BILL ANALYSIS Ó AB 655 Page 1 ASSEMBLY THIRD READING AB 655 (Quirk) As Amended April 6, 2015 Majority vote --------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+----------------------+----------------------| |Agriculture |10-0 |Perea, Gallagher, | | | | |Cooper, Dahle, Dodd, | | | | |Eggman, Grove, Irwin, | | | | |Quirk, Salas | | | | | | | | | | | | |----------------+------+----------------------+----------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | --------------------------------------------------------------------- SUMMARY: Increases a registration fee for transporters of AB 655 Page 2 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 kitchen grease at $3,000 per year. 3)Makes technical non-substantive changes. EXISTING LAW regulates rendering, which is defined as the recycling, processing, and conversion of, among other things, inedible kitchen grease; requires transporters of IKG to be registered and to pay a specified registration fee; permits the California Department of Food and Agriculture (CDFA) 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. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will have annual General Fund revenue gains of approximately $30,000 to CDFA from the fee increase, offset by anticipated increased costs for enforcement activities. . AB 655 Page 3 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. 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. Analysis Prepared by: Jim Collin / AGRI. / (916) 319-2084 FN: 0000196 AB 655 Page 4