BILL ANALYSIS Ó
Bill No: SB
1427
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 1427 Author: De Leon
As Introduced: February 24, 2012
Hearing Date: April 10, 2012
Consultant: Paul Donahue
SUBJECT
State contracts: Bid preferences for refurbished electronic
goods
DESCRIPTION
1)This bill would require a state agency that accepts bids
or proposals for a contract for electronic goods to
provide a preference of 5% to a company that offers to
fulfill the contract with refurbished electronics. The
5% bid preference would be provided as follows:
a) For solicitations to be awarded to the lowest
responsible bidder meeting specifications, the
preference equals 5% of the bid price of the lowest
responsible bidder meeting specifications.
b) For solicitations to be awarded to the highest
scored bidder based on evaluation factors in addition
to price, the preference equals 5% of the total score
of the highest responsible bidder.
c) The preferences awarded shall not be awarded to a
noncompliant bidder and shall not be used to satisfy
any applicable minimum requirements.
d) In order to be eligible for the 5% preference, a
business must submit all required substantiating
documentation and information so the state agency can
determine if the business is eligible for the
preference.
SB 1427 (De Leon) continued
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2)The bill directs the Department of General Services (DGS)
to establish a process to verify that a business meets
the criteria for the 5% preference.
3)The bill declares that it shall not be construed to
require a state agency to compromise its immediate
mission or ability to function and carry out its existing
responsibilities.
EXISTING LAW
Existing law requires a state agency to meet certain
requirements with respect to purchasing recycled products,
as specified. Existing law requires a local public entity,
if fitness and quality are equal, to purchase recycled
products instead of nonrecycled products whenever recycled
products are available, as specified, and authorizes a
local public entity to give preference to suppliers of
recycled products.
BACKGROUND
1)Purpose : According to the author, the U.S. Environmental
Protection Agency (EPA) estimates that only 15 to 20
percent of used electronics are collected for reuse and
recycling, and that the remainder of collected materials
is primarily sent to U.S. landfills. EPA and industry
data show that tens of millions of used electronics are
thrown away each year. Electronics often contain toxic
substances, such as lead and mercury and their
end-of-life management has created a world-wide
environmental catastrophe. These toxins cause known
adverse impacts on human health and the environment,
particularly when used electronics are exported to
countries that lack a safe recycling and disposal
capacity.
Many electronics, such as condensers and micro-electronic
technology (chips and processors), cell phones, laptops,
televisions and digital cameras also contain so-called
rare earth conflict minerals, columbite-tantalite
(coltan), cassiterite, gold, wolframite, tin and
tungsten.
The author notes that, to the extent that refurbished
SB 1427 (De Leon) continued
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electronics are utilized in favor of new electronic
goods, the bill will also have the effect of reducing the
negative humanitarian and environmental impacts of mining
new rare earth minerals.
2)A study by Pike Research, released in late December, 2011
reports that electronics recycling and reuse is expanding
at a significant rate. It forecasts that electronics
recycling and reuse will rise from 122 million cubic feet
per year in 2010 to 789 million cubic feet annually by
2025. The report partly attributes this projected
increase to modifications in legislative mandates.
3)Suggested technical amendment : "For purposes of this
article, 'refurbished' has the same meaning as described
in subdivision (p) of Section 42463 of the Public
Resources Code."
4)Support : The supporters state the importance of
encouraging use of refurbished electronics to reduce
waste and toxins in the environment, and further note
that reusing rare earth minerals in refurbished
electronics via recycling would help lessen the demand
for newly-mined conflict minerals.
PRIOR/RELATED LEGISLATION
SB 497 (Rubio) 2011-2012 Session . Would have required
state agencies to provide a 5 percent bid preference to
California businesses in contracts for the acquisition of
goods. (Held in Assembly Appropriations Committee)
SB 861 (Corbett) Chapter 715, Statutes of 2011 . This
measure prohibits a scrutinized company, as defined, that
uses conflict minerals from the Democratic Republic of the
Congo, from bidding on a state contract for goods or
services.
SB 967 (Correa) 2009-2010 Session . The bill would have
required state agencies that accept bids on contracts for
goods or services, or for the distribution of funds
pursuant to the federal American Recovery and Reinvestment
Act of 2009, to provide a credit of 5 percent of the bid
price or quotation to a business if 90 percent of its
employees reside in the state. (Vetoed)
SB 1427 (De Leon) continued
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SUPPORT:
ecoATM, Inc.
Global Green USA
OPPOSE:
None on file
DUAL REFERRAL: Senate Environmental Quality Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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