BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           416 (Florez)
          
          Hearing Date:  5/28/2009        Amended: 5/6/2009
          Consultant:  Bob Franzoia       Policy Vote: ED 5-2,  Ag 3-1
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          BILL SUMMARY: SB 416 would require a school district to make  
          every effort to purchase poultry and meat products that have not  
          been treated with nontherapeutic antibiotics, and require each  
          school district that purchases such products, or each school  
          district that does not know if the products have been so  
          treated, to report annually to the Superintendent of Public  
          Instruction (SPI) the reasons those products were purchased,  
          along with certain other information.  This bill would require  
          the SPI, commencing January 1, 2012, to compile these reports  
          annually.  This bill would require the school district and SPI  
          reports to be available to the public upon request.   
          Additionally, state and local governments, when purchasing meat  
          supplies, would prefer meat supplies produced without the use of  
          medically important antibiotics as feed additives, potentially  
          imposing a state mandated local program.  Finally, this bill  
          would, commencing January 1, 2105, prohibit a person from using  
          antibiotics for nontherapeutic use in any animal raised for  
          production of any human food product.
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                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           State mandate          $500       $1,000      $1,000    General*
          (education, reporting)

          SPI reporting          $65        $130        $130      General

          Prohibition on purchasing         Unknown, major costs and cost  
          pressures              General*
          (state and school districts)      ongoing
                                 
          Prohibition on use of antibiotics          Unknown, potentially  
          significant            General**
          (oversight and enforcement)                costs        

          * Counts toward meeting the Proposition 98 minimum funding  










          guarantee
          ** Also Department of Food and Agriculture Fund
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          STAFF COMMENTS: SUSPENSE FILE.
          
          Current law requires K-12 schools and county superintendents of  
          schools to make available one nutritionally adequate meal,  
          defined as a meal that qualifies for reimbursement under the  
          National School Lunch Program, to each needy student every  
          school day and authorizes a child nutrition entity to apply to  
          the State Department of Education (SDE) for available federal  
          and state funds.

          There are approximately 1,000 school districts in the state.  If  
          each district incurred the minimum cost of $1,000 necessary to  
          claim reimbursement for state mandated costs 
          Page 2
          SB 461 (Florez)

          due to increased reporting requirements, reimbursements would be  
          $1 million.  Additionally, to the extent poultry and meat  
          products not treated with nontherapeutic antibiotics are more  
          expensive, or even available, school meal costs would increase.   
          (When non classroom related expenses increase and the state does  
          not provide offsetting funding, school districts "borrow" from  
          other programs, a practice known as encroachment.)

          This bill provides that commencing January 1, 2015, no person  
          shall use antibiotics for nontherapeutic use in any animal  
          raised for the production of any human food product.  Generally,  
          prohibitions do not result in additional costs.  However,  
          because this bill does not prohibit the shipment from other  
          states of poultry and beef products treated with nontherapeutic  
          antibiotics to California, it is unclear if the Department of  
          Food and Agriculture would need to provide some oversight and  
          enforcement.