BILL ANALYSIS                                                                                                                                                                                                    

                                                               SB 1138

                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session

           BILL NO:    SB 1138
           AUTHOR:     Cedillo
           AMENDED:    April 5, 2010
           FISCAL:     Yes               HEARING DATE:     April 19, 2010
           URGENCY:    No                CONSULTANT:       Caroll  

            SUMMARY  :    
            Existing law pursuant to the Food and Agriculture Code  :

           1) Establishes the California Department of Food and  
              Agriculture (CDFA) which is responsible for promoting,  
              protecting, and furthering the economy of the state's  
              agricultural industry, including identifying, studying, and  
              recommending solutions to agribusiness problems so that  
              adequate supplies of food and fiber will be available and  
              the industries involved will be economically sound.

           2) Establishes a nine-member Fertilizer Inspector Advisory  
              Board appointed by the Secretary of CDFA with eight of the  
              members subject to CDFA licensure requirements.  One member  
              must represent the public.  This board is advisory in  
              nature to the Secretary on inspection, enforcement,  
              research, education and budget matters, including fees.

           3) Establishes a 13-member Agricultural Pest Control Advisory  
              Committee, appointed by the Secretary.  Twelve members must  
              represent the industry, plus one public member that must be  
              appointed to the committee by the Secretary from nominees  
              recommended by the committee. The committee must be  
              advisory to the Secretary in all matters concerning the  
              licensing, certification, and regulation of persons and  
              firms licensed or certified pursuant to this division.


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           4) Establishes the eight-member Livestock Identification  
              Advisory Board.  Seven members represent the industry, plus  
              one public member that must be appointed to the Board from  
              recommendations provided by the Board members.  Requires  
              the Secretary in making a selection of the membership of  
              the board, to take into consideration the recommendations  
              of organizations and associations of cattlemen, dairymen,  
              livestock marketing agencies, and general farm  

           5) Creates the Food Biotechnology Task Force that is  
              co-chaired by the Secretary of California Health and Human  
              Services, and the Secretary of the CDFA.  It requires the  
              Task Force to appoint an advisory committee to provide  
              input on issues reviewed by the task force.  The advisory  
              committee must consist of representatives from consumer  
              groups, environmental organizations, farmers, ranchers, and  
              representatives from the biotechnology industry,  
              researchers, organic farmers, food processors, retailers,  
              and others with interests in the issues surrounding  

            This bill  :

           1) Establishes the Rendering Industry Advisory Board (board)  
              consisting of seven licensed renderers, dead animal  
              haulers, and transporters of inedible kitchen grease  
              appointed by the secretary of CDFA.

           2) Authorizes the Secretary to appoint a public member to the  
              Rendering Industry Advisory Board from nominations  
              submitted by the board.

           3) Sets the term limit of the board members at three years. 

           4) Specifies that members receive no salary but do receive  
              reimbursement for travel.

           5) Authorizes the board to make recommendations to the  
              secretary on inspection, enforcement, annual budget, and  

           6) Authorizes the board to elect its own chairman and other  


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           7) Requires 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.

           8) Specifies 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 board.

           9) Specifies that board members or agents of the board are not  
              personally liable for the actions of the board.

           10)Authorizes the 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.

           11)Authorizes the 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  

           12)Protects proprietary information gathered as part of the  
              rendering program.

           13)Requires 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  

            COMMENTS  :

            1)Purpose of Bill  .  According to the author, "The rendering  
             industry provides critical health and safety infrastructure  
             for Californians by taking a waste product and turning it  
             into a valuable commodity while also killing disease vectors  
             that impact animal and human health.  It offers a sanitary  


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             and eco-friendly way to dispose of the massive amount of  
             meat and food by-products produced every year.  One of the  
             most valuable commodities the industry processes and  
             recycles is used, inedible kitchen grease.  The primary  
             product made from inedible kitchen grease is biodiesel.   
             Rendering companies collect the oil and excess food that is  
             stored in receptacles behind restaurants and supermarkets  
             and haul it to their plants for processing.  If the oil is  
             not collected, it is often illegally disposed into the sewer  
             system, clogging public pipes or dumped in storm drains  
             creating significant environmental issues."

