BILL NUMBER: SB 531	INTRODUCED
	BILL TEXT
INTRODUCED BY   Senator DeSaulnier
                        FEBRUARY 27, 2009
   An act to add and repeal Chapter 5.2 (commencing with Section
42260) of Part 3 of Division 30 of the Public Resources Code,
relating to solid waste.
	LEGISLATIVE COUNSEL'S DIGEST
   SB 531, as introduced, DeSaulnier. Solid waste: 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.
Under existing law, the California Integrated Waste Management Board
(board) administers laws related to waste management.
   This bill would establish the Single-use Carryout Bag
Responsibility Act and would require, on and after July 1, 2011, the
suppliers, as defined, of plastic or paper single-use carryout bags
to remit a Single-use Carryout Bag Responsibility Fee of $0.001, to
the State Board of Equalization, for each paper or plastic single-use
carryout bag supplied directly to a store. The State Board of
Equalization would be required to deposit the fee into the Single-use
Carryout Bag Responsibility Fund that would be established in the
State Treasury.
   The bill would require the board to administer and enforce the
provisions of the act, excluding the administration and collection of
the fees which would be done by the State Board of Equalization. On
or before January 1, 2013, the board would be required to submit a
report to the Legislature evaluating the effectiveness of this
chapter.
   The bill would require the moneys in the fund to be expended, upon
appropriation, by the Legislature for the Single-Use Carryout Bag
Litter Abatement Program under which grant awards would be allocated
to specified entities for the purpose of abating and cleaning up
single-use carryout bags that become litter and encouraging the
proper disposal and collection of single-use carryout bags, and by
the board for implementation of the program and for administrative
costs not to exceed 5% of the funds made available annually for the
program or an amount otherwise specified in the annual Budget Act.
   The act would be repealed as of January 1, 2018.
   The bill would authorize the board to develop a voluntary best
practices program.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
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) Many products, including single-use carryout bags, become
litter.
   (b) Requiring manufacturers or suppliers of those products to pay
an appropriate share of litter abatement and cleanup costs is
appropriate.
   (c) Charging commercial suppliers of single-use carryout bags to
stores a fee of $0.001 per bag would fairly compensate taxpayers for
abatement and cleanup of single-use carryout bag litter based on
litter characterization studies.
   (d) Plastic bag manufacturers are encouraged to incorporate
recycled content in plastic bags to the extent that it is
technologically feasible and cost efficient.
   (e) The imposition of the fee pursuant to Section 42261 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 littering 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 abate and clean up single-use
carryout bag litter.
   (f) (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 fee that is
imposed pursuant to Section 42261 of the Public Resources Code be
consistent with Sinclair Paint Co. v. State Bd. of Equalization
(1997) 15 Cal.4th 866.
  SEC. 2.  Chapter 5.2 (commencing with Section 42260) is added to
Part 3 of Division 30 of the Public Resources Code, to read:
      CHAPTER 5.2.  SINGLE-USE CARRYOUT BAG RESPONSIBILITY ACT
      Article 1.  Definitions
   42260.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Board" means the California Integrated Waste Management
Board.
   (b) "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.
   (c) "Distributor" means a person other than a manufacturer who
distributes or supplies single-use carryout bags to one or more
stores in this state.
   (d) "Fund" means the Single-use Carryout Bag Responsibility Fund,
established pursuant to Section 42262.
   (e) "Manufacturer" means a person who manufactures single-use
carryout bags that are sold to or used by one or more stores in this
state.
   (f) "Reusable bag" means the same as subdivision (b) of Section
42250.
   (g) "State board" means the State Board of Equalization.
   (h) "Store" means a retail establishment that provides single-use
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" as found 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.
   (i) "Supplier" means the manufacturer, distributor, or other
person that sells or supplies single-use carryout bags directly to a
store.
      Article 2.  Single-use Carryout Bag Responsibility Fee
   42261.  (a) On and after July 1, 2011, the supplier of carryout
bags shall remit a Single-use Carryout Bag Responsibility Fee, to the
State Board of Equalization for deposit into the fund, for each
carryout bag that it supplies directly to a store.
   (b) The amount of the fee shall be one-tenth of one cent ($0.001)
per carryout bag.
   (c) The supplier shall remit the fee directly to the state board.
   (d) Carryout bags shall not be delivered to or accepted by a store
unless the supplier has provided written certification to the store
operator that the supplier has paid, or agrees to pay, the fee to the
state board for those bags. Store operators shall not be liable for
paying the fee if they obtain the certification.
   42262.  (a) The Single-use Carryout Bag Responsibility 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) Moneys in the fund shall be expended, upon appropriation by
the Legislature, for the purposes of Article 3 and for the
administrative costs incurred by the board in administering the
program. Those administrative costs shall not exceed 5 percent of the
funds made available annually for the program or an amount otherwise
specified in the annual Budget Act.
