BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       AB 1990
          AUTHOR:        Gordon
          AMENDED:       June 16, 2014
          HEARING DATE:  June 25, 2014
          CONSULTANT:    Marchand

           SUBJECT  :  Community food production.
           
          SUMMARY  :  Permits a "community food producer," defined as a  
          producer of agricultural products on land that is not zoned for  
          agricultural use, to sell whole uncut fruits or vegetables, or  
          unrefrigerated shell eggs, directly to the public, including  
          restaurants, if the community food producer follows certain  
          requirements.

          Existing law:
          1.Establishes the California Retail Food Code (CRFC), which  
            governs all aspects of retail food safety and sanitation in  
            California under the CRFC. Specifies that primary  
            responsibility for enforcement of the CRFC is with local  
            enforcement agencies, typically local environmental health  
            departments (LEHDs).

          2.Requires, under the CRFC, that food be obtained from "approved  
            sources," which is defined as sources that comply with all  
            applicable laws, or a producer, manufacturer, distributor, or  
            food facility that is acceptable to the enforcement agency  
            based on a determination of conformity with applicable laws,  
            or, in the absence of applicable laws, with current public  
            health principles and practices, and generally recognized  
            industry standards that protect public health.

          3.Deems as coming from an approved source any whole uncut fruit  
            or vegetable, or unrefrigerated shell egg, grown or produced  
            in compliance with all applicable federal, state, or local  
            laws, regulations, and food safety guidelines issued by a  
            regulatory agency.

          4.Defines "potentially hazardous food" to mean any food capable  
            of supporting growth of infectious or toxigenic  
            micro-organisms when held at temperatures above 45 degrees  
            Fahrenheit.

                                                         Continued---



          AB 1990 | Page 2




          5.Defines "farm stands" as premises established pursuant to  
            specified provisions of the Food and Agricultural Code, and  
            limits the food sales at farm stands to whole produce and  
            shell eggs.  Prohibits live animals, birds, or fowl from being  
            kept or allowed within 20 feet of any area where food is  
            stored or held for sale.

          6.Defines "community-supported agriculture program" as a program  
            under which a registered direct marketing producer, or a group  
            of registered direct marketing producers, grow food for a  
            group of California consumer shareholders or subscribers who  
            pledge or contract to buy a portion of the future crop, animal  
            production, or both, of the producer.

          7.Permits farmers to sell fresh fruits, nuts and vegetables that  
            they produce, directly to the public at a certified farmers'  
            market, a field retail stand, or a farm stand, and exempts  
            this produce from certain minimum size, packaging and labeling  
            requirements, subject to specified conditions. Limits farmers  
            to selling produce that does not conform to size, packaging  
            and labeling requirements only to consumers who are end users,  
            or individuals or entities that subsequently sell the produce  
            directly to end users.

          8.Requires a producer that markets whole produce, shell eggs, or  
            processed foods through a community-supported agriculture  
            program to register as a direct marketing producer. Requires  
            the annual registration fee for registration as a direct  
            marketing producer to be set at the actual cost of  
            registration, with a maximum fee of $100 annually. 

          9.Requires the California Department of Food and Agriculture  
            (CDFA), in consultation with the California Department of  
            Public Health (CDPH) and local health officers or designees,  
            to publish and post on CDFA's Internet Web site small farm  
            food safety guidelines on the safe production, processing, and  
            handling of both non-potentially hazardous and potentially  
            hazardous foods.

          This bill:
          1.Defines "community food producer" as a producer of  
            agricultural products on land that is not zoned for  
            agricultural use but is otherwise in compliance with  
            applicable local land use and zoning restrictions, including,  
            but not limited to, restrictions governing personal gardens,  
            community gardens, school gardens, and culinary gardens.




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          2.Exempts from the definition of "food facility," for purposes  
            of the CRFC, a "community food producer" as defined by this  
            bill.

