BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 513
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          SENATE THIRD READING
          SB 513 (Canella)
          As Amended  July 1, 2011
          Majority vote 

           SENATE VOTE  :39-0  
           
           AGRICULTURE         9-0         APPROPRIATIONS      16-0        
           
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          |Ayes:|Galgiani, Valadao, Bill   |Ayes:|Fuentes, Harkey,          |
          |     |Berryhill, Hill, Ma,      |     |Blumenfield, Bradford,    |
          |     |Mendoza, Olsen, Perea,    |     |Charles Calderon, Campos, |
          |     |Yamada                    |     |Davis, Gatto, Hall, Hill, |
          |     |                          |     |Lara, Mitchell, Nielsen,  |
          |     |                          |     |Norby, Solorio, Wagner    |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Creates a Rendering Industry Advisory Board (RIAB), 
          including membership and duties; reauthorizes the licensing of 
          renderers and the collection of fees; and, extends the sunset 
          for Certified Farmers' Market (CFM) fees until January 1, 2014.  
          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 are to be subject to rendering licensure by CDFA, as 
            specified, and one is to be a public member.  Requires 
            appointees to have various expertise and/or experiences, as 
            specified.

          2)Prohibits board members from receiving a salary, but entitles 
            them for reimbursement of necessary travel expenses in 
            accordance with Department of Personnel Administration rules 
            and regulations, and are to be paid from appropriations made 
            to CDFA for that purpose.

          3)Provides terms of RIAB to be three years and establishes that 
            of the first appointees, three will serve for three years, two 
            for two years, and two for one year; thereafter, appointees 
            will serve for three years.  All vacancies are required to be 
            filled by CDFA for the unexpired terms.









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          4)Requires RIAB to elect a chairperson and any other officers as 
            may be deemed necessary.

          5)Requires RIAB to meet once a year and upon the call of the 
            chairperson, CDFA, or any three RIAB members.  Specifies a 
            quorum to be five RIAB members and a vote of the majority of 
            RIAB members, when a quorum is present, to constitute an act 
            of RIAB.

          6)Restricts any member, or employee or agent thereof, from 
            personal liability for actions of RIAB or responsible 
            individually in any way for errors in judgment, mistakes, or 
            other acts, either by commission or omission, except for 
            personal acts of dishonesty or crime.

          7)Requires RIAB to advise CDFA and permits recommendations to be 
            made to CDFA on the following:

              a)    Adoption, modification and repeal of regulations and 
                procedures;

              b)    Procedures for employment, training, supervision, and 
                compensation of inspectors and other personnel;

              c)    Rate and collection of license fees and penalties 
                related thereto;

              d)    Acquisition and use of equipment;

              e)    Posting and noticing changes in bylaws, general 
                procedures, or orders; and,

              f)    All matters pertaining to rendering law, including, 
                but not limited to, the inspection and enforcement 
                program, annual budgets, necessary fees to provide 
                adequate services, and regulations required to accomplish 
                the purposes of this statute.

          8)Requires RIAB to keep accurate books and records of its 
            activities and be subject to annual audits by a firm approved 
            by CDFA, to be done during regular business hours as requested 
            by CDFA.  Audits are to be made a part of the annual report 
            submitted to all persons licensed under this statute.









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          9)Prohibits the disclosure of any proprietary information of 
            persons subject to this statute, including material test 
            results, individual fees or license payments, rendering 
            process, or formula information, to persons subject to this 
            statute.

          10)Authorizes CDFA to adopt regulations and procedures to be 
            used by RIAB to administer this statute.  

          11)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.  
            Requires CDFA to accept the recommendations of RIAB if they 
            find them to be practicable and in the interest of the 
            rendering industry and the public.
           
          12)Authorizes an additional fee 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.  CDFA is 
            required to fix this fee annually, and may fix a different fee 
            for rendering plants and collection centers, fix the due date 
            of the fee, and limits only one additional fee for licensed 
            renderers that are also licensed transporters of inedible 
            kitchen grease.  Unpaid fees are subject to a penalty of 10% 
            per annum.  This authority will sunset on July 1, 2016.

          13)Extends the CFM stall fee per vender until January 1, 2014.

          14)Extends the penalty and enforcement provisions for CFMs until 
            January 1, 2014.
           
          FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, extension of the rendering collection program will 
          generate approximately $216,000 in Special Funds (SF); the CFM 
          program extension will generate approximately $220,000 in SF; 
          and, the cost for the RIAB should be minor and absorbable from 
          SFs.

           COMMENTS  :  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, as well as, improve deficiencies 
          currently occurring in the management of the program.  The 








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          re-enactment of the authority to collect fees for enforcement 
          purposes is essential for maintaining enforcement practices in 
          the state.  This authority was inadvertently left to sunset by 
          the industry and CDFA.

          Additionally, this bill extends sunset dates for CFMs' 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 CFMs' program's standards and statutes.


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


                                                                FN: 0001969