Saying foodborne illness will increase and more tainted imported foods/ingredients will reach U.S. consumers without them, FDA Commissioner Dr. Margaret Hamburg this week told the House Appropriations Committee subcommittee on ag/FDA, her agency must be given authority to impose $220 million in annual user fees for facility registrations under the Food Safety Modernization Act (FSMA). Several members of the subcommittee confronted Hamburg with a letter from 30 national food and agriculture groups - including AFIA - opposing any new user fees, calling them "a food safety tax on consumers," and urging the subcommittee to "adequately fund FDA's food safety responsibilities." The groups offered to work with FDA and the Hill in finding a funding solution.  

Hamburg faced bipartisan opposition to her user fee request even though many panel members agreed FDA is underfunded. Rep. Tom Latham (R, IA) told Hamburg user fees have nothing to do with food safety and everything to do with FDA "taxing industry" to stay in business. He said the Obama Administration should operate with "budget honesty" and ask for what it needs rather than offering a user fee alternative that has twice been rejected by Congress. Issuing similar warnings to Hamburg - including the political "reality check" that even if user fees were approved by the subcommittee they'd never survive Senate or House floor action - were subcommittee chair Rep. Jack Kingston (R, GA), Rep. Sam Farr (D, CA), ranking member, and former subcommittee chair Rep. Rosa DeLauro (D, CT). DeLauro said Congress needs to fund FDA at levels that allow the agency to do its job rather than relying on user fees and increased dependence on regulated industry. "This is about the tail wagging the dog," she said.  

Hamburg said the fees are necessary to provide FDA with a "reliable and dependable source or revenue" to develop and enforce its new programs demanded by FSMA - including new safety standards for produce, comprehensive implementation of preventive controls across all food and feed facilities, new inspection frequencies, a new import inspection system, and creation of FDA overseas offices - and told the subcommittee other industries regulated by FDA, including human and animal drug makers and medical device manufacturers, support user fees, so the food industry should as well. She said FDA would negotiate the fees with industry if the agency is granted authority to levy them. Kingston said the agency needs to first find duplication of programs with other federal agencies, including the Centers for Disease Control (CDC) and USDA. Savings from eliminating duplicative programs can be redirected to food safety, Kingston said.

Public Comment Period Announcement:  

The public comment period is now open for the DRAFT Report to Legislature for "Communities that Rely on Contaminated Groundwater (AB 2222)."  Comment period closes April 2.

For more information please visit:  
http://www.waterboards.ca.gov/water_issues/programs/gama/ab2222/docs/pubnot040212.pdf

Public Release of UC Davis Nitrate Report - March 13:   

The UC Davis Center for Watershed Sciences will publicly release its independent study of nitrate in groundwater for the Tulare Lake Basin and Salinas Valley on Tuesday, March 13th.  A public event will coincide with the report release at 2:00 PM at the Cal/EPA Building Byron Sher Auditorium in Sacramento. 

The comprehensive UC Davis Report examines sources of nitrate contamination, impacts and costs, as well as promising funding and policy options.  The release will include presentations of the main report and supporting technical reports, as well as a panel discussion with time for public comment and discussion.  

UC Davis is under contract with the State Water Board to conduct its independent investigation and report on the findings and potential solutions for nitrate in groundwater in these areas.  The findings and promising options in the UC Davis report will be used to inform the State Water Board in its development of recommendations as required in its Report to the Legislature to be submitted later in 2012.

More details will be posted in the near future at http://groundwaternitrate.ucdavis.edu/.

Information on the Salinas Valley/Tulare Lake Basin Nitrate Pilot Studies can be found at www.waterboards.ca.gov/water_issues/programs/nitrate_project/index.shtml.

Having failed in its last session to overcome constitutional questions, the Iowa legislature this week enacted and sent to Gov. Terry Branstad the nation's first state law prohibiting anyone from gaining access to a farm under false pretenses. The new law is the first of several state bills being considered during the 2012 sessions aimed at making it a crime for anyone to fraudulently gain employment at a farm or ranch with the intent to film operations or interfere in the operation of the farm. The Humane Society of the U.S. (HSUS), the nation's largest animal rights group, has led activist opposition to such state efforts, and immediately upon Senate passage of the Iowa bill sent Branstad a letter urging him to veto the new law. HSUS said the intent of the new law is to "shield animal agribusiness from public scrutiny by punishing whistleblowers and protecting animal abusers."  

