BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 794 (Wieckowski)
          
          Hearing Date: 08/15/2011        Amended: 08/15/2011
          Consultant: Brendan McCarthy    Policy Vote: EQ 6-0
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          ____
          BILL SUMMARY: AB 794 makes several changes to the laws governing 
          the recycling of electronic waste, to ensure that only eligible 
          electronic waste is eligible for incentive payments.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Developing regulations $750       $750        $750      Special 
          *
             and enforcement                                          

          * Electronic Waste and Recycling Recovery Account.
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Under current law, certain "covered electronic devices" are 
          included in the state's electronic waste recycling program. 
          Generally, covered electronic devices are those that have a 
          screen larger than four inches. When a consumer purchases a 
          covered electronic device, he or she pays a fee from $6 to $10 
          per device. Revenues from this fee are used to support companies 
          that collect and recycle these devices. Only covered electronic 
          devices that were purchased and then discarded in California are 
          eligible for payment. The program is overseen by the Department 
          of Resources Recovery and Recycling (Department). 

          In recent years, the Department has rejected about 5 percent of 
          claims for recycling payments for non-compliance with program 
          requirements, including fraudulent information about the sources 
          of electronic waste. 

          AB 794 makes several changes to the laws governing the 








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          electronic waste recycling program, with the intent of ensuring 
          that recycling payments are only paid for covered electronic 
          devices that are truly eligible for payment-that is, covered 
          electronic waste that was generated in California.

          Specifically, the bill authorizes the Department to 
          administratively impose civil penalties up to $25,000 on a 
          person who makes a false statement or representation in any 
          document used to comply with program requirements. However, the 
          bill also provides that a person is not liable for civil 
          penalties for making a false representation if he or she made 
          verifiable and reasonable efforts to determine the source of 
          electronic waste. The bill authorizes the Department to deny or 
          revoke an application from a collector or recycler that makes a 
          false statement in an application or has a history of operating 
          in conflict with the program's requirements. The bill authorizes 
          the Department to conduct audits to ensure compliance with 
          program requirements. The bill creates an appeal process for 
          recyclers that wish to contest the denial of a payment by the 
          Department.

          Many of the requirements in the bill have been incorporated into 
          the regulations governing the program. However, by explicitly 
          increasing the Department's authority and responsibility to 
          enforce these program requirements, the bill will impose 
          additional costs on the Department. The Department indicates 
          that it will need additional staff, at a cost of about $750,000 
          per year to implement the requirements of the bill.

          By improving the Department's ability to prevent fraudulent 
          claims, the bill may reduce program expenditures in the 
          long-run. The extent of this impact is unknown.


          AB 960 (B. Lowenthal) requires exporters of electronic waste or 
          covered electronic devices to demonstrate that the electronic 
          waste will be handled in compliance with local laws where the 
          waste is imported. That bill is on this committee's Suspense 
          File.

          AB 549 (Carter) requires that recyclers demonstrate that a 
          covered electronic device for which a recycling payment is 
          claimed was used in California. That bill is in the 
          Environmental Quality Committee.








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