BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 405
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 405
           AUTHOR:     Padilla
           AMENDED:    April 2, 2013
           FISCAL:     Yes               HEARING DATE:     April 17, 2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    SOLID WASTE: CARRYOUT BAGS

            SUMMARY  :    
           
            Existing law  , under the At-Store Recycling Program (Public  
           Resources Code §42250 et seq.) (part of the California  
           Integrated Waste Management Act of 1989): 
            
            1) Requires operators of stores, defined as supermarkets and  
              stores over 10,000 square feet that includes a pharmacy, to  
              establish an at-store recycling program.  Under the  
              program: 

              a)    Plastic bags provided by the store must include a  
                 label encouraging customers to return the bag to the  
                 store for recycling.

              b)    Clearly labeled and easily accessible recycling bins  
                 for plastic bags must be provided.

              c)    All plastic bags collected must be recycled in a  
                 manner consistent with the local jurisdiction's  
                 recycling plan.

              d)    The store must maintain records relating to the  
                 program for at least three years and must make the  
                 records available to the local jurisdiction or the  
                 Department of Resources Recovery and Recycling  
                 (CalRecycle) upon request.

              e)    The operator of the store must make reusable bags  
                 available to customers.










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           2) Requires plastic carryout bag manufacturers to develop  
              educational materials to encourage reducing and recycling  
              of plastic carryout bags and make those materials available  
              to stores. 

           3) Allows cities and counties to adopt, implement, and enforce  
              local laws related to local curbside or drop-off recycling  
              programs.

           4) Authorizes a city, county, or the state to levy fines for  
              stores in violation of this law.  

           5) Defines "reusable bag" as a bag with handles and made of  
              either cloth or durable plastic.  Requires a reusable bag  
              made of plastic to be at least 2.25 mils thick and  
              specifically designed for multiple uses.

           6) Sunsets the above provisions on January 1, 2020. 

            This bill  :  

           1) Defines terms in the bill, including:

              a)    "Postconsumer recycled material" as material that  
                 would otherwise be destined for solid waste disposal.

              b)    "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.

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

              d)    "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 with specified  









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                 exceptions including a bag provided by a pharmacy for a  
                 prescription purchase and 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.

              e)    "Store" as either: 1) 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; 2) has at least 10,000  
                 square feet of retail space and a pharmacy; or, 3) a  
                 convenience food store or foodmart.

           2) Requires the following of a reusable grocery bag on and  
              after July 1, 2016: a) able to be used a minimum of 125  
              times as specified; b) can be cleaned; c) have specified  
              information visibly on the bag; d) cannot contain lead,  
              cadmium, or any other heavy metal in toxic amounts; and, e)  
              must be consistent with federal regulations related to  
              recyclable claims if the bag producer claims the bag is  
              recyclable.

           3) Provides additional requirements of a reusable grocery bag  
              if made from plastic.

           4) Authorizes CalRecycle to do the following: 1) inspect and  
              audit a reusable bag producer and requires the producer to  
              pay for costs associated with the audit; 2) test a reusable  
              bag for compliance with the provisions of this bill; 3)  
              enter into an agreement with other state agencies to  
              conduct inspections necessary for enforcement; and, 4)  
              assess administrative civil penalties for violations of  
              provisions of this bill.

           5) Requires penalties to be deposited into the Reusable Bag  
              Account for purposes of implementing this bill upon  
              appropriation by the Legislature.

           6) Prohibits a single-use carryout bag (i.e. paper, plastic,  
              or other material) from being available at the point of  
              sale to a customer:

              a)    On and after January 1, 2015, at either a full-line  









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                 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.

           7) Requires a store, on and after July 1, 2016, to make  
              available a reusable grocery bag at the point of sale.

           8) Authorizes a store to make available a recycled paper bag  
              for purchase at the point of sale.

           9) Requires a store to provide a customer participating in the  
              California's Special Supplemental Food Program for Women,  
              Infants, and Children with a reusable grocery bag or  
              recycled paper bag at no cost.

           10)Authorizes a store to make a compostable bag (i.e., meeting  
              certain compostable and other requirements) available for  
              purchase.

