AB 1486: Milk products: licenses: fees.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-07-31
The Milk and Milk Products Act of 1947, regulates the production and sale of milk and specified related products in this state and requires various entities to obtain a permit from the Secretary of Food and Agriculture to engage in specified related business practices.
The act authorizes the secretary to issue a limited packaging permit to a semifrozen (soft-serve) milk products plant for on-premises manufacture and packaging of hard frozen dairy products or hard frozen dairy product novelties.
This bill would repeal that provision.
The act requires specified entities that manufacture hard frozen or semifrozen dairy products for the use of any patron, guest, or employee to obtain a limited manufacturing permit.
This bill would instead require those entities to obtain a limited frozen manufacturing permit, which would replace the limited manufacturing permit, as specified, and would extend this requirement to additional entities, hard frozen and semifrozen nondairy desserts, and patients.
The act requires that all market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, be pasteurized at the plant where processed and packaged, except as specified.
This bill would additionally except from that requirement licensed milk products plants that are used exclusively for the preparation of frozen yogurt, frozen dairy dessert, or frozen dessert, as specified, and frozen and semifrozen products sold through establishments issued the limited frozen manufacturing permit.
The act requires every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing ice cream, ice milk, sherbet, or any similar frozen product, of manufacturing, freezing, or processing imitation ice cream, imitation ice milk, or any similar frozen product, or of processing any other dairy product for which a license is required, to pay specified permit and license fees. Under the act, the fee for a semifrozen (soft-serve) milk products plant license is $225, and the fee for a limited manufacturing permit is $225.
This bill increase these fees to $325 and $600 respectively. The bill would also authorize the secretary to increase these and other specified fees by an amount no more than 3% per annum, not to exceed the reasonable costs of services provided.
A violation of the act is a misdemeanor, punishable by a fine of not less than $50 nor more than $1,000, or by imprisonment in the county jail for not less than 10 days nor more than 90 days, or both.
By extending the provisions of the act to additional entities and products, this bill would expand the scope of a crime and would thereby impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Milk and Milk Products Act of 1947, regulates the production and sale of milk and specified related products in this state and requires various entities to obtain a permit from the Secretary of Food and Agriculture to engage in specified related business practices.
The act authorizes the secretary to issue a limited packaging permit to a semifrozen (soft-serve) milk products plant for on-premises manufacture and packaging of hard frozen dairy products or hard frozen dairy product novelties.
This bill would repeal that provision.
The act requires specified entities that manufacture hard frozen or semifrozen dairy products for the use of any patron, guest, or employee to obtain a limited manufacturing permit.
This bill would instead require those entities to obtain a limited frozen manufacturing permit, which would replace the limited manufacturing permit, as specified, and would extend this requirement to additional entities, hard frozen and semifrozen nondairy desserts, and patients.
The act requires that all market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, be pasteurized at the plant where processed and packaged, except as specified.
This bill would additionally except from that requirement licensed milk products plants that are used exclusively for the preparation of frozen yogurt, frozen dairy dessert, or frozen dessert, as specified, and frozen and semifrozen products sold through establishments issued the limited frozen manufacturing permit.
The act requires every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing ice cream, ice milk, sherbet, or any similar frozen product, of manufacturing, freezing, or processing imitation ice cream, imitation ice milk, or any similar frozen product, or of processing any other dairy product for which a license is required, to pay specified permit and license fees. Under the act, the fee for a semifrozen (soft-serve) milk products plant license is $225, and the fee for a limited manufacturing permit is $225.
This bill increase these fees to $325 and $600 respectively. The bill would also authorize the secretary to increase these and other specified fees by an amount no more than 3% per annum, not to exceed the reasonable costs of services provided.
A violation of the act is a misdemeanor, punishable by a fine of not less than $50 nor more than $1,000, or by imprisonment in the county jail for not less than 10 days nor more than 90 days, or both.
By extending the provisions of the act to additional entities and products, this bill would expand the scope of a crime and would thereby impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Milk and Milk Products Act of 1947, regulates the production and sale of milk and specified related products in this state and requires various entities to obtain a permit from the Secretary of Food and Agriculture to engage in specified related business practices.
Existing law authorizes the secretary to issue a limited packaging permit to a semifrozen (soft-serve) milk products plant for on-premises manufacture and packaging of hard frozen dairy products or hard frozen dairy product novelties.
This bill would repeal that provision.
The act requires specified entities that manufacture hard frozen or semifrozen dairy products for the use of any patron, guest, or employee to obtain a limited manufacturing permit.
This bill would instead require those entities to obtain a limited frozen manufacturing permit, which would replace the limited manufacturing permit, as specified, and would extend this requirement to additional entities, hard frozen and semifrozen nondairy desserts, and patients.
The act requires that all market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, be pasteurized at the plant where processed and packaged, except as specified.
This bill would additionally except from that requirement licensed milk products plants that are used exclusively for the preparation of frozen yogurt, frozen dairy dessert, or frozen dessert, as specified, and frozen and semifrozen products sold through establishments issued the limited frozen manufacturing permit.
The act requires every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing ice cream, ice milk, sherbet, or any similar frozen product, of manufacturing, freezing, or processing imitation ice cream, imitation ice milk, or any similar frozen product, or of processing any other dairy product for which a license is required, to pay specified permit and license fees. Under the act, the fee for a semifrozen (soft-serve) milk products plant license is $225, and the fee for a limited manufacturing permit is $225.
This bill increase these fees to $325 and $600 respectively. The bill would also authorize the secretary to increase these and other specified fees by an amount no more than 3% per annum, not to exceed the reasonable costs of services provided.
A violation of the act is a misdemeanor, punishable by a fine of not less than $50 nor more than $1,000, or by imprisonment in the county jail for not less than 10 days nor more than 90 days, or both.
By extending the provisions of the act to additional entities and products, this bill would expand the scope of a crime and would thereby impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)(1)Sections 33701, 33731, 33732, 33733, 33734, 33767, 33768, 33770, 33771, 33776, and 34593 do not apply to the manufacture of ice cream that is manufactured from ice cream mix, to frozen dairy dessert that is manufactured from frozen dairy dessert mix, to frozen dessert that is manufactured from frozen dessert mix, to frozen yogurt that is manufactured from frozen yogurt mix, or to nondairy frozen dessert that is manufactured from nondairy frozen dessert mix, if those products are manufactured in a freezing device from which those products are served directly in a semifrozen state, without packaging of any type, for consumption on the premises in or from rooms where food is served to the public.
(2)Except for nondairy frozen dessert mix, all mixes shall be secured from a licensed manufacturer of milk products.
(3)Ice cream mix, frozen yogurt mix, frozen dairy dessert mix, frozen dessert mix, and nondairy frozen dessert mix shall be manufactured into a semifrozen state without adulteration and freezing device salvage shall not be reused as a mix.
(b)Nondairy frozen dessert mix shall be obtained from manufacturers licensed pursuant to Sections 38931 and 38934. Any dry or condensed mix to be reconstituted into freezable form shall be reconstituted on the premises in containers or equipment that meet the requirements of Sections 33763, 33764, 33765, and 33766. Any water used for reconstitution shall be treated in a manner to ensure a quality equal to potable pasteurized water. Upon reconstitution, the product shall be poured directly into the freezing unit or refrigerated at a temperature not to exceed 45 degrees Fahrenheit, and so maintained until frozen, or both.
(c)Where any retail establishment manufactures two or more of the products provided for under this section, each of those products shall be processed in a separate freezing device, and that freezing device shall be clearly identified as to the product being manufactured therein.
