BILL ANALYSIS                                                                                                                                                                                                    


          |SENATE RULES COMMITTEE            |                  AB 2901|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 445-6614         Fax: (916) |                         |
          |327-4478                          |                         |
                                 THIRD READING

          Bill No:  AB 2901
          Author:   Pavley (D), et al
          Amended:  8/19/04 in Senate
          Vote:     21

           SENATE ENV. QUALITY COMMITTEE  :  5-1, 6/28/04
          AYES:  Sher, Chesbro, Figueroa, Kuehl, Romero
          NOES:  McPherson
          NO VOTE RECORDED:  Morrow

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  41-32, 5/26/04 - See last page for vote

           SUBJECT  :    Hazardous waste:  cellular phones:  recycling

           SOURCE  :     Californians Against Waste

           DIGEST  :    This bill enacts the Cell Phone Recycling Act of  
          2004 and requires all retailers of cellular telephones to  
          have in place, by July 1, 2006, a system for the accepting  
          and collection of used cell phones for reuse, recycling or  
          proper disposal.

           Senate Floor Amendments  of 8/19/04:

          1.  Defines "used cell phones" .  In place of defining used  
            cell phones as hazardous waste, the bill now refers to  
            such phones when collected by the retailers in functional  
            terms (i.e., used cell phones for reuse, recycling, or  
            proper disposal).  As noted in the penultimate provision  


                                                               AB 2901

            of the bill, the revised definition does nothing to alter  
            any obligation imposed on a person regarding the  
            management of cell phones pursuant to the state's  
            hazardous waste laws.

          2.  Consumer Information  .  In place of the current bill  
            language that refers to consumer information based on  
            "point-of-purchase signage or display," the amendments  
            now substitute the following:  "Signage that is  
            prominently displayed and easily visible to the  

          3.  Exception for the Providing of Consumer Information  .  The  
            bill currently requires every retailer of a cell phone to  
            provide consumer information regarding recycling  
            opportunities.  The amendment will not apply to a  
            retailer that only sells prepaid cell phones and does not  
            provide a contract for cell phone service.

           ANALYSIS  :    

           Existing Law

           1.Requires the United States Environmental Protection  
            Agency (U.S. EPA) to establish standards and adopt  
            regulations for the management and disposal of hazardous  
            materials and waste in accordance with the federal  
            Resource Conservation and Recover Act (RCRA).

          2.Authorizes the State Department of Toxic Substances  
            Control (DTSC) to regulate hazardous materials and wastes  
            to ensure that the state is delegated authority in  
            accordance with RCRA.

          3.In accordance with the California Integrated Waste  
            Management Act:

             A.    Requires local agencies to divert, through source  
                reduction, recycling, and composting, 50 percent of  
                solid waste disposal by their jurisdiction by the  
                year 2000.

             B.    Establishes a statewide household hazardous  
                substance information and collection program within  


                                                               AB 2901

                the California Integrated Waste Management Board  

           This bill:

          1.Establishes the Cell Phone Recycling Act of 2004 and  
            makes related findings and declarations.

          2.Requires, beginning July 1, 2006, every retailer of a  
            cell phone sold in California to have in place a system  
            for accepting and collecting used cell phones for reuse,  
            recycling or proper disposal.  The system shall be  
            comprised of the following elements:

             A.    Taking back used phones from consumers who have  
                purchased the phone from that retailer, at no cost to  
                the consumer, including an authority for retailers to  
                require proof of purchase.

             B.    Taking back a used cell phone from a consumer who  
                is purchasing a new cell phone for that retailer.

             C.    Taking back a used cell phone from a retailer who  
                delivers a cell phone directly to a consumer in this  
                state by establishing a mechanism for the consumer to  
                return the used cell phone at the time of delivery.

             D.    Requiring a retailer to maintain information to  
                consumers about cell phone recycling opportunities,  
                at no cost to the consumer, by one or more of the  

                (1)      Signage that is prominently displayed and  
                   easily visible to the consumer.

                (2)      Written materials provided to the consumer  
                   at the time of purchase or delivery.

                (3)      Reference to the cell phone recycling  
                   opportunity in the retailer advertising or other  
                   promotional materials, or both.

                (4)      Direct communications with the consumer at  
                   the time of purchase.


                                                               AB 2901

          3.Prohibits the sale of a cell phone to a consumer unless  
            the retailer complies with this chapter beginning July 1,  

          4.Requires DTSC, beginning July 1, 2007 and continuing each  
            July 1 thereafter, to post on its web site an estimate of  
            the recycling rates for cell phones in California and  
            related information.

