BILL ANALYSIS                                                                                                                                                                                                    


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                                 THIRD READING

          Bill No:  SB 55
          Author:   Corbett (D)
          Amended:  5/13/09
          Vote:     21

           SENATE ENV. QUALITY COMMITTEE  :  5-2, 4/20/09
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Ashburn

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SUBJECT  :    Recycling:  California redemption value  

           SOURCE  :     Author

           DIGEST  :    This bill prohibits a convenience zone recycler  
          from paying scrap value on top of the California Refund  
          Value paid to consumers.

           ANALYSIS  :    According to the author's office, California's  
          successful Bottle and Can Recycling Law has reached  
          historic rates of recycling.  Containers covered in this  
          program are recycled at almost 70 percent.

          Since 1988, Californians have recycled more than 10 million  
          tons of aluminum, glass and plastic beverage containers.   
          No other recycling program or policy in this state has  
          resulted in higher recycling levels, and no program of its  
          kind in the county has been found to be more cost  


                                                                 SB 55

          effective.  California's recycling industry is comprised of  
          5,300 establishments, 85,000 jobs, generates $4 billion in  
          salaries and wages, and produces $10 billion worth of goods  
          and services annually.

          Consumes have three options to ensure their containers are  
          recycled.  One option is a municipal recycling program that  
          collects recyclables at ones curb.  If consumer wishes to  
          redeem their California Refund Value (CRV) deposit, they  
          can either take their containers back to a local  
          convenience zone recycler typically based in a parking lot  
          of a grocery store or to a traditional recycler that has  
          its own site and recycles a wide range of products.

          Convenience zone recyclers receive a handling fee for  
          collecting beverage containers.  Handling fees are used to  
          create more opportunities for consumers to redeem their  
          containers.  In 2006, AB 3056 (Assembly Natural Resources  
          Committee), Chapter 907, Statutes of 2006, was signed into  
          law removing any cap to the amount of handling fees paid to  
          one site, any minimum number of containers a site must  
          redeem to receive handling fees, and reduced of the  
          handling fees paid per container.

          This bill protects a competitive market place between  
          convenience zone recyclers and traditional recyclers.

          This bill prohibits convenience zone recyclers who receive  
          handling fees from paying a scrap value on top of the CRV  
          to consumers thereby reducing the viability of convenience  
          zone recyclers that do not pay that scrap value or  
          traditional recyclers who do not receive a handling fee.

          Any recycler that violates this provision will risk having  
          their handling fees suspended by the Department of  

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  5/12/09)

          Allan Company
          Californians Against Waste


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          Institute of Scrap Recycling Industries
          Tomra Pacific, Inc.

          TSM:cm  5/13/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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