Legislature(2003 - 2004)

04/23/2004 08:10 AM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
         HB 378-FOOD, DRUGS, COSMETICS, CERTAIN DEVICES                                                                     
                                                                                                                                
REPRESENTATIVE  BILL  WILLIAMS,  co-chair of  the  House  Finance                                                               
Committee, sponsor  of HB 378,  told members  that he has  sat on                                                               
the   House   Finance   subcommittee   on   the   Department   of                                                               
Environmental  Conservation (DEC)  for  the last  six years.  One                                                               
thing he  has continually  heard during that  time is  that DEC's                                                               
food inspection  program could  sustain no  more budget  cuts and                                                               
continue to  do inspections. Restaurant  and bar  owners complain                                                               
about the high  fees they are paying; those  fees were originally                                                               
$50  per  year  and  are  now about  $450  per  year,  yet  fewer                                                               
inspections are being done. The  waitlist for an inspection is 18                                                               
months  to  two  years.  Unaware  that  the  Alaska  Constitution                                                               
requires the  legislature to  provide for  the protection  of the                                                               
public  health, he  asked the  administration to  discontinue the                                                               
service three  years ago since  people were paying for  a service                                                               
they  were not  getting.  That administration  refused. When  the                                                               
current  administration  came  in,   he  again  asked  that  food                                                               
inspection program be  discontinued and was told it  could not do                                                               
so because of the constitutional requirement.                                                                                   
                                                                                                                                
REPRESENTATIVE  WILLIAMS said  that HB  378 will  require DEC  to                                                               
inspect  for  unsafe  holding temperatures,  inadequate  cooking,                                                               
food  from  unsafe  sources,  contaminated  equipment,  and  poor                                                               
personal hygiene. DEC  has set up a program  that allows facility                                                               
owners to do the inspections, which  DEC will monitor. He said he                                                               
hopes the  food inspection program  fees decrease as a  result of                                                               
HB 378.                                                                                                                         
                                                                                                                                
COMMISSIONER ERNESTA BALLARD, DEC, told  members that HB 378 will                                                               
give DEC the statutory authority to  run a new program to replace                                                               
its  under-funded and  failing  consultative inspection  program,                                                               
which is simply inadequate to the  scope and size of Alaska. Over                                                               
the last two decades, DEC's  best performance has been to inspect                                                               
60 percent  of the  high-risk restaurants in  the state  once per                                                               
year. It is important to  acknowledge that the current inspection                                                               
program  is not  a regulatory  program and  does not  achieve the                                                               
protection or  relationship that  DEC maintains  with all  of its                                                               
other regulated industries. HB 378  will replace the outdated and                                                               
failed  program  with  an  adequately  funded  and  comprehensive                                                               
regulatory program that is modeled  after successful programs. It                                                               
will work because it addresses  the three, well-documented causes                                                               
of  food   borne  illness:  poor  personal   hygiene,  inadequate                                                               
attention to  temperature and cooking procedures,  and inadequate                                                               
training. The  consequences of failure  in these three  areas are                                                               
unacceptable.  Illness and  death from  contaminated food  is the                                                               
direct  result of  an incident  of  poor performance  and is  not                                                               
accidental.  DEC  knows  how to  prevent  contamination  and  the                                                               
spread  of  infection.  She reminded  members  that  an  outbreak                                                               
recently  occurred in  McGrath during  the Iditarod  and followed                                                               
the race down  the trail. Before the mushers arrived  in Nome, 78                                                               
cases   of   Norovirus   were   documented.   The   Division   of                                                               
Environmental Health  took precautionary  measures so  that there                                                               
was not a single outbreak in Nome.                                                                                              
                                                                                                                                
COMMISSIONER  BALLARD explained  that the  new program  relies on                                                               
three  elements: training  and certification  of a  knowledgeable                                                               
workforce;  managing risks  and  food  handling through  standard                                                               
operating  procedures; and  enforcement. The  failed program  was                                                               
designed  for the  pre-World War  II era,  when 20  million meals                                                               
were  served  in  restaurants  per  day  nationwide.  Today,  the                                                               
American Restaurant  Association estimates 70 billion  meals will                                                               
be served in restaurants every day nationwide.                                                                                  
                                                                                                                                
