BILL ANALYSIS                                                                                                                                                                                                    Ó






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 234|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 234
          Author:   Gordon (D)
          Amended:  9/4/15 in Senate
          Vote:     21  

           SENATE HEALTH COMMITTEE:  8-0, 6/24/15
           AYES:  Hernandez, Nguyen, Mitchell, Monning, Nielsen, Pan,  
            Roth, Wolk
           NO VOTE RECORDED:  Hall

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  62-10, 5/11/15 - See last page for vote

           SUBJECT:   Food:  sale


          SOURCE:    California Association of Environmental Health  
          Administrators


          DIGEST:  This bill revises provisions of law governing community  
          food producers and gleaners by allowing community food producers  
          to sell whole uncut fruits or vegetables, or unrefrigerated  
          shell eggs, directly to a permitted food facility, not just a  
          restaurant, and by limiting the ability of a local environmental  
          health officer to require community food producers or gleaners  
          to register with the local enforcement under specified  
          conditions.


          Senate Floor Amendments of 9/4/15 permit gleaners to donate  
          produce to a food bank or food kitchen without having to be  








                                                                     AB 234  
                                                                    Page  2


          registered, require that records are retained for 30 days,  
          incorporate chaptering out amendments, and make other minor and  
          clarifying changes.
          
          ANALYSIS:   


          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.

          2)Requires the California Department of Food and Agriculture  
            (CDFA), in consultation with the California Department of  
            Public Health (CDPH) and local health officers or designees,  
            to publish and post on CDFA'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.

          3)Defines "community food producer" as a producer of  
            agricultural products on land that is not zoned for  
            agricultural use but is otherwise in compliance with  
            applicable local land use and zoning restrictions, including,  
            but not limited to, restrictions governing personal gardens,  
            community gardens, school gardens, and culinary gardens.

          4)Defines "gleaner" as a person who legally gathers remnants of  
            an agricultural crop or harvests part of, or all of, an  
            agricultural crop made available by the owner of the  
            agricultural crop.

          5)Permits a community food producer or a gleaner, 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 (up to 15 dozen per month), directly to the public,  
            to a restaurant, or to a cottage food operation if the  
            community food producer meets all of the following  
            requirements, in addition to any requirements imposed by a  
            locally adopted ordinance:







                                                                     AB 234  
                                                                    Page  3



             a)   Requires agricultural products to be grown or produced  
               in compliance with all applicable federal, state, or local  
               laws, regulations, and food safety guidelines issued by a  
               regulatory agency;
             b)   Requires agricultural products to be labeled with the  
               name and address of the community food producer;
             c)   Requires conspicuous signage to be provided in lieu of a  
               product label if the agricultural product is being sold by  
               the community food producer on the site of the production.  
               Requires this signage to include the name and address of  
               the community food producer; and,
             d)   Requires best management practices (BMPs), as described  
               by CDFA regarding small farm food safety guidelines on safe  
               production, processing, and handling of both  
               non-potentially hazardous and potentially hazardous foods.

          6)Permits a local city or county health enforcement office to  
            require a community food producer to register with the city or  
            county, and to provide specified information, including the  
            name, address, and telephone number of the community food  
            producer.

          This bill:

          1)Clarifies and expands the ability of a community food producer  
            to sell or provide whole uncut fruits or vegetables, or  
            unrefrigerated shell eggs, by allowing them to sell to any  
            food facility, and not just a restaurant, in addition to  
            direct sales to the public and to a cottage food operation.

          2)Eliminates the ability of a local jurisdiction to adopt an  
            ordinance prohibiting a community food producer or gleaner  
            from selling or providing whole uncut fruits or vegetables, or  
            unrefrigerated shell eggs, directly to the public or to food  
            facilities.

          3)Restricts the ability of a local health enforcement agency,  
            unless otherwise authorized by a locally adopted ordinance, to  
            require a community food producer to be registered with the  
            local enforcement agency or to meet requirements in addition  
            to those required in existing law, if the community food  
            producer or gleaner meets any of the following conditions:








                                                                     AB 234  
                                                                    Page  4


             a)   Agricultural products are sold on the outlet or  
               location, including, but not limited to, premises,  
               controlled by the community food producer;
             b)   Agricultural products are donated to a food bank or food  
               kitchen that provides food at no cost to consumers; or
             c)   Produce is sold in a food facility permitted by a  
               federal, state, or local health agency.

          4)Permits a gleaner to donate whole uncut fruits or vegetables,  
            or unrefrigerated shell eggs, produced by a community food  
            producer, to a food bank or food kitchen without being  
            registered by the local enforcement agency if the gleaner  
            meets both of the following requirements:

             a)   Best management practices, as specified, regarding small  
               farm food safety guidelines on handling of both  
               nonpotentially hazardous and potentially hazardous foods;  
               and,
             b)   Retention of records regarding the provision of the food  
               for 30 days.

          5)Requires a community food producer or gleaner who sells or  
            provides whole uncut fruits or vegetables, or unrefrigerated  
            shell eggs, directly to the public to retain records related  
            to the sale or provision of the food for 30 days, including  
            the type of food sold and the date of sale.

