BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           228 (DeSaulnier)
          
          Hearing Date:  01/21/2010           Amended: As proposed to be  
          amended
          Consultant:  Brendan McCarthy   Policy Vote: EQ 5-2
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          ____
          BILL SUMMARY: SB 228 requires manufacturers of compostable  
          plastic bags to ensure that the bag is 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                                $650      Special  
          *                                                       
          * Integrated Waste Management Account
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          ____

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

          SB 228 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.

          The author's proposed amendments push back implementation to  
          July 1, 2011; adds requirements for small bags; requires the  
          Department of Resources Recycling and Recovery to publicize  
          certain information; makes the authority to audit manufacturers  
          permissive, rather than required; and eliminates the requirement  
          that any reporting of misleading information from manufacturers  
          be referred to the Attorney General.