BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 228 (DeSaulnier) Hearing Date: 05/26/2009 Amended: 05/07/2009 Consultant: Brendan McCarthy Policy Vote: EQ 5-2 _________________________________________________________________ ____ BILL SUMMARY: SB 228 would require manufacturers of compostable plastic bags to ensure that the bag is readily identifiable by consumers. The bill requires manufacturers to submit reports to the state showing that their bags meet specified certifications. The bill gives the Integrated Waste Management Board the authority to audit manufacturers to ensure compliance with reporting requirements. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Staffing costs $325 $650 $650 Special * * Integrated Waste Management Account _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense file. Under current law, plastic bags labeled "compostable" may not be sold in the state unless they meet specified standards. SB 228 requires manufacturers of compostable plastic bags meeting existing standards to ensure that their bags are easily identifiable as compostable. The bill specifies the labeling requirements necessary for these bags to be sold in the state. The bill requires manufacturers of compostable plastic bags to report to the California Integrated Waste Management Board annually demonstrating that their bags comply with specified standards. The bill authorizes the Waste Board to audit manufacturers to ensure compliance with the bill. The bill requires the Waste Board to refer manufacturers that supply false information to the Attorney General for prosecution for fraud. The Waste Board estimates that it will cost about $650,000 per year in staffing costs to compile and review reports from manufacturers, verify compliance, conduct audits, and review cases for potential referral for prosecution.