BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1566
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 1566 (Holden) - As Amended:  May 7, 2014 

          Policy Committee:                               
          TransportationVote:15-0
                        Agriculture                             7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill conforms Food and Agricultural Code and Vehicle Code  
          provisions regarding definitions, enforcement, fines,  
          regulations, and transportation of inedible kitchen grease  
          (IKG). 
          Specifically, this bill:

          1)Recasts language dealing with refusal to issue an IKG  
            transport license, adds a violation of statutes or regulations  
            dealing with transportation of IKG to the reasons; and  
            describes the due process appeal if licensure is refused, and  
            describes a parallel appeal process if licensure is suspended  
            or revoked.

          2)Increases the fines for noncompliance with record-keeping  
            requirements as follows: for a first offense, from not less  
            than $500 to $1,000; for a second offense, from not less than  
            $1,000 to $5,000; and, for a third and subsequent offenses,  
            from not less than $2,000 to $10,000.

          3)Requires the California Department of Food and Agriculture  
            (CDFA) to adopt regulations describing the time period to  
            refuse a registration certificate based upon the number or  
            severity of violations, but no more than three years.

          4)Adds conforming IKG provisions to the Vehicle Code regarding  
            certain definitions and regulations for collection centers.

          5)Increases fine provisions in the Vehicle Code conforming to  
            (2) above.








                                                                  AB 1566
                                                                  Page  2


          6)Authorizes a peace officer to impound a vehicle for up to 15  
            days if the IKG transporter is involved in the theft or  
            illegal transport of IKG.  The registered or legal owner of  
            the vehicle may receive the vehicle prior to full impoundment  
            period if specific conditions are met.

          7)Requires each vehicle transporting IKG to have the proper  
            decals and identification information required by CDFA to be  
            affixed to each transporting vehicle, as specified.  

           FISCAL EFFECT  

          Any one-time costs to CDFA for regulations and ongoing costs to  
          CDFA and the CHP for enforcement will be minor and absorbable.

           
          COMMENTS  

           Background and Purpose  . Over the past 15 years IKG theft has  
          been a growing problem for state regulators and law enforcement  
          due to the low cost of equipment to haul IKG and the product's  
          value, which has increased up to fourfold, contingent on market  
          conditions. CDFA's Inedible Kitchen Grease Program (IKGP),  
          established in 1995, is the regulatory and enforcement entity  
          for the IKG industry.  The program's mission is to stop the  
          theft of IKG and related damage to IKG containers through  
          investigations and cooperation with local law enforcement and  
          local district attorneys.

          Law enforcement agencies have had confusion regarding their  
          enforcement role of IKG theft and illegal transportation.  AB  
          1566 is intended to clarify this role by adding to the Vehicle  
          Code provisions dealing with IKG and to increase enforcement and  
          penalties related to the illegal collection and transporting of  
          IKG. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081