BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1547
                                                                  Page 1

          Date of Hearing:  July 2, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                SB 1547 (Simitian) - As Introduced:  February 24, 2012

           SENATE VOTE  :  38-0
           
          SUBJECT  :  Recycling:  beverage containers:  enforcement

           SUMMARY  :  Requires the California Department of Resources 
          Recycling and Recovery (CalRecycle) to exclude "other ineligible 
          material" when conducting surveys to determine a commingled rate 
          for beverage containers included in the California Beverage 
          Container Recycling and Litter Reduction Act (Bottle Bill).  

           EXISTING LAW  , under the Bottle Bill: 

          1)Requires CalRecycle to annually determine a commingled rate 
            for beverage containers and postfilled containers paid to 
            curbside recycling programs, collection programs, and 
            recycling centers.  

          2)Prohibits a person from paying or receiving any refund value,  
            processing payment, handling fee, or administrative fee for 
            beverage container material that the person knew, or should 
            have known, was imported from out of state, was previously 
            redeemed, was rejected, line breakage, or other ineligible 
            material.  

          3) Prohibits a person with intent to defraud from redeeming, 
            attempting to redeem, aiding the redemption of, receiving, 
            storing, or transporting an out-of-state container, rejected 
            container, line breakage, previously redeemed container, or 
            other ineligible material. 

          4) Requires CalRecycle to take all reasonable steps to exclude 
            beverage container material imported from out of state, 
            previously redeemed containers, rejected containers, and line 
            breakage, when conducting surveys to determine a commingled 
            rate. 

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, this bill has 
          negligible state costs.  








                                                                  SB 1547
                                                                  Page 2


           COMMENTS  :  Under the Bottle Bill, when more than 50 beverage 
          containers are redeemed by a consumer at a recycling center, the 
          center may pay them by weight rather than counting each 
          individual container.  Because beverage container weights vary, 
          the "comingled rate" is established by CalRecycle based on 
          survey information.  Comingled rates are also established for 
          curbside and community service programs.  

          The author states that this bill "seeks to ensure that when 
          conducting these surveys, CalRecycle excludes all materials not 
          eligible for redemption value.  According to CalRecycle, these 
          rates are typically adjusted twice a year, but may be updated 
          more frequently if data reflects a change of greater than 10 
          percent.  Given that the majority of containers are redeemed at 
          these rates, it is important that they are as accurate as 
          possible to reduce fraud."  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Northern California Recycling Association
           
            Opposition 
           
          None on file


           Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916) 
          319-2092