BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                         SB 27|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 27
          Author:   Hill (D)
          Amended:  9/10/15  
          Vote:     21  

           SENATE AGRICULTURE COMMITTEE:  3-0, 4/21/15
           AYES:  Galgiani, Pan, Wolk
           NO VOTE RECORDED:  Cannella, Berryhill

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/28/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SENATE FLOOR:  25-10, 6/2/15
           AYES:  Beall, Berryhill, Block, Cannella, Galgiani, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara,  
            Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan,  
            Pavley, Roth, Wieckowski, Wolk
           NOES:  Anderson, Bates, Fuller, Gaines, Moorlach, Morrell,  
            Nguyen, Nielsen, Runner, Vidak
           NO VOTE RECORDED:  Allen, De León, Glazer, Huff, Stone

          ASSEMBLY FLOOR:  Not available

           SUBJECT:   Livestock: use of antimicrobial drugs


          SOURCE:    Author


          DIGEST:  This bill restricts the use of medically important  
          antimicrobial drugs in livestock for specified purposes,  
          requires a veterinarian's prescription or feed directive for  
          use, and eliminates the over-the-counter availability of these  
          drugs; requires the California Department of Food and  








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          Agriculture (CDFA) to, in coordination with federal programs and  
          agencies, develop a program to track antimicrobial drug use in  
          livestock and the emergence of antimicrobial-resistant bacteria;  
          and requires CDFA to develop antimicrobial stewardship  
          guidelines and best management practices on the proper use of  
          these drugs.

          Assembly Amendments clarify when medically important  
          antimicrobial drugs may be used for preventative purposes,  
          provide further details regarding the CDFA antimicrobial  
          monitoring program, and levy penalties for violators of this new  
          chapter, among other amendments.  

          ANALYSIS:  

          Existing federal law: 

          1)Requires the Food and Drug Administration (FDA) to protect  
            public health by assuring the safety, effectiveness, quality,  
            and security of human and veterinary drugs.  Within FDA, the  
            Center for Veterinary Medicine regulates the manufacture and  
            distribution of drugs that will be administered to animals and  
            regulates medicated feed.

          2)Establishes the Animal Drug Availability Act in 1996 to create  
            a new regulatory category for certain animal drugs used in  
            animal feed.  Previously, drugs were only available through  
            two means: over-the-counter (OTC) and by prescription.  As new  
            drugs (antimicrobials) were developed, FDA recognized the need  
            for these drugs to be administered through feed.  However, FDA  
            wanted to establish greater control and safety measures than  
            were currently available under OTC status since some of these  
            drugs could contribute to drug toxicity and antimicrobial  
            resistance or have other unintended outcomes. Therefore, the  
            Veterinary Feed Directive (VFD) was created to allow more  
            flexibility for new animal drugs to be administered through  
            medicated feed but done so under the supervision of a licensed  
            veterinarian (78 Federal Register 75517, December 12, 2013).

          Existing state law:

          1)Requires CDFA, through the Livestock Drug Program, to regulate  








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            the manufacture, sale, registration, and use of livestock  
            drugs, except when the livestock drug is sold by prescription  
            only, used exclusively by a veterinarian, or used only under a  
            veterinarian's direction. CDFA is required to register OTC  
            livestock drugs and regulate their use for safety and efficacy  
            (Food and Agricultural Code §14200 et seq.).

          2)Requires the California State Board of Pharmacy to enforce  
            laws and regulations regarding prescription drugs and drugs  
            used exclusively by veterinarians (Business and Professions  
            Code § 4000 et seq.). 

          This bill:

           1) Provides definitions for "medically important antimicrobial  
             drug," "livestock," and "veterinary feed directive."

           2) Prohibits, beginning January 1, 2018, the administration of  
             a medically important antimicrobial drug to livestock unless  
             ordered by a veterinarian, through a prescription or feed  
             directive, that has established a veterinarian-client-patient  
             relationship.

           3) Allows, beginning January 1, 2018, the use of a medically  
             important antimicrobial drug when, in the professional  
             judgement of a licensed veterinarian, the drug is necessary  
             for any of the following:

              a)    To treat a disease or infection.
              b)    To Control the spread of a disease or infection
              c)    In relation to surgery or a medical procedure.

           4) Allows the use of a medically important antimicrobial drug  
             when, in the professional judgement of a licensed  
             veterinarian, it is needed for prophylaxis (prevention) to  
             address an elevated risk in the contraction of a particular  
             disease or infection.

