BILL ANALYSIS Ó SENATE COMMITTEE ON PUBLIC SAFETY Senator Loni Hancock, Chair A 2011-2012 Regular Session B 2 3 7 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 (More) AB 2378 (Huber) PageB 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.) (More) AB 2378 (Huber) PageC 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 (More) AB 2378 (Huber) PageD 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 (More) AB 2378 (Huber) PageE 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. (More) 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 (More) AB 2378 (Huber) PageG 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) AB 2378 (Huber) PageH 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. ***************