BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                              UNFINISHED BUSINESS


          Bill No:  SB 20
          Author:   Sher (D), et al
          Amended:  9/9/03
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-1, 5/12/03
          AYES:  Sher, Chesbro, Figueroa, Kuehl, Romero
          NOES:  Denham

           SENATE APPROPRIATIONS COMMITTEE  :  8-5, 5/29/03
          AYES:  Alpert, Bowen, Burton, Escutia, Karnette, Machado,  
            Murray, Speier
          NOES:  Battin, Aanestad, Ashburn, Johnson, Poochigian

           SENATE FLOOR  :  25-13, 6/4/03
          AYES:  Alarcon, Alpert, Bowen, Burton, Cedillo, Chesbro,  
            Ducheny, Dunn, Escutia, Figueroa, Florez, Karnette,  
            Kuehl, Machado, McPherson, Murray, Perata, Romero, Scott,  
            Sher, Soto, Speier, Torlakson, Vasconcellos, Vincent
          NOES:  Aanestad, Ackerman, Ashburn, Battin, Brulte, Denham,  
            Hollingsworth, Knight, Margett, McClintock, Morrow,  
            Oller, Poochigian
          NO VOTE RECORDED:  Johnson Ortiz

           ASSEMBLY FLOOR  :  42-29, 9/10/03 - See last page for vote


           SUBJECT  :    Solid waste:  hazardous electronic waste

           SOURCE  :     Author


           DIGEST  :    This bill enacts the Electronic Waste Recycling  
                                                           CONTINUED





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          Act of 2003 to provide for the convenient recycling of  
          covered electronic devices in California.

           Assembly amendments  make significant changes to many  
          provisions of the bill, however, the intent remains the  
          same.

           ANALYSIS :    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 percent 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 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 State 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 "Consumer" as including business, corporation,  
             limited partnership, non-profit organization, or  
             governmental entity except a wholesale transaction  
             between a distributor and retailer.

          5. Defines "authorized collector" as any of the following:

             A.   A city, county or district that collects covered  







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               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.

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

          1. 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.

             Provides that the regulations shall take effect January  
             1, 2007; or, on or after the date the European Union  
             directive is adopted, as specified.

          2. On and after July 1, 2004, imposes an electronic waste  
             recycling 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.

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

          1. Provides that CIWMB, in collaboration with DTSC, shall  
             review and adjust the Fee at least every two years in a  







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             public hearing.

          2. Requires CIWMB, in collaboration with DTSC, 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.

             B.   The sufficiency of revenues in the account.

          1. Prohibits on and after July 1, 2004, the sale of covered  
             electronic devices to consumers unless the CIWMB or DTSC  
             determines that the manufacturer of the covered  
             electronic device demonstrates compliance with the act.

          2. 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.

          3. 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 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  







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               recycling and goals and plans for further increasing  
               design for recycling.

          1. 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.

          2. 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.

          3. 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.

          4. 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 for each  
             sale of a covered electronic device for which a covered  
             electronic waste recycling fee has been paid.

          5. Provides that the act may be enforced by the DTSC. 

          6. Establishes procedures for CIWMB and DTSC to administer  
             the act. 

          7. Provides that CIWMB and DTSC may adopt emergency  
             regulations that are necessary to implement the act and  
             any other regulations DTSC deems necessary enforce the  
             act. 

          8. Requires CIWMB, in collaboration with DTSC, 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  







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             environmental purchasing criteria that may be used by  
             state agencies to identify electronic devices with  
             reduced environmental impacts.

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

          10.Provides that any statewide goals for electronic waste  
             recycling do not authorize the CIWMB or DTSC to  
             establish any recycling rates or dates by which a  
             manufacturer must comply or impose any other goal or  
             target upon a manufacturer. 

          11.Requires CIWMB to annually report to the Legislature and  
             the public, and post on its web site, the amount of  
             covered electronic devices sold in the state in the  
             previous year.

          12.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.

          13.Establishes the Electronic Waste Recovery and Recycling  
             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 DTSC and  
             CIWMB.

          14.Provides that CIWMB and DTSC 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 and DTSC.

             D.   Provide funding to DTSC to implement the act and  
               any regulations adopted by DTSC to implement the act.

          1. Provides that CIWMB may use no more than one percent of  







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             the funds annually deposited into the Account for a  
             public information program to educate the public.

          2. Provides that CIWMB may not provide funds for electronic  
             devices unless the materials will be handled in  
             compliance with all statutes and regulations regarding  
             the export of hazardous wastes.

          3. 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 Cooperation  
               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.

             F.   Provides that these conditions do not apply to  
               component parts of a covered electronic device that  
               are exported to an authorized collector or recycler  
               and that are reused or recycled into new electronic  
               components.

          1. Requires that CIWMD, in collaboration with DTSC, 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  







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             and transporting electronic waste.

