BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 2378
                                                               Page  1

       Date of Hearing:   April 11, 2012

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                    AB 2378 (Huber) - As Amended:  March 29, 2012
        
       SUBJECT  :  Rendering: enforcement.

        SUMMARY  :  Increases the fines for violations of the renderers and 
       transporters of inedible kitchen grease statutes and regulations; 
       provides court procedures for handling appeals and judgments; expands 
       the requirements for keeping records for renderers, collection centers 
       and transporters of inedible kitchen grease; and, makes conforming 
       changes to related codes.  Specifically,  this bill  :  

       1)Adds fines or county jail, or both fines and county jail, for any 
         licensed renderer or collection center who fails to keep records in 
         accordance with this article; expands from one year to two years the 
         requirement for any renderer, collection center operator, or 
         transporter, to provide any peace officer or employee of the 
         California Department of Food and Agriculture (CDFA) any written 
         record required by this article or who has destroyed such records 
         before two years.

       2)Increases the fines for violations of this chapter of not more than 
         $1,000 up to not more than $5,000, but if the violation occurs after 
         a conviction under this section or was committed with the intent to 
         defraud or mislead, the fine is increased from not more than $10,000 
         to not more than $15,000.

       3)Increases CDFA's civil penalty, for violations of the statutes or 
         regulations of rendering or collections' center's licensure, or 
         registration by transporters of inedible kitchen grease, from not 
         more than $1,000 to not more than $5,000.

       4)Increases the appeal period for any person, upon receiving 
         notification of a civil penalty, 
       from 10 days to 20 days of receipt.  

       5)Creates a procedure for the courts, should any penalized person not 
         file a petition for a writ of administrative mandamus, upon 
         receiving a certified copy of CDFA's final decision, requiring the 
         courts to enter a judgment in favor of CDFA.

       6)Upon completion of the appeal process provided in this section, CDFA 
         may file a certified copy of CDFA's final decision that directs 







                                                               AB 2378
                                                               Page  2

         payment of a civil penalty, and other applicable documents, with the 
         Superior Court Clerk of the county of jurisdiction.  Prohibits a 
         Superior Court Clerk to charge any fees for the performance of entry 
         of such judgment.

       7)Conforms the Vehicle Code to changes in the Food and Agricultural 
         Code (#1 and #2 above) by increasing from one year to two years the 
         requirement of keeping specified records for licensed renderers and 
         transporters of inedible kitchen grease and increases the fines for 
         violations of such from not more than $1,000 to not more than 
         $5,000.

       8)Legislative Counsel has included a non-reimbursement mandate clause.

        EXISTING LAW  , in the Food and Agricultural Code (FAC), provides for 
       the licensure or registration of pet food processors, importers of 
       meats for pet food, renderers, transporters of inedible kitchen 
       grease, dead haulers, slaughterers, and collection centers, and 
       provides for denial, revocation or suspension of licenses or 
       registration.  Statutes provide definitions, establish license and 
       registration requirements and fees, establish record keeping 
       requirements, authorize inspections and states violations, make it a 
       crime to steal or contaminate inedible kitchen grease, jail and/or 
       fines and appeal processes for violations, and authorize the adoption 
       of rules or regulations to carry out the purpose of the statutes.  
       Current record keeping requirements are for one year for renderers, 
       transporters of inedible kitchen grease and collection centers, and 
       two years for renderers transporting inedible kitchen grease.

       The Vehicle Code almost mirrors the language for renderers and 
       transporters of inedible kitchen grease as the FAC, except for 
       licensing and registration, as described above, and requires a license 
       or registration issued by CDFA. 

        FISCAL EFFECT  :  Unknown.  Legislative Counsel has keyed this bill 
       fiscal.

        COMMENTS  :  According to the bill's author, "... with increased demand 
       for inedible kitchen grease to use as biofuel and animal feed, as well 
       as the rising prices for all commodities, there has been a significant 
       increase in the theft of such grease.  ... CDFA and local law 
       enforcement representatives recently reviewed the current enforcement 
       and penalties of this theft and determined that the current penalty 
       structure is too low and now considered the cost of doing business for 
       some offenders."








