BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1998
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          ASSEMBLY THIRD READING
          AB 1998 (Brownley)
          As Amended  May 28, 2010
          Majority vote 

           NATURAL RESOURCES   6-3         APPROPRIATIONS      11-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Brownley, De     |Ayes:|Fuentes, Ammiano,         |
          |     |Leon, Hill, Huffman,      |     |Bradford,                 |
          |     |Skinner                   |     |Coto, Davis, Monning,     |
          |     |                          |     |Ruskin, Skinner, Solorio, |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Gilmore, Knight, Logue    |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits stores, as defined, from providing  
          single-use carryout bags to customers.  Specifically,  this bill  :  


          1)Defines terms used in the bill, including: 

             a)   "Recycled paper bag" as a paper carryout bag that  
               contains a minimum of 40% post-consumer recycled content;  
               is accepted for recycling in curbside programs in a  
               majority of households that have access to curbside  
               recycling programs; is compostable; and, has printed on the  
               bag the name of the manufacturer, the location where  
               manufactured, and the percentage of post-consumer content;

             b)   Until a standard is adopted by the Department of  
               Resources Recycling and Recovery (DRRR), "reusable bag" as  
               a bag that is designed and manufactured for at least 100  
               uses and is made of a washable material that "does not  
               contain lead or any toxic metal in a toxic amount, as  
               determined by the Department."   By January 1, 2013,  
               requires DRRR to establish standards for reusable bags, as  
               specified;

             c)   "Single-use carryout bag" as a bag made of plastic,  
               paper, or other material that is provided by a store to a  








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               customer at the point of sale and that is not a reusable  
               bag.  Single-use carryout bag does not include a bag  
               provided at a pharmacy to a customer purchasing  
               prescription medication or a nonhandled bag used to protect  
               a p[purchased item from damaging or contamination other  
               purchased items when placed in a recycled paper bag or  
               reusable bag; and,

             d)   "Store" as supermarkets; stores over 10,000 square feet  
               that include a pharmacy; and, a convenience food store or  
               foodmart engaged in retailing a limited line of goods that  
               generally includes milk, bread, soda, and snacks.  

          2)Prohibits, on and after January 1, 2012, a store from  
            providing single-use carryout bags to customers at the point  
            of sale.  Requires stores to make reusable bags available for  
            purchase and authorizes stores to provide reusable bags at no  
            cost.  

          3)Requires, on and after July 1, 2013, that a store only provide  
            reusable bags to consumers.  

          4)Authorizes stores to provide customers participating in the  
            California Special Supplemental Food Program for Women,  
            Infants, and Children with reusable bags or recycled paper  
            bags at no cost.  

          5)Requires stores to make available for sale to consumers at the  
            point of sale a recycled paper bag at a reasonable cost, but  
            not less than five cents.  

          6)Requires, on and after January 1, 2013, and every two-years  
            thereafter, producers of reusable gags to submit a  
            certification to DRRR that each bag meets the requirements  
            specified in the bill and any standards developed by DRRR.   
            Requires that producers also submit a fee for each  
            certification, not to exceed $10,000 per producer for the  
            initial certification and between $2,000 and $3,000 every  
            two-years thereafter.  Specifies that the fees collected be  
            used by DRRR to administer the requirements of the bill.  

          7)Authorizes DRRR to conduct inspections to enforce this  
            chapter.  









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          8)Establishes, for stores that do not comply with the bag  
            distribution requirements above, administrative civil  
            penalties up to $500 for the first violation, and an  
            additional $500 for subsequent violations, up to a total of  
            $5,000.  

          9)Establishes, for violations of the reusable bag certification  
            requirements, or any submission of false information,  
            administrative civil penalties of up to $50,000 per violation,  
            not to exceed an annual total of $150,000.  

          10)Pre-empts local governments from enforcing or adopting any  
            new or existing law, ordinance, resolution, regulation, or  
            rule on any store, as defined, relating to reusable bags,  
            single-use carryout bags, recycled paper bags, or any other  
            bag referred to in the bill.  

           EXISTING LAW  : 

          1)Requires operators of stores (defined as supermarkets and  
            stores over 10,000 square feet that include a pharmacy) to  
            establish an in-store plastic carryout bag recycling program.   
            The program must include: 

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

             b)   Easily accessible recycling bins for plastic bags;

             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 California  
               Integrated Waste Management Board (CIWMB) upon request;  
               and,

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

          2)Pre-empts local governments from requiring stores that meet  
            these provisions to implement separate recycling programs or  








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            from imposing a fee on plastic bags.

