BILL ANALYSIS �
AB 1400
Page 1
Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1400 (Committee on JEDE) - As Amended: April 15, 2013
Policy Committee: JEDE Vote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill makes changes in the state's administration of the
Export Document Program to address an existing backlog and
streamline the process in the future. Specifically, this bill:
1)Requires the Department of Public Health (DPH), to accept
requests for an export document through electronic methods,
including email.
2)Requires DPH to develop procedures to expedite approval of
export document requests when the department previously
approved a request and the label remains unchanged.
3)Extends the term of the export document from 180 days to one
year.
FISCAL EFFECT
Minor costs of approximately $25,000 to the Department of Public
Health.
COMMENTS
1)Purpose . This measure was introduced to address the
significant backlog of requests for export documents from the
DPH. Statute requires export documents to be provided within
five days, however, the department admits to delays of up to
five to eight weeks. While businesses are not required to
obtain certificates under California law, other countries
often require the certificates for imported products in order
to certify that the manufacturer and its products are subject
AB 1400
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to the health standards required by the DPH. Prior to
applying for these export documents, the manufacturer must
already hold valid permits, certificates, registrations and
licenses to produce products in California. By improving the
process times and extending the term of the export document,
businesses will be able to arrange export transportation with
more certainty and thereby reduce costs and meet contractual
obligations.
2)Background . The Sherman Food, Drug, and Cosmetic Law,
authorizes a person who ships to another state or country to
request the DPH to issue a specified export document, which
states that the department does not object to the sale of the
food, drug, device or cosmetic in this state or the shipment
of the product to any state or country. In order to make the
request, the food, drug, device or cosmetic is required to be
manufactured or produced in this state by an individual who
has a valid registration, license, certificate, or permit, as
specified. The document request must include all labels and
advertising relating to the product, and the approximate date
of the shipment. The export label is required to be provided
within five days of application and expires after 180 days.
3)Program funding. The Export Label Program is funded through
user fees, which are deposited in the Export Document Program
Fund and available through an appropriation by the
Legislature. By statute, applicants pay a one-time fee of
$100 and a service charge at the rate of $80 per hour, at a
minimum of $25 per request. Additional costs incurred by DPH
may also be required, such as the need for additional
inspection, priority mailing, or notary services. All fees
are required to be itemized and disclosed on the statement or
invoice. In no case can the fees exceed the reasonable costs
of administering the program.
4)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081