BILL NUMBER: AB 2769 AMENDED BILL TEXT AMENDED IN SENATE AUGUST 22, 2008 AMENDED IN SENATE JUNE 18, 2008 AMENDED IN ASSEMBLY APRIL 21, 2008 INTRODUCED BY AssemblyMemberLevineMembers Levine, Brownley, and Davis FEBRUARY 22, 2008An act to add and repeal Section 1724 of the Civil Code, relating to digital television.An act to add Chapter 5.3 (commencing with Section 42280) to Part 3 of Division 30 of the Public Resources Code, relating to single-use carryout bags. LEGISLATIVE COUNSEL'S DIGEST AB 2769, as amended, Levine.Digital television.Single-use carryout bags. Existing law requires an operator of a store, as defined, to establish an at-store recycling program that provides to customers the opportunity to return clean plastic carryout bags to that store. Existing law imposes various requirements on at-store recycling programs, including requiring a store to maintain records describing the collection, transport, and recycling of plastic carryout bags collected by the store. Under existing law, the California Integrated Waste Management Board administers laws related to waste management. Existing law establishes in the Resources Agency the Department of Conservation, which, among other things, administers laws related to beverage container recycling. This bill would, on and after January 1, 2010, prohibit a store, as defined, from providing a single-use carryout bag to a customer unless the store charges a fee of not less than $0.25 per bag at the point of purchase. The bill would exempt certain customers from paying the fee. The bill would establish the Bag Pollution Fund in the State Treasury and would require a store to remit the single-use carryout bag fees, less a specified amount, to the State Board of Equalization for deposit in that fund. The bill would require the Resources Agency and the Department of Conservation to administer and enforce the single-use carryout bag provisions and would require the State Board of Equalization to administer the collection of the fees imposed on those bags. The moneys in the fund would be required to be expended, upon appropriation by the Legislature, in a specified order of priority, by the State Board of Equalization to reimburse its costs associated with collecting the fees, by the Resources Agency and Department of Conservation for purposes of providing financial assistance for projects and activities related to mitigating the effects of single-use carryout bags, and by the California Integrated Waste Management Board for grants to cities and counties for programs that encourage and support recycling of single-use carryout bags and single-use carryout bag pollution prevention and outreach programs.Existing federal law requires full-power television broadcast stations in the United States to broadcast only in digital after February 17, 2009.This bill would require, until January 1, 2010, retailers who sell televisions to post a notice regarding the transition to digital television broadcasts near the entrance to the store and to make available to consumers a brochure containing specified information regarding the transition to digital broadcasts.Vote: majority. Appropriation: no. Fiscal committee:noyes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Single-use carryout bags provided by stores impose hidden costs on consumers, local governments, the state, taxpayers, and the environment. (b) Requiring stores to end the subsidy of single-use carryout bags and charge their full economic and environmental costs will provide consumers with an appropriate market signal to make informed decisions regarding carryout bag reduction and reuse options. (c) Requiring stores to charge and remit a fee for the distribution of single-use carryout bags will help the state and local governments to offset the environmental and social costs of single-use carryout bags. (d) The imposition of the fees pursuant to Section 42281 of the Public Resources Code would not result in the imposition of a tax within the meaning of Article XIII A of the California Constitution because the amount and nature of the fee have a fair and reasonable relationship to the environmental, public health, and societal burdens imposed by the use of single-use carryout bags, and there is a sufficient nexus between the fees imposed and the use of those fees to support programs to prevent the litter of single-use carryout bags, cleaning up the litter caused by single-use carryout bags, and encouraging the reduction of the use of single-use carryout bags. (e) (1) There is a clear nexus between the type and amount of the fees imposed pursuant to this act and the environmental, public health, and societal costs resulting from single-use carryout bags. (2) It is the intent of the Legislature that the fees that are imposed pursuant to Section 42281 of the Public Resources Code be consistent with Sinclair Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th 866. SEC. 2. Chapter 5.3 (commencing with Section 42280) is added to Part 3 of Division 30 of the Public Resources Code , to read: CHAPTER 5.3. SINGLE-USE CARRYOUT BAGS Article 1. Definitions 42280. For purposes of this chapter, the following definitions shall apply: (a) "Agency" means the Resources Agency. (b) "Bag Pollution Cleanup Fee" means the fee imposed pursuant to Section 42281. (c) "Board" means the California Integrated Waste Management Board. (d) "Department" means the Department of Conservation. (e) "Fund" means the Bag Pollution Fund, established pursuant to subdivision (a) of Section 42285. (f) (1) "Green carryout bag" means a single-use carryout bag that is provided by a store to a customer at the point of sale and meets all of the following requirements: (A) Is composed of at least 40 percent post-consumer recycled content material. (B) Is accepted in curbside recycling programs serving at least 80 percent of households in the state. (C) Is capable of composting within 180 days, as determined by the board. (2) "Green carryout bag" does not include a reusable bag, as defined in subdivision (d) of Section 42250. (g) "Reusable bag" means a reusable bag as defined in subdivision (d) of Section 42250. (h) "Single-use carryout bag" means a single-use carryout bag that is provided