California Gov. Gray Davis vetoed a bill Sept. 30 that would have set a mandatory $10 recycling fee—the first in the nation—on each of millions of new televisions and computers sold in California.

The recycling fee, which would have begun in 2004, was expected to generate up to $240 million a year for grants to cities, counties, materials handlers, nonprofit groups, and electronics manufacturers to encourage consumers to recycle their products.

Millions of computers and televisions are piling up in California schools, offices, and homes because the state banned them...

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