           5) Prohibits a person from administering a medically important  
             antimicrobial drug to livestock in a repeated or regular  
             pattern unless if consistent with #3, above.









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           6) Prohibits a person from administering a medically important  
             antimicrobial drug to livestock solely for the purposes of  
             promoting weight gain or improving feed efficiency.

           7) Allows medically important antimicrobial drugs to be sold,  
             with a prescription or veterinary feed directive, by  
             retailers licensed to sell restricted drugs.

           8) Requires CDFA, in consultation with the Veterinary Medical  
             Board, the State Department of Public Health, universities,  
             and cooperative extensions, to develop antimicrobial  
             stewardship guidelines and best management practices on the  
             proper use of these drugs for disease treatment, control, and  
             prevention.  

           9) Requires CDFA to consult with livestock producers,  
             veterinarians and other stakeholder on ensuring livestock  
             timely access to treatment for producers in rural areas with  
             limited access to veterinary care.

           10)Defines "antimicrobial stewardship" as a commitment to: 

              a)    Use medically important antimicrobial drugs only when  
                necessary to treat, control, and, in some cases, prevent  
                disease.
              b)    Select and administer the appropriate medically  
                important antimicrobial drug, dose, duration and route of  
                administration.
              c)    Use medically important antimicrobial drugs for the  
                shortest duration necessary and administered to the fewest  
                animals necessary.

           11)States the intent of the Legislature that CDFA coordinate  
             with specified federal agencies to implement the expanded  
             antimicrobial resistance surveillance efforts in the National  
             Action Plan for Combating Antibiotic-Resistant Bacteria.

           12)Requires CDFA to gather information, as specified, on  
             medically important antimicrobial drug sales and usage, as  
             well as antimicrobial resistant bacteria and livestock  
             management practice data.  Monitoring efforts shall not be  
             duplicative of federal monitoring programs, and to the extent  








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             feasible, CDFA shall coordinate with specified federal  
             agencies to develop these efforts.

           13)Requires CDFA to work with willing participants to gather  
             this data, and participation shall be done in a manner that  
             does not breach veterinary-client-patient confidentiality  
             laws.

           14)Requires CDFA to report to the Legislature by January 1,  
             2019, the results of outreach and monitoring efforts.

           15)Requires CDFA to seek funds from federal, state, and other  
             sources to implement the monitoring program.

           16)Authorizes CDFA to obtain copies of veterinary feed  
             directives.

           17)Maintains confidentiality of data collected to prevent the  
             identification of an individual farm or business.

           18)Levies a $250 per day civil penalty on persons who violate  
             this new chapter, or an administrative fine of $500 per day  
             of violation for a second or subsequent violation.  Violators  
             are also required to attend an educational program on the  
             judicious use of medically important antimicrobial drugs  
             within 90 days of the violation.  This provision excludes  
             veterinarians, who are subject to disciplinary sanctions  
             pursuant to the Veterinary Medicine Practice Act.

          Background 
          
          Antimicrobial drugs were first developed in 1928 and became  
          widely used in human medicine in the 1940s.  These new drugs  
          quickly proved to have significant health benefits in both human  
          and animal medicine and to this day are extremely valuable tools  
          used to treat and prevent illness and infection.  However,  
          incidences of antimicrobial resistance have been recorded over  
          time and, if not addressed, pose a serious threat to public  
          health.

          Antimicrobial resistance may develop for several reasons. One of  
          the most widely accepted contributors to antimicrobial  








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          resistance is the misuse of antimicrobial drugs.  When bacteria  
          are exposed to an antimicrobial drug, it provides the  
          opportunity for "survival of the fittest" where only the  
          strongest, most immune bacteria survive.  These surviving,  
          antimicrobial-resistant bacteria then multiply to form new  
          colonies of resistant bacteria that may spread and infect other  
          individuals.  For this reason, it is important to use  
          antimicrobial drugs judiciously in both human and animal  
          medicine as one method to mitigate resistance.

          The Centers for Disease Control and Prevention (CDC) recently  
          issued a report titled Antibiotic Resistance Threats in the  
          United States, 2013.  The CDC estimates that in the United  
          States more than two million people are sickened every year with  
          antibiotic-resistant infections with at least 23,000 infections  
          resulting in death.  In its report, the CDC lists four core  
          actions that fight the spread of antibiotic resistance: 1)  
          preventing infections from occurring and preventing resistant  
          bacteria from spreading, 2) tracking resistant bacteria, 3)  
          improving the use of antibiotics, and 4) promoting the  
          development of new antibiotics and new diagnostic tests for  
          resistant bacteria.  

