BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1523|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1523
          Author:   Sher (D)
          Amended:  8/29/02
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  6-1, 4/22/02
          AYES:  Sher, McPherson, Chesbro, Figueroa, Kuehl, O'Connell
          NOES:  McClintock

           SENATE APPROPRIATIONS COMMITTEE  :  9-4, 5/23/02
          AYES:  Alpert, Bowen, Burton, Escutia, Karnette, McPherson,  
            Murray, Perata, Speier
          NOES:  Battin, Johannessen, Johnson, Poochigian

           SENATE FLOOR  :  21-12, 5/29/02
          AYES:  Alarcon, Alpert, Bowen, Burton, Chesbro, Costa,  
            Dunn, Figueroa, Karnette, Kuehl, Machado, McPherson,  
            Murray, O'Connell, Ortiz, Peace, Perata, Romero, Scott,  
            Sher, Vasconcellos
          NOES:  Ackerman, Battin, Brulte, Haynes, Johannessen,  
            Johnson, Knight, Margett, McClintock, Monteith, Oller,  
            Poochigian

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :     Solid waste:  cathode ray tubes and CRT  
                    devices:  recycling 
                       and refurbishment

           SOURCE  :     Author


                                                           CONTINUED





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           DIGEST  :    This bill 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.

           Assembly Amendments  (1) set the recycling fee on cathode  
          ray devices (CRT) at $10; (2) delete provision requiring  
          the board to design and issue a label for the purpose of  
          designating CRT devices for which fees have been paid; and  
          (3) require a report to the Legislature on the  
          implementation of the bill's provisions.

           ANALYSIS  :    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 time of sale, a fee of $10 on each CRT  
             device.

          2. Requires the 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 the CIWMB  
             collect information from the manufacturers of CRT  
             devices on their sales of CRT devices, including any  
             manufacturer's devices 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  







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             purposes of advising the CIWMB on matters pertaining to  
             the expenditures of the account, 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 the 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.  

             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.

             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 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.

           Comments  :

          According to information from the CIWMB and DTSC websites:  







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          "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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          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.

           SUPPORT  :   (Verified  8/31/02) 

          Alameda County Waste Management Authority 
          Allied Waste, Inc. 
          Apple Computer
          AuctionBDI 







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          California Chapters Waste Management, Inc. 
          California Earth Corps 
          California League of Conservation Voters 
          California League of Environmental Voters 
          California Resource Recovery Association 
          California Refuse Removal Council 
          California State Association of Counties 
          Californians Against Waste 
          Clean Water Action 
          City and County of San Francisco 
          City of Berkeley 
          City of Costa Mesa  
          City of Cypress 
          City of Daly 
          City of Davis 
          City of Huntington Beach 
          City of Lakewood 
          City of Lompoc 
          City of Milpitas 
          City of Modesto 
          City of Morro Bay 
          City of Oakland 
          City of Santa Ana 
          City of Santa Barbara 
          City of Santa Cruz 
          City of Thousand Oaks 
          City of Ventura 
          Council of California Goodwill Industries 
          County of Butte 
          County of Contra Costa 
          County of Humboldt
          County of Marin 
          County of Riverside 
          County of Santa Clara 
          County of Santa Cruz 
          County of Yolo 
          County Sanitation Districts of Los Angeles County 
          East Bay Municipal District 
          Fox Electronics 
          HMR Group USA 
          HMR Group San Francisco 
          League of California Cities 
          North American Logistics 
          Northern California Recyclers Association







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          Norcal Waste Systems, Inc. 
          Planning and Conservation League 
          Republic Services, Inc. 
          RMD Technologies, Inc. 
          San Luis Obispo County Integrated Waste Management  
          Authority 
          Santa Clara County Board of Supervisors 
          Sierra Club 
          Silicon Valley Toxics Coalition 
          Solid Waste Association of North America 
          Waste Management, Inc. 

           OPPOSITION  :    (Verified  8/31/02)

          American Electronics Association 
          California Alliance for Consumer Protection 
          California Chamber of Commerce 
          California Manufacturers and Technology Association 
          Cal-Tax 
          Cannon U.S.A., Inc. 
          Computing Technology Industry Association 
          Electronics Industries Alliance
          Fry's Electronics 
          Gateway Computers Fry's Electronics 
          Hewlett Packard Company 
          Information Technology Association of America 
          JVC Americas Corporation 
          Panasonic Electric Corporation of America 
          Radio Shack Corporation 
          Samsung 
          San Diego Regional Chamber of Commerce 
          Sharp Electronics Corporation 

          CP:jk  8/31/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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