BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 513|
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UNFINISHED BUSINESS
Bill No: SB 513
Author: Cannella (R)
Amended: 7/1/11
Vote: 21
SENATE AGRICULTURE COMMITTEE : 7-0, 5/3/11
AYES: Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas,
Wolk
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/16/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Runner, Steinberg
SENATE FLOOR : 39-0, 5/31/11
AYES: Alquist, Anderson, Blakeslee, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson,
Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff,
Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete
McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian,
Steinberg, Strickland, Vargas, Walters, Wolk, Wright,
Wyland, Yee
NO VOTE RECORDED: Berryhill
ASSEMBLY FLOOR : 73-0, 8/25/11 - See last page for vote
SUBJECT : Renderers and farmers markets: regulatory fees
SOURCE : California Grain and Feed Association
Pacific Coast Rendering Association
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DIGEST : This bill (1) creates a Rendering Industry
Advisory Board, including membership and duties, (2)
reinstates the renderer enforcement program at the
Department of Food and Agriculture (CDFA) and the ability
of CDFA to impose administrative fees on renderers and
collection centers in connection with animal rendering
until July 1, 2015, and (3) extends the sunset date for the
certified farmers' market operator fees collected by CDFA
and the enforcement article for civil penalties and appeal
provisions to January 1, 2014.
Assembly Amendments establish a Rendering Industry Advisory
Board, and
change the sunset date for provisions relating to certified
farmers' markets to January 1, 2014.
ANALYSIS : Existing law (1) defines "rendering" and
requires every person engaged in the business of rendering
to obtain a license from the CDFA for each rendering plant,
(2) establishes the qualifications for obtaining that
license, and (3) authorizes a peace officer or any employee
of CDFA to inspect any premises maintained by a renderer
that is licensed pursuant to these provisions.
This bill establishes a Rendering Industry Advisory Board
(RIAB) to advise and make recommendations to the Secretary
of CDFA regarding, among other things, licensing matters,
regulations, procedures for employment, training,
supervision, and compensation of inspectors and other
personnel, and the rate and collection of license fees and
penalties related thereto. The RIAB will consist of seven
members, appointed by the Secretary of CDFA, six of whom
are licensed pursuant to the provisions described above and
are subject to payment of the rendering program licensing
fees. This bill specifies the term of office of members,
and meeting requirements, of the RIAB. This bill requires
the Secretary, in adopting regulations and procedures, to
accept the recommendations of the RIAB if he/she finds them
to be practicable and in the interest of the rendering
industry and the public.
Existing law (1) requires every person engaged in the
business of rendering or of operating a collection center
to obtain a license from CDFA, as specified, (2) regulates
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transporters of inedible kitchen grease, (3) provides an
operative date until January 1, 2010, and a repeal date of
January 1, 2011, and (4) authorizes the collection of
administrative fees, as specified, from renderers and
collection centers in connection with rendering.
This bill reinstates the renderer enforcement program at
CDFA and the ability of CDFA to impose administrative fees
on renderers and collection centers in connection with
animal rendering until July 1, 2015.
Existing law (1) requires, until January 1, 2012, that
every operator of a certified farmers' market remit to CDFA
a fee equal to the number of agricultural producers
participating on each market day for the entire previous
quarter to be used by CDFA upon appropriation by the
Legislature, as specified, (2) provides that California
farmers may transport for sale and sell California-grown
fresh fruits, nuts, and vegetables that they produce
directly to the public at a certified farmers' market, as
specified, and provides that it is unlawful for any person
operating under these provisions to commit certain acts
related to the conduct of farmers' markets, and
(3) provides that, until January 1, 2012, in lieu of
prosecution, but not precluding suspension or revocation of
certified producer's certificates or certified farmers'
market certificates, the CDFA Secretary or the county
commissioner may levy a civil penalty against a person who
violates these provisions or any regulation implemented
pursuant to these provisions, as specified.
This bill extends the sunset date for the certified
farmers' market operator fees collected by CDFA and the
enforcement article for civil penalties and appeal
provisions to January 1, 2014.
Background
CDFA, funded by licensing fees, oversees health and safety
practices of licensed renderers, transporters, and
collection centers. The fees are set by the Secretary and
by statute. The authority to collect licensing fees was
sunsetted out on July 1, 2010, and was repealed on January
1, 2011.
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The Certified Farmers' Market (CFM) program enables farmers
to directly sell their produce to consumers under the
Direct Marketing Law. Originally, the CFM program was
funded from the General Fund at approximately $120,000
annually for state oversight, dispute resolution, and
enforcement. However, in the early 1990s, the General Fund
dollars were eliminated. Following a period of meager
funding through a certification charge for participating
farmers, the Legislature authorized an operator's fee in
1999. CDFA collects the fee from the CFM operator based on
a per stall fee. The fee revenue supports the county
agricultural commissioner who issues the certificates to
the producer and the market operator and conducts
inspection and enforcement activities at the markets. The
operator fee and enforcement provisions are due to sunset
on January 1, 2012. The sunset provision for enforcement
and fees has already been extended multiple times by the
Legislature.
Comments
According to the author's office, 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 CFMs' 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.
Prior legislation . AB 2676 (Assembly Agriculture
Committee), Chapter 440, Statutes of 2006, extended the
sunset for the fees.
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FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee,
extension of the rendering collection program will generate
approximately $216,000 in Special Funds (SF); the CFM
program extension will generate approximately $220,000 in
SF; and the cost for the RIAB should be minor and
absorbable from SFs.
SUPPORT : (Verified 8/25/11)
California Grain and Feed Association (co-source)
Pacific Coast Rendering Association (co-source)
California Certified Organic Farmers
California Farm Bureau Federation
ARGUMENTS IN SUPPORT : According to the bill's sponsors,
this bill provides the necessary funding for the California
Rendering Program and CFM Program with CDFA. Reenacting
the funds for the rendering program ensures that these
products are appropriately transported, handled, and
recycled and helps prevent theft and illegal distribution,
which could impact animal and human health. Farmers'
markets are a valuable part of the state's agriculture
market, providing a direct link from the farmer to the
consumer. Under California's unique CFM Program, consumers
and the integrity of the markets are protected. Recently,
farmer's markets have come under fire following an NBC-LA
investigative report which found several farmers' market
vendors making false claims about their produce. The
extension of the sunset date enables the industry to
continue to evaluate and review the effectiveness of the
enforcement provisions and of the industry self-regulation
and funding.
ASSEMBLY FLOOR : 73-0, 8/25/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Campos, Carter, Cedillo, Chesbro,
Conway, Cook, Davis, Dickinson, Eng, Feuer, Fletcher,
Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick,
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Gatto, Grove, Hagman, Harkey, Hayashi, Roger Hernández,
Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight,
Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Bonilla, Charles Calderon, Donnelly,
Gordon, Gorell, Halderman, Hall
MEL:mw 8/26/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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