BILL NUMBER: SB 1174 CHAPTERED
BILL TEXT
CHAPTER 427
FILED WITH SECRETARY OF STATE AUGUST 11, 1995
APPROVED BY GOVERNOR AUGUST 10, 1995
PASSED THE SENATE JULY 30, 1995
PASSED THE ASSEMBLY JULY 17, 1995
AMENDED IN ASSEMBLY JUNE 19, 1995
INTRODUCED BY Senator Killea
FEBRUARY 24, 1995
An act to amend Sections 12153, 12157, 12200, 12205, 12301, 12305,
and 12320 of the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
SB 1174, Killea. Public purchases: recycled steel.
(1) Existing law requires the Legislature and all state agencies
to meet certain goals for the procurement or purchase of recycled
products, as defined, by specified dates. Existing law requires the
purchases of state agencies to be applied to the total dollar amount
of each specified product category.
This bill would include flat steel products with specified
percentages of total weight consisting of secondary and postconsumer
material within the definition of "recycled product" for these
purposes. It would also prohibit the purchase of a recycled-content
product from one category from being applied toward the goals for, or
the total dollar amount of, any other category specified for
procurement or purchase by state agencies or the Legislature.
(2) Existing law requires contractors contracting with the
Legislature or state agencies to certify in writing whether the
materials, goods, or supplies offered contain the minimum percentage
of recycled product required by law, under the penalty of perjury.
This bill would make contracts for the provision of steel products
defined as recycled products subject to this requirement.
By creating a new crime, this bill would impose a state-mandated
local program.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12153 of the Public Contract Code is amended to
read:
12153. The Legislature finds and declares all of the following:
(a) It is the policy of the state to conserve and protect
resources for future citizens as well as the current population of
the state.
(b) It is in the best interest of the people of the state that the
state alter its perception of solid waste to instead look upon this
waste as resources that can be recovered and reused.
(c) It is in the best interest of reducing the increasing burden
on communities disposing of the state's solid waste for the state to
take a role in developing an integrated state solid waste management
policy, which includes source reduction, recycling, composting,
market development, incineration, and landfills. Since recycling is
a necessary component of this policy, the state shall encourage the
use of recycled products to ensure that the state's industries have
sufficient and adequate markets for products regeneratively utilizing
the state's solid waste as recycled resources.
(d) It is the policy of the state to encourage the expansion of
businesses located in California and, to whatever extent possible, to
look favorably on California businesses in the recycling industry,
which include, but are not limited to, those California businesses
that manufacture, distribute, or act as brokers for, recycled
products.
(e) Market development is the key to moving beyond the uneven
collection of recyclable materials to stable resource recovery and
reuse. Because of existing local collection programs, significant
quantities of recycled resources such as the following are today
available for purchase: fine grades of paper, high-quality paper
products, plastics, retreaded automobile tires, rerefined lubricating
oil, reused automotive parts, reclaimed solvents, recycled asphalt,
recycled concrete, carpet or geotextiles composed of recycled
plastics, compost and co-compost products, and steel products.
(f) In making these findings, the Legislature declares that the
policy and intent of this chapter is to set an example for the state
and nation to encourage the purchase of products utilizing recycled
resources.
(g) It is the intent of the Legislature, whenever economically
feasible and as markets allow, to continually expand the policies of
the state to utilize recycled resources in the daily operations of
the state. This includes, but is not limited to, the procurement and
purchase of recycled materials, the use of recycled resources in the
performance of a service or project for the state, and the purchase
of equipment used for the collection and sale of waste materials
generated by the state.
(h) It is the intent of the Legislature that the Department of
General Services work with all state departments, agencies, the
Legislature, the California Integrated Waste Management Board, and
the Department of Conservation to draft, establish, and implement
policies that ensure the procurement and use of recycled resources.
(i) It is also the intent of the Legislature to encourage local
public agencies and private companies to adopt policies to maximize
the use of recycled resources.
SEC. 2. Section 12157 of the Public Contract Code is amended to
read:
12157. This chapter applies to the procurement and purchase of
the following materials, goods, and supplies, or products containing
the following recycled resources and meeting the specified recycled
content requirements pursuant to Section 12161, 12181, 12182, or
12200, whichever is applicable:
(a) Recycled paper products, which include, but are not limited
to, fine grades of paper, corrugated boxes, newsprint, tissue, and
toweling.
(b) Compost and co-compost products.
(c) Glass.
(d) Oil.
(e) Plastic.
(f) Solvents and paint, including water-based paint.
(g) Tires.
(h) Steel.
SEC. 3. Section 12200 of the Public Contract Code is amended to
read:
12200. For the purpose of this article:
(a) (1) Except as provided in paragraph (2), "recycled product"
means all materials, goods, and supplies, no less than 50 percent of
the total weight of which consists of secondary and postconsumer
material with not less than 10 percent of its total weight consisting
of postconsumer material. A recycled product shall include any
product that could have been disposed of as solid waste having
completed its life cycle as a consumer item, but otherwise is
refurbished for reuse without substantial alteration of its form.
