BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 655


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          ASSEMBLY THIRD READING


          AB  
          655 (Quirk)


          As Amended  April 6, 2015


          Majority vote


           --------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                  |Noes                  |
          |                |      |                      |                      |
          |                |      |                      |                      |
          |----------------+------+----------------------+----------------------|
          |Agriculture     |10-0  |Perea, Gallagher,     |                      |
          |                |      |Cooper, Dahle, Dodd,  |                      |
          |                |      |Eggman, Grove, Irwin, |                      |
          |                |      |Quirk, Salas          |                      |
          |                |      |                      |                      |
          |                |      |                      |                      |
          |----------------+------+----------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,       |                      |
          |                |      |Bloom, Bonta,         |                      |
          |                |      |Calderon, Chang,      |                      |
          |                |      |Daly, Eggman,         |                      |
          |                |      |Gallagher, Eduardo    |                      |
          |                |      |Garcia, Holden,       |                      |
          |                |      |Jones, Quirk, Rendon, |                      |
          |                |      |Wagner, Weber, Wood   |                      |
          |                |      |                      |                      |
          |                |      |                      |                      |
           --------------------------------------------------------------------- 


          SUMMARY:  Increases a registration fee for transporters of  








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          inedible kitchen grease (IKG), and makes technical non-substantive  
          changes.  Specifically, this bill:  



          1)Places existing non-codified legislative findings and  
            declarations into the statute.



          2)Increases the per vehicle registration fee for transporters of  
            IKG from $300 up to $350 per year, while keeping the cap on  
            total fees per registered transporter of kitchen grease at  
            $3,000 per year.



          3)Makes technical non-substantive changes.



          EXISTING LAW regulates rendering, which is defined as the  
          recycling, processing, and conversion of, among other things,  
          inedible kitchen grease; requires transporters of IKG to be  
          registered and to pay a specified registration fee; permits the  
          California Department of Food and Agriculture (CDFA) to charge an  
          additional fee not to exceed $300 per year per vehicle that is  
          operated to transport kitchen grease for purposes of administering  
          the provisions regulating these transporters. 



          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill will have annual General Fund revenue gains  
          of approximately $30,000 to CDFA from the fee increase, offset by  
          anticipated increased costs for enforcement activities. .











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          COMMENTS:  According to the author, the IKG program needs  
          additional funds for enforcement purposes.  The hauling of IKG  
          takes little capital investment to enter into, making it an easy  
          potential operation for fly by night operators.  The theft of IKG  
          or the unlawful dumping of IKG or interceptor grease occurs  
          depending on the price of the product - the higher the price the  
          more theft and the lower the price the more dumping.  The proper  
          disposal of some of these products may require the operator to  
          incur the cost of tipping fees, so when product prices are low,  
          some operators improperly dispose of the product in various  
          illicit methods, such as, dumping into sewer lines, open fields,  
          water bodies or even into other commercial food holding tanks,  
          passing the cost onto the public or other operators.



          This increase in the registration fee is intended to assist CDFA  
          in increasing their enforcement actions to stop the theft or  
          illegal disposal of these products.  This has been an ongoing  
          problem that the Legislature, with the industry's support and  
          assistance, has tried to correct through increased fines and  
          larger industry fees to pay for enforcement.  Under this CDFA  
          program, some registration renewals have been denied due to the  
          improper pass actions by the registrant.    



          Lack of sufficient and effective enforcement has been a continuing  
          issue for preventing this illegal activity.  By increasing the  
          registration fee, the industry and CDFA hope to more effectively  
          provide enforcement on IKG transporters by providing more  
          inspections of them and their records.




          Analysis Prepared by:                                               
          Jim Collin / AGRI. / (916) 319-2084  FN: 0000196









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