Prop 65 redirects the bag fees to an environmental fund. Under SB270 and local laws, grocers themselves are allowed to keep the proceeds of the bag fees to cover the cost of providing those bags, as well as to educate consumers about the benefits of using recyclable bags. Prop 65 would instead require money charged under a statewide bag law to go to the Environmental Protection and Enhancement Fund
, whose money would go to environmental protection and cleanup efforts, and would be managed by the Wildlife Conservation Fund.
Notably, the American Progressive Bag Alliance, an industry group representing plastic bag manufacturers, put up both Prop 67 and 65. (Hint: they don't want a plastic bag ban.) Some argue that the intention is to confuse voters.
The California Grocers Association, on the other hand, supports enacting a plastic bag ban,[..]
but do not support Prop 65; their support for the ban diminishes if they can't keep the proceeds from the bag fee.