BILL ANALYSIS                                                                                                                                                                                                    Ó







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              A
                             2011-2012 Regular Session               B

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          AB 2378 (Huber)                                            8
          As Amended March 29, 2012
          Hearing date: July 3, 2012
          Food and Agricultural Code; Vehicle Code
          MK:dl

                                RENDERING: ENFORCEMENT  

                                       HISTORY

          Source:  Pacific Coast Rendering Association

          Prior Legislation: SB 1738 (Kelley) - Chapter 394, Stats. 1998

          Support: Unknown

          Opposition:None known

          Assembly Floor Vote:  Ayes 75 - Noes 0



                                         KEY ISSUE
           
          SHOULD THE CRIMINAL FINES FOR VIOLATING SPECIFIED STATUTES AND 
          REGULATIONS REGARDING RENDERERS AND TRANSPORTERS OF INEDIBLE KITCHEN 
          GREASE BE RAISED?


                                       PURPOSE

          The purpose of this bill is to increase the fines for violations 
          of the renderers and transporters of inedible kitchen grease 




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          statutes and regulations;  provide court procedures for handling 
          appeals and judgments; expand the requirements for keeping 
          records for renderers, collection centers and transporters of 
          inedible kitchen grease; and make conforming changes to related 
          codes

           Existing law  requires any licensed renderer, collection center 
          operator, or transporter to keep specified records for one year 
          and failure to do so is a misdemeanor.  (Food and Agriculture 
          Code § 1903)

           This bill  would require that those records be kept for two 
          years.

           Existing law  provides that any person who violates specified 
          provisions in the Food and Agricultural Code and regulations 
          promulgating related to those sections shall be guilty of a 
          misdemeanor punishable by imprisonment in the county jail and a 
          fine of not more than $1,000. (Food and Agriculture Code § 
          19440)

           This bill  increases the fine to $5,000.

           Existing law  provides for the licensure and regulation of 
          renderers, operators of collection centers, and transporters of 
          inedible kitchen grease.  (Food & Agricultural Code Section 
          19220 et seq.)

           Existing law  requires renderers, collection center operators, 
          and transporters to retain for one year specified transaction 
          records reflecting sales and transport of inedible kitchen 
          grease.  (Food & Agricultural Code § 19306(a); Vehicle Code § 
          2462.)

           This bill  requires the records to be kept for two years.

           Existing law  specifies fines and jail, or both, for misdemeanor 
          violations of the above recordkeeping requirements, as provided, 
          including escalating fines for repeat offenses.  (Food & 
          Agricultural Code Section 19440, Vehicle Code Section 2468.)




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                                                            AB 2378 (Huber)
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           Existing law  provides that it is unlawful for any person to 
          engage in the transportation of inedible kitchen grease without 
          being registered with the Department of Food and Agriculture and 
          without being possession of a valid registration certificate 
          issued by that department. (Vehicle Code § 2470)
          
          Existing law  provides that it is unlawful for any person who is 
          not a registered transporter or licensed renderer of inedible 
          kitchen grease to transport that product from any place within 
          the state to any place outside the borders of this state. 
          (Vehicle Code § 2472)

           Existing law  provides that it is unlawful for any person to 
          steal, misappropriate, contaminate or damage inedible kitchen 
          grease or containers thereof. (Vehicle Code § 2474) 

           Existing law  provides that no licensed renderer, registered 
          transporter or any other person may take possession of inedible 
          kitchen grease from an unregistered transporter or knowingly 
          take possession of stolen inedible kitchen grease.  (Vehicle 
          Code § 2476)

           Existing law  provides that any person who is found guilty of 
          violation Section 2470, 2472, 2474 and 2476 or regulations 
          promulgated under those provisions is guilty of a misdemeanor 
          subject to imprisonment in the county jail for not more than one 
          year, or a fine of not more than $1,000 or both that 
          imprisonment and fine. If the conviction is a second or 
          subsequent violation or the violation was committed with the 
          intent to defraud it is a jail felony with a fine of not more 
          than $10,000.  (Vehicle Code § 2478)

           This bill  would make the fines for the above $5,000 for a first 
          offense and $15,000 for a second or subsequent or offense made 
          with the intent to defraud.

           Existing law  authorizes the Secretary of CDFA, in lieu of 
          seeking prosecution, to levy civil penalties for violations in 
          an amount not more than $1,000 for each violation.  It further 




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          provides an administrative hearing process for persons upon whom 
          a civil penalty has been levied to appeal the penalty, as 
          provided.  (Food & Agricultural Code §19447.)

           This bill  would make the civil penalty $5,000, and it lengthens 
          the time allowed for appeal..


