BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2505
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                           Susan Talamantes Eggman, Chair
                    AB 2505 (Yamada) - As Amended:  April 3, 2014
           
          SUBJECT  :   Milk: home dairy farms: sharing, exchange, or direct  
          sale of raw milk.

           SUMMARY  :   This bill defines a home dairy farm (HDF) as having  
          three or less lactating cows or 15 or less lactating goats and  
          sheep, as specified.  Allows a HDF to directly sell or share  
          excess raw milk, as specified.   Requires a HDF to follow health  
          and safety rules if the HDF sells or shares excess raw milk.   
          Specifically,  this bill  :  

             1.   Makes findings and declarations that farm families  
               consume and share raw milk from their own farm, that some  
               people prefer raw milk and prefer getting it from a local  
               known source, and states that raw milk consumption is legal  
               in California and in 33 other states. 
                  
             2.   States the intent of the legislation to allow farm  
               families that are a HDF to sell or share excess raw milk,  
               ensure the sales and sharing conform to appropriate health  
               and safety labeling, and to exempt an HDF operation from  
               laws and regulations that apply to larger scale retail milk  
               producers. 

             3.   Defines a HDF as any place where raw milk is produced,  
               with no more than three lactating cows or water buffalos or  
               no more than 15 lactating goats, sheep or other hooved  
               animals.  Requires that the raw milk produced on a HDF is  
               primarily for home consumption and not for retail sales.

             4.   Exempts an HDF from current construction, repair and  
               sanitation standards that apply to dairy farms.

             5.   Defines direct sales as transactions for raw milk  
               between a HDF farmer and a consumer, when the consumer buys  
               directly from the HDF farmer.  

                  a.        Limits direct sales to on site sales at a HDF,  
                    which can include preordering from the HSF; and,









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                  b.        Prohibits sales arranged online, through a  
                    retailer or other distributer. 

             6.   Defines a Home Dairy Farmer as a person who owns or  
               operates a HDF. 

             7.   Defines raw milk as milk produced at a HDF that is not  
               pasteurized, processed or otherwise adulterated. 

             8.   Prohibits a HDF from manufacturing, processing or online  
               or retail sales of raw milk. 

             9.   Prohibits a HDF from selling to exchanging raw milk at  
               farmers temporary food events, including farmer markets, as  
               specified. 

             10.  Allows a HDF to share, exchange or engage in direct sale  
               of raw milk, as specified, if the raw milk is from healthy  
               animals that reside on a HDF, and requires the raw milk to  
               be clean, pure and unadulterated and from healthy animals  
               that have not tested positive for diseases, as specified. 

             11.  Requires a HDF to have annual testing for brucellosis  
               and tuberculosis, as specified, and isolate and take other  
               appropriate action for animals that test positive, as  
               specified. 

             12.  Requires a HDF to keep the following records on site for  
               at least two years for  the following:

                  a.        Analyses and bacteriological examination of  
                    raw milk; and,

                  b.        Brucellosis and tuberculosis test result for  
                    HDF dairy animals. 

             13.  Requires HDF raw milk sold by direct sales to comply  
               with the following:

                  a.        In a container clearly labeled with the  
                    products' name, raw milk, keep refrigerated, the name  
                    and home address of the HDF, product quantity, date  
                    packages and warning of the health risk of raw milk,  
                    as specified;









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                  b.        Prohibits the HDF raw milk from being sold or  
                    made available for other distribution as market milk,  
                    guaranteed milk, certified milk, Grade A milk, or  
                    processed milk;

                  c.        Exempts the HDF raw milk from regulations  
                    applied to the milks categories of milk listed in (b)  
                    above; 

                  d.        Limits the size of the HDF raw milk containers  
                    to one gallon or less; and,

                  e.        Requires the HDF raw milk sold to be in  
                    bottles and labeled by use of an attached and readable  
                    neck tag, as specified. 

