BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1427|
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THIRD READING
Bill No: SB 1427
Author: De León (D), et al.
Amended: 5/25/12
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-4, 04/10/12
AYES: Wright, Calderon, Corbett, De León, Hernandez,
Padilla, Yee
NOES: Anderson, Berryhill, Cannella, Walters
NO VOTE RECORDED: Evans, Wyland
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 5-2, 4/23/12
AYES: Simitian, Hancock, Kehoe, Lowenthal, Pavley
NOES: Strickland, Blakeslee
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/24/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters, Dutton
SUBJECT : State contracts: bid preferences: refurbished
electronic
goods
SOURCE : Global Green, Inc.
DIGEST : This bill requires 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.
CONTINUED
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ANALYSIS : 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.
This bill:
1. Requires a state agency that accepts bids or proposals
for a contract for electronic goods to provide a
preference of 5% to a bidder that offers to fulfill the
entire contract only 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 scored 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.
E. Notwithstanding any other law, both of the
following apply:
(1) The maximum preference a bidder may be
awarded pursuant to this bill and any other
provision of law shall be 15%.
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(2) The combined cost of preferences granted
pursuant to this article and any other provision
of law shall not exceed $100,000.
2. Directs the Department of General Services (DGS) to
establish a process to verify that a bidder meets the
criteria for the 5% preference.
3. 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.
4. Defines "refurbished electronics" as any electronic
device that the manufacturer has tested and returned to
a condition that meets factory specifications for the
device, has repackaged, and has labeled as refurbished.
Background
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.
Comments
According to the author's office, the United States
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.
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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's office notes that, to the extent that
refurbished 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, new
contract bid preference would have unknown, but likely
significant annual General Fund or special fund costs to
the extent contracts are awarded to other than the lowest
bidder due to the preference.
Significant General Fund or special fund costs one time
to establish specifications for refurbished electronics.
Significant General Fund or special fund costs ongoing to
manage a more complex contract process.
SUPPORT : (Verified 5/25/12)
Global Green, Inc. (source)
California National Organization for Women
Californians Against Waste
ecoATM, Inc.
Planning and Conservation League
Several individuals
ARGUMENTS IN SUPPORT : 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.
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DLW:mw 5/24/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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