BILL NUMBER: AB 1071 CHAPTERED 09/30/04 CHAPTER 929 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2004 APPROVED BY GOVERNOR SEPTEMBER 29, 2004 PASSED THE ASSEMBLY AUGUST 19, 2004 PASSED THE SENATE AUGUST 16, 2004 AMENDED IN SENATE JUNE 22, 2004 AMENDED IN SENATE JUNE 2, 2004 AMENDED IN ASSEMBLY JANUARY 6, 2004 INTRODUCED BY Assembly Member Matthews FEBRUARY 20, 2003 An act to amend Sections 19227 and 19315 of, to amend, repeal, and add Section 15061 of, and to add Sections 19310.7 and 19317 to, the Food and Agricultural Code, relating to commercial feed, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 1071, Matthews. Commercial feed: inspection tonnage tax. Existing law establishes an inspection tonnage tax for commercial feed, as specified, with a maximum rate of 15 per ton. The funds collected are deposited into the continuously appropriated Food and Agriculture Fund. e This bill would, in addition, and until January 1, 2010, authorize the Secretary of Food and Agriculture to designate a specified amount of the tonnage taxes collected to provide funding for research and education regarding the safe manufacture, distribution, and use of commercial feed. By expanding the purposes for which funds in a continuously appropriated fund may be spent, this bill would make an appropriation. Existing law authorizes the collection of administrative fees, as specified, from renderers and collection centers in connection with rendering. Under existing law, these provisions will be repealed on January 1, 2006. Other provisions of existing law require the funds collected to be deposited into the continuously appropriated Food and Agriculture Fund. This bill would extend the operative date of those provisions to January 1, 2011. By extending the operation of those provisions of law requiring collection and deposit of funds into a continuously appropriated fund, this bill would make an appropriation. Existing law generally regulates the transportation of inedible kitchen grease. This bill would authorize any registered transporter or licensed renderer of inedible kitchen grease to deliver any inedible kitchen grease to a licensed renderer or collection center for processing or recycling into usable products, as specified. Existing law provides that in addition to the required fee for registration as a transporter of inedible kitchen grease, the Department of Food and Agriculture may charge an additional fee necessary to cover the costs of administering provisions relating to transporters of inedible kitchen grease. Existing law provides that these provisions will be repealed on January 1, 2006. Other provisions of existing law require the funds collected to be deposited into the continuously appropriated Food and Agriculture Fund. This bill would extend the operation of these provisions until January 1, 2011. By extending the operation of these provisions of law requiring collection and deposit of funds into a continuously appropriated fund, this bill would make an appropriation. Existing law generally regulates transporters of inedible kitchen grease. This bill would, in addition, require that a registered transporter of inedible kitchen grease to, whenever any contract for the transportation of inedible kitchen grease under which that transporter provides transportation services is terminated or expires, notify the county health officer of the termination or expiration of the contract and that the registered transporter is no longer transporting inedible kitchen grease pursuant to that contract. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 15061 of the Food and Agricultural Code is amended to read: 15061. (a) An inspection tonnage tax at the maximum rate of fifteen cents ($0.15) per ton of commercial feed sold, except whole grains, and whole hays when unmixed, shall be paid to the secretary by any person who distributes commercial feed to a consumer-buyer in this state. The distributor shall also pay an inspection tonnage tax for purchased commercial feed fed to his or her own animals. (b) The secretary may, based upon a finding and recommendation of the Feed Inspection Advisory Board, determine the specific rate necessary to provide the revenue needed to carry out the provisions of this chapter. The secretary and the Feed Inspection Advisory Board shall not exceed the maximum tonnage rate established by this section. Setting the tonnage tax rate shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (c) The secretary may, based upon a finding and recommendation of the Feed Inspection Advisory Board, designate 15 percent of the tonnage taxes collected, or two hundred thousand dollars ($200,000), whichever amount is greater, to provide funding for research and education regarding the safe manufacture, distribution, and use of commercial feed. These funds may only be spent on activities approved by the Feed and Inspection Advisory Board, with approval being made prior to any expenditure. (d) This section shall remain in effect only until January 1, 2010, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2010, deletes or extends that date. SEC. 2. Section 15061 is added to the Food and Agricultural Code, to read: 15061. (a) An inspection tonnage tax at the maximum rate of