BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 712
                                                                  Page 1


          ASSEMBLY THIRD READING
          AB 712 (Williams)
          As Amended  March 31, 2011
          Majority vote 

           NATURAL RESOURCES   9-0                                         
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Knight,          |     |                          |
          |     |Brownley, Dickinson,      |     |                          |
          |     |Grove, Halderman,         |     |                          |
          |     |Huffman, Monning, Skinner |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits the Department of Resources Recycling and 
          Recovery (CalRecycle) from providing the Beverage Container 
          Recycling and Litter Reduction Act (Bottle Bill) funds to a 
          city, county, or city and county that prevents the siting or 
          operation of a certified recycling center at a supermarket site.

           EXISTING LAW  , the Beverage Container Recycling and Litter 
          Reduction Act (Bottle Bill):

          1)Establishes refund value and redemption payments for beverage 
            containers. 

          2)Requires a distributor to pay a redemption payment for every 
            beverage container sold or offered for sale in the state to 
            CalRecycle, which is required to deposit those amounts in the 
            California Beverage Container Recycling Fund (Fund).  The 
            money in the Fund is continuously appropriated for the payment 
            of refund values and processing fees.

          3)Specifies that every convenience zone must be served by at 
            least one certified recycling center, with specified operating 
            hours.  If a zone is "unserved" by a certified recycling 
            center, existing law requires that the dealer (store) redeem 
            beverage containers from consumers.  

          4)Authorizes funding for specified purposes to increase beverage 
            container recycling, including payments to cities and 
            counties.









                                                                  AB 712
                                                                  Page 2


           FISCAL EFFECT  :  This bill is keyed non-fiscal.

           COMMENTS  :  The Bottle Bill is designed to provide consumers with 
          a financial incentive for recycling and to make recycling 
          convenient to consumers so that the beverage container component 
          of the solid waste stream will decrease.  The centerpiece of the 
          Bottle Bill is the California Redemption Value (CRV).  Consumers 
          pay a deposit, the CRV, on each beverage container they 
          purchase.  Retailers collect the CRV from consumers when they 
          buy beverages.  The dealer retains a small percentage of the 
          deposit for administration and remits the remainder to the 
          distributor, who also retains a small portion for administration 
          before remitting the balance to CalRecycle.  When consumers 
          return their empty beverage containers to a recycler (or donate 
          them to a curbside or other program), the deposit is paid back 
          as a refund.  

          To provide convenient recycling opportunities to consumers, 
          certified recycling centers are located on the site of a 
          supermarket (dealer) and accept beverage containers for 
          recycling and remit the CRV refund to consumers.  There must be 
          one certified recycling center in each convenience zone, which 
          is typically a half-mile radius circle around a dealer.  In 
          order to assist these centers cover their operating costs, the 
          Bottle Bill allocates handling fees.  If there is no certified 
          recycler in a convenience zone, the dealer is responsible for 
          taking back containers. 

          According to the author, there are eight cities that prohibit 
          manned recycling facilities:  Newport Beach, Laguna Hills, 
          Laguna Niguel, Ladera Ranch, Manhattan Beach, Hermosa Beach, 
          Tustin and Vista.  The California Grocers Association provided 
          two specific examples.  The City of Tustin only allows bulk 
          reverse vending or reverse vending machines on retail and 
          commercial lots.  Tustin does not allow a manned facility on a 
          grocers' parking lot.  The City of Hermosa Beach only allows 
          recycling facilities in its heavy commercial zones.  Hermosa 
          Beach does not allow recycling centers in retail and commercial, 
          where all of its grocery stores are located.

           
          Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092 









                                                                  AB 712
                                                                  Page 3



                                                                FN: 0000384