BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           173 (Florez)
          
          Hearing Date:  5/26/2009        Amended: 5/6/2009
          Consultant:  Bob Franzoia       Policy Vote: Health 7-3, Ag 3-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY: SB 173 would require every food grower or food  
          processor that subjects the food it grows or processes to  
          testing to determine the presence of a microbe, pathogen,  
          poisonous chemical, or other harmful substance that may cause  
          food borne disease to maintain accurate records with the results  
          of these tests and report to the Department of Public Health  
          (DPH) the presence of any of the above.  This bill would require  
          the State Public Health Officer (SPHO) to recall food if he or  
          she believes, based on standard practice or scientific research,  
          that the food may carry an illness, infection, pathogen, toxin,  
          or condition that without intervention could transmit an illness  
          affecting humans.  Growers or processors of food that causes the  
          outbreak of a food-borne disease and is subject to a mandatory  
          recall shall be subject to certain conditions, including onsite  
          inspections by the Department of Food and Agriculture at a  
          specified frequency.  The grower or processor would be liable  
          for the costs of the inspections.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Food testing           Unknown major costs ongoing to  
          processGeneral                    and review testing results

          Food recalls           Unknown costs                    General
          _________________________________________________________________ 
          ___

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Based on the 2007 US Department of Agriculture census, there are  
          approximately 80,000 growers (farms) in the state.  There are an  
          estimated 5,000 food processors in the state.

          Likely a very high percentage of the food test results will  










          indicate the presence of a microbe, pathogen, poisonous chemical  
          or other harmful substance.  Whether the presence of the  
          microbe, pathogen, poisonous chemical or other harmful substance  
          is at a level to represent a health hazard is not considered.   
          These test results would be reported to the Department of Public  
          Health (DPH) within one hour of receipt in accordance with DPH  
          regulations.  With 85,000 growers and food processors reporting,  
          and many often reporting multiple times daily, the number of  
          test results will easily be thousands daily and hundreds of  
          thousands annually.  This process will require a major  
          investment to process, review, store and respond to test results  
          overall and to respond on a nearly around the clock basis during  
          certain periods of the year.

          For example, during the 90 day fruit and vegetable processing  
          season it is possible 8,000 tests for raw food products and  
          2,500 tests for processed food products may be 
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          SB 173 (Florez)

          conducted per day.  It is likely nearly all test results will be  
          within legal tolerances or limits.  For the other months of the  
          year, raw food testing reports may average 1,000 per day or  
          180,000 test results annually.

          For the estimated 5,000 food processors in the state, if one  
          half of those processors are conducting two tests per day, for  
          up to 180 days, or more, a year, DPH may receive up to 900,000  
          tests annually.

          Staff recommends the bill be amended to require reporting of  
          only those tests where the result exceed tolerances or limits  
          set by the department and where the product has entered the  
          stream of commerce (where a grower or processor fails to destroy  
          the product upon review of a test result).

          Under current law, the SPHO has the authority to embargo food  
          products suspected of carrying an illness, infection, pathogen,  
          contagion, toxin, or condition that could cause human illness.   
          The SPHO may call for a voluntary recall but cannot order a  
          recall.

          The SPHO is assisted with recalls by local environmental health  
          officers.  The level of local assistance depends on the level,  
          conditions and location of the recall.  Local environmental  
          health officers are responsible for any follow-up and have some  










          fee authority to factor recall costs into the overall retail  
          permit fee.   They do not have the authority to cost recover.   
          While local environmental health officers are generally better  
          positioned to reach consumers and may be able to intercept a  
          product before it has entered the stream of commerce, not all  
          have the same level of, or even any, resources and may be unable  
          to respond fully to complex or extended recalls.