BILL ANALYSIS �
AB 1616
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CONCURRENCE IN SENATE AMENDMENTS
AB 1616 (Gatto)
As Amended August 30, 2012
Majority vote
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|ASSEMBLY: |56-19|(May 29, 2012) |SENATE: |33-0 |(August 30, |
| | | | | |2012) |
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Original Committee Reference: HEALTH
SUMMARY : Regulates the production and sale of certain
non-potentially hazardous foods prepared in a home kitchen.
The Senate amendments :
1)Recast provisions subjecting a cottage food operation (CFO) to
various specified local government regulations with respect to
zoning, local ordinances, and use permits from the Health and
Safety Code to the Government Code.
2)Require monies collected by the Department of Public Health (DPH)
pursuant to the provisions of this bill relating to inspections
and enforcement to be deposited in the existing Food Safety Fund
in the State Treasury.
3)Establish a phase in schedule of gross annual sales limits on
CFOs, beginning with a $35,000 sales maximum in 2013, a $45,000
maximum in 2014, and a $50,000 maximum beginning in 2015 and in
each subsequent year.
4)Clarify allowable locations for the direct and indirect sales of
cottage food products and require a third party retailer involved
in indirect sales to hold a valid permit from the local
environmental health department (LEHD).
5)Clarify the definition of a cottage food product and make
additional clarifying changes to the list of permissible
non-potentially hazardous foods to be sold by a CFO that DPH is
required to develop.
6)Authorize the Director of DPH to add or delete food products to or
from the approved food products list described above, as
specified. Require DPH to post notice of changes to this list on
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its Web site. Exclude this list from administrative rulemaking
requirements.
7)Revise the definition of "permit" in the California Retail Food
Code (CRFC) to include a CFO and deems "registration" to be
synonymous with "permit" for purposes of this bill.
8)Require kitchen equipment to be clean and maintained in a good
state of repair. Prohibit smoking in the portion of a private
home used for a CFO.
9)Allow for inspections of CFOs in response to a consumer complaint
and authorize LEHDs to recover the costs of conducting inspections
for those CFOs that engage in direct sales only, as specified.
10)Limit the sale of cottage food products between counties, as
specified.
11)Modify provisions treating CFOs as restricted food service
facilities for purposes of compliance with the CRFC, as specified.
12)Require a person who prepares or packages cottage food products
to complete a food processor course, of no more than four hours,
instructed by DPH within three months and direct DPH to work with
LEHDs to ensure proper notification is provided to CFOs.
13)Prescribe labeling requirements for cottage food products and
require a food facility that serves a cottage food product without
labeling or packaging to identify it as homemade.
14)Require the Director of DPH to provide technical assistance and
develop, maintain, and deliver commodity-specific training related
to the safe processing and packaging of cottage food products to
LEHDs and permit LEHDs to impose a surcharge fee on certain CFOs
for the administration of this training, as specified.
15)Modify provisions governing enforcement to allow LEHDs to suspend
or revoke a CFO's permit for specified violations, or immediately
close a CFO if an imminent health hazard is found.
16)Make a number of other technical, clarifying and conforming
changes to address chaptering conflicts.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar to
the version as approved by the Senate.
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FISCAL EFFECT : According to the Senate Appropriations Committee:
1)One-time costs of $150,000 to $300,000 (General Fund) for DPH to
adopt regulations regarding foods that may be produced by CFOs.
2)Unknown costs to LEHDs to regulate CFOs (local funds). Because
LEHDs have the authority to levy fees, these costs are not
reimbursable by the state.
COMMENTS : The Senate version of this bill differs from the
Assembly-approved version in that the Senate amendments, among other
things, give DPH the authority to add and remove foods from the
approved foods list; establish labeling requirements; include
additional health and safety requirements; limit the sale of cottage
food products through indirect sales to the county of production,
unless actively accepted by another county; give LEHDs the authority
to regulate CFOs that engage in indirect sales; require DPH to train
LEHDs on how to enforce indirect sales requirements; and, allow DPH
to inspect CFOs as needed for the enforcement of the indirect sales
requirements. According to the author, the Senate amendments
reflect provisions deemed necessary by the Administration to ensure
proper implementation of the bill.
The California Association of Environmental Health Administrators,
which represents LEHDs, remains opposed to this bill, arguing that
it prohibits LEHDs from using their current enforcement authority
under the CRFC to appropriately regulate CFOs and would specifically
set new parameters on permit conditions and inspection frequencies
not found elsewhere under existing law.
Analysis Prepared by : Cassie Royce / HEALTH / (916) 319-2097
FN: 0005815