           11)Requires CalRecycle to submit a report to the Legislature  
              by January 1, 2017, regarding the effectiveness of the  
              proposed law, and includes information on violations, data  
              to evaluate pollution reduction, evaluation of reusable bag  
              requirements, and recommendations to further encourage the  
              use of reusable grocery bags.

           12)Authorizes a city, county, city and county, or the state to  
              impose civil liability of $500 for the first violation of  
              the proposed law, $1,000 for the second violation, and  
              $2,000 for each subsequent violation.  Collected penalties  
              must be paid to whichever agency brought the action.   
              Provides that these remedies are not exclusive, but are in  
              addition to remedies available under the state's Unfair  
              Competition Law.

            COMMENTS  :

            1) Purpose of Bill  .  The author states, "California uses an  
              estimated 14 billion single-use plastic bags a year.   
              According to CalRecycle, less than 5% of single-use plastic  
              bags are recycled.  Plastic bags cause litter, slow sorting  









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              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."

            2) Background  .  Plastic bags and plastic film together  
              represent 2.2% of the waste stream, and every year  
              California taxpayers spend $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, plastic waste is the predominate form  
              of marine debris.  Plastics are estimated to compose 60-80%  
              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 UV 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. 

            3) Local bag ordinances  .  Approximately 70 local governments  
              throughout California have adopted ordinances banning  
              plastic bags including San Francisco, San Jose, Long Beach,  
              Los Angeles County, Santa Clara County, Alameda County and  









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              others.  Most of these cities and counties 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.  

           Concern has been raised that this bill would preempt local  
              ordinances banning plastic bags.  The legal test for  
              determining if state law preempts local regulation consists  
              of deciding whether the regulation in question is of  
              statewide concern or a municipal affair.  If a regulation  
              is a matter of statewide concern, then it is not a  
              municipal affair, and therefore the regulation is  
              considered to conflict with state law.  Determining  
              "statewide concern" entails a three-prong test.  A local  
              regulation is preempted if the court finds one of the  
              following: 1) the ordinance duplicates state law; 2) the  
              ordinance contradicts a state statute that expressly  
              occupies the field; or, 3) the state occupies the  
              legislative area by implication.  As noted by Mendocino  
              Solid Waste Management Authority, there is concern that  
              "this bill would open the door to credible litigation  
              against local ordinances on the theory of 'implied  
              preemption' because they 'fully occupy the field' of retail  
              bags."

           In addition, California courts have developed tests for  
              determining when local regulations are not preempted.  One  
              approach is known as the balancing of state and local  
              interests.  The balancing test requires the local  
              regulation be shown to reflect a strong local interest  
              which will prevail when balanced against a state regulation  
              which it conflicts.  In the case of single-use carryout  
              bags, there may be circumstances in individual communities  
              that warrant stricter local regulations than state law.

           This bill provides uniformity throughout the state, but  
              whether it would preempt each and every local ordinance  
              pertaining to single-use carryout bags is debatable.  Is it  
              the author's intent that this bill preempts local  
              regulations?  If so, it should be explicitly stated in the  
              bill.

            4) No corresponding litter and pollution program funded by  









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              fees  .  Although, SB 405 authorizes a store to make a  
              recycled paper bag available for purchase at the point of  
              sale, this bill does not provide a funding mechanism to  
              deal with litter and pollution, as well as stormwater,  
              sewer and water treatment facility problems associated with  
              bag debris.  Some previous legislation included fees to be  
              placed on bags to directly address those problems.  SB 405,  
              like AB 298 (Brownley) of 2012 and AB 1998 (Brownley) of  
              2010, does not establish a funding mechanism for these  
              programs.

           On the other hand, some local governments place requirements  
              on how stores may expend the money collected from bag  
              purchases.  For example, Los Angeles County allows the  
              money generated by bag purchases and retained by stores to  
              be used only for the stores' costs of compliance, actual  
              costs of providing recyclable paper carryout bags, or costs  
              for educational materials/campaigns encouraging the use of  
              reusable bags.

           Should the stores use the funds generated by fees on bags to  
              address single-use bag problems?

            5) Reusable bags are not perfect  .  Concern has been raised  
              that reusable grocery bags may have public health  
              implications.  For example, reusable bags can harbor  
              bacteria such as coliform bacteria, but washing the  
              reusable bags can eliminate 99.9% of bacteria.  However, a  
              2011 study examining reusable bags in California and  
              Arizona showed that 97% of people reported that they never  
              wash their bags.  

