BILL ANALYSIS Ó AB 549 Page 1 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 Page 2 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 Page 3 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 Page 4