BILL ANALYSIS
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THIRD READING
Bill No: SB 1401
Author: Simitian (D)
Amended: 4/21/10
Vote: 21
SENATE ENV. QUALITY COMMITTEE : 6-0, 4/5/10
AYES: Simitian, Runner, Corbett, Lowenthal, Pavley,
Strickland
NO VOTE RECORDED: Hancock
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Beverage containers: redemption payments
SOURCE : Author
DIGEST : This bill changes, from 90 to 80 days, the
timeline for notifications and actions required when the
Department of Resources Recycling and Recovery makes a
determination upon its review of the California Beverage
Container Recycling Fund that there is not adequate funds
to pay the refund values and necessary disbursements.
ANALYSIS : Existing law, under the California Beverage
Container Recycling and Litter Reduction Act (Section 14500
et seq. of the Public Resources Code (PRC):
1. Establishes refund value and redemption payments for
beverage containers.
CONTINUED
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2. Requires a distributor to pay a redemption payment for
every beverage container sold or offered for sale in the
state to the Department of Resources Recycling and
Recovery (DRRR) and DRRR is required to deposit those
amounts in the California Beverage Container Recycling
Fund (Fund). The money in the Fund is continuously
appropriated to DRRR for the payment of refund values
and processing fees.
3. Requires DRRR to review the fund status of the fund
every three months to ensure that funds are adequate to
make expenditures according the Act (Sections 14560 and
14581) and make specified determinations.
4. Authorizes funding for specified purposes to increase
beverage container recycling including public education
and recycling grants.
This bill:
1. Requires that the status reports on fund review to
include fund balances and be posted on DRRR's Internet
Web site.
2. Adjusts the timeline for the notifications and actions
required after DRRR review of the fund status.
3. Makes technical and conforming changes.
Comments
This bill makes technical and clarifying changes to
provisions of AB 7 X8 (Assembly Budget Committee), Chapter
5, Statutes of 2009-10, Eighth Extraordinary Session, to
aid in implementation for DRRR.
AB 7 X8 made changes to the Bottle Bill Program to address
a shortfall in program funding. The bill:
1. Accelerated California Refund Value payments by
distributors in order to provide a $100 million one-time
revenue increase in the current fiscal year.
2. Made program participant's "whole" for the second half
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of fiscal year 2010-11, authorized program payments
retroactive to January 1, 2010.
3. Capped processing fee offsets made by the DRRR to
manufacturers for the 2010 and 2011 calendar years at
2008 calendar year levels, resulting in approximately $9
million in current year savings and $18 million in
budget year savings.
4. Identified additional savings of approximately $28
million in the current year (and approximately $56
million in the budget year) via two-year suspensions of
various continuous appropriations (Section 14581 of the
Public Resources Code).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
TSM:mw 4/27/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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