BILL ANALYSIS Ó AB 837 Page 1 Date of Hearing: May 27, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 837 (Nestande) - As Amended: May 11, 2011 Policy Committee: Natural ResourcesVote:7-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill prohibits the sale of a plastic food or beverage container falsely advertised as having a specific recycled content. Specifically, this bill: 1)Prohibits a manufacturer or supplier from selling a plastic food or beverage container advertised as having a specific recycled content unless the manufacturer or supplier is able to certify the claim in a format that is easy to understand and scientifically accurate. 2)Requires the manufacturer or supplier, upon request of a member of the public or a state agency, to provide that person or state agency with, within 90 days of request, easily understandable and scientifically accurate information demonstrating the recycled content claim. 3)Authorizes a city, county or the state to impose a civil liability in the amount of $500, $1,000 and $2,000 for a first, second and subsequent violations, respectively. 4)Directs civil penalty amounts to the local office or the Attorney General, whichever brought the action, and subjects monies to the Attorney General to appropriation for use to enforce this chapter. 5)States that costs incurred by a state agency to carry out this bill are recoverable by the Attorney General, at the agency's request, from the liable person or persons. FISCAL EFFECT AB 837 Page 2 1)Minor penalty revenue, likely less than $25,000 annually starting in 2011-12, to the Department of Justice resulting from imposition of these civil penalties. (GF) 2)Minor penalty revenue, likely less than $50,000 annually statewide starting in 2011-12, to the offices of city attorneys, city prosecutors, and district attorneys. (Local accounts.) COMMENTS 1)Rationale. The author contends that environmental marketing claims should be verifiably true and accurate to avoid misleading or deceiving consumers. 2)Background. Existing law 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. Similar to the provisions of this bill, statute 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. 3)There is no formal support registered to this bill. 4)Opposition. This bill is opposed by California Nevada Soft Drink Association and the Grocery Manufacturers Association, whose members are potentially liable under this bill. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081