BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 201
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          Date of Hearing:   June 24, 2008

                            ASSEMBLY COMMITTEE ON HEALTH
                              Mervyn M. Dymally, Chair
                     SB 201 (Florez) - As Amended:  June 18, 2008

           SENATE VOTE :   Not relevant
           
          SUBJECT  :   Dairy farms: raw milk: testing: standards.

           SUMMARY  :   Establishes the Fresh Raw Milk Act of 2008 to require  
          raw milk dairy farms that choose to comply with the requirements  
          of this bill to develop and maintain an individualized Hazard  
          Analysis Critical Control Point (HACCP) plan, as specified.   
          Specifically,  this bill  :   

          1)Requires a dairy farm that produces and processes raw milk to  
            develop and maintain an individualized HACCP plan for each  
            critical process in the production and processing of raw milk  
            on the dairy farm.

          2)Defines a "dairy farm that produces and processes raw milk" as  
            a vertically integrated operation that includes a dairy farm  
            and processing plant owned and operated by the same entity  
            that produces guaranteed raw milk, or Grade A raw milk, to be  
            sold to the consumer.

          3)Requires the HACCP plan to be approved or rejected by the  
            California Department of Food and Agriculture (CDFA) and the  
            State Department of Public Health (DPH) within 60 days of  
            receipt.

          4)Requires, if the plan is not accepted, CDFA, in consultation  
            with DPH, to provide a written statement of the reasons for  
            not approving the plan.

          5)Specifies that a raw milk dairy farm that complies with this  
            bill must comply with the plan as approved by CDFA and DPH.

          6)Requires any material change to an approved plan to be  
            approved by CDFA and DPH prior to implementation pursuant to  
            #3) and #4) above.

          7)Allows a third party specializing in the auditing of HACCP  
            plans that has been approved by CDFA to conduct audits of a  








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            raw milk dairy farm pursuant to this bill to ensure compliance  
            with the plan, and requires the results of the audits to be  
            transmitted electronically as specified.

          8)Requires a raw milk dairy farm that has implemented a HACCP  
            plan to provide HACCP plan training for employees working in  
            the production and processing of raw milk and requires the  
            training provided to be documented as specified.

          9)Requires a laboratory approved by CDFA to verify a HACCP plan  
            prior to its implementation and requires the laboratory  
            verification to be maintained with the HACCP plan for the  
            duration of its implementation.

          10)Directs the entity operating the raw milk dairy farm pursuant  
            to a HACCP plan to designate at least one person to be  
            responsible for verification of the plan and provide specified  
            HACCP plan training to that designated person.  

          11)Specifies that HACCP plan training records for the designated  
            person must be retained for the duration of employment or a  
            minimum of two years, whichever is greater. 

          12)Requires the raw milk dairy farm to maintain all calibration  
            records relating to specified monitoring equipment for a  
            minimum of two years.

          13)Permits CDFA, in consultation with DPH, to suspend or revoke  
            its approval of a HACCP plan without prior notice for  
            specified reasons.

          14)Specifies due process procedures available to a raw milk  
            dairy farm that has been notified in writing that its HACCP  
            plan has been suspended or revoked.

          15)Prohibits a raw milk dairy farm from receiving any raw milk  
            from a non-raw milk dairy farm.

          16)Requires a raw milk dairy farm to have its raw milk tested  
            twice per week by a state accredited laboratory for specified  
            bacteria and a standard plate count from a location deemed  
            appropriate by CDFA and requires the results to be transmitted  
            electronically as specified. 

          17)Requires, with certain exceptions, the data and results from  








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            the tests conducted pursuant to #16) above to be used for  
            informational, not enforcement, purposes only.

          18)Requires a raw milk dairy farm to have its raw milk sampled  
            and tested at least once per month by the CDFA for specified  
            bacteria that cause illness in humans and requires CDFA to  
            deem raw milk containing an amount of any such bacteria  
            sufficient to cause illness in humans as nonconforming.

          19)Specifies that CDFA may take raw milk samples from a location  
            it deems appropriate.   

          20)Prohibits a raw milk dairy farm that complies with the  
            requirements of this bill from being required to comply with  
            bacteria standards established in existing law.

          21)Requires a raw milk dairy farm to notify CDFA in writing of  
            its intent to comply with the requirements of this bill at  
            least 30 days prior to submitting any information required by  
            this bill.

          22)Requires a raw milk dairy farm that does not choose to opt in  
            to the requirements of this bill to comply with bacteria  
            standards established in existing law.