SENATOR  OGAN asked  if any  businesses that  serve food  will be                                                               
exempted, such  as a remote fishing  lodge or a guide  out in the                                                               
field who serves meals.                                                                                                         
                                                                                                                                
MS.  KRISTIN  RYAN, Director  of  the  Division of  Environmental                                                               
Health,  DEC, told  Senator Ogan  that the  division has  not yet                                                               
studied  that  level  of  detail   in  determining  how  it  will                                                               
implement the new food safety  system. The fundamental concept of                                                               
the program  is that  the responsibility  for safe  food handling                                                               
will lie  with the owner/operator  and food handler,  since those                                                               
people will  be serving the  food year-round. The program  has an                                                               
advisory board of  regulated industry and other  members who have                                                               
been helping  to design  the framework of  the new  program. Once                                                               
DEC  is ready  to  promulgate regulations,  it  will address  the                                                               
finer   details  of   implementation  using   a  process   called                                                               
negotiated rule  making. In  that process,  industry participants                                                               
will sit down  with the division and help  design the regulations                                                               
so  that they  address  the problems  without  creating an  undue                                                               
burden on the industry.                                                                                                         
                                                                                                                                
SENATOR OGAN noted that at a  small lodge, workers wear many hats                                                               
and often take  turns as the chef.  He said he would  like to see                                                               
an exemption  for small, remote,  family-run businesses,  and for                                                               
guides.                                                                                                                         
                                                                                                                                
MS. RYAN said  DEC does not intend  to use the new  system on any                                                               
facilities  that  aren't   already  being  regulated.  Therefore,                                                               
temporary food service providers,  operators at fairs, or smaller                                                               
camps  will  not fall  under  the  new  system  as they  are  not                                                               
regulated now. She maintained that  DEC is only interested in the                                                               
large businesses that it currently regulates.                                                                                   
                                                                                                                                
SENATOR OGAN asked where that is written in the bill.                                                                           
                                                                                                                                
MS. RYAN  said it  is not  written in  the bill  but is  in DEC's                                                               
current regulations.                                                                                                            
                                                                                                                                
CHAIR  SEEKINS asked  what DEC's  current  regulations say  about                                                               
size.                                                                                                                           
                                                                                                                                
MS. RYAN said  the current regulations are very  complex and have                                                               
about 15  different categories of facilities.  She explained that                                                               
the requirements  for a temporary  food service permit at  a fair                                                               
would not change  with the new system. DEC  provides two-hours of                                                               
training for those permits.                                                                                                     
                                                                                                                                
CHAIR  SEEKINS  asked  if  all  of the  people  engaged  in  food                                                               
preparation during a  fair must be trained, such as  a Girl Scout                                                               
troop, or if only the supervisor is trained.                                                                                    
                                                                                                                                
MS. RYAN  thought only  the owner and  operator would  be trained                                                               
but offered to get back to Chair Seekins with the details.                                                                      
                                                                                                                                
COMMISSIONER BALLARD pointed out that  the situations that he and                                                               
Senator Ogan  have described  represent a  very small  percent of                                                               
the  food  delivered  to  the   public  in  Alaska  daily.  DEC's                                                               
obligation  is to  focus on  the year-round  restaurant industry.                                                               
DEC's  regulations for  sewage  treatment,  drinking water,  food                                                               
safety,  and  waste disposal  are  all  capable of  accommodating                                                               
seasonal,  camp,  or itinerant  situations.  She  noted that  DEC                                                               
deals with  those situations  regularly and in  a way  that works                                                               
for both parties. She repeated  the vast majority of food service                                                               
businesses  are in  business on  a  regular basis  and deal  with                                                               
employees who must be trained.                                                                                                  
                                                                                                                                
