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