BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2378| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2378 Author: Huber (D) Amended: 3/29/12 in Assembly Vote: 21 SENATE AGRICULTURE COMMITTEE : 7-0, 6/19/12 AYES: Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas, Wolk SENATE PUBLIC SAFETY COMMITTEE : 5-0, 7/3/12 AYES: Hancock, Anderson, Liu, Price, Steinberg NO VOTE RECORDED: Calderon, Harman SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 75-0, 5/17/12 (Consent) - See last page for vote SUBJECT : Rendering: enforcement SOURCE : California Grain and Feed Association Pacific Coast Rendering Association DIGEST : This bill increases civil and criminal fines for specified violations relating to the transport and recordkeeping of inedible kitchen grease. ANALYSIS : Existing law: CONTINUED AB 2378 Page 2 1. Defines "rendering" as the recycling, processing and conversion of animal and fish materials and carcasses and inedible kitchen grease into fats, oils and proteins used primarily as feed for the animal and pet food industries. 2. Provides for the licensure and regulation of renderers, operators of collection centers, and transporters of inedible kitchen grease. 3. Requires renderers, collection center operators, and transporters to retain specified written records reflecting sales and transport of inedible kitchen grease for one year. 4. Specifies fines and jail, or both, for misdemeanor violations of the recordkeeping requirements, including escalating fines for repeat offenses. 5. Authorizes the Secretary of the Department of Food and Agriculture (CDFA), in lieu of seeking civil prosecution, to levy civil penalties for violations in an amount not to exceed $1,000 for each violation. Provides administrative hearing process for persons upon whom a civil penalty has been levied to appeal the penalty. 6. Conforms the Vehicle Code to the above Food and Agriculture Code regulations for renderers and transporters of inedible kitchen grease. 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 existing requirements. 2. Expands, from one year to two years, the period of time that renderers, collection center operators, and transporters, must retain, and are prohibited from destroying, specified transaction records reflecting sales and transport of inedible kitchen grease. CONTINUED AB 2378 Page 3 3. Increases the maximum fines (up to $5,000) for specified violations of existing law, but authorizes even greater maximum penalties (up to $15,000) for any violation that occurs after a previous conviction or that was committed with the intent to defraud or mislead. 4. Increases the maximum civil penalty, as assessed by the Secretary of CDFA, from $1,000 to $5,000, for specified violations of the licensing and transport statutes relating to rendering and transport of inedible kitchen grease. 5. Increases the appeal period for any person, upon receiving notification of a civil penalty, from 10 days to 20 days. 6. Provides that, should any penalized person not file a petition for a writ of administrative mandamus, the court, upon receiving a certified copy of CDFA's final decision that directs payment of a civil penalty, shall enter a judgment in favor of CDFA. 7. Authorizes the Secretary of CDFA, upon completion of the appeal procedure provided in this section, to file with the court a copy of the department's final decision and, if applicable, an order denying a petition for writ of administrative mandamus. Prohibits a clerk of the superior court from charging any fees for the performance of entry of such judgment. 8. Makes conforming changes to the Vehicle Code relating to similar requirements that apply to licensed renderers and transporters of inedible kitchen grease. Background Inedible (used) kitchen grease has become a valuable commodity in the last decade, especially in light of rising gasoline prices and corresponding growth in the biodiesel fuel industry. Recycling an otherwise "grimy waste product" into a valuable feed or biofuel resource is attractive and profitable. According to a recent article, inedible kitchen grease is traded in commodity markets and CONTINUED AB 2378 Page 4 its value has skyrocketed from $0.66 per gallon in April 2001 to $3.68 per gallon in April 2011. ("Grease is gold; thieves get bold." News & Observer, NC. June 1, 2011) Comments According to the author's office, current penalty provisions for the theft of inedible kitchen grease are inadequate to deter this growing crime. In recognition of the limited enforcement capabilities of CDFA and the low priority that law enforcement officers understandably may assign to theft of inedible kitchen grease, the proposed increased penalties have been argued necessary to deter theft and future offenses. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/6/12) California Grain and Feed Association (co-source) Pacific Coast Rendering Association (co-source) ASSEMBLY FLOOR : 75-0, 5/17/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, V. Manuel Pérez, Portantino, Silva, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, John A. Pérez NO VOTE RECORDED: Fletcher, Bonnie Lowenthal, Perea, Skinner, Yamada MEL:m 8/6/12 Senate Floor Analyses CONTINUED AB 2378 Page 5 SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED