Wolk Bill to Solve Problem in E-Waste Becomes Law

Governor signs Wolk bill to solve problem in e-waste law

Legislation will streamline payment for proper disposal of electronic equipment

The Governor signed Assembly Bill 575 by Assemblywoman Lois Wolk (D-Davis) to clarify California’s electronic recycling law Monday.

I’m thankful the Governor recognized AB 575 as common sense legislation,” said Assemblywoman Wolk. “The bill makes California’s recently enacted Electronic Waste Recycling program work better for business and the State. It’s a win for everyone, which is why it received such bipartisan support and moved so smoothly through the Legislature.”

Under current electronic recycling law, businesses and consumers who purchase computer monitors, televisions and other video display devices must pay an “advanced recovery fee” to offset the cost of properly disposing of the device at the end of its useful life. The amount of the fee ranges from $6 to $10, depending on the size of the screen, and is collected by the retailer at the time of the purchase. If a business wants to lease equipment, however, it often works with a business equipment vendor that helps the business decide what they want to lease and from whom—and also helps the business to choose a financer.

Under current law, it is this financing entity that is obligated to collect the advanced recovery fee from the business leasing the equipment. The vendor cannot pay the State directly—though the financer never handles the equipment and must rely on information provided by the vendor to determine the fee.

AB 575 solves implementation problems associated with e-waste law,” said Wolk. “It does not change the scope of electronic products or purchases to which recovery fees are applied, or the amount of the fees. The bill just streamlines the process by enabling the best suited party, the vendor, to both calculate and directly pay fees in commercial leasing transactions.”

This legislation makes doing business in California more streamlined while bringing more revenue to the State,” said Dennis Brown, vice president of state government relations for the Equipment Leasing Association, the bill’s sponsor. “The problem with the Electronic Waste Recycling Act was that is was written solely on a consumer retail model, for people who have retail stores, inventories of equipment, and shelves of merchandise. Equipment lease financing companies never see the equipment, and invoices don’t always tell us if equipment has a screen, let alone its size… which we need to know to determine fees. It made it difficult, to say the least. This legislation has taken a lot of the mystery out of leasing equipment through vendors.”

AB 575 was an urgency bill, and therefore went into effect immediately upon the Governor’s signature. The bill’s supporters include the American Electronics Association, Bank of America, California Manufacturer and Technology Association, Apple Computer, CIT Technologies Corporation, Hewlett Packard, Landmark Financial, La Salle National Leasing, US Bankcorp Equipment Finance, and Wells Fargo Financial Leasing.