BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                              UNFINISHED BUSINESS


          Bill No:  SB 50
          Author:   Sher (D), et al
          Amended:  8/26/04
          Vote:     27 - Urgency

           
           SENATE ENV. QUALITY COMMITTEE  :  7-0, 1/12/04
          AYES:  Sher, Denham, Chesbro, Figueroa, Kuehl, McPherson,  
            Romero

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  37-0, 1/28/04 (Passed on Consent)
          AYES:  Aanestad, Ackerman, Alarcon, Alpert, Ashburn,  
            Battin, Bowen, Burton, Cedillo, Chesbro, Denham, Ducheny,  
            Dunn, Escutia, Figueroa, Florez, Hollingsworth, Johnson,  
            Karnette, Knight, Kuehl, Machado, McClintock, Morrow,  
            Murray, Oller, Ortiz, Perata, Poochigian, Romero, Scott,  
            Sher, Soto, Speier, Torlakson, Vasconcellos, Vincent
          NO VOTE RECORDED:  Brulte, Margett, McPherson

           ASSEMBLY FLOOR :  Not available


           SUBJECT  :    Solid waste:  hazardous electronic waste:   
          solid waste
                          disposal fees

           SOURCE  :     Author


           DIGEST  :    This bill makes a number of clarifying changes  
          to the Electronic Waste Recycling Act (Act) of 2003 [SB 20  
          (Sher), Chapter 526, Statutes of 2003].
                                                           CONTINUED





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           Assembly amendments  make substantial changes to the bill,  
          however, the intent remains the same.

           ANALYSIS  :    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  
             January 1, 2005. 

          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. Requires manufacturers to notify retailers when a  
             covered electronic waste is deemed non-hazardous and is  
             no longer subject to the fee. 

          8. Provides immunity from liability for retailers who did  
             not charge a fee on a covered electronic waste that they  
             were not made aware of being subject to the fee. 

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








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

          11.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. 

          12.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. 

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

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

          15.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  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.   If the covered electronic waste is processed, the  
               covered electronic waste is processed in this state  







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               according to the cancellation method authorized by the  
               CIWMB.

             D.   If the covered electronic waste is recycled, the  
               covered electronic waste is recycled within the state.  


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

          17.Clarifies that landfills and transfer stations in  
             California must remit state tipping fee funds to the BOE  
             as directed by current law. 
          18.Clarifies that manufacturers that collect their own  
             covered electronic devices may recycle that waste  
             out-of-state and be eligible to receive, in lieu of a  
             recycling payment, the fees charged on those products. 

          19.Provides a loan of up to $5 million from the General  
             Fund and up to $25 million from any special fund  
             authorized by law, to the CIWMB to cover initial  
             start-up costs of the BOE and the CIWMB for the Act. 

          20.Mandates the loan be repaid on or before November 1,  
             2005. 

          21.Makes numerous technical and clarifying changes to the  
             Act. 

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

          Unknown

           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  







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          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  
          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.

           SUPPORT  :   (Verified  8/26/04)

          Electronic Manufacturers Coalition for Responsible  
          Recycling


          CP:nl  8/27/04   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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