BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 270
          Author:   Padilla (D), et al.
          Amended:  8/21/14
          Vote:     21


          PRIOR VOTES NOT RELEVANT

           ASSEMBLY FLOOR  : 45-31, 08/28/14 - See last page for vote


           SUBJECT  :    Solid waste:  single-use carryout bags

           SOURCE  :     Author


           DIGEST  :    This bill 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.

           Assembly Amendments  delete the prior version of this bill  
          relating to underground economy enforcement actions and instead  
          add the current language.

           ANALYSIS  :    

          Existing law: 

          1.Requires, until 2020, an operator of a store, as defined, to  
            establish an at-store recycling program that provides to  
            customers the opportunity to return clean plastic carryout  
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            bags to that store.

          2.Creates, under the California Integrated Waste Management Act  
            of 1989, the Recycling Market Development Revolving Loan  
            Subaccount in the Integrated Waste Management Account and  
            continuously appropriates the funds deposited in the  
            subaccount to the Department of Resources Recycling and  
            Recovery (CalRecycle) for making loans for the purposes of the  
            Recycling Market Development Revolving Loan Program. 

          3.Makes the provisions regarding the loan program, the creation  
            of the subaccount, and expenditures from the subaccount  
            inoperative on July 1, 2021, and repeals them as of January 1,  
            2022.

          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 specified requirements.

             C.   "Single-use carryout bag" as a bag made of plastic,  
               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 non-handled 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  

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               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 this  
               bill.

          1.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.

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

          3.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.

          1.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.

          2.Requires that all monies collected by stores pursuant to this  
            bill be retained at the store and be used for costs associated  
            with complying with this bill; actual costs of providing  
            recycled paper bags and reusable grocery bags; and costs  
            associated with a store's educational materials or educational  
            campaign encouraging the use of reusable bags.

          3.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  

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            Assistance Program benefits, or cash aid benefits.

          4.Authorizes stores that are not included in this bill to  
            voluntarily participate in this bill's requirements by  
            submitting an irrevocable written notice to the CalRecycle  
            containing specified information.

          5.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.

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

          7.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 this bill.  
             Specifies that any funds not expended by the end of the  
            2015-16 fiscal year revert back to the Subaccount.

           Background
           
          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  

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          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 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.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Assembly Appropriations Committee:

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

           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, bag testing and  
            data compiling requirements.

           SUPPORT  :   (Verified  8/28/14)

          7th Generation Advisors
          All One Ocean

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          Azul
          Black Surfers Collective
          California Asian Pacific Chamber of Commerce 
          California Association of Environmental Health Administrators
          California Coastal Coalition 
          California Coastkeeper Alliance
          California Grocers Association 
          California Labor Federation
          California League of Conservation Voters
          California Retailers Association
          California State Lands Commission
          Californians Against Waste 
          Cathedral City
          Center for Biological Diversity
          Center for Oceanic Awareness, Research, & Education
          ChicoEco, Inc.
          Cities of Clayton, Concord, Encinitas, Long Beach, Los Angeles,  
          Palm Desert,                                                Palo  
          Alto, Sacramento, San Jose, San Rafael, Santa Monica and  
          Sunnyvale
          City and County of San Francisco Department of the Environment 
          City of Long Beach, Councilmember Suja Lowenthal
          City of Oceanside Water Utilities Department
          Clean Oceans Competition 
          Clean Water Action 
          Command Packaging 
          Contra Costa Clean Water Program
          Contra Costa County
          Costa Mesa Sanitary District
          Counties of Los Angeles, Marin, San Francisco, San Mateo, Santa  
          Barbara and 
          Culver City
          Don't Waste LA 
          Earthwise Bag Company, Inc.
          Environment California
          Friends Committee on Legislation in California
          Global Alliance for Incinerator Alternatives 
          Global Green USA
          Gloria Molina, Supervisor, County of Los Angeles
          Green Bag Company
          Green Cities California 
          Green Vets Los Angeles
          GreenWaste Recovery
          Heal the Bay

