BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 170
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          SENATE THIRD READING
          SB 170 (Wolk)
          As Amended  August 22, 2014
          Majority vote

           SENATE VOTE  :37-0  
           
           WATER, PARKS & WILDLIFE        15-0                               

           
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          |Ayes:|Rendon, Bigelow, Allen,   |     |                          |
          |     |Bocanegra, Dahle, Fong,   |     |                          |
          |     |Frazier, Beth Gaines,     |     |                          |
          |     |Gatto, Gomez, Gonzalez,   |     |                          |
          |     |Gray, Patterson, Yamada,  |     |                          |
          |     |Williams                  |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Exempts, beginning January 1, 2016, grain milled and  
          sold at the Bale Grist Mill State Historic Park from  
          registration and other requirements applicable to retail food  
          facilities if certain conditions are met.  Specifically,  this  
          bill  :

          1)Exempts, beginning January 1, 2016, the milling, packaging,  
            and selling of grain produced and sold at a water-driven grist  
            mill on the National Register of Historic Places from the  
            requirement to register with the State Department of Public  
            Health, provided best management practices suitable for a  
            historic water-driven grist mill are followed for the  
            processing and handling of the product, the flour is  
            identified as being produced at a historic mill using  
            traditional methods, and the product meets applicable federal  
            food adulteration purity standards.

          2)Excludes, beginning January 1, 2016, a water-driven grist mill  
            on the National Register of Historic Places that has onsite  
            sales of grain milled at the facility from the definition of a  
            retail food facility.

          3)States legislative findings and declarations regarding the  
            Department of Parks and Recreation (DPR), including:  recent  
            legislation that has increased outreach to the public through  
            partnerships and other tools to help stabilize DPR and broaden  








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            its financial base; ongoing efforts by the Parks Forward  
            Commission, the State Parks and Recreation Commission  
            (Commission), and DPR to develop a more secure financial base  
            through increased use of pilot projects, regional passes, and  
            other reforms; and the need for a more entrepreneurial and  
            robust revenue-generation strategy, efficiency and  
            accountability, and reliable public funding to meet ongoing  
            operating needs and reduce deferred maintenance to protect  
            park assets.

          4)States legislative intent to encourage DPR and the State  
            Department of Public Health to consult with each other to  
            develop and implement additional, reasonable improvements  
            designed to increase public health security at the Bale Grist  
            Mill State Historic Park without impairing or adversely  
            affecting historical, cultural or natural resources. 

          5)Includes technical language to avoid chaptering out issues  
            with this bill, AB 1990 (Gordon) of the current legislative  
            session, and SB 1235 (Knight) of the current legislative  
            session, all three of which propose amendments to Health and  
            Safety Code Section 113789.


           EXISTING LAW  :

          1)Prohibits the manufacture, packing or holding of processed  
            food without a valid registration from the State Department of  
            Public Health.

          2)Provides for the regulation of health and sanitation standards  
            for retail food facilities by the State Department of Public  
            Health, and enforced through local health agencies.  Defines a  
            retail food facility as an operation that stores, prepares,  
            packages, serves, vends, or otherwise provides food for human  
            consumption at the retail level, with specified exceptions.   
            Prohibits retail food facilities from using wood as a  
            food-contact surface.

          3)Establishes the state park system, consisting of 280 units,  
            one of which is the Bale Grist Mill State Historic Park  
            located in Napa County.  The Bale Grist Mill State Historic  
            Park is also listed on the National Register of Historic  
            Places.









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          FISCAL EFFECT  :  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel. 

           COMMENTS  :  The purpose of this bill is to enable the Bale Grist  
          Mill State Historic Park to sell flour produced onsite by  
          granting a narrow exemption from existing registration  
          requirements for processed food and excluding the mill from the  
          definition of a food retail facility.  The Bale Grist Mill is a  
          historic water-driven mill that predates California's statehood  
          and is one of only two remaining water-wheel mills west of the  
          Mississippi River.  Under current law, grain that is milled at  
          the facility must be labeled unfit for human consumption prior  
          to being sold because it comes into contact with a wooden chute  
          and the grinding stone during the milling process.  The historic  
          status and construction of the mill prevents it from being  
          altered to comply with state standards for a modern food  
          processing or retail food facility.  However, according to the  
          author, all grain milled at the facility does meet applicable  
          federal food adulteration standards for cleanliness and public  
          safety.

          Originally selected for closure along with 69 other state parks,  
          the Bale Grist Mill State Historic Park is now operated through  
          a partnership between Napa County Regional Park and Open Space  
          District (District) and the Napa Valley State Parks Association,  
          which jointly entered into an operating agreement with the  
          Department of Parks and Recreation (DPR) to operate the park.   
          Allowing milled flour to be sold for human consumption will help  
          to generate revenues to assist in maintaining the park and  
          preserving this unique facility for future visitors.  According  
          to supporters of this bill, this endeavor is also responsive to  
          the Legislature's encouragement for DPR and its partners to be  
          creative and entrepreneurial in developing ways to enhance park  
          revenues while preserving the unique natural and historical  
          character of the parks.

          The author notes that AB 1616 (Gatto), Chapter 415, Statutes of  
          2012, provided similar small business exemptions from state  
          retail food facility requirements for certain types of cottage  
          food operations.  

          Supporters note this bill will make it possible for flour and  
          corn meal produced by the water-driven grist mill at Bale Grist  
          Mill State Historic Park to be sold for human consumption while  
          still meeting federal food standards.  Both this park and the  








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          nearby Bothe-Napa Valley State Park are being operated under a  
          local government operating agreement with DPR.  For the District  
          to be successful in operating the parks, they need to make the  
          two parks economically self-sufficient.  One potential source of  
          income is to sell the grain products that are milled as part of  
          the public demonstrations held every weekend.  These revenues in  
          turn will enable the District to keep the park open and continue  
          educating the public about early pioneer life.  By assisting  
          these parks in becoming more financially self-sufficient, this  
          bill may also assist the state in keeping other parks open to  
          the public.

          The state Department of Public Health opposed this bill last  
          year based on concerns over the inability of the facility to  
          exclude all pests from the facility, and concerns that the wood  
          surfaces in the historic mill which come in contact with dry  
          ingredients used in the milling of the flour cannot be  
          adequately cleaned to eliminate any potential contamination.   
          Current state law prohibits retail food facilities from using  
          wood as a food-contact surface.  


           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916)  
          319-2096


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