HSUS President Wayne Pacelle said the new law poses "serious threats to constitutional freedoms, food safety, animal welfare and workers." About 30 protesters with the animal rights group Mercy for Animals, which has been responsible for several undercover videos over the last few years, showed up at the capitol building in Des Moines yesterday, vowing to continue to secretly record operations across Iowa. Under the new law, violators face a first-offense aggravated misdemeanor, punishable by up to a year in jail and a fine of up to $6,250. A second violation is a class D felony, carrying up to five years in jail and a fine of up to $7,500. Some legal scholars believe the law will almost certainly face a constitutional court challenge. According to Bloomberg News, Montana, North Dakota and Kansas have enacted laws to thwart activist undercover activities, and bills similar to that enacted in Iowa are currently under consideration in New York, Indiana, Missouri, Nebraska and Utah.

Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, accelerated her panel's hearing schedule and said this week her committee may begin marking up the 2012 Farm Bill by the end of March. She said the Senate bill will be a new five-year package, not an extension of current law, a rewrite of last December's deficit reduction package or a short-term bill. Stabenow stressed her March markup target is only a possibility, and House Agriculture Committee Chair Frank Lucas (R, OK), is not making predictions. However, Lucas did announce his first field hearings on the 2012 Farm Bill this week, to be held in March and April. The House Agriculture Committee last summer held 11 "audit hearings," to examine the operation of existing USDA programs and how they can be made more cost-effective. The first hearing will be held March 9, in Saranac Lake, NY, followed by a March 23 hearing in Galesburg, IL, a March 30 hearing in State University, AR, and ending with an April 20 hearing in Dodge City, KS. At the 2012 Commodity Classic this week, the leaders of the national groups representing corn, soybeans, sorghum and wheat growers, affirmed their desire for a bill this year, but admitted they share no consensus on how to rewrite farm payment programs.  

Lucas and Stabenow are awaiting Congressional Budget Office (CBO) baseline spending numbers, expected in mid to late-March, and Lucas is awaiting the final House Budget Committee numbers that will indicate what can be spent on reinventing farm programs. These numbers reflect the CBO formula of how much money is needed for a new Farm Bill based on how much was spent over the life of the 2008 bill. While the Obama Administration budget request included a $32-billion cut in spending over 10 years, and the deficit reduction package crafted last December by Lucas and Stabenow found $23 billion in cuts, a draft of the House budget resolution currently circulating for reaction would slash ag spending $40 billion over the next decade. And if the House ag spending baseline is too far out of sync with what the Senate contemplates, it may be impossible to reconcile the two bills for final passage, both chairs warned this week. Complicating the House effort is GOP leadership's commitment to going after the mandatory spending portions of USDA's budget, including a continued push to convert the existing food stamp program into a state block grant program.

Congress was informed this week USDA will close 131 Farm Service Agency (FSA) offices in 90 days, Secretary of Agriculture Tom Vilsack said. Vilsack said his actions are consistent with requirements laid out in the 2008 Farm Bill and are being implemented as part of USDA's "Blueprint for a Stronger Future" initiative. Overall, USDA will shutter 259 domestic and foreign offices, facilities and laboratories. USDA held public meetings in every county where an FSA office is set to close, comments were collected and reviewed by the department. Offices set to close are located within 20 miles of another FSA facility and employ two or fewer full-time workers. Included in the number of offices set to close are FSA operations which currently "have zero employees, regardless of location," USDA said.

Commodity Futures Trading Commission (CFTC) Chair Gary Gensler this week was grilled by the House Agriculture Committee over everything from missing MF Global (MFG) assets to unwritten Dodd-Frank market rules to gas prices, and it was a bipartisan shooting match. In a committee hearing billed as a "review of the 2012 agenda of the CFTC," member after member demanded to know the status of the MFG investigation, where nearly $1.6 billion in customer assets are, then zeroing in on how the commission intends to protect the assets of individual investors in the future. Because Gensler recused himself from the MFG issue - he worked with former MFG CEO John Corzine some years ago - he could provide little new information for the committee.  

Committee members also questioned Gensler on the status of CFTC rulemakings emanating from enactment of the Dodd-Frank Act. Committee Chair Frank Lucas (R, OK) told Gensler he was becoming anxious because while the commission has promulgated 28 new rules, more than 20 have yet to be finalized or published. Key among these pending rulemakings, he said, are the definitions of a "swap" or "swap dealer" or "major swap participant," and this lack of clarity, Lucas said, is confusing the marketplace. A number of committee members from both sides of the aisle pressed Gensler on excessive institutional and non-hedger speculation in futures markets, with Rep. Joe Courtney (D, CT) and Rep. Peter Welch (D, VT) citing a Goldman Sachs report about the "speculative premium" built into the price of oil and gas - the equivalent of 26 cents per gallon of gasoline.  

