BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2378
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2378 (Huber) - As Amended:  March 29, 2012 

          Policy Committee:                              JudiciaryVote:10 
          - 0
                        Agriculture                             9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          Increases civil and criminal fines for specified violations 
          relating to transport and recordkeeping of inedible kitchen 
          grease.  Specifically, this bill:   

          1)Expands, from one year to two years, the period of time that 
            renderers, collection center operators, and transporters must 
            retain specified transaction records reflecting sales and 
            transport of inedible kitchen grease.

          2)Increases the maximum fines for specified violations of 
            existing law, but authorizes even greater maximum penalties 
            (up to $15,000) for any violation that occurs after a previous 
            conviction or that was committed with the intent to defraud or 
            mislead.

          3)Increases the maximum civil penalty, from $1,000 to $5,000, to 
            be assessed by the CA Department of Food & Agriculture (CDFA) 
            for specified violations of the licensing and transport 
            statutes relating to rendering and transport of inedible 
            kitchen grease.

          4)Increases the appeal period for any person, upon receiving 
            notification of a civil penalty, 
          from 10 days to 20 days.

          5)Provides that, absent the filing of a writ of administrative 
            mandamus by the person upon whom a civil penalty was levied, 
            the court shall enter judgment in favor of CDFA upon receiving 
            the department's final decision directing payment of the 








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            penalty.  Further authorizes the CDFA Secretary to file with 
            the court a copy of the department's final decision and if 
            applicable, an order denying a petition for writ of 
            administrative mandamus.

          6)Makes conforming changes to fines and penalties in the Vehicle 
            Code relating to similar requirements that apply to licensed 
            renderers and transporters of inedible kitchen grease.

           FISCAL EFFECT
           
          1)Unknown, likely minor increase in civil and criminal fine 
            revenue.

          2)CDFA costs associated with increased investigations for the 
            theft of inedible kitchen grease would be minor and absorbable 
            within existing resources. 



           COMMENTS  

           1)Purpose  . The intent of this legislation is to increase the 
            fines associated with the theft of inedible kitchen grease. 
            According to the author, current penalty provisions for the 
            theft of inedible kitchen grease are inadequate to deter this 
            growing crime.  

            The author states, "With the increased demand for inedible 
            kitchen grease to use as biofuel and animal feed, as well as 
            the rising prices for all commodities, there has been a 
            significant increase in the theft of such grease.  The 
            Department of Food and Agriculture and local law enforcement 
            representatives recently reviewed the current enforcement and 
            penalties of this theft, and determined that the current 
            penalty structure is too low and now considered the cost of 
            doing business for some offenders."

           2)Inedible Kitchen Grease  . Inedible kitchen grease, also known 
            as used cooking oil, can be turned into a usable engine fuel 
            that can burn on its own, or be used as an inexpensive 
            additive to regular diesel.  Despite its rather unattractive 
            sounding moniker, inedible kitchen grease has actually become 
            a valuable commodity in the last decade, especially in light 
            of rising gasoline prices and corresponding growth in the 








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            biodiesel fuel industry and demand for sources of alternative 
            energy.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081