BILL ANALYSIS Ó AB 384 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON HEALTH Bonta, Chair AB 384 (Perea) - As Introduced February 18, 2015 SUBJECT: Food safety. SUMMARY: Repeals the current January 1, 2016 sunset date, thereby making permanent, the $100 food safety fee paid by persons engaged in manufacture, packing, or holding of processed food in California. EXISTING LAW: 1)Establishes the Sherman Food, Drug, and Cosmetic Law, administered by the California 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. 2)Requires, until January 1, 2016, a person engaged in the manufacture, packing, or holding of processed food in the state to pay a food safety fee of $100 to DPH for a food safety fund. Requires the funds to be used to assist in developing and implementing education and training programs related to food safety, known as the Food Industry Education and Training Program (Program). FISCAL EFFECT: This bill has not been analyzed by a fiscal AB 384 Page 2 committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, after a series of dangerous food contamination incidents, the food processing industry asked the Legislature in 1995 to create the Food Industry Education and Training Program. In 1997 due to DPH not having the funding for the Program, the industry initiated the $100 fee for every person who is engaged in the manufacture, packing, or holding of processed food. This fee is used to fund the education and training of food processors in the safe handling and prevention of microbial contamination of food products. The author notes that the industry requested and supported previous extensions of the fee. With the proven success of the program, the food processing industry is now comfortable with the removal of the sunset making the fee and program permanent. 2)BACKGROUND. In response to dramatic news stories of food contamination, AB 1559 (Cardoza), Chapter 727, Statutes of 1997, established the Program within DPH. AB 1559 contained sunset provisions for the program that were subsequently legislatively extended several times. The current program will expire on January 1, 2016. This bill would delete the sunset provision entirely, making the Program and fee permanent. According to DPH, the Program is an industry-initiated program that has been instrumental in developing high-quality training courses, manuals, and videos that focus on food safety and high-risk food commodity production. Many of the training programs DPH's Industry Education and Training Unit has developed have been nationally recognized and serve as models of industry-government cooperation. Education and training is a critical component of a comprehensive food safety program and is specifically intended to help processors learn how they can prevent food from becoming contaminated and thereby assist them in reducing the incidence of costly food recalls and AB 384 Page 3 food-borne illness outbreaks. 3)SUPPORT. The California League of Food Processors, sponsor of this bill, recognizes that safety training provided by this program is critical in avoiding contamination incidents. Additionally, they believe this program is a successful collaboration between industry and government. The California Chamber of Commerce supports this bill, noting that the Program has been highly effective at providing multi-lingual training to food processing workers on the basics of food safety, sanitation and best management practices. 4)PREVIOUS LEGISLATION. a) AB 2612 (Committee on Agriculture), Chapter 393, Statutes of 2010, among other provisions, extended the sunset on the food safety fee to January 1, 2016. b) AB 1081 (Mathews), Chapter 401, Statutes of 2005, among other provisions, extended the sunset on the food safety fee to January 1, 2011. c) AB 2981 (Committee on Agriculture), Chapter 535, Statutes of 2002, among other provisions, extended the sunset on the food safety fee to January 1, 2006. d) AB 1548 (Cardoza), Chapter 915, Statutes of 1999, among other provisions, extended the sunset on the food safety fee to January 1, 2003. e) AB 1559 establishes the Program within DPH. Creates the Food Safety Fund (Fund) within the State Treasury in order to provide education and training in the prevention of microbial contamination. Mandates a $100 food safety fee to be paid by food processors to the Fund. AB 384 Page 4 REGISTERED SUPPORT / OPPOSITION: Support California League of Food Processors (sponsor) American Federation of State County and Municipal Employees, AFL-CIO California Chamber of Commerce Morning Star Company Opposition None on file. Analysis Prepared by: Dharia McGrew / HEALTH / (916) 319-2097