BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 384|
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                                   THIRD READING 


          Bill No:  AB 384
          Author:   Perea (D), et al.
          Introduced:2/18/15  
          Vote:     21  

           SENATE HEALTH COMMITTEE:  7-1, 7/8/15
           AYES:  Hernandez, Hall, Monning, Nielsen, Pan, Roth, Wolk
           NOES:  Nguyen
           NO VOTE RECORDED:  Mitchell

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  78-2, 6/1/15 - See last page for vote

           SUBJECT:   Food safety


          SOURCE:    California League of Food Processors


          DIGEST:  This bill 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.


          ANALYSIS:   


          Existing law:









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          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.

          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.


          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 was sponsored by the  







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          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.
          
          Comments
          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.

          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  







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          safety program.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee, ongoing costs  
          of $640,000 per year for DPH to provide education and training  
          to food processors on safe handling of food products, fully  
          offset by fee revenues (Food Safety Fund).


          SUPPORT:   (Verified8/28/15)


          California League of Food Processors (source)
          American Federation of State, County and Municipal Employees
          California Chamber of Commerce
          Morning Star Company


          OPPOSITION:   (Verified8/28/15)


          None received


          ARGUMENTS IN 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 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  







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          of Californians, it is imperative to invest in education and  
          training programs related to food safety.

          ASSEMBLY FLOOR:  78-2, 6/1/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin,  
            Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NOES:  Brough, Harper

          Prepared by:Vince Marchand / HEALTH / 
          8/31/15 12:47:39


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