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Ventures, LLC-claims that the list of products that are statutorily exempt from the electronic waste (e-waste) fee is outdated.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