(d)The secretary may, by agreement with any approved milk inspection service, authorize the service to inspect and enforce requirements of this code applicable to the establishments covered by this section. Any agreement shall provide that the approved inspection service shall collect the applicable license fee for those establishments as provided in Sections 35221 and 38933. The fees collected shall be retained by the approved service to cover its cost of enforcement, but 15 percent of the fees collected shall be remitted to the secretary to cover the cost of administration.
SEC. 2.Section 34008 of the Food and Agricultural Code is amended to read:34008.(a)All market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, shall be pasteurized at the plant where processed and packaged unless otherwise provided in this division.
(b)This section does not apply to any of the following:
(1)Licensed milk products plants that are used exclusively for the preparation of ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert that is manufactured on the premises from ice cream mix, frozen yogurt mix, frozen dairy dessert mix, or frozen dessert mix that is supplied by a licensed milk products plant.
(2)Products sold through soft-serve establishments pursuant to Section 33704, including frozen yogurts and frozen dairy desserts.
(3)Frozen and semifrozen products sold through establishments issued a limited frozen manufacturing permit pursuant to Section 35016.
(4)Goat milk cheese produced at a licensed milk products plant, excluding cottage cheese, manufactured from curds, provided the curds were made only from goat milk that has been pasteurized, ultrapasteurized, or aseptically processed, as defined in Sections 34001, 34001.5, and 39701, respectively, at either of the following:
(A)A licensed milk products plant.
(B)A milk products plant that meets sanitation requirements substantially similar to those established by Article 3 (commencing with Section 33761) of Chapter 6, and that is registered as a food facility with the United States Food and Drug Administration in accordance with the federal Food, Drug, and Cosmetics Act (21 U.S.C. Sec. 350d).
(c)The secretary may, by regulation, provide for additional exemptions from this section.
SEC. 3.Section 35016 of the Food and Agricultural Code is amended to read:35016.(a)Except as provided in subdivision (b), any hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency that manufactures a product of milk for the use of, or purchase by, any patron, guest, patient, or employee shall obtain a milk products plant license.
(b)(1)Any hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency that manufactures hard frozen or semifrozen dairy products, or hard frozen or semifrozen nondairy desserts, for the use of, or purchase by, any patron, guest, patient, or employee shall obtain a limited frozen manufacturing permit from the secretary.
(2)The permit may be issued only after the secretary determines that the facility is suitable for manufacturing those products.
(3)A permit issued pursuant to this subdivision may be renewed annually, if the facility is found by the secretary, based on an onsite evaluation, to be in compliance with the conditions specified in subdivision (c).
(c)A hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency issued a limited frozen manufacturing permit pursuant to this section shall meet all of the following standards:
(1)The hard frozen and semifrozen products manufactured shall only be sold directly to purchasers on the premises of the permitted facility for the purpose of consumption. No hard frozen or semifrozen product manufactured pursuant to the limited frozen manufacturing permit shall be sold for wholesale or resale.
(2)All dairy ingredients used in the manufacture of hard frozen and semifrozen products shall have been prepasteurized at a licensed milk products plant. The receiving, processing, use, or handling of raw dairy ingredients is not permitted in a facility issued a limited frozen manufacturing permit.
(3)Adequate facilities, consistent with recognized good manufacturing practices for the manufacture of hard frozen and semifrozen dairy products, as determined by the secretary, shall be provided as a condition of the limited frozen manufacturing permit. The facilities shall include, but not be limited to, adequate utensil and container washing, sanitization and storage, and sufficient sanitary work areas, including handwashing facilities, dedicated to the manufacture of hard frozen and semifrozen dairy products or hard frozen and semifrozen nondairy desserts. Sanitation standards consistent with good manufacturing and handling practices for retail food establishments in conformance with Part 117 (commencing with Section 117.1) of Title 21 of the Code of Federal Regulations shall be utilized by the secretary as a condition for issuance and renewal of the limited frozen manufacturing permit.
(4)The hotel, restaurant, boardinghouse, hospital, or other concern or agency shall not manufacture more than 7,500 gallons of hard frozen or semifrozen dairy products and hard frozen and semifrozen nondairy desserts during any year. Records documenting the volume of production of these hard frozen and semifrozen products manufactured during the preceding 12-month period shall be maintained at a facility issued a limited frozen manufacturing permit and shall be available for inspection by the secretary.
(5)Hard frozen dairy products or nondairy frozen desserts manufactured at a facility issued a limited frozen manufacturing permit may be packaged exclusively for sale on the premises to patrons and guests. Packaging of frozen or semifrozen products for purposes of wholesale, resale, or for sale off the premises of the facility is prohibited. All packaged products shall be labeled with the manufacturers name, address and limited frozen manufacturing permit number and comply with all applicable food labeling provisions of state and federal law.
SEC. 4.Section 35221 of the Food and Agricultural Code is amended to read:35221.(a)Every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing ice cream, ice milk, sherbet, or any similar frozen product, of manufacturing, freezing, or processing imitation ice cream, imitation ice milk, or any similar frozen product, or of processing any other dairy product for which a license is required, shall pay the following fees:
(1)For a license for all frozen milk products and all imitation frozen milk products, one hundred dollars ($100) for the calendar year for which the license is issued. The fee for the renewal of this license is one hundred dollars ($100), plus one dollar ($1) for each additional 10,000 gallons or fraction of 10,000 gallons over and above 20,000 gallons that were manufactured during the preceding year, ending December 31.
(2)For a semifrozen (soft-serve) milk products plant license issued to persons making application under Section 33704, three hundred twenty-five dollars ($325) for the calendar year for which the semifrozen (soft-serve) milk products plant license is issued. The fee for the renewal of this license is three hundred twenty-five dollars ($325).
(3)For a limited frozen manufacturing permit issued to a hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency pursuant to Section 35016, six hundred dollars ($600) for the initial permit. The fee for the annual renewal of this permit shall be six hundred dollars ($600).
(4)For a person, except a hospital or sanitarium, that is engaged in the business of manufacturing any diabetic or dietetic frozen milk product or mix, one hundred dollars ($100) for the calendar year for which a diabetic or dietetic frozen milk products license is issued. The fee for the renewal of this license is one hundred dollars ($100).
(5)For any other product for which a license is required, one hundred dollars ($100) for the calendar year for which the license is issued. The fee for the renewal of this license is one hundred dollars ($100), plus one dollar ($1) for each additional 10,000 pounds or fraction of 10,000 pounds over and above the first 100,000 pounds, of milk fat that was purchased or received during the preceding year, ending December 31.
(b)The license and permit fees required by this section shall be prorated on a quarterly basis for any licensee or permittee that commences operations after the first quarter in any calendar year, regardless of whether or not the milk products plant was licensed or permitted during the preceding calendar year.
(c)Notwithstanding the license and permit fees specified in this section, the secretary may increase the fees by an amount no more than 3 percent per annum, not to exceed the reasonable costs of services provided.
SEC. 5.Section 36806 of the Food and Agricultural Code is amended to read:36806.Ice cream mix, frozen yogurt mix, frozen dairy dessert mix, and frozen dessert mix are unfrozen products that are used in the manufacture of ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert. They shall have been pasteurized and comply with all the requirements for ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert, respectively.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)(1)Sections 33701, 33731, 33732, 33733, 33734, 33767, 33768, 33770, 33771, 33776, and 34593 do not apply to the manufacture of ice cream that is manufactured from ice cream mix, to frozen dairy dessert that is manufactured from frozen dairy dessert mix, to frozen dessert that is manufactured from frozen dessert mix, to frozen yogurt that is manufactured from frozen yogurt mix, or to nondairy frozen dessert that is manufactured from nondairy frozen dessert mix, if those products are manufactured in a freezing device from which those products are served directly in a semifrozen state, without packaging of any type, for consumption on the premises in or from rooms where food is served to the public.
