BILL ANALYSIS SENATE JUDICIARY COMMITTEE Adam B. Schiff, Chairman 1999-2000 Regular Session SB 1274 S Senator Costa B April 26, 1999 Hearing Date: April 27, 1999 1 Food and Agriculture Codes 2 DLM:jt 7 4 SUBJECT Agricultural Nuisance Exemption: Rendering and Collection Centers DESCRIPTION This bill would declare that rendering and collection centers are agricultural processing activities for purposes of including their activities in the existing exemption for agricultural activities from public and private nuisance laws. BACKGROUND State law dating back to the 1870's declares that nothing done or maintained under the express authority of statute can be deemed a nuisance. More recently, the expanding urban population's potential conflict with long operating agricultural businesses resulted in the passage of "right to farm" laws. In particular, AB 585 (Thurman) Ch. 545, Stats. of 1981, created a general protection from nuisance findings for those farmers, ranchers, and processors in operation for three years without incident. This legislation was expanded in 1992 by AB 1190 (Hannigan) Ch. 97, Stats. of 1992, to include agricultural processing facilities. CHANGES TO EXISTING LAW 1. Existing law provides that no agricultural processing activity, operation, facility, or appurtenances thereof, that are conducted or maintained for commercial purposes, (more) > Page 2 shall be or become a nuisance, private or public, due to any changed condition in or about the locality after it has been in continuous operation for more than three years if it was not a nuisance at the time it began. This bill would add rendering plants and collection centers licensed under the Food and Agriculture Code to the specified categories of agricultural processors. 2. Existing law requires every person engaged in the business of rendering to obtain a license from the Secretary of Food and Agriculture for each rendering plant and collection center operated. This bill would require: Every person engaged in the business of rendering to obtain a license from the Department of Food and Agriculture for each rendering plant. Every person engaged in the business of operating a collection center to obtain a license from the Department of Food and Agriculture for each collection center operated. 3. Existing law authorizes the Secretary of Food and Agriculture, in lieu of any civil action and in lieu of seeking prosecution, to levy a civil penalty against a person who violates certain of these provisions, or any regulation adopted, in an amount not to exceed $1,000. Before a civil penalty is levied, the person charged with the violation shall receive notice of the nature of the violation and shall be granted an opportunity to be heard, which shall include the right to review evidence and the right to present evidence on his or her own behalf. This bill would provide, instead, that before a civil penalty is levied, the person charged with the violation shall receive notice of the nature of the violation and shall be granted the right to review the department's evidence, and for up to 30 days following the issuance of the notice, opportunity to present written argument and evidence to the department as to why the civil penalty > Page 3 should not be imposed or should be reduced. The bill would further specify that these provisions do not require the department to conduct either a formal or informal hearing, and that instead the department may dispose of the matter upon review of the documentation presented. COMMENT 1. Stated need for bill The author states his belief that rendering operations and collection centers are included in the types of agricultural related processing existing law was intended to cover. This bill is needed, he asserts, to specifically include rendering operations and collection centers. "The rendering industry is a key component of the state's waste disposal system, recycling billions of pounds of various waste byproducts from the food and agricultural industries into useful feed products each year. Our dairies and poultry farms are dependent on renderers to dispose of animals that die each day due primarily of natural causes. Only a handful of rendering plants are left in California to process dead stock and only about a dozen collection centers. My bill is limited in scope to affect only a very small, but necessary, industry." 2. Support The sponsors of the bill, California Grain and Feed Association, state the bill is needed, "to clarify the department's regulation of collection centers under the rendering laws. These centers are drop-off locations for animal carcasses and/or kitchen grease bound for rendering plants. The bill gives authority to the department to prescribe necessary equipment for collection centers to make certain they are operated in a way that promotes food safety and environmental quality." The bill's other sponsor, Western United Dairymen, write to say, "The Dairy Industry loses several hundred animals per month throughout the state, this in addition to livestock owned by other commodity industries. These > Page 4 animals can only be processed for non-human consumption. By-products are used within the livestock and animal industries for food for animals. Deaths of large animals, in particular 1,200-pound dairy animals, require a beneficial and health protective way to dispose of them. Rendering is the most efficient, and for the most part, the only acceptable legal way to move carcasses away from human health concerns." 