Bill Text: CA AB68 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Solid waste: single-use carryout bags.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB68 Detail]

Download: California-2009-AB68-Amended.html

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BILL NUMBER: AB 68	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2009
	AMENDED IN ASSEMBLY  MARCH 31, 2009

INTRODUCED BY   Assembly Member Brownley
   (Principal coauthor: Senator Pavley)
   (Coauthors: Assembly Members Blumenfield, Chesbro, Feuer, Huffman,
Krekorian, Ma, Nava, John A. Perez, and Yamada)
   (Coauthor: Senator DeSaulnier)

                        DECEMBER 12, 2008

   An act to add Chapter 5.3 (commencing with Section 42280) to Part
3 of Division 30 of the Public Resources Code, relating to solid
waste.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 68, as amended, Brownley. Solid waste: single-use carryout
bags.
   Existing law requires an operator of a store, as defined, to
establish an at-store recycling program that provides to customers
the opportunity to return clean plastic carryout bags to that store.
Existing law imposes various requirements on at-store recycling
programs, including requiring a store to maintain records describing
the collection, transport, and recycling of plastic carryout bags
collected by the store.
   Under existing law, the California Integrated Waste Management
Board (board) administers laws related to waste management.
   This bill would, on and after July 1, 2010, prohibit a store, as
defined, from providing a single-use carryout bag to a customer
unless the store charges a fee of not less than $0.25 per bag at the
point of sale. The bill would exempt certain customers from paying
the fee. The bill would establish the Bag Pollution Fund in the State
Treasury and would require a store to remit the single-use carryout
bag fees, less a specified amount, to the State Board of Equalization
for deposit in that fund. The bill would prohibit a store from
distributing a single-use carryout bag that is not a plastic or
compostable carryout bag that meets specific requirements.
   The bill would require the board to administer and enforce the
single-use carryout bag provisions and would require the State Board
of Equalization to administer the collection of the fees imposed on
those bags.
   The moneys in the fund would be required to be expended, upon
appropriation by the Legislature, in a specified order of priority,
by the board for grants to cities and counties for programs related
to single-use carryout bags and reusable bag giveaway programs, by
the State Board of Equalization to reimburse its costs associated
with collecting the fees, by the board for purposes of implementing
the above provisions, and by the board, in consultation with
specified state agencies, to develop and implement specified programs
related to single-use carryout bags. The bill would expressly
prohibit the expenditure of revenues from the fund for activities
unrelated to the prevention or reduction of single-use bag pollution.

