BILL ANALYSIS �
AB 794
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Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 794 (Wieckowski) - As Amended: May 3, 2011
Policy Committee: JudiciaryVote:9-0
Natural Resources 9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill strengthens the ability of the Department of Resources
Recycling and Recovery (Calrecycle) to identify and prosecute
fraudulent electronic waste recycling claims. Specifically,
this bill:
1)Authorizes Calrecycle to impose a civil penalty up to $25,000,
per violation, against a person who makes a false statement or
representation in a document filed for purposes of compliance
with the Electronic Recycling Act and who has not made a
verifiable and reasonable effort to determine the source of
the electronic waste.
2)Authorizes Calrecycle to revoke or deny renewal of an
electronic waste collector or recycler application for an
individual who makes false statements or representations, as
described above.
3)Prohibits Calrecycle from making an electronic waste recycling
payment for electronic waste used in another state and then
brought into California.
4)Requires Calrecycle to pay an electronic waste collector or
recycler upon completion of its review of a payment claim.
5)Allows Cal Recycle to conduct audits of electronic waste
collectors, recyclers and manufacturers receiving electronic
waste recovery payment and to recover payments that Calrecycle
finds were made improperly.
6)Allows an electronic waste recycler to contest a denial or
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adjustment of a payment claim by filing an administrative
appeal within 30 days of the notice of denial or adjustment.
FISCAL EFFECT
1) One-time costs to Calrecycle in 2011-12, ranging from
$50,000 to $150,000, to conduct a rulemaking procedure to
establish a framework to implement and regulate Calrecycle
civil penalty authority. (Electronic Waste and Recycling
Recovery Account (EWRRA).)
2) Ongoing annual costs to Calrecycle starting in 2012-13,
ranging from $500,000 to $725,000, equivalent to four to
five positions, to investigate potentially fraudulent
activity, assess and collect penalties, hear appeals and
participate in litigation. (EWRRA.)
3) Annual increased civil penalty revenue to Calrecycle,
starting in 2012-13, of an unknown amount but potentially
in the low hundred thousands of dollars, available to
Calrecycle upon appropriation. (EWWRRA.)
COMMENTS
1)Rationale. The author intends this bill to address problems
with fraud the program discussed during an informational
hearing held in the fall of 2010 and to codify Calrecycle's
regulatory practices to implement the act.
2)Background . The Electronic Waste Act intends to provide a
cost-free and convenient means for consumers to return,
recycle, and ensure the safe and environmentally-sound
disposal of a video display device containing a screen greater
than four diagonal inches. Such devices are known as covered
electronic devices and, when discarded, as covered electronic
waste. Upon purchase of a new or refurbished covered
electronic device, a consumer pays a recycling fee of $6 to
$10 for each device, the amount depending on screen size. Fee
revenue pays electronic waste collectors and recyclers for the
cost of collecting and recycling electronic waste generated in
the state. According to Calrecycle, between 2% and 12% of
payment claims are denied each year, usually because of
fraudulent information regarding the source of the e-waste.
3)Related Legislation . AB 549 (Carter), pending before this
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committee, codifies electronic waste regulations and practices
issued and employed Calrecycle.
4)Support. This bill is supported by Californians Against
Waste.
5)There is no formal opposition registered to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081