BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
497 (Correa)
Hearing Date: 05/18/2009 Amended: 05/04/2009
Consultant: Dan Troy Policy Vote: ED 5-1, EQ 5-2
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BILL SUMMARY: SB 497 would require school districts to
maintain a sufficient number of beverage container recycling
bins at each campus and public office of the district, but only
to the extent that the district incurs no costs. The recycling
services could be provided through various means including
agreement with a local Community Conservation Corps or recycler
to collect the beverage containers, providing a recycling
program as a fundraising activity, or by continuing a program
that is in existence on January 1, 2010. The bill would
authorize the Integrated Waste Management Board and the
Department of Conservation to provide information or supplies,
including both recycling bins and literature on how to start and
run a school-based recycling system, upon the request of the
district.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
DOC $100 $200 $200 General
Recycling bins $4,300
General*
*Counts toward meeting the Proposition 98 minimum funding
guarantee
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Current law provides for the Beverage Recycling and Litter
Reduction Act, administered by the Department of Conservation
(DOC), governs the recycling of California Redemption Value
beverage containers. The purpose of this program is to provide
beverage recycling containers to eligible applicants, including
schools, colleges, restaurants/bars, parks/recreational areas,
office buildings, and entertainment venues. Eligible applicants
include state and local government, business, individuals, and
non-profit organizations, as specified. Approximately $1.5
million is available for this purpose in 2009.
According to the Department of Conservation (DOC), a beverage
container recycling bin costs $85 per unit. Assuming 5 units
per campus at approximately 10,000 schools, costs for providing
a sufficient number of bins would total $4.3 million. This
figure can vary depending on a number of factors. Some campuses
may need many more than five bins to provide adequate coverage.
The DOC estimates that a large high school would need about 20
bins.
Also, due to the language of the bill, it is unclear how many
schools will ultimately participate in the program. The bill
requires schools to maintain a recycling program but
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SB 497 (Correa)
only to the extent that it does not incur costs. This language
makes it unclear whether school districts need to implement the
program or not. It may be difficult for districts to
determine in advance if the implementing the program will result
in costs. Further, the bill also specifies that any revenues
collected from the recycling program could be used at the
district's discretion. Could the district earn revenue from the
program and claim reimbursement for program costs through the
mandate process at the same time? Other mandates that provide
for offsetting revenues rarely result in a significant amount of
offsets of general fund obligations. The bill's uncertainty
appears to leave the state's share of costs to the
interpretation of the Commission on State Mandates.
There would be additional costs for the DOC for administration
of the program. These ongoing costs are estimated at
approximately $200,000, but would ultimately depend on
participation.