BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1138
                                                                  Page  1

          Date of Hearing:   June 16, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                   SB 1138 (Cedillo) - As Amended:  April 27, 2010

           SENATE VOTE  :   28-0
           
          SUBJECT  :  Rendering and pet food: Rendering Industry Advisory  
          Board.

           SUMMARY  :  Creates the Rendering Industry Advisory Board (RIAB)  
          consisting of nine members appointed by the Secretary of the  
          California Department of Food and Agriculture (CDFA), and  
          specifies their duties and responsibilities.  Specifically,  this  
          bill  :   

          1)Creates RIAB, consisting of nine appointees by CDFA, of which  
            seven are required to be subject to the licensure by CDFA's  
            rendering program, including but not limited to, renderers,  
            dead haulers, and transporters of inedible kitchen grease.   
            Two appointees shall be public members and any vacancies shall  
            be filled by CDFA.  RIAB members shall not receive a salary  
            but are entitled to travel expenses in accordance with  
            Department of Personnel Administration and funded by  
            appropriations made to CDFA.

          2)Requires one of the seven licensed appointees to have  
            experience and expertise in non-traditional uses of rendered  
            products, including but not limited to, energy use,  
            alternative fuels, lubricants and other uses.  Requires the  
            public members to have experience and expertise in water  
            quality, public owned treatment works and water infrastructure  
            or law enforcement.

          3)Establishes that the term of appointment shall be three years,  
            except for the first appointees, which will be three groups,  
            three appointees each serving three years, two years and one  
            year, respectively.

          4)Authorizes, in addition to the following established  
            authority, that RIAB shall advise CDFA, make recommendations  
            on all matters pertaining to this chapter including  
            regulations required to accomplish the purpose of this  
            chapter, elect a chairperson, and any other offices deemed  








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            advisable.  RIAB shall meet at the call of the chairperson or  
            CDFA, or at the request of any three members; establish a  
            quorum as six members, and a vote by the majority of members  
            present after establishment of a quorum constitutes an act of  
            RIAB.  Board members, alternatives, employees or agents of  
            RIAB shall not be personally liable or individually  
            responsible for actions, errors, mistakes or other acts,  
            either by commission or omission, except for individual acts  
            of dishonesty or crime.

          5)Authorizes RIAB to make recommendations to CDFA regarding:

             a)   Adoption, modification, and repeal of regulations and  
               procedures;

             b)   Procedures for employment, training, supervision, and  
               compensation of inspectors and other personnel;

             c)   Rate and collection of license fees and penalties  
               related thereto; 

             d)   Acquisition and use of equipment; and,

             e)   Posting and noticing changes in bylaws, general  
               procedures, or orders.

          6)Requires RIAB to maintain accurate books and records of its  
            activities, be subject to annual audit, provides the audit as  
            part of an annual report to licensees of this chapter,  
            prohibits proprietary information of any person subject to  
            this chapter to be shared with any other person subject to  
            this chapter, including but not limited, to material test  
            results, individual fee or license payments, rendering process  
            or formula information.

          7)Requires CDFA to adopt regulations for RIAB to administer this  
            article, and requires CDFA accept recommendations from RIAB,  
            if they are practical and in the interest of the rendering  
            industry and the public.  Requires CDFA, within  30 days of  
            receipt of recommendation, to notify RIAB of its acceptance or  
            provide in writing the reasons for non-acceptance. 
           
          EXISTING LAW  defines rendering as the recycling, processing and  
          conversion of animal and fish byproducts and carcasses, as well  
          as kitchen grease, into fats, oils and proteins used primarily  








                                                                  SB 1138
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          as feed for the animal and pet food industries.  Further, it  
          establishes handling and processing requirements including  
          licensure, fees, violations and penalties. (Food and  
          Agricultural Code Sections 19200 - 19447)

           FISCAL EFFECT  :  According to the Senate Committee on  
          Appropriations, any cost due to travel or adoption of  
          regulations would be minor and absorbable.

           COMMENTS  :  According to the author, the rendering industry  
          provides a critical health and safety network by taking waste  
          products and turning them into valuable commodities while  
          destroying disease vectors that impact both animals and human  
          health.  This industry provides an ecologically friendly option  
          to landfills, composting, incineration or burial.  One of the  
          most valuable commodities to the renderers is inedible kitchen  
          grease, which is used to produce, among other products,  
          biodiesel.  The oil is collected in receptacles at restaurants  
          and markets, collected and hauled to rendering plants for  
          processing.  If not collected, this oil is often illegally  
          disposed of into sewer systems, or dumped into storm drains  
          creating significant environmental issues and systems handling  
          problems.

          The sponsors state that the creation of RIAB will provide the  
          industry the ability to better assist CDFA's program by  
          providing official interaction on the variety of activities of  
          the program, especially in dealing with enforcement to deal with  
          public health and environmental protection.  Further, RIAB can  
          advise CDFA on interactions with local law enforcement and other  
          governmental entities such as air and water regulators.

          The industry has been pushing CDFA to develop a regulatory  
          package to require manifest for the transportation of rendering  
          inputs, specifically inedible kitchen grease.  CDFA began to  
          develop such a package several years ago but it has been a very  
          slow process, frustrating the industry.  The regulatory package  
          is believed to be currently in review prior to being handed over  
          to the Office of Administrative Review.

          The committee may wish to consider if the reference to "or  
          alternative members" (page 4, line 9) should be deleted since  
          there are not provisions for alternatives members to be  
          appointed.  Further, there are two sections (19218.2 page 3,  
          line 30 and 19218.5 page 4, line 23) that state RIAB "may make  








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          recommendations" followed by similar but different items.  The  
          author may wish to consolidate these authorities. 

           RELATED LEGISLATION  :  AB 2612's (Agriculture) Omnibus bill,  
          among other issues, deals with expanding the definition of a  
          "collection center" to include a "pet food processor", changes  
          the license expiration date from a year of issuance to December  
          31 of each year, and exempts a "collection center" from  
          registration as a transporter of kitchen grease if they are  
          licensed as a collection center in accordance with this chapter.

          SB 1107 (Kehoe), requires the State Water Resources Control  
          Board (SWRCB), on or before January 1, 2012, to develop, adopt,  
          and implement, regulations that include specified requirements,  
          for a manifest system to track the transportation of interceptor  
          and trap grease, as specified.  This bill requires SWRCB to  
          impose a fee sufficient to cover the costs of implementing the  
          act, and requires SWRCB to deposit all revenues from the fee in  
          the Interceptor and Trap Grease Manifest Fund, which the bill  
          establishes.  This bill authorizes SWRCB to expend monies in the  
          fund to implement the act, subject to appropriation for that  
          purpose.

          AB 1249 (Galgiani), Chapter 280, Statutes of 2009, created an  
          exception, upon the declaration of a state of emergency or a  
          local emergency, to the rules governing the transportation of  
          dead animals by licensed dead animal haulers, and extended the  
          sunset date to January 1, 2016, for the CDFA administration fee  
          for the Inedible Kitchen Grease Program. 
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Grain and Feed Association (Sponsor)
          Pacific Coast Rendering Association (Sponsor)
           
            Opposition 
           
          None on file.


           Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084