   The bill would require the board, on or before January 1, 2013, to
submit to the Legislature a report regarding the effectiveness of
the above provisions and recommendations to further encourage the use
of reusable bags.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Single-use carryout bags provided by stores impose hidden
costs on consumers, local governments, the state, taxpayers, and the
environment.
   (b) Litter from plastic carryout bags poses a significant burden
to California's economy and a serious threat to our marine ecosystem.
It is estimated that Californians consume 19 billion plastic
carryout bags per year. However, according to the California
Integrated Waste Management Board, the recycling rate for these bags
is less than five percent and it currently costs the state
twenty-five million dollars ($25,000,000) annually to landfill
discarded plastic bags. Public agencies in California also spend more
than three hundred million dollars ($300,000,000) annually in litter
cleanup.
   (c) Despite past efforts to control ocean litter, the quantity of
trash in the coastal and ocean environment is increasing dramatically
worldwide. It is estimated that 60 to 80 percent of all marine
debris, and 90 percent of floating debris  ,  is plastic. It
may take hundreds of years for this plastic to break down and some
plastics never truly biodegrade in the marine environment. Streams
and storm drains carry plastic bags to the ocean where they are
frequently mistaken as food by marine life. Over 267 species
worldwide have been impacted by plastic litter such as plastic bags
through entanglement or ingestion.
   (d) Imposing a fee on carryout bags has proven successful in
significantly reducing the number of single-use carryout bags. Since
2002, Ireland has implemented a twenty-two euro-cent (€0.22)
levy, which is equivalent to thirty-three cents ($0.33), on
single-use plastic bags and reported a significant decrease in
consumer use and pollution from carryout bags by over 90 percent. The
levy has generated more than one hundred seventeen million euros
(€117,000,000), which is equivalent to one hundred fifty million
dollars ($150,000,000), to support waste reduction and prevention
programs, promote environmentally friendly products, implement local
waste management plans, and implement environmental education and
awareness initiatives.
   (e) Paper bags made from virgin materials are not sustainable
alternatives to plastic carryout bags because the production of these
types of bags contributes to deforestation, natural resource
depletion, greenhouse gas emissions, and additional waterborne
wastes. Paper carryout bags that contain no old-growth fiber are 100
percent recyclable and contain a minimum of 40 percent postconsumer
recycled content have fewer negative impacts than virgin paper bags.
   (f) Plastics made from biobased sources that are marketed as
"compostable" or "biodegradable" have not been shown to degrade in
aquatic environments and require conditions only available in
composting facilities to rapidly break down into constituents that
assimilate back into the environment. With the exception of the City
and County of San Francisco, the City of Oakland, and a few other
communities, these composting facilities are not typically available
to local jurisdictions and compostable plastic in communities without
commercial composting would be disposed of as waste.
   (g) On February 8, 2007, the Ocean Protection Council adopted a
comprehensive resolution to reduce marine debris by targeting
specific actions on single-use plastic packaging. On November 20,
2008, the Ocean Protection Council adopted a final implementation
strategy for that resolution that includes a legislative
recommendation to charge consumers a fee on all single-use plastic
and paper carryout bags as an incentive for consumers to switch to
reusable bags. The Ocean Protection Council further recommended that
fees on commonly littered items, such as single-use bags, should fund
litter abatement, stormwater capture, and litter prevention and
outreach programs to reduce the incidence of marine debris.
   (h) Requiring stores to end the subsidy of single-use carryout
bags and charge their full economic and environmental costs will
provide consumers with an appropriate market signal to make informed
decisions regarding carryout bag reduction and will encourage
consumers to opt for reusable bags.
   (i) Requiring stores to charge and remit a fee for the
distribution of single-use carryout bags will help the state and
local governments to offset the environmental and social costs of
single-use carryout bags.
   (j) There is a need for a long-term shift away from litter control
and waste management and towards pollution prevention and
sustainable materials in the development of consumer products.
   (k) Green chemistry, material science, and sustainable design
offer a new approach to solving environmental damage caused by
single-use carryout bags.
   (l) The imposition of the fees pursuant to Section 42281 of the
Public Resources Code would not result in the imposition of a tax
within the meaning of Article XIII A of the California Constitution
because the amount and nature of the fee have a fair and reasonable
relationship to the environmental, public health, and societal
burdens imposed by the use of single-use carryout bags, and there is
a sufficient nexus between the fees imposed and the use of those fees
to support programs to prevent the litter of single-use carryout
bags, to clean up the litter caused by single-use carryout bags, and
to encourage the reduction of the use of single-use carryout bags.
   (m) (1) There is a clear nexus between the type and amount of the
fees imposed pursuant to this act and the environmental, public
health, and societal costs resulting from single-use carryout bags.
   (2) It is the intent of the Legislature that the fees that are
imposed pursuant to Section 42281 of the Public Resources Code be
consistent with Sinclair Paint Co. v. State Bd. of Equalization
(1997) 15 Cal.4th 866.
  SEC. 2.  Chapter 5.3 (commencing with Section 42280) is added to
Part 3 of Division 30 of the Public Resources Code, to read:
      CHAPTER 5.3.  SINGLE-USE CARRYOUT BAGS



      Article 1.  Definitions


   42280.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Bag Pollution Cleanup Fee" means the fee imposed pursuant to
Section 42281.
   (b) "Board" means the California Integrated Waste Management
Board.
   (c) "Compostable carryout bag" means a carryout bag provided by a
store to a customer at point of sale that meets both of the following
requirements:
   (1) Is derived from 100 percent biobased sources containing no
products derived from genetically modified feedstocks.
   (2) Meets the American Society for Testing and Materials (ASTM)
Standard Specification for Compostable Plastics as specified in
subparagraph (A) of paragraph (1) of subdivision (b) of Section
42356.
   (d) "Fund" means the Bag Pollution Fund established pursuant to
subdivision (a) of Section 42285.
   (e) "Paper carryout bag" means a carryout bag provided by a store
to a customer at point of sale that meets all of the following
requirements:
   (1) Contains no old-growth fiber.
   (2) Is 100 percent recyclable.
   (3) Contains a minimum of 40 percent postconsumer recycled
content.
   (f) "Plastic carryout bag" means a plastic bag designed for single
use that is provided by a store to a customer at the point of sale.