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          Hidden Resources
          Humboldt Waste Management Authority
          Latino Coalition for a California Bag Ban
          Los Angeles Alliance for a New Economy
          Los Angeles Neighborhood Council Alliance of River Communities
          Mendocino Solid Waste Management Authority
          Napa Recycling and Waste Services
          Natural Resources Defense Council
          Ocean Project
          Pacoima Beautiful 
          Planning and Conservation League
          Plastic Free Seas
          Plastic Pollution Coalition 
          Plastic Soup Foundation 
          Plasticbaglaws.org
          Redlands Area Democratic Club
          Republic Services
          Reusable Bag Association
          Sachamama
          Santa Barbara ChannelKeeper
            Santa Clara
          Santa Clara Valley Water District
          Save Our Shores
          Seaturtles.org
          Sierra Club
          Silicon Valley Leadership Group
          Silver Lake Neighborhood Council
          Surfrider Foundation
          Sustainable Burbank Commission
          Sustainable Coastlines Hawaii 
          Target
          Team Marine
          The Five Gyres Institute
          The Ocean Project
          UFCW Western States Council
          Valley Industry and Commerce Association
          Western Center on Law and Poverty
          Wildcoast 
          World Society for the Protection of Animals 
          Zanker Recycling
          Zero Waste San Diego

           OPPOSITION  :    (Verified  8/28/14)


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          American Forest & Paper Association
          American Progressive Bag Alliance
          Association of California Cities Orange County
          City of Laguna Niguel
          Elkay Plastics
          Familias Latinas de California
          Forest Products Industry National Labor Management Committee 
          Howard Jarvis Taxpayers Association
          International Paper
          Teamsters District Council 2

           ARGUMENTS IN SUPPORT  :    The California Grocers Association  
          states, "Traditional supermarkets in California employ more than  
          300,000 residents in virtually every community in the State.  
          California's grocery industry faces a dizzying array of more  
          than 100 local ordinances regulating single-use carryout bags.   
          The situation is untenable for grocers and consumers alike,  
          posing considerable operational challenges. CGA seeks adoption  
          of a uniform, statewide standard on a going forward basis.  
          Senate bill (SB) 270 (Padilla, de Leon, Lara) provides the best  
          solution for uniformity the industry seeks and the consistency  
          consumers need.

          "SB 270 is different than previous attempts at a statewide  
          solution by addressing concerns for California based jobs by  
          allocating 2 million dollars in grant money from CalRecycle to  
          California plastic bag manufactures.  This allows instate  
          producers the opportunity to retool their equipment, creating a  
          new market place for reusable bags while providing an  
          opportunity for job growth in California."

           ARGUMENTS IN OPPOSITION  :    The City of Laguna Niguel states,  
          "SB 270 (Padilla) which eliminates the ability of cities to make  
          decisions based upon our own community needs.  SB 270 would  
          prohibit stores state-wide from distributing single-use plastic  
          bags to customers and mandate that they make available for  
          purchase recycled bags at a minimum cost of $0.10 per bag. 

          "This bill eliminates the ability of a local government to  
          exercise its own discretion based on the unique needs and  
          business climate of each City.  The bill also eliminates the  
          ability of the free market to determine whether or not a  
          business chooses to charge for recycled grocery bags, resulting  
          in guaranteed extraordinary profits for the grocery industry at  

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          the expense of the consumer.

          "The bill also does not provide sufficient time for a local  
          jurisdiction to have meaningful discussion with business and  
          resident stakeholders should alternative regulations on  
          single-use plastic bags be determined to be appropriate and be  
          adopted prior to the July 1, 2015, effective date."

           ASSEMBLY FLOOR  : 45-31, 08/28/14
          AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Buchanan, Ian Calderon, Campos, Chau, Chesbro,  
            Dababneh, Daly, Dickinson, Fong, Garcia, Gatto, Gomez,  
            Gonzalez, Gordon, Roger Hernández, Holden, Jones-Sawyer,  
            Levine, Lowenthal, Medina, Mullin, Muratsuchi, Nazarian, Pan,  
            John A. Pérez, V. Manuel Pérez, Quirk, Rendon, Ridley-Thomas,  
            Rodriguez, Skinner, Stone, Ting, Weber, Wieckowski, Williams,  
            Yamada, Atkins
          NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Cooley, Dahle,  
            Donnelly, Fox, Frazier, Beth Gaines, Gorell, Gray, Grove,  
            Hagman, Harkey, Jones, Linder, Logue, Maienschein, Mansoor,  
            Melendez, Nestande, Olsen, Patterson, Perea, Quirk-Silva,  
            Salas, Wagner, Waldron, Wilk
          NO VOTE RECORDED: Brown, Eggman, Hall, Vacancy
          RM:e  8/28/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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