BILL NUMBER: SB 531INTRODUCED BILL TEXT INTRODUCED BY Senator DeSaulnier FEBRUARY 27, 2009 An act to add and repeal Chapter 5.2 (commencing with Section 42260) of Part 3 of Division 30 of the Public Resources Code, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST SB 531, as introduced, DeSaulnier. 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. Under existing law, the California Integrated Waste Management Board (board) administers laws related to waste management. This bill would establish the Single-use Carryout Bag Responsibility Act and would require, on and after July 1, 2011, the suppliers, as defined, of plastic or paper single-use carryout bags to remit a Single-use Carryout Bag Responsibility Fee of $0.001, to the State Board of Equalization, for each paper or plastic single-use carryout bag supplied directly to a store. The State Board of Equalization would be required to deposit the fee into the Single-use Carryout Bag Responsibility Fund that would be established in the State Treasury. The bill would require the board to administer and enforce the provisions of the act, excluding the administration and collection of the fees which would be done by the State Board of Equalization. On or before January 1, 2013, the board would be required to submit a report to the Legislature evaluating the effectiveness of this chapter. The bill would require the moneys in the fund to be expended, upon appropriation, by the Legislature for the Single-Use Carryout Bag Litter Abatement Program under which grant awards would be allocated to specified entities for the purpose of abating and cleaning up single-use carryout bags that become litter and encouraging the proper disposal and collection of single-use carryout bags, and by the board for implementation of the program and for administrative costs not to exceed 5% of the funds made available annually for the program or an amount otherwise specified in the annual Budget Act. The act would be repealed as of January 1, 2018. The bill would authorize the board to develop a voluntary best practices program. 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) Many products, including single-use carryout bags, become litter. (b) Requiring manufacturers or suppliers of those products to pay an appropriate share of litter abatement and cleanup costs is appropriate. (c) Charging commercial suppliers of single-use carryout bags to stores a fee of $0.001 per bag would fairly compensate taxpayers for abatement and cleanup of single-use carryout bag litter based on litter characterization studies. (d) Plastic bag manufacturers are encouraged to incorporate recycled content in plastic bags to the extent that it is technologically feasible and cost efficient. (e) The imposition of the fee pursuant to Section 42261 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 littering 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 abate and clean up single-use carryout bag litter. (f) (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 fee that is imposed pursuant to Section 42261 of the Public Resources Code be consistent with Sinclair Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th 866. SEC. 2. Chapter 5.2 (commencing with Section 42260) is added to Part 3 of Division 30 of the Public Resources Code, to read: CHAPTER 5.2. SINGLE-USE CARRYOUT BAG RESPONSIBILITY ACT Article 1. Definitions 42260. For purposes of this chapter, the following definitions shall apply: (a) "Board" means the California Integrated Waste Management Board. (b) "Carryout bag" means a single-use carryout bag that is provided by a store to a customer at the point of sale and that is not a reusable bag as defined in subdivision (d) of Section 42250. (c) "Distributor" means a person other than a manufacturer who distributes or supplies single-use carryout bags to one or more stores in this state. (d) "Fund" means the Single-use Carryout Bag Responsibility Fund, established pursuant to Section 42262. (e) "Manufacturer" means a person who manufactures single-use carryout bags that are sold to or used by one or more stores in this state. (f) "Reusable bag" means the same as subdivision (b) of Section 42250. (g) "State board" means the State Board of Equalization. (h) "Store" means a retail establishment that provides single-use carryout bags to its customers as a result of the sale of a product and that meets either of the following requirements: (1) Meets the definition of a "supermarket" as found 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. (i) "Supplier" means the manufacturer, distributor, or other person that sells or supplies single-use carryout bags directly to a store. Article 2. Single-use Carryout Bag Responsibility Fee 42261. (a) On and after July 1, 2011, the supplier of carryout bags shall remit a Single-use Carryout Bag Responsibility Fee, to the State Board of Equalization for deposit into the fund, for each carryout bag that it supplies directly to a store. (b) The amount of the fee shall be one-tenth of one cent ($0.001) per carryout bag. (c) The supplier shall remit the fee directly to the state board. (d) Carryout bags shall not be delivered to or accepted by a store unless the supplier has provided written certification to the store operator that the supplier has paid, or agrees to pay, the fee to the state board for those bags. Store operators shall not be liable for paying the fee if they obtain the certification. 