          6)Requires a food bank or food kitchen that receives whole uncut  
            fruits or vegetables, or unrefrigerated shell eggs, donated by  
            a community food producer or gleaner, to retain records  
            related to the donation of the food for 30 days, which is  
            required to include the type of food received, the date of  
            receipt, and the name and contact information of the community  
            food producer or gleaner that donated the food.

          7)Revises an exemption from the definition of a "food facility,"  
            for purposes of the body of law governing retail food  
            facilities, which currently exempts "premises operated by a  
            producer selling only produce grown by the producer or shell  
            eggs," to instead exempt "an outlet or location, including,  
            but not limited to, premises" operated by a producer, provided  
            the sales are conducted at an outlet or location controlled by  
            the producer.








                                                                     AB 234  
                                                                    Page  5


          8)Limit the requirement that agricultural products be labeled  
            with the name and address of the community food producer, to  
            instead only require agricultural products that are packaged  
            to have the package labeled.

          9)Incorporates chaptering-out amendments to ensure that the  
            provisions of this bill, and the provision of both AB 143  
            (Wood) and AB 226 (Atkins), in the case that all three bills  
            are signed into law, do not chapter each other out.

          Comments
          
          1)Author's statement.  According to the author, this bill is  
            needed because even though the Governor signed AB 1990  
            (Gordon, Chapter 580, Statutes of 2014) to allow community  
            food producers or gleaners to engage in direct sales of  
            produce to the public, there were concerns that AB 1990 would  
            inadvertently limit the existing paths for producers and  
            gleaners to sell locally. Therefore, this bill clarifies and  
            expands on AB 1990 by providing explicit clarification as to  
            what entities community food producers are allowed to sell or  
            provide whole uncut fruit, vegetables or unrefrigerated shell  
            eggs.
            
          2)Direct Marketing Ad Hoc Committee report.  CDFA convened a  
            Direct Marketing Ad Hoc Committee to review and analyze the  
            various business functions of the Direct Marketing Program  
            within CDFA from October 2011 through September 2012. The  
            Direct Marketing Program provides opportunities for California  
            farmers to market their products directly to consumers with  
            exemptions from minimum size, labeling, standard pack, and  
            container requirements. The Direct Marketing Program is  
            intended to provide a viable channel for California farmers to  
            market their agricultural products directly to the consumer,  
            thereby providing a significant source of revenue for  
            participating farmers. The most common form of direct  
            marketing is through certified farmers' markets, but also  
            includes farm stands, field retail stands and farm stands, and  
            subscription-based community-supported agriculture (CSA)  
            programs.

          According to the report:

               "Produce from farms in California is considered to be from  







                                                                     AB 234  
                                                                    Page  6


               "approved sources" pursuant to the California Health and  
               Safety Code. However, there may generally be no specific  
               food safety oversight by any regulatory agency except where  
               the product or commodity is covered under a marketing order  
               such as the Leafy Green Marketing Agreement. Concern over  
               food safety has recently been elevated with the rapid  
               increase in small scale farming operations such as  
               community and backyard gardens. Because California law does  
               not define a "small farm" there is no clear delineation of  
               where food safety oversight begins and ends. Local  
               environmental health officers and county agricultural  
               commissioners are expected to provide guidance and  
               oversight of these small scale operations in some cases.  
               Temperature control is also a food safety concern when  
               potentially hazardous foods require temperature control for  
               safety."

            The Ad Hoc Committee included a Gardens Subcommittee which  
            looked at culinary, school, community, victory, and other  
            small-scale plots used for growing fresh fruits and  
            vegetables. According to the report, due to issues concerning  
            land use, zoning, and food safety requirements, several local  
            agencies have started to formalize an approval process to  
            allow these gardens to grow, donate, and sell the produce  
            grown. The subcommittee determined that "the sale of produce  
            from these gardens should be regulated in a manner consistent  
            with CSAs and retail field stands or farm stands under the  
            CRFC." The subcommittee recommended that when the products of  
            these gardens enter the stream of commerce, registration and  
            self-certification should be mandated for BMP and good  
            agricultural practices (GAP). The subcommittee encouraged  
            CDFA, CDPH, and local and environmental health agencies to  
            collaborate in the development of web-based information on  
            BMPs/GAPs for the production, distribution, and consumption of  
            fruits and vegetables grown in these gardens. Finally, the  
            subcommittee stated that if the home garden sells the produce  
            off-site at a farmer's market or to local restaurants, the  
            consumer cannot see firsthand under what conditions the  
            produce is grown, and the garden operator should be subject to  
            registration and certification of good growing practices.