      Article 3.  Litter Abatement Program
   42263.  (a) A Single-Use Carryout Bag Litter Abatement Program is
hereby established and administered by the board for the purpose of
allocating grant awards for the purpose of abating and cleaning up
carryout bags that become litter and encouraging the proper disposal
and collection of carryout bags.
   (b) Moneys in the fund shall be available for all of the following
purposes:
   (1) Litter abatement programs designed to lead to reduced release
of carryout bags into the environment.
   (2) Litter cleanup programs designed to clean up carryout bag
litter.
   (3) Investments in equipment, technologies, and practices designed
to lead to enhanced carryout bag containment at landfills and other
solid waste disposal facilities, including garbage and recycling
collection vehicles.
   (4) Mitigation projects relating to stormwater pollution caused by
carryout bag litter, including devices to prevent carryout bag
litter from entering storm drain systems.
   (5) Other collection and abatement programs further identified by
the board that achieve the intent of this chapter.
   (6) Public education regarding the use of the bins required by
subdivision (b) of Section 42252.
   (c) Entities eligible for this funding shall include cities,
counties, special districts, nonprofit organizations, the California
Conservation Corps, and private entities.
   (d) Communities with demonstrated high levels of carryout bag
litter may receive additional funding consideration.
   (e) Minimum allocations of two hundred fifty thousand dollars
($250,000) shall be available to all cities with populations of
greater than 250,000 and counties with populations of greater than
one million. The balance of the funds shall be available on a
competitive basis to all eligible entities.
   42264.  The program established by this article shall be
implemented by the board with moneys, appropriated by the
Legislature, from the fund or with other funds made available
specifically for this program.
      Article 4.  Waste Reduction
   42265.  The board is authorized to develop a voluntary best
practices program that may include any of the following:
   (a) Encouraging stores not to provide carryout bags to customers
for one item unless appropriate under the circumstances.
   (b) Encouraging stores to ask customers purchasing two items
whether they need a carryout bag.
   (c) Encouraging stores to refrain from double bagging.
   (d) Encouraging stores to attempt to fill the maximum item count
or weight per carryout bag.
   (e) Encouraging stores to ask cashiers or baggers to advise
customers to be sure to return plastic carryout bags and other
recyclable plastic bags to the store for recycling and point out the
location of recycling bins.
   (f) Encouraging stores to ensure that the bins required by
subdivision (b) of Section 42252 are highly visible and clearly
marked with a single logo approved by the board for all stores in
this state.
   (g) Encouraging stores to allocate space on bags for prominent
printed messages to educate, request, and encourage consumers to use
plastic bag recycling bins in addition to the requirement in
subdivision (a) of Section 42252.
   (h) Creating a dedicated Internet Web site with an online training
program including a video for store personnel to educate them on
implementing the voluntary best practices.
   (i) Creating a dedicated Internet Web site for the public to learn
about the voluntary best practices program.
      Article 5.  Waste Diversion
   42266.  (a) If a store operator is unable to sell or transfer the
contents of the bin that complies with subdivision (b) of Section
42252 to a recycler, the supplier of plastic bags to the store shall
make arrangements for recycling or take the contents.
   (b) The supplier shall not dispose of the plastic film contents of
those bins in a solid waste stream or in a landfill.
      Article 6.  Heavy Metals Prohibition
   42267.  A reusable bag shall not be sold or provided to consumers
in this state if it contains lead or any other heavy metals.
      Article 7.  Administration and Enforcement
   42268.  (a) The state board shall administer and collect the
Single-use Carryout Bag Responsibility 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 chapter, including, but not limited to, provisions governing
supplier certification forms, collections, enforcement, reporting,
refunds, and appeals.
   42269.  Except as otherwise provided by this chapter, the board
shall administer and enforce this chapter. The board may adopt such
regulations as it determines to be necessary to implement this
chapter.
   42269.1.  On or before January 1, 2013, the board shall submit a
report to the Legislature evaluating the effectiveness of this
chapter.
      Article 8.  Preemption
   42269.3.  (a) The Legislature finds and declares that imposing a
single-use carryout bag responsibility fee upon suppliers is a matter
of statewide interest and concern.
   (b) A city, county, or other public agency shall not adopt or
enforce an ordinance, resolution, regulation, or rule prohibiting the
use, import, sale, or distribution of carryout bags or imposing a
fee on carryout bags or requiring any specifications for carryout
bags unless that ordinance, resolution, regulation, or rule was
adopted prior to January 1, 2009.
   (c) A city, county, or public agency that does not repeal an
ordinance, resolution, regulation, or rule prohibiting the use,
import, sale, or distribution of carryout bags or imposing a fee on
carryout bags, or requiring any specifications for carryout bags that
was adopted prior to January 1, 2009 shall not be eligible for funds
pursuant to paragraph (3) of subdivision (b) of Section 42263 as
long as it remains in effect.
      Article 9.  Repeal
   42269.5.  This chapter shall remain in effect only until January
1, 2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.