BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2666
                                                                  Page  1

          Date of Hearing:   April 7, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                  AB 2666 (Daly) - As Introduced:  February 21, 2014
           
          SUBJECT  :   Recycling:  electronic waste

           SUMMARY  :   Exempts the United States (US) and its agencies and  
          instrumentalities from the requirements of the Electronic Waste  
          Recycling Act (Act).  

           EXISTING LAW  :  
           
          1)Establishes the Act to provide a cost-free and convenient  
            means for consumers to return, recycle, and ensure the safe  
            and environmentally-sound disposal of covered electronic  
            devices (CEDs).  A CED is a video display device containing a  
            screen greater than four inches, measured diagonally.  CEDs  
            that are discarded are considered covered electronic waste  
            (CEW).

          2)Requires a consumer to pay a CEW recycling fee upon the  
            purchase of a new or refurbished CED at the time of the retail  
            sale.  The CEW recycling fee ranges from $3 to $5, depending  
            on the screen size, and is used primarily to pay CEW  
            collectors and recyclers.

          3)Provides for payments to CEW collectors and recyclers for  
            costs associated with collecting and recycling CEW that has  
            been generated in the state.  

           FISCAL EFFECT :   Unknown

           COMMENTS  :   In 2001, the Department of Toxic Substances Control  
          (DTSC) determined that cathode ray tube (CRT) screens are  
          hazardous, which means that they must be managed as hazardous  
          waste when disposed.  In response to this determination, the  
          Legislature enacted SB 20 and SB 50 (Sher) in 2003, which  
          established the Act to create a cost-free and convenient way for  
          consumers to return, recycle, and ensure the safe and  
          environmentally-sound disposal of hazardous video display  
          devices.  Since January 2005, more than 965 million pounds  
          (approximately 75 percent) of CEW have been recycled as a result  
          of the Act. The Act has created jobs and fostered California's  








                                                                  AB 2666
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          electronic waste and recycling infrastructure with approximately  
          600 approved CEW collectors and 60 approved recyclers throughout  
          the state. The state's CEW infrastructure also recovers  
          substantial quantities of miscellaneous electronic waste not  
          covered by the CEW payment system.  

          In order to fund the Act, consumers are required to pay a $3 to  
          $5 fee, based on screen size, at the time of purchasing a CED.   
          While the US government is immune from taxation under the  
          Supremacy Clause of the US Constitution, the federal Resource  
          Conservation and Recovery Act (RCRA) specifies that US  
          government entities are required to pay "regulatory fees," as  
          determined by federal law.  In May 2001, the US Government  
          Accountability Office (GAO) issued a decision that California's  
          e-waste fee is a tax under federal law; therefore, US government  
          entities are not subject to the fee.  This bill aligns  
          California statute with federal law as it relates to collection  
          of the e-waste fee.  

           Suggested amendment  :  As drafted, this bill changes all  
          references to CalRecycle in the bill from "the Department of  
          Resources Recycling and Recovery" to "CalRecycle."  CalRecycle  
          is also referred to as "board" and as "department" throughout  
          the Public Resources Code.  In order to minimize confusion,  the  
          committee may wish to amend the bill  to remove references to  
          "CalRecycle."    

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CalTax (sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092