BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           903 (Chesbro)
          
          Hearing Date:  08/27/2009           Amended: 08/17/2009
          Consultant:  Brendan McCarthy   Policy Vote: N/A
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          ____
          BILL SUMMARY: AB 903 requires manufacturers of compostable  
          plastic bags to ensure that bags are readily identifiable by  
          consumers. The bill requires manufacturers to submit reports to  
          the state showing that their bags meet specified certifications.  
          The bill gives the Integrated Waste Management Board the  
          authority to audit manufacturers to ensure compliance with  
          reporting requirements.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Staffing costs         $50        $100        $100      Special  
          *                                                       
          * Integrated Waste Management Account.
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          ____

          STAFF COMMENTS: Suspense file. As proposed to be amended.
          
          Under current law, plastic bags labeled "compostable" may not be  
          sold in the state unless they meet specified standards.

          AB 903 requires manufacturers of compostable plastic bags  
          meeting existing standards to ensure that their bags are easily  
          identifiable as compostable. The bill specifies the labeling  
          requirements necessary for these bags to be sold in the state.

          The bill requires manufacturers of compostable plastic bags to  
          report to the California Integrated Waste Management Board  
          annually demonstrating that their bags comply with specified  
          standards. The bill authorizes the Waste Board to audit  
          manufacturers to ensure compliance with the bill. The bill  
          requires the Waste Board to refer manufacturers that supply  
          false information to the Attorney General for prosecution for  
          fraud.











          The Waste Board estimates that it will cost about $650,000 per  
          year in staffing costs to compile and review reports from  
          manufacturers, verify compliance, conduct audits, and review  
          cases for potential referral for prosecution.

          This bill is identical to SB 228 (DeSaulnier) which was held in  
          this committee.

          As proposed to be amended by author, the Waste Board would be  
          authorized but not required to audit manufacturers and would not  
          be required to refer manufacturers that supply false information  
          to the Attorney General.