BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 147
                                                                  Page  1

          Date of Hearing:   May 28, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 147 (Saldana) - As Amended:  May 5, 2009 

          Policy Committee:                              Environmental  
          Safety       Vote:                            5-2

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

           SUMMARY  

          This bill requires a manufacturer and producer of an electronic  
          device or equipment to submit information about the hazardous  
          characteristics of the device or equipment to the Department of  
          Toxic Substances Control (DTSC).  Specifically, this bill:

          1)Requires a manufacturer of a covered electronic device to  
            prepare, and at the request of DTSC to submit within 28 days,  
            technical documentation or other information demonstrating  
            that the device is not prohibited from sale.  Requires the  
            manufacturer to prepare and submit, if requested, available  
            information about the hazardous characteristics of the device.

          2)Defines "electronic equipment" as a consumer device that works  
            by use of or relates to electric currents or electromagnetic  
            fields but is not a non-portable, fixed-installation device; a  
            covered electronic device, or a light. 

          3)Requires a producer of electronic equipment to prepare, and at  
            the request of DTSC to submit within 28 days, technical  
            documentation or other information demonstrating that the  
            device is allowed in the European Union (EU) under the RoHS  
            Directive (European Directive on the "Restriction on the Use  
            of Certain Hazardous Substances in Electrical and Electronic  
            Equipment").  Requires the producer to prepare and submit, if  
            requested, available information about the hazardous substance  
            content and hazardous characteristics of the device.

          4)Requires a producer of electronic equipment not sold in the EU  
            to submit to DTSC available information relating to the  
            hazardous substance content and hazardous characteristics of  








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            the equipment.

          5)Requires DTSC to treat as confidential, any information  
            provided under this bill that is a trade secret and that is  
            identified by the manufacturer as a trade secret.  Requires  
            information that is not a trade secret to be available to the  
            public pursuant to the California Public Records Act.

           FISCAL EFFECT  

          Costs to DTSC of $100,000 in 2009-10 and 2010-11 to develop a  
          contract for translating technical information into English.   
          (Many covered electronic devices are being developed in  
          countries where the primary language is not English.)   
          (Electronic Waste Recovery and Recycling Account)

           COMMENTS  

           1)Rationale  .  According to the author's office, DTSC needs  
            authority to request documentation from electronics  
            manufacturers detailing the amount of hazardous materials  
            contained in their products in order toe effectively manage  
            and regulate hazardous waste.  Otherwise, DTSC must conduct  
            expensive product-by-product testing to determine the  
            hazardous materials content, if any, of a consumer item sold  
            in the state.  The author notes that manufacturers currently  
            provide such information in the European Union per its RoHS  
            (Restriction of Hazardous Substances) Directive.

           2)Background.  
           
             a)   The RoHS Directive  , in combination with Directive  
               2002/96/EC on Waste Electrical and Electronic Equipment  
               (WEEE), bans the sale of virtually all electronic devices  
               that run on electricity or battery power, if those devices  
               contain the listed heavy metals or fire retardants.  The  
               RoHS Directive does not apply to batteries, unless they are  
               incorporated into the electronic devices.  Since electronic  
               devices such as cellular phones, microwave ovens, radios,  
               DVD and video cassette players, blackberries and other  
               hand-held computer and communication devices are covered by  
               the RoHS Directive, they would be subject to the ban  
               proposed by this bill for California if they contain the  
               listed heavy metals and fire retardants.









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              b)   Electronic Waste Recovery and Recycling Program.   SB 20  
               (Sher, Chapter 526, Statutes of 2003) established the  
               Electronic Waste Recovery and Recycling (e-Waste) program  
               and imposed a set of surcharges on most electronic devices  
               containing a video screen larger than four inches  
               diagonally.  The surcharges, first imposed in January 2005,  
               range from $6 to $10, depending on the size of the video  
               screen and are projected to generate about $83 million in  
               FY 2006-07.  After retailers and the BOE deduct 3% and  
               about 7% to cover their respective costs of surcharge  
               collection, about $78 million is available to the CIWMB  
               (and, to a lesser extent the DTSC) to administer the  
               e-waste program and to make incentive payments to eligible  
               entities to recycle or otherwise divert electronic devices  
               from solid waste landfills.  

             Because the surcharge is imposed on only a portion of the  
               total universe of electronic devices deemed hazardous by  
               the DTSC, the incentive payments made from the e-waste  
               Account are unlikely to be large enough to encourage the  
               recycling of all covered electronic devices. 

              c)   Green Chemistry Initiative.   AB 1879 (Feuer, Chapter  
               559, Statutes of 2008) and SB 509 (Simitian, Chapter 560,  
               Statutes of 2008) together established the Green Chemistry  
               Initiative.  The initiative requires two main actions of  
               DTSC.   First, DTSC is to adopt regulations, by January 1,  
               2011, to establish a process to identify and prioritize  
               chemicals or chemical ingredients in products that may be  
               considered a "chemical of concern."  Second, DTSC is to  
               establish a process for evaluating chemicals of concern in  
               products and their potential alternatives in order to  
               determine how best to limit their exposure or reduce the  
               level of hazard the chemicals pose.

           3)Supporters  , including some environmental organizations, claim  
            that DTSC cannot effectively carry out its responsibilities  
            under the Green Chemistry initiative without the  
            product-specific information that it would have under this  
            bill.  Supporters also note that manufactures currently  
            provide such information in the EU.

          4)Opponents  to the bill are representatives of the medical  
            technology industry, who are concerned that the bill has the  
            potential to apply to medical devices, thereby driving up the  








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            cost of those products.  These opponents, noting that the  
            health and well being of many people rely on such devices, ask  
            that the bill be amended to clearly exclude medical devices.

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