BILL ANALYSIS �
SB 513
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Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 513 (Cannella) - As Amended: July 1, 2011
Policy Committee: AgricultureVote:9
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates the Rendering Industry Advisory Board (RIAB)
within the California Department of Agriculture (CDFA).
Specifically, this bill:
1)Creates a seven member RIAB, appointed by the Secretary of the
California Department of Food and Agriculture (CDFA), of which
six must be renderers licensed by CDFA and one must be a
member of the public.
2)Authorizes CDFA to adopt regulations and procedures to be used
by RIAB to administer this statute. Pursuant to these
regulations, CDFA is required to accept the recommendations of
RIAB if they find them to be practicable and in the interest
of the rendering industry and the public. Requires CDFA,
within 30 days of receiving any RIAB recommendations, to
notify RIAB of their acceptance or provide a written statement
of reasons they were not accepted.
3)Reinstates an additional fee, which sunset on January 1, 2011,
of not more than $3,000 per year on each licensed rendering
plant or collection center or transporter of inedible kitchen
grease, to cover the reasonable cost of administering this
statute. Unpaid fees are subject to a penalty of 10% per
annum. This authority will sunset on July 1, 2016.
4)Extends the sunset for Certified Farmers' Market (CFM) fees
until January 1, 2014.
FISCAL EFFECT
SB 513
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1)CDFA estimates that the fees contained in this legislation for
the Rendering Enforcement Program would generate an additional
$216,000 in revenue. These fees were previously in statute but
sunset on January 1, 2011.
2)Funding for RIAB should be minor and absorbable within
existing Rendering Enforcement Program funds.
3)The CFM Marketing Program generates approximately $220,000 in
revenue annually.
4)The fees paid for both these programs are deposited in the
Department of Food and Agriculture Fund, a continuously
appropriated fund. By increasing moneys in a continuously
appropriated fund, this bill would make an appropriation.
COMMENTS
1)Rationale . According to the author, the creation of RIAB will
provide better oversight of the industry and deal with issues
on enforcement, fees, and management of the program, while
advising CDFA on these matters. The re-enactment of the
authority to collect fees for enforcement purposes is
essential for maintaining enforcement practices in the state.
Additionally, this bill extends sunset dates for CFM fee
authority and for violations and enforcement authority for two
years. Typically, sunsets are extended for five years, but
the author, in response to recent reports of vendors being in
violation of the statutes, and the CFM advisory committee
releasing a report critical of CDFA's enforcement abilities
and actions, has reduced the extension date in an effort to
cause the industry to expedite discussions on how to better
enforce the CFM's program's standards and statutes.
2)Animal Rendering Plants separate the fat, bone and protein of
dead animals and process the materials for reuse. Bone and
protein from the animals is reduced into a powder that can be
used for pet food and other feedstock. Fat from the animals
is turned into tallow which can then be used for such products
as candles, soap and lubricants. Rendering plants take in a
wide variety of materials such as parts of slaughtered animals
that are not suitable for human consumption, dead pets from
veterinarians, dead livestock, animals found dead on the sides
SB 513
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of roads, spoiled meat from supermarkets and used cooking oils
from restaurants.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081