BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 794 (Wieckowski)
Hearing Date: 08/25/2011 Amended: 08/15/2011
Consultant: Brendan McCarthy Policy Vote: EQ 6-0
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BILL SUMMARY: AB 794 makes several changes to the laws governing
the recycling of electronic waste, to ensure that only eligible
electronic waste is eligible for incentive payments.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Developing regulations $750 $750 $750 Special
*
and enforcement
* Electronic Waste and Recycling Recovery Account.
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STAFF COMMENTS: SUSPENSE FILE.
Under current law, certain "covered electronic devices" are
included in the state's electronic waste recycling program.
Generally, covered electronic devices are those that have a
screen larger than four inches. When a consumer purchases a
covered electronic device, he or she pays a fee from $6 to $10
per device. Revenues from this fee are used to support companies
that collect and recycle these devices. Only covered electronic
devices that were purchased and then discarded in California are
eligible for payment. The program is overseen by the Department
of Resources Recovery and Recycling (Department).
In recent years, the Department has rejected about 5 percent of
claims for recycling payments for non-compliance with program
requirements, including fraudulent information about the sources
of electronic waste.
AB 794 makes several changes to the laws governing the
electronic waste recycling program, with the intent of ensuring
AB 794 (Wieckowski)
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that recycling payments are only paid for covered electronic
devices that are truly eligible for payment-that is, covered
electronic waste that was generated in California.
Specifically, the bill authorizes the Department to
administratively impose civil penalties up to $25,000 on a
person who makes a false statement or representation in any
document used to comply with program requirements. However, the
bill also provides that a person is not liable for civil
penalties for making a false representation if he or she made
verifiable and reasonable efforts to determine the source of
electronic waste. The bill authorizes the Department to deny or
revoke an application from a collector or recycler that makes a
false statement in an application or has a history of operating
in conflict with the program's requirements. The bill authorizes
the Department to conduct audits to ensure compliance with
program requirements. The bill creates an appeal process for
recyclers that wish to contest the denial of a payment by the
Department.
Many of the requirements in the bill have been incorporated into
the regulations governing the program. However, by explicitly
increasing the Department's authority and responsibility to
enforce these program requirements, the bill will impose
additional costs on the Department. The Department indicates
that it will need additional staff, at a cost of about $750,000
per year to implement the requirements of the bill.
By improving the Department's ability to prevent fraudulent
claims, the bill may reduce program expenditures in the
long-run. The extent of this impact is unknown.
AB 960 (B. Lowenthal) requires exporters of electronic waste or
covered electronic devices to demonstrate that the electronic
waste will be handled in compliance with local laws where the
waste is imported. That bill is on this committee's Suspense
File.
AB 549 (Carter) requires that recyclers demonstrate that a
covered electronic device for which a recycling payment is
claimed was used in California. That bill is in the
Environmental Quality Committee.
AB 794 (Wieckowski)
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