          Prior Legislation

          AB 1990 (Gordon, Chapter 580, Statutes of 2014), permitted a  







                                                                     AB 234  
                                                                    Page  7


          "community food producer," defined as a producer of agricultural  
          products on land that is not zoned for agricultural use, and  
          "gleaners," as defined, to sell whole uncut fruits or  
          vegetables, or unrefrigerated shell eggs, directly to the  
          public, including restaurants, if the community food producer or  
          gleaner follows certain requirements. The Governor issued the  
          following statement when signing this bill into law: "I am  
          signing Assembly Bill 1990 which allows gleaners and community  
          food producers to engage in direct sales of produce to the  
          public. 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.
          
          AB 2539 (Ting, Chapter 907, Statutes of 2014) made various  
          changes to the rules governing certified farmers' markets,  
          including requiring all harvested, cut, wrapped, or otherwise  
          processed meat, poultry, and fish products offered for sale in a  
          farmers' market to be from approved sources and to be maintained  
          at 41 degrees Fahrenheit.  

          SB 144 (Runner, Chapter 23, Statutes of 2006) established the  
          CRFC 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.
             
          AB 224 (Gordon, Chapter 404, Statutes of 2013) defined CSA  
          within the direct marketing program regulated by the CDFA,  
          established regulatory parameters, and required CSA registration  
          fees to fund administration and related programmatic costs, as  
          specified.

          AB 1616 (Gatto, Chapter 415, Statutes of 2012) provided a  
          regulatory framework for the production in home kitchens of food  
          for sale, referred to as cottage food operations.

          AB 2168 (Jones, Chapter 447, Statutes of 2008) expanded the  
          definition of direct marketing to include farm stands, field  
          retail stands, and other forms of direct marketing, revised  
          related definitions, and authorized CDFA to adopt regulations to  
          regulate direct marketing, as specified.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  







                                                                     AB 234  
                                                                    Page  8


          Com.:YesLocal:   Yes


          SUPPORT:   (Verified9/4/15)


          California Association of Environmental Health Administrators  
          (source)
          Community Alliance with Family Farmers
          Health Trust
          Roots of Change
          Sustainable Economies Law Center


          OPPOSITION:   (Verified9/4/15)


          Association of California Egg Farmers


          ARGUMENTS IN SUPPORT:     This bill is sponsored by the  
          California Association of Environmental Health Administrators  
          (CAEHA), which states that the local agricultural movement is  
          experiencing burgeoning popularity, and California has become a  
          trailblazer in the progressive food and farm movement.  
          Additionally, there has been a dramatic growth in a wide range  
          of community and urban gardens, as one form of locally produced  
          food. CAEHA states that lack of regulatory certainty has  
          thwarted the legitimate expansion of some of these operations,  
          and the absence of clear food production and safety guidance for  
          these micro-farms may be endangering public health. CAEHA states  
          that AB 1990 from last year reduced demands on local governments  
          to adopt a patchwork quilt of individual local ordinances, and  
          provided a statewide set of best management practices consistent  
          with recently enacted cottage food law and community supported  
          agriculture laws. CAEHA states that to remedy the concern  
          expressed in Governor Brown's signing statement of AB 1990 that  
          it might inadvertently limit the existing paths for producers  
          and gleaners to sell locally, this bill was introduced to  
          explicitly allow produce to be sold at all retail food  
          facilities by striking the word "restaurant" and replacing it  
          with "food facility."

          Roots of Changes states in support that enabling more avenues  







                                                                     AB 234  
                                                                    Page  9


          for direct sales by community members is sound public policy  
          given that almost a quarter of Californians are still below the  
          federal poverty level, and research consistently shows that  
          low-income people are more likely to be overweight and obese.  
          The California Alliance with Family Farmers states that this  
          bill extends the right to sell whole produce and shell eggs to  
          any food facility, not just restaurants, which will allow urban  
          gardens to sell produce and shell eggs to stores.


          ARGUMENTS IN OPPOSITION:     This bill is opposed by the  
          Association of California Egg Farmers (ACEF) unless amended to  
          remove all references to "unrefrigerated shell eggs." ACEF  
          states that when a food safety issue arises, all egg farmers  
          suffer. In 2010 when there was a recall of eggs, sales slumped  
          significantly for all eggs in California. ACEF states that when  
          egg farmers want to sell their products to restaurants and  
          stores, meeting the basic food safety standards is paramount.  
          ACEF states that this bill provides an exemption based on where  
          eggs are farmed, not how or by meeting specific standards, and  
          that it must oppose this bill unless eggs are removed from the  
          bill.

          ASSEMBLY FLOOR:  62-10, 5/11/15
          AYES:  Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Hadley, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mayes, McCarty, Medina, Mullin, Nazarian,  
            Obernolte, O'Donnell, Patterson, Perea, Rendon, Rodriguez,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Wilk,  
            Williams, Wood
          NOES:  Travis Allen, Brough, Chávez, Gray, Grove, Harper,  
            Mathis, Melendez, Olsen, Salas
          NO VOTE RECORDED:  Bigelow, Beth Gaines, Jones, Quirk,  
            Ridley-Thomas, Wagner, Waldron, Atkins

          Prepared by:Vince Marchand / HEALTH / 
          9/8/15 17:24:39


                                   ****  END  ****







                                                                     AB 234  
                                                                    Page  10