Existing law, inoperative due to a pending referendum petition, would, as of July 1, 2015, prohibit stores that have a specified amount of sales in dollars or retail floor space from providing a single-use carryout bag to a customer and would prohibit those stores from selling or distributing a reusable grocery bag or a recycled paper bag at the point of sale unless the store makes that bag available for purchase for not less than $0.10. This same law would, on and after July 1, 2016, impose these prohibitions and requirements on convenience food stores, foodmarts, and other specified entities. This inoperative law would require these stores to provide to certain customers a reusable grocery bag or recycled paper bag at no cost at the point of sale.

Subject to the referendum petition, this bill would expand the group of customers who would be provided a reusable grocery bag or a recycled paper bag at no cost at the point of sale to include a customer who is 65 years of age or older and a customer who provides proof of current attendance at a California college or university.

Date of Hearing: May 11, 2015

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 1136

Author:(Steinorth) – As Introduced Ver:February 27, 2015

SUBJECT: Reusable grocery bag and recycled paper bag: fee: exemptions

SUMMARY: Requires stores subject to California's single-use plastic bag ban to give customers over the age of 65 and students at a California college or university recycled paper or reusable bags at no charge.

EXISTING LAW: Establishes various requirements relating to the distribution of carryout bags, but is currently inoperative pending the outcome of the referendum to repeal the state's ban on single-use plastic bags.

1. Establishes various definitions relating to carryout bags, including:
   
   
   

   1. “Recycled paper bag” as a paper carryout bag provided by a store to a customer at the point of sale that contains a minimum of 40% postconsumer recycled materials. For a bag with the capacity to hold eight pounds or less, the bag must contain at least 20% postconsumer recycled materials. A recycled paper bag must be accepted for recycling in a majority of households in curbside recycling programs in the state, as well as have specified information printed on the bag.
      
      
      

   2. “Reusable grocery bag” as a bag that can be used a minimum of 125 times, as specified; can be cleaned; has specified information visible on the bag; cannot contain lead, cadmium, or any other toxic material that may pose a threat to public health; and, must be consistent with federal regulations related to recyclable claims if the bag producer claims the bag is recyclable
      
      
      

   3. “Single-use carryout bag” as a bag made of plastic, paper, or other material that is provided by a store to a customer at the point of sale. Exempts from this definition specified bags, including a bag provided by a pharmacy for a prescription purchase, a non-handled bag used to protect an item from damaging or contaminating other items when placed in a recycled paper bag or reusable grocery bag, and a dry-cleaning or garment bag.
      
      
      

   4. “Store” as a full-line self-service retail store with gross annual sales of at least $2 million that sells a line of dry grocery, canned goods, or nonfood items and some perishables (a typical grocery store); has at least 10,000 square feet of retail space and a pharmacy; or, a convenience food store or foodmart. Includes in the definition of store any other retail establishment that voluntarily agrees to comply with the requirements of this bill.
      
      
      

2. Prohibits stores from making single-use carryout bags available at the point of sale on the following timeline:
   
   
   

   1. On and after January 1, 2015, at either a grocery store or retailer with at least 10,000 square feet of retail space and a pharmacy.
      
      
      

   2. On and after July 1, 2016, at a convenience food store and foodmart.
      
      
      

3. Authorizes a store to make available a reusable grocery bag or recycled paper bag at the point of sale. Requires that these bags may not be sold to a consumer for less than $0.10.
   
   
   

4. Requires that all monies collected by stores pursuant to this law be retained at the store and be used for costs associated with complying with the law; actual costs of providing recycled paper bags and reusable grocery bags; and costs associated with a store’s educational materials or educational campaign encouraging the use of reusable bags.
   
   
   

5. Requires a store to provide a reusable bag or recycled paper bag at no charge to any customer using California Special Supplemental Food Program for Women, Infants and Children benefits, CalFresh benefits [federally known as Supplemental Nutrition Assistance Program (SNAP) benefits], California Food Assistance Program benefits, or cash aid benefits.
   
   
   

6. Preempts local ordinances adopted on or after September 1, 2014, relating to reusable grocery bags, single-use carryout bags, or recycled paper bags.

THIS BILL: Expands the scope of individuals to whom stores are required to provide recycled paper and reusable bags at no charge to include:

1. A customer who is 65 years of age or older; and,

2. A customer who provides proof of current attendance at a California college or university.

FISCAL EFFECT: Non-fiscal

COMMENTS:

1. This bill. This bill requires stores to give free reusable or paper bags to anyone over the age of 65 or who attends a California college or university. According to the author:

AB 1136 attempts to solve the problem of placing a punitive, regressive paper bag fee upon the financially challenged populations of seniors and students. While existing law exempts WIC customers and those using electronic benefit transfer cards from the paper bag fee, other financially challenged groups are not included in this exemption as they ought to be.

2. Background on plastic. Plastic bags and plastic film together represent just over two percent of the waste stream, and every year California taxpayers spend $25 million disposing of the 14 billion plastic bags used annually. Although plastic represents a relatively small fraction of the overall waste stream in California by weight, plastic waste is the predominate form of marine debris. Plastics are estimated to comprise 60-80 percent of all marine debris and 90 percent of all floating debris. According to the California Coastal Commission, the primary source of marine debris is urban runoff, of which lightweight plastic bags and plastic film are particularly susceptible. Unlike most forms of plastic, lightweight single-use bags pose a litter threat even when properly disposed of by consumers; they are prone to blowing off the working surface of landfills and off of trucks during transport.
   