by a store to a customer at the point of sale and that is not a reusable bag, as defined in subdivision (d) of Section 42250. (i) "State board" means the State Board of Equalization. (j) "Store" means a retail establishment that provides single-use carryout bags or green carryout bags to its customers as a result of the sale of a product and that meets either of the following requirements: (1) Meets the definition of a "supermarket" in Section 14526.5. (2) Has over 10,000 square feet of retail space that generates sales or use tax pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) and has a pharmacy licensed pursuant to Chapter 9 (commencing with Section 4000) of Division 2 of the Business and Professions Code. Article 2. Bag Pollution Cleanup Fee 42281. (a) (1) Except as provided in Section 42283, on and after January 1, 2010, a store shall not provide a single-use carryout bag, including a green carryout bag, to a customer at the point of sale, unless the store charges the customer not less than twenty-five cents ($0.25) per bag. (2) Before January 1, 2014, the total amount charged to a customer pursuant to paragraph (1) shall not exceed two dollars ($2.00) per transaction and on and after January 1, 2014, this restriction shall not apply. (b) The amount charged pursuant to paragraph (1) of subdivision (a) shall not be subject to sales tax, shall be separately stated on the receipt provided to the customer at the time of sale, and shall be identified as the Bag Pollution Cleanup Fee. (c) (1) A store charging a fee pursuant to subdivision (a) may retain a portion of the fee, as specified in paragraph (2), in an amount necessary to reimburse the store's costs associated with complying with this chapter, in accordance with Section 42284.5. The store shall remit the remainder of the fee to the state board pursuant to Section 42284. (2) (A) Before January 1, 2013, a store may retain not more than five cents ($0.05) of the fee for each single-use carryout bag that is not a green carryout bag. For a single-use carryout bag that is a green carryout bag, a store may retain not more than ten cents ($0.10) of the fee for each bag. (B) On and after January 1, 2013, a store may retain an amount established by the department, based on the department's determination of the costs of complying with Section 42284.5. (d) Any other transaction fee charged by a store in relation to providing a single-use carryout bag shall be identified separately from the Bag Pollution Cleanup Fee. 42283. The fee imposed pursuant to Section 42281 shall not be charged to either of the following: (a) A customer participating in the Special Supplemental Food Program for Women, Infants, and Children (Article 2 (commencing with Section 123275) of Chapter 1 of Part 2 of Division 106 of the Health and Safety Code). (b) A customer participating in the State Department of Social Services Food Stamp Program. 42284. A store that collects the Bag Pollution Cleanup Fee pursuant to Section 42281 shall calculate the amount of money collected and, after deducting the amount specified in subdivision (c) of Section 42281, shall, in accordance with Section 42288, remit the remainder to the state board for deposit into the fund. 42284.5. A store charging a fee pursuant to Section 42281 shall use the amount of the fee retained pursuant to subdivision (c) of Section 42281 for all of the following: (a) Reimbursement of the store's costs associated with the collection and remittance of the fee pursuant to Sections 42281 and 42284. (b) The development of in-store educational materials encouraging the use of reusable bags for distribution to customers. (c) The development and implementation of an educational campaign encouraging the use of reusable bags, including, but not limited to, public service announcements. (d) Reimbursement of the store's costs associated with providing reusable bags to customers participating in programs described in subdivisions (a) and (b) of Section 42283. (e) Reimbursement of the store's costs associated with providing reusable bags as donations to community organizations, nonprofit organizations, and other similar entities. (f) Reimbursement of the store's costs associated with the use of single-use carryout bags. 42285. (a) The Bag Pollution Fund is hereby established in the State Treasury. All fees collected by the state board pursuant to this chapter shall be deposited in the fund. (b) The moneys in the fund shall be expended, upon appropriation by the Legislature in the annual Budget Act, in the manner and in the order of priority as follows: (1) By the state board, to reimburse the state board's costs of implementing Section 42288. (2) (A) By the board, 50 percent of the moneys in the fund, for grants to cities and counties, on a per capita basis, for purposes of programs that encourage and support recycling of single-use carryout bags and single-use carryout bag pollution prevention and outreach programs. Except as provided in subparagraphs (B) and (C), the amount for which each city or county is eligible shall be based on the total population of the incorporated area of the city or the total unincorporated area of the county, whichever is applicable. (B) If a city or a county prohibits the use of all single-use carryout bags and no fees are collected pursuant to Section 42281 within that jurisdiction, that city or county shall not be eligible for grant funds pursuant to this paragraph. (C) If a city or a county prohibits the use of plastic single-use carryout bags, but not all single-use carryout bags, that city or county shall be eligible for 75 percent of its per capita share of grant funds pursuant to this paragraph. (3) By the agency and the department, the remainder of the moneys in the fund, for purposes of Section 42287. 