BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 723|
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THIRD READING
Bill No: SB 723
Author: DeSaulnier (D)
Amended: As introduced
Vote: 21
SENATE ENV. QUALITY COMMITTEE : 5-2, 5/04/09
AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley
NOES: Runner, Ashburn
SENATE APPROPRIATIONS COMMITTEE : 7-5, 5/28/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
NO VOTE RECORDED: Wolk
SUBJECT : Electronic waste recovery payments
SOURCE : Californians Against Waste
DIGEST : This bill requires the California Integrated
Waste Management Board to update its schedule for payments
to recyclers of specified electronic wastes every year,
rather than every other year as is currently required.
ANALYSIS : 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
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electronic waste.
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.
Background
According to the author's office, 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.
The Electronic Waste Recycling Act . The Act was created in
2003 and established a system of fees on certain electronic
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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
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Major Provisions 2009-10 2010-11
2011-12 Fund
Staff costs to update $139 $276 $276 Special *
schedule
*Electronic Waste Recovery and Recycling Account
SUPPORT : (Verified 5/29/09)
Californians Against Waste (source)
California Chapters of the Institute of Scrap Recycling
Industries
TSM:nl 5/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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