(2)Except for nondairy frozen dessert mix, all mixes shall be secured from a licensed manufacturer of milk products.
(3)Ice cream mix, frozen yogurt mix, frozen dairy dessert mix, frozen dessert mix, and nondairy frozen dessert mix shall be manufactured into a semifrozen state without adulteration and freezing device salvage shall not be reused as a mix.
(b)Nondairy frozen dessert mix shall be obtained from manufacturers licensed pursuant to Sections 38931 and 38934. Any dry or condensed mix to be reconstituted into freezable form shall be reconstituted on the premises in containers or equipment that meet the requirements of Sections 33763, 33764, 33765, and 33766. Any water used for reconstitution shall be treated in a manner to ensure a quality equal to potable pasteurized water. Upon reconstitution, the product shall be poured directly into the freezing unit or refrigerated at a temperature not to exceed 45 degrees Fahrenheit, and so maintained until frozen, or both.
(c)Where any retail establishment manufactures two or more of the products provided for under this section, each of those products shall be processed in a separate freezing device, and that freezing device shall be clearly identified as to the product being manufactured therein.
(d)The secretary may, by agreement with any approved milk inspection service, authorize the service to inspect and enforce requirements of this code applicable to the establishments covered by this section. Any agreement shall provide that the approved inspection service shall collect the applicable license fee for those establishments as provided in Sections 35221 and 38933. The fees collected shall be retained by the approved service to cover its cost of enforcement, but 15 percent of the fees collected shall be remitted to the secretary to cover the cost of administration.
SEC. 2.Section 34008 of the Food and Agricultural Code is amended to read:34008.(a)All market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, shall be pasteurized at the plant where processed and packaged unless otherwise provided in this division.
(b)This section does not apply to any of the following:
(1)Licensed milk products plants that are used exclusively for the preparation of ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert that is manufactured on the premises from ice cream mix, frozen yogurt mix, frozen dairy dessert mix, or frozen dessert mix that is supplied by a licensed milk products plant.
(2)Products sold through soft-serve establishments pursuant to Section 33704, including frozen yogurts and frozen dairy desserts.
(3)Frozen and semifrozen products sold through establishments issued a limited frozen manufacturing permit pursuant to Section 35016.
(4)Goat milk cheese produced at a licensed milk products plant, excluding cottage cheese, manufactured from curds, provided the curds were made only from goat milk that has been pasteurized, ultrapasteurized, or aseptically processed, as defined in Sections 34001, 34001.5, and 39701, respectively, at either of the following:
(A)A licensed milk products plant.
(B)A milk products plant that meets sanitation requirements substantially similar to those established by Article 3 (commencing with Section 33761) of Chapter 6, and that is registered as a food facility with the United States Food and Drug Administration in accordance with the federal Food, Drug, and Cosmetics Act (21 U.S.C. Sec. 350d).
(c)The secretary may, by regulation, provide for additional exemptions from this section.
SEC. 3.Section 35016 of the Food and Agricultural Code is amended to read:35016.(a)Except as provided in subdivision (b), any hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency that manufactures a product of milk for the use of, or purchase by, any patron, guest, patient, or employee shall obtain a milk products plant license.
(b)(1)Any hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency that manufactures hard frozen or semifrozen dairy products, or hard frozen or semifrozen nondairy desserts, for the use of, or purchase by, any patron, guest, patient, or employee shall obtain a limited frozen manufacturing permit from the secretary.
(2)The permit may be issued only after the secretary determines that the facility is suitable for manufacturing those products.
(3)A permit issued pursuant to this subdivision may be renewed annually, if the facility is found by the secretary, based on an onsite evaluation, to be in compliance with the conditions specified in subdivision (c).
(c)A hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency issued a limited frozen manufacturing permit pursuant to this section shall meet all of the following standards:
(1)The hard frozen and semifrozen products manufactured shall only be sold directly to purchasers on the premises of the permitted facility for the purpose of consumption. No hard frozen or semifrozen product manufactured pursuant to the limited frozen manufacturing permit shall be sold for wholesale or resale.
(2)All dairy ingredients used in the manufacture of hard frozen and semifrozen products shall have been prepasteurized at a licensed milk products plant. The receiving, processing, use, or handling of raw dairy ingredients is not permitted in a facility issued a limited frozen manufacturing permit.
(3)Adequate facilities, consistent with recognized good manufacturing practices for the manufacture of hard frozen and semifrozen dairy products, as determined by the secretary, shall be provided as a condition of the limited frozen manufacturing permit. The facilities shall include, but not be limited to, adequate utensil and container washing, sanitization and storage, and sufficient sanitary work areas, including handwashing facilities, dedicated to the manufacture of hard frozen and semifrozen dairy products or hard frozen and semifrozen nondairy desserts. Sanitation standards consistent with good manufacturing and handling practices for retail food establishments in conformance with Part 117 (commencing with Section 117.1) of Title 21 of the Code of Federal Regulations shall be utilized by the secretary as a condition for issuance and renewal of the limited frozen manufacturing permit.
(4)The hotel, restaurant, boardinghouse, hospital, or other concern or agency shall not manufacture more than 7,500 gallons of hard frozen or semifrozen dairy products and hard frozen and semifrozen nondairy desserts during any year. Records documenting the volume of production of these hard frozen and semifrozen products manufactured during the preceding 12-month period shall be maintained at a facility issued a limited frozen manufacturing permit and shall be available for inspection by the secretary.
(5)Hard frozen dairy products or nondairy frozen desserts manufactured at a facility issued a limited frozen manufacturing permit may be packaged exclusively for sale on the premises to patrons and guests. Packaging of frozen or semifrozen products for purposes of wholesale, resale, or for sale off the premises of the facility is prohibited. All packaged products shall be labeled with the manufacturers name, address and limited frozen manufacturing permit number and comply with all applicable food labeling provisions of state and federal law.
SEC. 4.Section 35221 of the Food and Agricultural Code is amended to read:35221.(a)Every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing ice cream, ice milk, sherbet, or any similar frozen product, of manufacturing, freezing, or processing imitation ice cream, imitation ice milk, or any similar frozen product, or of processing any other dairy product for which a license is required, shall pay the following fees:
(1)For a license for all frozen milk products and all imitation frozen milk products, one hundred dollars ($100) for the calendar year for which the license is issued. The fee for the renewal of this license is one hundred dollars ($100), plus one dollar ($1) for each additional 10,000 gallons or fraction of 10,000 gallons over and above 20,000 gallons that were manufactured during the preceding year, ending December 31.
(2)For a semifrozen (soft-serve) milk products plant license issued to persons making application under Section 33704, three hundred twenty-five dollars ($325) for the calendar year for which the semifrozen (soft-serve) milk products plant license is issued. The fee for the renewal of this license is three hundred twenty-five dollars ($325).
(3)For a limited frozen manufacturing permit issued to a hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency pursuant to Section 35016, six hundred dollars ($600) for the initial permit. The fee for the annual renewal of this permit shall be six hundred dollars ($600).
(4)For a person, except a hospital or sanitarium, that is engaged in the business of manufacturing any diabetic or dietetic frozen milk product or mix, one hundred dollars ($100) for the calendar year for which a diabetic or dietetic frozen milk products license is issued. The fee for the renewal of this license is one hundred dollars ($100).
(5)For any other product for which a license is required, one hundred dollars ($100) for the calendar year for which the license is issued. The fee for the renewal of this license is one hundred dollars ($100), plus one dollar ($1) for each additional 10,000 pounds or fraction of 10,000 pounds over and above the first 100,000 pounds, of milk fat that was purchased or received during the preceding year, ending December 31.