           EXISTING FEDERAL LAW  prohibits the introduction into interstate  
          commerce of any unpasteurized milk product in final package form  
          that is intended for human consumption.


           EXISTING STATE LAW  :

          1)Establishes the Milk and Dairy Food Branch within CDFA to  
            inspect dairy farms and milk processing plants, and collect  
            samples of milk and milk products for safety and compliance  
            with microbial and compositional requirements.

          2)Establishes the Infectious Disease Branch within DPH to  
            conduct investigation, surveillance, prevention, and control  
            of general communicable diseases of public health importance,  
            including food-borne, water-borne, and vector-borne diseases.

          3)Authorizes DPH to quarantine, isolate, test specimens,  
            inspect, and disinfect persons, animals, homes, and other  
            property when DPH determines that these actions are necessary  








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            to protect or preserve health. 

          4)Requires raw milk that is sold to the public to meet a  
            microbial standard of 10 coliform bacteria or less per  
            milliliter.

          5)Requires the health of the cows of raw milk dairy farms to be  
            determined at least once per month by an official  
            representative of a milk inspection service approved by CDFA.

          6)Requires raw milk to be sold to the consumer within 30 hours  
            after production and labeled to indicate the date of the sale  
            to the consumer.

          7)Requires, in regulations, raw milk and raw milk products to  
            bear the following warning: "Raw and raw milk products may  
            contain disease-causing micro-organisms.  Persons at highest  
            risk of disease from these organisms include newborns and  
            infants; the elderly; pregnant women; those taking  
            corticosteroids, antibiotics, or antacids; and those with  
            chronic illnesses or other conditions that weaken their  
            immunity."

           FISCAL EFFECT  :   Unknown.  The Senate Appropriations Committee  
          analysis is not relevant to the current version of this bill.

           COMMENTS  : 

           1)PURPOSE OF THIS BILL  .   According to the author, current law  
            requiring raw milk to test at or below the limit of 10  
            coliform bacteria per milliliter is too restrictive and will  
            result in driving California's two raw milk dairies out of  
            business and removing the availability of raw milk on store  
            shelves.  The author asserts that the 10 coliform count is  
            impossible for these particular dairies to meet consistently  
            because coliform bacteria are regularly present in the  
            environment and in cows and the nature of their business  
            requires the milk to be in an unpasteurized state.   
            Furthermore, the author contends that the 10 coliform standard  
            is largely a measure of sanitation and less a measurement of  
            the presence of harmful bacteria.  Consequently, the author  
            states that this bill proposes a more effective but less  
            restrictive approach to sanitation and microbial standards by  
            requiring raw milk dairies that choose to opt in to develop  
            and maintain a HACCP plan to address every critical process on  








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            the dairy.  The author adds that this bill also subjects raw  
            milk dairies to rigorous testing absent in current law by  
            requiring them to submit samples to independent and  
            state-approved laboratories at least twice per week.  

           2)COLIFORM  .   According to CDFA, coliforms are a group of  
            bacteria commonly found in the environment, including soil,  
            surface water, vegetation, and the intestinal tracts of  
            warm-blooded animals.  Most coliforms do not cause disease,  
            but a small percentage, including E. coli, salmonella,  
            listeria, and campylobacter, can cause illness in people,  
            especially young children, the elderly, and those with  
            weakened immune systems.  Since most coliform bacteria are not  
            harmful, the finding of coliforms in milk does not necessarily  
            mean that a disease causing, or pathogenic, form of the  
            bacteria is present.  However, elevated coliform counts in  
            milk and dairy products suggest unsanitary conditions exist  
            during production, processing or packaging.  In the dairy farm  
            setting, a coliform count is a useful indicator of the extent  
            of fecal bacteria in the milk, and is a recognized index of  
            the level of sanitation at a facility.  

          CDFA states that the process of pasteurization easily kills  
            coliform bacteria in dairy products. Therefore, according to  
            CDFA, the finding of coliforms in pasteurized products  
            indicates some level of contamination has occurred after  
            pasteurization during product manufacturing or packaging.  For  
            milk sold raw, where no intervening pasteurization step is  
            utilized, CDFA indicates that coliform counts reflect  
            sanitation practices throughout milk handling, from the cow to  
            final bottling.  In addition to food safety and public health  
            concerns, coliforms, along with other bacteria, may produce  
            off flavors in milk and reduce shelf life of dairy products.  
            CDFA advises that strict sanitary practices be followed to  
            minimize the risk to people consuming raw milk products,  
            including thorough cleansing and sanitization of all the  
            milking system equipment, proper herd health maintenance,  
            proper hygiene control for employees, sufficient refrigeration  
            for proper cooling and storage, and cross-contamination  
            prevention.  

