BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 384 --------------------------------------------------------------- |AUTHOR: |Perea | |---------------+-----------------------------------------------| |VERSION: |February 18, 2015 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |July 8, 2015 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Vince Marchand | --------------------------------------------------------------- SUBJECT : Food safety. SUMMARY : Eliminates the January 1, 2016, sunset date on provisions of law establishing a $100 food safety fee on registered food processors, which supports education and training programs related to food safety, thereby making this program permanent. Existing law: 1)Requires every person engaged in the manufacture, packing, or holding of any processed food to have a valid registration from the Department of Public Health (DPH), establishes a fee schedule for food registration permits based on the size of the facility and the number of employees, and requires this registration to be renewed annually. 2)Requires every person who is engaged in the manufacture, packing, or holding of processed food to pay a food safety fee of $100 to DPH in addition to the annual registration fee for food processors. 3)Requires the food safety fee revenue to be used by DPH to assist in developing and implementing education and training programs related to food safety. Requires these programs to be developed in consultation with representatives of the food processing industry, and to include education and training in the prevention of microbial contamination. 4)Exempts from the food safety fee requirements companies that are exclusively involved in flour milling, dried bean processing, or in the drying or milling of rice, or to those individuals whose gross annual income from the registered food processing business is $20,000 or less and DPH has determined the fee would result in substantial economic hardship. AB 384 (Perea) Page 2 of ? 5)Sunsets the provisions of law establishing a food safety fee on January 1, 2016. This bill: Eliminates the January 1, 2016, sunset date on provisions of law which establish a $100 food safety fee that registered food processors are required to pay in addition to annual registration fees, and which require DPH to use the resulting funds to develop and implement a food safety education and training programs, thereby making this food safety program permanent. FISCAL EFFECT : According to the Assembly Appropriations Committee, $640,000 in annual fee revenue (Food Safety Fund) will continue to fund three DPH staff and activities in the food safety training and education program. PRIOR VOTES : ----------------------------------------------------------------- |Assembly Floor: |78 - 2 | |------------------------------------+----------------------------| |Assembly Appropriations Committee: |17 - 0 | |------------------------------------+----------------------------| |Assembly Health Committee: |17 - 0 | | | | ----------------------------------------------------------------- COMMENTS : 1)Author's statement. According to the author, this bill is an industry supported bill that makes permanent a fee that is used by DPH to fund an education and training program for food processors. This program deals with sanitation and contamination prevention methods and has been proven to be effective in reducing cross contamination by food processors. Due to this success, the food processors want to make the funding of the program permanent, so they have asked to have the fee sunset date deleted. 2)Background. The food safety program that is being made permanent by this bill was established by AB 1559 (Cardoza, Chapter 727, Statutes of 1997). According to the Senate Health and Human Services Committee analysis of that bill, AB 1559 AB 384 (Perea) Page 3 of ? was sponsored by the California League of Food Processors after several dramatic news stories highlighted the issue of contaminated foods, and microbiological contamination had even reached some "low-risk" food products leading to isolated cases of illness. The $100 fee was not a new fee, but rather a re-direction of an existing $100 fee that food processors had been paying to the Department of Pesticide Regulation for pesticide regulation and research. Recent training programs offered by DPH's Food and Drug Branch include courses on food labeling, current good manufacturing practices, and food recalls. These courses and other courses are offered for free to registered food processors. 3)Prior legislation. 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. AB 1081 (Mathews, Chapter 401, Statutes of 2005), among other provisions, extended the sunset on the food safety fee to January 1, 2011. 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. AB 1548 (Cardoza, Chapter 915, Statutes of 1999), among other provisions, extended the sunset on the food safety fee to January 1, 2003. AB 1559 (Cardoza, Chapter 727, Statutes of 1997), established the food safety program within DPH, and required a $100 food safety fee to be paid by food processors to support the food safety program. 4)Support. According to the author, this bill is sponsored by the California League of Food Processors (CLFP), which states the Food Industry Education and Training Program, administered by DPH, provides food safety education and training to registered food processors to reduce preventable foodborne illnesses and injuries and to assist California food processors in improving their operations. CLFP states that it supports the $100 food safety fee that is assessed on food processors to fund this program, and believes that it is a successful collaboration between industry and government. The California Chamber of Commerce states in support that the food AB 384 (Perea) Page 4 of ? safety 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, and supports the purpose of this bill to remove the sunset date which will allow DPH to continue collecting the $100 food safety fee on a permanent basis. The American Federation of State, County and Municipal Employees states in support that in order to improve and ensure the health of Californians, it is imperative to invest in education and training programs related to food safety. SUPPORT AND OPPOSITION : Support: California League of Food Processors (sponsor) American Federation of State, County and Municipal Employees California Chamber of Commerce Morning Star Company Oppose: None received -- END --