(b)The license and permit fees required by this section shall be prorated on a quarterly basis for any licensee or permittee that commences operations after the first quarter in any calendar year, regardless of whether or not the milk products plant was licensed or permitted during the preceding calendar year.
(c)Notwithstanding the license and permit fees specified in this section, the secretary may increase the fees by an amount no more than 3 percent per annum, not to exceed the reasonable costs of services provided.
SEC. 5.Section 36806 of the Food and Agricultural Code is amended to read:36806.Ice cream mix, frozen yogurt mix, frozen dairy dessert mix, and frozen dessert mix are unfrozen products that are used in the manufacture of ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert. They shall have been pasteurized and comply with all the requirements for ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert, respectively.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)(1)Sections 33701, 33731, 33732, 33733, 33734, 33767, 33768, 33770, 33771, 33776, and 34593 do not apply to the manufacture of ice cream that is manufactured from ice cream mix, to frozen dairy dessert that is manufactured from frozen dairy dessert mix, to frozen dessert that is manufactured from frozen dessert mix, to frozen yogurt that is manufactured from frozen yogurt mix, or to nondairy frozen dessert that is manufactured from nondairy frozen dessert mix, if those products are manufactured in a freezing device from which those products are served directly in a semifrozen state, without packaging of any type, for consumption on the premises in or from rooms where food is served to the public.
(2)Except for nondairy frozen dessert mix, all mixes shall be secured from a licensed manufacturer of milk products.
(3)Ice cream mix, frozen yogurt mix, frozen dairy dessert mix, frozen dessert mix, and nondairy frozen dessert mix shall be manufactured into a semifrozen state without adulteration and freezing device salvage shall not be reused as a mix.
(b)A limited packaging permit may be issued by the secretary to a semifrozen (soft-serve) milk products plant for on-premises manufacture and packaging of hard frozen dairy products or hard frozen dairy product novelties. The permit may only be issued after the suitability of the facility for manufacture and packaging has been determined by the secretary. An annual onsite evaluation of compliance with the specific permit conditions shall be completed by the secretary before renewal of the limited packaging permit. A semifrozen milk products plant issued a limited packaging permit shall meet all of the following standards:(1)The hard frozen products shall only be sold to purchasers for consumption. No hard frozen product manufactured pursuant to the limited packaging permit shall be sold for resale.(2)All frozen dairy product mixes used for the manufacture and packaging of hard frozen dairy product novelties shall be dispensed from single service containers sealed at the licensed milk products plant where processed and pasteurized. Reconstitution of dry mix or condensed mix is prohibited at a semifrozen milk products plant issued a limited packaging permit.(3)Adequate facilities, consistent with recognized good manufacturing practices for the production and packaging of hard frozen dairy products, as determined by the secretary, shall be provided as a condition of the limited packaging permit. The facilities shall include, but are not limited to, adequate utensil and novelty mold washing, sterilization and storage, and sufficient sanitary work area, including handwashing facilities, dedicated to the manufacture and packaging of hard frozen dairy product novelties. Sanitation guidelines consistent with good manufacturing and handling practices for retail food establishments manufacturing and packaging hard frozen dairy products in conformance with Part 110 (commencing with Section 110.3) of Title 21 of the Code of Federal Regulations shall be utilized by the secretary as a condition for issuance and renewal of the limited packaging permit.(4)Each individually packaged hard frozen novelty shall be labeled with the name of the product and the name and address of the manufacturer.(c)(b)Nondairy frozen dessert mix shall be obtained from manufacturers licensed pursuant to Sections 38931 and 38934. Any dry or condensed mix to be reconstituted into freezable form shall be reconstituted on the premises in containers or equipment that meet the requirements of Sections 33763, 33764, 33765, and 33766. Any water used for reconstitution shall be treated in a manner to ensure a quality equal to potable pasteurized water. Upon reconstitution, the product shall be poured directly into the freezing unit or refrigerated at a temperature not to exceed 45 degrees Fahrenheit, and so maintained until frozen, or both.
(d)(c)Where any retail establishment manufactures two or more of the products provided for under this section, each of those products shall be processed in a separate freezing device, and that freezing device shall be clearly identified as to the product being manufactured therein.
(e)(d)The secretary may, by agreement with any approved milk inspection service, authorize the service to inspect and enforce requirements of this code applicable to the establishments covered by this section. Any agreement shall provide that the approved inspection service shall collect the applicable license fee for those establishments as provided in Sections 35221 and 38933. The fees collected shall be retained by the approved service to cover its cost of enforcement, but 15 percent of the fees collected shall be remitted to the secretary to cover the cost of administration.
SEC. 2.Section 34008 of the Food and Agricultural Code is amended to read:34008.(a)All market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, shall be pasteurized at the plant where processed and packaged unless otherwise provided in this division.
(b)This section does not apply to any of the following:
(1)Licensed milk products plants that are used exclusively for the preparation of ice cream cream, frozen yogurt, frozen dairy dessert, or ice milk frozen dessert that is manufactured on the premises from ice cream mix, ice milk mix, frozen yogurt mix, frozen dairy dessert mix, or premix frozen dessert mix that is supplied by a licensed milk products plant.
(2)Products sold through soft-serve establishments, establishments pursuant to Section 33704, including frozen yogurts and frozen dairy desserts.
(3)Frozen and semifrozen products sold through establishments issued a limited frozen manufacturing permit pursuant to Section 35016.
(3)(4)Goat milk cheese produced at a licensed milk products plant, excluding cottage cheese, manufactured from curds, provided the curds were made only from goat milk that has been pasteurized, ultrapasteurized, or aseptically processed, as defined in Sections 34001, 34001.5, and 39701, respectively, at either of the following:
(A)A licensed milk products plant.
(B)A milk products plant that meets sanitation requirements substantially similar to those established by Article 3 (commencing with Section 33761) of Chapter 6, and that is registered as a food facility with the United States Food and Drug Administration in accordance with the federal Food, Drug, and Cosmetics Act (21 U.S.C. Sec. 350d).
(c)The secretary may, by regulation, provide for additional exemptions from this section.
SEC. 3.Section 35016 of the Food and Agricultural Code is amended to read:35016.(a)Except as provided in subdivision (b), any hotel, restaurant, food facility, boardinghouse, hospital, or other concern or agency that manufactures a product of milk for the use of of, or purchase by, any patron, guest, patient, or employee shall obtain a milk products plant license.
(b)(1)Any hotel, restaurant, or boardinghouse food facility, boardinghouse, hospital, or other concern or agency that manufactures hard frozen or semifrozen dairy products products, or hard frozen or semifrozen nondairy desserts, for the use of of, or purchase by, any patron, guest, patient, or employee shall obtain a limited frozen manufacturing permit from the secretary.
(2)The permit may be issued only after the secretary determines that the facility is suitable for manufacturing those products.
(3)A permit issued pursuant to this subdivision may be renewed annually, if the facility is found by the secretary, based on an onsite evaluation, to be in compliance with the conditions specified in paragraph (3) of subdivision (c).
(c)A hotel, restaurant, or boardinghouse food facility, boardinghouse, hospital, or other concern or agency issued a limited frozen manufacturing permit pursuant to this section shall meet all of the following standards:
(1)The hard frozen and semifrozen dairy products manufactured shall only be sold only directly to purchasers on the premises of the permitted facility for the purpose of consumption. No hard frozen or semifrozen product manufactured pursuant to the limited frozen manufacturing permit shall be sold for wholesale or resale.
(2)The All dairy ingredients used in the manufacture of hard frozen and semifrozen dairy products shall be manufactured using have been prepasteurized dairy ingredients. at a licensed milk products plant. The receiving, processing, use, or handling of raw dairy ingredients is not permitted in a facility issued a limited frozen manufacturing permit.