           3)BACKGROUND LITIGATION  .   AB 1735 (Committee on Agriculture),  
            Chapter 339, Statutes of 2007, establishes a limit of 10  
            coliform bacteria per milliliter of raw milk that is sold to  
            consumers.  After the bill became law, opposition, including  








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            the state's two raw milk producers and raw milk consumers,  
            came forward and raised concerns that this standard could not  
            be met and consumers may not have access to raw milk.  In  
            March 2008, the Hollister Superior Court in San Benito County  
            granted the state's two raw milk dairy operators, Claravale  
            Dairy, Inc., and Organic Pastures Dairy Company, LLC., a  
            temporary restraining order (TRO) enjoining and barring CDFA  
            from using the 10 coliform count as a measure in raw milk  
            production based on arguments from the dairy operators that  
            the new standard is unnecessary and raw milk naturally  
            contains helpful bacteria that neutralize harmful bacteria.   
            However, in May 2008, the court denied a request by the dairy  
            operators for a preliminary injunction to continue prohibiting  
            the state from enforcing the 10 coliform standard for raw milk  
            and ordered the earlier TRO dissolved after the state argued  
            that it had a rational basis for establishing the standard in  
            AB 1735 in order to protect the public from food-related  
            illness.

           4)RECENT RECALLS  .   In September 2006, CDFA announced a  
            statewide recall and quarantine order of raw milk produced by  
            Organic Pastures in Fresno County.  Under the recall, all  
            Organic Pastures whole and skim raw milk was pulled  
            immediately from retail shelves.  The quarantine order came  
            following a report that raw milk caused bacterial illness,  
            identified as E. coli, in a 10-year old girl and a subsequent  
            investigation by DPH (formerly the Department of Health  
            Services) detected two additional bacterial illnesses in  
            children consuming raw milk.  Epidemiologic data collected by  
            DPH at the time pointed to a link in all three cases with  
            Organic Pastures raw milk but, according to CDFA, laboratory  
            samples of raw milk from the dairy did not detect E. coli  
            contamination.  In September 2007, CDFA issued an order to  
            withdraw Organic Pastures raw cream from retail distribution  
            when listeria bacteria was detected as a result of product  
            testing conducted as part of routine inspection and sample  
            collection at the facility.  According to Organic Pastures,  
            the cream was purchased from a non-raw milk dairy.  

           5)RECENT INFORMATIONAL HEARING  .   In April 2008, the Senate  
            Agriculture Committee and Senate Select Committee on  
            Food-Borne Illness convened a joint informational hearing  
            related to farm fresh milk.  Panels of interested  
            stakeholders, representing scientists, public health  
            officials, raw milk dairies, raw milk retailers, and raw milk  








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            consumers provided testimony regarding public health concerns,  
            product safety, potential benefits of unprocessed milk, and  
            consumer choice.  During the hearing, participants noted that  
            raw milk processing lacks a single critical control point, or  
            kill-step, such as pasteurization, that is designed to  
            eliminate pathogens in the milk.  Some scientists suggested a  
            HACCP plan as an alternative to the current single 10 coliform  
            count test performed once a month because it focuses on the  
            end result as an indicator of sanitation while a HACCP plan  
            focuses on sanitation throughout the entire milking process by  
            requiring monitoring, employee training, record-keeping, and  
            verification.  While other experts pointed to the risks for  
            illness associated with the consumption of raw milk and cited  
            the federal Food and Drug Administration's (FDA) warning that  
            it is inherently dangerous, several raw milk consumers  
            insisted that milk in its natural state is full of beneficial  
            enzymes, vitamins, proteins, and good bacteria that help to  
            counter conditions as diverse as lactose intolerance, asthma,  
            allergies, ear infections, and autism.  

           6)DAIRY HACCP PLANS  .   According to the FDA, a HACCP plan is a  
            systematic approach to identifying, evaluating, and  
            controlling food safety hazards.  A dairy HACCP plan covers  
            the entire dairy foods manufacturing process starting with the  
            cow and finishing with the consumption of the final product.   
            The HACCP plan identifies chemical, physical, or microbial  
            hazards associated with the production and distribution of  
            milk and minimizes these hazards by monitoring and controlling  
            the process at carefully selected points known as critical  
            control points (CCPs) to ensure safe dairy products.  In  
            instituting a HACCP plan, microbial and operational expertise  
            is needed to systematically and scientifically evaluate a  
            product's process from raw materials through distribution.   
            The dairy HACCP plan includes a process to verify that the  
            CCPs have been met, a corrective action plan to address  
            instances in which the CCPs are not met, and a record keeping  
            system to document compliance with the HACCP plan.  The plan  
            is reviewed as part of a facility's routine permitting  
            inspection.