          3)Sunsets the above provisions on January 1, 2013.
           
          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)One-time costs during 2011-12 and 2012-13, possibly as much as  
            $1.5 million, equivalent to 21 positions, to prepare  
            regulations, assist regulated stores, characterize reusable  
            bags, and develop a program-specific database [Integrated  
            Waste Management Account (IWMA)].

          2)Ongoing cost, possibly as much as $1 million annually,  
            equivalent to 15 positions, beginning in 2013-14, to provide  
            ongoing assistance to regulated stores, conduct site  
            inspections and audits, characterize reusable bags, and  
            maintain database [Integrated Waste Management Account  
            (IWMA)].

          3)This bill has one time costs of approximately $150,000 in  
            2013-14 to develop report to Legislature (IWMA).  

          4)All costs are likely to be covered by revenue from the fees  
            and penalties established by the bill.  

           COMMENTS  :  Plastic bags are a significant contributor to litter  
          and marine debris.  Their light weight and expansive nature  
          makes them especially prone to blowing into waterways.  Even  
          when disposed of in the waste stream, these bags pose litter  
          problems as they blow off of trucks and out of solid waste  
          handling operations.  According to the US EPA, marine debris has  
          become a serious problem along shorelines, coastal waters,  
          estuaries, and oceans throughout the world.  It is estimated  
          that 60-80% of all marine debris, and 90% of floating debris, is  
          plastic.  Marine debris can be life threatening to marine  
          organisms and can wreak havoc on coastal communities and the  
          fishing industry.  Recent studies by the Algalita Marine  
          Research Foundation and the Southern California Coastal Water  
          Research Project have found that the average mass of plastics in  
          the seawater off the coast of Long Beach is two and a half times  
          greater than the average mass of plankton.  After storms with  
          excessive runoff, the mass of plastics is even greater.  A  
          similar study over seawater 1,000 miles west of San Francisco  








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          found the mass of plastics was six times the mass of plankton in  
          drifts where marine animals congregate for feeding on plankton.   


          In February 2007, the Ocean Protection Council (OPC) adopted a  
          resolution to reduce marine debris, which included specific  
          actions on single-use plastics.  In November 2008, OPC adopted  
          its final implementation strategy for the resolution.   The  
          strategy includes three "priority actions for measurable  
          success:" 1) Implement a take-back program for convenience food  
          packaging;  2)  Prohibit single-use products that pose  
          significant ocean littler impacts where a feasible alternative  
          is available;  and, 3)  Assess fees on commonly littered items.   
           Plastic single-use bags are included in action 2; OPC proposes  
          that a fee be added for all single use paper and plastic bags to  
          incentivize people to switch to reusable bags.  OPC goes on to  
          suggest that if a fee does not dramatically reduce the use of  
          bags, a ban should be considered.  

          Reusable bags are the most environmentally benign alternative to  
          plastic bags.  Paper, the most likely replacement for plastic,  
          also has drawbacks, including being more costly for stores and  
          using more energy to produce and recycle.  However, these do  
          degrade when littered and do not pose the threats to marine life  
          that plastic bags do.  Additionally, compostable or degradable  
          plastic bags are not recyclable and contaminate recycling  
          equipment if they are mixed in with conventional plastic bags.   
          Moreover, most degradable bags do not break down in a marine  
          environment.

          AB 2449 (Levine), Chapter 845, Statutes of 2006 requires all  
          stores to establish a plastic bag recycling program.  The stated  
          goal of this legislation was to increase recycling, and to  
          create the infrastructure necessary to collect and recycle  
          plastic bags.  That bill also pre-empted local governments from  
          enacting a per-bag fee on plastic bags.  Local governments have  
          indicated concerns with the pre-emption created by AB 2449,  
          arguing that the fee could be used to discourage bag  
          distribution and fund anti-litter or recycling programs.
           
           According to the author, Californians use over 19 billion  
          plastic bags annually (approximately 552 per person), creating  
          over 147,000 tons of waste.  CIWMB staff estimates that only  
          5-6% of plastic materials are recycled in California.  The  








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          author also states that paper bags also have negative  
          environmental impacts, including deforestation, air pollution,  
          and excessive energy consumption.  The author states that  
          California currently spends approximately $25 million annually  
          to clean up plastic bag waste, and municipalities collectively  
          spend $300 million annually.  

           
          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092 


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