BILL ANALYSIS �
SENATE COMMITTEE on AGRICULTURE
Senator Cathleen Galgiani, Chair
BILL NO: AB 1566 HEARING: 06/17/14
AUTHOR: Holden FISCAL: Yes
VERSION: 06/10/14 CONSULTANT: Anne Megaro
Inedible kitchen grease.
SUMMARY :
This bill would expand the authorization of California
Department of Food and Agriculture (CDFA) and California Highway
Patrol (CHP) employees to enforce inedible kitchen grease laws
and regulations. This bill would extend the sunset date for the
collection of annual fees charged by CDFA; authorize CDFA to
deny, suspend, or revoke licenses and registrations; increase
violation penalties; and make conforming and technical changes.
BACKGROUND AND EXISTING LAW :
Inedible kitchen grease (IKG) is a byproduct of commercial
cooking that can be rendered into a valuable product and used
for biofuel or as an ingredient in animal feed. Typically,
restaurants will store IKG behind buildings and in alleyways
awaiting pickup and transportation to rendering facilities. Due
to the increasing value of biofuels, IKG theft has risen over
the past several years and has proven to be a relatively easy
and profitable target for thieves.
The CDFA Inedible Kitchen Grease Program was established in 1995
in response to increasing theft of IKG. This program is
responsible for regulating and enforcing IKG laws and works
closely with local law enforcement to conduct investigations and
prevent IKG theft. To assist in these efforts, CDFA requires
all renderers and collection centers to apply for and obtain a
license and requires all IKG transporters to be registered.
Existing law authorizes CDFA to revoke, suspend, or refuse to
issue a renderer or collection center license or transporter
registration under specified circumstances, including previous
violations of IKG transportation laws or regulations (Food and
Agricultural Code �19300 et seq.).
Existing law requires licensed renderers, collection center
operators, and registered transporters to retain specified
records reflecting sales and transportation of IKG for two
years. Existing law prohibits anyone from accepting IKG from
any unregistered transporter and from possessing any IKG that is
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knowingly stolen. Existing law provides for fines and/or
imprisonment for violations of these provisions.
Existing law authorizes the secretary of CDFA, in lieu of
seeking civil prosecution, to levy civil penalties for
violations in an amount not to exceed $1,000 for each violation
and provides for an administrative hearing and appeal process.
Existing law creates the Rendering Industry Advisory Board that
shall provide recommendations to the secretary of CDFA regarding
rendering and IKG enforcement, fees, annual budget, and
regulations (Food and Agricultural Code �19218).
PROPOSED LAW :
This bill:
1. Extends the sunset date for the collection of annual
fees charged by CDFA to cover the costs of administering
provisions regarding IKG theft. These fees are collected
from rendering plants, collection centers, and IKG
transporters and are in addition to license and
registration fees. The operation and repeal of these
provisions are extended to July 1, 2020 and January 1,
2021, respectively.
2. Repeals the requirement that CDFA provide notice and a
hearing before refusing to issue a renderer or collection
center license.
3. Allows a person who was refused a license or whose
license was revoked or suspended to appeal to CDFA within
20 days of being notified. The appeal shall be in writing
and signed, and an oral argument may be granted.
4. Requires CDFA to provide a written decision within 45
days of the appeal or within 15 days of the oral argument,
and the appellant may seek a review of CDFA's decision.
5. Requires that all records that are required to be kept
by renderers, collection centers, or transporters shall be
maintained for two years. These records shall be provided
upon request to any peace officer or authorized CDFA or CHP
employee.
6. Increases violation fines from $500 to $1,000 for a
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first offense, from $1,000 to $5,000 for a second offense
within the same year, and from $2,000 to $10,000 for a
third offense within two years.
7. Authorizes CDFA to refuse to issue an original or
renewal registration certificate to transporters of IKG if
the applicant fails to pay in full any penalty levied by
CDFA for a previous violation regarding rendering or IKG
transportation.
8. Requires CDFA to adopt regulations that specify the
maximum time an IKG transporter's registration may be
refused, suspended, or revoked, which shall be based on the
severity or the number of the violations and shall not
exceed three years.
9. Prohibits licensed renderers, collection centers, and
registered IKG transporters from taking possession of IKG
from an unlicensed collection center or unlicensed
renderer. This provision is in addition to current
prohibitions against accepting IKG from unregistered
transporters or IKG that is knowingly stolen.