          The CDC notes that the use of antibiotics is the single most  
          important factor leading to antibiotic resistance around the  
          world.  Up to 50% of all antibiotics prescribed for people are  
          either not needed or not optimally effective as prescribed.   
          Antibiotics are also used in food-producing animals for the  
          purpose of promoting growth, which the CDC recommends phasing  
          out.  FDA has developed guidances (described below) to promote  
          judicious use of antimicrobials that would prohibit their use  
          for improved feed efficiency or increased weight gain.   
          According to the FDA's annual report on antimicrobial sales for  
          animal use, 97% of medically important antimicrobial drugs are  
          sold OTC and not through a veterinarian's prescription or feed  
          directive.  The FDA guidances will address this issue and  
          others, as described in further detail below.  

          In December 2013, the FDA released the final draft of the  
          Guidance for Industry #213 (GFI #213), which contains nonbinding  
          recommendations regarding the use of medically important  
          antimicrobial drugs in the feed and drinking water of  








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          food-producing animals. These recommendations include: 1)  
          phasing out the use of medically important antimicrobial drugs  
          in food-producing animals for production purposes (growth  
          promotion and feed efficiency) and 2) veterinary oversight of  
          these drugs when used in the feed or water of food-producing  
          animals.
          The FDA's GFI #213 would change the status of antimicrobial  
          drugs administered in feed from OTC to VFD.  Due to this change,  
          the FDA recognizes that current VFD regulations must be revised  
          and streamlined to minimize the impact on veterinarians, the  
          animal feed industry, and producers.  These revisions are  
          believed to be critically important and are scheduled to be  
          completed before the three-year implementation timeline for GFI  
          #213. 

          On September 18, 2014, President Obama issued Executive Order  
          13676: Combating Antibiotic-Resistant Bacteria, which states  
          that this is an issue of national security and that "the Federal  
          Government will work domestically and internationally to detect,  
          prevent, and control illness and death related to  
          antibiotic-resistant infections by implementing measures that  
          reduce the emergence and spread of antibiotic-resistant bacteria  
          and help ensure the continued availability of effective  
          therapeutics for the treatment of bacterial infections."  Later  
          that same month, the White House issued the National Strategy  
          for Combating Antibiotic-Resistant Bacteria, and in March 2015,  
          the White House issued the National Action Plan for Combating  
          Antibiotic-Resistant Bacteria (Action Plan).  

          The Action Plan lays out a five-year plan with five distinct  
          goals: 1) slow the emergence of resistant bacteria, 2)  
          strengthen One-Health surveillance efforts, 3) advance the  
          development and use of rapid diagnostic tests to identify  
          resistant bacteria, 4) accelerate the development of new  
          antibiotics, other treatments, and vaccines, and 5) improve  
          international collaboration to achieve these goals.  For  
          antimicrobial use in food animals (livestock), the Action Plan  
          seeks to implement FDA's guidances for industry, described later  
          in this analysis.

          The United States Department of Agriculture (USDA) currently  
          operates national laboratory systems that survey national animal  








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          health and monitor antimicrobial resistance: the National Animal  
          Health Monitoring System (NAHMS) and the National Antimicrobial  
          Resistance Monitoring System (NARMS).  NAHMS was created in 1983  
          to collect and analyze data on animal health, management, and  
          productivity and to conduct national studies on livestock  
          populations. NAHMS is recognized as a statistical unit under the  
          Confidential Information Protection and Statistical Efficiency  
          Act (CIPSEA), which allows producers or livestock owners to  
          voluntarily provide sensitive and confidential information such  
          as on-farm management practices and animal health issues.  USDA  
          states that this is vital to encourage voluntary participation  
          and to maintain high response rates.

          NARMS was established in 1996 by the FDA in conjunction with the  
          CDC and USDA to monitor trends in antimicrobial resistance from  
          human, retail meat, and food animal samples. The goals and  
          objectives of NARMS' monitoring program are to monitor trends in  
          antimicrobial resistance among foodborne bacteria, conduct  
          research to better understand the emergence and spread of  
          resistant bacteria, and to assist the FDA in decision making for  
          the approval of antimicrobial drugs for animals.