(2) "Recycled product" also means other flat rolled steel products
no less than 25 percent of the total weight of which consists of
secondary and postconsumer material, with not less than 10 percent of
total weight consisting of postconsumer material. Products made
with flat rolled steel meeting these content percentages include, but
are not limited to, automobiles, cans, appliances, and office
furniture and supplies.
(b) "Postconsumer material" means a finished material that would
have been disposed of as a solid waste, having completed its life
cycle as a consumer item, and does not include manufacturing wastes.
(c) "Secondary material" means fragments of finished products or
finished products of a manufacturing process that has converted a
resource into a commodity of real economic value, and includes
postconsumer material, but does not include excess virgin resources
of the manufacturing process.
SEC. 4. Section 12205 of the Public Contract Code is amended to
read:
12205. (a) All state agencies shall require all contractors to
certify in writing the minimum percentage, if not the exact
percentage, of postconsumer and secondary material in the materials,
goods, or services provided or used. This certification shall be
furnished under penalty of perjury.
(b) The department, in consultation with the board, shall review
and revise the procurement specifications used by state agencies in
order to eliminate restrictive specifications and discrimination
against the procurement or purchase of recycled products. Fitness
and quality being equal, all state agencies shall purchase recycled
products instead of nonrecycled products whenever recycled products
are available at the same total cost as nonrecycled products. All
state agencies shall allow a price preference as determined by the
board pursuant to Section 12162. In determining procurement
specifications, with the exception of any specifications that have
been established to preserve the public health and safety, all state
procurement and purchasing specifications shall be established in a
manner that results in the maximum state procurement and purchase of
recycled products.
(c) (1) To assist the state in meeting the goals of subdivision
(a) of Section 12162 and subdivision (e) of this section, the
department, in consultation with the board, may also establish
recycled-content disclosure, recycled product-only bids, cooperative
purchasing arrangements, or conduct an analysis of solid waste
diversion from disposal facilities, to meet the goals for recycled
products and to encourage the maximum state procurement and purchase
of recycled products. All state agencies shall, if feasible,
implement recycled product-only bids for recycled products as defined
in subdivision (a) of Section 12200, in order to meet the goals for
recycled products set forth in this section and Section 12162.
(2) This subdivision applies to the procurement or purchase of the
following materials, goods, and supplies, or products containing the
following recycled resources:
(A) Paper products, which include, but are not limited to, fine
papers, such as xerographic and envelope papers and form bond,
corrugated boxes, newsprint, tissue, and toweling.
(B) Compost and co-compost products.
(C) Glass.
(D) Oil.
(E) Plastic.
(F) Solvents and paint, including water-based paint.
(G) Tires.
(H) Steel.
(d) All state agencies shall, if feasible, establish purchasing
practices that ensure the purchase of materials, goods, and supplies
that may be recycled or reused when discarded.
(e) The department shall set the following goals for purchases
made by state agencies:
(1) By January 1, 1996, at least 20 percent of state purchases are
of recycled products.
(2) By January 1, 1998, at least 30 percent of state purchases are
of recycled products.
(3) By January 1, 2000, at least 50 percent of state purchases are
of recycled products.
(4) The goals specified in this subdivision shall be applied to
the purchases of state agencies for products listed in this section,
except in subparagraph (A) of paragraph (2) of subdivision (c) for
which goals are specified in Section 12162.
(f) The purchases of the state agencies shall meet each goal for,
and be applied to the total dollar amount of, each specified product
category as defined in this section. The purchase of a
recycled-content product from one category may not be applied toward
the goals for, or the total dollar amount of, any other category
listed in this section or Section 12157, 12162, 12301, or 12305.
(g) This section shall remain in effect only until January 1,
2001, and as of that date is repealed, unless a later enacted statute
which is chaptered prior to that date extends or deletes that date.
SEC. 5. Section 12301 of the Public Contract Code is amended to
read:
12301. The following definitions govern the interpretation of
this chapter:
(a) "Department" means the Department of General Services.
(b) "Board" means the California Integrated Waste Management
Board, as defined pursuant to Section 40110 of the Public Resources
Code.
(c) "Recycled paper product" means all paper and woodpulp products
containing postconsumer and secondary materials. "Postconsumer
material" means a finished material that would normally be disposed
of as a solid waste, having completed its life cycle as a consumer
item. "Secondary material" means fragments of finished products or
finished products of a manufacturing process, which has converted a
virgin resource into a commodity of real economic value, and includes
postconsumer material, but does not include fibrous waste generated
during the manufacturing process such as fibers recovered from
wastewater or trimmings of paper machine rolls (mill broke), wood
slabs, chips, sawdust, or other wood residue from a manufacturing
process. "Recycled paper product" means a paper product with not
less than 50 percent, by fiber weight, consisting of secondary and
postconsumer material with not less than 10 percent of fiber weight
consisting of postconsumer material.
