BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 549
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          Date of Hearing:   April 26, 2011

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Bob Wieckowski, Chair
                 AB 549 (Carter) - As Introduced:  February 16, 2011
           
          SUBJECT  :   Electronic Waste Recycling.

           SUMMARY  :   Modifies the Electronic Waste Recycling Act (E-Waste 
          Act) fraud prevention and audit functions within the Department 
          of Resources Recycling and Recovery (DRRR).  Specifically,  this 
          bill  :

          1)Authorizes DRRR to pay a covered electronic waste (CEW) 
            recovery or recycling payment only if, among other conditions, 
            the covered electronic devices (CED) for which the payment is 
            claimed was used in the State.

          2)Authorizes DRRR to review required documentation submitted by 
            a CEW collector or recycler before making a payments.  
            Authorizes DRRR to refuse to make a payment to a CEW collector 
            or recycler if the required documentation is incomplete or 
            otherwise not in compliance with the E-Waste Act.

           EXISTING LAW  :

          1)Establishes the E-Waste Act with the purpose of providing a 
            cost free and convenient means for consumers to return, 
            recycle, and ensure the safe and environmentally-sound 
            disposal of CED.  A CED is a video display device containing a 
            screen greater than four inches, measured diagonally.  CEDs 
            that are discarded are considered CEW.

          2)Requires a consumer to pay a CEW recycling fee upon the 
            purchase of a new or refurbished CED at the time of the retail 
            sale.  The CEW recycling fee ranges from $6 to $10 for each 
            CED depending on the screen size and is used primarily to pay 
            CEW collectors and recyclers.

          3)Provides payment to CEW collectors and recyclers for costs 
            associated with collecting and recycling CEW that has been 
            generated in the state.  Regulations expressly prohibit a CEW 
            collector or recycler from requesting payments for 
            non-California CEW.  CEW owned by a person in California but 
            used entirely outside of the state is not eligible for 








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            payment.

          4)Requires, pursuant to regulations, DRRR to review payment 
            claims made by CEW collectors and recyclers and determine if a 
            payment is due under the 
          E-Waste Act.  If DRRR has cause to investigate any aspect of a 
            claim, the review may be extended until resolution of all 
            issues under investigation.  DRRR may deny or adjust payment 
            for, among other things, the payment claim being deficient 
            with regard to CEW source documentation. 

           
          FISCAL EFFECT  :   Not known.
           

          COMMENTS  :

           Need for the bill  :  According to the author, "Currently the 
          Electronic Waste Recycling Act of 2003 does not explicitly state 
          that CalRecycle has any authority, let alone authority to review 
          documentation or deny payment for non-compliance.

          AB 549 seeks to clarify CalRecycle's authority by overtly 
          stating that authority, as well as their right to review the 
          required documentation before payment is released and the right 
          to deny payment should non-compliance be detected.

          Furthermore, the Act does not clearly state that sources of 
          covered electronic waste must be from California.  AB 549 
          clarifies the issue by specifically stating that covered 
          electronic waste must be from California."

           Oversight Hearing:   On February 28, 2011, the Assembly 
          Environmental Safety and Toxic Materials Committee and the 
          Natural Resources Committees held a joint oversight hearing on 
          the State regulation and management of electronic waste 
          materials (E-waste).  The hearing reviewed the current E-waste 
          program operated by the State which provides incentives for the 
          collection and recycling of E-waste including the toxic 
          components of modern electronics.  One of the issues raised by 
          the hearing testimony was the need to insure that fraudulent 
          claims were identified quickly and identified the need for 
          stronger enforcement of existing data reporting requirements.

           Current related legislation:








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           AB 583 (Knight):  Solid waste:  hazardous electronic waste. 
          Transfers responsibility and personnel from the State Department 
          of Toxics Substance Control (DTSC) to the Department of Resource 
          recycling and recovery (DRRR) for investigation and enforcement 
          of the California Electronic Waste Recycling Act.  Pending in 
          the Environmental Safety and Toxic Materials Committee.

          AB 794 (Wieckowski):  Solid waste:  hazardous electronic waste.  
          Provides additional processes for the review of claims prior to 
          making payments for covered electronic devises.  Pending in the 
          Assembly Judiciary Committee.

          AB 960 (Bonnie Lowenthal):  Recycling:  electronic waste export. 
           Revises the requirements imposed on exportation to additionally 
          include a person who exports electronic waste or a previously 
          used electronic device and would also include, in the provision, 
          an export intended for reuse.  Repeals the existing exemption 
          for exportation of component parts that are reused or recycled 
          and would instead require DTSC to adopt regulations exempting 
          materials or component parts of electronic waste or previously 
          used electronic devices.  Pending in the Assembly Environmental 
          Safety and Toxic Materials Committee.

           Double Referral  :  This bill was previously heard in the Assembly 
          Natural Resources Committee.

           



          REGISTERED SUPPORT / OPPOSITION  :

           Support
           
          Californians Against Waste
          Silicon Valley Toxics Coalition
           
          Opposition
           
          None on file.
           

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








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