BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 837
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 837 (Nestande)
          As Amended  June 7, 2012
          Majority vote
           
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          |ASSEMBLY:  |57-14|(June 2, 2011)  |SENATE: |21-19|(August 20,    |
          |           |     |                |        |     |2012)          |
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           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 


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