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,  
                                                       
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  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  
                                                             




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  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  
                                                             




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  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  
                                                             




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  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  
                                                             




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  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  
                                                             




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  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



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