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