          The California Animal Health and Food Safety (CAHFS) Laboratory  
          System, created as a partnership between CDFA and the UC Davis  
          School of Veterinary Medicine, is the state entity responsible  
          for providing rapid diagnostic testing for animal health  
          diseases, and those diseases that affect humans.  Most recently,  
          CAHFS has been involved in detecting avian influenza in both  
          commercial and backyard poultry but also conducts testing on any  
          animal brought to the lab with other concerns such as poisoning,  
          salmonella or other bacterial infections, rabies, and other  
          serious health issues for both livestock and pets.  CAHFS is  
          part of the National Animal Health Laboratory Network, which has  
          been included as a component of national surveillance efforts in  
          President Obama's Action Plan for combating antimicrobial  
          resistance.

          Comments
          
          Governor's Veto.  Governor Brown vetoed a previous version of  
          this bill in 2014 (SB 835, Hill).  In his veto message, Governor  
          Brown stated that "more needs to be done to understand and  








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          reduce our reliance on antibiotics.  To that end, I am directing  
          the Department of Food and Agriculture to work with the  
          Legislature to find new and effective ways to reduce the  
          unnecessary antibiotics used for livestock and poultry."  

          Veterinarian-client-patient relationship. The California Code of  
          Regulations (16 CCR § 2032.1) requires a veterinarian to  
          establish a veterinarian-client-patient relationship before  
          administering, prescribing, dispensing, or furnishing a drug or  
          medicine.  This relationship is established when the  
          veterinarian has sufficient knowledge of the animal through an  
          examination or by medically appropriate and timely visits to the  
          premises where the animal is housed.  Additionally, a  
          veterinarian shall not prescribe a drug for longer than one-year  
          duration.  

          Preventative and routine use. There is argument as to whether  
          antimicrobial drugs are being used judiciously when administered  
          to animals for the purpose of disease prevention.  The concern  
          relates to the use of antimicrobial drugs when a disease is not  
          clinically present and which could provide the opportunity for  
          the continual, prolonged, or routine use of antimicrobial drugs  
          in food animals.  

          However, the California Veterinary Medical Association is  
          concerned that if antimicrobial use is restricted then  
          veterinarians would be prevented from "making the best medical  
          decisions for the health and welfare of their patients.  There  
          are many instances where it is important to administer  
          antibiotics prophylactically, such as to prevent the active  
          spread of 'silent killer' diseases such as Chlamydophila abortus  
          in sheep, particularly when there is no test available to  
          determine which sheep are the carriers of the disease.   
          Veterinarians must have the flexibility to provide scientific  
          and medically appropriate treatment for animals under their  
          care."

          Monitoring program. The federal government is currently  
          proposing an expanded nationwide antimicrobial use and  
          resistance surveillance program as outlined in the USDA  
          Antimicrobial Resistance Plan published in June 2014 and in  
          President Obama's Action Plan.  This bill seeks to coordinate  








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          with this program.

          Over-the-counter accessibility. This bill eliminates the OTC  
          availability of all medically important antimicrobial drugs  
          administered to livestock.  There are concerns from the  
          livestock industry that this will limit their ability to obtain  
          the medication necessary to properly care for their livestock,  
          however this bill recognizes this challenge and several  
          agricultural organizations, such as the California Cattlemen's  
          Association, remain neutral on this bill.

          Antimicrobial stewardship.  Several livestock industries have  
          developed best management practices/quality assurance/herd  
          improvement programs that address animal welfare and food safety  
          issues.  The Beef Quality Assurance program includes guidelines  
          on the judicious use of antimicrobial drugs.  Additionally, the  
          American Veterinary Medical Association provides guidelines for  
          the judicious use of antimicrobial drugs in livestock.  Should  
          this bill become law, CDFA may draw from these or similar  
          existing programs to develop a statewide guidance program.

          Opposition.  Several organizations have removed their opposition  
          from this bill, such as the Natural Resources Defense Council,  
          Environmental Working Group, and CALPIRG (please see the  
          Assembly Agriculture Committee analysis dated 9/9/2015 for a  
          more complete list).  However, not all of those in opposition  
          have provided an updated position since the most recent  
          amendments have been adopted.  Therefore, those listed as  
          "opposed" may in fact have also changed their position to  
          neutral, however this cannot be verified as of 9/11/2015.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Assembly Appropriations Committee, this bill  
          will cost approximately $864,000 in FY 2015-16 and $4.8 million  
          in FY 2016-17 from General and Special Funds to develop  
          programs, stewardship guidelines, monitoring systems and  
          procedures, and regulations, as well as begin training,  
          inspections, and use tracking.  Annual General and Special Fund  
          costs are estimated to be approximately $4.3 million per year  
          thereafter to continue training, inspections, and tracking.   








