BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 20
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          SENATE THIRD READING
          SB 20 (Sher)
          As Amended September 5, 2003
          Majority vote 

           SENATE VOTE  :25-13  
           
           NATURAL RESOURCES   7-3         ENVIRONMENTAL SAFETY       4-2  
           
           ----------------------------------------------------------------- 
          |Ayes:|Jackson, Hancock, Koretz, |Ayes:|Laird, Levine, Lieber,    |
          |     |Laird, Lieber, Lowenthal, |     |Lowenthal                 |
          |     |Wolk                      |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|La Malfa, Haynes, Keene   |Nays:|Aghazarian, Maddox        |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      15-7                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Steinberg, Berg, Lieber,  |     |                          |
          |     |Diaz, Laird, Goldberg,    |     |                          |
          |     |Levine, Nation, Nunez,    |     |                          |
          |     |Pavley, Ridley-Thomas,    |     |                          |
          |     |Simitian, Wiggins, Yee,   |     |                          |
          |     |Mullin                    |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bates, Daucher, Haynes,   |     |                          |
          |     |Maldonado, Pacheco,       |     |                          |
          |     |Runner, Samuelian,        |     |                          |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Enacts the Electronic Waste Recycling Act of 2003  
          (Act) to provide for the convenient recycling of covered  
          electronic devices in California.  Specifically,  this bill:  

          1)States Legislative intent that the program is to provide  
            sufficient funding for the safe, cost-free, and convenient  
            collection and recycling of 100% of the covered electronic  
            waste discarded or offered for recycling in the state, to  
            eliminate electronic waste stockpiles and legacy devices by  
            December 31, 2007, and to end the illegal disposal of covered  
            electronic devices, to establish manufacturer responsibility  








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            for reporting to the California Integrated Waste Management  
            Board (CIWMB) on the manufacturer's efforts to phase out  
            hazardous materials in electronic devices and increase the use  
            of recycled materials.

          2)Provides that the Department of Toxic Substances Control  
            (DTSC) may, by regulation, establish management standards on  
            the management of electronic waste that the DTSC determines is  
            hazardous or if the Federal Government authorizes an  
            alternative management standard for electronic waste.

          3)Defines "covered electronic device" as a cathode ray tube,  
            cathode ray tube device, flat panel screen, or any other video  
            display device with a screen size that is greater than four  
            inches in size measured diagonally and which, when discarded  
            or disposed, would be a hazardous waste under regulations set  
            by the DTSC.

          4)Defines "authorized collector" as any of the following:

             a)   A city, county or district that collects covered  
               electronic devices;

             b)   A person or entity that is required or authorized by a  
               city, county, or district to collect covered electronic  
               devices;

             c)   A non-profit organization that collects or accepts  
               covered electronic devices;

             d)   A manufacturer that collects, consolidates, and  
               transports covered electronic devices for recycling from  
               consumers, businesses, institutions, and other generators;  
               and,

             e)   Any entity that collects, handles, consolidates, and  
               transports covered electronic devices.

          5)Requires DTSC to adopt regulations that prohibit an electronic  
            device from being sold or offered for sale if the electronic  
            device is prohibited from being sold or offered for sale in  
            the European Union, as specified.

             a)   Provides that the regulations shall take effect January  
               1, 2007; or, on or after the date the European Union  








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               directive is adopted, as specified.

          6)On and after April 1, 2004, imposes an electronic waste  
            recycling fee (Fee) upon the purchase of an electronic device  
            by a consumer from a retailer in the following amounts:

             a)   Six dollars ($6) for each electronic device with a  
               screen size of less than 15 inches measured diagonally;

             b)   Eight dollars ($8) for each electronic device with a  
               screen size greater than or equal to 15 inches but less  
               than 35 inches measured diagonally; and,

             c)   Ten dollars ($10) for each electronic device with a  
               screen size greater than or equal to 35 inches measured  
               diagonally.

          7)Provides that CIWMB shall review and adjust the Fee at least  
            every two years in a public hearing.

          8)Requires CIWMB to base any Fee adjustments on the following  
            factors:

             a)   The sufficiency, and any surplus, of revenues in the  
               account to fund the collection, consolidation, and  
               recycling of 100 percent of the covered electronic waste  
               that is projected to be recycled in the state; and,

             b)   The sufficiency of revenues in the account. 

