BILL ANALYSIS Ó AB 234 Page 1 Date of Hearing: April 7, 2015 ASSEMBLY COMMITTEE ON HEALTH Bonta, Chair AB 234 (Gordon) - As Introduced February 4, 2015 SUBJECT: Food: sale. SUMMARY: Expands the type of food facility that a "community food producer" (CFP) may sell fruits, vegetables, or eggs to. Specifically, this bill permits a CFP or a gleaner, as these terms are defined by this bill, unless prohibited by a local jurisdiction that has adopted an ordinance regulating community food production, to sell or provide whole uncut fruits or vegetables, or unrefrigerated shell eggs, directly to the public, to any licensed food facility, or to a cottage food operation if the CFP meets specific requirements, in addition to any requirements imposed by a locally adopted ordinance. EXISTING LAW: 1)Establishes the California Retail Food Code (CRFC), which governs all aspects of retail food safety and sanitation in California under the CRFC. Specifies that primary responsibility for enforcement of the CRFC is with local enforcement agencies, typically local environmental health departments. 2)Requires, under the CRFC, that food be obtained from "approved sources," which is defined as sources that comply with all applicable laws, or a producer, manufacturer, distributor, or food facility that is acceptable to the enforcement agency AB 234 Page 2 based on a determination of conformity with applicable laws, or, in the absence of applicable laws, with current public health principles and practices, and generally recognized industry standards that protect public health. 3)Deems as coming from an approved source any whole uncut fruit or vegetable, or unrefrigerated shell egg, grown or produced in compliance with all applicable federal, state, or local laws, regulations, and food safety guidelines issued by a regulatory agency. 4)Permits farmers to sell fresh fruits, nuts, and vegetables that they produce, directly to the public at a certified farmers' market, a field retail stand, or a farm stand, and exempts this produce from certain minimum size, packaging and labeling requirements, subject to specified conditions. Limits farmers to selling produce that does not conform to size, packaging and labeling requirements only to consumers who are end users, or individuals or entities that subsequently sell the produce directly to end users. 5)Permits a CFP, defined as a producer of agricultural products on land that is not zoned for agricultural use, to sell whole uncut fruits or vegetables, or unrefrigerated shell eggs, directly to the public, to permitted restaurants, or to a cottage food operation if the CFP follows certain requirements. 6)Requires a producer that markets whole produce, shell eggs, or processed foods through a community-supported agriculture program to register as a direct marketing producer. Requires the annual registration fee for registration as a direct marketing producer to be set at the actual cost of registration, with a maximum fee of $100 annually. AB 234 Page 3 7)Requires the Department of Food and Agriculture (CDFA), in consultation with the Department of Public Health and local health officers or designees, to publish and post on DFA's Internet Web site small farm food safety guidelines on the safe production, processing, and handling of both non-potentially hazardous and potentially hazardous foods. FISCAL EFFECT: This bill has not been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, the local agriculture movement is experiencing burgeoning popularity, and California has become a trailblazer in progressive food and farm legislation. Additionally, there has been a dramatic growth in a wide range of community and urban gardens, as well as locally produced food, throughout the past decade. These small production sites include personal gardens, culinary gardens, community gardens, and school gardens. This bill expands on efforts in recent years to allow gleaners and CFPs to engage in direct sales of produce to the public. The author states that this bill is responsive to the Governor's veto message. By striking the word "restaurant" and replacing it with "food facility," this bill ensures explicit clarification as to what entities CFPs are allowed to sell or provide whole uncut fruit, vegetables or unrefrigerated shell eggs to. 2)BACKGROUND. Last year, AB 1990 (Gordon), Chapter 580, Statutes of 2014, defines "CFPs" and "gleaners," and allows CFPs or gleaners to sell or provide whole uncut fruits or vegetables or unrefrigerated shell eggs, directly to the public, to a permitted restaurant, or to a cottage food operation, if the CFP complies with a variety of health and safety requirements or Best Management Practices established AB 234 Page 4 by CDFA and posted on their Website. Upon signing AB 1990 in September 2014, Governor Brown issued the following signing statement: "There is some concern that AB 1990 would inadvertently limit the existing paths for producers and gleaners to sell locally. This is not my intent. The language in this bill is clearly expansive, not restrictive." This bill would allow a CFP to sell their product directly to any type of food facility, instead of just restaurants. This would include public and private school cafeterias, some licensed health care facilities, commissaries, mobile food facilities, mobile support units, and temporary food facilities. 