BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1326|
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                                 THIRD READING


          Bill No:  SB 1326
          Author:   Oropeza (D)
          Amended:  6/1/10
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  4-2, 4/5/10
          AYES:  Simitian, Corbett, Lowenthal, Pavley
          NOES:  Runner, Strickland
          NO VOTE RECORDED:  Hancock

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Denham, Walters, Wyland
          NO VOTE RECORDED:  Cox


           SUBJECT  :    California Conservation Corps: local  
          conservation corps

           SOURCE  :     Author


           DIGEST :    This bill appropriates $25 million from the  
          E-Waste Account to the California Conservation Corps (CCC)  
          for the collection and recovery of electronic devices.  

           ANALYSIS  :    Existing law, pursuant to the Electronic Waste  
          Recycling Act, overseen by the Department of Resources  
          Recycling and Recovery (DRRR) in partnership with the  
          Department of Toxic Substances Control to collect and  
          recycle electronic waste.

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          1. Requires retailers selling a covered electronic device,  
             as defined, to collect a covered electronic waste  
             recycling fee and those fees are deposited in the  
             Electronic Waste Recovery and Recycling Account (E-waste  
             Account) and are continuously appropriated to DRRR for  
             specified purposes.

          2. Authorizes DRRR to adjust the fee in (a) to ensure there  
             are adequate funds in the E-waste Account for program  
             implementation. 

          This bill: 

          1. Appropriates $15,000,000 from the E-Waste account to the  
             CCCs for the purposes of making direct grants to certify  
             local community conservation corps to collect and  
             recycle covered electronic devices, consistent with the  
             Electronic Waste Recycling Act of 2003, and for  
             activities related to that collection and recycling.

          2. Appropriates $10,000,000 from the E-Waste Account to the  
             CCCs for their efforts to collect and recycle covered  
             electronic devices.

          3. Requires that the funds appropriated above be used to  
             provide immediate employment for at-risk youth and other  
             persons who are members of the local community  
             conservation corps to increase new jobs, employ people  
             in productive activities and reduce unemployment.

          4. Makes related findings and declarations.

           Background  

           California Conservation Corps  .  The CCCs provides young  
          people between the ages of 18 and 23 work experience and  
          educational opportunities.  Corps members work on projects  
          that conserve and improve the environment, such as tree  
          planting, trail building, and brush clearance.  The CCCs  
          estimates about 4,000 men and women (the equivalent of  
          about 1,200 full-time positions) participated in the  
          program during the 2008-09 budget year.  Corps members earn  
          minimum wage and are assigned to work approximately 40  
          hours per week.  On average, corps members stay in the  







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          program for a little over seven months.

          In addition to the CCCs, there are also 12 certified local  
          conservation corps located in various communities  
          throughout the state.  These local corps perform workforce  
          development and training activities similar to the CCCs.

           Electronic Waste Recycling  .  Under current law, DRRR  
          administers a program to manage certain waste electronic  
          products that contain hazardous materials.  A fee is  
          assessed on the sale of specified electronic devices.  
          Revenue from this fee is deposited in E-waste Account.   
          Funds in the E-waste Account are used to provide recovery  
          and recycling payments to qualified entities to cover the  
          cost of collecting and recycling electronic devices and  
          other activities to reduce hazardous substances in  
          electronic devices and encourage recycling of such devices.  
           According to the Senate Appropriations Committee analysis  
          of SB8X 30, currently, revenues exceed expenditures, and  
          the E-waste Account is projected to have a fund balance of  
          $137 million at the end of the 2010-11 budget year.  (DRRR  
          is in the process of reviewing the current fee level and  
          may reduce it in the budget year due to the large fund  
          balance.)

          This bill appropriates $25 million from the E-Waste Account  
          to the CCCs for the collection and recycling of electronic  
          devices specified under current law.  Of this amount, the  
          CCC will use $10 million for its own efforts to collect and  
          recycle electronic devices and the CCCs provides $15  
          million in grants to local community conservation corps for  
          projects to collect and recycle electronic devices.

           Related Legislation
           
          SB8X 30 (Oropeza), an identical bill, passed the Senate on  
          March 4, 2010 (23-8 vote).  (Died at the Assembly Desk).

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)







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           Major Provisions                     2009-10     2010-11     
           2011-12          Fund
           
          California Conservation                 $10,000         
          Special*
             Corps electronic waste
             recycling

          Local conservation corps                $15,000         
          Special*
            electronic waste recycling

          *Electronic Waste Recovery and Recycling Account,  
          Integrated Waste 
            Management Fund.

           SUPPORT  :   (Verified  5/27/10)

          California Local Conservation League

           OPPOSITION  :    (Verified  5/27/10)

          California Conservation Corps
          CalRecycle
          Information Technology Industry Council
          Institute of Scrap Recycling Industries
          TechAmerica

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill tackles two major problems in California - lack  
          of jobs, and littering.  The jobs created by funding this  
          program will include collecting and recycling waste that  
          has been littered in our communities.  It creates  
          conservation corps jobs in inner-city and rural areas.  The  
          author's office notes that the Local Conservation Corps  
          have recycled over 25,000 pounds of e-waste and removed  
          over 154,000 pounds of litter and debris.  This bill  
          appropriates $25 million to local community conservation  
          corps and to the CCCs.  The author's office points out 92  
          percent of participants in the Local Conservation Corps are  
          youth of color; 36 percent are women; and more than 25  
          percent are single parents.  The CCCs is a cost-effective  
          labor force, working for more than 250 local, state and  







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          federal agencies each year.  Crews tackle more than 900  
          projects and generate more than $26 million annually for  
          the Corps.  Participation in Conservation Corp programs  
          reduces arrest rates and leads to greater success in  
          employment rates upon completion of the program.  In  
          addition, corps members advance their education while in  
          the program.

           ARGUMENTS IN OPPOSITION  :    The opponents contend that  
          appropriating $25 million from the Electronic Waste  
          Recycling Act fund to provide grants to the CCCs is not  
          good public policy.  Currently, any local community  
          conservation corp may collect or recycle electronic waste  
          and receive funding from the program as long as the local  
          corp completes the required application forms and is  
          approved by CalRecycle and the Department of Toxic  
          Substance Control.  In fact, there is a number of local  
          corps that already receives funding from this program.

          The opponents note that this program is funded by a fee  
          imposed on all California consumers when purchasing covered  
          devices which is set at a level specifically intended to  
          maintain solvency in the fund sufficient for its intended  
          purpose of making recovery and recycling payment rates.   
          Establishing a separate grant program that is not based on  
          a specified performance level, will create a new process  
          that competes unfairly with the majority of the program  
          participants from the private sector that provides a  
          substantial number of green jobs.  The opponents contend  
          that appropriating funds from one account to pay for  
          another is how California's very successful bottle bill  
          program went from having a surplus to now being in the  
          negative, and the opponents believe the same could happen  
          to the electronic waste program if this bill becomes law. 


          TSM:do  6/1/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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