Senate Passes Wolk Solution to E-Waste Law Problem

Senate votes unanimously to support legislation, which now moves to Governor.

Legislation by Assemblywoman Lois Wolk (D-Davis) to solve a problem in E-waste law was passed by the Senate with a unanimous vote late last week.

AB 575 makes California’s recently enacted electronic waste recycling program work better for business, particularly small businesses that choose to lease rather than buy their electronic office equipment,” said Assemblywoman Wolk. “The bill solves a problem with the current e-waste law by recognizing the role that ‘vendors’ play in arranging commercial leases, and by allowing vendors to pay the appropriate advanced recovery fees on behalf of the financing entity who otherwise would have to pay directly.”

Under current e-waste 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.

However, we hit a snag when current law is applied in a commercial leasing environment,” said Wolk. “Because of the nature of lease transactions, financing entities are treated as a retailer and are obligated to collect advanced recovery fees on the equipment subject to the lease. The problem is that financing entities are not retailers. They do not maintain inventory of the products they lease, and do not even take physical possession of those products until the end of the lease, if at all.”



Because the financing entity does not play a hands-on role in providing the products for which they offer financing, it is difficult or impossible for them to do the retailer’s job of collecting the appropriate advanced recovery fee,” concluded Wolk. “In a lease transaction, the retailer’s job is often performed by what the leasing industry commonly refers to as a “vendor.”

The bill does not change the existing e-waste law, including the scope of electronic products or purchases to which the advanced recovery fee is applied, or the amount of the applicable fee. It just solves implementation problems arising from a leasing situation.

Assembly Bill 575, which would amend California’s “e-waste” Laws, now moves to the Governor, who has 30 days to sign the bill. The bill’s supporters include the sponsor, Equipment Leasing Association, American Electronics Association, Bank of America, California Manufacturer and Technology Association, Apple Computer, CIT Technologies Corporation, Hewlett Packard, Landmark Financial Organization La Salle National Leasing, US Bankcorp Equipment Finance, Wells Fargo Financial Leasing, Inc.