   (g) "Reusable bag" means a bag that is made of cloth or other
machine washable fabric that is specifically designed and
manufactured for multiple reuse.  
   (g) "Reusable bag" means a bag that is specifically designed and
manufactured for multiple reuse, meaning 50 or more uses. 
   (h) "State board" means the State Board of Equalization.
   (i) "Store" means a retail establishment that provides paper,
compostable, or plastic carryout bags to its customers as a result of
the sale of a product and that meets any of the following
requirements:
   (1) Meets the definition of a "supermarket" in Section 14526.5.
   (2) Has over 10,000 square feet of retail space that generates
sales or use tax pursuant to the Bradley-Burns Uniform Local Sales
and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division
2 of the Revenue and Taxation Code) and has a pharmacy licensed
pursuant to Chapter 9 (commencing with Section 4000) of Division 2 of
the Business and Professions Code.
   (3) Is a chain convenience food store or foodmart primarily
engaged in retailing a limited line of goods that generally includes
milk, bread, soda, and snacks, and has a total cumulative square
footage of 10,000 square feet or more.

      Article 2.  Bag Pollution Cleanup Fee


   42281.  (a) Except as provided in Section 42283, on and after July
1, 2010, a store shall not provide a single-use carryout bag to a
customer at the point of sale, unless the store charges the customer
not less than twenty-five cents ($0.25) per bag.
   (b) A store shall only distribute reusable bags, or single-use
carryout bags that are paper, compostable, or plastic carryout bags.
   (c) The amount charged pursuant to subdivision (a) shall not be
subject to sales tax, shall be separately stated on the receipt
provided to the customer at the time of sale, and shall be identified
as the Bag Pollution Cleanup Fee.
   (d) (1) A store charging a fee pursuant to subdivision (a) may
retain a portion of the fee, as specified in paragraph (2), in an
amount necessary to reimburse the store's costs associated with
complying with this chapter, in accordance with Section 42284.5. The
store shall remit the remainder of the fee to the state board
pursuant to Section 42284.
   (2) A store may retain not more than five cents ($0.05) of the fee
for each plastic or compostable carryout bag. A store may retain not
more than ten cents ($0.10) of the fee for each bag.
   (e) Any other transaction fee charged by a store in relation to
providing a single-use carryout bag shall be identified separately
from the Bag Pollution Cleanup Fee.
   42283.  The fee imposed pursuant to Section 42281 shall not be
charged to either of the following:
   (a) A customer participating in the California Special
Supplemental Food Program for Women, Infants, and Children (Article 2
(commencing with Section 123275) of Chapter 1 of Part 2 of Division
106 of the Health and Safety Code).
   (b) A customer participating in the State Department of Social
Services Food Stamp Program.
   42284.  A store that collects the Bag Pollution Cleanup Fee
pursuant to Section 42281 shall calculate the amount of money
collected and, after deducting the amount specified in subdivision
(c) of Section 42281, shall, in accordance with Section 42288, remit
the remainder to the state board for deposit into the fund.
   42284.5.  A store charging a fee pursuant to Section 42281 shall
use the amount of the fee retained pursuant to subdivision (c) of
Section 42281 for all of the following:
   (a) Reimbursement of the store's costs associated with the
collection and remittance of the fee pursuant to Sections 42281 and
42284.
   (b) The development of in-store educational materials for
distribution to customers encouraging the use of reusable bags.
   (c) The development and implementation of an educational campaign
encouraging the use of reusable bags, including, but not limited to,
public service announcements.
   (d) Reimbursement of the store's costs associated with providing
reusable bags to customers participating in programs described in
 subdivisions (a) and (b) of  Section 42283.
   (e) Reimbursement of the store's costs associated with providing
reusable bags as donations to community organizations, nonprofit
organizations, and other similar entities.
   (f) Reimbursement of the store's costs associated with the
purchase of plastic, compostable, and paper carryout bags.
   42285.  (a) The Bag Pollution Fund is hereby established in the
State Treasury. All fees collected by the state board pursuant to
this chapter shall be deposited in the fund.
   (b) The moneys in the fund shall be expended, upon appropriation
by the Legislature in the annual Budget Act, in the manner and in the
order of priority as follows:
   (1) (A) By the board, 80 percent of the moneys in the fund, for
grants to cities and counties, on a per capita basis, for the
following purposes:
   (i) Establishing and maintaining local programs to control
pollution from single-use carryout bags, including those programs in
partnership with nonprofit community-based organizations, for
purposes of litter cleanup activities.
   (ii) Source reduction efforts to help implement zero waste
programs, litter prevention programs, and litter prevention education
and outreach programs related to single-use carryout bags.
   (iii) Mitigation projects relating to stormwater pollution caused
by  single use carryout bag   single-use
carryout bags  , including devices to prevent single-use
carryout bag litter from entering storm drain systems.
   (iv) Reusable bag giveaway programs, including those targeting
low-income residents.
   (B) Except as provided in subparagraph (C), the amount for which a
city or a county is eligible shall be based on the total population
of the incorporated area of the city or the total unincorporated area
of the county, whichever is applicable.
   (C) If a city or county prohibits the use of all single-use
carryout bags, including plastic, paper, and compostable carryout
bags, and no fees are collected pursuant to Section 42281 within that
jurisdiction, that city or county shall not be eligible for grant
funds pursuant to this paragraph.
   (2) No more than 3 percent of the funds shall be expended by the
state board, to reimburse the state board's costs of administering
Section 42288.
   (3) No more than 3 percent shall be expended by the board for
purposes of administering the requirements of this chapter.
   (4) The remainder of the moneys in the funds shall be allocated on
an equal basis to the board, the State Water Resources Control
Board, the Department of Toxic Substances Control, and the Ocean
Protection Council for the purposes of Sections 42287 and 42287.1.
   (c) The revenue from the Bag Pollution Cleanup Fund for the
purposes of this section shall not be expended on activities
unrelated to the prevention or reduction of single-use  carryout
 bag pollution pursuant to Sinclair Paint Co. v. State Bd. of
Equalization (1997) 15 Cal.4th 866.
   42286.  (a) The Legislature finds and declares that imposing a
single-use carryout bag fee upon a store is a matter of statewide
interest and concern.
   (b) Unless expressly authorized by this chapter, a city, county,
or other public agency shall not adopt, implement, or enforce an
ordinance, resolution, regulation, or rule to impose a single-use
carryout bag fee upon a store that is subject to this chapter.
   (c) This chapter does not preempt a city or county from
prohibiting the use, import, sale, or distribution of any plastic,
paper, or compostable carryout bag.

