Bill Text: CA AB549 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Recycling: electronic waste.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-25 - Chaptered by Secretary of State - Chapter 523, Statutes of 2012. [AB549 Detail]

Download: California-2011-AB549-Amended.html

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BILL NUMBER: AB 549	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 31, 2012
	AMENDED IN SENATE  MAY 2, 2012

INTRODUCED BY   Assembly  Member   Carter
  Members   Carter   and Wieckowski


                        FEBRUARY 16, 2011

   An act to amend Sections 42461, 42463, and 42476 of, to add
Section 42461.5 to, and to repeal and add Section 42479 of, the
Public Resources Code, relating to recycling.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 549, as amended, Carter. Recycling: electronic waste.
   (1) Existing law, the Electronic Waste Recycling Act of 2003
(act), requires a retailer selling a covered electronic device in
this state to collect a covered electronic waste recycling fee from
the consumer, as specified. These fees are deposited in the
Electronic Waste Recovery and Recycling Account, and the Department
of Resources Recycling and Recovery  (CalRecycle) 
 (department)  is continuously appropriated the money in the
account to, among other things, make electronic waste recovery
payments and recycling payments.  CalRecycle  
The   department  is authorized to make these payments
only if certain conditions are met. Existing law requires the act to
be enforced pursuant to the hazardous waste control laws, a violation
of which, including the making of a false statement or
representation in a document, is a crime.
   This bill would additionally require, as a condition of making
these payments, that the covered electronic waste is demonstrated to
have been generated by a person who used the covered electronic
device while located in this state. The bill would specify that
covered electronic waste generated outside of the state and
subsequently brought into the state is not eligible for payment and
would require  CalRecycle   the department 
to establish documentation requirements necessary to demonstrate
that covered electronic waste was generated in the state and eligible
for payment. Since a false statement or representation in that
document would be a crime, the bill would impose a state-mandated
local program.
   (2) The act requires  CalRecycle   the
department  , for covered electronic waste collected for
recycling on and after January 1, 2005, to make those electronic
waste recycling and recovery payments for the collection and
recycling of covered electronic waste to an authorized collector or
covered electronic waste recycler, respectively, upon receipt of a
completed and verified invoice submitted to  CalRecycle
  the department  by the authorized collector or
recycler in the form and manner determined by  CalRecycle
  the department  .
   This bill would instead require  CalRecycle  
the department  to make those electronic waste recycling and
recovery payments for the collection and recycling of covered e-waste
to an authorized collector or covered e-waste recycler,
respectively, upon completion of  CalRecyle's  
the department's  review of a payment claim, submitted to
 CalRecyle   the department  in the form
and manner determined by  CalRecycle   the
department  . The bill would also authorize  CalRecycle
  the department  to conduct a selective audit of
authorized collectors, covered e-waste recyclers, or manufacturers
receiving payments from  CalRecycle   the
department  to determine whether electronic waste recovery or
recycling payments or payments to manufacturers are being made by
 CalRecycle   the department  according to
the requirements of the act and the regulations adopted pursuant to
that act, and would prescribe procedures for the appeal of 
CalRecycle's   the department's  denial or
adjustment of a payment claim by a covered e-waste recycler that is
dissatisfied with  CalRecycle's   the department'
s  action in that regard.
   The bill would also make conforming changes with reference to
 CalRecycle   the department  .
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 42461 of the Public Resources Code is amended
to read:
   42461.  The Legislature finds and declares all of the following:
   (a) The purpose of this chapter is to enact a comprehensive and
innovative system for the reuse, recycling, and proper and legal
disposal of covered electronic devices, and to provide incentives to
design electronic devices that are less toxic, more recyclable, and
that use recycled materials.
   (b) It is the further purpose of this chapter to enact a law that
establishes a program that is cost free and convenient for consumers
and the public to return, recycle, and ensure the safe and
