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