(3)Adequate facilities, consistent with recognized good manufacturing practices for the manufacture of hard frozen and semifrozen dairy products, as determined by the secretary, shall be provided as a condition of the limited frozen manufacturing permit. The facilities shall include, but not be limited to, adequate utensil and container washing, sterilization sanitization and storage, and sufficient sanitary work areas, including handwashing facilities, dedicated to the manufacture of hard frozen and semifrozen dairy products. products or hard frozen and semifrozen nondairy desserts. Sanitation guidelines standards consistent with good manufacturing and handling practices for retail food establishments manufacturing hard frozen and semifrozen dairy products in conformance with Part 110 117 (commencing with Section 110.3) 117.1) of Title 21 of the Code of Federal Regulations shall be utilized by the secretary as a condition for issuance and renewal of the limited frozen manufacturing permit.
(4)The hotel, restaurant, or boardinghouse boardinghouse, hospital, or other concern or agency shall not manufacture more than 2,500 7,500 gallons of hard frozen or semifrozen dairy products and hard frozen and semifrozen nondairy desserts during any year. Records documenting the volume of production of these hard frozen and semifrozen products manufactured during the preceding 12-month period shall be maintained at a facility issued a limited frozen manufacturing permit and shall be available for inspection by the secretary.
(5)The secretary, by agreement with any approved milk inspection service, may authorize the service to inspect and enforce the requirements of this code applicable to the facility covered by this section. Any agreement shall provide that the approved inspection service shall collect the applicable fees for those establishments as provided in Sections 35221 and 38933. The fees so collected shall be retained by the approved inspection service to cover its cost of inspection and enforcement, but 15 percent of the fees collected shall be remitted by the approved inspection service to the secretary to cover the cost of administration.(5)Hard frozen dairy products or nondairy frozen desserts manufactured at a facility issued a limited frozen manufacturing permit may be packaged exclusively for sale on the premises to patrons and guests. Packaging of frozen or semifrozen products for purposes of wholesale, resale, or for sale off the premises of the facility is prohibited. All packaged products shall be labeled with the manufacturers name, address and limited frozen manufacturing permit number and comply with all applicable food labeling provisions of state and federal law.
SEC. 4.Section 35221 of the Food and Agricultural Code is amended to read:35221.(a)Every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing ice cream, ice milk, sherbet, or any similar frozen product, of manufacturing, freezing, or processing imitation ice cream, imitation ice milk, or any similar frozen product, or of processing any other dairy product for which a license is required, shall pay the following fees:
(1)For a license for all frozen milk products and all imitation frozen milk products, one hundred dollars ($100) for the calendar year for which the license is issued. The fee for the renewal of this license is one hundred dollars ($100), plus one dollar ($1) for each additional 10,000 gallons or fraction of 10,000 gallons over and above 20,000 gallons that were manufactured during the preceding year, ending December 31.
(2)For a semifrozen (soft-serve) milk products plant license issued to persons making application under Section 33704, two three hundred twenty-five dollars ($225) ($325) for the calendar year for which the semifrozen (soft-serve) milk products plant license is issued. The fee for the renewal of this license is two three hundred twenty-five dollars ($225). ($325).
(3)For a limited packaging permit issued to a licensed semifrozen (soft-serve) milk products plant making application under subdivision (b) of Section 33704, three hundred dollars ($300) for issuance of the initial permit. The fee for the annual renewal of this permit is one hundred fifty dollars ($150).(4)(3)For a limited frozen manufacturing permit issued to a hotel, restaurant, or boardinghouse food facility, boardinghouse, hospital, or other concern or agency pursuant to Section 35016, two six hundred twenty-five dollars ($225) ($600) for the initial permit. The fee for the annual renewal of this permit shall be two six hundred twenty-five dollars ($225). ($600).
(5)(4)For a person, except a hospital or sanitarium, that is engaged in the business of manufacturing any diabetic or dietetic frozen milk product or mix, one hundred dollars ($100) for the calendar year for which a diabetic or dietetic frozen milk products license is issued. The fee for the renewal of this license is one hundred dollars ($100).
(6)(5)For any other product for which a license is required, one hundred dollars ($100) for the calendar year for which the license is issued. The fee for the renewal of this license is one hundred dollars ($100), plus one dollar ($1) for each additional 10,000 pounds or fraction of 10,000 pounds over and above the first 100,000 pounds, of milk fat that was purchased or received during the preceding year, ending December 31.
(b)The license and permit fees required by this section shall be prorated on a quarterly basis for any licensee or permittee that commences operations after the first quarter in any calendar year, regardless of whether or not the milk products plant was licensed or permitted during the preceding calendar year.
(c)Notwithstanding the license and permit fees specified in this section, the secretary may increase the fees by an amount no more than 3 percent per annum, not to exceed the reasonable costs of services provided.
SEC. 5.Section 36806 of the Food and Agricultural Code is amended to read:36806.Ice cream mix, frozen yogurt mix, frozen dairy dessert mix, and frozen dessert mix are unfrozen products that are used in the manufacture of ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert. They shall have been pasteurized and comply with all the requirements for ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert, respectively.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| Jul 31, 2017 | Chaptered by Secretary of State - Chapter 153, Statutes of 2017. |
| Jul 31, 2017 | Approved by the Governor. |
| Jul 21, 2017 | Enrolled and presented to the Governor at 4 p.m. |
| Jul 17, 2017 | In Assembly. Ordered to Engrossing and Enrolling. |
| Jul 17, 2017 | Read third time. Passed. Ordered to the Assembly. |
| Jun 27, 2017 | Read second time. Ordered to third reading. |
| Jun 26, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jun 6, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 6). Re-referred to Com. on APPR. |
| May 18, 2017 | Referred to Com. on AGRI. |
| May 4, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 4, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 0. Page 1378.) |
| Apr 27, 2017 | Read second time. Ordered to third reading. |
| Apr 26, 2017 | From committee: Do pass. (Ayes 16. Noes 0.) (April 26). |
| Apr 6, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 5). Re-referred to Com. on APPR. |
| Mar 16, 2017 | Referred to Com. on AGRI. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 17, 2017 | Quorum | Senate Floor |
Passed |
|
| Jun 6, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Agriculture |
Passed |
|
| May 4, 2017 | AB 1486 CABALLERO Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 26, 2017 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 5, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Agriculture |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Dairy Institute Of California | ** Support | Jun 27, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1486
:
SENATE AGRICULTURE COMMITTEE: 4-0, 6/6/17
AYES: Galgiani, Wilk, Berryhill, Pan
NO VOTE RECORDED: Dodd
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 71-0, 5/4/17 - See last page for vote
DIGEST:
This bill consolidates milk products plant permits, increases license and permit fees, and updates food safety laws in regards to the manufacture and sale of frozen and soft-serve dairy and nondairy products.
Existing law:
- Requires that all milk and milk products be pasteurized, processed, and packaged at a single site unless otherwise exempted by law or by regulations as determined by the secretary of the California Department of Food and Agriculture (CDFA) (Food and Agricultural Code § 34008).
- Exempts from the specified requirement licensed milk products plants that are used exclusively for the production of ice cream manufactured from a mix or premix that is supplied by a separate licensed milk products plant. Products sold through soft-serve establishments are also exempt.
- Requires milk products plants to obtain a license and pay an annual fee based on the number of gallons of product manufactured.
- Establishes a milk products plant license and renewal fee of $225 for soft-serve milk products plants.
- Authorizes CDFA to issue a limited packaging permit to a soft-serve milk products plant for on-site manufacture and packaging of hard frozen dairy products, under specified conditions. Prohibits the reconstitution of mix at a soft-serve milk products plant. The initial permit fee is $300, and the annual renewal fee is $150 (Food and Agricultural Code § 33704 and 35221).
