BILL NUMBER: AB 655	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2016
	AMENDED IN SENATE  JULY 1, 2015
	AMENDED IN ASSEMBLY  APRIL 6, 2015

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 the  maximum  extent feasible, the
Department of Food and  Agriculture, the State Department of
Public Health, the State Air Resources Board, and CalRecycle
  Agriculture  to consider the  regional 
"highest and best use" of  food material  
unprocessed   mammalian, poultry, fish material,  and
 animal and agricultural byproducts   inedible
kitchen grease from inspected establishments, retail stores, custom
slaughterers, and custom processors  when developing regulations
and policies governing the handling and recycling of 
organic food waste and animal byproducts   these 
regulated  by the Department of Food and Agriculture.
  materials and establishments. 
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 19300.1 is added to the Food
and Agricultural Code, to read:
   19300.1.  (a) The Legislature finds and declares all of the
following:
   (1) The rendering industry is a critical health and safety
infrastructure for California. Rendering is an effective tool to
eliminate many human and animal disease pathogens, protect our
groundwater and air resources, and greatly reduce greenhouse gas
emissions compared to other alternative disposal options.
   (2) Rendering is the process of recycling waste animal tissue into
stable, value-added materials. Each year rendering recycles
approximately 59 billion pounds of perishable material generated by
the meat and poultry processing, food processing, supermarket, and
restaurant industries. The rendering industry turns this material
into valuable ingredients such as biofuels, various soaps, paints and
varnishes, cosmetics, explosives, toothpaste, pharmaceuticals,
leather, textiles, and lubricants used daily in most households.
   (3) Organic and food waste recycling is an important activity that
if implemented properly can increase carbon capture and reduce
carbon emissions, increase food safety, maintain the animal health
system, and provide valuable recycled byproducts in an economically
and environmentally sustainable manner. Food material and animal and
agricultural byproducts have specific values and risks requiring
special handling that other organic materials may not.
   (b) Therefore, to the maximum extent feasible, the department, the
State Department of Public Health, the State Air Resources Board,
and CalRecycle shall consider the "highest and best use" of these
materials when developing regulations and policies governing the
handling and recycling of organic food waste and animal byproducts
regulated by the department pursuant to this chapter. 
   SEC. 2.   SECTION 1.   Section 19227 of
the Food and Agricultural Code is amended to read:
   19227.  (a) In addition to the license fee required pursuant to
Section 19225, the department may charge each licensed renderer and
collection center an additional fee necessary to cover the reasonable
costs of administering Article 6 (commencing with Section 19300) and
Article 6.5 (commencing with Section 19310). The additional fees
authorized to be imposed by this section may not exceed ten thousand
dollars ($10,000) per year per each licensed rendering plant or
collection center.
   (b) The secretary may, based upon the findings and recommendation
of the Rendering Industry Advisory Board, determine the additional
fee amounts necessary to provide the revenue needed to carry out the
provisions of this chapter specified in subdivision (a). The
secretary and the Rendering Industry Advisory Board shall not exceed
the maximum amount for additional fees authorized pursuant to
subdivision (a). Setting the additional fee or fees shall not be
subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. The secretary shall
only have the authority to raise an additional fee pursuant to this
section upon recommendation of the Rendering Industry Advisory Board.

   (c) The secretary shall fix the additional fee amounts established
pursuant to this section and may fix different fees for renderers
and collection centers. If an additional fee is imposed on licensed
renderers pursuant to subdivision (a) and an additional fee is
imposed on registered transporters pursuant to subdivision (a) of
Section 19315, only one additional fee may be imposed on a person or
firm that is both licensed as a renderer pursuant to Article 6
(commencing with Section 19300) and registered as a transporter of
inedible kitchen grease pursuant to Article 6.5 (commencing with
Section 19310), which fee shall be the higher of the two fees.
   (d) If the additional fee established pursuant to this section is
not paid within one calendar month of the date it is due, a penalty
shall be imposed in the amount of 10 percent per annum on the amount
of the unpaid fee.
   (e) This section shall become inoperative on July 1, 2020, and, as
of January 1, 2021, is repealed, unless a later enacted statute that
becomes operative on or before January 1, 2021, deletes or extends
the dates on which it becomes inoperative and is repealed.
   SEC. 2.    Section 19300.1 is added to the  
Food and Agricultural Code   , to read:  
   19300.1.  (a) The Legislature finds and declares all of the
following:
   (1) The rendering industry is a critical health and safety
infrastructure for California. Rendering is an effective tool to
eliminate many human and animal disease pathogens, protect our
groundwater and air resources, and greatly reduce greenhouse gas
emissions compared to other alternative disposal options.
   (2) Rendering is the process of recycling waste animal tissue into
stable, value-added materials. Each year rendering recycles
approximately 59 billion pounds of perishable material generated by
the meat and poultry processing, food processing, supermarket, and
restaurant industries. The rendering industry turns this material
into valuable ingredients including biofuels, various soaps, paints,
varnishes, cosmetics, explosives, toothpaste, pharmaceuticals,
leather, textiles, and lubricants used daily in most households.
