BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          SB 1269 (Oropeza)
          As Amended March 23, 2010 
          Hearing Date: April 13, 2010
          Fiscal: Yes
          Urgency: No
          TW:jd
                    

                                        SUBJECT
                                           
                               Food Donation Liability 

                                      DESCRIPTION  

          This bill would require the Department of Food and Agriculture  
          and the Department of Public Health to post food donation  
          liability exemption information on their respective websites.

          (This analysis reflects author's amendments to be offered in  
          Committee.)

                                      BACKGROUND  

          A December 2004 study by the California Environmental Protection  
          Agency (Cal-EPA) found that discarded food was by far the most  
          prevalent material in the state's landfills-accounting for  
          approximately 14.6 percent of overall disposed wastes, or an  
          estimated 5.8 million tons in 2003.  (Statewide Waste  
          Characterization Study, California Environmental Protection  
          Agency-Integrated Waste Management Board, December 2004, p. 5.)   
          More troubling is that in 2003 the UCLA Center for Health Policy  
          and Research reported that more than 2.9 million low-income  
          adults in California lacked sufficient resources to adequately  
          put food on the table.  (Health Policy Research Brief, More Than  
          2.9 Million Californians Now Food Insecure - One in Three  
          Low-Income, An Increase in Just Two Years, UCLA Center for  
          Health Policy Research, June 2005, p. 1.)  

          The correlation between wasted food and hungry families in the  
          state presents a unique public policy problem considering that  
          the overall price of food has recently increased.  According to  
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          news reports, the very basic food supplies, particularly flour,  
          milk, and eggs has risen at least 24 percent for the year ending  
          in February.  (Sticker shock: Food prices surge, Mercury News,  
          March 17, 2008; see also Folks on the edge pinched by rising  
          prices, Sacramento Bee, March 14, 2008.)  Economists' concerns  
          that higher food prices will continue was also confirmed by the  
          United States Department of Agriculture, predicting at least  
          another 4 percent increase for the year ahead.  (Sticker shock:  
          Food prices surge, Mercury News.)

          In the past, Congress sought to curb the overall hunger problem  
          by encouraging food donation programs through the Bill Emerson  
          Good Samaritan Food Donation Act, which makes it easier for  
          businesses to donate food to food banks by protecting them from  
          liability for injuries resulting from the consumption of the  
          donated food.  (See Pub. L. No. 104-210, Sta. 3011.)  As a  
          result, several states, including California, adopted similar  
          food donation statutes protecting food donors from civil and  
          criminal liability.  (Civ. Code Sec. 1714.25 et seq.; Health &  
          Saf. Code Secs. 114432-114434; Food & Agr. Code Secs.  
          58501-58509.)  

          Despite these protections, the author argues that California  
          businesses remain hesitant to donate to food banks due in part  
          to liability concerns regarding illnesses caused from donated  
          food.  As a result, tons of consumable food end up in  
          California's land fills.  In order to increase the amount of  
          donated food to non-profit organizations and food banks and  
          decrease the amount of food waste going to land fills, this bill  
          would provide information to all California businesses  
          explaining their exemptions from liability under federal and  
          state laws.

                                CHANGES TO EXISTING LAW
           
           Existing federal law  protects food donors from civil and  
          criminal liability when they donate to food banks and food  
          rescue programs.  (Bill Emerson Good Samaritan Food Donation  
          Act: Pub. L. No. 104-210.)
           
           Existing law protects food donors from civil and criminal  
          liability or penalty for 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.  (Health & Saf. Code Secs. 114432-114434.)
                                                                      



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           Existing law  limits a food facility's liability for injuries  
          resulting from the consumption of donated food that is fit for  
          human consumption at the time it is donated to a nonprofit  
          charitable organization, except for injuries resulting from  
          negligence or willful acts in the preparation or handling of the  
          donated food.   (Civ. Code Sec. 1714.25(a).) 

           Existing law  limits a nonprofit charitable organization or a  
          food bank's liability for  injuries or death resulting from the  
          consumption of donated food that is fit for human consumption at  
          the time it is distributed, except for injuries or death  
          resulting from negligence, recklessness, or intentional  
          misconduct on the part of the organization.  (Civ. Code Sec.  
          1714.25(b).)

           Existing law  regulates agricultural food donation from farms to  
          non-profit charitable organizations or food banks.  (Food & Agr.  
          Code Secs. 58501-58509.)

           Existing federal law  provides a tax incentive for food  
          donations.  (Pension Protection Act of 2006: Pub. L. No.  
          109-280.)

           This bill  would require the Department of Food and Agriculture  
          and the Department of Public Health to post state and federal  
          statutory exemptions from liability for the donation of food as  
          well as federal tax deduction information.
          
                                        COMMENT
           
          1. Stated need for the bill  
          
          The author writes:
          
            Despite success of current law in donating food, California  
            discards tons of food that ultimately ends up in our landfills  
            . . . . [O]ne of the major hindrances to successful food  
            donation is fear that businesses will be liable for any  
            damages that may result from the consumption of food they have  
            donated.
          
