Amended in Senate June 15, 2016

Amended in Senate July 1, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 655


Introduced by Assembly Member Quirk

February 24, 2015


An act to amend Sections 19227, 19312, and 19315 of, and to add Section 19300.1 to, the Food and Agricultural Code, relating to rendering, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 655, as amended, Quirk. Rendering: inedible kitchen grease: registration fee: additional fees.

(1) Existing law regulates rendering, which is defined as the recycling, processing, and conversion of, among other things, inedible kitchen grease. Existing law, operative until July 1, 2020, authorizes the Department of Food and Agriculture, in addition to the license fee, to charge each licensed renderer and collection center an additional fee to cover the reasonable costs of administering provisions regulating renderers, collection centers, and transporters of inedible kitchen grease, and requires that the additional fees may not exceed $3,000 per year.

This bill would increase the maximum amount of these additional fees to $10,000 per year.

(2) Existing law requires transporters of inedible kitchen grease to be registered and to pay a $100 registration fee. Existing law, operative until July 1, 2020, authorizes the department, except as specified, to charge an additional fee not to exceed $300 per year per vehicle that is operated to transport kitchen grease for purposes of administering the provisions regulating these transporters, up to a maximum of $3,000 per year per registered transporter.

This bill would increase the registration fee for transporters of inedible kitchen grease to not to exceed $250. The bill would also increase the additional fee to not to exceed $500 per year per vehicle that is operated to transport kitchen grease and the maximum to not exceed $10,000 per year per registered transporter.

(3) This bill would also authorize the Secretary of Food and Agriculture, based upon the findings and recommendation of the Rendering Industry Advisory Board, to determine the additional fee amounts, as described above under (1) and (2), necessary to provide the revenue needed to carry out these provisions. The bill would require the secretary and the board to not exceed the maximum amount for additional fees authorized pursuant to these provisions. The bill would provide that the secretary shall only have the authority to raise an additional fee upon recommendation of the board. The bill would exempt the setting of these additional fees from the requirements of the Administrative Procedure Act.

(4) Existing law requires fees collected pursuant to these provisions to be deposited into the Department of Food and Agriculture Fund and continuously appropriates the collected funds for the purposes described above.

By increasing these additional fees and the registration fee for transporters of inedible kitchen grease, which are deposited into a continuously appropriated fund, the bill would make an appropriation.

(5) This bill would also make related findings and declarations regarding the rendering industry and the process of rendering and would require, to thebegin delete maximumend delete extent feasible, the Department of Food andbegin delete Agriculture, the State Department of Public Health, the State Air Resources Board, and CalRecycleend deletebegin insert Agricultureend insert to consider thebegin insert regionalend insert “highest and best use” ofbegin delete food materialend deletebegin insert unprocessed mammalian, poultry, fish material,end insert andbegin delete animal and agricultural byproductsend deletebegin insert inedible kitchen grease from inspected establishments, retail stores, custom slaughterers, and custom processorsend insert when developing regulations and policies governing the handling and recycling ofbegin delete organic food waste and animal byproductsend deletebegin insert theseend insert regulatedbegin delete by the Department of Food and Agriculture.end deletebegin insert materials and establishments.end insert

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin delete
P3    1

SECTION 1.  

Section 19300.1 is added to the Food and
2Agricultural Code
, to read:

3

19300.1.  

(a) The Legislature finds and declares all of the
4following:

5(1) The rendering industry is a critical health and safety
6infrastructure for California. Rendering is an effective tool to
7eliminate many human and animal disease pathogens, protect our
8groundwater and air resources, and greatly reduce greenhouse gas
9emissions compared to other alternative disposal options.

10(2) Rendering is the process of recycling waste animal tissue
11into stable, value-added materials. Each year rendering recycles
12approximately 59 billion pounds of perishable material generated
13by the meat and poultry processing, food processing, supermarket,
14and restaurant industries. The rendering industry turns this material
15into valuable ingredients such as biofuels, various soaps, paints
16and varnishes, cosmetics, explosives, toothpaste, pharmaceuticals,
17leather, textiles, and lubricants used daily in most households.

18(3) Organic and food waste recycling is an important activity
19that if implemented properly can increase carbon capture and
20reduce carbon emissions, increase food safety, maintain the animal
21health system, and provide valuable recycled byproducts in an
22economically and environmentally sustainable manner. Food
23material and animal and agricultural byproducts have specific
24values and risks requiring special handling that other organic
25materials may not.