             Often the product is stolen before it is picked up to be  
             processed.  At times it is an entire street or route that is  
             stolen.  This results in lost revenue, time and expense to  
             the renders.  Thus, workers and businesses that employ them  
             are hurting and need increased enforcement and tools to  
             address this issue.  Furthermore, when individuals steal the  
             oil, many attempt to personally process it at home into  
             biodiesel through kits available online.  However, this is  
             problematic because individuals might not have the training  
             to effectively process the kitchen grease and discard the  
             excess residue.
           2)CDFA Advisory Committees  .  As shown under "Existing Law"  
             above, advisory boards are common within CDFA.  For the most  
             part they are comprised of representatives from the  
             regulated industry and one public member.  They are  
             generally tasked with advising the Secretary on regulation,  
             fees, program oversight and other related matters.  In fact,  
             most are statutorily directed to look out for the interest  
             of the industry and makes that tantamount to the interest of  
             the public.  In general this seems to function for CDFA,  
             however when the commodity being regulated has cross-media  
             impacts (such as fertilizer or grease), it begs the question  
             if these boards are as effective as they should be in  
             advising on the best policy and direction for the State.

            3)A Better Model  . The Committee should consider the benefits  
             of an advisory board that has a broader cross-section of  
             stakeholders to provide the Secretary with the best policy  
             direction that encompasses more than just the welfare of the  
             regulated industry when the commodity being regulated has  


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             public health and environmental impacts.  Under #5 in  
             "Existing Law" above, the task force for food biotechnology  
             is one such model.  It provides for members that represent  
             not just the regulated industry but groups that are affected  
             by the activities of the industry.  It would be better  
             policy for SB 1138 to include members on the advisory board  
             that represent potential new end-users of grease as well as  
             representatives who can bring water quality and local  
             government experience to form the best recommendations to  
             the Secretary.

            4)Supporters Position  .  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  

            5)Related Legislation  .

              a)   AB 2633 (Frommer) of 2004 attempted to create the  
                Interceptor Grease Transportation, Recycling and Disposal  
                Act of 2004 to manage the transportation and disposal of  
                interceptor grease.  This bill was vetoed by the  

              b)   AB 1333 (Frommer) Chapter 186, Statutes of 2006, made  
                it a misdemeanor to improperly dispose or incompletely  
                remove grease from traps or interceptors.

              c)   AB 1065 (Matthews) Chapter 533, Statutes of 2005,  
                established a method for tracking inedible kitchen  
                grease; defined "interceptor grease"; required  
                transporters to be insured; changed the suspension or  
                revocation of a license or registration; and expanded the  
                conditions that may lead to a suspension or revocation of  


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                a license or registration.

              d)   SB 1107 (Kehoe) would create a tracking system for  
                interceptor and trap grease within the State Water  
                Resources Control Board.  This bill is set for hearing in  
                the Committee on April 19, 2010.

            6)Previous Committee  .  SB 1138 was approved by the Senate Food  
             and Agriculture Committee on April 6, 2010 (3-1).

            7)Amendments Needed  .  To address the concerns raised in #5  
             above, the bill should be amended to change one of the  
             industry members to a representative with experience and  
             expertise in new and innovative end uses for grease (e.g.,  
             energy recovery, new products) and add an additional public  
             (non-industry) member.  The two public members would be  
             required to have water quality, and local government  
             infrastructure (e.g., enforcement, sewer/sanitation)  

            SOURCE  :        Pacific Coast Rendering Association
                          California Grain and Feed Association
           SUPPORT  :       None on file  

           OPPOSITION  :    None on file