BILL ANALYSIS SB 1523 Page 1 SENATE THIRD READING SB 1523 (Sher) As Amended August 29, 2002 Majority vote SENATE VOTE :21-12 NATURAL RESOURCES 9-0 APPROPRIATIONS 15-7 ----------------------------------------------------------------- |Ayes:|Wayne, Dickerson, |Ayes:|Steinberg, Alquist, | | |Jackson, Keeley, Koretz, | |Aroner, Corbett, Correa, | | |Lowenthal, Migden, | |Diaz, Firebaugh, | | |Pavley, Wyman | |Goldberg, Negrete McLeod, | | | | |Papan, Pavley, Simitian, | | | | |Washington, Wiggins, | | | | |Wright | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Bates, Ashburn, Daucher, | | | | |Maldonado, | | | | |Robert Pacheco, Runner, | | | | |Zettel | ----------------------------------------------------------------- SUMMARY : Requires every retailer or manufacturer that sells Cathode Ray Tube devices (CRT devices) collect a Cathode Ray Tube Recycling Fee (fee) on each CRT device. The bill also establishes the Cathode Ray Tube Recycling Account (Account) for the fees to be deposited, grant programs to expend the funds from the Account and establishes the CRT Recycling Advisory Committee. Specifically, this bill : 1)Requires on and after January 1, 2004, every retailer or manufacturer that sells CRT devices in the state to collect at the point of sale, a fee of $10 on each CRT device. 2)Requires the California Integrated Waste Management Board (CIWMB) to establish procedures for the imposition and collection of the fee on CRT devices sold by retailers or manufacturers directly to consumers. 3)Provides, to the extent necessary, that CIWMB collect information from the manufacturers of CRT devices on their sales of CRT devices, including any manufacturer's devices SB 1523 Page 2 sold by retailers, and the fees paid on those devices. 4)Requires the proposed state law provisions to become inoperative should a specific federal law establish a CRT collection or recycling program, or a final court judgment is issued declaring collection of fees from out-of-state manufacturers or retailers may not be required. 5)Establishes the CRT Recycling Advisory Committee consisting of various public, nonprofit, and private sector parties involved in the manufacture, refurbishment, recycling, and disposal of CRT's for the purposes of advising CIWMB on matters pertaining to the expenditures of the account, the level of the recycling fee, and the removal of impediments to recovery of CRT's for recycling or reuse. 6)Establishes the Account, into which the fee is transmitted on a quarterly basis, which shall be available to CIWMB upon appropriation by the Legislature for the purposes of: a) Providing grants to local governments to establish and maintain local programs that provide for the convenient and cost-effective collection and recycling of cathode ray tubes and CRT devices; b) Providing recycling incentive payments to CRT material handlers that collect and process cathode ray tubes and CRT devices; c) Providing grants to nonprofit organizations that accept and recycle cathode ray tubes and CRT devices for reuse; d) Providing grants to manufacturers of CRT devices to encourage consumers to return the devices for processing, recycling, or reuse and to assist manufacturers in collecting, processing, recycling, or reusing CRT devices; and, e) Establishing a public information program to educate the public on the hazards of improper CRT device storage and disposal and on the opportunities to recycle CRT devices and provide funding to DTSC, upon appropriation, to implement provisions relating to CRT devices. 1)Declares that on and after January 1, 2004, it is unlawful for SB 1523 Page 3 a manufacturer or retailer to sell a CRT device directly to a consumer in the state unless the fee has been paid on the CRT device and a label issued by CIWMB for the CRT device has been attached to that CRT device. FISCAL EFFECT : According to the Senate Appropriations Committee, this bill would potentially generate about $240 million annually and cost potentially $1.1 million in 2002-03 and $9.2 million in 2003-04. COMMENTS : According to information from CIWMB and DTSC Web sites: "E-waste is a popular, informal name for electronic products nearing the end of their 'useful life.' Computers, televisions, VCRs, stereos, copiers, and fax machines are common electronic products. Many of these products can be reused, refurbished, or recycled. Unfortunately, electronic discards is one of the fastest growing segments of our nation's waste stream. In addition, some researchers estimate that nearly 75 percent of old electronics are in storage, in part because of the uncertainty over how to manage the materials. Combine this with increasing advances in technology and new products headed towards the market and it is no wonder that E-waste is a popular topic." The term "E-waste" is loosely applied to consumer and business electronic equipment that is near or at the end of its useful life. There is no clear definition for E-waste; for instance, whether or not items like microwave ovens and other similar "appliances" should be grouped into the category have not yet been determined. Certain components of some electronic products contain materials that render them hazardous, depending on their condition and density. CRTs convert an electronic signal into a visual image. A typical CRT contains between two and five pounds of lead. Lead is a toxic substance, which may cause lead poisoning and can be especially harmful to young children. If products containing lead are disposed of to the trash, the lead can potentially contaminate the soil and our water supplies. SB 1523 Page 4 Analysis Prepared by : Scott H. Valor / NAT. RES. / (916) 319-2092 FN: 0007738