26(b) Therefore, to the maximum extent feasible, the department,
27the State Department of Public Health, the State Air Resources
28Board, and CalRecycle shall consider the “highest and best use”
29of these materials when developing regulations and policies
30governing the handling and recycling of organic food waste and
31animal byproducts regulated by the department pursuant to this
32chapter.

end delete
33

begin deleteSEC. 2.end delete
34
begin insertSECTION 1.end insert  

Section 19227 of the Food and Agricultural Code
35 is amended to read:

36

19227.  

(a) In addition to the license fee required pursuant to
37Section 19225, the department may charge each licensed renderer
38and collection center an additional fee necessary to cover the
P4    1reasonable costs of administering Article 6 (commencing with
2Section 19300) and Article 6.5 (commencing with Section 19310).
3The additional fees authorized to be imposed by this section may
4not exceed ten thousand dollars ($10,000) per year per each
5licensed rendering plant or collection center.

6(b) The secretary may, based upon the findings and
7recommendation of the Rendering Industry Advisory Board,
8determine the additional fee amounts necessary to provide the
9revenue needed to carry out the provisions of this chapter specified
10in subdivision (a). The secretary and the Rendering Industry
11Advisory Board shall not exceed the maximum amount for
12additional fees authorized pursuant to subdivision (a). Setting the
13additional fee or fees shall not be subject to Chapter 3.5
14(commencing with Section 11340) of Part 1 of Division 3 of Title
152 of the Government Code. The secretary shall only have the
16authority to raise an additional fee pursuant to this section upon
17recommendation of the Rendering Industry Advisory Board.

18(c) The secretary shall fix the additional fee amounts established
19pursuant to this section and may fix different fees for renderers
20and collection centers. If an additional fee is imposed on licensed
21renderers pursuant to subdivision (a) and an additional fee is
22imposed on registered transporters pursuant to subdivision (a) of
23Section 19315, only one additional fee may be imposed on a person
24or firm that is both licensed as a renderer pursuant to Article 6
25(commencing with Section 19300) and registered as a transporter
26of inedible kitchen grease pursuant to Article 6.5 (commencing
27with Section 19310), which fee shall be the higher of the two fees.

28(d) If the additional fee established pursuant to this section is
29not paid within one calendar month of the date it is due, a penalty
30shall be imposed in the amount of 10 percent per annum on the
31amount of the unpaid fee.

32(e) This section shall become inoperative on July 1, 2020, and,
33as of January 1, 2021, is repealed, unless a later enacted statute
34that becomes operative on or before January 1, 2021, deletes or
35extends the dates on which it becomes inoperative and is repealed.

36begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 19300.1 is added to the end insertbegin insertFood and Agricultural
37Code
end insert
begin insert, to read:end insert

begin insert
38

begin insert19300.1.end insert  

(a) The Legislature finds and declares all of the
39following:

P5    1
(1) The rendering industry is a critical health and safety
2infrastructure for California. Rendering is an effective tool to
3eliminate many human and animal disease pathogens, protect our
4groundwater and air resources, and greatly reduce greenhouse
5gas emissions compared to other alternative disposal options.

6
(2) Rendering is the process of recycling waste animal tissue
7into stable, value-added materials. Each year rendering recycles
8approximately 59 billion pounds of perishable material generated
9by the meat and poultry processing, food processing, supermarket,
10and restaurant industries. The rendering industry turns this
11material into valuable ingredients including biofuels, various
12soaps, paints, varnishes, cosmetics, explosives, toothpaste,
13pharmaceuticals, leather, textiles, and lubricants used daily in
14most households.

15
(b) Therefore, to the extent feasible, the department shall
16consider the regional “highest and best use” of unprocessed
17mammalian, poultry, fish material, and inedible kitchen grease
18from inspected establishments, retail stores, custom slaughterers,
19and custom processors when developing regulations and policies
20governing the handling and recycling of these regulated materials
21and establishments.

end insert
22

SEC. 3.  

Section 19312 of the Food and Agricultural Code is
23amended to read:

24

19312.  

(a) Registration shall be made with the department and
25shall include all of the following:

26(1) The applicant’s name and address.

27(2) A description of the operations to be performed by the
28applicant.

29(3) The vehicles to be used in the transportation.

30(4) A registration fee not to exceed two hundred fifty dollars
31($250).

32(5) A list of the names of the drivers employed by the transporter
33who transport inedible kitchen grease subject to this article and
34their drivers’ license numbers.

35(6) Any other information that may be required by the
36department.

37(b) Any renderer or collection center that registers pursuant to
38this article is not required to pay the fee prescribed in this section.

