BILL ANALYSIS                                                                                                                                                                                                    Ó






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                       Senator Ed Hernandez, O.D., Chair


          BILL NO:       AB 1014                                     
          A
          AUTHOR:        Fletcher and Chesbro                        
          B
          AMENDED:       As Introduced                               
          HEARING DATE:  June 8, 2011                                
          1
          CONSULTANT:                                                
          0
          Nguyen                                                     
          1
                                                                     
          4

                                        
                                     SUBJECT
                                         
                          Food facilities: definition
                                         

                                    SUMMARY  

          Exempts premises set aside by a beer manufacturer, as 
          defined, for beer tasting, from the definition of a food 
          facility, thereby, exempting beer tasting premises from the 
          provisions of the California Retail Food Code.


                             CHANGES TO EXISTING LAW  

          Existing law:
          Establishes the California Retail Food Code (CalCode) which 
          establishes health and sanitation standards for retail food 
          facilities, as defined.  Makes the Department of Public 
          Health responsible for the adoption of regulations to 
          implement and administer CalCode, and vests local 
          enforcement agencies with primary responsibility for 
          enforcement of CalCode.

          Defines a food facility as an operation that stores, 
          prepares, packages, serves, vends, or otherwise provides 
                                                         Continued---



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          food for human consumption, on or off the premises, 
          regardless of whether there is a charge, at the retail 
          level. Food facilities include, but are not limited to, 
          permanent and nonpermanent facilities, public and private 
          school cafeterias, restricted food service facilities, 
          licensed health care facilities, commissaries, mobile food 
          facilities, mobile support units, temporary food 
          facilities, vending machines, certified farmers' markets, 
          as specified, and farm stands, as specified.

          Exempts from the definition of a food facility and from the 
          provisions of CalCode premises set aside for wine tasting, 
          that comply with glassware cleaning provisions, regardless 
          of whether there is a charge for the wine tasting, if no 
          other beverage, except for bottles of wine and prepackaged 
          nonpotentially hazardous beverages, is offered for sale for 
          onsite consumption, and no food, except for crackers, is 
          served.
          This bill:
          Exempts from the definition of a food facility and from the 
          provisions of CalCode premises set aside by a beer 
          manufacturer, as defined, for the purposes of beer tasting, 
          regardless of whether there is a charge for the beer 
          tasting, if no other beverage, except for beer and 
          prepackaged nonpotentially hazardous beverages, is offered 
          for sale for onsite consumption, and no food, except for 
          crackers or pretzels, is served.


                                  FISCAL IMPACT  

          According the Assembly Appropriations Committee analysis, 
          there are no significant costs associated with AB 1014.


                            BACKGROUND AND DISCUSSION  

          According to the author, AB 1014 would provide regulatory 
          relief for small brewers and promote the growth of 
          California's craft brewing industry.  The author states 
          that craft brewers must currently make substantial 
          financial commitments to install serving facilities that 
          are on par with restaurants.  The author contends that beer 
          is not a food and should not be subject to the same 
          requirements as a facility that serves food. For many of 




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          these craft brewers, the expense associated with these 
          regulatory requirements is prohibitive and prevents them 
          from even considering operating tasting rooms. The author 
          argues that removing these regulatory measures provides the 
          industry with flexibility to provide a great product, offer 
          quality jobs, and promote tourism throughout the state.

          California Retail Food Code
          SB 144 (Runner), Chapter 23, Statutes of 2006, repealed the 
          California Uniform Retail Food Facilities Law (CURFFL) and 
          established the CalCode in order to create uniformity 
          between California's retail food safety laws and those of 
          other states, as well as to enhance food safety laws based 
          on the best available science.  CalCode is modeled on the 
          federal Model Food Code, which was drafted by the United 
          States Food and Drug Administration and is updated every 
          two years.  CalCode is substantially similar to the Model 
          Food Code in terms of its substantive food safety and 
          sanitation content.

          With the enactment of CalCode, local environmental health 
          departments have refocused their food facility inspections 
          to emphasize violations relating to federal Centers for 
          Disease Control and Prevention's (CDC) identified foodborne 
          illness risk factors and public health interventions.  The 
          CDC has identified the following foodborne illness risk 
          factors: food from unsafe sources, inadequate cooking, 
          improper holding temperatures, contaminated equipment, and 
          poor personal hygiene.  Public health interventions 
          identified by CDC include: demonstration of knowledge, 
          employee health, time and temperature control, hands as a 
          source of contamination, and consumer advisories.

          Violations of CalCode are considered misdemeanors, unless 
          otherwise specified, and can be punishable by a fine of not 
          less than $25 or more than $1000, or by imprisonment in the 
          count jail for up to 6 months, or by both fine and 
          imprisonment.  Local enforcement agencies can also charge 
          re-inspection fees and impose administrative penalties.  
          Additionally, local enforcement agencies can require that 
          retail food facilities establish a corrective action plan 
          with timelines to correct violations noted during 
          inspections.
          
