BILL ANALYSIS Appropriations Committee Fiscal Summary 20 (Sher) Hearing Date: 5/22/03 Amended: 5/21/03 Consultant: Miriam Barcellona Ingenito Policy Vote: EQ 5-1 _______________________________________________________________ BILL SUMMARY: SB 20, an urgency measure, would (1) enact the Hazardous Electronic Waste Recovery, Reuse, and Recycling Act of 2003 (Act); (2) impose civil liability for specified violations; and (3) make Legislative findings and declarations, and define terms. Fiscal Impact (in thousands) Major Provisions 2003-04 2004-05 2005-06 Fund DTSC costs $400 $200 $200 GF/SF* IWMB Costs >$200 $1,700+ $1,700+ GF/SF* *Hazardous Electronic Waste, Recovery, Reuse, and Recycling Account, created in SB 20 within the Integrated Waste Management Fund. +Recovered by fees. STAFF COMMENTS: This bill meets the criteria for referral to the Suspense file. SB 20 would do all of the following: Require the Department of Toxic Substances Control (DTSC) to adopt regulations to prohibit the use of hazardous materials in the manufacture of hazardous electronic devices sold in the State, and prohibit the use of any electronic or mechanical device that prevents or limits the use, reuse or recycling of a hazardous electronic device; Prohibit any person from selling a hazardous electronic device in the State unless the Integrated Waste Management Board (IWMB) determines that the manufacturer of said device is in compliance with the Act; Require a manufacturer of hazardous electronic devices that sells them in the state to notify IWMB of its intent to sell the device and to prepare and submit to IWMB a hazardous electronic device recovery plan that meets specified standards; Require a manufacturer that intends to export a hazardous electronic waste to provide DTSC with specified information; Require IWMB to establish and impose fees on manufacturers of hazardous electronic devices that submit a plan for review to cover its reasonable costs of implementing the Act: Require a manufacturer who does not submit a recovery plan to the board or who does not meet specified recovery and recycling targets, to instead pay a fee to IWMB, which IWMB would deposit into the Hazardous Electronic Waste, Recovery, Reuse, and Recycling Account, created by this bill; and Authorize IWMB to expend monies deposited in the account, upon appropriation by the Legislature, to implement the Act. DTSC has provided preliminary estimates of about $400,000 (and four positions) to develop the two sets of regulations, determine what is a hazardous electronic device, conduct inspections and enforcement activities, consult with IWMB, and maintain the information provided by exporters of hazardous waste. IWMB has provided preliminary estimates of about $1.6 million (and 16 positions) to implement the bill. While all of its costs to administer the Act would be reimbursed and recouped through fees authorized in the bill, IWMB would incur significant costs to develop regulations, develop the required content of the plans to be submitted by the manufacturers, and establish the fee schedule up front. IWMB was not able to provide a preliminary estimate for these up-front costs, but staff estimates that these costs would likely exceed $200,000 (at least 2 positions). STAFF NOTES that in light of the hiring freeze, it is not likely that DTSC and IWMB would be able to hire these additional positions.