BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 549
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          Date of Hearing:  April 4, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 549 (Carter) - As Introduced:  February 16, 2011
           
          SUBJECT  :  Recycling:  electronic waste

           SUMMARY  :  Codifies regulations that (1) clarify what type of 
          covered electronic waste (CEW) is eligible for payment under the 
          Electronic Waste Recycling Act (Act) and (2) authorize the 
          Department of Resources Recycling and Recovery (CalRecycle) to 
          review payment claims and, if appropriate, refuse payment for 
          non-compliance with the Act.

           EXISTING LAW  :

          1)Establishes the Act with the purpose of providing a cost free 
            and convenient means for consumers to return, recycle, and 
            ensure the safe and environmentally-sound disposal of covered 
            electronic devices (CED).  CED is a video display device 
            containing a screen greater than four inches, measured 
            diagonally.  CED that is discarded is considered CEW.

          2)Requires a consumer to pay a CEW recycling fee upon the 
            purchase of a new or refurbished CED at the time of the retail 
            sale.  The CEW recycling fee ranges from $6 to $10 for each 
            CED depending on the screen size and is used primarily to pay 
            CEW collectors and recyclers.

          3)Provides payment to CEW collectors and recyclers for costs 
            associated with collecting and recycling CEW that has been 
            generated in the state.  Regulations expressly prohibit a CEW 
            collector or recycler from requesting payments for 
            non-California CEW.  CEW owned by a person in California but 
            used entirely outside of the state is not eligible for 
            payment.

          4)Requires, pursuant to regulations, CalRecycle to review 
            payment claims made by CEW collectors and recyclers and 
            determine if a payment is due under the Act.  If CalRecycle 
            has cause to investigate any aspect of a claim, the review may 
            be extended until resolution of all issues under 
            investigation.  CalRecycle may deny or adjust payment for, 
            among other things, the payment claim being deficient with 







                                                                  AB 549
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            regard to CEW source documentation.  

           THIS BILL  :

          1)Authorizes CalRecycle to pay a CEW recovery or recycling 
            payment only if, among other conditions, the CED for which the 
            payment is claimed was used in the state.

          2)Authorizes CalRecycle to review required documentation 
            submitted by a CEW collector or recycler before making a 
            payment under the Act.  CalRecycle may refuse to make a 
            payment to a CEW collector or recycler if required 
            documentation is incomplete or otherwise not in compliance 
            with the Act.

           FISCAL EFFECT  :  Unknown


































                                                                  AB 549
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           COMMENTS  :

           1)CED Used in the State.   Existing statute creates some 
            ambiguity as to what type of CEW can receive payment under the 
            Act.  Sections 42476 and 42478 of the Public Resources Code 
            only references CEW "generated in the state" without providing 
            further clarification.  

            Section 18660.6 of Title 14 of the California Code of 
            Regulations refers to CEW more specifically by stating that 
            only CEW "resulting from a California source" is eligible for 
            recovery and recycling payments.  "CEWs owned by a person in 
            California, but used entirely outside of California are not 
            eligible for payment."

            The bill will essentially codify Section 18660.6 of Title 14 
            of the California Code of Regulations by authorizing 
            CalRecycle to make payments only for CED used in the state.  
            Codification of this regulation will prevent any legal 
            challenge claiming that the regulation conflicts with statute.

           2)Review for Compliance.   Section 18660.30 of Title 14 of the 
            California Code of Regulations authorizes CalRecycle to review 
            a recycling payment claim and determine if a payment is due 
            under the Act.  CalRecycle is authorized to deny or adjust a 
            payment for an incomplete or deficient claim.  The bill will 
            codify this regulation to strengthen its legal authority and 
            avoid legal challenges that attack its validity.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Californians Against Waste

           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092 










                                                                  AB 549
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