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--- STAFF ANALYSIS OF ASSEMBLY BILL 1014 (Fletcher and Chesbro)Page 2 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 STAFF ANALYSIS OF ASSEMBLY BILL 1014 (Fletcher and Chesbro)Page 3 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 STAFF ANALYSIS OF ASSEMBLY BILL 1014 (Fletcher and Chesbro)Page 4 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. STAFF ANALYSIS OF ASSEMBLY BILL 1014 (Fletcher and Chesbro)Page 5 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 STAFF ANALYSIS OF ASSEMBLY BILL 1014 (Fletcher and Chesbro)Page 6 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. -- END --