          Current wine tasting exemption




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          AB 1778 (Areias), Chapter 1065, Statutes of 1985, 
          establishes the current exemption for wine tasting rooms 
          from the provisions of CalCode.  According to the analysis 
          by the Senate Health and Human Services Committee, existing 
          law at that time had been interpreted by county health 
          inspectors to require wineries that offer complimentary 
          samples to comply with licensing, permitting and sanitation 
          requirements applicable to food facilities.  The author 
          argued that wine is not a food and should not be subject to 
          the same requirements as a restaurant or other 
          establishment that prepares food onsite.  As a result, 
          premises set aside for wine tasting, as long as no food or 
          beverage is offered for sale for onsite consumption, were 
          exempted from the definition of a food facility in existing 
          law, provided they comply with proper glass cleaning and 
          sanitizing procedures.

          Beer tasting and code compliance
          According to the author, there are roughly 258 licensed 
          brewers in California, with approximately 70 percent 
          operating a tasting room.  Local enforcement agencies 
          inspect these facilities with varying frequency depending 
          on the county, the history of compliance, and whether 
          complaints have been made-from once a year to four times 
          per year. These facilities are also subject to fees for 
          health inspections that can amount to over $1,000. 
          According to the author and the sponsor, the California 
          Small Brewers Association (CSBA), beer manufacturers are 
          required to install industrial sinks, hand washing 
          stations, spill containment measures in all areas, 
          fiberglass reinforced panel walls, and restaurant-grade 
          coving; to lift all equipment 10 inches above the floor; to 
          remove garage-style roll-up doors and install strip doors, 
          to repaint the interior walls; to redo plumbing and 
          electrical wiring; to reinstall flooring; to comply with 
          regulations associated with dry storage; and to provide 
          hair nets and latex gloves. Under this bill, breweries 
          would be exempt from these CalCode requirement.

          Related bills
          SB 303 (Padilla) would clarify that the food handler card 
          requirement is limited to food handlers employed at food 
          facilities only at the retail-level. Set for hearing in the 
          Assembly Health Committee on June 14, 2011.





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          Prior legislation
          AB 2134 (Chesbro), Chapter 149, Statutes of 2010, creates a 
          new tied-house exception in the Alcoholic Beverage Control 
          Act that allows licensed brewers to conduct "beer maker 
          dinner" events for consumers held at on-sale retail 
          licensed premises.

          SB 144 (Runner), Chapter 23, Statutes of 2006, repeals 
          CURFFL and establishes CalCode which creates uniformity 
          between California's retail food safety laws and those of 
          other states by modeling California's code after the 
          federal Model Food Code using science-based standards.
          
          SB 241 (Runner), Chapter 571, Statutes of 2009, among other 
          things, clarifies the exemption for premises set aside for 
          wine tasting to apply regardless of whether there is a 
          charge for the wine tasting, and declares that these 
          provisions will take effect immediately as an urgency 
          statute.
          AB 1778 (Areias), Chapter 1065, Statutes of 1985, excludes 
          premises set aside for wine tasting if no other beverage, 
          except for bottles of wine and prepackaged nonpotentially 
          hazardous beverages, is offered for sale for onsite 
          consumption and no food, except for crackers, is served, 
          from the definition of a food facility.

          Arguments in support
          The sponsor of this bill, the CSBA, states that tasting 
          rooms are being inspected for compliance with food facility 
          standards even when food is not being served. Monkish 
          Brewing Company writes that beer tasting rooms have had to 
          expend significant resources complying with regulations 
          written for restaurants and food preparation facilities 
          that have no relation to the health and safety of customers 
          in a tasting room.  CSBA further argues that AB 1014 helps 
          to promote growth in California's beer manufacturing 
          industry.
          

                                  PRIOR ACTIONS

           Assembly Health:    18- 0
          Assembly Appropriations:17- 0
          Assembly Floor:     70- 0





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                                     COMMENTS
                                         
          1.  Glassware sanitation. AB 1014 would provide a blanket 
          exemption from the provisions of CalCode. From a 
          communicable disease standpoint, the Department of Public 
          Health has indicated some concern with regard to cleaning 
          and sanitizing drinking glasses. The author may wish to 
          consider amending the bill to ensure that proper cleaning 
          and sanitation procedures are being followed. The wine 
          tasting exemption requires premises set aside for wine 
          tasting to comply with Section 118375 of the Health and 
          Safety Code which specifies that drinking receptacles 
          provided for "common use" must be cleansed and sterilized 
          thoroughly between consecutive uses. Committee staff 
          recommends the following amendment on page 4, lines 18 to 
          24:

               (12) Premises set aside by a beer manufacturer, as 
               defined in Section 25000.2 of the Business and 
               Professions Code,  that comply with Section 118375,  for 
               the purposes of beer tasting, regardless of whether 
               there is a charge for the beer tasting, if no other 
               beverage, except for beer and prepackaged 
               nonpotentially hazardous beverages, is offered for 
               sale for onsite consumption, and no food, except for 
               crackers or pretzels, is served.
                                         

                                   POSITIONS  
                                        
          Support:  California Small Brewers Association (sponsor)
                    Monkish Brewing Co. LLC

          Oppose:   None received.


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