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  








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          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 








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            of roads, spoiled meat from supermarkets and used cooking oils 
            from restaurants. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081