          2.  Current version of the bill would have placed an unreasonable  
            burden on the Secretary of State  

          This bill would have required the Secretary of State to mail  
                                                                      



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          copies of state and federal laws regarding exemption from  
          liability for donated food.  As currently in print, this bill  
          raises several concerns.  First, this bill would have required  
          five to seven pages of information to be supplied to all  
          businesses every time a reminder notice was due to be mailed.    
          Notably, in February of this year, the Secretary of State's  
          office issued a Notice of Move to Statement of Information  
          Mailer Postcard in order to save $30,000 in costs each month.   
          Second, since the Secretary of State would be the sender of the  
          food donation liability exemption information, consumers would  
          begin contacting the Secretary of State's office for additional  
          information on the food donation liability exemption.  The  
          Secretary of State does not typically handle such requests.   
          Third, special interest groups have contacted the Secretary of  
          State to request the Secretary of State make the public aware of  
          their particular information.   The Secretary of State does not  
          distribute special interest group information to avoid selecting  
          one special interest over another.  For these reasons, there was  
          concern that the Secretary of State would face the undue burden  
          of serious increase in costs and workload to distribute the food  
          donation liability exemption material.  Accordingly, the author  
          agreed to amendments as described in Comment 4. 


          3.  Distribution of liability exemption information will assist  
            businesses in their decision to donate food  


          This bill would make businesses aware of the exemption from  
          liability for food donation, which would increase food donation  
          to help California's hungry.  Unless businesses have a reason to  
          seek out food liability exemptions, they remain misinformed  
          about food donation liability and have little incentive to  
          donate.  As noted by Hunger Action Los Angeles, a supporter of  
          this bill, "[i]n meetings and conversations about donating  
          surplus food, it's been repeatedly clear that business owners  
          aren't familiar with the Good Samaritan Act, which frees food  
          donors from liability if surplus food was donated in good faith.  
           By supplying businesses with the specific exemptions for food  
          donations, this bill is intended to ensure that businesses are  
          better informed, are more willing to donate food items, and will  
          send less food waste to land fills.  In addition, providing  
          businesses with potential tax deduction information regarding  
          food donation may elicit more food donations.


                                                                      



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          4.  Author's amendments would narrow the scope of the bill to  
            make the most relevant entities responsible for distributing  
            requested information


           The purpose of this bill is to make food businesses aware of  
          their ability to donate food.  Although the Secretary of State  
          is arguably not the best entity to distribute this type of  
          information for the reasons stated above, other governmental  
          departments may be better suited to distribute this information.  
           In order to address these concerns, the author's office has  
          agreed to amend the bill to strike the Secretary of State and  
          insert the Department of Food and Agriculture and the Department  
          of Public Health as the entities providing the food donation  
          exemption excerpts.  


          Additionally, the bill requires distribution of food liability  
          exemption by mail.  Since this requirement will create expense  
          and potentially paper waste, the author's office has agreed to  
          amend the bill to require website posting of the food liability  
          exemption information with publications disseminated by mail  
          when possible.


          Additionally, the author has agreed to amend the bill to include  
          tax deduction information for food donation, which may create  
          more appeal to business owners if tax deduction information was  
          included with the list of code exemption sections.


             Suggested amendments: 

           
            On page 2, line 3 strike line 3 beginning with "A" through  
            line 11 and insert:

               The California Department of Food and Agriculture and the  
               California Department of Public Health shall make  
               information available on their website, and when possible,  
               disseminate the information via publications, on food  
               donation liability protections as specified in Section  
               1714.25 of the Civil Code, Chapter 5 (commencing with  
               Section 58501) of Part 1 of Division 21 of the Food and  
               Agricultural Code, Sections 114433 and 114434 of the Health  
               and Safety Code,  and the Bill Emerson Good Samaritan Food  
                                                                      



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               Donation Act (Section 1791 of Title 42 of the United States  
               Code), and on charitable tax deductions for contributions  
               of food inventory as specified in Section 170 of Part VI of  
               Subchapter B of Chapter 1 of Subtitle A of Title 26 of the  
               Internal Revenue Code. 


           Support  :  California Association of Food Banks; Community Action  
          Partnership Food Bank of San Bernardino County; Emergency Food  
          Bank of Stockton/San Joaquin; Food Empowerment Project; Food  
          Finders, Incorporated; Hunger Action Los Angeles

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :

          SB 35 (Oropeza, 2009) would have required the Governor to direct  
          a state agency to establish and maintain a clearinghouse  
          database that would allow a food bank or a nonprofit charitable  
          organization that would like to receive food to contact a food  
          facility that has an interest in donating food.  This bill was  
          held in the Senate Appropriations Committee.

          SB 1443 (Oropeza, 2008) would have required contracts between  
          retail food facilities and purchasers to include an option  
          allowing the purchaser to donate leftover food; would have  
          limited liability to retail food facilities from leftover food  
          injuries; would have authorized retail food facilities to  
          determine whether leftover food was fit for human consumption;  
          would have defined leftover food as food purchased and prepared  
          pursuant to a written contract; and would have revised the  
          definitions of non-profit charitable organizations and food  
          banks to reflect similar code provisions.   This bill died on  
          the Assembly floor.

          SB 144 (Runner, Ch. 23, Stats. 2006) repealed and reenacted the  
          California Uniform Retail Food Facilities Law as the California  
          Retail Food Code and provided, inter alia, the Department of  
          Health Services with additional enforcement powers and duties to  
          enhance the health and sanitation guidelines for retail food  
                                                                      



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          facilities.  

          SB 2427 (Russell, Ch. 735, Stats. 1988) limited civil liability  
          of food facilities for injuries resulting from the consumption  
          of donated food. 

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