42262. (a) The Single-use Carryout Bag Responsibility 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) Moneys in the fund shall be expended, upon appropriation by the Legislature, for the purposes of Article 3 and for the administrative costs incurred by the board in administering the program. Those administrative costs shall not exceed 5 percent of the funds made available annually for the program or an amount otherwise specified in the annual Budget Act. Article 3. Litter Abatement Program 42263. (a) A Single-Use Carryout Bag Litter Abatement Program is hereby established and administered by the board for the purpose of allocating grant awards for the purpose of abating and cleaning up carryout bags that become litter and encouraging the proper disposal and collection of carryout bags. (b) Moneys in the fund shall be available for all of the following purposes: (1) Litter abatement programs designed to lead to reduced release of carryout bags into the environment. (2) Litter cleanup programs designed to clean up carryout bag litter. (3) Investments in equipment, technologies, and practices designed to lead to enhanced carryout bag containment at landfills and other solid waste disposal facilities, including garbage and recycling collection vehicles. (4) Mitigation projects relating to stormwater pollution caused by carryout bag litter, including devices to prevent carryout bag litter from entering storm drain systems. (5) Other collection and abatement programs further identified by the board that achieve the intent of this chapter. (6) Public education regarding the use of the bins required by subdivision (b) of Section 42252. (c) Entities eligible for this funding shall include cities, counties, special districts, nonprofit organizations, the California Conservation Corps, and private entities. (d) Communities with demonstrated high levels of carryout bag litter may receive additional funding consideration. (e) Minimum allocations of two hundred fifty thousand dollars ($250,000) shall be available to all cities with populations of greater than 250,000 and counties with populations of greater than one million. The balance of the funds shall be available on a competitive basis to all eligible entities. 42264. The program established by this article shall be implemented by the board with moneys, appropriated by the Legislature, from the fund or with other funds made available specifically for this program. Article 4. Waste Reduction 42265. The board is authorized to develop a voluntary best practices program that may include any of the following: (a) Encouraging stores not to provide carryout bags to customers for one item unless appropriate under the circumstances. (b) Encouraging stores to ask customers purchasing two items whether they need a carryout bag. (c) Encouraging stores to refrain from double bagging. (d) Encouraging stores to attempt to fill the maximum item count or weight per carryout bag. (e) Encouraging stores to ask cashiers or baggers to advise customers to be sure to return plastic carryout bags and other recyclable plastic bags to the store for recycling and point out the location of recycling bins. (f) Encouraging stores to ensure that the bins required by subdivision (b) of Section 42252 are highly visible and clearly marked with a single logo approved by the board for all stores in this state. (g) Encouraging stores to allocate space on bags for prominent printed messages to educate, request, and encourage consumers to use plastic bag recycling bins in addition to the requirement in subdivision (a) of Section 42252. (h) Creating a dedicated Internet Web site with an online training program including a video for store personnel to educate them on implementing the voluntary best practices. (i) Creating a dedicated Internet Web site for the public to learn about the voluntary best practices program. Article 5. Waste Diversion 42266. (a) If a store operator is unable to sell or transfer the contents of the bin that complies with subdivision (b) of Section 42252 to a recycler, the supplier of plastic bags to the store shall make arrangements for recycling or take the contents. (b) The supplier shall not dispose of the plastic film contents of those bins in a solid waste stream or in a landfill. Article 6. Heavy Metals Prohibition 42267. A reusable bag shall not be sold or provided to consumers in this state if it contains lead or any other heavy metals. Article 7. Administration and Enforcement 42268. (a) The state board shall administer and collect the Single-use Carryout Bag Responsibility 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 chapter, including, but not limited to, provisions governing supplier certification forms, collections, enforcement, reporting, refunds, and appeals. 42269. Except as otherwise provided by this chapter, the board shall administer and enforce this chapter. The board may adopt such regulations as it determines to be necessary to implement this chapter. 42269.1. On or before January 1, 2013, the board shall submit a report to the Legislature evaluating the effectiveness of this chapter. Article 8. Preemption 42269.3. (a) The Legislature finds and declares that imposing a single-use carryout bag responsibility fee upon suppliers is a matter of statewide interest and concern. (b) A city, county, or other public agency shall not adopt or enforce an ordinance, resolution, regulation, or rule prohibiting the use, import, sale, or distribution of carryout bags or imposing a fee on carryout bags or requiring any specifications for carryout bags unless that ordinance, resolution, regulation, or rule was adopted prior to January 1, 2009. (c) A city, county, or public agency that does not repeal an ordinance, resolution, regulation, or rule prohibiting the use, import, sale, or distribution of carryout bags or imposing a fee on carryout bags, or requiring any specifications for carryout bags that was adopted prior to January 1, 2009 shall not be eligible for funds pursuant to paragraph (3) of subdivision (b) of Section 42263 as long as it remains in effect. Article 9. Repeal 42269.5. This chapter shall remain in effect only until January 1, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date.