BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 655


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          Date of Hearing:   April 15, 2015


                          ASSEMBLY COMMITTEE ON AGRICULTURE


                                Henry T. Perea, Chair


          AB 655  
          Quirk - As Amended April 6, 2015


          SUBJECT:  Rendering: inedible kitchen grease: additional fee.


          SUMMARY:  Increases a registration fee for transporters of  
          inedible kitchen grease (IKG), and makes technical  
          non-substantive changes.  Specifically, this bill:  


          1)Places existing non-codified legislative findings and  
            declarations into the statute.


          2)Increases the per vehicle registration fee for transporters of  
            IKG from $300 up to $350 per year, while keeping the cap on  
            total fees per registered transporter of [inedible] kitchen  
            grease at $3,000 per year.


          3)Makes technical non-substantive changes.


          EXISTING LAW requires a licensed renderer to keep records for  
          two years, encompassing specific information in connection to  
          the receipt of IKG provided by a registered transporter;  
          requires all records retained by a licensed renderer or  
          registered transporter to be maintained at the renderer and  








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          transporter's regular place of business; requires records to be  
          provided on demand by any peace officer and authorizes any peace  
          officer to inspect any premises maintained by a licensed  
          renderer or transporter at any time during normal business hours  
          to ensure compliance with record maintenance requirements.   
          Imposes various fines, as specified, on any licensed renderer or  
          registered transporter who fails to keep specified records, or  
          any renderer or transporter who refuses to exhibit any required  
          records upon demand by any peace officer; prohibits any person  
          from engaging in the transportation of IKG without being  
          registered with California Department of Food and Agriculture  
          (CDFA) and without being in possession of a valid registration  
          certificate issued by DMV; and, prohibits any person who is not  
          a registered transporter or licensed renderer of IKG to  
          transport that product from any location within the state to any  
          location outside of California.  CDFA is authorizes to charge an  
          IKG transporter registration fee of up to $300 per vehicle.  
          These requirements become inoperative July 1, 2020, and are  
          repealed January 1, 2021, unless a later enacted statute becomes  
          effective prior to that date.


          FISCAL EFFECT:  Unknown.  This bill is keyed fiscal by  
          Legislative Counsel.


          COMMENTS:  According to the author, the IKG program needs  
          additional funds for enforcement purposes.  The hauling of IKG  
          takes little capital investment to enter into, making it an easy  
          potential operation for fly by night operators.  The theft of  
          IKG or the unlawful dumping of IKG or interceptor grease occurs  
          depending on the price of the product - the higher the price the  
          more theft and the lower the price the more dumping.  The proper  
          disposal of some of these products may require the operator to  
          incur the cost of tipping fees, so when product prices are low,  
          some operators improperly dispose of the product in various  
          illicit methods, such as, dumping into sewer lines, open fields,  
          water bodies or even into other commercial food holding tanks,  
          passing the cost onto the public or other operators.








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          This increase in the registration fee is intended to assist CDFA  
          in increasing their enforcement actions to stop the theft or  
          illegal disposal of these products.  This has been an ongoing  
          problem that the Legislature, with the industry's support and  
          assistance, has tried to correct through increased fines and  
          larger industry fees to pay for enforcement.  Under this CDFA  
          program, some registration renewals have been denied due to the  
          improper pass actions by the registrant.    


          Lack of sufficient and effective enforcement has been a  
          continuing issue for preventing this illegal activity.  By  
          increasing the registration fee, the industry and CDFA hope to  
          more effectively provide enforcement on IKG transporters by  
          providing more inspections of them and their records.


          The committee may wish to ask the author if he anticipates  
          further amendments to this measure should it pass out of  
          committee.


          The committee may wish to consider a technical amendment to make  
          the reference to IKG consistent within the section.  On page 2,  
          line 24, inserting "inedible" in front of kitchen grease would  
          conform to the other product references in the section.


          PREVIOUS LEGISLATION:  AB 1566 (Holden), Chapter 595, Statutes  
          of 2014, updated the Food and Agricultural Code and Vehicle Code  
          definitions, enforcement, fines, regulations, and transportation  
          of IKG, in order to conform to each other, and extended the  
          sunset of effected articles to January 1, 2021.












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          AB 2378 (Huber), Chapter 303, Statutes of 2012, increased the  
          civil and criminal fines for specified violations relating to  
          the transport and recordkeeping of IKG.  





          SB 513 (Canella), Chapter 337, Statutes of 2011, created the  
          Rendering Industry Advisory Board (RIAB), including membership  
          and duties, and made other non-related changes.





          AB 1249 (Galgiani), Chapter 280, Statutes of 2009, extended the  
          sunset date to January 1, 2016, for the IKG administration fee  
          for the program.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Pacific Coast Rendering Association


          California Grain and Feed Association




          Opposition








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          None on file.




          Analysis Prepared by:Jim Collin / AGRI. / (916) 319-2084