BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 384

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          Date of Hearing:   April 22, 2015


                                 Jimmy Gomez, Chair

          384 (Perea) - As Introduced February 18, 2015

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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   


          This bill repeals the January 1, 2016, sunset date on a food  
          safety and education training program and associated fee within  
          the California Department of Public Health.  The fee is paid by  


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          entities manufacturing, processing, or storing processed food. 

          FISCAL EFFECT:

          $640,000 in annual fee revenue (Food Safety Fund) will continue  
          to fund three CDPH staff and activities in the food safety  
          training and education program.


          1)Purpose. According to the author, the fee whose sunset is  
            being removed 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  
            the food processing industry requested and supported the  
            initiation of the fee to fund the program, and has requested  
            and supported previous extensions of the fee.  With the proven  
            success of the program, the industry is now comfortable with  
            the removal of the sunset, making the fee and program  
            permanent.  The California League of Food Processors, sponsor  
            of this bill, recognizes that safety training provided by this  
            program is critical in avoiding contamination incidents.   

          2)Related Budget Item. Recent media and regulatory attention  
            suggests continuing, and perhaps additional, food safety  
            education and training is warranted. 

            According to CDPH, in July 2013, an investigation of Sysco  
            Corporation was initiated by the Food and Drug Branch of CDPH  
            based on a media investigation of claims that Sysco was  
            transporting and dropping off highly perishable foods at  


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            unrefrigerated public storage units for later pick-up and  
            delivery to food facilities in the personal vehicles of Sysco  
            associates. The resulting investigation by FDB verified  
            significant gaps in Sysco's food safety program, including  
            gross violations such as storing potentially hazardous foods  
            in unregistered facilities, transporting and storing  
            potentially hazardous perishable food in unrefrigerated  
            conditions, and not protecting products from potential  
            contamination. A review by CDPH of Sysco distribution records  
            over the last four years identified over 1.1 million separate  

            Settlement of a civil complaint filed by the Santa Clara  
            County District Attorney's Office, as a result of CDPH's  
            investigation of Sysco Corporation, includes $3.3 million  
            specifically earmarked for DPH to conduct food safety  
            transportation enforcement activities within the state, and  
            identify other operations that are illegally storing and  
            distributing perishable and non-perishable food in a manner  
            that does not protect them from contamination.

            The Governor's budget requests four five-year limited-term  
            positions and $716,000 from the Food Safety Fund to implement  
            additional enforcement activities as a result of this  
            stipulated judgment. 

          3)Previous Legislation. AB 1559 (Cardoza), Chapter 727, Statutes  


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            of 1997, established the Program and the fee.  Four subsequent  
            bills, in 1999, 2002, 2005, and 2010 extended the fee sunset.   

          Analysis Prepared by:Lisa Murawski / APPR. / (916)