BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 50| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 SB 50 Page 2 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. SB 50 Page 3 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 SB 50 Page 4 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 SB 50 Page 5 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 **** END ****