BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 712
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 712 (Williams)
          As Amended  July 11, 2011
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |72-0 |(May 5, 2011)   |SENATE: |37-0 |(September 7,  |
          |           |     |                |        |     |2011)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:   NAT. RES.  

           SUMMARY  :  Prohibits the Department of Resources Recycling and 
          Recovery (DRRR) from providing the Beverage Container Recycling 
          and Litter Reduction Act (Bottle Bill) funds to a city, county, 
          or city and county that prevents the siting or operation of a 
          certified recycling center at a supermarket site.

           The Senate amendments  specify that the bill goes into effect on 
          July 1, 2012. 

           EXISTING LAW  , the Beverage Container Recycling and Litter 
          Reduction Act (Bottle Bill):

          1)Establishes refund value and redemption payments for beverage 
            containers. 

          2)Requires a distributor to pay a redemption payment for every 
            beverage container sold or offered for sale in the state to 
            DRRR, which is required to deposit those amounts in the 
            California Beverage Container Recycling Fund (Fund).  The 
            money in the Fund is continuously appropriated for the payment 
            of refund values and processing fees.

          3)Specifies that every convenience zone must be served by at 
            least one certified recycling center, with specified operating 
            hours.  If a zone is "unserved" by a certified recycling 
            center, existing law requires that the dealer (store) redeem 
            beverage containers from consumers.  

          4)Authorizes funding for specified purposes to increase beverage 
            container recycling, including payments to cities and 
            counties.

           AS PASSED BY THE ASSEMBLY  , this bill would have gone into effect 








                                                                  AB 712
                                                                  Page 2

          on January 1, 2012.

           FISCAL EFFECT  :  This bill has been keyed non-fiscal by the 
          Legislative Counsel.

           COMMENTS  :  The Bottle Bill is designed to provide consumers with 
          a financial incentive for recycling and to make recycling 
          convenient to consumers.  The centerpiece of the Bottle Bill is 
          the California Redemption Value (CRV).  Consumers pay a deposit, 
          the CRV, on each beverage container they purchase.  Retailers 
          collect the CRV from consumers when they buy beverages.  The 
          dealer retains a small percentage of the deposit for 
          administration and remits the remainder to the distributor, who 
          also retains a small portion for administration before remitting 
          the balance to DRRR.  When consumers return their empty beverage 
          containers to a recycler (or donate them to a curbside or other 
          program), the deposit is paid back as a refund.  

          To provide convenient recycling opportunities to consumers, 
          certified recycling centers are located on the site of a 
          supermarket (dealer) and accept beverage containers for 
          recycling and remit the CRV refund to consumers.  There must be 
          one certified recycling center in each convenience zone, which 
          is typically a half-mile radius circle around a dealer.  In 
          order to assist these centers cover their operating costs, the 
          Bottle Bill allocates handling fees.  If there is no certified 
          recycler in a convenience zone, the dealer is responsible for 
          taking back containers. 

          According to the author, there are eight cities that prohibit 
          manned recycling facilities:  Newport Beach, Laguna Hills, 
          Laguna Niguel, Ladera Ranch, Manhattan Beach, Hermosa Beach, 
          Tustin and Vista.  The California Grocers Association provided 
          two specific examples.  The City of Tustin only allows bulk 
          reverse vending or reverse vending machines on retail and 
          commercial lots.  Tustin does not allow a manned facility on a 
          grocer's parking lot.  The City of Hermosa Beach only allows 
          recycling facilities in its heavy commercial zones.  Hermosa 
          Beach does not allow recycling centers in retail and commercial, 
          where all of its grocery stores are located.  

           
          Analysis Prepared by  :    Elizabeth MacMillan / NAT. RES. / (916) 
          319-2092 









                                                                  AB 712
                                                                  Page 3


                                                                FN: 0002107