          3.Defines "gleaner," for purposes of the CRFC, as a person who  
            legally gathers remnants of an agricultural crop or harvests  
            part of, or all of, an agricultural crop made available by the  
            owner of the agricultural crop.

          4.Permits a community food producer or a gleaner, as these terms  
            are defined by this bill, unless prohibited by a local  
            jurisdiction that has adopted an ordinance regulating  
            community food production, to sell or provide whole uncut  
            fruits or vegetables, or unrefrigerated shell eggs, directly  
            to the public, to a restaurant, or to a cottage food operation  
            if the community food producer meets all of the following  
            requirements, in addition to any requirements imposed by a  
            locally adopted ordinance:

                  a.        Requires agricultural products to be grown or  
                    produced in compliance with all applicable federal,  
                    state, or local laws, regulations, and food safety  
                    guidelines issued by a regulatory agency;
                  b.        Requires agricultural products to be labeled  
                    with the name and address of the community food  
                    producer;
                  c.        Requires conspicuous signage to be provided in  
                    lieu of a product label if the agricultural product is  
                    being sold by the community food producer on the site  
                    of the production. Requires this signage to include  
                    the name and address of the community food producer;

                  d.        Requires best management practices (BMPs), as  
                    described by CDFA regarding small farm food safety  
                    guidelines on safe production, processing, and  
                    handling of both non-potentially hazardous and  
                    potentially hazardous foods; and,
                  e.        Limits egg production to 15 dozen eggs per  
                    month.

          5.Permits a local city or county health enforcement office to  
            require a community food producer to register with the city or  
            county, and to provide specified information, including the  
            name, address, and telephone number of the community food  




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            producer.

          6.Permits an enforcement officer to enter into, and inspect the  
            operations of, a community food producer in response to a food  
            safety recall or food safety complaint, and permits the  
            enforcement officer to recover reasonable costs associated  
            with an inspection from the community food producer.

          7.Permits an enforcement officer to issue a community food  
            producer a cease and desist order for violations of the  
            provisions of this bill, upon which the community food  
            producer is prohibited from further sales until the operations  
            of the community food producer have been re-inspected and  
            cleared by the enforcement officer's agency.

          8.Permits a community food producer, at any time within 15  
            calendar days after being issued a cease and desist order, to  
            request in writing a hearing to show cause why the prohibition  
            of further sales is not warranted. Requires this hearing to be  
            held within 15 calendar days of the receipt of a request for a  
            hearing.

          9.Specifies that violations of the requirements of a community  
            food producer is subject to existing penalty provisions of the  
            CRFC, which provides for misdemeanor penalties and fines of  
            between $25 and $1,000 per offense.
          
           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill has negligible fiscal impact to CDPH and  
          has potentially minor enforcement costs to local public health  
          agencies, partially recoverable through inspection fees, with  
          any remainder likely reimbursable.

           PRIOR VOTES  :  
          Assembly Agriculture:6- 0
          Assembly Appropriations:17- 0
          Assembly Floor:     73- 1
           
          COMMENTS  :  
           1.Author's statement.  According to the author, the agriculture  
            movement is experiencing burgeoning popularity, and California  
            has become a trailblazer in progressive food and farm  
            legislation. Additionally, there has been a dramatic growth in  
            a wide range of small community or urban gardens throughout  
            the past decade. These small productions sites include  
            personal gardens, culinary gardens, community gardens, and  




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            school gardens. AB 224 (Gordon), Chapter 404, Statutes 2013,  
            last year's Community Supported Agriculture (CSA) legislation  
            provided the platform to clarify the regulation of "community  
            gardens" from a food safety perspective. However, food  
            production remains governed by a patch-work quilt of disparate  
            policies. Many local agencies are unclear as to whether  
            current law allows the direct sale of produce from these  
            community gardens without explicit authorization by the LEHDs.  
            Furthermore, no statewide guidance currently exists with  
            respect to the necessary regulatory oversight given the wide  
            range scale and scope of such operations. The statewide  
            approach in this bill promotes safe community food while  
            recognizing local land use and zoning authority. By adhering  
            to local land use zoning requirements, it would reduce demands  
            on local governments to adopt individual local ordinances.  
            This bill would also provide a single set of BMPs consistent  
            with recently enacted cottage food laws and CSA laws.

