BILL ANALYSIS �
SENATE COMMITTEE ON HEALTH
Senator Ed Hernandez, O.D., Chair
BILL NO: AB 1400
AUTHOR: Committee on Jobs, Economic Development, and the
Economy
AMENDED: April 15, 2013
HEARING DATE: June 12, 2013
CONSULTANT: Melanie Moreno
SUBJECT : Export documents: expiration.
SUMMARY : Permits a person requesting an export document from
the Department of Public Health to make the request in
electronic format, and would require DPH to accept requests
submitted by email or other electronic methods, including
electronic copies of labels or advertising. Increases the term
of the export document, from six months to one year after its
issue date.
Existing law:
1.Permits, under the Sherman Food, Drug, and Cosmetic Law, a
person who ships to another state or country a food, drug,
device, or cosmetic manufactured or produced in this state to
request Department of Public Health (DPH) for an export
document to reference the shipment.
2.Requires that a person requesting an export document submit
certain information and documents to DPH, including original
labels and advertising affixed to, accompanying, or relating
to the food, drug, device, or cosmetic, and permits DPH to
accept copies if the submission of the original labels or
advertising is impractical.
3.Requires the export document to include certain identifying
information, describe DPH's authority over the product being
shipped, and state that DPH does not object to the sale of the
product in this state or the shipment of the product out of
the state. Requires the export document to expire 180 days
after its issue date.
This bill:
1.Permits a person requesting an export document to make the
request in electronic format, and requires DPH to accept
requests submitted by email or other electronic methods,
including electronic copies of labels or advertising.
Continued---
AB 1400 | Page 2
2.Requires DPH to develop procedures to expedite approval of
requests for an export document in which the labels, labeling,
and advertising affixed to, accompanying, or relating to the
food, drug, device, or cosmetic remain unchanged from a
previously approved request for an export document for that
food, drug, device, or cosmetic.
3.Increases the term of the export document, from six months to
one year, after its issue date.
4.Makes technical, clarifying changes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, minor costs of approximately $25,000 to the
Department of Public Health.
PRIOR VOTES :
Assembly Jobs, Economic Development, and the Economy: 9- 0
Assembly Appropriations:17- 0
Assembly Floor: 70- 0
COMMENTS :
1.Author's statement. This measure, a committee bill, was
introduced to address the significant backlog of requests for
export documents from DPH. Statute requires export documents
to be provided within five days, however, DPH 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 to the health standards required by 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
processing 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. According to DPH, the Export Document Program was
established in 1991 for the purpose of allowing California
manufactured foods, drugs, medical devices, and cosmetics to
be exported into other countries. There are two factors that
the Food and Drug Branch (FDB) of the DPH uses to determine
AB 1400 | Page
3
whether an export document should be issued to manufacturers.
First, following inspections of the state's manufacturers,
distributors, and wholesalers, FDB determines whether the
system of manufacture and quality control used to produce the
product is adequate. The second factor the FDB considers is
whether the product is misbranded or falsely advertised, which
is determined by a review of the labels, labeling, and
advertising at the time the export document is requested. The
length of time to process an application depends on the number
of labels included with each request. Applications vary
significantly due to the number of certificates that may be
needed and the number of products. Once the Export
Certificate/Document has been issued, it is mailed immediately
via US postal service.
3.Budget change proposal. According to DPH, foreign countries
are increasingly requiring export documents. In 2001, there
were 1,731 requests vs. 9,565 requests in 2012. Although the
program has seen significant increases in export document
requests, the staffing levels have remained at their initial
1991 levels of one full-time staff service analyst and a
half-time office technician. As part of the Governor's
2013-14 budget, DPH submitted a proposal to request an
additional three positions that it deems necessary for the
Export Document Program to alleviate the current backlog of
export document applications and reduce the processing time
from eight weeks to five days for future applications. The
proposal states that for Fiscal Year 2013-14, DPH estimates
that it will receive 10,145 certificate requests. DPH has
received several complaints from export businesses applicants
expressing frustration with delays and that complaints allege
the delays have caused business to incur storage fees and
postpone shipments of products to importing countries. The
exporting firms report that such delays impair their ability
to service customers and produce revenue to benefit the
economy.
4.Support. The California Chamber of Commerce states that this
bill improves processing time by accepting required
documentation electronically from businesses and extending the
certificate's validity to one year, which will dramatically
improve California exporters' certainty in business
operations. The California Retailers Association states that
the modest changes contained in this bill will vastly improve
trade in California and will help the state maintain its
AB 1400 | Page 4
position as a top exporting state in the nation. A number of
supporters write that these changes will help in expediting
and the approval process and reducing the current backlog, and
in turn, California becomes a more attractive export market
and companies exporting goods from California can better meet
consumer demand.
SUPPORT AND OPPOSITION :
Support: California Chamber of Commerce
California Fisheries and Seafood Institute
California League of Food Processors
California Manufacturers and Technology Association
California Retailers Association
The Grocery Manufacturers Association
Herbalife International of America
Oppose: None received
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