BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 549|
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                                 THIRD READING


          Bill No:  AB 549
          Author:   Carter (D) and Wieckowski (D)
          Amended:  8/23/12 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  5-1, 5/14/12
          AYES:  Simitian, Hancock, Kehoe, Lowenthal, Pavley
          NOES:  Blakeslee
          NO VOTE RECORDED:  Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  78-0, 5/19/11 - See last page for vote


           SUBJECT  :    Recycling:  electronic waste

           SOURCE  :     Author


           DIGEST  :    This bill modifies the Electronic Waste 
          Recycling Act of 2003 (E-Waste Act) fraud prevention and 
          audit functions within the Department of Resources 
          Recycling and Recovery (CalRecycle).  

           Senate Floor Amendments  of 8/23/12 (1) strike the 
          duplicative requirement that a person challenging the 
          denial or adjustment of a payment of a fee on covered 
          electronic waste (CEW) must file an administrative appeal; 
          and (2) add a requirement that the administrative hearing 
          required under existing law be before the CalRecycle 
          Director or his/her designee who will issue a written 
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          decision stating the factual and legal basis for the 
          decision.

           ANALYSIS  :    Existing law, the E-Waste Act, requires a 
          retailer selling a covered electronic device in this state 
          to collect a CEW recycling fee from the consumer, as 
          specified.  These fees are deposited in the Electronic 
          Waste Recovery and Recycling Account, and CalRecycle is 
          continuously appropriated the money in the account to, 
          among other things, make electronic waste recovery payments 
          and recycling payments.  

          CalRecycle is authorized to make these payments only if 
          certain conditions are met.  CalRecycle is required to make 
          these payments to an authorized collector or CEW recycler 
          upon receipt of a completed and verified invoice submitted 
          to CalRecycle in the form and manner determined by 
          CalRecycle.

          This bill:  

          1. Clarifies that CalRecycle shall not pay an electronic 
             waste recycling payment or recovery payment for CEW 
             generated outside of the state and subsequently brought 
             into the state.

          2. Requires CalRecycle to establish documentation 
             requirements for demonstrating that CEW was generated in 
             California and eligible for payment.

          3. Requires CalRecycle to pay a CEW collector or recycler 
             upon completion of its review of a payment claim for 90 
             days or less.  CalRecycle may examine a payment claim to 
             validate its completeness, accuracy, truthfulness, and 
             compliance with applicable laws and regulations.

          4. Permits CalRecycle to conduct a selective audit of 
             authorized collectors, covered CEW recyclers, or 
             manufacturers to determine whether recovery or recycling 
             payments are being paid by CalRecycle according to the 
             requirements of the E-Waste Act.  

          5. Provides a person challenging a revocation, denial of 
             application renewal, application denial, denial or 

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             adjustment of an electronic waste recovery payment, or 
             denial or adjustment of an electronic waste recycling 
             payment, shall exhaust administrative remedies by filing 
             an administrative appeal with CalRecycle no later than 
             30 calendar days from the date of CalRecycle's action, 
             consistent with the regulations adopted pursuant to the 
             E-Waste Act.

          6. States that CalRecycle must provide a hearing to 
             consider the appeal and subsequently to issue a written 
             decision stating the factual and legal basis for the 
             decision.

          7. Specifies that these changes to the E-Waste Act do not 
             affect administrative or legal enforcement actions filed 
             or pending before January 1, 2013, and must not prevent 
             administrative enforcement action taken before that 
             date.

           Comments
           
           Need for this 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 
          Assembly Natural Resources Committees held a joint 
          oversight hearing on the State regulation and management of 
          electronic waste materials (E-waste).  The hearing reviewed 

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          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. 

           Related Legislation
           
          AB 583 (Knight) transfers responsibility and personnel from 
          the State Department of Toxics Substance Control (DTSC) to 
          the CalRecycle for investigation and enforcement of the 
          E-Waste Act.  The bill died in the Assembly Environmental 
          Safety and Toxic Materials Committee. 

          AB 960 (Bonnie Lowenthal) 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 and 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.  The bill is in the 
          Senate Appropriations Committee.

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

           SUPPORT  :   (Verified  6/21/12) (Unable to reverify at time 
          of writing)

          Californians Against Waste
          Silicon Valley Leadership Group
          Silicon Valley Toxics Coalition


           ASSEMBLY FLOOR  :  78-0, 5/19/11
          AYES:  Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 

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            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel P�rez, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NO VOTE RECORDED:  Alejo, Gorell


          DLW:k   8/24/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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