BILL ANALYSIS                                                                                                                                                                                                    



                                                                SB 723
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    SB 723
           AUTHOR:     DeSaulnier
           AMENDED:    As Introduced
           FISCAL:     No                HEARING DATE:     May 4, 2009
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    ELECTRONIC WASTE RECOVERY PAYMENTS

            SUMMARY  :
           
            Existing law  :

           1) Establishes the Electronic Waste Recycling Act, overseen by  
              the Integrated Waste Management Board (IWMB) in partnership  
              with the Department of  Toxic Substances Control (DTSC), to  
              collect and recycle electronic waste (Public Resource Code  
              42460 et seq. and Health and Safety Code 25214.10 et  
              seq.).

           2) Requires the IWMB, in collaboration with DTSC, to establish  
              on July 1, every two years, an electronic waste recovery  
              payment schedule to cover the net cost of an authorized  
              collector in operating a free and convenient system for  
              collecting, consolidating, and transporting covered  
              electronic wastes.
            
           This bill  requires the IWMB to establish the payment schedule  
           on an annual basis.

            COMMENTS  :
           
            1) Purpose of Bill  .  According to the author, this bill is  
              necessary to provide more accurate and timely payments to  
              recyclers that are reflective of the most current market  
              rates for scrap materials.
            
           2) The Electronic Waste Recycling Act  .  The Act was created in  
              2003 and established a system of fees on certain electronic  









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              consumer products such as televisions, computer monitors,  
              DVD players, and laptop computers.  The fees are paid at  
              the retail level by the consumer and used to offset the  
              costs of recycling through payments to recyclers.
            
           3) Market Fluctuations .  The payment schedule for recyclers  
              establishes the amount necessary to cover the net cost of  
              recycling; the difference between total collection and  
              processing costs and market value for the scrap materials.   
              In 2007, the markets for electronic waste scrap were at  
              very high levels.  This data was used to calculate the  
              payments that took effect in July 2008.  However, since  
              that time market prices have fallen and the payments to  
              recyclers are inadequate to cover costs.  The current  
              system of adjusting the schedule every two years is not  
              nimble enough to allow for market fluctuations.  
            
            SOURCE  :        Californian's Against Waste  

           SUPPORT  :       None on file  

           OPPOSITION  :    None on file