          2. Requires that CIWB, in collaboration with DTSC, 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.

          3. 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 upon receipt of a completed  
             and verified invoice submitted to the recycler by the  
             authorized collector in the form and manner determined  
             by the CIWMB.

          4. Requires electronic waste recyclers to certify to CWIMB  
             that the electronic waste recycler is in compliance with  
             specified requirements.

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

          6. 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.

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

           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  







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          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to 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.

           SUPPORT  :   (Verified  9/11/03)

          Californians Against Waste (source)
          Alameda County Waste Management Authority
          Alameda County Source Reduction and Recycling Board
          Apple Computer
          As You Sow
          California Democratic Party Environmental Caucus
          California League of Conservation Voters
          California Nurses Association
          California Resource Recovery Association
          California State Association of Counties
          Center for Community Action and Environmental Justice
          Central Contra Costa Solid Waste Authority
          City of Alhambra
          City of American Canyon
          City of Arcadia
          City of Arcata
          City of Baldwin Park
          City of Benicia
          City of Capitola







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          City of Chico
          City of Costa Mesa
          City of Cupertino
          City of Daly City
          City of Del Rey Oaks
          City of Downey
          City of Emeryville
          City of Eureka
          City of Fairfield
          City of Fremont
          City of Glendale
          City of Indio
          City of Lemon Grove
          City of Lompoc
          City of Manhattan Beach
          City of Millbrae
          City of Morgan Hill
          City of Morro Bay
          City of Pico Rivera
          City of Poway
          City of San Diego
          City of San Jose
          City of San Mateo
          City of Sand City
          City of Santa Ana
          City of Santa Barbara
          City of Santa Cruz
          City of Scotts Valley
          City of Shelton
          City of Sonoma
          City of Sunnyvale
          City of Thousand Oaks
          City of Westlake Village
          City/County of San Francisco
          City/County Association of Governments of San Mateo
          Clean Water Action
          Community Environmental Council
          Congress of California Seniors
          Consumer Attorneys
          County of Alameda
          County of Marin
          County of Monterey
          County of Napa
          County of Sacramento







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          County of Santa Clara
          County of Santa Cruz
          County of Trinity
          Del Norte Solid Waste Management Authority
          Ecology Center
          Electronic Manufacturers Coalition for Responsible  
            Recycling, consisting of:  Hitachi; IBM Corporation; JVC;  
            Mitsubishi; Panasonic; Phillips Electronics;  
            Fisher-Sanyo; Sharp Electronics Corporation Sony;  
            Electronics; Thompson, Inc.; Toshiba
          Environmental Entrepreneurs (E2)
          Global Recycling Council
          Governmental Advocates
          HMR Los Angeles
          HMR San Francisco
          Humboldt WMA
          Japanese Maquiladora Association
          League of California Cities
          Marin County Hazardous and Solid WM JPA
          MBA Polymers, Inc.
          Mojave Desert and Mountain Recycling JPA
          Monterey Regional Waste Management District
          Natural Resources Defense Council
          Northern California Recycling Association
          OSS-Spectrum
          Palo Verde Valley Disposal Service
          Planning and Conservation League
          Price Consulting
          Salinas Valley Solid Waste Authority
          San Luis Obispo County IWMA
          Sanyo Fisher Company
          Sisters of Mercy of the Americas
          Sisters of Notre Dame de Namur
          SoCal Computer Recyclers, Inc.
          Solid Waste Association of North America
          Sonoma County WMA
          Town of Atherton
          Tracy Material Recovery and Solid Waste Transfer, Inc.
          Urban Corps of San Diego
          VALCORE Recycling
          Waste Management
          West Contra Costa IWMA
          Numerous individuals 








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           OPPOSITION  :    (Verified  9/11/03)

          American Electronics Association
          Hewlett-Packard
          Silicon Valley Manufacturing Group

           ASSEMBLY FLOOR  :
          AYES:  Berg, Bermudez, Calderon, Canciamilla, Chan, Chavez,  
            Chu, Cohn, Corbett, Diaz, Dymally, Frommer, Goldberg,  
            Hancock, Jerome Horton, Jackson, Kehoe, Koretz, Laird,  
            Leno, Levine, Lieber, Liu, Longville, Lowenthal,  
            Montanez, Mullin, Nakano, Nation, Nunez, Oropeza, Parra,  
            Pavley, Reyes, Ridley-Thomas, Salinas, Simitian,  
            Steinberg, Vargas, Wiggins, Wolk, Wesson
          NOES:  Aghazarian, Bogh, Campbell, Cogdill, Correa, Cox,  
            Dutra, Dutton, Garcia, Haynes, Shirley Horton, Houston,  
            Keene, La Malfa, La Suer, Leslie, Maddox, Maldonado,  
            Maze, McCarthy, Mountjoy, Nakanishi, Pacheco, Plescia,  
            Runner, Samuelian, Strickland, Wyland, Yee


          CP:sl  9/11/03   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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