BILL ANALYSIS Ó
AB 837
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ASSEMBLY THIRD READING
AB 837 (Nestande)
As Amended May 11, 2011
Majority vote
NATURAL RESOURCES 7-0 APPROPRIATIONS 11-3
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|Ayes:|Chesbro, Knight, |Ayes:|Fuentes, Blumenfield, |
| |Brownley, Dickinson, | |Bradford, Charles |
| |Huffman, Monning, Skinner | |Calderon, Davis, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Donnelly, Nielsen, Norby |
| | | | |
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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.
Specifically, this bill:
1)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.
2)Defines "manufacturer" as a person, firm, association,
partnership, or corporation that produces a plastic food or
beverage container.
3)Defines "supplier" as a person who purchases plastic food or
beverage containers for sale or distribution in this state.
4)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.
EXISTING LAW :
AB 837
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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 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
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 : According to the author, this 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.
This bill protects these conscientious consumers by deterring
fraud in the marketplace as it relates specifically to plastic
food and beverage containers. This bill also promotes a level
playing field among producers of plastic food and beverage
AB 837
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containers.
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 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.
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 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.
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092
FN: 0001084