BILL ANALYSIS �
AB 837
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Date of Hearing: May 2, 2011
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 837 (Nestande) - As Amended: March 31, 2011
SUBJECT : Solid waste: plastic food and beverage containers
SUMMARY : Prohibits a manufacturer or supplier from selling a
plastic food or beverage container that is advertised with a
specific recycling content amount unless the manufacturer or
supplier is able to provide certification of that claim in a
format that is easy to understand and scientifically accurate.
EXISTING LAW :
1)Imposes civil liability and criminal penalties for any
unlawful, unfair, or fraudulent business act or any unfair,
deceptive, untrue, or misleading advertising.
2)Prohibits a person from selling a food or beverage container
that is labeled "compostable" or "marine degradable," unless
the container meets specific American Society for Testing and
Materials (ASTM) standards. Authorizes a city, county, or the
state to impose civil liability in the amount of $500 for the
first violation of this law, $1,000 for the second violation,
and $2,000 for the third and any subsequent violation.
THIS BILL :
1)Prohibits a manufacturer or supplier from selling a plastic
food or beverage container that is advertised with a specific
recycling content amount unless the manufacturer or supplier
is able to provide certification of that claim in a format
that is easy to understand and scientifically accurate.
2)Requires a manufacturer or supplier to provide information and
documentation verifying the recycling content of a plastic
food or beverage container within 90 days of a request for
such information made by a member of the public or a state
agency.
3)Defines "manufacturer" as a person, firm, association,
partnership, or corporation that produces a plastic food or
beverage container.
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4)Defines "supplier" as a person who purchases plastic food or
beverage containers from a manufacturer for sale or
distribution in this state.
5)Authorizes a city, county, or the state to impose civil
liability in the amount of $500 for the first violation of the
bill, $1,000 for the second violation, and $2,000 for the
third and any subsequent violation.
FISCAL EFFECT : Unknown
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COMMENTS :
1)Background. According to the author, the bill promotes truth
in advertising and helps stop the practice of "greenwashing."
Greenwashing refers to a false or inaccurate suggestion that
products, brands or corporate policies are ecologically
conscious. Existing state law prohibits a person from falsely
labeling a plastic food or beverage container as compostable.
In a similar way, this bill would prohibit a person from
falsely advertising the recycled content of a plastic food or
beverage container.
The Integrated Waste Management Act and Global Warming
Solutions Act establish policies that support recycling for
the purpose of diverting waste from landfills and reducing
greenhouse gas emissions. Many California consumers
consciously advance these policies by supporting products made
from recycled materials. The bill protects these
conscientious consumers by deterring fraud in the marketplace
as it relates specifically to plastic food and beverage
containers. The bill also promotes a level playing field
among producers of plastic food and beverage containers.
2) Federal Law. Under federal law, unfair or deceptive acts or
practices in or affecting commerce are declared unlawful. 15
U.S.C. � 45. The Federal Trade Commission (FTC) has published
guides that help explain the effect this law has on
environmental advertising and marketing practices, such as
claims regarding degradability and recycling content. The
guides provide specific examples of claims that demonstrate
how the law works.
3)Previous Legislation. AB 2147 (Harman) Chapter 349, Statutes
of 2006 prohibits the sale of a plastic food or beverage
container that is labeled as "biodegradable," "compostable,"
"degradable," or otherwise unless the container meets current
American Society for Testing Materials (ASTM) standard
specifications for the term used on the label. AB 2071
(Karnette) Chapter 570, Statutes of 2008 imposes penalties for
failure to comply with AB 2147.
4)To Whom Should the Bill's Requirements Apply? The bill
applies to manufacturers and suppliers who sell plastic food
or beverage containers that are advertised with a specific
recycling content. A "manufacturer" is defined as a person
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who produces a plastic food or beverage container. A
"supplier" is defined as a person who purchases plastic food
or beverage containers from a manufacturer for sale or
distribution in this state. Under this definition of
supplier, a person can avoid liability by simply purchasing
containers from an intermediary rather than directly from the
manufacturer. This loophole could benefit a person who
knowingly sells containers with incorrect recycling content
labels. The committee and author may wish to amend the bill
to redefine "supplier" to close this loophole.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
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Opposition
California Nevada Soft Drink Association
Grocery Manufacturers Association
Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916)
319-2092