BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 662  


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          Date of Hearing:  July 8, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 662  
          (Committee on Environmental Quality) - As Introduced February  
          27, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This committee bill makes the following changes to the Public  
          Resources Code relating to recycling:









                                                                     SB 662  


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          1)Extends the use of the Recycling Market Development Revolving  
            Loan Subaccount (subaccount) to include payments to local  
            governments for the promotion of a recycling market  
            development zone (RMDZ).


          2)Changes the annual reporting date for the architectural paint  
            extended producer responsibility collection program from  
            September 1 to November 1, beginning in 2016.


          FISCAL EFFECT:


          Total costs of approximately $375,000 to $400,000 over three  
          years from the Recycling Market Development Revolving Loan  
          Subaccount for payments to RMDZ Zone Administrators for  
          promotional activities.  


          COMMENTS:


          1)Recycled Material Market Development.  Under existing law,  
            CalRecyle is required to develop a comprehensive market  
            development plan to stimulate demand for waste materials  
            generated in the state.  As part of this effort, CalRecyle  
            designates RMDZs to attract private sector recycling  
            investment.  Local governments, private businesses, and  
            nonprofit organizations within a RMDZ are eligible to receive  
            loans, technical assistance and free product marketing.


            Loans and other RMDZ activities are funded by the subaccount,  
            which received initial seed money from the Integrated Waste  
            Management Account and receives ongoing funding from loan  
            repayments and interest.









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            For the last 20 years, CalRecycle provided reimbursement  
            payments to  RMDZ Zone Administrators for outreach services to  
            promote the RMDZ Loan program.  It was recently determined  
            that CalRecyle may not have sufficient authority to expend  
            funds from the subaccount to reimburse Zone Administrators for  
            outreach services.


            This bill clarifies CalRecyle's statutory authority to provide  
            reimbursement payments for RMDZ promotion activities.


          2)Paint Recovery.  PaintCare is California's extended producer  
            responsibility (EPR) collection system for left over paint  
            recovery.  Existing law requires PaintCare to submit an annual  
            report by September 1 detailing the status of the program,  
            including the volume of paint sold in the preceding fiscal  
            year and the volume of paint recovered.   For the last two  
            years, PaintCare has requested an extension asserting it needs  
            a minimum of four months after the end of the fiscal year  
            (June 30) to prepare the report.


            This bill provides PaintCare an additional two months to  
            prepare the annual report.


          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081

















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