environmentally-sound disposal of covered electronic devices.
   (c) It is the intent of the Legislature that the cost associated
with the handling, recycling, and disposal of covered electronic
devices is the responsibility of the producers and consumers of
covered electronic devices, and not local government or their service
providers, state government, or taxpayers.
   (d) In order to reduce the likelihood of illegal disposal of these
hazardous materials, it is the intent of this chapter to ensure that
any cost associated with the proper management of covered electronic
devices be internalized by the producers and consumers of covered
electronic devices at or before the point of purchase, and not at the
point of discard.
   (e) Manufacturers of covered electronic devices, in working to
achieve the goals and objectives of this chapter, should have the
flexibility to partner with each other and with those public sector
entities and business enterprises that currently provide collection
and processing services to develop and promote a safe and effective
covered electronic device recycling system for California.
   (f) The producers of electronic products, components, and devices
should reduce and, to the extent feasible, ultimately phase out the
use of hazardous materials in those products.
   (g) Electronic products, components, and devices, to the greatest
extent feasible, should be designed for extended life, repair, and
reuse.
   (h) The purpose of the  Hazardous  Electronic
Waste Recycling Act  of 2003  is to provide sufficient
funding for the safe, cost-free, and convenient collection and
recycling of 100 percent of the covered electronic waste initially
discarded in the state, to eliminate electronic waste stockpiles and
legacy devices by December 31, 2007, to end the illegal disposal of
covered electronic devices, to establish manufacturer responsibility
for reporting to the board on the manufacturer's efforts to phase out
hazardous materials in electronic devices and increase the use of
recycled materials, and to ensure that electronic devices sold in the
state do not violate the regulations adopted by the Department of
Toxic Substances Control pursuant to Section 25214.10 of the Health
and Safety Code.
  SEC. 2.  Section 42461.5 is added to the Public Resources Code, to
read:
   42461.5.  (a) The Legislature finds and declares that the changes
made by this act of the 2011-12 Regular Session of the Legislature to
subdivision (h) of Section 42461, subdivision (f) of Section 42476,
and subdivision (a) of Section 42479, clarify and strengthen the
enforcement provisions of the act, so as to implement the Legislature'
s intent when this chapter was first enacted on January 1, 2003.
   (b) The changes specified in subdivision (a) shall not be
interpreted as affecting an administrative or legal enforcement
action that was filed before, or is pending on, January 1, 2013, and
shall not prevent the taking of a legal or administrative enforcement
action that may be brought on or after January 1, 2013, with regard
to any actions taken, or claims filed, before that date.
  SEC. 3.  Section 42463 of the Public Resources Code is amended to
read:
   42463.  For the purposes of this chapter, the following terms have
the following meanings, unless the context clearly requires
otherwise:
   (a) "Account" means the Electronic Waste Recovery and Recycling
Account created in the Integrated Waste Management Fund under Section
42476.
   (b) "Authorized collector" means any of the following:
   (1) A city, county, or district that collects covered electronic
devices.
   (2) A person or entity that is required or authorized by a city,
county, or district to collect covered electronic devices pursuant to
the terms of a contract, license, permit, or other written
authorization.
   (3) A nonprofit organization that collects or accepts covered
electronic devices.
   (4) A manufacturer or agent of the manufacturer that collects,
consolidates, and transports covered electronic devices for recycling
from consumers, businesses, institutions, and other generators.
   (5) An entity that collects, handles, consolidates, and transports
covered electronic devices and has filed applicable notifications
with the department pursuant to Chapter 23 (commencing with Section
66273.1) of Division 4.5 of Title 22 of the California Code of
Regulations. 
   (c) "CalRecycle" means the Department of Resources Recycling and
Recovery.  
   (d) 
    (c)  "Consumer" means a person who purchases a new or
refurbished covered electronic device in a transaction that is a
retail sale or in a transaction to which a use tax applies pursuant
to Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code. 
   (e) 
    (   d)  Notwithstanding Section 40118,
"department" means the Department of Toxic Substances Control.

