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