BILL ANALYSIS Ó
AB 1616
Page 1
ASSEMBLY THIRD READING
AB 1616 (Gatto)
As Amended May 3, 2012
Majority vote
HEALTH 15-0 APPROPRIATIONS 12-5
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|Ayes:|Monning, Ammiano, Atkins, |Ayes:|Fuentes, Blumenfield, |
| |Bonilla, Eng, Gordon, | |Bradford, Charles |
| |Hayashi, | |Calderon, Campos, Davis, |
| |Roger Hernández, Bonnie | |Gatto, Ammiano, Hill, |
| |Lowenthal, Mitchell, | |Lara, Mitchell, Solorio |
| |Nestande, Pan, | | |
| |V. Manuel Pérez, Smyth, | | |
| |Williams | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Regulates the production and sale of certain
non-potentially hazardous foods prepared in a home kitchen.
Specifically, this bill :
1)Makes various legislative findings and declarations related to
the growing movement in California to support community-based
food production.
2)Defines various terms for purposes of this bill, including the
following:
a) "Cottage food operation" (CFO) means an enterprise with
no more than $50,000 in gross annual sales that is operated
within the registered or permitted area of a private home
where cottage food products are prepared or packaged for
direct, indirect or both direct and indirect sale to
consumers;
b) "Class 'A' CFO" means a CFO that is required to register
with the local environmental health department (LEHD), in a
manner that includes an approved self-certification
checklist, as specified, to engage only in the direct sale
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of cottage food products;
c) "Class 'B' CFO" means a CFO that is required to obtain a
permit from the LEHD, in a manner approved by the LEHD, to
engage in the direct and indirect sale of cottage food
products;
d) "Cottage food operator" means an individual who operates
a CFO in his or her private home and is the owner of the
CFO;
e) "Cottage food products" means not potentially hazardous
foods, as defined in this bill, that are prepared for sale
in the kitchen of a CFO;
f) "Direct sale" means a transaction between a CFO operator
and a consumer, where the consumer is purchasing the
cottage food product directly from the cottage food
operation, including, but not limited to, holiday bazaars,
temporary events such as bake sales or food swaps, farm
stands, certified farmers' markets, community-supported
agriculture subscriptions, and sales occurring directly in
the home; and,
g) "Indirect sale" means an interaction between a CFO, a
third-party retailer, and a consumer, where the consumer
purchases cottage food products, made by the CFO, from a
third-party retailer, including but not limited to, sales
made to retail shops or to restaurants.
3)Exempts a CFO from the existing definition of a food
processing establishment and from existing law requiring
processors of general food commodities to obtain a Processed
Food Registration (PFR) from the Department of Public Health
(DPH).
4)Includes a CFO in the definition of a private home that is
exempt from regulation as a food facility under the California
Retail Food Code (CRFC).
5)Exempts food that is prepared by a CFO pursuant to the
requirements of this bill from existing provisions in the CRFC
that prohibit food stored or prepared in a private home from
being used or offered for sale in a food facility.
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6)Clarifies that a CFO that meets the requirements of this bill
may also provide food in a hermetically sealed container under
the CRFC.
7)Subjects a CFO to all of the following requirements with
regard to best practices and directs DPH to post these
requirements on its Internet Web site:
a) Requires a CFO to prohibit the preparation, packaging,
or handling of cottage food products from occurring
simultaneously with any other domestic activities, as
specified;
b) Prohibits a CFO from allowing infants, small children,
or pets in the home kitchen during the preparation,
packaging, or handling of cottage food products;
c) Requires a CFO to use only normal, noncommercial types
of kitchen equipment and utensils to produce cottage food
products;
d) Specifies that all food contact surfaces, equipment, and
utensils of a CFO used for the preparation, packaging, or
handling of any cottage food products must be washed,
rinsed, and sanitized before each use; and,
e) Requires all food preparation and food equipment storage
areas of a CFO to be maintained free of rodents and
insects.
8)Requires a registration or permit to be issued by a LEHD when
an investigation has determined that the proposed CFO and its
method of operation meet the requirements of this bill.
Clarifies that the registration or permit, once issued, is
nontransferable.
9)Authorizes a LEHD to recover the costs from a CFO related to
inspections for compliance with this bill, as specified.
10)Requires a CFO that is registered or permitted pursuant to
this bill to be considered a restricted food service facility
(RFSF) for purposes of complying with specified provisions of
the CRFC that apply to RFSFs.
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11)Requires DPH to adopt and post on its Internet Web site a
list of specified items that constitute permissible
non-potentially hazardous foods to be sold by a CFO.
Specifies that additions to this list are subject to approval
by DPH.
12)Requires a person of a CFO involved in the preparation and
packaging of cottage food products to refrain from work in the
registered or permitted area of a CFO when sick with a
contagious illness; to keep his or her hands and exposed
portions of his or her arms clean; to wash his or her hands
before engaging in any food preparation and food packaging
activity; and, to complete a food handler training course, as
specified.
13)Requires water used during the preparation of cottage food
products, including water used for the washing, sanitizing,
and drying of any equipment, and for the washing, sanitizing,
and drying of hands and arms, to meet existing potable
drinking water standards, as specified. Clarifies that a CFO
is not required to have an indirect sewer connection.
14)Requires a CFO to include a statement on its food package
that informs the consumer that the product was prepared in a
private home and contains the CFO's registration or permit
number issued by the LEHD.
15)Subjects a CFO to various specified local government
regulations with regard to zoning, local ordinances, and use
permits.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)On-going costs of up to $200,000 General Fund (GF) per year
for DPH to conduct any multijurisdictional emergency response
foodborne out-break investigations, assuming there are
approximately 45 such outbreaks per year.
2)One-time costs of $300,000 GF, spread over two years, for DPH
to develop regulations and maintain and publish a list of food
products that can be safely prepared and sold to the public.
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3)Unknown costs, likely several hundred thousand dollars per
year, for LEHDs to approve and certify CFOs throughout the
state. Those costs would be offset by licensing and
certification fees.
COMMENTS : According to the author, this bill was introduced in
response to a May 2011 article in the Los Angeles Times that
profiled the bread making business of one of the author's
constituents. A short time after the article appeared, the
constituent's business was shut down by public health officials.
The author states that allowing the in-home production and
distribution of certain homemade non-potentially hazardous food,
such as breads, tortillas, dry roasted nuts and legumes,
empanadas, granola, churros, jams, and jellies, in California
will enable micro-entrepreneurs to provide for their families
during these difficult economic times and contribute to the
state's economic recovery.
In providing technical assistance regarding this bill, DPH notes
that CFOs are actually food processors that are not setting up
as a restaurant, cafeteria, caterer or other food service
operation that is typically regulated by LEHDs under the CRFC.
DPH states that this bill will currently enable these operations
to manufacture, package, and label foods on a small scale, which
is what DPH is responsible for overseeing under the PFR program.
DPH adds that there are a host of process controls, processing
methods and container/packaging safety issues that come into
play with processed food that do not exist in regular retail
food facilities.
Supporters, representing cottage food producers and advocates,
write that this bill will help eliminate hunger, food
insecurity, and nutrition-related chronic disease by removing
barriers to small-scale food production and promoting
development of a healthy, sustainable community-based food
system that benefits food producers and purchasers alike.
Analysis Prepared by : Cassie Royce / HEALTH / (916) 319-2097
FN: 0003849
AB 1616
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