BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  SB  
          35
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2009-2010 Regular Session
                                 Staff Analysis



          SB 35  Author:  Oropeza
          As Amended:  April 1, 2009
          Hearing Date:  April 28, 2009
          Consultant:  Chris Lindstrom


                                     SUBJECT  

                                Food donations.

                                   DESCRIPTION
           
          SB 35 adds a new chapter to Division 20 of the Health and  
          Safety Code to require the Governor to designate a state  
          agency to establish and maintain a clearinghouse database  
          that enables a food bank or a nonprofit organization that  
          has an interest in receiving nonperishable and perishable  
          food donations to contact a food facility that has an  
          interest in donating food.  

          SB 35 requires the designated state agency to prepare and  
          make available informational materials regarding the  
          clearinghouse to all food banks, nonprofit organizations,  
          and food facilities.  

          SB 35 requires a written contract entered into by a food  
          facility to prepare, provide, or serve food for immediate  
          consumption at a catered event to include language that  
          informs the purchaser of the food of the clearinghouse.

                                   EXISTING LAW

           Existing law, with specified exceptions, exempts a food  
          facility that donates any food that is fit for human  
          consumption at the time it was donated to a nonprofit  
          charitable organization or a food bank from liability for  




          SB 35 (Oropeza) continued                                
          Page 2
          


          any damage or injury resulting from the consumption of the  
          donated food.

          Existing federal law, the Bill Emerson Good Samaritan Food  
          Donation Act makes it easier for businesses to donate to  
          food banks and food rescue programs.  The law protects  
          donors from liability when donating to nonprofit  
          organizations and protects donors from civil and criminal  
          liability should the product donated in good faith later  
          causes harm to the needy recipient.








































          SB 35 (Oropeza) continued                                
          Page 3
          


                                    BACKGROUND
           
          Purpose of the bill.  According to the author's office,  
          "[c]urrent law says that any food facility may donate, free  
          of charge, food to a bank or to any other nonprofit  
          charitable organization for distribution to persons free of  
          charge.  Additionally, no food facility that donates food  
          shall be subject to civil or criminal liability or penalty  
          of violation of any laws, regulations, or ordinances  
          regulating the labeling or packaging of the donated product  
          or, with respect to any other laws, regulations, or  
          ordinances, for a violation occurring after the time of the  
          donation.  

          "Despite success of current law in donating food,  
          California discards tons of food that ultimately ends up in  
          our landfills.  A Statewide Characterization Study,  
          published by the California Environmental Protection Agency  
          in December 2004, noted that commercial waste (waste from  
          restaurants, food stores, medical/health facilities,  
          schools and hotels) comprised nearly 5.8 million tons of  
          discarded food in 2003.

          "In 2007, five million Californians were unable to afford  
          the food they needed - including many seniors and working  
          parents whose budgets for food have been squeezed by the  
          growing economic crisis.  According to the U.S. Bureau of  
          Labor Statistics, the price of staples (flour, milk, and  
          eggs, for example) rose at least 13 percent between  
          February 2007 and February 2008.  Retail food prices are  
          expected to jump an additional 5 percent this year.

          "Food banks and nonprofit organizations across the state  
          have seen a sudden and unprecedented increase in the  
          requests for food assistance.  Families who had never  
          previously sought out services offered by food banks are  
          waiting in line for donations.  Some food banks are  
          experiencing an increase of people in need of up to 50%.   
          Unfortunately, donations have not kept pace with growing  
          demands and many food banks are having difficulty keeping  
          their pantries full.

          "No one wants to purposely discard edible food.  According  
          to our research one of the biggest hindrances to successful  
          food donations is a lack of knowledge between food banks  
          and food facilities on who is interested in donating food  




          SB 35 (Oropeza) continued                                
          Page 4
          


          and who has the capability to receive donations.

          "SB 35 seeks to remedy that problem by creating a Food  
          Donation Clearinghouse database.  This database will have  
          the contact information of food banks and non-profit  
          organizations that are seeking food donations (perishable  
          and non-perishable) and the contact information of food  
          handlers (restaurants, caterers, supermarkets) that are  
          interested in finding organizations capable to accept their  
          food donations."

          Arguments in support.  The Foodbank of Southern California  
          writes, "SB 35 will create a Food Donation Clearinghouse to  
          help build relationships essential for food donation.  Lack  
          of knowledge on who is interested in donating food and who  
          has the capacity to receive food donations is the biggest  
          challenge to meeting this great need.

          "The economic crisis, high unemployment rate, and increase  
          in food prices make food donations even more necessary.   
          Food banks and other non-profit organizations report huge  
          increases in demands for the services they offer.  They are  
          seeing an increase in people who never would have asked for  
          help in the past.  Unfortunately, donations and food  
          supplies have not kept pace with growing needs.

          "Every year Californians throw out tons of food.   
          Restaurants, caterers, supermarkets, and even individuals  
          hesitate in donating items to food banks for fear of legal  
          retribution.  Thankfully, federal and state law protects  
          these donors for any items they donated (perishable and  
          non-perishable items) to food banks and non-profit  
          organizations.  Despite the success of current law, much  
          still needs to be done.

          "Passage of SB 35 would encourage restaurants, caterers,  
          and consumers to think twice about the food they are  
          considering throwing out in the trash."

          Hunger Action Los Angeles writes, the "Foodbank Donation  
          Clearinghouse will connect restaurants, supermarkets and  
          individuals with food pantries and food banks to accomplish  
          two things.

          "The first is to get more food to the needy as the economic  
          crisis throws more people out of their homes and out of  




          SB 35 (Oropeza) continued                                
          Page 5
          


          their jobs.  Many of these persons do not qualify for the  
          food stamp (SNAP) program due to unemployment incomes that  
          are still too high for the very low food stamp eligibility  
          level, yet still find themselves short on resources for the  
          month to feed themselves and their children.  These  
          families can be helped by donated food items.

