California's AB 2034 Would Cost the State $34 Million — and Raise Your Grocery Bill

A new independent analysis puts a real number on what California's proposed food labeling bill would actually cost — and it's not small.

Assembly Bill 2034 would create a California-specific oversight system for food ingredients already regulated by the FDA, requiring companies to submit safety reports for approximately 4,000 ingredient uses to a brand-new state-run database. According to the study, conducted by Policy Navigation Group, the price tag would exceed $34 million in just the first three years — at a moment when the state is already facing a $20 billion budget deficit.

And that's just the government's cost. Businesses would face their own compliance burden, with expenses flowing through the supply chain and landing on consumers in the form of higher prices and fewer product options.

"This duplication of oversight over the food supply will force California companies, distributors and retailers to absorb significant new costs that will pass through the supply chain and likely result in higher prices and fewer product options for consumers." — Dan Colegrove, Executive Director, Food Ingredient Safety Coalition

Read the full analysis to see the breakdown below — and why FISC believes there's a better path forward for food safety in California.

FISC Relase - PNG Study _ California.pdf

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