BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 837
                                                                  Page 1

          Date of Hearing:  May 2, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   AB 837 (Nestande) - As Amended:  March 31, 2011
           
          SUBJECT  :  Solid waste:  plastic food and beverage containers

           SUMMARY  :  Prohibits a manufacturer or supplier from selling a 
          plastic food or beverage container that is advertised with a 
          specific recycling content amount unless the manufacturer or 
          supplier is able to provide certification of that claim in a 
          format that is easy to understand and scientifically accurate.

           EXISTING LAW  :

          1)Imposes civil liability and criminal penalties for any 
            unlawful, unfair, or fraudulent business act or any unfair, 
            deceptive, untrue, or misleading advertising.

          2)Prohibits a person from selling a food or beverage container 
            that is labeled "compostable" or "marine degradable," unless 
            the container meets specific American Society for Testing and 
            Materials (ASTM) standards.  Authorizes a city, county, or the 
            state to impose civil liability in the amount of $500 for the 
            first violation of this law, $1,000 for the second violation, 
            and $2,000 for the third and any subsequent violation.

           THIS BILL  :

          1)Prohibits a manufacturer or supplier from selling a plastic 
            food or beverage container that is advertised with a specific 
            recycling content amount unless the manufacturer or supplier 
            is able to provide certification of that claim in a format 
            that is easy to understand and scientifically accurate.

          2)Requires a manufacturer or supplier to provide information and 
            documentation verifying the recycling content of a plastic 
            food or beverage container within 90 days of a request for 
            such information made by a member of the public or a state 
            agency.

          3)Defines "manufacturer" as a person, firm, association, 
            partnership, or corporation that produces a plastic food or 
            beverage container.








                                                                  AB 837
                                                                  Page 2


          4)Defines "supplier" as a person who purchases plastic food or 
            beverage containers from a manufacturer for sale or 
            distribution in this state.

          5)Authorizes a city, county, or the state to impose civil 
            liability in the amount of $500 for the first violation of the 
            bill, $1,000 for the second violation, and $2,000 for the 
            third and any subsequent violation.

           FISCAL EFFECT  :  Unknown










































                                                                  AB 837
                                                                  Page 3

           COMMENTS  :

           1)Background.   According to the author, the bill promotes truth 
            in advertising and helps stop the practice of "greenwashing."  
            Greenwashing refers to a false or inaccurate suggestion that 
            products, brands or corporate policies are ecologically 
            conscious.  Existing state law prohibits a person from falsely 
            labeling a plastic food or beverage container as compostable.  
            In a similar way, this bill would prohibit a person from 
            falsely advertising the recycled content of a plastic food or 
            beverage container.

            The Integrated Waste Management Act and Global Warming 
            Solutions Act establish policies that support recycling for 
            the purpose of diverting waste from landfills and reducing 
            greenhouse gas emissions.  Many California consumers 
            consciously advance these policies by supporting products made 
            from recycled materials.  The bill protects these 
            conscientious consumers by deterring fraud in the marketplace 
            as it relates specifically to plastic food and beverage 
            containers.  The bill also promotes a level playing field 
            among producers of plastic food and beverage containers.  

          2)  Federal Law.   Under federal law, unfair or deceptive acts or 
            practices in or affecting commerce are declared unlawful.  15 
            U.S.C. § 45.  The Federal Trade Commission (FTC) has published 
            guides that help explain the effect this law has on 
            environmental advertising and marketing practices, such as 
            claims regarding degradability and recycling content.  The 
            guides provide specific examples of claims that demonstrate 
            how the law works. 

           3)Previous Legislation.   AB 2147 (Harman) Chapter 349, Statutes 
            of 2006 prohibits the sale of a plastic food or beverage 
            container that is labeled as "biodegradable," "compostable," 
            "degradable," or otherwise unless the container meets current 
            American Society for Testing Materials (ASTM) standard 
            specifications for the term used on the label.  AB 2071 
            (Karnette) Chapter 570, Statutes of 2008 imposes penalties for 
            failure to comply with AB 2147.

           4)To Whom Should the Bill's Requirements Apply?    The bill 
            applies to manufacturers and suppliers who sell plastic food 
            or beverage containers that are advertised with a specific 
            recycling content.  A "manufacturer" is defined as a person 








                                                                  AB 837
                                                                  Page 4

            who produces a plastic food or beverage container.  A 
            "supplier" is defined as a person who purchases plastic food 
            or beverage containers from a manufacturer for sale or 
            distribution in this state.  Under this definition of 
            supplier, a person can avoid liability by simply purchasing 
            containers from an intermediary rather than directly from the 
            manufacturer.  This loophole could benefit a person who 
            knowingly sells containers with incorrect recycling content 
            labels.   The committee and author may wish to amend the bill  
            to redefine "supplier" to close this loophole.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file





































                                                                  AB 837
                                                                  Page 5

           Opposition 
           
          California Nevada Soft Drink Association
          Grocery Manufacturers Association

           
          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092