BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 747 (DeSaulnier) - Public Health Impact Assessments. Amended: January 16, 2014 Policy Vote: Health 5-2 Urgency: No Mandate: No Hearing Date: January 21, 2014 Consultant: Brendan McCarthy This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 747 would authorize the Department of Public Health to request manufacturers of products contributing to a recognized public health epidemic to provide information to the Department on the public health impacts of the products. Fiscal Impact: Likely one-time costs of about $300,000 to develop and adopt regulations governing the program (General Fund). Likely ongoing costs of about $200,000 to $300,000 per year to determine which products and manufacturers would be subject to the requirements of the bill (General Fund). Likely ongoing costs of about $75,000 per year to review submitted assessments, offset by fees paid by manufacturers (new special fund). Background: Under current law, the Department of Public Health is required to regulate various consumer products, such as food and drugs. Proposed Law: SB 747 would authorize the Department of Public Health to request manufacturers of products contributing to a recognized public health epidemic to provide information to the Department on the public health impacts of the specific products. Specific provisions of the bill would: Define a "contributing product" to a recognized public health epidemic; Authorize the Department to submit a request to the largest manufacturers of products the Department has determined SB 747 (DeSaulnier) Page 1 contribute to a recognized public health epidemic; Require a written response to include an analysis of the product and mitigation strategies (however, the bill does not actually require manufacturers to respond to the Department's request); Authorize the Department to assess a fee up to $20,000 per manufacturer to cover the Department's costs to review the information submitted by a manufacturer. Staff Comments: The bill would authorize the Department to assess a fee to recover the costs to review information submitted by manufacturers. Other costs that are likely to be incurred by the Department in the implementation of the bill, such as the development of regulations and the identification of qualifying products, would not be covered by fee revenues and would be a General Fund obligation. At this time it is not clear how many recognized public health epidemics there are, as staff has been unable to find a consolidated list established by the federal agencies identified in the bill. Furthermore, there could be a great number of contributing products to each public health epidemic. For example, the causes of obesity, a widely recognized public health problem, are multiple and in some cases controversial. The cost estimates above represent a conservative estimate by committee staff of the amount of staff time the Department would need to review the scientific literature and other published reports to identify contributing products and their manufacturers.