          2.Direct Marketing Ad Hoc Committee report.  CDFA convened a  
            Direct Marketing Ad Hoc Committee to review and analyze the  
            various business functions of the Direct Marketing Program  
            within CDFA from October 2011 through September 2012. The  
            Direct Marketing Program provides opportunities for California  
            farmers to market their products directly to consumers with  
            exemptions from minimum size, labeling, standard pack, and  
            container requirements. The Direct Marketing Program is  
            intended to provide a viable channel for California farmers to  
            market their agricultural products directly to the consumer,  
            thereby providing a significant source of revenue for  
            participating farmers. The most common form of direct  
            marketing is through certified farmers' markets, but also  
            includes farm stands, field retail stands and farm stands, and  
            subscription-based CSA programs.

          According to the report:
               "Produce from farms in California is considered to be from  
               "approved sources" pursuant to the California Health and  
               Safety Code. However, there may generally be no specific  
               food safety oversight by any regulatory agency except where  
               the product or commodity is covered under a marketing order  
               such as the Leafy Green Marketing Agreement. Concern over  
               food safety has recently been elevated with the rapid  
               increase in small scale farming operations such as  
               community and backyard gardens. Because California law does  
               not define a "small farm" there is no clear delineation of  




          AB 1990 | Page 6




               where food safety oversight begins and ends. Local  
               environmental health officers and county agricultural  
               commissioners are expected to provide guidance and  
               oversight of these small scale operations in some cases.  
               Temperature control is also a food safety concern when  
               potentially hazardous foods require temperature control for  
               safety."

            The Ad Hoc Committee included a Gardens Subcommittee which  
            looked at culinary, school, community, victory, and other  
            small-scale plots used for growing fresh fruits and  
            vegetables. According to the report, due to issues concerning  
            land use, zoning, and food safety requirements, several local  
            agencies have started to formalize an approval process to  
            allow these gardens to grow, donate, and sell the produce  
            grown. The subcommittee determined that "the sale of produce  
            from these gardens should be regulated in a manner consistent  
            with CSAs and retail field stands or farm stands under the  
            CRFC." The subcommittee recommended that when the products of  
            these gardens enter the stream of commerce, registration and  
            self-certification should be mandated for BMP and good  
            agricultural practices (GAP). The subcommittee encouraged  
            CDFA, CDPH, and local and environmental health agencies to  
            collaborate in the development of web-based information on  
            BMPs/GAPs for the production, distribution, and consumption of  
            fruits and vegetables grown in these gardens. Finally, the  
            subcommittee stated that if the home garden sells the produce  
            off-site at a farmer's market or to local restaurants, the  
            consumer cannot see firsthand under what conditions the  
            produce is grown, and the garden operator should be subject to  
            registration and certification of good growing practices.
            
          3.Related legislation. AB 2539 (Ting), makes various changes to  
            the rules governing certified farmers' markets, including  
            requiring all meat products offered for sale in a farmers'  
            market to be from approved sources and to be maintained at 41  
            degrees Fahrenheit, prohibiting smoking of nicotine products  
            within 25 feet of the commerce area of the farmers' market,  
            and prohibiting the self-serving of food samples. AB 2539  
            passed out of this committee on June 18, 2014, on a 6-2 vote.

          4.Prior legislation. AB 224 (Gordon), Chapter 404, Statutes of  
            2013, defined CSA within the direct marketing program  
            regulated by the CDFA.  This bill would establish regulatory  
            parameters and require CSA registration fees to fund  
            administration and related programmatic costs, as specified.




