THE COST OF GRAS:
EXAMINING THE ECONOMIC IMPACT ON
NEW YORK & CALIFORNIA
The States of California and New York have each advanced legislation that would significantly expand state-level oversight of food substances designated as Generally Recognized as Safe (GRAS) under the Federal Food, Drug, and Cosmetic Act.
Passage of each state’s bill will impose significant near-term costs on state government. California’s AB 2034 would cost an estimated $34 million in initial implementation costs, driven largely by the requirement to receive and process hundreds of thousands of ingredient lists and approximately 3,600 initial license applications across the first two years. New York’s estimated costs are approximately $21 million. The combined initial implementation cost across both states amounts to approximately $55 million.
It’s clear – California and New York can’t afford their proposed GRAS legislation. See the full report to understand the full impact.
TAKE ACTION
Sign on now to reject costly, confusing GRAS legislation at the state level.
STATE-SPECIFIC IMPACTS:
FOR NEW YORK
Say NO to these costly GRAS bills, S.1239E/A.1556E
The proposed GRAS bills would cost the state an estimated $21 million in the first three years alone. It would also confuse consumers and increase costs for food producers, which will presumably hike prices at the grocery store.
FOR CALIFORNIA
California Can’t Afford AB 2034
California already passed AB 1264 to evaluate and regulate food ingredients. AB 2034 layers on a second, overlapping system that reviews many of the same substances—costing an estimated $34 million to implement with no new consumer protections.