BILL ANALYSIS SENATE FOOD and AGRICULTURE COMMITTEE Senator Dean Florez, Chairman BILL NO: SB 1138 HEARING: 4/6/10 AUTHOR: Cedillo FISCAL: Yes VERSION: 4/5/10 CONSULTANT: John Chandler Horsemeat and pet food: Rendering Industry Advisory Board BACKGROUND AND EXISTING LAW Current law defines rendering as the recycling, processing, and conversion of animal and fish byproducts and carcasses from the meat, poultry, and seafood industries, as well as used kitchen grease into fats, oils, and proteins that are used primarily as feed in the animal, poultry, and pet food industries. California Department of Food and Agriculture Meat and Poultry Inspection Branch (CDFA) is responsible for regulating and licensing renderers, inedible kitchen grease transporters, dead animal haulers, and pet food processors. Current laws and regulations attempt to ensure that all materials that should be sent to a renderer, such as carcasses, oils, used kitchen grease, fats, and proteins, are sent to a rendering facility and to deter the theft of those materials. The enforcement is funded through a number of annual licensing fees required for operation within the state of California. SB 1107 (Kehoe) proposes to establish a program in the State Water Board to regulate and track the transportation of interceptor and trap grease. SB 1107 is currently in the Senate Food and Agriculture Committee set for hearing on April 6, 2010. PROPOSED LAW SB 1138 would create the Rendering Industry Advisory Board. Specifically, this bill would: Establish the Rendering Industry Advisory Board (board) consisting of 7 licensed renderers, dead animal haulers, and transporters of inedible kitchen grease appointed by the secretary of CDFA. Authorize the secretary to appoint a public member to the Rendering Industry Advisory Board from nominations submitted by the board. Set the term limit of the board members at three years. SB 1138 - Page 2 Specify that board members receive no salary but do receive reimbursement for travel. Authorize the board to make recommendations to the secretary on inspection, enforcement, annual budget, and regulations. Authorize the board to elect its own chairman and other officers. Require the board to meet at least once a year or on the call of the board chairman, any three members of the board, or CDFA. Specify that a quorum of the board is five members and a vote of a majority of board members at a meeting where there is a quorum is an act of the committee. Specify that board members or agents of the board are not personally liable for the actions of the committee. Authorize the advisory board to keep accurate books and records of its activities, subject to audit by CDFA, and provide an annual report with audit to all licensed renderers, dead animal haulers, and inedible kitchen grease haulers. Authorize the advisory board to make recommendations to CDFA concerning adoption, modification, and repeal of regulations and procedures for employment, training, supervision, and compensation of inspectors and other personnel; rate and collection of license fees and penalties; acquisition and use of equipment; and posting and noticing changes in bylaws, general procedures, or orders. Protect proprietary information gathered as part of the rendering program. Require CDFA to adopt any practicable recommendation of the advisory board if it is in the interest of the rendering industry and the public within 30 days or provide a written statement of reasons the recommendation was not adopted. COMMENTS SB 1138 - Page 3 1.Proponents state that the advisory board created in SB 1138 would provide an opportunity for official interaction between the industry and CDFA to address issues and ensure the program continues to maintain its objectives to regulate and enforce the laws regarding the rendering industry. Recently, members of the rendering industry have been encouraging CDFA and the state to undertake more aggressive enforcement. Through an advisory board, the industry would be able to guide and oversee both the rendering program and the industry to assist the goals of protecting public health, food safety, and the environment in a cooperative and healthy economic environment. 2.The Senate Rules Committee has doubled referred this bill to the Senate Environmental Quality Committee as the second committee of referral. Therefore, if this measure is approved by this committee, the motion should include an action to re-refer the bill to the Senate Committee on Environmental Quality. SUPPORT California Grain and Feed Association Pacific Coast Rendering Association OPPOSITION None received