for genetically engineered food, and, if so, if it could be developed in a clear, cost-effective, and administratively efficient manner. SB 1513 will be referred to the Assembly Rules Committee, where it is expected that committee jurisdiction will go to the Assembly Agriculture Committee, Chaired by Assemblyman Dean Florez (D-Fresno). The report and recommendations of the task force would be due back to the Legislature no later than January 1, 2002.

Additionally Hayden’s other study bill, SB 1514, received narrow passage. SB 1514 which would create a study to examine nutrition and the presence of genetically modified foods served in school lunch programs is on the Senate Floor awaiting consideration.

At a meeting on June 7, the Assembly Agriculture Committee will review SB 2065, legislation by Senator Jim Costa (D-Fresno) that would create a new biotechnology task force to study issues related to the handling, processing, manufacturing, distribution, labeling, and marketing of foods containing genetically engineered products or ingredients. The task force would be co-chaired by the Secretaries of the California Health and Welfare Agency, California Trade and Commerce Agency, and California Department of Food and Agriculture. The task force is directed to report on the issues it studied, as well as its findings and recommendations, to the Legislature by January 1, 2002. Food industry allies will be working with Senator Costa and members of the Agriculture Committee on the issues included in the legislation.

SB 1110, Plastic Food Container Recycling Bill, Scheduled for June 20 Hearing

The Assembly Consumer Protection, Governmental Efficiency and Economic Development Committee, chaired by Assemblywoman Susan Davis (D-San Diego), has scheduled SB 1110 (Chesbro) for a hearing on Tuesday, June 20, 2000. SB 1110 proposes a new, separate recycling program and post-consumer minimum content provision for food and cosmetic plastic containers. Those containers were permanently exempted from the law in 1996 through legislation authored by former Senator Ken Maddy. The food industry is working with the California Packaging Alliance to provide broad industry opposition to SB 1110.

On June 2, a scientific review panel of the California Office of Environmental Health Hazard Assessment (OEHHA) decided not to list sodium nitrite as a development toxicant by a vote of 7-1. After two hours of testimony, the Developmental and Reproductive Toxicant Identification Committee (DARTIC) concluded that the data on sodium nitrite did not meet the "clearly shown" standard prescribed by Proposition 65. The DARTIC also voted unanimously against listing sodium nitrite as a reproductive toxicant.

Using his executive authority, Colorado Governor Bill Owens declared May 23, 2000 to be "Colorado Biotechnology Day". Owens’ proclamation included statements regarding the benefits of medical and agricultural biotechnology, as well as the economic benefits derived from biotechnology including job creation for the State of Colorado well into the new century. Specific references to agricultural biotechnology include such contributions as increased yields, farm productivity, and suitability of crops for food and other uses.

At a hearing on May 26, the Colorado Title Setting Board adopted several changes to its draft Title and Summary of proposed Initiative #265 which would require foods that contain genetically engineered ingredients to be labeled. The food industry urged the board to make changes to the summary, specifically requesting that the declarations of the proponents be removed from the summary. Although that change was made, the Board denied a challenge on the basis of the initiative violating a "single-subject" requirement.

If any other changes are made to the title and summary, any and all signatures gathered prior to the setting of a new, amended title and summary would be invalid. Proponents have until August 7 to collect the approximately 62,000 valid signatures required for the initiative to appear on the November 2000 ballot.

A group known as "Floridians For Health Rights" has received approval by the state of Florida to begin gathering signatures in an effort to place an initiative on the ballot which would mandate that all genetically modified foods be labeled as such. Foods prepared, served or sold in restaurants for immediate consumption are excluded from the labeling initiative. The level of organization and financing behind this effort is unclear at this point, but the group does not have a visible presence in the state to date.

The number of signatures required for qualification and the multiple approval steps make ballot placement for November 2000 unlikely. Florida law requires proponents of direct initiative amendments to gather over 435,000 signatures, with a deadline of August 8, and have them certified by the Attorney General and reviewed by the Supreme Court. Although the initiative is unlikely to appear on the 2000 ballot, signatures are valid for four years.