- Requires that any hotel, restaurant, or boardinghouse that manufactures hard frozen or soft-serve products shall obtain a limited manufacturing permit (up to 2,500 gallons per year) from CDFA. The product shall be for immediate consumption and not sold for resale. The annual permit fee is $225.
This bill:
- Combines the limited packaging permit and the limited manufacturing permit into a new limited frozen manufacturing permit and raises the annual renewal fee from $225 to $600.
- Raises the milk products plant license and annual renewal fee from $225 to $325.
- Authorizes the secretary of CDFA to raise these fees by no more than 3% per year, not to exceed the reasonable costs of services provided.
- Adds frozen and soft-serve products sold through an establishment with a limited frozen manufacturing permit to the exemption that milk products be pasteurized, processed, and packaged at the same plant. Also exempts soft-serve products manufactured at one licensed milk products plant using a soft-serve mix supplied by another licensed milk products plant from these requirements.
- Adds food facilities, hospitals, and other agencies to the list of entities that are required to obtain a limited frozen manufacturing permit from CDFA for the manufacture of hard frozen or soft-serve dairy products. Requires all of these entities to only sell product directly to purchasers on-site and not for wholesale.
- Raises to 7,500 gallons per year the maximum manufacturing limit for entities with a limited frozen manufacturing permit and requires records documenting the volume of production to be kept for 12 months and made available for inspection by CDFA.
- Prohibits a facility with a limited frozen manufacturing permit from receiving, processing, using, or handling raw dairy ingredients. Requires all dairy ingredients used to manufacture hard frozen or soft-serve products to be pasteurized at a licensed milk products plant.
- Authorizes hard frozen dairy products of nondairy frozen desserts manufactured at a facility issued a limited frozen manufacturing permit to be packaged for sale on-site but prohibits wholesale or resale.
- Repeals the authority of the secretary of CDFA to authorize an approved milk inspection service to collect fees, enforce requirements, and inspect entities that have obtained a limited manufacturing permit.
Background
The CDFA Milk and Dairy Food Safety Branch (MDFS) is responsible for ensuring that California milk products are safe, wholesome, meet composition requirements (i.e. fat and protein), do not exceed microbial limits, and are properly labeled. MDFS achieves these goals by inspecting dairy farms and processing plants and by testing milk and milk products to ensure quality and consumer safety.
Milk products plants are required to obtain licenses and permits that vary depending on the type of business and what milk product is made. The licenses and permits ensure that the facilities are inspected and adhere to food safety/sanitation requirements and manufacturing and distribution regulations. Specific to frozen desserts, CDFA issues four types of milk products plant licenses/permits:
- Frozen milk products plant license
- Semifrozen (soft-serve) milk products plant license
- Limited packaging permit
- Limited manufacturing permit
The entities obtaining these licenses and permits range from fully integrated plants that receive and pasteurize raw milk and process it into frozen desserts packaged for wholesale distribution, to small retail food facilities that only sell soft-serve made from a complete prepasteurized mix to customers for immediate consumption on-site. The limited manufacturing permit allows entities such as restaurants to make original-recipe ice cream using prepasteurized ingredients. However, since they are not required to have a “clean room” to make the ice cream, production is limited to 2,500 gallons a year, and the ice cream must be consumed on-site and not sold for wholesale distribution.
Comments
Consolidate and simplify. This bill consolidates two separate permits into one new “limited frozen manufacturing permit” to simplify the permitting process and reduce the duplication of fees. This new permit reflects changes in food safety techniques and acknowledges that marketing trends change, requiring new permitting structures. This bill also updates the fee structure for milk products licenses and permits to cover costs of issuing these documents.
Retail sale. This bill allows facilities such as restaurants to use prepasteurized dairy ingredients (rather than a fully prepared ice cream mix) to make original recipe ice cream on-site, package, and sell to customers to take off-site. Currently, this type of ice cream is only permitted to be consumed immediately on-site, such as a dessert item on a dinner menu. However, with changes in the marketplace and improvements in food safety, restaurants and other food facilities are creating increasingly popular proprietary ice creams (and other frozen desserts such as gelato) that they wish to package and sell to customers to take home. This bill increases the limited production from 2,500 to 7,500 gallons a year and allow these facilities, with the proper limited frozen manufacturing permit, to sell packaged product on-site but not for wholesale distribution.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Dairy Institute of California
OPPOSITION: (Verified 6/27/17)
None received
ARGUMENTS IN SUPPORT: According to the author, “AB 1486 gives businesses greater flexibility in the on-site manufacture and sale of frozen desserts, while continuing to ensure the protection of public health through ongoing requirements for sanitary work areas and observance of good manufacturing practices under inspection by CDFA.”
ASSEMBLY FLOOR: 71-0, 5/4/17
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Bigelow, Brough, Choi, Cristina Garcia, Harper, Muratsuchi, Patterson, Ridley-Thomas
6/27/17 16:18:13
**** END ****
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2017 - 2018 Regular
Bill No: AB 1486 Hearing Date: 6/6/17
Author: | Caballero | ||
Version: | 2/17/17 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Anne Megaro | ||
Subject: Milk products: licenses: fees
SUMMARY
:
This bill would consolidate milk products plant permits, increase license and permit fees, and update food safety laws in regards to the manufacture and sale of frozen and soft-serve dairy and nondairy products.
BACKGROUND AND EXISTING LAW
:
The California Department of Food and Agriculture (CDFA) Milk and Dairy Food Safety Branch (MDFS) is responsible for ensuring that California milk products are safe, wholesome, meet composition requirements (i.e. fat and protein), do not exceed microbial limits, and are properly labeled. MDFS achieves these goals by inspecting dairy farms and processing plants and by testing milk and milk products to ensure quality and consumer safety.
Milk products plants are required to obtain licenses and permits that vary depending on the type of business and what milk product is made. The licenses and permits ensure that the facilities are inspected and adhere to food safety/sanitation requirements and manufacturing and distribution regulations. Specific to frozen desserts, CDFA issues four types of milk products plant licenses/permits:
- frozen milk products plant license
- semifrozen (soft-serve) milk products plant license
- limited packaging permit
- limited manufacturing permit
The entities obtaining these licenses and permits range from fully integrated plants that receive and pasteurize raw milk and process it into frozen desserts packaged for wholesale distribution, to small retail food facilities that only sell soft-serve made from a complete prepasteurized mix to customers for immediate consumption on-site. The limited manufacturing permit allows entities such as restaurants to make original-recipe ice cream using prepasteurized ingredients. However, since they are not required to have a “clean room” to make the ice cream, production is limited to 2,500 gallons a year, and the ice cream must be consumed on-site and not sold for wholesale distribution.
Existing law:
- Requires that all milk and milk products be pasteurized, processed, and packaged at a single site unless otherwise exempted by law or by regulations as determined by the secretary of CDFA (Food and Agricultural Code § 34008).
- Exempts from the above requirement licensed milk products plants that are used exclusively for the production of ice cream manufactured from a mix or premix that is supplied by a separate licensed milk products plant. Products sold through soft-serve establishments are also exempt.
- Requires milk products plants to obtain a license and pay an annual fee based on the number of gallons of product manufactured.
- Establishes a milk products plant license and renewal fee of $225 for soft-serve milk products plants.
- Authorizes CDFA to issue a limited packaging permit to a soft-serve milk products plant for on-site manufacture and packaging of hard frozen dairy products, under specified conditions. Prohibits the reconstitution of mix at a soft-serve milk products plant. The initial permit fee is $300, and the annual renewal fee is $150 (Food and Agricultural Code § 33704 and 35221).
