BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1280
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 1280 (Adams) - As Amended:  May 6, 2009 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill exempts from the definition of a covered electronic  
          device (CED) a video display device that is contained within a  
          freezer, induction cooktop or range, beverage maker, food  
          steamer, or air purifier only if the Department of Toxic  
          Substances Control (DTSC) has not adopted regulations that  
          identify the electronic device to be hazardous waste.

           FISCAL EFFECT  

          Negligible costs.

           COMMENTS 

           1)Rationale  .  The sponsor of this bill- STS Ventures, LLC-claims  
            that the list of products that are statutorily exempt from the  
            electronic waste (e-waste) fee is outdated.  Decreasing  
            technology costs and new technology advances now allow the  
            inclusion of touch screens in relatively inexpensive devices,  
            such as air purifiers and beverage makers.  Placing an  
            additional e-waste fee of $8 to $25 dollars on these products  
            can increase their price considerably and make them  
            noncompetitive with similar devices that lack touch screens.

           2)Background  .  
           
             a)   E-waste Fees and CED Take-back Programs  .  Many  
               electronic devices contain hazardous materials.  For this  
               reason, it is illegal to dispose of many electronic devices  
               along with ordinary garbage.  To properly manage disposal  
               of hazardous e-waste, California enacted the Electronic  








                                                                  AB 1280
                                                                  Page  2

               Waste Management Act of 2003.  Under the e-waste act, an  
               e-waste fee is assessed on certain "covered electronic  
               devices" (CEDs) sold in California, with fee revenues used  
               to provide payments to authorized collectors and recyclers  
               of e-waste. 

              b)   DTSC Identifies Covered Electronic Devices.   Generally,  
               the law authorizes DTSC to determine what electronic  
               devices may be hazardous and, therefore, to classify as  
               CEDs.  DTSC classifies most video display products, such as  
               computer monitors and televisions, as CEDs.  Such devices  
               are subject to the e-waste fee, collected at the time of  
               sale, as follows:

               i)     Greater than 4 inches but less than 15 inches-$8.
               ii)    Greater than or equal to 15 inches but less than 35  
                 inches-$16.
               iii)   Greater than or equal to 35 inches-$25.

              c)   Existing Law Explicitly Exempts Certain Video Display  
               Devices  .  SB 50 (Sher, Chapter 863, Statutes of 2004)  
               expanded the list of products exempted from the definition  
               of a CED to include common household appliances, such as a  
               video display device contained within a clothes washer,  
               clothes dryer, or refrigerator.  

           3)Supporters  - STS Venture, LLC and the California Retailers  
            Association-argue that the list of statutorily exempted  
            electronic devices is outdated.  Today, relatively inexpensive  
            devices include touch screens, and more products are likely to  
            soon carry these screens as well.  The addition of the e-waste  
            fee to these relatively low-cost products makes them  
            considerably more expensive and uncompetitive with similar  
            devices that do not include touch screens.

           4)Opponents  , including Californians Against Waste-a group that  
            advocates for waste reduction and increased recycling-contends  
            the devices exempted by this bill all contain hazardous  
            materials and, therefore, should be subject to the e-waste fee  
            to enable proper disposal.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081