          9)Prohibits on and after January 1, 2005, the sale of covered  
            electronic devices that are not labeled with the name of the  
            manufacturer or the manufacturer brand label that is readily  
            visible.

          10)Prohibits on and after July 1, 2005, manufacturers of  
            electronic devices to annually submit a report to CIWMB that  
            includes the following information:

             a)   An estimate of the number of covered electronic devices  
               sold by the manufacturer in the state during the previous  
               year;

             b)   A baseline or set of baselines that show the amount of  
               hazardous materials used in the manufacture of electronic  








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               devices by the manufacturer in that year and the reduction  
               in the use of those hazardous materials from the previous  
               year;

             c)   A baseline or set of baselines that show the amount of  
               recycled materials used in the manufacture of electronic  
               devices by the manufacturer in that year and the increase  
               in the use of those recycled materials from the previous  
               year;

             d)   A baseline or set of baselines that describe any efforts  
               to design covered electronic devices for recycling and  
               goals and plans for further increasing design for  
               recycling; and,

             e)   Any other information determined to be necessary by  
               CIWMB to ensure compliance with the Act.

          11)Requires manufacturers to make information available to  
            consumers that describes where and how to return, recycle, and  
            dispose of the covered electronic devices and opportunities  
            and locations for the collection or return of the covered  
            electronic devices and provides information to consumers on  
            the electronic waste recycling fee.

          12)Requires on and after April 1, 2004, manufacturers to inform  
            retailers if a covered electronic device sold by that  
            manufacturer is subject to the recycling fee under the Act.

          13)Provides that the imposition of the fee is a matter of  
            statewide importance and preempts local agencies from enacting  
            similar fees, but provides that local agencies may adopt,  
            implement or enforce local ordinances, resolutions,  
            regulations or rules governing curbside or drop off recycling  
            programs.

          14)Authorizes CIWMB to impose administrative civil penalties of  
            up to $2,500 per violation, and to seek civil penalties of up  
            to $5,000 per violation.

          15)Establishes procedures for CIWMB to administer the Act.

          16)Provides that DTSC may adopt emergency regulations that are  
            necessary to implement the Act and any other regulations DTSC  
            deems necessary enforce the Act.








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          17)Requires CIWMB to convene an electronic waste working group  
            comprised of representatives from manufacturers of electronic  
            devices and other interested parties to develop and, by July  
            1, 2005, advise CIWMB and State and Consumer Agency on  
            environmental purchasing criteria that may be used by state  
            agencies to identify electronic devices with reduced  
            environmental impacts.

          18)Requires CIWMB to annually establish, and update as  
            necessary, statewide recycling goals for covered electronic  
            waste.

          19)Requires CIWMB to annually report to the Legislature and the  
            public on the amount of covered electronic devices sold in the  
            state in the previous year.

          20)Requires CIWMB to annually report to the Legislature and the  
            public on the amount of covered electronic devices recycled in  
            the state in the previous year.

          21)Establishes the Electronic Waste Recovery and Recycling  
            Account (Account), within the Integrated Waste Management  
            Account into which Fee or penalty revenues shall be deposited,  
            and specifies how those funds may be spent by CIWMB.

          22)Provides that CIWMB may spend funds in the Account to:

             a)   Make electronic waste recovery payments to authorized  
               collectors.

             b)   Make electronic waste recycling payments to covered  
               electronic waste recyclers.

             c)   Provide for administrative costs of CIWMB.

             d)   Provide funding to DTSC to implement the Act and any  
               regulations adopted by DTSC to implement the Act.

          23)Provides that CIWMB may use no more than 1% of the funds  
            annually deposited into the Account for a public information  
            program to educate the public.

          24)Provides that CIWMB may not provide funds for electronic  
            devices unless the materials will be handled in compliance  








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            with all statutes and regulations regarding the export of  
            hazardous wastes.