- Requires that any hotel, restaurant, or boardinghouse that manufactures hard frozen or soft-serve products shall obtain a limited manufacturing permit (up to 2,500 gallons per year) from CDFA. The product shall be for immediate consumption and not sold for resale. The annual permit fee is $225.
PROPOSED LAW
:
This bill:
- Combines the limited packaging permit and the limited manufacturing permit into a new limited frozen manufacturing permit and raises the annual renewal fee from $225 to $600.
- Raises the milk products plant license and annual renewal fee from $225 to $325.
- Authorizes the secretary to raise these fees by no more than 3% per year, not to exceed the reasonable costs of services provided.
- Adds frozen and soft-serve products sold through an establishment with a limited frozen manufacturing permit to the exemption that milk products be pasteurized, processed, and packaged at the same plant. Also exempts soft-serve products manufactured at one licensed milk products plant using a soft-serve mix supplied by another licensed milk products plant from these requirements.
- Adds food facilities, hospitals, and other agencies to the list of entities that are required to obtain a limited frozen manufacturing permit from CDFA for the manufacture of hard frozen or soft-serve dairy products. Requires all of these entities to only sell product directly to purchasers on-site and not for wholesale.
- Raises to 7,500 gallons per year the maximum manufacturing limit for entities with a limited frozen manufacturing permit and requires records documenting the volume of production to be kept for 12 months and made available for inspection by CDFA.
- Prohibits a facility with a limited frozen manufacturing permit from receiving, processing, using, or handling raw dairy ingredients. Requires all dairy ingredients used to manufacture hard frozen or soft-serve products to be pasteurized at a licensed milk products plant.
- Authorizes hard frozen dairy products of nondairy frozen desserts manufactured at a facility issued a limited frozen manufacturing permit to be packaged for sale on-site but prohibits wholesale or resale.
- Repeals the authority of the secretary to authorize an approved milk inspection service to collect fees, enforce requirements, and inspect entities that have obtained a limited manufacturing permit.
ARGUMENTS IN SUPPORT:
According to the author, “AB 1486 gives businesses greater flexibility in the on-site manufacture and sale of frozen desserts, while continuing to ensure the protection of public health through ongoing requirements for sanitary work areas and observance of good manufacturing practices under inspection by CDFA.”
COMMENTS
:
Consolidate and simplify. This bill would consolidate two separate permits into one new “limited frozen manufacturing permit” to simplify the permitting process and reduce the duplication of fees. This new permit reflects changes in food safety techniques and acknowledges that marketing trends change, requiring new permitting structures. This bill would also update the fee structure for milk products licenses and permits to cover costs of issuing these documents.
Retail sale. This bill would allow facilities such as restaurants to use prepasteurized dairy ingredients (rather than a fully prepared ice cream mix) to make original recipe ice cream on-site, package, and sell to customers to take off-site. Currently, this type of ice cream is only permitted to be consumed immediately on-site, such as a dessert item on a dinner menu. However, with changes in the marketplace and improvements in food safety, restaurants and other food facilities are creating increasingly popular proprietary ice creams (and other frozen desserts such as gelato) that they wish to package and sell to customers to take home. This bill would increase the limited production from 2,500 to 7,500 gallons a year and allow these facilities, with the proper limited frozen manufacturing permit, to sell packaged product on-site but not for wholesale distribution.
RELATED LEGISLATION
:
AB 1894 (Agriculture) Chapter 260, Statutes of 2016. Omnibus bill. Updates frozen dairy dessert food safety requirements to incorporate new technologies, among other provisions.
PRIOR ACTIONS
:
Assembly Floor: | 71 - 0 |
Assembly Appropriations Committee: | 16 - 0 |
Assembly Agriculture Committee: | 9 - 0 |
SUPPORT
:
Dairy Institute of California
OPPOSITION
:
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1486
Author:(Caballero)
As Introduced Ver:February 17, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Agriculture | 9-0 | Caballero, Aguiar-Curry, Flora, Gallagher, Gray, Irwin, Jones-Sawyer, Quirk, Salas | |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, McCarty, Chau, Eggman, Fong, Friedman, Eduardo Garcia, Gray, Muratsuchi, Obernolte, Reyes |
|
SUMMARY: This bill consolidates permitting requirements for certain establishments that engage in limited frozen dairy product manufacturing and packaging. Specifically, this bill:
- Deletes provisions related to a Limited Packaging Permit for frozen and semifrozen dairy products and renames the Limited Manufacturing Permit as the Limited Frozen Manufacturing Permit (LFMP).
- Allows specified packaging of frozen and semifrozen dairy products under LFMP.
- Increases the quantity of frozen and semifrozen dairy products and desserts that a holder of a LFMP can produce annually from 2,500 gallons of product to 7,500 gallons of product.
- Modifies the current fee structure and makes technical and conforming changes.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has no new state costs.
COMMENTS: The Milk and Dairy Food Safety Branch of the California Department of Food and Agriculture (CDFA) is responsible for ensuring that milk, milk products, and products resembling milk products are safe, unadulterated and properly labeled. CDFA inspects dairy farms, bulk milk tankers and milk processing plants, checks fail-safe systems on pasteurization equipment, and collects samples of milk and milk products to ensure compliance with state and federal microbiological and compositional standards.
Milk products plant licenses are issued by CDFA for various types of businesses that handle or manufacture milk and milk products, including but not limited to frozen dairy products and desserts. Under current law, a person needs a license from CDFA for each separate milk products plant or place of business: 1) dealing in, receiving, manufacturing, freezing, or processing milk, or any product of milk; or 2) manufacturing, freezing, or processing imitation ice cream or imitation ice milk. All milk product plants must meet specified sanitary design and operational requirements and be inspected and approved by CDFA, except for certain small-scale soft-serve dessert manufacturers that may be inspected by a local county or city health jurisdiction designated by CDFA as an Approved Milk Inspection Service.
The manufacture and sale of frozen desserts at the retail level is an evolving sector of the industry, with businesses seeking to safely make frozen desserts using proprietary recipes and product sales approaches that are not consistently allowable under the complicated licensing rules in current law. Except for the limited forms of licenses, the manufacture of ice cream currently requires a separate clean room that meets all sanitary design requirements of a milk products plant that manufactures for wholesale distribution. The building of a separate clean room can be problematic for small businesses operating in retail food facilities. Except for the 2500 gallons permissible under a limited manufacturing permit, making frozen desserts from scratch is prohibited without a clean room, and requires use of approved pasteurization equipment inspected and sealed quarterly by CDFA, even solely for on-premises retail sale.
This bill would simplify and add clarity to the licenses and sanitary requirements applicable to frozen dessert manufacturing, especially for the purposes of on-site sales directly to consumers. This bill proposes the LFMP to allow facilities to make frozen desserts from pre-pasteurized dairy ingredients for purposes of serving consumers directly on the same premises. LFMP would allow a permit holder to annually produce 7,500 gallons of frozen dessert. The limited frozen retail manufacturing permit would also authorize packaging of manufactured frozen dessert products for on-site sales, provided they are properly labeled. This bill will allow businesses greater flexibility in the on-site manufacture and sale of frozen desserts, while continuing to ensure the protection of public health through inspection by CDFA. The bill also updates license fees for soft-serve and the LFMP to cover program costs for inspection.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0000169
Date of Hearing: April 26, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1486
Author:(Caballero) – As Introduced Ver:February 17, 2017
Policy Committee: | Agriculture | Vote: | 9 - 0 |
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill consolidates permitting requirements for certain establishments that engage in limited frozen dairy product manufacturing and packaging. Specifically, this bill:
- Deletes provisions related to a Limited Packaging Permit for frozen and semifrozen dairy products and renames the Limited Manufacturing Permit as the Limited Frozen Manufacturing Permit.
- Allows specified packaging of frozen and semifrozen dairy products under the Limited Frozen Manufacturing Permit.