For fine grades of paper such as uncoated printing and writing
grades, "recycled paper" means either of the following:
(1) For text and cover grades and cotton fiber papers, not less
than 50 percent by fiber weight consisting of secondary and
postconsumer material with not less than 20 percent of fiber weight
consisting of postconsumer material.
(2) For other uncoated printing and writing grades, not less than
20 percent by fiber weight consisting of postconsumer material.
Effective January 1, 1999, for both paragraphs (1) and (2), the
postconsumer material content shall be increased to 30 percent of
fiber weight.
(d) (1) Except as provided in paragraph (2), "recycled product"
means all materials, goods, and supplies, excluding paper products,
no less than 50 percent of the total weight of which consists of
secondary and postconsumer material with not less than 10 percent of
its total weight consisting of postconsumer material. A recycled
product shall include any product that could have been disposed of as
solid waste having completed its life cycle as a consumer item, but
otherwise is refurbished for reuse without substantial alteration of
its form. "Postconsumer material" means a finished material that
would have been disposed of as a solid waste, having completed its
life cycle as a consumer item, and does not include manufacturing
wastes. "Secondary material" means fragments of finished products or
finished products of a manufacturing process, which has converted a
resource into a commodity of real economic value, and includes
postconsumer material, but does not include excess virgin resources
of the manufacturing process.
(2) "Recycled product" also means other flat rolled steel products
no less than 25 percent of the total weight of which consists of
secondary and postconsumer material, with not less than 10 percent of
total weight consisting of postconsumer material. Products made
with flat rolled steel meeting these content percentages include, but
are not limited to, automobiles, cans, appliances, and office
furniture and supplies.
SEC. 6. Section 12305 of the Public Contract Code is amended to
read:
12305. This chapter applies to the procurement and purchase of
the following materials, goods, and supplies, or products containing
the following recycled resources, and meeting the specified content
requirements pursuant to either subdivision (c) or (d) of Section
12301, whichever is applicable:
(a) Paper products, which include, but are not limited to, fine
grades of paper, corrugated boxes, newsprint, tissue, and toweling.
(b) Glass.
(c) Oil.
(d) Plastic.
(e) Solvents and paint, including water-based paint.
(f) Tires.
(g) Steel.
SEC. 7. Section 12320 of the Public Contract Code is amended to
read:
12320. (a) The Legislature shall require contractors to certify
in writing to the contracting officer, or his or her representative,
whether the materials, goods, or supplies offered contain the minimum
percentage of recycled product required by subdivision (d) of
Section 12301. The contractor shall specify the minimum, if not
exact, percentage of recycled product in the product, both the
secondary and postconsumer material content. This certification
shall be furnished under penalty of perjury.
(b) The Legislature, in consultation with the department and the
board, shall review and revise the procurement specifications used by
the Legislature in order to eliminate discrimination against the
procurement or purchase of recycled products whenever quality of a
recycled product is reasonably equal to the same product manufactured
with virgin resources. In determining procurement specifications,
with the exception of any specifications that have been established
to preserve the public health and safety, all legislative procurement
and purchasing specifications shall be established in a manner that
results in the maximum legislative procurement and purchase of
recycled products.
(c) The Legislature, in consultation with the board, shall
establish purchasing practices that ensure, to the maximum extent
feasible, the purchase of materials, goods, and supplies that may be
recycled or reused when discarded.
(d) The Legislature shall give purchase preference to recycled
products when all of the following apply:
(1) The product meets applicable standards.
(2) The product can be substituted for a comparable nonrecycled
product.
(3) The product costs no more than a comparable nonrecycled
product.
(e) To encourage the use of postconsumer waste, the Legislature's
specifications shall require recycled product contracts to be awarded
to the bidder whose product contains the greater percentage of
postconsumer material if the fitness and quality and price meet the
requirements in subdivision (d) of Section 12301 and Section 12310.
(f) The Legislature shall set the following goals for purchases
made by the Legislature or any individual or group of individuals
purchasing on behalf of the Legislature:
(1) By January 1, 1991, at least 10 percent of legislative
purchases are of recycled products.
(2) By January 1, 1993, at least 20 percent of legislative
purchases are of recycled products.
(3) By January 1, 1995, at least 40 percent of legislative
purchases are of recycled products.
(4) The goals specified in this subdivision shall be applied to
the purchase by the Legislature of products described in subdivisions
(b), (c), (d), (e), (f), and (g) of Section 12305 and shall be
applied to the total dollar amount of the combined purchases of those
products.
Each specified goal shall be met for each product listed pursuant
to Section 12305. If at any time a goal has not been met, the
Legislature and the department, in consultation with the board, shall
review procurement policies of the Legislature and shall make
recommendations for immediate revisions to ensure that each goal is
met. Revisions include, but are not limited to, raising the
purchasing preference and altering the goals for all or each recycled
product. The department, in consultation with the board, shall
present its conclusions and recommendations on these revisions of
procurement policies to the Legislature in the department's annual
report pursuant to Section 12225.
SEC. 8. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.