10. Defines the terms "container", "manifest",
"transportation", "inedible kitchen grease", "rendering",
"collection center", and "licensed collection center,"
within the Vehicle Code.
11. Authorizes a peace officer or authorized CDFA or CHP
employee to inspect any premises maintained by a licensed
renderer, collection center, or registered transporter to
determine recordkeeping compliance.
12. Prohibits any person who is not a licensed renderer or
collection center or a registered IKG transporter from
bringing IKG into California.
13. Amends the Vehicle Code relating to impoundment of
vehicles involved in the theft or movement of stolen IKG.
(These provisions will be discussed in further detail
should this bill be re-referred to the Senate Committee on
Transportation and Housing.)
14. Requires all vehicles transporting IKG to permanently
affix and prominently display a current registration decal
issued by CDFA and requires these vehicles to conspicuously
display the registered person's or company's name and
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address or the carrier identification number issued by the
CHP on both front doors of the vehicle.
15. Conforms the Vehicle Code to the Food and Agricultural
Code regarding rendering and IKG transportation.
16. Makes technical changes.
COMMENTS :
Need for this bill: According to the author, this bill seeks to
strengthen existing law by increasing fines and penalties for
grease theft. Thieves can make more profit in one night of IKG
theft than the cost of paying the current fine. Furthermore,
this bill would strengthen CDFA's licensing program for IKG
haulers and renderers and provide a streamlined process for CDFA
to suspend or revoke licenses of those caught illegally hauling
IKG.
Liquid Gold: IKG has become a valuable commodity in the last
decade, especially in light of rising gasoline prices and
corresponding growth in the biodiesel fuel industry. Recycling
an otherwise 'grimy waste product' into a valuable feed or
biofuel resource is attractive and profitable. According to a
recent article, IKG is traded in commodity markets and its value
has skyrocketed from $0.66 per gallon in April 2001 to $3.68 per
gallon in April 2011 ("Grease is gold; thieves get bold." News
& Observer, NC. June 1, 2011). A more recent article published
in The New Yorker states that a thief driving down a strip-mall
alleyway can collect $4,000 worth of IKG in half an hour ("Hot
Grease." The New Yorker. November 18, 2013.)
IKG Theft Program: According to the CDFA IKG Theft Program,
legitimate companies and restaurants are losing millions of
dollars to theft and container damage by IKG thieves. Thieves
break into storage containers and pump out the contents, where a
truck load could bring in as much as $600 at a grease recycling
center.
Environmental impact: In addition to theft concerns, the
process of rendering IKG creates harmful waste byproducts that
must be handled and disposed of properly so as not to damage or
contaminate waterways or the environment. It is unlikely that
black-market IKG thieves are equipped to handle these chemicals.
Double referral: The Senate Rules Committee has double referred
this bill to the Senate Transportation and Housing Committee as
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the second committee of referral. Therefore, if this measure is
approved by this committee, the motion should include an action
to re-refer the bill to the Senate Committee on Transportation
and Housing.
RELATED LEGISLATION :
AB 2378 (Huber), Chapter 303, Statutes of 2012. Increases
maximum fines for specified crimes related to IKG theft.
Requires transporters, renderers, and collection centers to
maintain records on IKG for two years.
SB 513 (Cannella), Chapter 393, Statutes of 2011. Creates the
Rendering Industry Advisory Board, including membership and
duties, and reauthorizes the licensing of renderers and the
collection of fees to sunset January 1, 2016.
AB 2612 (Agriculture), Chapter 393, Statutes of 2010. This
omnibus bill, among other provisions, expands rendering
definitions of a "collection center," changes collection
centers' licensure expiration dates, and exempts collection
centers from specified fees.
AB 1249 (Galgiani), Chapter 280, Statutes of 2009. Authorizes
the transportation of dead animals to alternative facilities
during a state of emergency; extends the sunset date to January
1, 2016, for the CDFA administration fee for the Inedible
Kitchen Grease Program.
PRIOR ACTIONS :
Assembly Floor 73-0
Assembly Appropriations 17-0
Assembly Agriculture 7-0
Assembly Transportation 15-0
SUPPORT :
Pacific Coast Rendering Association
California Grain and Feed Association
Claremont Chamber of Commerce
California Restaurant Association
OPPOSITION :
None received
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