- Increases the quantity of frozen and semifrozen dairy products and desserts that a holder of a Limited Frozen Manufacturing Permit can produce annually from 2,500 gallons of product to 7,500 gallons of product.
- Modifies the current fee structure and makes technical and conforming changes.
FISCAL EFFECT:
No new state costs. This bill consolidates the existing permitting requirements for establishments engaged in limited manufacturing and packaging of frozen dairy desserts. As a result, there is an expected decrease in fee revenue that would correspond with a decrease in the number of permits. However, AB 1486’s new fee structure is expected to offset these potential costs, and there is no expected change in workload as a result of this bill.
COMMENTS:
- Frozen dairy products permitting requirements. The Milk and Dairy Food Safety Branch of CDFA is responsible for ensuring the safety of milk and milk products and the licensing of milk product producers. The type of license and permit required depends on the type of milk product and the production conditions. For producers of frozen dairy products, four types of permits and licenses are applicable, each associated with specific sanitary requirements and allowable activities. For instance, a Limited Manufacturing Permit allows restaurants to make ice cream from scratch using pre-pasteurized ingredients, but only for the purposes of on-site consumption and only if there are no more than 2,500 gallons produced a year. If they produce more than that, then they face more stringent requirements regarding facilities and processes. If the same establishment wants to package that product for consumption offsite, then they must also obtain a Limited Packaging Permit.
- Purpose. According to supporters, AB 1486 will provide businesses greater flexibility in the on-site manufacturing and sale of frozen desserts. The current system of permits and licenses is not seen as adequate for the evolving industry of manufactured frozen desserts at the retail level.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 5, 2017
ASSEMBLY COMMITTEE ON AGRICULTURE
Anna Caballero, Chair
ABPCA Bill Id:AB 1486
Author:(Caballero) – As Introduced Ver:February 17, 2017
SUBJECT: Milk products: licenses: fees.
SUMMARY: Deletes the limited manufacturing permit for frozen desserts and replaces it with a limited frozen manufacturing permit (LFMP), under the authority of the Milk and Dairy Food Safety Branch of the California Department of Food and Agriculture (CDFA). Specifically, this bill:
- Deletes provisions related to limited packaging permit for frozen desserts produced at specified locations.
- Adds LFMP holder, to those who are exempt from pasteurization requirements for process and production.
- Clarifies that who and under what condition, an organization can obtain a LFMP.
- Increases the amount of frozen dessert that a LFMP holder can produce from 2,500 gallons of product to 7,500 gallons of product annually.
- Requires a LFMP holder to have records of production and make those records available for inspection by CDFA.
- Deletes provisions related to fees for approved milk inspection services.
- Allows a LFMP holder to package frozen desserts for sales on premises and prohibits packaging frozen desserts for purposes of wholesale, resale, or for sale off the premises.
- Requires all packaged products to be labeled with the manufactures' name, address and limited frozen manufacturing permit number, and comply with other labeling laws, as specified.
- Increases from $225 to $325 for the annual fee for soft-serve milk product plant license.
- Deletes provisions related to limited packaging permits for frozen desserts fees.
- Increases from $225 to $600 the annual fee for a LFMP.
- Allows CDFA to increase the fee by not more than 3% per year, not to exceed reasonable cost of services provided.
- Makes technical and conforming changes.
EXISTING LAW:
- Regulates the production and sale of milk and related products and requires various entities to obtain a permit from CDFA to engage in specified related business practices.
- Requires specified entities that manufacture hard frozen or semi frozen dairy products (soft-serve) for the use of any patron, guest, or employee to obtain a limited manufacturing permit.
- Requires that all market milk and market milk products, and all milk for manufacturing purposes and manufactured milk products, be pasteurized at the plant where processed and packaged, except as specified.
- Requires every person that is engaged in the business of dealing in, receiving, manufacturing, freezing, or processing frozen desserts, as specified, product for which a license is required, to pay specified permit and license fees. Provides the fee for a soft-serve milk products plant license is $225, and the fee for a limited manufacturing permit is $225.
FISCAL EFFECT: Unknown
COMMENTS: The Milk and Dairy Food Safety Branch of CDFA is responsible for ensuring that milk, milk products, and products resembling milk products are safe, unadulterated and properly labeled. CDFA inspects dairy farms, bulk milk tankers and milk processing plants, checks fail-safe systems on pasteurization equipment, and collects samples of milk and milk products to ensure compliance with state and federal microbiological and compositional standards.
Milk products plant licenses are issued by CDFA for various types of businesses that handle or manufacture milk and milk products, including but not limited to frozen dairy products and desserts. Under current law, a person needs a license from CDFA for each separate milk products plant or place of business: (1) dealing in, receiving, manufacturing, freezing, or processing milk, or any product of milk; or (2) manufacturing, freezing, or processing imitation ice cream or imitation ice milk. All milk product plants must meet specified sanitary design and operational requirements and be inspected and approved by CDFA, except for certain small-scale soft-serve dessert manufacturers that may be inspected by a local county or city health jurisdiction designated by CDFA as an Approved Milk Inspection Service.
There are four different types of milk products plant licenses or permits applicable to the manufacture of frozen desserts, including:
- a frozen milk products plant license;
- a soft-serve milk products plant license;
- a limited packaging permit; and,
- a limited manufacturing permit.
Each of these licenses or permits is associated with specific, but varying, sanitary requirements and allowable manufacturing and distribution activities. The licensed premises range from complex facilities that receive, pasteurize, and process milk and other ingredients into frozen desserts packaged for wholesale distribution, to simple retail food facilities that only sell soft-serve frozen desserts directly to consumers from a freezing device that manufactures products from a complete pre-pasteurized mix. The current limited manufacturing permit allows restaurants to make ice cream from scratch using pre-pasteurized ingredients, but only for purposes of on-premises consumption by patrons, and restricts manufacturing to no more than 2500 gallons per year.
The manufacture and sale of frozen desserts at the retail level is an evolving sector of the industry, with businesses seeking to safely make frozen desserts using proprietary recipes and product sales approaches that are not consistently allowable under the complicated licensing rules in current law. Except for the limited forms of licenses, the manufacture of ice cream currently requires a separate clean room that meets all sanitary design requirements of a milk products plant that manufactures for wholesale distribution. The building of a separate clean room can be problematic for small businesses operating in retail food facilities. Except for the 2500 gallons permissible under a limited manufacturing permit, making frozen desserts from scratch is prohibited without a clean room, and requires use of approved pasteurization equipment inspected and sealed quarterly by CDFA, even solely for on-premises retail sale.
AB 1486 would simplify and add clarity to the licenses and sanitary requirements applicable to frozen dessert manufacturing, especially for the purposes of on-premises sale directly to consumers. AB 1486 proposes the LFMP to allow facilities to make frozen desserts from pre-pasteurized dairy ingredients for purposes of serving consumers directly on the same premises. LFMP would allow a permit holder to 7,500 gallons of frozen dessert per year. The limited frozen retail manufacturing permit would also authorize packaging of manufactured frozen dessert products for on-premises sale, provided they are properly labeled. This bill will allow businesses greater flexibility in the on-premises manufacture and sale of frozen desserts, while continuing to ensure the protection of public health through inspection by CDFA. The bill also updates license fees for soft-serve and the limited frozen manufacturing permit to cover program costs for inspection.
REGISTERED SUPPORT / OPPOSITION:
Support
Dairy Institute of California
Opposition
None on file.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084
Discussed in Hearing
3MIN
Senate Floor
2MIN
Assembly Floor
2MIN
Assembly Standing Committee on Appropriations
12MIN
Assembly Standing Committee on Agriculture
Bill Author
Bill Co-Author(s):