   (f) 
    (e)  (1) Except as provided in paragraph (2), "covered
electronic device" means a video display device containing a screen
greater than four inches, measured diagonally, that is identified in
the regulations adopted by the department pursuant to subdivision (b)
of Section 25214.10.1 of the Health and Safety Code.
   (2) "Covered electronic device" does not include any of the
following:
   (A) A video display device that is a part of a motor vehicle, as
defined in Section 415 of the Vehicle Code, or any component part of
a motor vehicle assembled by, or for, a vehicle manufacturer or
franchised dealer, including replacement parts for use in a motor
vehicle.
   (B) A video display device that is contained within, or a part of
a piece of industrial, commercial, or medical equipment, including
monitoring or control equipment.
   (C) A video display device that is contained within a clothes
washer, clothes dryer, refrigerator, refrigerator and freezer,
microwave oven, conventional oven or range, dishwasher, room
air-conditioner, dehumidifier, or air purifier.
   (D) An electronic device, on and after the date that it ceases to
be a covered electronic device under subdivision (e) of Section
25214.10.1 of the Health and Safety Code. 
   (g) 
    (f)  "Covered electronic waste" or "covered e-waste"
means a covered electronic device that is discarded. 
   (h) 
    (g)  "Covered electronic waste recycling fee" or
"covered e-waste recycling fee" means the fee imposed pursuant to
Article 3 (commencing with Section 42464). 
   (i) 
    (   h)  "Covered electronic waste recycler" or
"covered e-waste recycler" means any of the following:
   (1) A person who engages in the manual or mechanical separation of
covered electronic devices to recover components and commodities
contained therein for the purpose of reuse or recycling.
   (2) A person who changes the physical or chemical composition of a
covered electronic device, in accordance with the requirements of
Chapter 6.5 (commencing with Section 25100) of Division 20 of the
Health and Safety Code and the regulations adopted pursuant to that
chapter, by deconstructing, size reduction, crushing, cutting,
sawing, compacting, shredding, or refining for purposes of
segregating components, for purposes of recovering or recycling those
components, and who arranges for the transport of those components
to an end user.
   (3) A manufacturer who meets any conditions established by this
chapter and Chapter 6.5 (commencing with Section 25100) of Division
20 of the Health and Safety Code for the collection or recycling of
covered electronic waste. 
   (j) 
    (   i)  "Discarded" has the same meaning as
defined in subdivision (b) of Section 25124 of the Health and Safety
Code. 
   (k) 
    (   j)  "Electronic waste recovery payment"
means an amount established and paid by  CalRecycle 
 the Department of Resources Recycling and Recovery 
pursuant to Section 42477. 
   (l) 
    (   k)  "Electronic waste recycling payment"
means an amount established and paid by  CalRecycle 
 the Department of Resources Recycling and Recovery 
pursuant to Section 42478. 
   (m) 
    (   l)  "Hazardous material" has the same
meaning as defined in Section 25501 of the Health and Safety Code.

   (n)
    (   m)  "Manufacturer" means either of the
following:
   (1) A person who manufactures a covered electronic device sold in
this state.
   (2) A person who sells a covered electronic device in this state
under that person's brand name. 
   (o) 
    (   n)  "Person" means an individual, trust
firm, joint stock company, business concern, and corporation,
including, but not limited to, a government corporation, partnership,
limited liability company, and association. Notwithstanding Section
40170, "person" also includes a city, county, city and county,
district, commission, the state or a department, agency, or political
subdivision thereof, an interstate body, and the United States and
its agencies and instrumentalities to the extent permitted by law.

   (p) 
    (   o)  "Recycling" has the same meaning as
defined in subdivision (a) of Section 25121.1 of the Health and
Safety Code. 
   (q) 
    (   p)  "Refurbished," when used to describe a
covered electronic device, means a 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.

