BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 158
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 158 (Levine) - As Amended:  April 9, 2013 

          Policy Committee:                              Natural Resources  
                       Vote:                            6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill prohibits retail stores from providing single-use bags  
          to customers, and requires retail stores to provide only  
          reusable grocery bags.  Specifically, this bill: 

          1)Prohibits stores from providing single-use carryout bags at  
            the point of sale beginning January 1, 2015.  This includes  
            bags made of plastic, paper, or other material that is not  
            reusable, as defined.

          2)Requires stores to provide reusable grocery bags after January  
            1, 2016.  The store may charge the customer for the reusable  
            bags, which include washable fabric and other bags designed  
            for at least 125 uses.  After July 1, 2017, reusable grocery  
            bags may also include plastic bags with at least 20 percent  
            recycled material designed for at least 125 uses. 

          3)Authorizes stores to make recyclable paper bags and  
            compostable reusable bags available for purchase.  

          4)Delays implementation of the bill until July 1, 2016 for  
            convenience food stores and foodmarts that hold a liquor  
            license.

          5)Requires stores to provide reusable grocery bags to customers  
            participating in the California Special Supplemental Food  
            Program for Women, Infants, and Children at no cost.

          6)Authorizes a certification process for CalRecycle to:

               a)     Test, inspect, audit grocery bag producers and  








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                 recover costs from the producer.
               b)      Impose civil administrative penalties up to $500  
                 for first-time violations and up to $5,000 for subsequent  
                 violations to be deposited in the Reusable Bag Account,  
                 created by this bill.  

          7)Authorizes local government and the state to impose civil  
            penalties up to $500 for first-time offenders, $1,000 for  
            second violations, and $2,000 for subsequent violations.   
            These penalties do not apply to the CalRecycle certification  
            requirements.   Proceeds from these penalties shall be paid to  
            the city attorney, city prosecutor, district attorney or  
            Attorney General that brought the action. 



          8) Requires CalRecycle to report to the Legislature by January  
            1, 2017 on the following:

               a)     Data to evaluate pollution reduction.
               b)     Recommendations to further encourage the use of  
                 reusable bags.
               c)     An evaluation including recommendations to improve  
                 the requirements of the bill.
               d)     The distribution of recycled paper bags.
               e)     The number and type of violations.

           FISCAL EFFECT  

          1)Significant one-time costs to CalRecyle, potentially $500,000  
            or more for evaluation, bag testing and data compiling  
            requirements.

          2)Reimbursable costs for the inspection and auditing of bag  
            producers.

          3)Non-reimbursable upfront costs in the range of tens of  
            thousands of dollars to develop inspection and auditing  
            procedures.  This activity is permissive.

           COMMENTS  

           1)Rationale.   The environmental impact of single-use plastic  
            bags is well-documented.  Plastic bags comprise 10% of marine  
            debris and take more than 1,000 years to break down.  Reusable  








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            bags have a lower overall impact than single-use bags.

            The author contends that approximately 67 cities and counties  
            have adopted local ordinances banning the use of plastic and  
            other single-use bags.  Seven chain grocers, including Whole  
            Foods and Trader Joe's, have also made a business decision to  
            use only paper or reusable bags.  

            This bill would achieve some uniformity throughout the state.   
            The bill, however, does not pre-empt local ordinances relating  
            to single-use bags as long as the ordinances do not conflict  
            with the requirements of the bill.  
              
           2)Background.  Every year California taxpayers spend around $25  
            million disposing of the 19 billion plastic bags used  
            annually. Although plastic represents a relatively small  
            fraction of the overall waste stream in California by weight,  
            plastic is the most prevalent form of marine debris.  Plastics  
            are estimated to compose 60 to 80% of all marine debris and  
            90% of all floating debris.  

            According to the California Coastal Commission, the primary  
            source of marine debris is urban runoff, of which lightweight  
            plastic bags and plastic film are particularly susceptible.   
            Due to the interplay of ocean currents, marine debris tends to  
            accumulate in certain areas of the ocean.  

            Most plastic marine debris exists as small plastic particles  
            due to excessive UV radiation exposure and subsequent  
            photo-degradation.  These plastic pieces are ingested by  
            marine organisms and have been proven to negatively affect  
            over 250 animal species worldwide.


           3)Local Bag Ordinances.   Nearly 70 cities and counties  
            throughout California have adopted ordinances banning plastic  
            bags including San Francisco, San Jose, Long Beach, Los  
            Angeles County, Santa Clara County, Alameda County.  Many of  
            these local governments also require stores to charge a fee  
            for a paper carryout bag, and a few have banned both  
            single-use plastic and paper carryout bags. 
             
           4)Support.   This bill is supported by numerous environmental  
            groups, local governments, labor organizations and the State  
            Lands Commission, all of which cite the environmental benefits  








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            and removal cost savings associated with switching to reusable  
            bags.
                
            5)Opposition.   This bill is opposed by several paper and plastic  
            bag manufacturers and some local governments.  Manufacturers  
            argue that this bill will have detrimental economic impacts  
            and job losses in our state.   
                
            6)Previous Legislative Attempts.   Since 2007, numerous attempts  
            to ban or charge fees for non-reusable bags have all failed in  
            the Legislature.
                
            7)Related Legislation,  This session, SB 405 (Padilla) is  
            substantially similar to this bill.   
            SB 405 is in the Senate Appropriations Committee.

            SB 700 (Wolk), currently in the Senate Environmental Quality  
            Committee, establishes a five cent fee on single-use carry  
            bags to provide funds for local agency litter clean-up and  
            reduction programs.  
             
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081