BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 270
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          SENATE THIRD READING
          SB 270 (Padilla, et al.)
          As Amended  August 18, 2014
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           NATURAL RESOURCES           5-3 APPROPRIATIONS                   
          11-3                
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Muratsuchi,      |Ayes:|Gatto, Bocanegra,         |
          |     |Skinner, Stone, Williams  |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Gomez, Holden, Pan,       |
          |     |                          |     |Quirk, Ridley-Thomas,     |
          |     |                          |     |Weber                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Dahle, Bigelow, Patterson |Nays:|Bigelow, Donnelly, Linder |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits stores, as defined, from distributing  
          lightweight, single-use plastic bags after specified dates.   
          Establishes requirements for reusable bags and prohibits stores  
          from distributing reusable bags and recycled paper bags for less  
          than $0.10 per bag.  Specifically,  this bill  :

          1)Defines terms in the bill, including:

             a)   "Recycled paper bag" as a paper carryout bag provided by  
               a store to a customer at the point of sale and contains a  
               minimum of 40% postconsumer recycled materials.  For a bag  
               with the capacity to hold eight pounds or less, the bag  
               must contain at least 20% postconsumer recycled materials.   
               A recycled paper bag must be accepted for recycling in a  
               majority of households in curbside recycling programs in  
               the state, as well as have specified information printed on  
               the bag.

             b)   "Reusable grocery bag" as, on and after July 1, 2016, a  
               bag that meets requirements specified in 2) below.

             c)   "Single-use carryout bag" as a bag made of plastic,  








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               paper, or other material that is provided by a store to a  
               customer at the point of sale.  Exempts from this  
               definition specified bags, including a bag provided by a  
               pharmacy for a prescription purchase, a nonhandled bag used  
               to protect an item from damaging or contaminating other  
               items when placed in a recycled paper bag or reusable  
               grocery bag, and a dry-cleaning or garment bag.

             d)   "Store" as a full-line self-service retail store with  
               gross annual sales of at least $2 million and sells a line  
               of dry grocery, canned goods, or nonfood items and some  
               perishables (a typical grocery store); has at least 10,000  
               square feet of retail space and a pharmacy; or, a  
               convenience food store or foodmart.  Includes in the  
               definition of store any other retail establishment that  
               voluntarily agrees to comply with the requirements of the  
               bill.  

          2)Beginning July 1, 2015, requires that a reusable grocery bag  
            be able to be used a minimum of 125 times, as specified; can  
            be cleaned; have specified information visible on the bag;  
            cannot contain lead, cadmium, or any other toxic material that  
            may pose a threat to public health; and, must be consistent  
            with federal regulations related to recyclable claims if the  
            bag producer claims the bag is recyclable.

          3)Establishes certification requirements for producers of  
            reusable bags and suppliers of postconsumer recycled content.   


          4)Prohibits stores from making single-use carryout bags  
            available at the point of sale on the following timeline:   

             a)   On and after January 1, 2015, at either a grocery store  
               or retailer with at least 10,000 square feet of retail  
               space and a pharmacy.

             b)   On and after July 1, 2016, at a convenience food store  
               and foodmart.

          5)Authorizes a store to make available a reusable grocery bag or  
            recycled paper bag at the point of sale.  Requires that these  
            bags may not be sold to a consumer for less than $0.10.  









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          6)Requires a store to provide a reusable bag or recycled paper  
            bag at no charge to any customer using California Special  
            Supplemental Food Program for Women, Infants and Children  
            benefits, CalFresh benefits (federally known as Supplemental  
            Nutrition Assistance Program [SNAP] benefits), California Food  
            Assistance Program benefits, or cash aid benefits.  

          7)Authorizes stores that are not included in the bill to  
            voluntarily participate in the bill's requirements by  
            submitting an irrevocable written notice to the Department of  
            Resources Recycling and Recovery (CalRecycle) containing  
            specified information.  

          8)Authorizes a city, county, city and county, or the state to  
            impose civil liability of $1,000 for the first violation of  
            the proposed law, $2,000 for the second violation, and $5,000  
            for each subsequent violation.  Collected penalties must be  
            paid to whichever agency brought the action.  

          9)Preempts local ordinances adopted on or after September 1,  
            2014, relating to reusable grocery bags, single-use carryout  
            bags, or recycled paper bags.  

          10)Appropriates $2 million from the Recycled Market Development  
            Revolving Loan Subaccount for loans for the creation and  
            retention of jobs and economic activity in the state for the  
            manufacture and recycling of plastic reusable grocery bags  
            that use recycled content.  Requires recipients of a loan to  
            retain and retrain existing employees for the manufacturing of  
            reusable grocery bags that meet the requirements of the bill.   
            Specifies that any funds not expended by the end of the  
            2015-16 fiscal year revert back to the Subaccount.  
           
          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee: 

          1)$2 million special fund appropriation to CalRecycle to  
            establish a loan program for reusable plastic bag  
            manufacturing machinery and facilities conversion and worker  
            training.  

          2)Significant one-time costs and ongoing costs to CalRecyle,  
            potentially in the $1 million to $1.4 million range to oversee  
            and implement the program.  $500,000 or more for evaluation,  








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            bag testing and data compiling requirements.
           COMMENTS  :  The author states, "California uses an estimated 14  
          billion single-use plastic bags a year.  According to  
          CalRecycle, less than five percent of single-use plastic bags  
          are recycled.  Plastic bags cause litter, slow sorting and jam  
          machinery at recycling centers costing California more than an  
          estimated $25 million each year to collect and bury the plastic  
          bag waste.  By banning plastic bags on a statewide level, the  
          amount of litter and plastic marine debris caused by plastic  
          bags can be significantly reduced."

          Plastic bags and plastic film together represent just over 2% of  
          the waste stream, and every year California taxpayers spend $25  
          million disposing of the 14 billion plastic bags used annually.   
          Although plastic represents a relatively small fraction of the  
          overall waste stream in California, plastic waste is the  
          predominate form of marine debris.  Plastics are estimated to  
          comprise 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 preferentially accumulates in certain areas throughout  
          the ocean.  The North Pacific Central Gyre is the ultimate  
          destination for much of the marine debris originating from the  
          California coast.  A study by the Algalita Marine Research  
          Foundation found an average of more than 300,000 plastic pieces  
          per square mile of the Gyre and that the mass of plastic was six  
          times greater than zooplankton floating on the water's surface. 

          Most plastic marine debris exists as small plastic particles due  
          to excessive ultraviolet radiation exposure and subsequent  
          photo-degradation.  These plastic pieces are ingested by aquatic  
          organisms and have already negatively affected over 250 animal  
          species worldwide.  In addition, hydrophobic chemicals present  
          in the ocean in trace amounts (e.g., from contaminated runoff  
          and oil and chemical spills) have an affinity for, and can bind  
          to, plastic particles and may also enter and accumulate in the  
          food chain through the same mechanism. 

          Eighty-seven cities and counties throughout California have  
          adopted ordinances banning plastic bags, including San  
          Francisco, San Jose, Long Beach, Los Angeles County, Santa Clara  
          County, and Alameda County.  Many of these local governments  








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          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.  This bill does not pre-empt existing ordinances; however,  
          it does provide uniformity moving forward by pre-empting any  
          local ordinance adopted after September 1, 2014.   


           Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092 


                                                                FN: 0005073