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            AB 996 (Dickinson), of 2013, would have amended certified  
            farmers' market law requirements, fees, and related  
            provisions, and added community-supported agriculture to the  
            definition of direct marketing. AB 996 was held under  
            submission in the Assembly Appropriations Committee.

            AB 1616 (Gatto), Chapter 415, Statutes of 2012, provided a  
            regulatory framework for the production in home kitchens of  
            food for sale, referred to as cottage food operations.

            AB 2168 (Jones), Chapter 447, Statutes of 2008, expanded the  
            definition of direct marketing to include farm stands, field  
            retail stands, and other forms of direct marketing, revised  
            related definitions, and authorized CDFA to adopt regulations  
            to regulate direct marketing, as specified.

            AB 593 (Strom-Martin), Chapter 833, Statutes of 1999, codified  
            regulations exempting direct marketers from specified packing  
            and labeling standards, amends fee structures, and authorized  
            farmers' markets to establish rules and procedures.
          
          5.Policy comment. Legislation enacted last year establishing a  
            regulatory framework for CSA (AB 224) built upon a model of  
            regulation that provides for a limited regulatory structure  
            for the direct marketing of agricultural products. Other forms  
            of direct marketing include certified farmers' markets, field  
            retail stands, and farm stands. Those other forms of direct  
            marketing producers are not only included in the CRFC (which  
            is in the Health and Safety Code), but are also defined and  
            must comply with certain requirements that are delineated in  
            the Food and Agricultural Code (FAC), and specifically  
            exempted from other requirements in the FAC. For example, the  
            other forms of direct marketing producers are specifically  
            exempted from fruit, nut and vegetable standardization laws  
            that regulate quality, maturity, variety, grade, size,  
            container and packing requirements. While the concept of a  
            "community food producer" appears to be another form of direct  
            marketing producer, this bill does not include community food  
            producers in the list of direct marketing producers that are  
            listed in the FAC, at least in part because doing so would  
            require the payment of a registration fee. 
               
          6.Support.  The California Association of Environmental Health  
            Administrators (CAEHA) is sponsoring this bill to promote  




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            community food production while protecting public health.  
            CAEHA states that this bill fills a regulatory void in the  
            oversight of food production in urban settings. CAEHA states  
            that this bill deems food grown on non-agriculturally zoned  
            land to be approved, provided the production is done in  
            compliance with basic agricultural and food safety best  
            management practices. This bill follows up on AB 224 (Gordon)  
            from last year, which provided similar regulatory oversight  
            for the community supported agriculture operations - the  
            veggie boxes.  CAEHA states that like AB 224, this bill seeks  
            to find a way to provide regulatory oversight commensurate  
            with the low public health risk of these operations. Because  
            of the rapid expansion of urban agriculture through community  
            gardens, culinary gardens, school gardens and even personal  
            gardens, local agencies have had to respond to concerns over  
            food safety and land use. According to CAEHA, a small number  
            of local governments have established local ordinances or  
            guidelines for this community food production, but there is a  
            lack of statutory authority and consistency - two factors that  
            tend to chill the further expansion of this positive movement.  
            By statutorily exempting these community food production sites  
            from being regulated as a full-scale food facility and by  
            requiring adherence to sound growing and food safety  
            practices, subject to enforcement by local environmental  
            health inspectors on a complaint basis, CAEHA believes this  
            bill finds the balance between public health protection and  
            sustainable food production.   Furthermore, this bill keeps  
            intact the necessary local government land use, zoning and  
            business licensing. Roots of Change supports this bill for  
            similar reasons. The Community Alliance with Family Farmers  
            (CAFF) states in support that farmers in California have a  
            right to erect a farm stand on their property or at the  
            nearest paved road and sell their produce directly to the  
            public without a permit. Farmers are also permitted to sell  
            directly to the public through farmers' markets or CSA, but  
            they must be registered and pay a fee to do so. CAFF states  
            that this bill would give urban gardeners a right to sell  
            whole produce or shell eggs directly to the public without  
            obtaining a health permit, unless agricultural production is  
            precluded by specific zoning restrictions.

