BILL ANALYSIS Ó AB 384 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 384 (Perea) - As Introduced February 18, 2015 ----------------------------------------------------------------- |Policy |Health |Vote:|17 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: 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 AB 384 Page 2 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. COMMENTS: 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 AB 384 Page 3 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 violations. 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 AB 384 Page 4 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) 319-2081