   (r) 
    (   q)  "Retailer" means a person who makes a
retail sale of a new or refurbished covered electronic device.
"Retailer" includes a manufacturer of a covered electronic device who
sells that covered electronic device directly to a consumer through
any means, including, but not limited to, a transaction conducted
through a sales outlet, catalog, or the Internet, or any other
similar electronic means. 
   (s) 
    (   r)  (1) "Retail sale" has the same meaning
as defined under Section 6007 of the Revenue and Taxation Code.
   (2) "Retail sale" does not include the sale of a covered
electronic device that is temporarily stored or used in California
for the sole purpose of preparing the covered electronic device for
use thereafter solely outside the state, and that is subsequently
transported outside the state and thereafter used solely outside the
state. 
   (t) 
    (   s)  "Vendor" means a person that makes a
sale of a covered electronic device for the purpose of resale to a
retailer who is the lessor of the covered electronic device to a
consumer under a lease that is a continuing sale and purchase
pursuant to Part 1 (commencing with Section 6001) of Division 2 of
the Revenue and Taxation Code. 
   (u) 
    (t   )  "Video display device" means an
electronic device with an output surface that displays, or is capable
of displaying, moving graphical images or a visual representation of
image sequences or pictures, showing a number of quickly changing
images on a screen in fast succession to create the illusion of
motion, including, if applicable, a device that is an integral part
of the display, in that it cannot be easily removed from the display
by the consumer, that produces the moving image on the screen. A
video display device may use, but is not limited to, a cathode ray
tube (CRT), liquid crystal display (LCD), gas plasma, digital light
processing, or other image projection technology.
  SEC. 4.  Section 42476 of the Public Resources Code is amended to
read:
   42476.  (a) The Electronic Waste Recovery and Recycling Account is
hereby established in the Integrated Waste Management Fund. All fees
collected pursuant to this chapter shall be deposited in the
account. Notwithstanding Section 13340 of the Government Code, the
funds in the account are hereby continuously appropriated, without
regard to fiscal year, for the following purposes:
   (1) To pay refunds of the covered electronic waste recycling fee
imposed under Section 42464.
   (2) To make electronic waste recovery payments to an authorized
collector of covered electronic waste pursuant to Section 42479.
   (3) To make electronic waste recycling payments to covered
electronic waste recyclers pursuant to Section 42479.
   (4) To make payments to manufacturers pursuant to subdivision (h).