Before adjourning recently, Mississippi legislators managed to touch upon two issues of concern to the foods industry. First, legislation creating an obesity council to look into the causes of obesity and suggest solutions was discussed and then defeated. As with the Louisiana council, the primary causes for concern with SB 2729, by Sen. Deborah Dawkins (D-Harrison), were its charges to identify the economic impact that obesity-related illnesses have on the state and to develop funding recommendations for enhancing obesity prevention and management programs.

Additionally, Mississippi lawmakers enacted legislation relating to the state’s agricultural seed law, which had included regulation of genetically modified seeds. Significant changes were made to HB 292, by Rep. Stephen Holland (D-Tupelo), before its passage, making the measure more acceptable to industry.

On May 31, Assemblyman John Kelly (R-Essex) announced plans to introduce legislation that would ban the sale and distribution of irradiated products in New Jersey for five years, to allow time for researchers to investigate safety issues. Joining Assemblyman Kelly at a May 31 press conference was a representative of the Washington-based consumer group Public Citizen, as well as, the

chairman emeritus of the Department of Preventive Medicine and Community Health at the University of Medicine and Dentistry-New Jersey Medical School. Assemblyman Kelly plans to introduce his bill in early June.

The irradiation issue has received attention by New Jersey legislators previously. In 1989, New Jersey adopted a two-year moratorium on the sale of irradiated food within the state. Since that time, few irradiated products have been sold in New Jersey.

Oregon Attorney General Hardy Myers has requested concurrence of his call requesting a delay in the review to a court challenge of the proposed ballot initiative that would require labeling of genetically-engineered foods. The proposal is very similar to an initiative pending in Colorado. It is expected that final pleadings will not occur until June 16, followed by a schedule of oral arguments before the Oregon Supreme Court. Because all signatures to qualify a ballot initiative are due by July 7, 2000, it is very unlikely that the sponsors will be able to successfully gather enough signatures this year.

On Thursday, May 18, the City Council of Austin, Texas, approved a resolution supporting federal legislation calling for the labeling of foods produced through the use of biotechnology. The non-binding show of support for legislation by Rep. Dennis Kucinich (D-OH) and Sen. Barbara Boxer (D-CA) is being used by anti-biotech activists to raise the issue with Texas Gov. George W. Bush (R) during his bid for the presidency, according to statements from the Campaign to Label Genetically Engineered Foods.

As the views of the council and Gov. Bush are known to be less than symbiotic, the resolution is not expected to illicit a response from the Republican presidential candidate.

Joel Crowder, The Kroger Co., Inter-American Foods, Inc., recently accepted the 2000 Silver Anvil Award for the Association/Government/Nonprofit Organization Integrated Marketing Communications Category for the "Grains: Harvest the Energy " Campaign. The Silver Anvil award is the highest award in the public relations industry and is awarded for overall excellence. Kroger was the sponsoring grocery chain for the 1999 Memphis Pilot Program. Other participants included The Earthgrains Company; Flowers Bakeries, Inc., Interstate Bakeries Corporation; General Mills and Kellogg’s.

While consumers appreciate the nutritional benefits of grains, they cannot identify specific grain products when shopping. The Wheat Foods Council answered this need with the "Grains: Harvest the Energy" seal campaign during the three-month pilot test in Memphis. The seal was promoted with an education effort executed through media relations, in-store merchandising, advertising and community-oriented programs. The seal shifted consumer attitudes and purchasing decisions by increasing dollar and unit sales of participating products and generating a 72 percent awareness increase.

On May 31, the U.S. and EU agreed to establish a consultative Forum to review and assess the benefits and risks of biotechnology and prepare a report on these issues for the pending December 2000 U.S. - EU Summit. The forum will be comprised of a variety of individuals including backgrounds in academia; labor, business; science; agriculture; environment and consumer interests. Issues to be discussed will include food security needs of developing countries; food safety; health and environmental issues.

ABA’s Executive Leadership Development Committee is holding its next meeting September 17-19 in Washington, D.C. ABA strongly encourages companies to send executives to attend this meeting. ABA believes that this annual forum is an incredibly valuable career development tool; it helps prepare baking industry executives for leadership roles in their companies. Meeting registration materials will be mailed out in the near future. Please call Kelly Barbour at ABA if you would like to be on the mailing list.