BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1372
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          -Date of Hearing:   April 28, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
                    AB 1372 (Feuer) - As Amended:  April 22, 2009
           
          SUBJECT  :   Food processing establishments: Hazard Analysis and  
          Critical Control Point plans.

           SUMMARY  :   Requires specified food processing establishments  
          (FPEs) to adopt and implement a Hazard Analysis and Critical  
          Control Points (HACCP) plan, conduct regular testing of  
          ingredient and product samples or specimens, and report any test  
          result that is positive for poisonous or deleterious substances  
          to the Department of Public Health (DPH) within 24 hours, as  
          specified.  Specifically,  this bill  :  

          1)Requires a FPE that generates more than an unspecified amount  
            of gross annual revenue to adopt and implement a HACCP plan by  
            January 1, 2012.  Requires DPH to prescribe the minimum  
            contents of the HACCP plan.

          2)Requires a FPE that generates less than an unspecified amount  
            of gross annual revenue to adopt and implement a HACCP plan by  
            January 1, 2012.  Requires DPH to prescribe the minimum  
            contents of the HACCP plan.

          3)Directs DPH to establish, by regulation, the minimum  
            requirements of a general HACCP plan by February 1, 2010, and  
            requires the regulation to at least adhere to the HACCP  
            principles and application guidelines adopted by the National  
            Advisory Committee on Microbiological Criteria for Foods.

          4)Specifies that the regulation must provide both of the  
            following:

             a)   Describe the procedures, as specified, used at the FPE  
               to prevent the presence of hazards, such as poisonous or  
               deleterious substances or other contaminants that may  
               render finished foods or ingredients manufactured at the  
               establishment injurious to health; and,
             b)   Provide for the regular testing of samples or specimens  
               of ingredients and final product at the FPE for the  
               presence of poisonous or deleterious substances or other  
               contaminants that may render the food and ingredients  








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               injurious to health.

          5)Directs a FPE, in complying with 4) above, to conduct testing  
            in a manner consistent with certain specified standards.

          6)Requires a FPE to report to DPH any test result this is  
            positive for poisonous or deleterious substances or other  
            contaminants within 24 hours.

          7)Requires a FPE to maintain a record of all testing that is  
            done pursuant to this bill for a minimum period of unspecified  
            years.  Directs the FPE to make these records available to DPH  
            for inspection upon request.

          8)Authorizes DPH to do any or all of the following in  
            implementing this bill:

             a)   Adopt rules and regulations that establish minimum  
               standards and requirements for a product-specific HACCP  
               plan; and/or,
             b)   Review all HACCP plans, as adopted by the FPE, to  
               determine that the HACCP plan meets the requirements of  
               this bill and any applicable rules and regulations.  

          9)Directs DPH to conduct inspections to ensure that a FPE  
            complies with its HACCP plan.

          10)Requires the inspections pursuant to 9) above to be conducted  
            as part of DPH's existing authority to inspect FPEs and  
            requires the existing fee for inspections to be increased by  
            an additional unspecified amount to cover, but not exceed, the  
            cost of the inspections required by this bill.

          11)Allows DPH, upon reasonable grounds to suspect that food or  
            ingredients, or both, at a FPE may be injurious to health, to  
            order the FPE to test samples or specimens of its food or  
            ingredients, or both, for the presence of any poisonous or  
            deleterious substances or other contaminants.   

           EXISTING LAW  :

          1)Establishes the Food and Drug Branch (FDB) within DPH to  
            regulate the manufacture, processing, storage, and  
            distribution of food products in California.  









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          2)Requires a facility that manufactures, processes, or stores  
            food products in California to register with FDB.

          3)Establishes the California Food Sanitation Act to require FPEs  
            to meet prescribed sanitation requirements for food safety.

          4)Defines a FPE as any room, building or place or portion  
            thereof, maintained, used or operated for the purpose of  
            commercially storing, packaging, making, cooking, mixing,  
            processing, bottling, canning, packing, slaughtering, or  
            otherwise preparing or handling food except restaurants.

           FISCAL EFFECT  :   This bill has not yet been analyzed by a fiscal  
          committee.                                                

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  The author states that current recalls  
            of products both in California and around the nation have  
            illustrated the need for more robust state oversight.  Last  
            summer, a salmonella outbreak made 1,400 people sick in 43  
            states, and initially tomatoes were identified as the source.   
            However, the author notes that the outbreak was later traced  
            to jalape?os and serrano peppers, but the author points out  
            that the tomato industry still has not fully recovered as a  
            result.  According to the author, estimates suggest that  
            tomato growers lost $100 million in sales. 