3. The law of nuisance and coming to the nuisance Caveat Emptor - Let the buyer beware. Should anyone buying a home near an existing rendering plant or collection facility be presumed aware of its operations and its smells before they purchase? When you purchase the home in November the smell may not have seemed so bad, but come summertime the smell is quite pungent. Should you have a legal recourse? This bill expands on the law which says, "No." Section 3479 of the Civil Code defines a "nuisance" as "anything which is injurious to health, or is indecent or offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property, or unlawfully obstructs the free passage or use, in the customary manner, of any body of water, street, or other public place." Section 3480 defines a "public nuisance" as "one which affects at the same time an entire community or neighborhood, or any considerable number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal." In the policy determination of whether an enterprise should be excused from nuisance laws, as against those new neighbors who have "come to the nuisance," Dean Prosser framed the debate quite well. "The question frequently arises, whether the plaintiff assumes the risk and is barred from recovery by the fact that he has 'come to the nuisance' by purchasing land and moving in next to it after it is already in existence or operation. The prevailing rule is that in the absence of prescriptive right, the defendant cannot condemn the surrounding premises to endure the nuisance, and that the purchaser > Page 5 is entitled to reasonable use and enjoyment of his land to the same extent as any owner, so long as he buys in good faith and not for the sole purpose of a vexatious lawsuit.... There are cases, however, which have held that the plaintiff is barred by his voluntary choice of a place to live, particularly where the defendant's activity is one in which the public has a major interest; and the safer and more accurate statement would appear to be that 'coming to the nuisance' is merely one factor, although clearly not the most important one, to be weighed in the scale along with the other elements which bears upon the question of reasonable use." Prosser, Handbook on the Law of Torts, 4th Ed. at 611. In California, we have such a prescriptive right to which the Dean refers, section 3482.6 of the Civil Code, which places restrictions on the ability to declare agricultural activities to be nuisances. This "right to farm" statute provides that, if an agricultural processing activity, operation, facility, or appurtenance thereto has existed for more than three years and it was not a nuisance when it started operation, and it continues to be conducted in a manner consistent with the customs and standards of the locality, it cannot be declared a nuisance because of changed conditions in the area (i.e. because houses have been built near the plant). 4. Are rendering and collection centers "agricultural processes?" The Food and Agriculture Code defines "rendering" as the conversion of packinghouse waste, dead animal carcasses, and kitchen grease into industrial fats and oils inedible for human consumption and other products inedible for human consumption. "Collection center" means a receiving area for the temporary storage of animal carcasses, packinghouse waste or other products before transportation to a licensed rendering plant. While these activities have an obvious relationship to agriculture, they also relate to industrial activities, particularly in the collection and conversion of non-consumable kitchen grease. The author argues that these facilities are indeed > Page 6 agricultural, as the predominant component of their "product" is from farm and ranching related processing. In addition, he points out, the product derived from rendering is also agricultural, (such as chicken feed). He further asserts that the enforcement of rendering laws is conducted by the Meat and Poultry Inspection Branch of the USDA as a form of meat processing. In reviewing the legislative history of this section of law, the supporters of AB 1109 (Hannigan) included Heinz USA, Beatrice/Hunt Wesson and Campbell Soup, as well as the Wine Institute and frozen food processors. The food processing activities of these companies seem at least as "industrial" as processing dead animals and used kitchen grease into chicken feed. 5. Prior related legislation: a question of retroactive or prospective application In 1992, AB 1190 (Hannigan) Ch. 97, Stats. of 1992, expanded the existing protection from nuisance laws for farmland and farming operations, to cover agricultural processing activities as well. The bill provided a date certain of January 1, 1993 for these protections to begin. SB 1274 would use the same date and would, therefore, cover activities of rendering facilities and collection centers which were in place as of January 1, 1993. SHOULD RETROACTIVE APPLICATION BE GIVEN TO THE ACTIVITIES OF RENDERING PLANTS AND COLLECTION CENTERS? SHOULD THE BILL BE PROSPECTIVE ONLY, SINCE "COLLECTION CENTERS" WOULD BE A SEPARATELY LICENSED ACTIVITY ONLY WITH THE PASSAGE OF THIS BILL? 6. 30-day statute of limitations for informal appeal process The bill allows a person charged with violation of this section to challenge the decision through an informal process within 30 days following issuance of notice of violation before a fine is levied. The bill expressly declares that the Administrative Procedures Act does not > Page 7 apply to these pre-fine appeals. Existing law also allows a challenge, but does not place a statute of limitations upon the party's time for challenging the decision. The limitations period under the Administrative Procedures Act is 30 days. For many state agencies, the period is prescribed in statute, such as in other sections of the Food and Agriculture Code (30 days to contest commodity marketing program assessment); CCP 706.075 (90 days for withholding order for taxes) Labor Code ALRB (30 days) Worker's Compensation (45 days). However, these limitation periods are for challenges to some actual harm. This bill would allow a person to present their side of a story before a fine is imposed. There seem to be no due process issues raised with the bill's proposed 30-day limitation period. Support: California Poultry Industry Federation; California Cattlemen's Association; California Farm Bureau Federation; Pacific Egg and Poultry Association Opposition:None Known HISTORY Source: Western United Dairymen and California Grain and Feed Association Related Pending Legislation: None Known Prior Legislation: AB 1190 (Hannigan) Ch. 97, Stats. of 1992 **************