BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1566|
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THIRD READING
Bill No: AB 1566
Author: Holden (D)
Amended: 7/1/14 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE : 5-0, 6/17/14
AYES: Galgiani, Cannella, Berryhill, Lieu, Wolk
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 6/24/14
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/4/14
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 73-0, 5/23/14 - See last page for vote
SUBJECT : Inedible kitchen grease
SOURCE : Author
DIGEST : This bill expands the authorization of Department of
Food and Agriculture (DFA) and California Highway Patrol (CHP)
employees to enforce inedible kitchen grease laws (IKG) and
regulations. This bill extends the sunset date for the
collection of annual fees charged by DFA; authorizes DFA to
deny, suspend, or revoke licenses and registrations; increases
violation penalties; and makes conforming and technical changes.
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ANALYSIS : Existing law:
1.Established the DFA Inedible Kitchen Grease Program 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, DFA
requires all renderers and collection centers to apply for and
obtain a license and requires all IKG transporters to be
registered.
2.Authorizes DFA 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.
3.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 knowingly
stolen and provides for fines and/or imprisonment for
violations of these provisions.
4.Authorizes the Secretary of DFA, 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.
5.Creates the Rendering Industry Advisory Board that shall
provide recommendations to the Secretary of DFA regarding
rendering and IKG enforcement, fees, annual budget, and
regulations.
This bill:
1. Extends the sunset date for the collection of annual fees
charged by DFA 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.
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2. Repeals the requirement that DFA 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 DFA within 20 days of
being notified. The appeal shall be in writing and signed,
and an oral argument may be granted.
4. Requires DFA 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 DFA'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 DFA or CHP
employee.
6. Increases violation fines from $500 to $1,000 for a 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 DFA 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 DFA for
a previous violation regarding rendering or IKG
transportation.
8. Requires DFA 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",
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"inedible kitchen grease", "rendering", "collection center",
and "licensed collection center," within the Vehicle Code.
11.Authorizes a peace officer or authorized DFA 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.
14.Requires all vehicles transporting IKG to permanently affix
and prominently display a current registration decal issued
by DFA and requires these vehicles to conspicuously display
the registered person's or company's name and address or the
carrier identification number issued by the CHP on both front
doors of the vehicle. States that a violation of these
provisions is a correctable offices, as specified.
15.Requires, whenever any person is arrested for any of the
following offenses, the arresting officer to permit the
arrested person to execute a notice containing a promise to
correct the violation, as specified, unless the arresting
officer finds that any of the disqualifying conditions, as
specified, exist:
A. Any registration infraction, as specified.
B. Any driver's license infraction, as specified,
relating to possession of driver's license.
C. Infractions relating to bicycle equipment.
D. Any infraction involving specified equipment.
E. Infractions relating to registration decals for
vehicles transporting inedible kitchen grease.
1. Conforms the Vehicle Code to the Food and Agricultural Code
regarding rendering and IKG transportation.
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2. Makes technical changes.
Background
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.
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 DFA 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.
Prior 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
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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 (Assembly Agriculture Committee, 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 DFA administration fee for the IKG Program.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, this bill
results in minor and absorbable costs to both DFA and CHP.
SUPPORT : (Verified 8/6/14)
Pacific Coast Rendering Association
California Grain and Feed Association
Claremont Chamber of Commerce
California Restaurant Association
ARGUMENTS IN SUPPORT : 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 DFA's licensing program
for IKG haulers and renderers and provide a streamlined process
for DFA to suspend or revoke licenses of those caught illegally
hauling IKG.
ASSEMBLY FLOOR : 73-0, 5/23/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonta, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Dababneh,
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Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Holden, Jones, Jones-Sawyer,
Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Patterson,
Perea, John A. P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Bonilla, Harkey, Roger Hern�ndez, Melendez,
Nestande, V. Manuel P�rez, Vacancy
JL:nl 8/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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