CHAIR SEEKINS  said DEC's  intent sounds good  but he  was asking                                                               
because  if  HB  378  passes,   businesses  will  be  subject  to                                                               
additional  penalties  under  the   Unfair  Trade  Practices  and                                                               
Consumer Protection Act, which can be very severe.                                                                              
                                                                                                                                
SENATOR OGAN added that during his  years as a legislator, he has                                                               
heard a number  of businesses complain about  the food inspection                                                               
program.                                                                                                                        
                                                                                                                                
COMMISSIONER BALLARD  said DEC is  fully aware of  the complaints                                                               
about the existing program and is  not proud of that program. DEC                                                               
does  not  believe  the existing  program  serves  industry,  the                                                               
consumer,  the  legislature,  or  the administration,  so  it  is                                                               
proposing a new system for its replacement.                                                                                     
                                                                                                                                
8:35 a.m.                                                                                                                       
                                                                                                                                
SENATOR  FRENCH  said  the  debate  on this  bill  in  the  House                                                               
centered around the  fact that the state is  losing an inspection                                                               
process  and gaining  a  training program.  He  noted that  while                                                               
people acknowledge that better inspection  efforts could be made,                                                               
they  are reluctant  to do  away with  inspectors completely.  He                                                               
questioned whether it makes sense  to maintain some overlap until                                                               
the public is confident in the new program.                                                                                     
                                                                                                                                
COMMISSIONER BALLARD said there will  be a period of overlap. DEC                                                               
knows it must pace the change so  that it will work in the field.                                                               
New regulations  will take several  years to write, and  she does                                                               
not expect  the new  program to be  fully functional  until 2006.                                                               
During that period  of time, DEC will work with  industry to deal                                                               
with the  transitional issues. She  emphasized that DEC  will not                                                               
be  abandoning  its presence  in  the  field;  it will  shift  to                                                               
compliance  and  enforcement. The  field  itself  will be  better                                                               
prepared  by virtue  of a  robust training  program and  required                                                               
standard   operating  procedures,   with   self  monitoring   and                                                               
documentation.                                                                                                                  
                                                                                                                                
MS.  RYAN maintained  that  DEC  does not  intend  to quit  doing                                                               
inspections. It will  maintain its same level  of inspections but                                                               
it will no longer rely only  on inspections. It will be adding to                                                               
its program.                                                                                                                    
                                                                                                                                
CHAIR   SEEKINS  noted   that  Senator   Therriault  joined   the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR OGAN asked for an explanation of Section 12.                                                                            
                                                                                                                                
CHAIR SEEKINS  pointed out  that Section 12  is the  Unfair Trade                                                               
Practices and Consumer Protection  Act provision, which gives DEC                                                               
more enforcement power.                                                                                                         
                                                                                                                                
MS. RYAN said DEC added that  change because it is often asked to                                                               
enforce labeling  violations that  are not  a food  safety issue.                                                               
For example, local producers were  concerned that Budweiser tried                                                               
to  market a  beer that  looked like  it was  made in  Alaska and                                                               
would compete with Alaskan beers. DEC  feels that is not a safety                                                               
issue; it is a consumer protection  matter. HB 378 will allow DEC                                                               
to share enforcement with the Department of Law.                                                                                
                                                                                                                                
CHAIR SEEKINS indicated  that section would apply  to food safety                                                               
issues if someone wanted to prosecute.                                                                                          
                                                                                                                                
SENATOR OGAN asked  how Section 13, pertaining  to organic foods,                                                               
would be enforced.                                                                                                              
                                                                                                                                
MS. RYAN said  the Division of Agriculture will  be enforcing the                                                               
Organic  Food Labeling  Act under  a similar  section in  its own                                                               
statute. It will be going  after the certifications from the Food                                                               
and Drug Administration to implement it.                                                                                        
                                                                                                                                
COMMISSIONER  BALLARD added  that  the  principle inspection  and                                                               
enforcement  functions will  have  to do  with  whether the  food                                                               
product has been  certified as organic, and not  with testing the                                                               
product  itself.   She noted  that few  food producers  in Alaska                                                               
have   been  certified   as  organic,   but   she  expects   more                                                               
certifications in the future.                                                                                                   
                                                                                                                                