   (b) (1) The money in the account may be expended for the following
purposes only upon appropriation by the Legislature in the annual
Budget Act:
   (A) For the administration of this chapter by  CalRecycle
  the Department   of Resources Recycling and
Recovery  and the department.
   (B) To reimburse the State Board of Equalization for its
administrative costs of registering, collecting, making refunds, and
auditing retailers and consumers in connection with the covered
electronic waste recycling fee imposed under Section 42464.
   (C) To provide funding to the department to implement and enforce
Chapter 6.5 (commencing with Section 25100) of Division 20 of the
Health and Safety Code, as that chapter relates to covered electronic
devices, and any regulations adopted by the department pursuant to
that chapter.
   (D) To establish the public information program specified in
subdivision (d).
   (2) Any fines or penalties collected pursuant to this chapter
shall be deposited in the Electronic Waste Penalty Subaccount, which
is hereby established in the account. The funds in the Electronic
Waste Penalty Subaccount may be expended by  CalRecycle
  the Department   of Resources Recycling and
Recovery  or the department only upon appropriation by the
Legislature.
   (c) Notwithstanding Section 16475 of the Government Code, any
interest earned upon funds in the Electronic Waste Recovery and
Recycling Account shall be deposited in that account for expenditure
pursuant to this chapter.
   (d) Not more than 1 percent of the funds annually deposited in the
Electronic Waste Recovery and Recycling Account shall be expended
for the purposes of establishing the public information program to
educate the public in the hazards of improper covered electronic
device storage and disposal and on the opportunities to recycle
covered electronic devices.
   (e)  CalRecycle   The Department of Resources
Recycling and Recovery  shall adopt regulations specifying
cancellation methods for the recovery, processing, or recycling of
covered electronic waste.
   (f)  CalRecycle   The Department of Resources
Recycling and Recovery  may pay an electronic waste recycling
payment or electronic waste recovery payment only for covered
electronic waste that meets all of the following conditions:
   (1) (A) The covered electronic waste is demonstrated to have been
generated by a person who used the covered electronic device while
located in this state.
   (B) Covered electronic waste generated outside of the state and
subsequently brought into the state is not eligible for payment.
   (C)  CalRecycle   The Department of Resources
Recycling and Recovery  shall establish documentation
requirements for purposes of this paragraph that are necessary to
demonstrate that the covered electronic waste was generated in the
state and eligible for payment.
   (2) The covered electronic waste, including any residuals from the
processing of the waste, is handled in compliance with all
applicable statutes and regulations.
   (3) The manufacturer or the authorized collector or recycler of
the electronic waste provides a cost free and convenient opportunity
to recycle electronic waste, in accordance with the legislative
intent specified in subdivision (b) of Section 42461.
   (4) If the covered electronic waste is processed, the covered
electronic waste is processed in this state according to the
cancellation method authorized by  CalRecycle  
the Department of Resources Recycling and Recovery  .
   (g) The Legislature hereby declares that the state is a market
participant in the business of the recycling of covered electronic
waste for all of the following reasons:
   (1) The fee is collected from the state's consumers for covered
electronic devices sold for use in the state.
   (2) The purpose of the fee and subsequent payments is to prevent
damage to the public health and the environment from waste generated
in the state.
   (3) The recycling system funded by the fee ensures that
economically viable and sustainable markets are developed and
supported for recovered materials and components in order to conserve
resources and maximize business and employment opportunities within
the state.
   (h) (1)  CalRecycle   The Department of
Resources Recycling and Recovery  may make a payment to a
manufacturer that takes back a covered electronic device from a
consumer in this state for purposes of recycling the device at a
processing facility. The amount of the payment made by 
CalRecycle   the Department of Resources Recycling and
Recovery  shall equal the value of the covered electronic waste
recycling fee paid for that device. To qualify for a payment pursuant
to this subdivision, the manufacturer shall demonstrate both of the
following to  CalRecycle   the Department of
Resources Recycling and Recovery  :
   (A) The covered electronic device for which payment is claimed was
used in this state.
   (B) The covered electronic waste for which a payment is claimed,
including any residuals from the processing of the waste, has been,
and will be, handled in compliance with all applicable statutes and
regulations.
   (2) A covered electronic device for which a payment is made under
this subdivision is not eligible for an electronic waste recovery
payment or an electronic waste recycling payment under Section 42479.

