Milling & Baking News - March 14, 2006 - 11

B U S I N E S S

House passes measure on food
safety uniformity standards
WASHINGTON - The House of Representatives voted last week to pass the National Uniformity for Food Act, a proposed
law that would direct the Food and Drug
Administration to create uniform federal
food safety standards that would supersede state laws. The bill has garnered widespread support from the food industry.
The vote was celebrated as a victory
for the baking industry, but the American Bakers Association warned further
efforts will be needed to gain passage in
the U.S. Senate.
"The National Uniformity for Food Act
of 2005 is a top priority for the American
Bakers Association and its membership,
and we thank our members for their
strong grassroots support through communications to members of the House of
Representatives," said Lee Sanders, A.B.A.
senior vice-president of government relations and public affairs. "A.B.A.'s efforts,
along with the efforts of the other coalition members, have made this victory in
the House of Representatives possible for

the entire food industry team. We look
forward to continuing our campaign as
we now shift our efforts to the Senate as
they consider this legislation."
The law is intended to supersede state
regulations such as California's Proposition 65 that have raised fear in the baking
industry that food labeling requirements
could begin to differ greatly by state.
Despite a vigorous campaign by opponents of the measure, it passed in the
House by a 283-139 vote.
"Consumers in all 50 states deserve
consistent, science-based standards governing warning requirements associated
with labeling, advertising and other forms
of communication by food companies,"
said Cal Dooley, president and chief executive officer of the Food Products Association. "This legislation creates a uniform,
national system that recognizes the role of
state and local governments in the regulation of food products and integrates them
into a national system.
"National uniformity in food laws is

I.B.C. motions court to restrict
trading in certain equity securities
KANSAS CITY - In a motion filed with
the U.S. Bankruptcy Court on Feb. 28,
Interstate Bakeries Corp.
asked the court to restrict
trading in the company's
equity securities by persons directly or indirectly
holding 2,042,851 shares
or more of the company's
stock (approximately 4.5%
of I.B.C.'s outstanding stock) and to require notice of stock holdings equal to
or greater than such amount. In addition, I.B.C. asked the court to restrict the
ability of holders of its convertible notes
to convert the notes and acquire stock
and to require holders of the convertible
notes to provide notice of their holdings
to the company. An interim hearing on
the motion was held March 3, with a
final hearing to follow on a date determined by the bankruptcy court.
In its court filing, I.B.C. said the requested restrictions are intended to
preserve certain tax net operating loss
(NOL) carryforwards that may be used
to offset taxable income it might generate in future tax years, although there
is no assurance such taxable income
will be generated.
Under the U.S. tax code, transfers by
shareholders with equity holdings of 5%
12 / Milling & Baking News, March 14, 2006

or more - under certain circumstances
- may give rise to a change in ownership that would limit the
amount of a company's
income that may be offset
for tax purposes.
According to the motion, I.B.C. estimated NOLs
of approximately $34 million for fiscal 2005 and approximately $56 million of NOLs during
the first eight periods of fiscal 2006.
Restrictions on the transfer of a

not a new concept. All meat and poultry regulated by the U.S. Department
of Agriculture have national uniformity
under the Federal Meat Inspection Act
and the Poultry Products Inspection Act.
The Nutrition Labeling and Education
Act, passed by Congress in 1990, which
mandated the Nutrition Facts Panel now
found on most food packages, also contained uniformity provisions."
There is widespread opposition among
state officials. Attorneys general in 39
states are opposed, as are the National
Conference of State Legislature and the
associations of state food and drug officials and state agriculture departments.
"If this becomes law, it's going to be
buried on a web site at the F.D.A.," said
Representative Anna Eshoo of California, who was holding a sign mandated
by California law that warned consumers about mercury levels in fish. "This
is not about consumers. This is about
special interests."
According to the Congressional Budget Office, about 200 state laws would be
affected. The government would spend at
least $100 million to answer petitions for
tougher state rules, the C.B.O. said. MBN

debtor company's equity securities
are routinely sought when a company
files for bankruptcy. However, at the
time I.B.C. entered bankruptcy in September 2004, there were no identifiable tax attributes that could be considered assets of the company. During
the course of its bankruptcy proceedings and its operational restructuring,
I.B.C. has generated sufficient NOLs
that the company determined to seek
the relief requested in order to protect
that NOL asset.
The motion filed with the court
is available for review by visiting
www.kccllc.net and following the appropriate prompts. MBN

Whole grain donuts, featuring
Ultragrain flour, at LaMar's soon
KANSAS CITY - LaMar's Donuts is introducing whole grain varieties of its
Ray's Original Glazed yeast raised donuts and plain cake donuts.
Using Ultragrain White Whole Wheat Flour, milled by ConAgra Foods Ingredients, LaMar's said the donuts will be available at its stores for a limited
period of time.
"These whole grain donuts not only taste great, but also provide more nutritional value than donuts made with refined wheat flour," said Anthony Bonelli,
LaMar's chief executive officer.
Mr. Bonelli suggests pairing the whole grain with a LaMar's Skinny Latte.
While the company said the donuts will only be available through April,
LaMar's said the new varieties would become a permanent item "if demand is
as high as we project." MBN

bakingbusiness.com / world-grain.com

http://www.kccllc.net http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - March 14, 2006

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