   Most plastic marine debris exists as small plastic particles due to excessive UV radiation exposure and subsequent photo-degradation. These plastic pieces are confused with small fish, plankton, or krill and ingested by aquatic organisms. Over 600 marine animal species have been negatively affected by ingesting plastic worldwide. In addition, hydrophobic chemicals present in the ocean in trace amounts (e.g., from contaminated runoff and oil and chemical spills) have an affinity for, and can bind to, plastic particles and may also enter and accumulate in the food chain through the same mechanism.
   
   
   

3. Local action. Over 100 cities and counties throughout California have adopted ordinances banning plastic bags, including San Francisco, San Jose, Long Beach, Los Angeles County, Santa Clara County, and Alameda County. Many of these local governments also require stores to charge a fee for a paper carryout bag, and a few have banned both single-use plastic and paper carryout bags.
   
   
   

4. Why ten cents? Under California's plastic bag law, stores can only distribute recycled paper bags or reusable bags at the point of sale. The state law mirrors the majority of local ordinances, which based the amount on the average cost of a paper bag. The primary reason for the minimum charge is to encourage consumers to use reusable bags rather than simply switching to paper bags. In 2007, a peer-reviewed assessment, the Life Cycle Assessment for Three Types of Grocery Bags – Recyclable Plastic; Compostable, Biodegradable Plastic; and, Recycled, Recyclable Paper, was prepared for the Progressive Bag Alliance to compare the environmental impacts of different types of single-use bags. The assessment identified environmental impacts for all types of single-use bags. While paper bags do not have the marine impacts of plastic bags, the production of recycled paper bags does have more significant impacts associated with energy, water, and greenhouse gas emissions.
   
   Without the charge, paper bag use appears to increase dramatically. For example, in Portland, Oregon, which does not charge for paper bags, paper bag use went up 491% one year after a ban on plastic bags. In comparison, the use of paper bags decreased nearly 24% in San Jose, which adopted the charge on paper bags.
   
   When the charge is collected, it is retained by the store and can be used by the store to cover the costs of providing recycled paper bags and reusable grocery bags and costs associated with a store’s educational materials or educational campaign encouraging the use of reusable bags. In Los Angeles County, for example, stores have reported that approximately half of the paper bags they distribute are to consumers exempt from the charge. The funds collected by the charge are used to cover the costs of providing these bags.
   
   Any consumer can avoid the charge by bringing their own bags.
   
   
   

5. Seniors and college students. California has one of the highest poverty rates amongst people over the age of 65 in the nation. Nearly one in 10 Californians over age 65 now lives in poverty. One in 20 has poor diet quality due, in part, to limited funds to buy food. Over 20% of low-income Californians over the age of 65 could not afford to put food on the table or had to forego other basic needs in order to eat during 2009.
   
   According to information provided by the author, college students also endure some of the highest rates of poverty with estimates placing at least 47% of California college students living below the official poverty line. Recent data estimates that about 2.4 million people are currently enrolled in one of California’s three statewide higher educational systems; California Community Colleges, California State Universities, or the University of California.
   
   
   

6. The referendum. The Referendum to Overturn Ban on Single-Use Plastic Bags was certified by the California Secretary of State on February 24, 2015 after receiving a total of 809,810 signatures, 598,684 of which were projected to be valid. The measure will be on the November 8, 2016 ballot. The American Progressive Bag Alliance is the main proponent for the repeal; other supporters include the City of Laguna Niguel, 7 other organizations, and 11 businesses. The campaign to support SB 270 and oppose the referendum is led by California vs. Big Plastic, and includes 7 state officials, 21 municipalities, over 60 organizations, and 6 businesses. As of February 2, 2015, referendum proponents had raised over $6.6 million, nearly all of that from the plastic industry. SB 270 supporters have raised just under $100,000 from environmental organizations and reusable bag manufacturers.
   
   A poll conducted by the University of Southern California and the Los Angeles Times in November 2014 found that 59% of California voters would vote in support of the ban; 34% indicated that they would vote for repeal.
   
   
   

7. Related legislation.
   
   
   

   1. AB 190 (Harper) repeals California's plastic bag law. This bill was held in this committee on April 13^th with a vote of 2-7.
      
      
      

   2. AB 191 (Haper) repeals the 10 cent charge on recycled paper and reusable bags. This bill was held in this committee on April 13^th with a vote of 3-6.
      
      
      

8. Double referral. This bill passed the Assembly Aging and Long-Term Care Committee on May 5^th with a vote of 6-1.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

AZUL

Chico Bag Company

Clean Water Action

Environmental Action Committee of West Marin

Environment California

Global Green USA

Green Sangha

Heal the Bay
Los Angeles City Council Member Paul Koretz

Natural Resources Defense Council

Plastic Bag Laws.org

Plastic Pollution Coalition

Seventh Generation Advisors

Surfrider Foundation

Team Marin

The Story of Stuff Project

The 5 Gyres Institute

Wildcoast

2 individuals

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