BILL ANALYSIS Ó SB 513 Page 1 Date of Hearing: August 17, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 513 (Cannella) - As Amended: July 1, 2011 Policy Committee: AgricultureVote:9 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill creates the Rendering Industry Advisory Board (RIAB) within the California Department of Agriculture (CDFA). Specifically, this bill: 1)Creates a seven member RIAB, appointed by the Secretary of the California Department of Food and Agriculture (CDFA), of which six must be renderers licensed by CDFA and one must be a member of the public. 2)Authorizes CDFA to adopt regulations and procedures to be used by RIAB to administer this statute. Pursuant to these regulations, CDFA is required to accept the recommendations of RIAB if they find them to be practicable and in the interest of the rendering industry and the public. Requires CDFA, within 30 days of receiving any RIAB recommendations, to notify RIAB of their acceptance or provide a written statement of reasons they were not accepted. 3)Reinstates an additional fee, which sunset on January 1, 2011, of not more than $3,000 per year on each licensed rendering plant or collection center or transporter of inedible kitchen grease, to cover the reasonable cost of administering this statute. Unpaid fees are subject to a penalty of 10% per annum. This authority will sunset on July 1, 2016. 4)Extends the sunset for Certified Farmers' Market (CFM) fees until January 1, 2014. FISCAL EFFECT SB 513 Page 2 1)CDFA estimates that the fees contained in this legislation for the Rendering Enforcement Program would generate an additional $216,000 in revenue. These fees were previously in statute but sunset on January 1, 2011. 2)Funding for RIAB should be minor and absorbable within existing Rendering Enforcement Program funds. 3)The CFM Marketing Program generates approximately $220,000 in revenue annually. 4)The fees paid for both these programs are deposited in the Department of Food and Agriculture Fund, a continuously appropriated fund. By increasing moneys in a continuously appropriated fund, this bill would make an appropriation. COMMENTS 1)Rationale . According to the author, the creation of RIAB will provide better oversight of the industry and deal with issues on enforcement, fees, and management of the program, while advising CDFA on these matters. The re-enactment of the authority to collect fees for enforcement purposes is essential for maintaining enforcement practices in the state. Additionally, this bill extends sunset dates for CFM fee authority and for violations and enforcement authority for two years. Typically, sunsets are extended for five years, but the author, in response to recent reports of vendors being in violation of the statutes, and the CFM advisory committee releasing a report critical of CDFA's enforcement abilities and actions, has reduced the extension date in an effort to cause the industry to expedite discussions on how to better enforce the CFM's program's standards and statutes. 2)Animal Rendering Plants separate the fat, bone and protein of dead animals and process the materials for reuse. Bone and protein from the animals is reduced into a powder that can be used for pet food and other feedstock. Fat from the animals is turned into tallow which can then be used for such products as candles, soap and lubricants. Rendering plants take in a wide variety of materials such as parts of slaughtered animals that are not suitable for human consumption, dead pets from veterinarians, dead livestock, animals found dead on the sides SB 513 Page 3 of roads, spoiled meat from supermarkets and used cooking oils from restaurants. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081