BILL ANALYSIS �
AB 1616
Page 1
Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1616 (Gatto) - As Amended: May 3, 2012
Policy Committee: HealthVote:15 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill establishes the California Homemade Food Act to
regulate the production and sale of certain non-potentially
hazardous foods prepared in a home kitchen. Specifically, this
bill:
1)Defines various terms for purposes of this bill, including the
following:
a) "Cottage food operation" (CFO) means an enterprise that
has not more $50,000 in gross annual sales and is operated
by an individual in his or her own home kitchen with not
more than one employee, not including a family member or
other household member. The food products are prepared or
packaged for direct and/or indirect sale to consumers.
b) "Class A CFO" means a CFO that is only engaged in the
direct sale of allowable home-made products to consumers.
c) "Class B CFO" means a CFO that is engaged in the direct
sale to consumers and indirect sale to a third-party
retailer of allowable home-made products.
2)Requires a Class A CFO to register with the local
environmental health department (LEHD) in a manner that
includes a self-certification checklist approved by the LEHD.
3)Requires a Class B CFO to obtain a permit from the LEHD.
4)Requires the Department of Public Health (DPH) to establish a
list of permissible non-potentially hazardous foods to be sold
by a CFO. Prohibits this list from being restricted by a
local government.
AB 1616
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FISCAL EFFECT
1)On-going costs of up to $200,000 (GF) per year for DPH to
conduct any multijurisdictional emergency response foodborne
out-break investigations, assuming there are approximately 45
such outbreaks per year.
2)One-time costs of $300,000 (GF), spread over two years, for
DPH to develop regulations and maintain and publish a list of
food products that can be safely prepared and sold to the
public.
3)Unknown costs, likely several hundred thousand dollars per
year, for LEHDs to approve and certify CFOs throughout the
state. Those costs would be offset by licensing and
certification fees.
COMMENTS
1)Purpose . The intent of this legislation is to create a legal
structure for safe home-production, and sale or trade, of
homemade foods. Under current law, selling foods produced in
the home is illegal. The author points out that there is a
growing demand for these foods as consumers increasingly look
for healthier, sustainable, local food sources and for food
that is produced by people in their community that they know
and have a relationship with. In addition, the author notes
that allowing home-based food production is a way to allow
micro-entrepreneurs to prosper during the on-going recession.
2)Background . According to the National Conference of State
Legislatures, 31 states have laws to regulate cottage and
home-based food production and it continues to be a subject of
legislative interest. Some state laws require a CFO to obtain
a license, the fee for which is typically between $10 and $100
annually. Some states also require the home kitchen to be
inspected only if the LEHD has particular reason to suspect
any unsafe food is associated with the kitchen. Most states
do not conduct regular, routine inspections for CFOs in the
same manner as they would for commercial kitchens. According
to information from the Sustainable Economies Law Center
(SELC), most cottage food laws only allow for the direct sale
to consumers (such as at farmer's markets) but some also allow
AB 1616
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for the sale of homemade foods to grocery stores and
restaurants. SELC notes that all cottage foods must be sold
within the state in which they are produced because there are
no cottage food laws at the federal level and, therefore,
interstate commerce is prohibited.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081