STUDY: LEGISLATION WILL BOOST GROCERY PRICES BY BILLIONS
- May 5
- 2 min read
Bill to Duplicate Federal Food Testing will Cost Average Household $310 more per year
SACRAMENTO – Legislation that would create a burdensome state-level regulatory scheme of food and other products would increase spending on groceries by an average of $310 a year per family, according to a study released today[1] . Across the state, that would add up to $2.4 billion in additional grocery costs paid for by California families.
According to the report, the proposed legislation would also increase state government costs by at least $72 million annually – despite the state facing massive budget deficits – as California is a large purchaser of products for food assistance, senior nutrition, WIC and other programs. There would also be significant costs to state and local governments, as they are tasked with meeting new requirements in the bill. This is in addition to the previously reported $34 million required to implement the legislation given the absence of state resources to govern processes that the federal government has overseen for more than 50 years.
Assembly Bill 2034, authored by Assemblywoman Dawn Addis (D-Morro Bay), calls for sweeping new state regulation of food ingredients without the necessary capacity or expertise. It would duplicate the work of the federal government, as the U.S. Food and Drug Administration (FDA) currently reviews food substances designated as Generally Recognized as Safe (GRAS) under the Federal Food, Drug, and Cosmetic Act.
Link to FISC site
“This bill flies in the face of efforts to make California a more affordable place to live for working families,” said Food Ingredient Safety Coalition (FISC) Executive Director Dan Colgrove. “It will create a new level of state bureaucracy on food producers, retailers, and distributors that duplicates existing federal oversight. Lawmakers should not be creating an unnecessary bureaucratic burden when the cost of food is too high as it is, nor proposing legislation that will cost the state tens of millions of dollars without any additional benefit.”
The study also found it would cost the food and beverage industry more than $1.8 billion to comply with new requirements, which will result in significant disruptions that would impact operations and workforce.
This study, conducted by Policy Navigation Group and released by FISC, also estimates that thousands of safety reports, covering approximately 4,000 ingredient uses, would need to be submitted and reviewed, placing a significant administrative burden on local businesses and state agencies, while also increasing costs for state-supported programs such as school meals and SNAP.
The study was commissioned by American Beverage, a FISC board member, to provide coalition members in the food, beverage and ingredient industries with an account of the costs that businesses operating in the state, as well as consumers, will incur if Assembly Bill 2034 is enacted.
About the Food Ingredient Safety Coalition
FISC represents a broad section of America’s food, beverage, and ingredient industries. Its members source, manufacture, distribute, and sell safe and wholesome products across the United States. The coalition is committed to maintaining the highest standards of safety and quality and supports a strong, science-based national food safety system.
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