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