      Article 3.  Program and Report


   42287.  The board shall, in consultation with the Ocean Protection
Council, the State Water Resources Control Board, and the Department
of Toxic Substances Control, develop and implement programs to
encourage and support pollution prevention, abatement, cleanup,
enforcement, green chemistry and product design, water quality
protection and cleanup, and environmental and public education and
outreach related to the use of single-use carryout bags.
   42287.1.  On or before January 1, 2013, the board shall submit a
report to the Legislature regarding the effectiveness of this
 chapter, the   chapter. The  report shall
also include recommendations to further encourage the use of reusable
bags by consumers and retailers and to reduce the consumption of
single-use  carryout  bags, including at a minimum, both of
the following:
   (a) Expanding the definition of stores that are subject to this
chapter to all other stores and retail establishments distributing
single-use bags, including the retail establishments specified in
subdivision (b) of Section 42251.
   (b) Increasing the fee imposed pursuant to Section 42281,
including necessary adjustments for inflation, to increase the
effectiveness of this chapter.

      Article 4.  Administration and Enforcement


   42288.  (a) The state board shall administer and collect the Bag
Pollution Cleanup Fee pursuant to the Fee Collection Procedures Law
(Part 30 (commencing with Section 55001) of Division 2 of the Revenue
and Taxation Code).
   (b) The state board may adopt rules and regulations to carry out
this article, including, but not limited to, provisions governing
collections, reporting, refunds, and appeals.
   (c) The Bag Pollution Cleanup Fee shall be due and payable
quarterly on or before the 25th day of the month following each
calendar quarter. Payments shall be accompanied by a form, as
prescribed by the state board, including, but not limited to,
electronic media.
   (d) The state board may require the payment of the fee for other
than quarterly periods.
   42288.5.  Except as otherwise provided by this chapter, the board
shall administer and enforce this chapter.