BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 1990
          Author:   Gordon (D), et al.
          Amended:  7/1/14 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  7-1, 6/25/14
          AYES:  Hernandez, Morrell, Beall, De Le�n, DeSaulnier, Evans,  
            Monning
          NOES:  Nielsen
          NO VOTE RECORDED:  Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
           ASSEMBLY FLOOR  :  73-1, 5/27/14 - See last page for vote


           SUBJECT  :    Community food production

           SOURCE  :     California Conference of Directors of Environmental  
          Health


           DIGEST  :    This bill 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.

           ANALYSIS  :    Existing law:

          1.Establishes the California Retail Food Code (CRFC), which  
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            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.

          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  

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            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 Department of Food and Agriculture (DFA), in  
            consultation with the Department of Public Health and local  
            health officers or designees, to publish and post on DFA'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.

          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  

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            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 DFA 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.

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

          2.Permits an enforcement officer to enter into, and inspect the  
            operations of, a community food producer or gleaner 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  
            or gleaner.

          3.Permits an enforcement officer to issue a community food  
            producer or gleaner a cease and desist order for violations of  
            the provisions of this bill, upon which the community food  
            producer or gleaner is prohibited from further sales until the  
            operations of the community food producer have been  

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            re-inspected and cleared by the enforcement officer's agency.

          4.Permits a community food producer or gleaner, 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.

          5.Specifies that violations of the requirements of a community  
            food producer or gleaner is subject to existing penalty  
            provisions of the CRFC, which provides for misdemeanor  
            penalties and fines of between $25 and $1,000 per offense.

           Comments
           
          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 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.

           Prior Legislation
           
          AB 1616 (Gatto, Chapter 415, Statutes of 2012) provides a  

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          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 authorizes DFA 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 authorizes  
          farmers' markets to establish rules and procedures.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/6/14)

          California Conference of Directors of Environmental Health  
          (source) 
          California Association for Micro Enterprise Opportunity
          Community Alliance with Family Farmers
          Roots of Change

           OPPOSITION  :    (Verified  8/6/14)

          Association of California Egg Farmers
          Sustainable Economics Law Center

           ARGUMENTS IN SUPPORT  :    The California Association of  
          Environmental Health Administrators (CAEHA) is sponsoring this  
          bill to promote 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  

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          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.
          
           ARGUMENTS IN 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 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  

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          food on land that is not zoned as agricultural who already  
          obtain a Certified Producers' Certificate through DFA 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.
          
          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.   
          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.  In 2010 when there was a  
          recall of eggs, sales slumped significantly for all eggs in  
          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 references to  
          eggs are removed from the bill.   

           ASSEMBLY FLOOR  : 73-1, 05/27/14
          AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  

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            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Pan, Perea, John A. P�rez, V. Manuel  
            P�rez, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner,  
            Stone, Ting, Wagner, Weber, Wieckowski, Wilk, Williams,  
            Yamada, Atkins
          NOES: Olsen
          NO VOTE RECORDED: Gorell, Patterson, Quirk, Quirk-Silva,  
            Waldron, Vacancy


          JL:nl  8/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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