BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1998 (Brownley)
Hearing Date: 08/02/2010 Amended: 07/15/2010
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
AB 1998 (Brownley), Page 2
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BILL SUMMARY: AB 1998 prohibits retailers from providing
single-use bags to customers. The bill authorizes retailers to
provide reusable bags that meet specified standards to
customers. The bill requires retailers to provide recycled paper
bags to customers for not less than $0.05 per bag. The bill
generally preempts local regulation in this area.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Developing regulations $100 $100 Special
*
Enforcement and testing $1,700 $2,000 Special
*
Fee revenues One time revenues likely less than
($200)Special *
Ongoing revenues likely less than
($50)Special *
* New special fund.
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Current law requires operators of grocery stores and large
retail stores that include a pharmacy to operate in-store
recycling programs to take back plastic bags. Current law
provides that local governments may not implement separate
recycling programs or impose fees on stores that meet these
requirements. This requirement sunsets on January 1, 2013
AB 1998 generally prohibits retailers from providing customers
with single-use plastic bags. After January 1, 2012, the bill
prohibits operators of supermarkets and large retail stores from
providing single-use plastic bags to customers. After July 1,
2013, operators of supermarkets and large retail stores may only
provide reusable bags that meet standards specified in the bill
to customers. Beginning in July 1, 2013, both of these
AB 1998 (Brownley), Page 2
requirements apply to other (smaller) retail stores.
The bill requires retailers to make recycled-content paper bags
available to customers for not less than $0.05 per bag. The bag
allows stores in San Francisco to sell compostable plastic bags
to customers for not less than $0.05 per bag.
Beginning on January 1, 2013, the bill requires manufacturers of
reusable bags to meet standards set forth in the bill or
developed by the Department of Resources Recycling and Recovery.
The bill imposes a one-time certification fee on reusable bag
manufacturers of not more than $10,000 and imposes a biennial
certification fee of not more than $3,000.
The bill authorizes the Department to audit retailers and
manufacturers to ensure compliance with the provisions of the
bill and test reusable bags for compliance with statutory and
regulatory standards.
The bill authorizes the Department to impose civil penalties up
to $5,000 on retailers and civil penalties up to $150,000 on
reusable bag manufacturers that do not comply with the
requirements of the bill.
The bill preempts local regulation in this area unless specified
in the bill.
The bill moves up the sunset of the existing in-store recycling
requirement to January 1, 2012.
Staff estimates the Department will need about $100,000 per year
in the first two years to develop guidelines and regulations,
about $1,700,000 per year in annual costs to audit reusable bag
manufacturers and retailers to ensure compliance with the bill,
and about $300,000 per year for testing of reusable bags to
ensure they meet standards.
The bill authorizes the Department to impose an initial
certification fee and biennial certification fees on reusable
bag manufacturers. The number of reusable bag manufacturers that
will apply for certification is unknown. If twenty manufacturers
apply for certification, the bill will result in $200,000 in
one-time revenues and $30,000 per year in ongoing revenues.
AB 1998 (Brownley), Page 2
AB 68 (Brownley) and AB 87 (Davis) both sought to impose a $0.25
fee on single use bags. Both bills were held in the Assembly
Appropriations Committee.
AB 2138 (Chesbro) sought to establish recycling and composting
requirements for take-out food packages. That bill was held in
the Assembly Appropriations Committee.
SB 228 (DeSaulnier) requires bags labeled "compostable" to be
easily identifiable for sorting. That bill is in the Assembly
Appropriations Committee.
SB 531 (DeSaulneir) requires manufacturers of plastic carryout
bags to develop programs to encourage recycling. That bill is in
the Assembly Natural Resources Committee.