BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1400 (Medina) - Export documents: expiration.
          
          Amended: April 15, 2013         Policy Vote: Health 9-0
          Urgency: No                     Mandate: No
          Hearing Date: June 24, 2013                             
          Consultant: Brendan McCarthy    
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 1400 would allow a person requesting an export  
          document from the Department of Public Health to make the  
          request electronically. The bill would also increase the term of  
          an export document from six months to one year.

          Fiscal Impact: 
              One-time costs of about $160,000 for upgrades to the  
              existing information technology system employed by the  
              Department of Public Health to allow for electronic  
              applications (Export Fund).

              Ongoing costs of about $25,000 to manage the upgraded  
              information technology system (Export Fund).

          Background: Under current law, exporters of food, drugs,  
          devices, or cosmetics manufactured in California under  
          California law and regulation may request an export document  
          from the Department of Public Health. Exporters can use export  
          documents to demonstrate to regulators in other states that the  
          specific product meets California regulatory standards. Current  
          law requires applicants to pay a fee to the Department of Public  
          Health. Export documents are valid for six months.

          The number of applications for export documents has increased  
          from 1,731 in 2001 to 9,565 in 2012. Because of the increase in  
          applications, the time to issue an export document is now  
          between five and eight weeks.

          The recently adopted 2013 Budget Act (awaiting action by the  
          Governor) includes funding for three additional positions at the  
          Department of Public Health to address the delays in issuing  
          export documents.








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          Proposed Law: AB 1400 would allow a person requesting an export  
          document from the Department of Public Health to make the  
          request electronically. 

          The bill would require the Department of Public Health to  
          develop procedures to expedite applications for export documents  
          pertaining to products that were previously issued export  
          documents.

          The bill would also increase the term of an export document from  
          six months to one year.