BILL ANALYSIS Ó AB 837 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 837 (Nestande) As Amended June 7, 2012 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |57-14|(June 2, 2011) |SENATE: |21-19|(August 20, | | | | | | |2012) | ----------------------------------------------------------------- Original Committee Reference: NAT. RES. SUMMARY : Establishes documentation requirements for recycled content claims for plastic food container products. The Senate amendments delete the Assembly version of the bill, and instead: 1)Define "plastic food container product" as a product made from plastic that includes a tray, clamshell container, or other receptacle that is used, or intended to be used, to hold food. 2)Require a manufacturer or supplier making an environmental marketing claim relating to the recycled content of a plastic food container product to maintain information and documentation of: a) The recycled content for materials that has been recovered of otherwise diverted from the solid waste stream during the manufacturing process (preconsumer) or after consumer use (postconsumer); and, b) The recycled content claim conforms with the uniform standards for recycled content contained in the Federal Trade Commission Guides for the Use of Environmental Marketing Claims. 3)Require a manufacturer or supplier to furnish this information to any member of the public upon request or to provide the information by furnishing a link to a document on its Web site. 4)Sunset the bill's provisions on January 1, 2018. AB 837 Page 2 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)Requires plastic products sold in the state and labeled as "compostable," "home compostable," or "marine degradable" to meet the applicable American Society for Testing and Materials standards. Prohibits the sale of plastic products labeled "biodegradable," "degradable," "decomposable," or any variation of those terms. 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. AS PASSED BY THE ASSEMBLY , this bill: 1)Required 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)Defined "manufacturer" as a person, firm, association, partnership, or corporation that produces a plastic food or beverage container. 3)Defined "supplier" as a person who purchases plastic food or beverage containers for sale or distribution in this state. 4)Authorized 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 : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, this bill has negligible state costs. COMMENTS : According to the author, this bill promotes truth in advertising and helps stop the practice of "greenwashing." AB 837 Page 3 Greenwashing refers to a false or inaccurate suggestion that products, brands or corporate policies are environmentally preferable to other products. Existing state law prohibits a person from falsely labeling a plastic product as compostable or biodegradable. In a similar way, this bill would prohibit a person from falsely advertising the recycled content of a plastic food 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 companies that manufacture products made from recycled materials. This bill protects these conscientious consumers by deterring fraud in the marketplace. This bill also promotes a level playing field among producers of plastic food containers. Under federal law, unfair or deceptive acts or practices in or affecting commerce are declared unlawful. The Federal Trade Commission has published guidelines that help explain how the guidelines apply to environmental advertising and marketing, such as claims regarding degradability and recycling content. Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004398