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
                                      ("ROCA")
          
          In response to the unresolved prison capacity crisis, since 
          early 2007 it has been the policy of the chair of the Senate 
          Committee on Public Safety and the Senate President pro Tem to 
          hold legislative proposals which could further aggravate prison 
          overcrowding through new or expanded felony prosecutions.  Under 
          the resulting policy known as "ROCA" (which stands for 
          "Receivership/Overcrowding Crisis Aggravation"), the Committee 
          has held measures which create a new felony, expand the scope or 
          penalty of an existing felony, or otherwise increase the 
          application of a felony in a manner which could exacerbate the 
          prison overcrowding crisis by expanding the availability or 
          length of prison terms (such as extending the statute of 
          limitations for felonies or constricting statutory parole 
          standards).  In addition, proposed expansions to the 
          classification of felonies enacted last year by AB 109 (the 2011 
          Public Safety Realignment) which may be punishable in jail and 
          not prison (Penal Code section 1170(h)) would be subject to ROCA 
          because an offender's criminal record could make the offender 
          ineligible for jail and therefore subject to state prison.  
          Under these principles, ROCA has been applied as a 
          content-neutral, provisional measure necessary to ensure that 
          the Legislature does not erode progress towards reducing prison 
          overcrowding by passing legislation which could increase the 
          prison population.  ROCA will continue until prison overcrowding 
          is resolved.

          For the last several years, severe overcrowding in California's 
          prisons has been the focus of evolving and expensive litigation. 
           On June 30, 2005, in a class action lawsuit filed four years 




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          earlier, the United States District Court for the Northern 
          District of California established a Receivership to take 
          control of the delivery of medical services to all California 
          state prisoners confined by the California Department of 
          Corrections and Rehabilitation ("CDCR").  In December of 2006, 
          plaintiffs in two federal lawsuits against CDCR sought a 
          court-ordered limit on the prison population pursuant to the 
          federal Prison Litigation Reform Act.  On January 12, 2010, a 
          three-judge federal panel issued an order requiring California 
          to reduce its inmate population to 137.5 percent of design 
          capacity -- a reduction at that time of roughly 40,000 inmates 
          -- within two years.  The court stayed implementation of its 
          ruling pending the state's appeal to the U.S. Supreme Court.































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          On May 23, 2011, the United States Supreme Court upheld the 
          decision of the three-judge panel in its entirety, giving 
          California two years from the date of its ruling to reduce its 
          prison population to 137.5 percent of design capacity, subject 
          to the right of the state to seek modifications in appropriate 
          circumstances.  Design capacity is the number of inmates a 
          prison can house based on one inmate per cell, single-level 
          bunks in dormitories, and no beds in places not designed for 
          housing.  Current design capacity in CDCR's 33 institutions is 
          79,650.

          On January 6, 2012, CDCR announced that California had cut 
          prison overcrowding by more than 11,000 inmates over the last 
          six months, a reduction largely accomplished by the passage of 
          Assembly Bill 109.  Under the prisoner-reduction order, the 
          inmate population in California's 33 prisons must be no more 
          than the following:

                 167 percent of design capacity by December 27, 2011 
               (133,016 inmates);
                 155 percent by June 27, 2012;
                 147 percent by December 27, 2012; and
                 137.5 percent by June 27, 2013.
               
          This bill does not aggravate the prison overcrowding crisis 
          described above under ROCA.


                                      COMMENTS
          1.   Need for This Bill  

               With the increase in demand for inedible kitchen grease 
               to use as biofuel as well as the rising prices for all 
               commodities, there has been a significant increase in 
               the cases of theft of inedible kitchen grease.  

               When reviewing enforcement procedures and penalties 
               with California Department of Food and Agriculture and 
               local law enforcement representatives, it was 




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               recognized that the current penalty structure for 
               violating the law is too low and has become a "cost of 
               doing business" for some offenders.

               This bill will increase the penalties for violations of 
               the Food and Agricultural Code and the Vehicle Code 
               sections that govern inedible kitchen grease theft, 
               licensing and manifestation.  
               Specifically, the bill increases from one year to two, 
               the time period in which an offender is considered a 
               repeat offender if caught violating the code more than 
               once.  Additionally it increases specific penalty 
               provisions from a $1,000 fine to $5,000 and from 
               $10,000 to $15,000 for repeat violators.  
          2.   Increased Fines  

          Existing law creates misdemeanor fines for people who violate 
          Food and Agricultural Code provisions relating to rendering, 
          inedible kitchen grease, etcetera.  Currently the fines are 
          $1,000 (approximately $3,800 with penalty assessments) and 
          $10,000 ($38,000 with penalty assessments) if the offense is 
          committed with the intent to defraud.<1>  This bill would 
          increase those fines to $5,000 (approximately $19,000 with 
          penalty assessments) and $15,000 (approximately $57,000 with 
          penalty assessments).

          Existing law also makes specified Vehicle Code violations 
          related to the transportation of inedible kitchen grease a 
          misdemeanor with a $1,000 fine (approximately $3,800 with 
          penalty assessments) for a first offense and a jail felony with 
          a fine of $10,000 (approximately $38,000 with penalty 
          assessments) for a repeat violation or a repeat violation with 
          the intent to defraud.  This bill would increase the misdemeanor 
          ---------------------------
          <1> Until the budget year 2002-2003, there was 170% in penalty 
          assessments applied to every fine, the current penalty 
          assessments are approximately 280%. (See Penal Code § 1464; 
          Penal Code § 1465.7; Penal Code § 1465.8 Government Code § 
          70372; Government Code § 7600.5 Government Code § 76000 et seq; 
          Government Code § 76104.6)  












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          to $5,000 (approximately $19,000 with penalty assessments) and 
          the felony fine to $15,000 (approximately $57,000 with penalty 
          assessments).

          Are these increased fines appropriate?

          3.   Senate Agriculture Committee  

          This bill passed Senate Agriculture Committee on June 19, 2012 
          with a vote of 7-0.



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