fifteen cents ($0.15) per ton of commercial feed sold, except whole grains, and whole hays when unmixed, shall be paid to the secretary by any person who distributes commercial feed to a consumer-buyer in this state. The distributor shall also pay an inspection tonnage tax for purchased commercial feed fed to his or her own animals. (b) The secretary may, based upon a finding and recommendation of the Feed Inspection Advisory Board, determine the specific rate necessary to provide the revenue needed to carry out the provisions of this chapter. The secretary and the Feed Inspection Advisory Board shall not exceed the maximum tonnage rate established by this section. Setting the tonnage tax rate shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (c) This section shall become operative on January 1, 2010. SEC. 3. Section 19227 of the Food and Agricultural Code is amended to read: 19227. (a) In addition to the license fee required pursuant to Section 19225, the department may charge each licensed renderer and collection center an additional fee necessary to cover the costs of administering Article 6 (commencing with Section 19300) and Article 6.5 (commencing with Section 19310). The additional fees authorized to be imposed by this section may not exceed three thousand dollars ($3,000) per year per each licensed rendering plant or collection center. (b) The secretary shall fix the annual fee established pursuant to this section and may fix different fees for renderers and collection centers. The secretary shall also fix the date the fee is due and the method of collecting the fee. If an additional fee is imposed on licensed renderers pursuant to subdivision (a) and an additional fee is imposed on registered transporters pursuant to subdivision (a) of Section 19315, only one additional fee may be imposed on a person or firm that is both licensed as a renderer pursuant to Article 6 (commencing with Section 19300) and registered as a transporter of inedible kitchen grease pursuant to Article 6.5 (commencing with Section 19310), which fee shall be the higher of the two fees. (c) If the fee established pursuant to this section is not paid within one calendar month of the date it is due, a penalty shall be imposed in the amount of 10 percent per annum on the amount of the unpaid fee. (d) This section shall become inoperative on July 1, 2010, and, as of January 1, 2011, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2011, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 4. Section 19310.7 is added to the Food and Agricultural Code, to read: 19310.7. Any person registered as a transporter or licensed as a renderer of inedible kitchen grease may deliver any inedible kitchen grease to a licensed renderer or collection center for processing or recycling into usable products. As used in this section, "usable products" includes, but is not limited to, biofuels, lubricants, and animal feed, provided the uses for animal feed are permitted by the rules and regulations adopted by the United States Food and Drug Administration. SEC. 5. Section 19315 of the Food and Agricultural Code is amended to read: 19315. (a) In addition to the registration fee required by Section 19312, the department may charge an additional fee necessary to cover the costs of administering this article. Any additional fee charged pursuant to this section shall not exceed three hundred dollars ($300) per year per vehicle that is operated to transport kitchen grease, and shall not exceed three thousand dollars ($3,000) per year per registered transporter. (b) The secretary shall fix the annual fee established pursuant to this section and may fix different fees for transporters of inedible kitchen grease and collection centers. The secretary shall also fix the date the fee is due and the method of collecting the fee. If an additional fee is imposed on licensed renderers pursuant to subdivision (a) of Section 19227 and an additional fee is imposed on registered transporters pursuant to subdivision (a), only one additional fee may be imposed on a person or firm that is both licensed as a renderer pursuant to Article 6 (commencing with Section 19300) and registered as a transporter of inedible kitchen grease pursuant to this article, which fee shall be the higher of the two fees. (c) If the fee established pursuant to this section is not paid within one calendar month of the date it is due, a penalty shall be imposed in the amount of 10 percent per annum on the amount of the unpaid fee. (d) This section shall become inoperative on July 1, 2010, and, as of January 1, 2011, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2011, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 6. Section 19317 is added to the Food and Agricultural Code, to read: 19317. A registered transporter of inedible kitchen grease shall, whenever any contract for the transportation of inedible kitchen grease under which that transporter provides transportation services is terminated or expires, notify the county health officer for the county in which the inedible kitchen grease was collected of the termination or expiration of the contract and that the registered transporter is no longer transporting inedible kitchen grease pursuant to that contract.