42286. (a) The Legislature finds and declares that imposing a single-use carryout bag fee upon a store is a matter of statewide interest and concern. (b) Unless expressly authorized by this chapter, a city, county, or other public agency shall not adopt, implement, or enforce an ordinance, resolution, regulation, or rule to impose a single-use carryout bag fee upon a store that is in compliance with this chapter. Article 3. Financial Assistance Program 42287. (a) The agency and the department shall develop and implement a financial assistance program to provide financial assistance for projects that encourage and support recycling of single-use carryout bags, activities for the cleanup and restoration of waterways to mitigate the effects of single-use carryout bags, and pollution prevention and outreach related to single-use carryout bags. At a minimum, the financial assistance program shall do all of the following: (1) Provide guidelines for providing financial assistance, including criteria for eligibility and additional consideration. (2) Provide criteria for determining the amount of financial assistance to be awarded. (3) Provide technical assistance for preparation of applications for financial assistance. (b) The development and adoption of guidelines and selection criteria for the financial assistance program shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (c) Prior to adopting the guidelines or providing financial assistance pursuant to subdivision (a), the agency shall hold two public hearings to consider public comments. One public hearing shall be conducted at a location in northern California and one public hearing shall be conducted at a location in southern California. The agency shall publish draft guidelines on its Internet Web site at least 30 days before the first public hearing. Upon adoption, the agency shall transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature. (d) Activities and projects financed pursuant to this section shall be in compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000)). (e) Not more than 5 percent of the funds allocated to the financial assistance program may be used to pay the agency's and the department's costs of administering the program. (f) The Secretary of the Resources Agency shall provide for an independent audit of expenditures pursuant to this chapter every three years to ensure that all moneys appropriated for purposes of the financial assistance program are expended in accordance with this chapter. The Secretary of the Resources Agency shall annually publish a list of all projects receiving financial assistance pursuant to this section on the agency's Internet Web site. Article 4. Administration and Enforcement 42288. (a) The state board shall administer and collect the Bag Pollution Cleanup Fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). (b) The state board may adopt rules and regulations to carry out this article, including, but not limited to, provisions governing collections, reporting, refunds, and appeals. (c) The Bag Pollution Cleanup Fee shall be due and payable quarterly on or before the 25th day of the month following each calendar quarter. Payments shall be accompanied by a form, as prescribed by the state board, including, but not limited to, electronic media. (d) The state board may require the payment of the fee for other than quarterly periods. 42288.5. Except as otherwise provided by this chapter, the agency and the department shall administer and enforce this chapter. Article 5. Operative Date 42289. This chapter shall become operative on January 1, 2010.SECTION 1.The Legislature finds and declares all of the following: (a) On February 17, 2009, all full-power broadcast television stations in the United States will begin to broadcast only in digital. For people who already own a digital television or subscribe to cable, satellite, or other pay service, the transition will have little or no impact. (b) However, more than 13 million United States households rely on over-the-air broadcast on their analog television sets exclusively. These people tend to rely heavily on television to keep them informed in times of emergency and cannot afford to lose their connection to broadcast television. (c) It is the responsibility of the Legislature to ensure that households that rely solely on over-the-air analog television broadcast for their television viewing understand that the transition will occur on February 17, 2009.SEC. 2.Section 1724 is added to the Civil Code, to read: 1724. (a) For purposes of this section, "retailer" means an establishment that sells televisions to a consumer. (b) Each retailer in the state of California shall post a notice near the store entrance that is clear, conspicuous, and in legible type from a distance of 10 feet containing the following information: (1) Will Your TV Work After February 17, 2009? Prepare for the digital transition. (2) Know Your Options. (A) Buy a converter box that will plug into your analog TV. (B) Buy a TV with a digital tuner. (C) Connect your analog TV to cable, satellite, or other pay service. (3) For more information call 1-888-DTV-2009 (1-888-388-2009) or 1-877-530-2634 (TTY) or visit www.DTV2009.gov. (c) Each retailer shall make available to the consumer upon request a brochure that at a minimum contains the following information: (1) An important change in broadcasting is coming in February 2009. Television broadcasting is moving from an old standard, known as "analog," to a new standard, called "digital." After February 17, 2009, all television broadcasts will be digital. After February 17, 2009, all analog televisions getting programming "over the air" through an antenna will need to be plugged into a special television converter to receive digital broadcasts. Before you buy a new TV, consider these options: (A) Keep your TV and buy a converter. If you have an analog television, you will need a digital-to-analog converter box to continue to watch broadcast television on that set. This converter box will also enable you to see any additional multicast programming that your local stations are offering. (B) Buy a digital television. (C) Hook up your television to cable, satellite, or other pay television service. (2) After February 17, 2009, all television broadcasts will be digital. Prepare for the digital transition. For more information, call the FCC at 1-888-225-5322 (TTY: 1-888-835-5322) or visit their DTV Internet Web site at www.dtv.gov. (d) This section shall remain in effect only until January 1, 2010, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2010, deletes or extends that date.