          Most recently, the author cites a nationwide recall of  
            salmonella-contaminated pistachios issued by a California  
            pistachio processor.  The author states that the contaminated  
            product was initially identified on March 26, 2009, by a Kraft  
            Foods food-borne illness test, and then traced back to Setton  
            Farms of Terra Bella in California.  The author asserts that  
            the entire domestic pistachio industry, 96% of which is in  
            California, is currently in turmoil because consumers do not  
            know which companies' pistachio products are safe to eat.  The  
            author indicates that over 2 million pounds of pistachios have  
            been recalled and the state's entire $540 million pistachio  
            industry is facing the consequences.

          Furthermore, the author notes that the state does not currently  
            require the adoption of plans that detail which procedures  
            will be used to prevent the presence of hazards that may  
            render finished food products or ingredients manufactured at  








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            the establishment injurious to health.  The author maintains  
            that DPH is not informed if testing samples of food are found  
            to contain poisonous substances and lacks the ability to order  
            testing if it believes there are reasonable grounds to do so.   
            The author contends that establishing HACCP plans at  
            individual processing plants will make California's food  
            safety system more preventative.

           2)PISTACHIO RECALL  .  According to information from the federal  
            Food and Drug Administration (FDA) and DPH, the joint  
            investigation of salmonella contamination in pistachios and  
            pistachio products at Setton Farms is ongoing.  Setton is  
            recalling all lots of roasted in-shell pistachios and roasted  
            shelled pistachios that were produced from nuts harvested in  
            2008 and some pistachios from the 2007 crop that were  
            processed on the same equipment as the 2008 crop.  Setton is  
            also recalling those raw shelled pistachios from the 2008 crop  
            and some from the 2007 crop that were also processed on the  
            same equipment as the 2008 crop.  

          Initially, Setton's recall was limited to certain lots of  
            roasted pistachios.  After FDA shared information with Setton  
            from the joint FDA and DPH inspection, which indicated the  
            presence of salmonella in critical areas of Setton's facility  
            and the potential for cross-contamination between raw and  
            roasted products, Setton expanded its recall on April 6, 2009.  
              The FDA states that, because the pistachios were used as  
            ingredients in a variety of foods, this recall affects many  
            products and is expected to result in additional recalls. The  
            FDA has created a searchable database of recalled products at  
             http://www.fda.gov/pistachios/  and will continue to update the  
            public as the investigation progresses.  In the meantime, the  
            FDA is advising consumers to avoid eating pistachios or food  
            products containing them, such as pistachio bakery goods and  
            pistachio ice cream, until they can determine that the  
            products do not contain pistachios recalled by Setton.

           3)HACCP PLANS  .  According to DPH, HACCP is a system that helps  
            ensure the safety of foods.  HACCP was developed in the 1960s  
            for the space program.  HACCP is used to identify potential  
            problems with food products and implement corrections before  
            the products reach consumers.  HACCP is mandatory for seafood  
            and juice products regulated by FDB and for meat products  
            under jurisdiction of the U.S. Department of Agriculture.  DPH  
            indicates that although HACCP is optional in most foods, many  








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            processors have voluntarily implemented HACCP programs within  
            their manufacturing and distribution facilities.

          A HACCP plan involves seven principles to ensure food safety at  
            the production site: analyze hazards, identify critical  
            control points, establish preventive measures with critical  
            limits for each control point, establish procedures to monitor  
            the critical control points, establish corrective actions to  
            be taken when monitoring shows that a critical limit has not  
            been met, establish procedures to verify that the system is  
            working properly, and establish effective recordkeeping to  
            document the HACCP system.  The general guidelines for HACCP  
            plans mandated at the federal level are developed by the  
            National Advisory Committee on Microbiological Criteria for  
            Foods.