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          Some of these costs may be funded from federal and local  
          sources, and potentially offset in part with civil fine revenue.  
           In addition, there are potentially significant costs to the  
          Veterinary Medical Board and the State Department of Public  
          Health to help develop stewardship guidelines and training  
          materials.


          SUPPORT:   (Verified9/11/15)


          Adventist Health
          California Academy of Preventive Medicine
          California Children's Hospital Association
          California Naturopathic Doctors Association
          California Optometric Association
          California Society of Health-System Pharmacists
          California Veterinary Medical Association
          Humane Society Veterinary Medical Association
          Infectious Disease Association of California
          Loma Linda University Health


          OPPOSITION:   (Verified9/11/15)
          

          Alliance for the Prudent Use of Antibiotics
          Animal Welfare Approved
          Center for Agriculture and Food Systems, Vermont Law School
          Center on Race, Poverty and the Environment
          Compassion Over Killing
          Diestel Family Turkey Ranch
          Friends of the Earth
          Hunger Action LA
          Institute for Agriculture and Trade Policy
          Organic Consumers Association
          Physicians for Social Responsibility, Los Angeles
          Southern California Public Health Association
          Urban Environmental Policy Institute
          Women Organizing Resources, Knowledge and Services










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          ARGUMENTS IN SUPPORT:  According to the author, "The overuse and  
          misuse of antibiotics, especially antibiotics important in human  
          medicine, contributes to antibiotic resistance as a growing  
          public health threat. Inappropriate antibiotic use and overuse  
          in humans drives the development of antibiotic resistance, but  
          there is also a concern about antibiotic use in livestock and  
          poultry. Based on the best information available from the  
          federal Food and Drug Administration (FDA), it's estimated that  
          at least 70 percent of all medically important antibiotics are  
          sold for use in livestock and poultry. [?]  The data available  
          on antibiotic use in livestock and poultry is in itself a  
          problem; in large part, many consider the data to be  
          insufficient since the only data collected is sales data. More,  
          and better data, needs to be collected to properly address this  
          issue.  While there may be data gaps about antibiotic use in  
          livestock and poultry, we do know that under current law the  
          majority of medically important antibiotics may be sold for use  
          in livestock and poultry without veterinary oversight. [?]  
          Antibiotic stewardship programs are a commitment to always use  
          antibiotics only when they are necessary, to choose the right  
          antibiotics and to administer them in the right way in every  
          case. Antibiotic stewardship programs have been effective in  
          reducing inappropriate antibiotic use in humans, as well in  
          reducing antibiotic resistance. [?] However, there is no similar  
          requirement that veterinarians and livestock and poultry  
          producers follow antibiotic stewardship guidelines."

          ARGUMENTS IN OPPOSITION:     Those opposed to this bill have the  
          same concern: namely, that this bill does not go far enough to  
          restrict the use of antimicrobial drugs for preventative or  
          routine uses in livestock.  These organizations state that,  
          "Antibiotic-resistant infections can result in longer illnesses,  
          more hospitalizations, the use of antibiotics with greater  
          side-effects, and even death when treatments fail.   Resistant  
          infections are estimated to cost the U.S. up to $61 billion  
          annually in additional health care costs and lost productivity.   
          Growing resistance also puts complicated medical procedures such  
          as heart surgery, organ transplants, and chemotherapy in  
          jeopardy" due to reliance on effective antibiotics.   
          Furthermore, about 70% of all medically important antibiotics  
          sold in the U.S. are used in livestock production, where much of  
          the use is to accelerate animal growth and for disease  








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          prevention.  By continuing to allow antibiotics to be used for  
          disease prevention, these drugs could still be administered in  
          low doses to entire herds when there is no disease present and  
          where other interventions could obviate the need for their use.  
          (Please see the comments section titled "Opposition" on page 9  
          for further clarification on the status of these organizations'  
          opposed position).




          Prepared by:Anne Megaro / AGRI. / (916) 651-1508
          9/11/15 21:00:10


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