Rep. Jeff Fortenberry (R, NE) also zeroed in on excessive speculation, telling the CFTC head that while futures markets are "designed to mitigate risk, we actually have a system creating risk now." Gensler took the opportunity to put in a plea for greater FY2013 funding, warning that without "adequate funding," he may be forced to take drastic steps including moving personnel from enforcement to registration.

Under executive order this week, President Obama moved to create a new federal trade enforcement agency which will investigate and "respond" to other countries' violations of U.S. and global trade rules. The move is an extension of a proposal he made last January that several federal trade functions, including the Office of the Special Trade Representative, should be consolidated within the Department of Commerce (DOC.) The new Interagency Trade Enforcement Center (IETC) is an example of what the President called "a whole-of-government" approach to getting tougher on foreign trade violations that disadvantage U.S. products in international markets. The new center will monitor and enforce U.S. rights under international and domestic trade rules and "counter" unfair trade subsidies. The White House announcement said the new center will bring together litigators, language-proficient researchers, analysts and overseas representatives, and will coordinate with companies, industries and the intelligence community to exchange information on alleged trade rule violations. Ambassador Ron Kirk, Special Trade Representatives will name the director of the new agency, with the Secretary of Commerce naming the deputy director, along with providing some personnel. Additional support will come from USDA, DHS, the Departments of Justice and State.

The Administration announced on February 21 that the effective date for the U.S.-South Korea free trade agreement is March 15, now that all technical and diplomatic hurdles have been overcome. On that date, almost 80% of U.S. industrial exports to Korea will move duty free, including agricultural equipment, chemicals and transport equipment. About two-thirds of agricultural goods will move duty free, including wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice and wine. The new trade treaty is expected to increase U.S. exports by $10 billion a year. Similar agreements with Colombia and Panama have not yet been implemented.

The California Division of Occupational Health (Cal/OSHA) requires recordkeeping and reporting about safety in the workplace. Required records include the OSHA 300 Log and documents about safety hazard analysis, inspections, and accident investigations. Hazard-specific regulations such as asbestos, diving, mining, etc. also have additional recordkeeping requirements. Keeping track of recordkeeping requirements is a challenge.

The OSHA 300 log is probably the most familiar to workers and employers. It records all work-related deaths along with injuries and illnesses that require more than first aid treatment. An annual summary of injuries and illnesses is required to be posted in the workplace. Some small businesses (less than 10 employees) and certain industries may have limited exemptions from this recordkeeping requirement. All Employers must report to Cal/OSHA any serious injury, illness or death of an employee immediately, but no longer than 8 hours after the employer knows or with diligent inquiry would have known.  If the employer can demonstrate that exigent circumstances exist, the time frame for the report may be made no longer than 24 hours after the incident. For instructions on keeping the 300 Log, see the State Fund Loss Control Bulletin Required Recordkeeping Procedures at  http://www.scif.com/safety/losscontrol/Article.asp?ArticleID=311. For instructions on reporting illnesses and injuries that require treatment beyond first aid, see First Aid Reporting Requirements at  http://www.scif.com/safety/losscontrol/Article.asp?ArticleID=301. 

Cal/OSHA also requires employers to keep records on hazard evaluations and the corrective actions taken to reduce or control safety risks in the workplace. Job hazard analysis (JHA) evaluates a worker's job tasks, tools, equipment, and procedures to determine the level of safety risk and how to control it. Also examine and plan for hazards associated with new tools, equipment, chemicals, tasks, and work environments. Keeping records of these hazard evaluations and risk reduction efforts can document that a business has diligently worked to protect workers. Communicate with employees about these evaluations to make them aware of job hazards and help them work safer.

Periodic workplace safety inspections identify hazards in the workplace. Keep records of the identified hazards and the actions that were taken to correct them. Investigate all employee accidents and near misses to determine the root cause of the accident. Document any corrective actions taken to reduce the risk of further accidents. Take the same steps when investigating employee complaints by recording the investigation process and any necessary corrective actions. Communicate the results of inspections, accident investigations, and complaint response to employees.

Safety training is a key component in making employees aware of the risks and hazards involved with their work tasks along with the appropriate work practices and personal protective equipment that keeps them safe. General safety training may include ergonomics, first aid, CPR, and injury and illness prevention. Specific work task and hazards safety training can target chemical use, fall protection, lockout/tagout, etc. Keep records of all employee safety training.