          5.Requires a state agency purchasing or leasing cell phones  
            to certify that prospective bidders and their related  
            businesses have complied with this chapter or demonstrate  
            that this chapter is inapplicable.

             A.    Makes ineligible those prospective bidders and its  
                related businesses who have failed to provide said  

             B.    Requires a prospective bidder to cooperate in  
                providing reasonable access to records and documents  
                to demonstrate compliance.

             C.    Voids the contract and makes ineligible for three  
                years any bidder who is found to be in violation of  
                this section.

             D.    Allows the Attorney General to order to  
                disgorgement of any unlawfully obtained money,  
                property, or benefit from a contractor found to  
                violation this section.

          6.Provides that the provisions are severable.

           Background  .  It is estimated that by 2005, of the 175  
          million cell phones in use, only five percent will be  
          collected, reused, or recycled.  With the average life span  
          of a cell phone being about 18 months, it is estimated that  
          130 million cell phones will be discarded annually.  In  
          California this translates to the discarding of roughly  
          16.3 million cell phones annually.


                                                               AB 2901

          Cell phones contain a variety of toxins, including arsenic,  
          antimony, beryllium, cadmium, copper, lead, mercury,  
          nickel, and zinc.  The typical batteries (lithium and  
          nickel), contain heavy metals including cobalt, zinc, and  
          copper.  Many of these toxins are persistent,  
          bioaccumulative toxins (PBTs) and have the potential to be  
          released into the air and groundwater when burned in  
          incinerators or disposed of in landfills.  
           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/20/04)

          Californians Against Waste (source)  
           Alameda County Waste Management Authority
          California League of Conservation Voters
          California Refuse Removal Council
          California Resource Recovery Association
          California State Association of Counties
          Cell Cycle
          Central Contra Costa Solid Waste Authority
          Charitable Recycling
          Cities of Concord, Coronado, Inglewood, Millbrae,  
            Montebello, and Norwalk
          Collectivegood Mobile Phone Recycling
          Community Environmental Council
          Council of California Goodwill Industries
          County of Santa Barbara Public Works Department
          Del Mar Fairgrounds
          DigiCell International
          East Bay Municipal Utility District
          Environment California
          Gold'n West Surplus, Inc.
          HMR Group San Francisco, Inc.
          Hidden Resources
          Keep California Beautiful
          League of California Cities
          League of Conservation Voters
          Long Beach Energy
          MBA Polymers, Inc.
          Natural Resources Defense Council
          Norcal Waste Systems, Inc.
          Planning and Conservation League


                                                               AB 2901

          Sierra Club California
          SOCAL Computer Recyclers, Inc.
          Solid Waste Association of North America
          UC Davis R4 Recycling Program
          Urban Corps San Diego

           OPPOSITION  :    (Verified  8/20/04)

          The following list reflects opposition to the prior  

          Cellular Telecommunications & Internet Association
          Electronic Industries Alliance
          San Diego Telecom Council
          Silicon Valley Manufacturing Group
          Sony Ericsson Mobile

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill promotes a  convenient and cost-free system for  
          consumers of cell phones to recycle  their obsolete cell  

           ARGUMENTS IN OPPOSITION  :    Unavailable on current version  
          of the bill.  

           ASSEMBLY FLOOR  : 
          AYES:  Berg, Calderon, Chan, Chu, Cohn, Corbett, Correa,  
            Diaz, Dymally, Firebaugh, Frommer, Goldberg, Hancock,  
            Jackson, Kehoe, Koretz, Laird, Leno, Levine, Lieber, Liu,  
            Longville, Lowenthal, Montanez, Mountjoy, Mullin, Nakano,  
            Nation, Negrete McLeod, Oropeza, Pavley, Reyes,  
            Ridley-Thomas, Salinas, Simitian, Steinberg, Wesson,  
            Wiggins, Wolk, Yee, Nunez
          NOES:  Aghazarian, Bates, Benoit, Bogh, Campbell,  
            Canciamilla, Cogdill, Cox, Daucher, Dutton, Garcia,  
            Harman, Haynes, Shirley Horton, Houston, Keene, La Suer,  
            Leslie, Maddox, Maldonado, Matthews, Maze, McCarthy,  
            Nakanishi, Pacheco, Parra, Plescia, Richman, Samuelian,  
            Spitzer, Strickland, Wyland
          NO VOTE RECORDED:  Bermudez, Chavez, Dutra, Jerome Horton,  
            La Malfa, Runner, Vargas


                                                               AB 2901

          CP:cm  8/21/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****