BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1523| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 SB 1523 Page 2 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 SB 1523 Page 3 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: SB 1523 Page 4 "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 SB 1523 Page 5 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 SB 1523 Page 6 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 **** END ****