                                                               AB 2378
                                                               Page  3

       The cost of entry into hauling inedible kitchen grease is low, so when 
       prices for it increase, thieves see an opportunity for quick profits.  
       The Legislature has dealt with several policy issues on this grease 
       over the last decade (see Previous Legislation below).  In 1998, an 
       article was added to the Department of Highway Patrol's code in the 
       Vehicle Code that mirrored the Food and Agricultural Code (FAC) to 
       deal with renderers and transporters of inedible kitchen grease, to 
       address concerns from the Patrol that they did not have the authority 
       to enforce FAC.  However, these crimes typically have a fiscal impact 
       to the rendering industry, but not bodily injury, so it is a lower 
       concern for law enforcement.  Further, with local and state law 
       enforcement personnel being reduced statewide, enforcement will 
       continue to be a problem.  CDFA has a limited enforcement staff.

       The most recent rendering legislation created a formal rendering 
       advisory board made up of industry members and including a public 
       member with experience in water quality, publicly owned treatment 
       works and water infrastructure, or law enforcement.  The purpose of 
       this member is to assist CDFA in dealing with issues of theft, illegal 
       dumping and contamination of water sources and public treatment works.

       The committee may wish to consider if the increase of one year for 
       record keeping, and if the adding jail and/or a fine for the failure 
       to keep records for two years, as well as the significant increases in 
       levels of fines for violations, will be sufficient to deter thiefs of 
       inedible kitchen grease.  The issue of theft of inedible kitchen 
       grease is a problem across the nation.

        PREVIOUS LEGISLATION  :  SB 513 (Canella), Chapter 337, Statutes of 
       2011, created the Rendering Industry Advisory Board, including 
       membership and duties, and reauthorized the licensing of renderers and 
       the collection of fees to sunset January 1, 2016.

       AB 2612 (Committee on Agriculture), Chapter 393, Statutes of 2010, the 
       Committee Omnibus bill included, among other provisions, expanded 
       rendering definitions of a "collection center," changed the collection 
       centers' licensure expiration date, and exempted collection centers 
       from specified fees.

       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.  








                                                               AB 2378
                                                               Page  4

       AB 1846 (Adams), Chapter 321, Statutes of 2008, exempted individuals 
       that collect and haul inedible kitchen grease for their sole personal 
       use as vehicle fuel for non-commercial purposes in loads limited to no 
       more than 50 gallons, from the additional per vehicle fee authorized 
       to fund the administrative costs for the program, while requiring them 
       to meet all other current requirements.

       AB 1065 (Matthews), Chapter 533, Statutes of 2005, authorized CDFA to 
       establish a method for tracking inedible kitchen grease; defined 
       "interceptor grease"; separated requirements for licensed renders and 
       transporters; required transporters to be insured; changed the 
       suspension or revocation of a license or registration; expanded the 
       conditions that may lead to a suspension or revocation of a license or 
       registration; and, made related technical changes.

       AB 2633 (Frommer), Vetoed by the Governor, Session of 2004, created 
       the Interceptor Grease Transportation, Recycling and Disposal Act of 
       2004; provided legislative intent language; established new and 
       expands existing definitions; established a new registration process 
       to transport or manage interceptor grease, including the authority to 
       deny, suspend or revoke a registration based upon specified 
       conditions; created a new crime to transport or manage interceptor 
       grease unless by a registrant; specified requirements for removal of 
       grease; required specified manifest procedure and reporting 
       requirements; designated who may receive interceptor grease and its 
       use; and, established penalties.

       AB 1071 (Matthews), Chapter 929, Statutes of 2004, among other 
       provisions, extended the sunsets to 2011 for the licensing of 
       renderers and collection centers and the registration of transporters 
       of inedible kitchen grease and collection centers; permitted the use 
       of rendered products in accordance with the United States Food and 
       Drug Administration rules and regulations; and, required a registrant 
       to notify a county health officer when a contract is terminated or 
       expires.

       AB 2981 (Committee on Agriculture), Chapter 337, Statutes of 2002, the 
       committee Omnibus Bill, included, among other provisions, expanded the 
       definition of a transporter for inedible kitchen grease and rendering 
       to include those engaged in similar activities.

        REGISTERED SUPPORT / OPPOSITION  :   

        Support 
        
       Pacific Coast Renderers Association (Co-Sponsor)







                                                               AB 2378
                                                               Page  5

       California Grain and Feed Association (Co-Sponsor)

        Opposition 
        
       None on file.
        

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