P6    1(c) The department may refuse to issue an original or renewal
2registration certificate to an applicant for either of the following
3reasons:

4(1) The existence of the grounds specified in subdivisions (a)
5to (e), inclusive, of Section 19314.

6(2) A failure to pay, in full by the established due date, any
7penalty levied by the department for a previous violation of this
8article or Article 6 (commencing with Section 19300).

9(d) (1) The applicant may appeal the decision of the department
10to refuse to register the applicant.

11(2) The department shall establish procedures for the appeals
12process, to include a noticed hearing.

13(3) The department may reverse a decision to refuse to register
14the applicant, upon a finding of good cause to do so.

15(e) The department shall adopt regulations that specify the
16maximum time period for which a refusal of registrations may be
17imposed, based on the severity or the number of violations that
18are the basis of the department’s action. The time period for the
19refusal of registration shall not exceed three years from the date
20the refusal of registration is imposed.

21

SEC. 4.  

Section 19315 of the Food and Agricultural Code is
22amended to read:

23

19315.  

(a) Except as provided in subdivision (c), in addition
24to the registration fee required by Section 19312, the department
25may charge a fee necessary to cover the costs of administering this
26article. Any additional fee charged pursuant to this section shall
27not exceed five hundred dollars ($500) per year per vehicle that
28is operated to transport kitchen grease, and shall not exceed ten
29thousand dollars ($10,000) per year per registered transporter.

30(b) The secretary may, based upon the findings and
31recommendation of the Rendering Industry Advisory Board,
32determine the specific fee per vehicle necessary to provide the
33revenue needed to carry out the provisions of this article. The
34secretary and the Rendering Industry Advisory Board shall not
35exceed the maximum fee amounts established by this section.
36Setting the fee amounts authorized pursuant to subdivision (a)
37shall not be subject to Chapter 3.5 (commencing with Section
3811340) of Part 1 of Division 3 of Title 2 of the Government Code.
39The secretary shall only have the authority to raise an additional
P7    1fee pursuant to this section upon recommendation of the Rendering
2Industry Advisory Board.

3(c) An individual registered pursuant to this article who
4transports inedible kitchen grease for his or her own personal,
5noncommercial use as an alternative fuel is exempt from 75 percent
6of the fee charged pursuant to subdivision (a), and shall meet all
7of the following requirements:

8(1) The individual shall meet all other requirements of this
9article.

10(2) The individual shall not transport more than 55 gallons of
11inedible kitchen grease per load for that purpose, and shall have
12no more than 165 gallons of inedible kitchen grease in his or her
13possession or control at any time.

14(3) The individual shall not take any inedible kitchen grease
15from a container owned by another registered transporter of
16inedible kitchen grease or from an inedible kitchen grease provider
17under contract with a registered transporter of inedible kitchen
18grease or from a container owned by a renderer or collection center.

19(4) The individual shall have a document in his or her possession
20while transporting inedible kitchen grease signed by the responsible
21party providing the inedible kitchen grease to the individual at the
22source of the inedible kitchen grease that provides permission for
23the inedible kitchen grease to be removed from that site.

24(5) The individual shall specify where the inedible kitchen
25grease is stored and processed as an alternative fuel, if that address
26is different from the address included on the registration form for
27that individual pursuant to Section 19312.

28(6) The individual shall not sell, barter, or trade any inedible
29kitchen grease.

30(d) The secretary shall fix the additional fees established
31pursuant to this section and may fix different fees for transporters
32of inedible kitchen grease and collection centers, and for
33transporters of interceptor grease. If an additional fee is imposed
34on licensed renderers pursuant to subdivision (a) of Section 19227
35and an additional fee is imposed on registered transporters pursuant
36to subdivision (a) of this section, only one additional fee may be
37imposed on a person or firm that is both licensed as a renderer
38pursuant to Article 6 (commencing with Section 19300) and
39registered as a transporter of inedible kitchen grease pursuant to
40this article, which fee shall be the higher of the two fees.

P8    1(e) If the additional fee established pursuant to this section is
2not paid within one calendar month of the date it is due, a penalty
3shall be imposed in the amount of 10 percent per annum on the
4amount of the unpaid fee.

5(f) For purposes of this section, “interceptor grease” means
6inedible kitchen grease that is principally derived from food
7preparation, processing, or waste, and that is removed from a grease
8trap or grease interceptor.

9(g) This section shall become inoperative on July 1, 2020, and,
10as of January 1, 2021, is repealed, unless a later enacted statute,
11which becomes effective on or before January 1, 2021, deletes or
12extends the dates on which it becomes inoperative and is repealed.



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