          "The second is to do something about the tons of food that  
          we in California are currently throwing away.  Many  
          organizations wish to donate this food but believe they'll  
          be sued if there is something wrong with it.  They are  
          unaware that they are safe from liability under federal and  
          state law for donated food, both perishable and  
          non-perishable.

          "Connecting these two issues together, we can deal with  
          waste and get more food to the needy.  Passage of SB 35  
          will encourage caterers, restaurants, and consumers to  
          donate food and be part of the process of helping the less  
          fortunate."

          Arguments in opposition.  California Restaurant  
          Association, California Hotel & Lodging Association and  
          California Attractions and Parks Association share Senator  
          Oropeza's goal of increasing the donation of food which  
          would result in more opportunities to feed the hungry and  
          less food dumped in landfills.  To that end, they are in  
          support of the portion of the bill that would create a  
          state database and have pledged to promote its existence  
          with all of their members at the statewide level, regional  
          levels and local levels of their respective associations.   
          However, they oppose the requirement that information  
          related to the database MUST be included in every contract.

          The opponents do not believe that modifying all existing  
          catering contracts to include the clearinghouse information  
          would be an effective way to publicize this program.  They  
          recommend that a more effective way to build awareness for  
          this program is to work closely with food banks and  
          appropriate state and local agencies.

          The opponents contend that the solution to more food  
          donation is to further empower food banks to be more  
          effective by giving them the tools they need to safely  
          transport prepared and perishable food, not getting in the  
          middle of a private contract that will do very little in  




          SB 35 (Oropeza) continued                                
          Page 6
          


          producing more donated food.  

          Staff comments.  Committee staff raises the following  
          issues for consideration as possible amendments to the  
          bill.

          1)Make specific information available on the selected  
            agency's Web site.  SB 35 requires an unspecified agency  
            to: (a) establish and maintain a food donation  
            clearinghouse database, and, (b) to prepare and make  
            available informational materials regarding the  
            clearinghouse to all food banks and nonprofit  
            organizations interested in receiving donated food and  
            all food facilities interested in donating food.  

          The bill does not require the agency to make the database  
            available on the agency's Web site, what informational  
            material the agency is required to make available to the  
            targeted groups, or the manner in which the agency will  
            make the information available.

             a)   Is it the author's intent to require the designated  
               agency to make the database available on the agency's  
               Web site?

             b)   What informational material does the author want to  
               impart to the targeted groups?  May the information  
               include, but not be limited to, the database, the  
               purpose of the database, how to join the database,  
               information regarding the laws and liability  
               protections related to donating food, or the  
               information regarding discarded food and its impact on  
               landfills?

             c)   How does the author want the informational material  
               to be made available to the targeted groups, via the  
               agency's Web site or other actions?

             d)   The bill creates a direct nexus, through the  
               notification requirement in all catering contracts,  
               for restaurants, caterers, etc., and purchasers of  
               food, to become aware of the clearinghouse.  Should  
               the notification requirement in contracts be  
               voluntary?  
             
             e)   Also, how will food banks and other charitable  




          SB 35 (Oropeza) continued                                
          Page 7
          


               nonprofits who are not parties of the contract become  
               familiar with the clearinghouse?  Does the author want  
               the designated agency to take specific actions to  
               promote participation in the clearinghouse?
             
          2)Authorize the Department of Social Services to place a  
            link to the food donation clearinghouse database on its  
            Web site.  It is committee staff's understanding that the  
            author's agency of choice to establish the food donation  
            clearinghouse database is the California Integrated Waste  
            Management Board (CIWMB).  From a potential user's  
            perspective, a food bank or other nonprofit charitable  
            organization, intuitively, it may not be the first  
            inclination to check CIWMB's Web site to find, among  
            other things, a database of restaurants or caterers  
            willing to donate food.  The author may wish to consider  
            language that authorizes the Department of Social  
            Services (DSS), or other state agencies, to provide a  
            link on their respective Web sites to direct Internet  
            traffic to CIWMB's food donation clearinghouse Web site.   
            Further, the author may want to authorize DSS or other  
            state agencies to use their existing channels of  
            communication with counties departments, food banks or  
            other nonprofit charitable organizations to inform them  
            of the clearinghouse.

          3)Technical amendments - Clearinghouse Database.  The bill  
            requires the designated agency to establish and maintain  
            a clearinghouse database and also requires informational  
            material and notification to be given regarding the  
            clearinghouse.  The author may want to amend the bill so  
            that it consistently references the term "clearinghouse  
            database".

                            PRIOR/RELATED LEGISLATION
           
          SB 1443 (Oropeza), 2007-2008 Legislative Session.  Would  
          have required every written contract entered by a retail  
          food facility for a catered event to include language in  
          the contract providing the food facility with the option of  
          donating any left over food that would otherwise be  
          discarded to a non-profit food bank or providing all  
          leftover food to the purchaser.  (Died, Assembly Inactive  
          File)
          
           SUPPORT:   As of April 24, 2009:




          SB 35 (Oropeza) continued                                
          Page 8
          



          American Federation of State, County and Municipal  
          Employees
          California Association of Food Banks
          Californians Against Waste
          Coachella Valley Rescue Mission
          Feeding America San Diego
          Foodbank of Southern California
          Food Empowerment Project
          Food Link for Tulare County, Inc.
          Hunger Action Los Angeles
          Interfaith Council of Amador
          Kings Community Action Organization

           OPPOSE:   As of April 24, 2009:

          California Restaurant Association
          California Hotel and Lodging Association
          California Attractions and Parks Association

           FISCAL COMMITTEE:   Senate Appropriations Committee



                                   **********