BILL ANALYSIS Ó
AB 655
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Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
655 (Quirk) - As Amended April 6, 2015
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|Policy |Agriculture |Vote:|10 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill codifies certain legislative findings with respect to
the importance of rendering and increases the maximum additional
per-vehicle registration fee for transporters of inedible
kitchen grease (IKG) from $300 to $350 per year while
maintaining the overall cap on total registration fees per IKG
transporter at $3,000 per year.
FISCAL EFFECT:
AB 655
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Annual GF revenue gains of approximately $30,000 to Department
of Food and Agriculture (DFA) from fee increase, offset by
anticipated increased cost for enforcement activities.
COMMENTS:
1)Purpose. According to the author, the IKG program needs
additional funds for enforcement activities. Transporting IKG
does not require significant capital investment, attracting
fly-by-night operators. High prices can encourage theft of
IKG from reputable operators, while low prices can encourage
illegal dumping, damaging water systems. The increase in
registration fees is intended to assist DFA to increase
enforcement actions to stop theft and illegal dumping.
2)Greasy Wheels. Current law imposes a base annual fee of $300
on IKG transporters and an additional annual enforcement and
administration fee of up to $300 per vehicle used to transport
IKG, subject to an overall cap of $3,000 per year per IKG
transporter. This bill increases the annual per vehicle fee
to $350 but maintains the $3,000 annual cap.
Collection centers and renderers are also subject to annual
fees of $1,500 and $3,000, respectively, which count toward
the annual fee cap. As a result, this bill only affects IKG
transporters without rendering licenses and fewer than 10
vehicles, and collection centers with fewer than 5 vehicles.
Current law also imposes certain record keeping requirements
on IKG transporters, subject to audit and inspection by both
DFA and local law enforcement.
Rendering essentially recycles IKG and other animal tissue
AB 655
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into several stable materials used in a variety of industries,
including biofuels, soaps, paints and varnishes, cosmetics,
explosives, toothpaste, pharmaceuticals, leather, textiles,
and lubricants. According to Render Magazine, an industry
trade publication, market prices for IKG have been volatile
over recent years, but can exceed $1,000 per metric ton.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081