CHAIR SEEKINS said the legislature is  taking a big leap of faith                                                               
with the language on  page 2 in that it must  trust that DEC will                                                               
not unnecessarily restrict businesses.                                                                                          
                                                                                                                                
COMMISSIONER BALLARD  said it makes  DEC nervous that  rules that                                                               
are simple to  understand and implement may not  be available for                                                               
lack of  training and standard  operating procedures  in licensed                                                               
establishments that are serving food  to the public. She repeated                                                               
that food  borne illness is not  an accident - it  is an incident                                                               
of poor performance.  DEC believes it can  deliver the protection                                                               
required by  the Constitution with  this program, which  has been                                                               
tested elsewhere in  the country. She pointed out  that Alaska is                                                               
the only state  that is not delivering health  inspections at the                                                               
county or lower health department level.                                                                                        
                                                                                                                                
CHAIR  SEEKINS said  that is  what  the legislature  needs to  be                                                               
assured of.  The legislature's  intent is to  allow DEC  to train                                                               
and assist  people to  perform in  a safe  manner, not  to impose                                                               
draconian methods.                                                                                                              
                                                                                                                                
COMMISSIONER  BALLARD   said  a   year  ago,  DEC   conducted  an                                                               
inspection at  a supermarket deli  in Kodiak. All appeared  to be                                                               
fine, however  within two weeks,  the operator notified  DEC that                                                               
an  employee she  had sent  to  the hospital  was diagnosed  with                                                               
hepatitis. The division took 500  inoculations to Kodiak at great                                                               
expense to  the state  and difficulty  and inoculated  496 people                                                               
who  had purchased  food from  that operator;  no one  contracted                                                               
hepatitis. She said  hepatitis changes one's quality  of life for                                                               
life.  She  believes   that  is  one  of   the  fundamental  core                                                               
responsibilities that  the Constitution gave to  the legislature.                                                               
DEC cannot  continue to operate  a program where  its inspections                                                               
achieve  nothing.  She  believes   the  new  program  would  have                                                               
prevented that incident from occurring.                                                                                         
                                                                                                                                
SENATOR THERRIAULT asked if DEC  will have the latitude to accept                                                               
an  inspection and  training program  offered by  a franchise  in                                                               
lieu of DEC's program.                                                                                                          
                                                                                                                                
MS.   RYAN  pointed   out  that   even  restaurant   chains  have                                                               
significant  problems and,  because  they serve  so many  people,                                                               
they  are a  greater  risk.  DEC is  currently  proposing that  a                                                               
person  get a  food handler  card,  which will  require taking  a                                                               
test.  Therefore, if  the company  provides  training, that  will                                                               
help  the employee  pass  the  test faster.  DEC  will offer  the                                                               
training  on-line, free  of  cost. The  applicant  can print  the                                                               
booklet off  of the Internet  and then  take a written  test. She                                                               
noted  that  most  large  chains require  their  managers  to  be                                                               
certified  in a  nationally accredited  program. DEC  will accept                                                               
that certification.                                                                                                             
                                                                                                                                
COMMISSIONER BALLARD added that one  aspect of the new program is                                                               
that in addition  to the training and  certification, DEC expects                                                               
the  level  of  attention  to standard  operating  procedures  to                                                               
increase  because  DEC will  require  it  to be  documented.  She                                                               
likened those  procedures to  those used  by airline  pilots, who                                                               
check  their  instruments  before  every  take-off  and  document                                                               
readings.                                                                                                                       
                                                                                                                                
CHAIR SEEKINS took public testimony.                                                                                            
                                                                                                                                
MS. ALICIA  [INDISC.] from  Anchorage commented  about additional                                                               
enforcement powers under Section 12.                                                                                            
                                                                                                                                
SENATOR THERRIAULT  moved HB 378  from committee  with individual                                                               
recommendations and its attached fiscal notes.                                                                                  
                                                                                                                                
CHAIR  SEEKINS  announced  that  without  objection,  the  motion                                                               
carried.                                                                                                                        

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