             14.  Requires that a HDF not mislabel or disseminate false  
               advertising related to health benefit claims, as specified.  


             15.  Requires a HDF that engages in sharing, exchanging and  
               direct sales of raw milk to do the following related to  
               care and feeding of HDF animals:

                  a.        Requires feed to not be spoiled or unfit for  
                    milk producing animals and be protected from  
                    contamination during storage;

                  b.        Requires animals kept in a sanitary and safe  
                    environment;

                  c.        Requires animals have access to clean water,  
                    as specified;

                  d.        Requires persons who come in contact with raw  
                    milk to be clean and free of communicable disease, as  
                    specified;

                  e.        Requires persons milking the animals must wash  
                    their hands before touching the animals;

                  f.        Requires animals milked to be in a location  
                    that has overhead protection in inclement weather, and  
                    the location is clean, as specified;









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                  g.        Requires animals to be kept clean during  
                    milking;

                  h.        Requires all equipment used for milking  
                    animals be cleaned and sanitized after each use and  
                    stored in a clean place, as specified;

                  i.        Requires the water supply used for cleaning  
                    animals or equipment to be potable;

                  j.        Requires that HDF raw milk provided to a  
                    consumer to be cooled, as specified, until provided to  
                    the consumer, and cannot contain more than 15,000  
                    bacteria per milliliter or more than 10 coliform  
                    bacteria per millimeter;

                  aa.       Requires that HDF raw milk provided to a  
                    consumer cannot contain more than 600,000 somatic  
                    cells per milliliter of cow's milk or no more than  
                    1,000,000 somatic cells per milliliter of goat's milk;

                  bb.       Requires that HDF raw milk provided to a  
                    consumer must be filtered, as specified; and, 

                  cc.       Prohibits a HDF raw milk consumer to resell or  
                    redistribute HDF raw milk.

             16.  Allows authorities to inspect a HDF for compliance  
               issues, if there has been a consumer complaint or other  
               reliable source of information, or reasonable belief of  
               non-compliance, as specified.

             17.  Limits an HDF inspection to the premise where the  
               lactating animals, milking equipment, or bottling equipment  
               is kept, or where milk is bottled and worker sanitation  
               facilities are maintained. 

           EXISTING LAW:

              1.   The Milk and Milk Products Act (MMPA) regulates the  
               preparation, production, manufacture, distribution, and  
               sale of milk, and specified milk products.  MMPA defines  
               "dairy farm" to mean any place where milk is produced for  
               sale or other distribution and where more than two cows or  
               water buffalo, or six goats, sheep, or other hooved  








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               mammals, are in lactation. 

             2.   The Sherman Food, Drug, and Cosmetic Law (Sherman Law),  
               requires the State Department of Public Health (DPH) to  
               regulate the manufacture, sale, labeling, and advertising  
               activities related to food, drugs, devices, and cosmetics  
               in conformity with the Federal Food, Drug, and Cosmetic  
               Act. The Sherman Law authorizes any authorized agent of DPH  
               to enter and inspect establishments to determine, among  
               other things, whether any food, drug, device, or cosmetic  
               is adulterated, misbranded, or falsely advertised, as  
               specified.

           FISCAL EFFECT  :   Unknown. This bill has been keyed fiscal. 

           COMMENTS  :   This bill defines a HDF as having no more than three  
          lactating cows or no more than 15 lactating goats on the  
          premises.  This bill would allow a HDF to sell, on site, excess  
          raw milk produced by the HDF.  A HDF would be exempt from  
          current dairy farm law, and instead have new, but similar health  
          and safety standards. 

          According to the author, this bill incorporates these  
          small-scale raw milk producers into critical safety and  
          sanitation standards.  Furthermore, the author states that  
          safety and sanitation standards for home dairy farms include  
          having their animals tested and found non-reactive to annual  
          tuberculin and brucellosis testing, maintaining strict milk  
          temperatures, and strict bacterial limits, the same standards  
          required for Grade A raw market milk.