           In addition, a 2012 study, by Jonathan Klick and Joshua  
              Wright, from University of Pennsylvania and George Mason  
              University, respectively, on the public health impact of  
              plastic bag bans showed that emergency-room admissions  
              related to E. coli infections increased in San Francisco  
              after the ban compared to nearby counties that did not show  
              the increase.  The San Francisco ban was also associated  
              with increases in salmonella and other bacterial  
              infections.  Similar effects were found in other California  
              local jurisdictions that adopted similar ordinances.










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           SB 405 addresses such public health implications by requiring  
              cleaning/care instructions on the reusable bag.

            6) Related legislation  .  SB 700 (Wolk) requires grocery stores  
              and restaurants to collect a charge of $0.05 for each  
              single-use carryout bag provided to a customer and requires  
              the funds collected to be allocated to reducing and  
              cleaning up litter in local parks and programs.  SB 700 is  
              double-referred to Senate Committees on Natural Resources &  
              Water and Environmental Quality.   SB 700 passed out of  
              Committee on Natural Resources & Water on April 9, 2013  
              (6-2) with amendments.

           SB 405 and SB 700 are incompatible with one another.  SB 405  
              bans single-use plastic bags in grocery stores but  
              authorizes paper bags to be sold and allows the store to  
              retain the fee.  SB 700 requires a fee on both plastic and  
              paper single-use bags in grocery stores and restaurants,  
              and requires the revenue to be used for local public  
              purposes.  

           If both SB 405 and SB 700 are enacted, they will directly  
              conflict with each other.  The Committee may wish to  
              consider supporting only one policy and move that measure  
              forward.

           AB 158 (Levine) is similar to SB 405 and generally prohibits  
              grocery stores from providing single-use plastic bags to  
              customers, and requires stores to make reusable grocery  
              bags available for purchase by customers.  AB 158 passed  
              out of Assembly Natural Resources Committee (6-3) on April  
              1, 2013.

            7) Past legislation .  SB 1219 (Wolk), Chapter 384, Statutes of  
              2012, extended the sunset of the At-Store Recycling Program  
              requirements from January 1, 2013 to January 1, 2020 and  
              repealed the provisions preempting local regulatory action  
              related to the at-store recycling program requirements.

           SB 1106 (Strickland) of 2012 prohibits the manufacture,  
              distribution, and sale of reusable bags without a warning  
              label that both specifies the need for reusable bags to be  
              cleaned and disinfected between uses and outlines the  









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              health risks associated with not cleaning or disinfecting  
              reusable bags between uses.  SB 1106 failed in the Senate  
              Environmental Quality Committee April 23, 2012 (2-5).

           AB 298 (Brownley) of 2012, would have generally prohibited  
              stores from providing single-use plastic bags to customers,  
              required stores to make reusable grocery bags, as defined,  
              available for purchase by customers, and created standards  
              for reusable bags.  AB 298 was held on the Senate  
              Appropriations Committee suspense file.

              AB 1834 (Brownley) of 2012 would have defined "reusable  
              bag" for purposes of the At-Store Recycling Program Law and  
              would have specified that on and after July 1, 2013, the  
              definition of what is a reusable bag under this bill will  
              become operative.  Between January 1, 2013 until June 30,  
              2013, the current At-Store Recycling Program Law would have  
              remained operative.  This bill would have become operative  
              only if SB 1219 (Wolk) became law.  AB 1834 was placed on  
              the Senate inactive file and died on the Senate floor.

              SB 915 (Calderon) of 2011 sets plastic bag reduction and  
              recycled content goals.  A hearing in the Senate  
              Environmental Quality Committee was canceled at the request  
              of the author.

              AB 2138 (Chesbro) of 2010 would have established recycling  
              and composting requirements for take-out food packaging,  
              including bags.  AB 2138 was held on the Assembly  
              Appropriations Committee suspense file.

              AB 1998 (Brownley) of 2010 would have repealed the at-store  
              recycling program and instead prohibited stores from  
              providing a single-use plastic carryout bag to a customer  
              and required stores to provide reusable bags for purchase  
              or recycled paper bags for a fee.  AB 1998 failed in the  
              Senate on August 31, 2010 (14-21).