          25)Requires any person intending to export a covered electronic  
            waste to a foreign destination to 60 days prior to the export:

             a)   Notify DTSC of the destination, contents, and volume of  
               covered electronic waste to be exported.

             b)   Demonstrate that any applicable law or regulation of the  
               country of destination does not prohibit the importation of  
               covered electronic waste.

             c)   Demonstrate that the export is conducted only in  
               accordance with international law.

             d)   Demonstrate that the management of the exported covered  
               electronic will be handled within the country of  
               destination in accordance with applicable rules adopted by  
               the Organization for Economic Co-operation and Development  
               for the environmentally sound management of electronic  
               waste.

             e)   Demonstrate that the covered electronic waste is being  
               exported for the purpose of reuse or recycling.

          26)Requires that CIWMD on and after July 1, 2004, and on July 1  
            every two years thereafter, shall establish an electronic  
            waste recovery payment schedule for electronic waste generated  
            to cover the net cost for an authorized collector to operate a  
            free and convenient system for collecting, consolidating and  
            transporting electronic waste. 

          27)Requires that CIWB on and after January 1, 2004, and on  
            January 1 every two years thereafter, shall establish an  
            electronic waste recycling payment schedule to cover an  
            electronic waste recycler's net cost to receive, process, and  
            recycle an electronic device from an authorized collector.

          28)Provides that CIWMB shall make electronic recycling recovery  
            payments and electronic waste recycling payments for the  
            collection and recycling of covered electronic waste to an  
            authorized collector or covered electronic waste recycler.

          29)Requires electronic waste recyclers to certify to CWIMB that  








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            the electronic waste recycler is in compliance with specified  
            requirements.

          30)Prohibits state agencies from procuring hazardous electronic  
            devices unless the manufacturer demonstrates compliance with  
            the aforementioned provisions.

          31)Provides that CIWMB shall not implement the bill's provisions  
            if a federal law is enacted that meets similar standards to  
            those provided under the bill, or if a court enters a final  
            judgement that holds that the fee imposed on manufacturers  
            under the bill is not applicable to out-of-state  
            manufacturers.

          32)Makes findings and declarations relative to electronic waste  
            products, and defines specified terms used in the bill.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee the bill will have moderate costs, perhaps $250,000  
          annually from FY 2004-05 through FY 2007-08, to the DTSC to  
          adopt regulations, moderate costs, perhaps $300,000 in FY  
          2003-04 and $2 million annually thereafter, to the CIWMB, and  
          potentially substantial revenue, perhaps tens of millions of  
          dollars annually, to the CIWMB to cover its costs of  
          administering the consumer electronics recovery process, to  
          cover the DTSC's related costs, and to provide financial  
          incentives and other subsidies to recyclers, local governments,  
          and manufacturers.
           
           COMMENTS  :  According to the author's office, this measure is  
          intended to ensure that electronic waste (commonly referred to  
          as E-waste), are properly collected, recycled, refurbished, or  
          disposed.  The author notes that, in recent months, E-waste has  
          become a significant environmental hazard and concern to  
          environmental groups, the press, and the general public.  Yet,  
          state government has no program that addresses this segment of  
          the waste stream.  The purpose of this measure is to establish a  
          program to promote the efficient and cost-effective collection  
          and processing of e-waste to ensure that they do not pose a  
          threat to public health and the environment.

          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  








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          "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. 

          California regulation currently views nonfunctioning cathode ray  
          tubes (CRTs) from televisions and monitors as hazardous.  CRTs,  
          often called "picture tubes," 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. 

          When tested, most CRTs exceed the regulatory threshold for lead  
          and are identified as hazardous waste when discarded. Waste CRTs  
          are subject to hazardous waste regulations that went into effect  
          August 3, 2001. The regulations protect the environment by  
          promoting the safe collection and recycling of waste CRTs.  
          Disposing of CRTs to the trash or to a municipal landfill is  
          prohibited. 

          The National Safety Council estimates that more than 27 million  
          televisions and 26 million computer monitors will be sold in the  
          United States this year alone, with a projection that some 500  
          million personal computers will be obsolete by 2007.   
          Californians are expected to throw away approximately 30 million  
          old computers and television monitors in the next few years.  


           Analysis Prepared by  :  Kyra Emanuels Ross / NAT. RES. / (916)  
          319-2092 


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