STATE SENATOR DROPS PROPOSAL FOR DIAPER TAX.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - State Senate Majority Leader Don Perata has thrown out plans to impose a quarter-cent tax on disposable diapers to fund recycling efforts throughout the state modeled after Santa Clarita's pilot program, first in the nation.

Perata told the Oakland Tribune that he dumped the bill after realizing the new tax would be inappropriate in light of the state's massive budget deficit, estimated at more than $38 billion.

``I'm not going to ask somebody to vote on that when we're trying to protect health care,'' the Democratic lawmaker from Oakland said. ``Frankly, I felt a little sheepish having introduced it, then realizing all these other things we're going to have to increase fees on. In the overall scheme of things, it's really insignificant.''

Disposable-diaper manufacturers and taxpayer groups campaigned vehemently against the bill, saying it would unfairly tax Californians to pay for an unproven system that has shown mixed results during its first six months of operation in Santa Clarita.

The bill was also criticized as a give-away to Knowaste, the firm spearheading diaper-recycling efforts in Santa Clarita.

Knowaste has spent more than $30,000 lobbying for Perata's bill this year and contributed $2,500 to the Oakland legislator's campaign committee, according to the Oakland Tribune.

Aides for Perata said the legislation would have benefited a number of companies, not just Knowaste.

Several members of the Santa Clarita City Council, including Mayor Cameron Smyth, have said they opposed the bill and resented Knowaste for dragging the overwhelmingly Republican city into a tax dispute in Sacramento.

Earlier this month the council, saying more information was needed before success or failure could be determined, extended the pilot program for three additional months.

Although participation in the test run has been high and the process smooth, the number of dirty diapers collected has failed to meet expectations, and the cost of the program has yet to be determined, city officials said.

Critics contend that diaper recycling is not cost-effective and will not result in a meaningful reduction in the amount of waste buried in landfills.

Earlier this week, the six firms vying for Santa Clarita's exclusive trash franchise agreement said it would cost residents from 60 cents to $6.25 a month for the program throughout Santa Clarita.

Trash-disposal officials said that the program may still need a subsidy from state or local government.