              SB 531 (DeSaulnier) of 2009 would have required  
              manufacturers of plastic carryout bags to consult with  
              various entities, including the California Integrated Waste  
              Management Board (CIWMB), when developing specified  
              educational materials to encourage the reduced use or  









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              recycling of those bags, and authorized CIWMB to modify  
              those materials. SB 531 was held in Assembly Natural  
              Resources Committee without further action.

              AB 68 (Brownley) of 2009 and AB 87 (Davis) of 2009 both  
              would have required a 25-cent fee on the distribution of  
              single-use carryout bags.  Both bills were held in the  
              Assembly Appropriations Committee. 

              AB 2058 (Levine) of 2007 would have prohibited the free  
              dispensing of carryout plastic bags by a store to its  
              customers, unless the store can demonstrate to CIWMB that  
              70% of the plastic bags it dispensed had been diverted from  
              the waste stream.  AB 2058 was held in Senate  
              Appropriations Committee.


            SOURCE  :        Author
            
           SUPPORT  :  Azul
                          Bag It!
                          California Coastal Coalition
                          California Coastkeeper Alliance
                          Californians Against Waste
                          Central Contra Costa Solid Waste Authority
                          City of Palo Alto
                          City of Sacramento
                          City of San Francisco
                          Los Angeles County Integrated Waste Management   
                               
                                 Committee/Integrated Waste Management  
                          Task Force
                          Contra Costa Clean Water Program
                          County of San Francisco
                          Environment California
                          Green Chamber of Commerce
                          Green Sangha
                          Green Vets Los Angeles
                          Heal the Bay  
                          La Mode Verte Productions
                             Marin County Hazardous & Solid Waste  
              Management
                                Joint Powers Authority









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                                                                 Page 11

                          Napa Valley CanDo
                          Natural Resources Defense Council
                          Northern California Recycling Association
                          Pacifica Environmental Family
                          Planning & Conservation League
                          plasticbaglaws.org
                          Santa Monica High School
                          Save Our Shores
                          Seventh Generation Advisors
                          Sierra Club
                          Surfrider Foundation
                          The 5 Gyres Institute
                          Turtle Island Restoration Network
                          United Food & Commercial Workers Western States
                          2 Individuals
                    
           OPPOSITION  :    99[ Outlet
                          Achasi's Mini Market
                             Advance Polybag, Inc.
                             American Forest and Paper Association
                          Angela's Drive In Dairy
                             Arctic Hot Spot
                             Azusa Council Member Angel Carrillo
                             Bell Gardens Chamber of Commerce
                             Bell Gardens Mayor Sergio Infanzon
                                                                             Brianna's Miss Store
                             Cities Restaurant
                             Clear Skies Enterprises
                             Congress of Racial Equality of California
                             Crown Poly, Inc. (and 206 employees of Crown  
              Poly)
                             Drive In Rancho Market
                             Eagle Portables
                             EDD
                             Elkay Plastics Co., Inc.
                             ETS
                             First Store 989
                             Fiscal Credit Union
                             GDS Institute
                             Hilex Poly Co.
                             Hollywood Work Source Center
                             La Alicia Meat Market
                             La Favorita Bakery









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                                                                 Page 12

                             La Princesita Market
                             Linnie's Pet Pampering
                             Maledzing Shoppe
                             Mendocino Solid Waste Management Authority
                             Noble Affair
                             Oldtimers Foundation
                             Orange County Adult Achievement Center
                             Pasteleria Tres Leches
                             Pico Rivera Mayor Gustavo Camacho
                             Pink
                             Planet Aid
                             REAA
                             So Cal Burgers
                             South Gate Chamber of Commerce
                             St. Louis Drug Co.
                             Superbag Operating, Ltd.
                             Telacu
                             Teresita's
                             Terminix
                             The Cantero Group
                             The Voice Media
                             Third Baptist Church of San Francisco, Inc.
                          U.S. Black Chamber, Inc.
                             Ugly Cherry Cream Nut Pie
                             Unique Dollar
                             West Angeles Church of God in Christ
                             10 Individuals