          7.Opposition.  The Sustainable Economies Law Center (SELC)  
            states that it appreciates the intentions of this bill and  
            recognizes the attempt to address the confusion that  
            small-scale produce growers and regulators struggle with in  
            trying to interpret the very vague sections of CRFC that  




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            require foods to come from "approved sources." However, SELC  
            states that by clarifying that small-scale producers can sell  
            produce directly to consumers and restaurants, it fears that  
            it could be interpreted by local health and agricultural  
            regulators as saying that these growers cannot legally sell or  
            donate to grocery stores, food banks, and other food  
            facilities. SELC is also concerned that some jurisdictions may  
            choose to impose the registration requirements permitted under  
            this bill to all producers who may meet the definition of  
            "community food producer." There are some small-scale food  
            producers who grow food on land that is not zoned as  
            agricultural who already obtain a Certified Producers'  
            Certificate through CDFA and their local agricultural  
            commission, thus they have committed to safe food handling and  
            are already deemed an approved source. SELC states that there  
            is need for clarification on the confusing definition of  
            "approved source" in the Health and Safety Code. However, this  
            bill as currently written poses a great risk of increasing  
            confusion and increasing regulatory burdens on some of  
            California's small-scale food producers.

          8.Oppose unless amended.  The Association of California Egg  
            Farmers (ACEF) opposes this bill unless all reference to  
            "unrefrigerated shell eggs" is removed from the bill. ACEF  
            states that California consumers are demanding safe and  
            healthy food.  ACEF states that California's egg farmers have  
            long been at the forefront of developing programs and  
            practices to aggressively combat the spread of food borne  
            pathogens to protect public health, maintain consumer  
            confidence and sell safe, fresh, wholesome eggs.  The pinnacle  
            of California's efforts to protect California's consumers was  
            the creation of the California Egg Quality Assurance Program  
            (CEQAP). This program was developed in cooperation with CDFA,  
            the U.S. Department of Agriculture, the University of  
            California Cooperative Extension, the California Animal Health  
            and Food Safety Laboratory, the California Department of  
            Health Services, the U.S. Food and Drug Administration,  
            accredited poultry veterinarians and shell egg producers.  
            Since its inception, California egg consumers have not  
            experienced one shell egg trace-back associated with human  
            illness in more than 15 years from a California grown egg.   
            Prior to implementation of these standards, Salmonella  
            contamination of eggs was an issue. When a food safety issue  
            arises, all egg farmers suffer.  In 2010 when there was a  
            recall of eggs, sales slumped significantly for all eggs in  




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            California. When egg farmers want to sell their products to  
            restaurants and retail stores, meeting the basic food safety  
            standards is paramount. This bill provides an exemption based  
            on where eggs are farmed, not how or by meeting specific  
            standards. ACEF continues to support all egg farmers and our  
                                                                   consumers in California.  Therefore, ACEF states it cannot  
            justify providing an exemption to food safety standards for  
            farms based on where they are located, and must oppose AB 1990  
            unless eggs are removed from the bill.   
          
          9.Technical amendment. This bill permits both a community food  
            producer and a gleaner, as both of these terms are defined in  
            this bill, to sell fruits, vegetables and shell eggs to the  
            public, as long as certain requirements are followed. However,  
            much of the rest of the bill, including the provisions that  
            allow local health enforcement officers to respond to a food  
            safety complaint, only use the term "community food producer."  
            This bill should be amended to clarify that all of the  
            provisions of this bill, including the enforcement provisions,  
            apply to both a community food producer and a gleaner.
          
           SUPPORT AND OPPOSITION  :
          Support:  California Conference of Directors of Environmental  
                    Health (sponsor)
                    California Association for Micro Enterprise  
                    Opportunity
                    Community Alliance with Family Farmers
                    Roots of Change

          Oppose:   Association of California Egg Farmers (unless amended)
                    Sustainable Economics Law Center




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