           7)FEDERAL RAW MILK POLICY  .   Federal law requires milk that is  
            shipped across state lines to be pasteurized.  The FDA  
            maintains on its Website that raw milk should not be consumed  
            by anyone at any time for any purpose and may contain harmful  
            pathogens, including but not limited to, E. coli, salmonella,  








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            listeria, and campylobacter.  The FDA's Website also cites  
            statistics from the federal Centers for Disease Control and  
            Prevention (CDC) indicating that from 1998 to 2005, there were  
            45 outbreaks of food-borne illness in which unpasteurized milk  
            or cheese likely made from unpasteurized milk were implicated.  
             Lastly, the FDA asserts that pasteurization protects  
            consumers because it kills the pathogenic bacteria through the  
            heating process while raw milk potentially harbors a wide  
            range of dangerous pathogens that can cause illness.

           8)OTHER STATES  .   Raw milk policy varies greatly across the  
            nation, with some states banning the sale of raw milk.   
            California, Arizona, Nevada, Oregon, Utah and Washington have  
            specific coliform standards for milk sold raw to consumers.

           9)SUPPORT  .   The California Real Milk Association (CREMA) writes  
            in support that this strikes the appropriate balance between  
            protecting the safety of raw milk products and ensuring that  
            these products are available on retail shelves for the 40,000  
            raw milk consumers in California.  CREMA asserts that this  
            bill proposes more stringent standards for farm fresh milk  
            than what is provided under current law and ensures that  
            thousands of consumers and their children have access to this  
            whole and unprocessed food to maintain health.  Organic  
            Pastures points out in support that pasteurized milk, like raw  
            milk, is not without its own set of risks and it has also been  
            linked to food-borne illness.  Organic Pastures asserts that,  
            regardless of the risks associated with farm fresh milk,  
            consumers should be entitled to choose whether or not they  
            want to drink it.  The National Association of Nutrition  
            Professionals notes that this bill allows consumers to  
            continue to purchase raw milk but makes certain that it is  
            safe by, among other things, prohibiting raw milk dairies from  
            receiving milk from non-raw milk dairies.  Lastly, dairy trade  
            organizations state that this bill keeps the existing coliform  
            bacteria standard in place, and in addition, provides an  
            alternative safety program that a raw milk producer/processor  
            can use to meet sanitation standards that dairy product  
            consumers insist upon.

           10)OPPOSITION  .  The Health Officers Association of California  
            (HOAC) contends in opposition that this bill is an attempt to  
            circumvent the existing 10 coliform standard by allowing raw  
            milk dairies to establish internal HACCP plans at various  
            points in the production process.  HOAC asserts that the  








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            current coliform standard is not an unreasonable burden for  
            raw milk producers to meet as long as they maintain proper  
            cleaning and care of the animals and appropriate sanitary  
            practices for workers and equipment.

           11)RELATED LEGISLATION  .  AB 2284 (Galgiani) makes changes to the  
            cooling requirements for storage and transportation of  
            pasteurized and market, including raw, milk.  AB 2284 is  
            pending in the Senate Appropriations Committee.

           12)PRIOR LEGISLATION  .  

             a)   AB 1735 (Committee on Agriculture), Chapter 339,  
               Statutes of 2007, establishes a limit of 10 coliform  
               bacteria per milliliter of raw milk that is sold to  
               consumers.

             b)   AB 1604 (Parra) would have repealed the current standard  
               of 10 coliform bacteria or less per milliliter for raw milk  
               that is sold to the public and required enforcement of the  
               coliform bacteria standard to be suspended until June 30,  
               2008.  AB 1604 was referred to the Assembly Appropriations  
               Committee but never received a hearing.  

           13)SUGGESTED TECHNICAL AMENDMENT  .  On page 4, line 15, insert a  
            period after "milk".

           14)DOUBLE REFERRAL  .  This bill has been double-referred.  Should  
            this bill pass out of this committee, it will be referred to  
            the Assembly Committee on Agriculture.

           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Alliance of Western Milk Producers
          California Dairy Institute
          California Real Milk Association
          Organic Pastures Dairy Company LLC
          National Association of Nutrition Professionals
          Western United Dairymen
          Several individuals
           
            Opposition 








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          Health Officers Association of California


           Analysis Prepared by  :    Cassie Rafanan / HEALTH / (916)  
          319-2097