BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 147

                                                                  Page 1


          GOVERNOR'S VETO
          AB 147 (Saldana)
          As Amended  September 1, 2009
          2/3 vote

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          |ASSEMBLY:  |42-32|(June 3, 2009)  |SENATE: |23-15|(September 3,  |
          |           |     |                |        |     |2009)          |
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          |ASSEMBLY:  |49-28|(September 9,   |        |     |               |
          |           |     |2009)           |        |     |               |
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           Original Committee Reference:    E.S. & T.M.  

           SUMMARY  :  Requires manufacturers and producers of electronic  
          devices to submit information showing that the electronic device  
          is not prohibited from sale, should the Department of Toxic  
          Substances Control (DTSC), based on reasonable cause to believe  
          that the device is prohibited from sale, request that  
          information.  
           
          The Senate amendments  :  


           1)Define "reasonable cause" as knowledge of any of the  
            following:



             a)   Hazardous substance enforcement activities by another  
               state or country for the same or similar electronic device  
               that indicate that the electronic device may be prohibited  
               from sale;



             b)   Conflicting publicly available documentation regarding  










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               hazardous substances for a specific electronic device that  
               indicates that the electronic device may be prohibited from  
               sale; 



             c)   Homogenous material level testing of a specific  
               electronic device regarding hazardous substances, conducted  
               according to the International Electro technical  
               Commission's IEC 62321 or equivalent method that indicates  
               that one or more homogenous materials may result in the  
               electronic device being prohibited from sale;



             d)   Information from other companies or competitors, if it  
               is a documented allegation, based on homogenous materials  
               reports, for a specific electronic device, that indicate  
               that the electronic device may be prohibited from sale;  
               and,



             e)   Other comparable justification to question whether a  
               specific electronic device is prohibited from sale.



          2)Require a manufacturer to submit information requested by DTSC  
            only if DTSC's request for information is based on reasonable  
            cause, as defined.



          3)Specify that the information that a manufacturer is required  
            to submit is information typically maintained by the  
            manufacturer's industry under Directive 2002/95/EC, adopted by  
            the European Parliament and the Council of the European Union  
            (EU) on January 27, 2003 (RoSH Directive), showing that the  
            electronic device is not prohibited from sale.











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          4)Authorizes DTSC, upon request of the manufacturer, to extend  
            the 28-day response time to the request for information.



          5)Specify that a manufacturer's failure to submit required  
            documentation is not grounds for prohibiting the sale of an  
            electronic device.



          6)Delete provisions of the bill that: 


             a)   Define electronic equipment and other terms for the  
               purposes of the section;

             b)   Require a producer of specified electronic equipment to  
               prepare and submit specified information about the  
               hazardous content and hazardous characteristics of the  
               device; and,

             c)   Prohibit DTSC from imposing any requirements or  
               conditions that are in addition to, or more stringent than,  
               the requirements of the bill.
           
          AS PASSED BY THE ASSEMBLY  , this bill required manufacturers and  
          producers of electronic devices to submit information to DTSC  
          about the hazardous characteristics of the device.
           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, up to $100,000 per year for DTSC to review technical  
          documentation (Electronic Waste Recovery and Recycling Account).

           COMMENTS:   According to the author's office, "Current California  
          law prohibits hazardous materials from electronic devices with a  
          video screen larger than 4 inches, and just last year the  
          legislature enacted the Green Chemistry Initiative, which  
          requires DTSC to regulate chemicals of concern in consumer  










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          products...  In order for DTSC to effectively enforce the  
          existing hazardous materials ban and inform the Green Chemistry  
          Initiative, it needs authority to request documentation from  
          electronics manufacturers detailing the amount of hazardous  
          materials contained in their products?Without this authority,  
          DTSC is only able to resort to expensive product by product  
          testing to determine the hazardous materials content, if any, of  
          a consumer item sold in the state."

           

           The RoHS Directive, or the "Restriction on the Use of Certain  
          Hazardous Substances in Electrical and Electronic Equipment,"  
          Directive 2002/95/EC, was adopted by the European Union (EU) in  
          2003 and took effect on July 1, 2006.  RoHS aims at controlling  
          the use of hazardous substances in the production of new  
          electrical and electronic equipment and prohibits the sale of  
          products that contain more than specified levels of mercury,  
          lead, hexavalent chromium, cadmium and a range of flame  
          retardants, such as polybrominated biphenyls and polybrominated  
          diphenyl ethers.  Currently, RoSH requirements only apply to  
          products sold in the EU.  As a result, other countries and  
          states, including California, are examining RoHS-type standards  
          consistent with the EU's requirements.
           
           California's electronic waste, or e-waste, laws were established  
          by SB 20 (Sher, Chapter 526, Statutes of 2003) and SB 50 (Sher,  
          Chapter 863, Statutes of 2004).  Along with collection and fee  
          requirements, the California e-waste law required DTSC to adopt  
          regulations prohibiting a covered electronic device (a video  
          display device containing a screen greater than four inches)  
          from being sold in California if that device is prohibited from  
          being sold in the EU due to the presence of lead, mercury,  
          cadmium or hexavalent chromium above certain maximum  
          concentration values.  DTSC's regulations took effect January 1,  
          2007, and only apply to covered electronic devices, as defined.   
          Therefore, many electronic products are not regulated under  
          California's current laws.

          Over the past several years, the California legislature has  
          considered numerous bills that would have expanded California's  










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          e-waste laws to align the state's e-waste standards with those  
          in Europe.  This bill requires manufacturers and producers to  
          report data on electronic devices sold in the state, based on  
          DTSC's reasonable cause to believe that that the device is  
          prohibited from sale.

           GOVERNOR'S VETO MESSAGE  :

               This bill requires manufacturers of electronic devices  
               to submit documentation at the request of the  
               Department of Toxic Substances Control (DTSC)  
               demonstrating that the sale of their product is legal  
               in California.
                
               The ability to obtain basic information is fundamental  
               to DTSC's ability to assess a manufacturer's  
               compliance with state laws and inform the Green  
               Chemistry Initiative.  In order to obtain this  
               information, the bill requires DTSC to have  
               "reasonable cause," as prescribed in the bill, before  
               making a request.

               I appreciate and agree with the author's attempt to  
               address manufacturer concerns about open-ended calls  
               for information about specific products.   
               Unfortunately, under the definition of "reasonable  
               cause" in the bill, DTSC's ability to request and be  
               provided information regarding the contents of covered  
               electronic devices under California's Electronic Waste  
               Recycling Act would be significantly limited.



           Analysis Prepared by:     Shannon McKinney / E.S. & T.M. / (916)  
          319-3965 



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