BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 50
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          Date of Hearing: August 25, 2004

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                             Hannah-Beth Jackson, Chair
                     SB 50 (Sher) - As Amended:  August 23, 2004 

           SENATE VOTE  :  37-0
           
          SUBJECT  :  Electronic waste.

           SUMMARY  :  Makes a number of clarifying changes to the Electronic  
          Waste Recycling Act (Act) of 2003 [SB 20 (Sher), Chapter 526,  
          Statutes of 2003].

           EXISTING LAW  :

          1)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.

          2)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.

          3)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.









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

          4)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  
               directive is adopted, as specified.

          5)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.

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

          6)Provides that the California Integrated Waste Management Board  
            (CIWMB) shall review and adjust the Fee at least every two  
            years in a public hearing.

          7)Requires the 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.

             b)   The sufficiency of revenues in the account. 

          8)On and after January 1, 2005, prohibits 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.








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          9)On and after July 1, 2005, requires manufacturers of  
            electronic devices to annually submit a report to the 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 recycling and  
               goals and plans for further increasing design for  
               recycling.

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

          10)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.

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

          12)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  








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            programs.

          13)Authorizes the 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.

          14)Establishes procedures for the CIWMB to administer the Act.

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

          16)Requires the 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 the 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.

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

          18)Requires the 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.

          19)Requires the 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.

          20)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 the CIWMB.

          21)Provides that the 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.









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             c)   Provide for administrative costs of the CIWMB.

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

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

          23)Provides that the 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.

          24)Requires any person intending to export a covered electronic  
            waste to a foreign destination, 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.

          25)Requires on and after July 1, 2004, and on July 1 every two  
            years thereafter, the CIWMB 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. 

          26)Requires on and after January 1, 2004, and on January 1 every  








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            two years thereafter, the CIWMB shall establish an electronic  
            waste recycling payment schedule to cover an electronic waste  
            recyclers net cost to receive, process, and recycle an  
            electronic device from an authorized collector.

          27)Provides that the 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.

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

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

          30)Provides that the 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.

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

           THIS BILL  :

          1)Requires the Department of Toxic Substances Control (DTSC) to  
            adopt regulations for determining whether an electronic  
            device, when discarded, is not a hazardous waste.

          2)Requires DTSC to adopt regulations to identify electronic  
            devices that DTSC determines are presumed to be, when  
            discarded, a hazardous waste.

          3)Requires manufacturers of covered electronic devices, by  
            August 1, 2005, and April 1, annually thereafter to report to  
            retailers whether a device is a covered electronic device for  
            purposes of the Act.

          4)Requires a covered electronic device identified in regulations  
            to be subject to the Act on and after November 1, 2004.








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          5)Revises the definitions of "covered electronic waste,"  
            "person,"  "retailer," and "retail sale," and defines the  
            terms "discarded," "recycling," "refurbished," "vendor," and  
            "video display device".

          6)Revises the procedures for the review and adjustment of the  
            covered electronic waste recycling fee (fee).

          7)Beginning January 1, 2005, requires the State Board of  
            Equalization (BOE) to collect the fee under the Fee Collection  
            Procedures Law.

          8)Requires the fee to be due and payable to BOE quarterly on or  
            before the last day of the month following each calendar  
            quarter.

          9)Prohibits, on and after January 1, 2005, the sale of a new or  
            refurbished covered electronic device for sale in California  
            unless the device is labeled with the name of the manufacturer  
            so that it is readily visible.

          10)Allows funds in the Electronic Waste Recovery and Recycling  
            Account (Account) to be continuously appropriated to reimburse  
            BOE for its costs associated with registration, collection,  
            overpayment refunds, and auditing retailers, to make  
            electronic waste recovery payments and electronic waste  
            recycling payments, and to provide funds to DTSC to implement  
            and enforce the hazardous waste control law, with regard to  
            electronic waste devices.

          11)Establishes the Electronic Waste Penalty Subaccount in the  
            Account, to collect fines and penalties.

          12)Provides the California Integrated Waste Management Board  
            (CIWMB) shall adopt regulations specifying cancellation  
            methods for recovery, processing or recycling of covered  
            electronic waste.

          13)Provides that CIWMB may pay an electronic waste recycling  
            payment or electronic waste recovery payment for covered  
            electronic waste only if all of the following conditions are  
            met:

             a)   The covered electronic waste, including any residuals  








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               from the processing of the waste, is handled in compliance  
               with all applicable statutes and regulations;

             b)   The manufacturer or the authorized collector or recycler  
               of the electronic waste provide a cost free and convenient  
               opportunity to recycle electronic waste;

             c)   The covered electronic waste is not exported out of  
               state;

             d)   If the covered electronic waste is processed, the  
               covered electronic waste is processed in this state  
               according to the cancellation method authorized by the  
               CIWMB; and,

             e)   If the covered electronic waste is recycled, the covered  
               electronic waste is recycled within the state.

          14)Clarifies the standards for exporting covered electronic  
            waste or covered electronic devices to another state or  
            foreign country.

          15)Mandates a loan from General Fund or Special Funds for up to  
            $30 million to cover the costs of implementing the Act,  
            including providing payments to recyclers and collectors.

          16)Adds an urgency clause.

          17)Makes technical and clarifying changes to the Act.

           FISCAL EFFECT  : According to the Assembly Appropriations  
          Committee, minor costs and savings to both DTSC and CIWMB  
          resulting from the various modifications to the electronic waste  
          program and the entities' administration of the program. 

           COMMENTS  :  According to information from CIWMB and DTSC Web  
          sites:  "E-waste is a popular, informal name for electronic  
          products nearing the end of their 'useful life.' Computers,  
          televisions, VCRs, stereos, copiers, and fax machines are common  
          electronic products.  Many of these products can be reused,  
          refurbished, or recycled.  Unfortunately, electronic discards is  
          one of the fastest growing segments of our nation's waste  
          stream.  In addition, some researchers estimate that nearly 75  
          percent of old electronics are in storage, in part because of  
          the uncertainty over how to manage the materials.  Combine this  








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          with increasing advances in technology and new products headed  
          towards the market and it is no wonder that E-waste is a popular  
          topic." 

          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.  

          The Act set up a system to encourage the recycling of e-waste.   
          Through a system of fees on e-waste being sold in California and  
          payments to e-waste collectors and recyclers who provide free  
          and convenient recycling opportunities to consumers, we now have  
          the basic structure of a recycling program to work with.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
            Opposition 
           
          None on file

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


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