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 CONTINUED AB 2901 Page 2 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 consumer." 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 Page 3 the California Integrated Waste Management Board (CIWMB). 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 following: (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 Page 4 3.Prohibits the sale of a cell phone to a consumer unless the retailer complies with this chapter beginning July 1, 2006. 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 certification. 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. Comments 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 Page 5 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 Page 6 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 version: 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 phones. 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 Page 7 CP:cm 8/21/04 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****