  SEC. 5.  Section 42479 of the Public Resources Code is repealed.
  SEC. 6.  Section 42479 is added to the Public Resources Code, to
read:
   42479.  (a) (1) For covered electronic waste collected for
recycling on and after January 1, 2005,  CalRecycle 
 the Department of Resources Recycling and Recovery  shall
make electronic waste recovery payments and electronic waste
recycling payments for the collection and recycling of covered
e-waste to an authorized collector or covered e-waste recycler,
respectively, upon completion of  CalRecycle's review
  the review by the Department of Resources Recycling
and Recovery  of a payment claim submitted to 
CalRecycle   the Department of Resources Recycling and
Recovery  by the authorized collector or e-waste recycler in the
form and manner determined by  CalRecycle   the
Department of Resources Recycling and Recovery  . 
CalRecycle   The Department of Resources Recycling and
Recovery  may examine a payment claim for a period of not more
than 90 days from the date of receipt of the payment claim to
validate the claim's completeness, accuracy, truthfulness, and
compliance with applicable laws and regulations. All of the following
shall be considered official records for purposes of Section 1280 of
the Evidence Code:
   (A) The results of a payment claim review or subsequent payment
claim audit.
   (B) Written information compiled by  CalRecycle 
 the Department of Resources Recycling and Recovery  during
a claim review or subsequent claim audit.
   (2) To the extent authorized by Section 42477, a covered e-waste
recycler shall make the electronic waste recovery payments to an
authorized collector upon receipt of a completed and verified invoice
submitted to the recycler by the authorized collector in the form
and manner determined by the  CalRecycle  
Department of Resources Recycling and Recovery  .
   (b) A covered e-waste recycler is eligible for a payment pursuant
to this section only if the covered e-waste recycler meets all of the
following requirements:
   (1) The covered e-waste recycler is in compliance with applicable
requirements of Article 6 (commencing with Section 66273.70) of
Chapter 23 of Division 4.5 of Title 22 of the California Code of
Regulations.
   (2) The covered e-waste recycler demonstrates to 
CalRecycle   the Department of Resources Recycling and
Recovery  that a facility utilized by the covered e-waste
recycler for the handling, processing, refurbishment, or recycling of
covered electronic devices meets all of the following standards:
   (A) The facility has been inspected by the department within the
past 12 months and had been found to be operating in conformance with
all applicable laws, regulations, and ordinances.
   (B) The facility is accessible during normal business hours for
unannounced inspections by state or local agencies.
   (C) The facility has health and safety, employee training, and
environmental compliance plans and certifies compliance with the
plans.
   (D) The facility meets or exceeds the standards specified in
Chapter 1 (commencing with Section 1171) of Part 4 of Division 2 of,
Division 4 (commencing with Section 3200) of, and Division 5
(commencing with Section 6300) of, the Labor Code or, if all or part
of the work is to be performed in another state, the equivalent
requirements of that state.
   (c)  CalRecycle   The Department of Resources
Recycling and Recovery  may conduct a selective audit of
authorized collectors, covered e-waste recyclers, or manufacturers
receiving payments from  CalRecycle   the
Department of Resources Recycling and Recovery  to determine
whether electronic waste recovery payments, electronic waste
recycling payments, or payments to manufacturers are being paid by
 CalRecycle   the Department of Resources
Recycling and Recovery  according to the requirements of this
chapter and the regulations adopted pursuant to this chapter.
 CalRecycle   The Department of Resources
Recycling and Recovery  may collect and recover from authorized
collectors, covered e-waste recyclers, or manufacturers, with
interest, any moneys improperly paid.
   (d) (1) A covered e-waste recycler that is dissatisfied with
 CalRecycle's   the Department of Resources
Recycling and Recovery's  denial or adjustment of a payment
claim may appeal that action by filing a written appeal at the
offices of  CalRecycle   the Department of
Resources Recycling and Recovery  within 30 days of the date of
the notice denying or adjusting the claim.
   (2) An appeal shall contain the covered e-waste recycler's name
and identification number from its proof of approval, the month and
year in question, a copy of the payment claim and the notice denying
the claim, a  state   statement  of the
facts and the law forming the basis for appeal, a description of why
 CalRecyle's   the  actions  of the
Department of Resources Recycling and Recovery  were in error,
and any other documentation that supports the appeal.
   (3) An appeal that is received by  CalRecycle 
 the Department of Resources Recycling and Recovery  after
30 days from the date of the notice denying or adjusting the claim,
or that lacks the required content, shall be denied by 
CalRecyle   the Department of Resources Recycling and
Recovery  without a hearing or further consideration of the
appeal.
   (4) The hearing shall be before  CalRecycle's director
  the Director of Resources Recycling and Recovery 
or  his or her  designee, who shall issue a written
decision stating the factual and legal basis for the decision.
  SEC. 7.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.