BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1998 (Brownley)
Hearing Date: 08/ 31/2010 Amended: 08/27/2010
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 plastic bags to customers. The bill authorizes
retailers to provide reusable bags that meet specified standards
to customers. The bill requires retailers charge customers for
any recycled paper bags the retailer provides. 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
*
Reusable bag standards $500 Special
*
enforcement
Grants and loans for reusable $2,000 Special
**
bag manufacturers
* New special fund. Ongoing costs offset by fee revenues.
** Integrated Waste Management 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 requires stores to continue to collect plastic bags from
customers for recycling.
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
AB 1998 (Brownley), Page 3
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
requirements apply to other (smaller) retail stores.
After January 1, 2012, the bill requires stores that provide
recycled-content paper bags to customers to charge the customer
the average cost of those bags. The bill allows local
jurisdictions to allow stores to sell compostable plastic bags
to their customers, providing certain conditions are met.
Beginning on January 1, 2013, the bill requires manufacturers of
reusable bags to meet standards set forth in the bill. The bill
requires the Department of Resources Recycling and Recovery to
enforce the reusable bag standards and authorizes the Department
to impose fees to recover its costs.
The bill authorizes the Department to impose civil penalties up
to $5,000 for violations of reusable bag standards.
The bill preempts local regulation in this area unless specified
in the bill.
The bill authorizes local governments to impose civil penalties
to enforce the provisions of the bill.
The bill requires the Department to report to the Legislature on
the effectiveness of the implementation of the bill by January
1, 2015.
Staff estimates the Department will need about $100,000 per year
in the first two years to develop guidelines and regulations and
about $500,000 per year for testing of reusable bags to ensure
they meet standards. The ongoing costs should be covered by fee
revenues.
The bill appropriates $2 million from the Recycling Market
Development Revolving Loan Account in the Integrated Waste
Management Fund to the Department for grants and loans to
plastic bag manufacturers to expedite the transition from the
manufacture of single-use bags to the manufacture of reusable
bags.
AB 1998 (Brownley), Page 4
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.