           4)PROCESSED FOOD REGISTRATION  .  Processors of general food  
            commodities must obtain a Processed Food Registration (PFR)  
            from FDB.  General foods such as bakery products, noodles,  
            seafood (except molluscan shellfish), fruit juices, snacks,  
            nuts, oils, processed or packaged vegetables, and candy are  
            regulated by the PFR program.  The PFR is a basic license  
            issued to FPEs that allows them to legally manufacture,  
            package, label, or warehouse food in California.  The PFR  
            provides evidence to a FPE's customers and to regulatory  
            agencies that the FPE is licensed and inspected by FDB.  The  
            registration fee is determined by the size of the FPE, the  
            number of employees, and the FPE's activities (i.e.  
            manufacturing or warehousing).  Funds from registration fees  
            are used to support the FDB's Food Safety Inspection Program.   
            A FPE's PFR registration is valid for one year.

           5)FACILITY INSPECTIONS  .  DPH reports that FDB conducts  
            regulatory inspections to assure the safety of food products  
            manufactured, processed, stored or distributed in California.  
            The frequency of inspections may be determined by requirements  
            in law, risks associated with the food, and a FPE's history of  
            compliance, complaints and/or reports of illness.  The four  
            most common inspections are readiness inspections, routine  
            inspections, reinspections, and complaint, recall, or illness  
            inspections.  Readiness inspections are conducted to verify a  
            FPE's compliance with applicable health and safety  
            requirements prior to beginning processing operations. A  
            readiness inspection usually occurs after FDB receives a FPE's  
            initial PFR application.  








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          FDB routinely inspects FPEs based on the risk associated with  
            the operation.  Most facilities are inspected annually;  
            however, some low risk facilities may be inspected less  
            frequently, and some very high risk facilities may be  
            inspected more frequently.  Reinspections are recommended if  
            significant deficiencies are identified during the routine or  
            readiness inspection.  Reinspections are conducted to assure a  
            FPE's compliance and verify that corrective actions have  
            occurred.  A FPE is charged a fee of $100 per hour to conduct  
            a reinspection.  Complaint, recall, or illness inspections are  
            usually assigned because a food is known to be adulterated or  
            misbranded, or FDB has received a complaint or illness report.  
            These inspections may be conducted at times other than normal  
            business hours when there is a potential for significant,  
            adverse impact to the public.  They are generally urgent in  
            nature and frequently involve extensive facility inspections  
            and record reviews.

           6)RELATED LEGISLATION  .  

             a)   SB 173 (Florez), among other things, provides DPH with  
               mandatory recall authority of food reasonably or  
               scientifically believed to carry a food-borne illness,  
               infection, pathogen, contagion, toxin, or cause illness in  
               humans; requires all growers or food processors that test  
               for food-borne illness to maintain records and results of  
               those tests for at least two years; and requires growers or  
               food processors that receive a positive test result for  
               food-borne illness to report to DPH within one hour of the  
               test result.  SB 173 is pending in the Senate Health  
               Committee.

             b)   AB 1021 (Emmerson) authorizes DPH to immediately suspend  
               the license or order the closure of a FPE if imminent  
               health hazards are observed.  AB 1021 is pending in the  
               Assembly Health Committee.

           7)SUPPORT  .  Consumers Union (CU) writes in support that this  
            bill will make up for major lapses by the FDA in protecting  
            the food supply.  CU points out that the FDA inspects FPEs on  
            average only once every ten years, inspects just 1% of the  
            foods coming in from other countries, and has no authority to  
            require companies to recall their potentially contaminated  
            products, to test their products for pathogens, or to disclose  








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            to FDA when contaminants are found.  CU maintains that the  
            requirements in this bill to establish and implement safety  
            standards and HACCP plans at California's FPEs, provide for  
            inspections and regular testing of products for pathogens, and  
            mandate the disclosure of positive test results to DPH will do  
            much to safeguard the state's food supply and ensure that  
            California is a leader on the food safety front. 

           8)AUTHOR'S AMENDMENTS  .  The author intends to offer amendments  
            in committee to replace "establishment" with "facility" and  
            correct other drafting errors, and to clarify that the sample  
            or specimen testing that a FPE is required to do, will be  
            based on the most current versions of the standards specified  
            in this bill. 

           9)POLICY COMMENT  .  This bill does not specify the amount of  
            gross annual revenue that an FPE must generate in order to be  
            subject to the requirements of this bill and does not specify  
            the number of years that a FPE is required to maintain a  
            record of all testing that is done pursuant to this bill.  The  
            author may wish to clarify how these amounts will be  
            determined in a manner consistent with this bill.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Consumers Union

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Cassie Rafanan / HEALTH / (916)  
          319-2097