          Supporters state farm families have a long history of choosing  
          to drink raw milk from their cows and goats and have shared this  
          milk with friends and neighbors in the community.  Currently, it  
          is necessary for a dairy farm to obtain a permit, build special  
          infrastructures such as milking rooms, and pay for regular farm  
          inspection fees, animal health inspection fees and grading of  
          the milk and fat content measuring.  According to supporters,  
          the cost of these requirements can prevent families with a few  
          cows from being able to share their milk legally.  Supporters  
          state this bill will provide California's small family farms a  
          legal method for putting their milk to use instead of throwing  
          it away.

          Opponents worry that this bill replaces current law with a more  








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          lax regulatory structure that is not based on sound public  
          policy.  Medical and health organizations point out that  
          unpasteurized raw milk presents a serious health risk, and  
          California's current law regulates raw milk production to  
          minimize risk to the public.  Opponents point out a 2012 study,  
          in which the Centers for Disease Control and Prevention (CDC)  
          stated raw milk was much more likely to cause outbreaks than  
          pasteurized milk.  Furthermore, CDC found that the outbreaks  
          caused by raw milk tended to cause more severe disease, with the  
          hospitalization rates for patients in outbreaks caused by raw  
          milk is 13 times higher than the rate for people in outbreaks  
          caused by pasteurized milk.

          Opponents state that while this bill does establish sanitation  
          standards and strict bacterial limits, the enforcement  
          mechanisms are weak at best.  Inspections are driven by consumer  
          complaint or other reliable evidence of an incident.  Opponents  
          state that this means inspections by health officials could only  
          be reactive and not preventative.  Unlike current dairy  
          inspections, which are funded by dairy farm fees, there would be  
          no funding for inspections or enforcement for HDF violations.   
          Opponent state that the bill has no penalties for violations,  
          thus further weakening enforcement. 

          One of the main ideas behind this bill is to give a HDF the  
          ability to legally have on-farm selling of their raw milk.  If  
          legal legitimacy is a goal, it is not unreasonable to know who  
          is acting as a HDF under this bill. The committee may wish to  
          consider having a HDF register with the California Department of  
          Food and Agriculture in order to ensure public knowledge of the  
          numbers and locations of HDFs.

          With the concern over the potential issue that may arise from  
          this legislation, the committee may wish to consider if it is  
          appropriate public policy, for legislative oversight, to place a  
          three year sunset on this bill.

          To clarify legislative intent, the committee may wish to  
          consider the following amendment: (page 25-29) 
          (c) Exempt small scale  home dairy farm operations from  
           burden  some laws and regulations applicable to the production of  
          market milk by large-scale retail milk producers  that are not  
          necessary or appropriate for the operation of small home dairy  
          farms producing raw milk  .
           








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          The definition of raw milk in this bill states that HDF milk "is  
          not pasteurized, processed or adulterated."  Processed can apply  
          to bottling and adulterated as it relates to food products means  
          "Any food is adulterated if it bears or contains any poisonous  
          or deleterious substance that may render it injurious to health  
          of man or any other animal that may consume it."  To clarify the  
          definition of raw milk for the purpose of this bill, the  
          committee may wish to consider the following amendment: (page 5,  
          lines 1-3) (d) "Raw milk" means milk that is produced at a place  
          or premise of a home dairy farm that is not pasteurized  ,  
          processed, or otherwise adulterated  .

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Adkins Felch LLP
          California Farmers Union
          California State Grange
          Community Alliance with Family Farmers
          Sustainable Economies Law Center

           Opposition 
           
          Agricultural Council of California
          California Dairies, Inc.
          California Farm Bureau Federation 
          California Medical Association
          Dairy Farmers of America
          Health Officers Association of California
          International Dairy Foods Association
          Land O' Lake, Inc.
          Milk Producers Council
          National Milk Producers Federation
          Western United Dairymen
           

          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084