   (b) Therefore, to the extent feasible, the department shall
consider the regional "highest and best use" of unprocessed
mammalian, poultry, fish material, and inedible kitchen grease from
inspected establishments, retail stores, custom slaughterers, and
custom processors when developing regulations and policies governing
the handling and recycling of these regulated materials and
establishments. 
  SEC. 3.  Section 19312 of the Food and Agricultural Code is amended
to read:
   19312.  (a) Registration shall be made with the department and
shall include all of the following:
   (1) The applicant's name and address.
   (2) A description of the operations to be performed by the
applicant.
   (3) The vehicles to be used in the transportation.
   (4) A registration fee not to exceed two hundred fifty dollars
($250).
   (5) A list of the names of the drivers employed by the transporter
who transport inedible kitchen grease subject to this article and
their drivers' license numbers.
   (6) Any other information that may be required by the department.
   (b) Any renderer or collection center that registers pursuant to
this article is not required to pay the fee prescribed in this
section.
   (c) The department may refuse to issue an original or renewal
registration certificate to an applicant for either of the following
reasons:
   (1) The existence of the grounds specified in subdivisions (a) to
(e), inclusive, of Section 19314.
   (2) A failure to pay, in full by the established due date, any
penalty levied by the department for a previous violation of this
article or Article 6 (commencing with Section 19300).
   (d) (1) The applicant may appeal the decision of the department to
refuse to register the applicant.
   (2) The department shall establish procedures for the appeals
process, to include a noticed hearing.
   (3) The department may reverse a decision to refuse to register
the applicant, upon a finding of good cause to do so.
   (e) The department shall adopt regulations that specify the
maximum time period for which a refusal of registrations may be
imposed, based on the severity or the number of violations that are
the basis of the department's action. The time period for the refusal
of registration shall not exceed three years from the date the
refusal of registration is imposed.
  SEC. 4.  Section 19315 of the Food and Agricultural Code is amended
to read:
   19315.  (a) Except as provided in subdivision (c), in addition to
the registration fee required by Section 19312, the department may
charge a fee necessary to cover the costs of administering this
article. Any additional fee charged pursuant to this section shall
not exceed five hundred dollars ($500) per year per vehicle that is
operated to transport kitchen grease, and shall not exceed ten
thousand dollars ($10,000) per year per registered transporter.
   (b) The secretary may, based upon the findings and recommendation
of the Rendering Industry Advisory Board, determine the specific fee
per vehicle necessary to provide the revenue needed to carry out the
provisions of this article. The secretary and the Rendering Industry
Advisory Board shall not exceed the maximum fee amounts established
by this section. Setting the fee amounts authorized pursuant to
subdivision (a) shall not be subject to Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code. The secretary shall only have the authority to raise an
additional fee pursuant to this section upon recommendation of the
Rendering Industry Advisory Board.
   (c) An individual registered pursuant to this article who
transports inedible kitchen grease for his or her own personal,
noncommercial use as an alternative fuel is exempt from 75 percent of
the fee charged pursuant to subdivision (a), and shall meet all of
the following requirements:
   (1) The individual shall meet all other requirements of this
article.
   (2) The individual shall not transport more than 55 gallons of
inedible kitchen grease per load for that purpose, and shall have no
more than 165 gallons of inedible kitchen grease in his or her
possession or control at any time.
   (3) The individual shall not take any inedible kitchen grease from
a container owned by another registered transporter of inedible
kitchen grease or from an inedible kitchen grease provider under
contract with a registered transporter of inedible kitchen grease or
from a container owned by a renderer or collection center.
   (4) The individual shall have a document in his or her possession
while transporting inedible kitchen grease signed by the responsible
party providing the inedible kitchen grease to the individual at the
source of the inedible kitchen grease that provides permission for
the inedible kitchen grease to be removed from that site.
   (5) The individual shall specify where the inedible kitchen grease
is stored and processed as an alternative fuel, if that address is
different from the address included on the registration form for that
individual pursuant to Section 19312.
   (6) The individual shall not sell, barter, or trade any inedible
kitchen grease.
   (d) The secretary shall fix the additional fees established
pursuant to this section and may fix different fees for transporters
of inedible kitchen grease and collection centers, and for
transporters of interceptor grease. If an additional fee is imposed
on licensed renderers pursuant to subdivision (a) of Section 19227
and an additional fee is imposed on registered transporters pursuant
to subdivision (a) of this section, only one additional fee may be
imposed on a person or firm that is both licensed as a renderer
pursuant to Article 6 (commencing with Section 19300) and registered
as a transporter of inedible kitchen grease pursuant to this article,
which fee shall be the higher of the two fees.
   (e) If the additional fee established pursuant to this section is
not paid within one calendar month of the date it is due, a penalty
shall be imposed in the amount of 10 percent per annum on the amount
of the unpaid fee.
   (f) For purposes of this section, "interceptor grease" means
inedible kitchen grease that is principally derived from food
preparation, processing, or waste, and that is removed from a grease
trap or grease interceptor.
   (g) This section shall become inoperative on July 1, 2020, and, as
of January 1, 2021, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2021, deletes or
extends the dates on which it becomes inoperative and is repealed.