3)SUPPORT. The California Association of Environmental Health Administrators, sponsor of the bill, supports this work as a continued effort to facilitate access to healthy foods like fresh fruit and vegetables for all Californians. They state that in 2012, Community Supported Agriculture (CSA) legislation AB 224 (Gordon) Chapter 404, Statutes of 2013, provided the platform to clarify the regulation of "community gardens and community supported agriculture" from a food safety perspective. Then, the statewide approach in AB 1990 promoted safe community food while recognizing local land use and zoning authority. By adhering to local land use zoning requirements, it reduced demands on local governments to adopt a patchwork quilt of individual local ordinances. It provided a statewide set of best management practices consistent with recently enacted cottage food law, AB 1616 (Gatto), and CSA laws. To remedy this limitation, this bill will explicitly allow all community food produced in compliance with these best management practices to be sold at all retail food facilities by striking the word "restaurant" and replacing it with "food facility". 4)RELATED LEGISLATION. a) AB 143 (Wood) expands an exemption in the CRFC allowing wine tasting rooms that currently only serve crackers to AB 234 Page 5 also serve pretzels or prepackaged non-potentially hazardous foods. AB 143 is pending in Assembly Health Committee. b) AB 226 (Atkins) creates and defines a Fishermen's Market as a type of nonpermanent food facility. AB 226 is pending in Assembly Health Committee. c) AB 724 (Dodd) revises the definition of community event to include a district fair, and would require a temporary food facility to be granted a permit to operate at a community event if the enforcement agency makes a determination that the temporary food facility meets specified requirements, and requires the permit to be issued for the entire duration of the community event. AB 724 is pending in Assembly Health Committee. d) AB 1076 (Mayes) exempts from the definition of a food facility, a snack bar operated by a charitable nonprofit organization and authorizes snack bars to undertake limited food preparation, as defined. AB 1076 is pending in Assembly Health Committee. e) SB 746 (Wolk) exempts, beginning January 1, 2018, grain milled and sold at the Bale Grist Mill State Historic Park from registration and other requirements applicable to retail food facilities if certain conditions are met. SB 746 is pending in Senate Natural Resources and Water Committee. 5)PREVIOUS LEGISLATION. a) AB 1990 permits a CFP, defines as a producer of agricultural products on land that is not zoned for agricultural use, to sell whole uncut fruits or vegetables, or unrefrigerated shell eggs, directly to the public, including restaurants, if the CFP follows certain requirements. AB 234 Page 6 b) AB 224 creates definitions dealing with requirements for CSAs; and, authorizes the CDFA to establish fees, not to exceed $100, to administer this new program as specified. c) AB 1616 (Gatto), Chapter 415, Statutes of 2012, provides a regulatory framework for the production in home kitchens of food for sale, referred to as cottage food operations. d) AB 2168 (Jones), Chapter 447, Statutes of 2008, expands the definition of direct marketing to include farm stands, field retail stands, and other forms of direct marketing, revises related definitions, and authorizes CDFA to adopt regulations to regulate direct marketing, as specified. e) AB 593 (Strom-Martin), Chapter 833, Statutes of 1999, codifies regulations exempting direct marketers from specified packing and labeling standards, amends fee structures, and authorizes farmers' markets to establish rules and procedures. REGISTERED SUPPORT / OPPOSITION: Support California Association of Environmental Health Administrators (sponsor) Community Alliance with Family Farmers Roots of Change Opposition None on file. AB 234 Page 7 Analysis Prepared by: Dharia McGrew / HEALTH / (916) 319-2097