Bill Text: CA SB1215 | 2021-2022 | Regular Session | Amended

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

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Bill Title: Electronic Waste Recycling Act of 2003: covered battery-embedded products.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2022-09-16 - Chaptered by Secretary of State. Chapter 370, Statutes of 2022. [SB1215 Detail]

Download: California-2021-SB1215-Amended.html

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Amended  IN  Assembly  June 20, 2022

Amended  IN  Assembly  June 08, 2022

Amended  IN  Assembly  June 02, 2022

Amended  IN  Senate  April 21, 2022

Amended  IN  Senate  March 29, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1215

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Introduced by Senator Newman
(Principal coauthor: Assembly Member Irwin)
(Coauthors: Senators Archuleta, Becker, Eggman, Wieckowski, and Wiener)
(Coauthors: Assembly Members Lee, Mullin, Petrie-Norris, Stone, Ting, and Wicks)

February 17, 2022

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An act to add Article 5 (commencing with Section 42457) to Chapter 8.4 of, Article 7 (commencing with Section 42499.5) to Chapter 8.6 of, and Chapter 7.5 (commencing with Section 42420) to, and to repeal Chapter 8.4 (commencing with Section 42451) and Chapter 8.6 (commencing with Section 42490) of, Part 3 of Division 30 of amend Sections 25214.10 and 25214.10.1 of the Health and Safety Code, and to amend Sections 41516, 42461, 42463, 42464, 42464.2, 42464.4, 42464.6, 42464.8, 42465, 42465.1, 42465.2, 42465.3, 42474, 42474.5, 42475, 42475.2, 42475.3, 42475.4, 42476, 42476.5, 42477, 42478, 42479, 42485 of, to amend the heading of Article 3 (commencing with Section 42464) of Chapter 8.5 of Part 3 of Division 30 of, and to add Sections 42466.1, 42466.2, and 42467 to, the Public Resources Code, relating to recycling. recycling, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

SB 1215, as amended, Newman. Responsible Battery Recycling Act of 2022. Electronic Waste Recycling Act of 2003: covered battery-embedded products.

(1) The Electronic Waste Recycling Act of 2003 (act) requires a retailer selling a covered electronic device in this state to collect from a consumer at the time of retail sale a covered electronic waste recycling fee, as specified. The act defines “covered electronic device” to mean a video display device containing a screen greater than 4 inches, measured diagonally, that is identified in the regulations adopted by the Department of Toxic Substances Control (DTSC), subject to certain exclusions. The act requires all fees collected pursuant to the act to be deposited in the Electronic Waste Recovery and Recycling Account, and outlines certain other requirements related to the establishment, adjustment, and administration of the fee. Moneys in the account are continuously appropriated for specified purposes, including, but not limited to, paying covered electronic waste recycling fee refunds and making electronic waste recovery and recycling payments. Moneys in the account may be expended, upon appropriation by the Legislature in the annual Budget Act, for other specified purposes, including the administration of the act by the Department of Resources Recycling and Recovery (CalRecycle) and DTSC and to provide funding to DTSC to implement and enforce the hazardous waste control laws as they relate to covered electronic devices.

Existing law incorporates the requirements and other provisions of the act by reference as requirements and provisions of the hazardous waste control laws. The act also expressly authorizes DTSC to enforce the act, and all regulations adopted pursuant to the act, through the hazardous waste control laws. A violation of the hazardous waste control laws is a crime.

This bill would, among other things, expand the definition of “covered electronic device” to include a “covered battery-embedded product,” as defined, thereby expanding the scope of the act to include covered battery-embedded products, as provided. The bill would require a consumer, on and after January 1, 2026, to pay a covered electronic waste recycling fee of an undetermined amount upon the purchase of a new or refurbished covered battery-embedded product. The bill would authorize, beginning on August 1, 2028, CalRecycle, in collaboration with DTSC, to establish more than one covered electronic waste recycling fee for covered battery-embedded products based on categories of those products. The bill would require CalRecycle, on or before August 1, 2028, and thereafter as specified, in collaboration with DTSC, to review, at a public hearing, the covered waste recycling fee applicable to covered battery-embedded products and to make adjustments to the fee to ensure that there are sufficient revenues in the Electronic Waste Recovery and Recycling Account to fund the covered electronic waste recycling program established pursuant to the act. The moneys from that charge would be deposited in the Electronic Waste Recovery and Recycling Account, a continuously appropriated account, thereby making an appropriation. By expanding the scope of covered electronic devices subject to the act, the bill would expand the scope of a crime, thereby imposing a state-mandated local program.

The act imposes certain obligations on a manufacturer of a covered electronic device sold in the state, including, but not limited to, requiring a manufacturer to submit a report to CalRecycle, as provided, and to make information available to consumers that describes where and how to return, recycle, and dispose of the covered electronic device. The act defines “manufacturer” as either a person who manufacturers a covered electronic device sold in the state or a person who sells a covered electronic device in the state under that person’s brand name.

This bill would revise and expand the definition of “manufacturer” for purposes of the act and would therefore extend the aforementioned obligations to these persons. The act would require a manufacturer of a covered battery-embedded product to also submit a report to CalRecycle, as provided, and to make certain information available to consumers. The bill would provide that any information submitted to CalRecycle that is proprietary in nature or a trade secret shall be protected under state laws and regulations governing that information. The bill would require a manufacturer of a covered electronic device to maintain and keep accessible for a minimum of 3 years all records required to be kept or submitted pursuant to the act and, upon request, provide those records to CalRecycle. This bill would require all reports and records provided to CalRecycle pursuant to the act to be provided under penalty of perjury. By expanding the scope of persons subject to the act’s requirements and by expanding the scope of the crime of perjury, the bill would expand the scope of a crime, thereby imposing a state-mandated local program.

The act prohibits a person from selling a new or refurbished covered electronic device to a consumer if CalRecycle or DTSC determines that the manufacturer of that covered electronic device is not in compliance with the act, as provided. The act prohibits a person from selling or offering for sale in this state a new or refurbished covered electronic device unless the device is labeled with the name of the manufacturer or the manufacturer’s brand label, so that it is readily visible.

This bill, by expanding the definition of “covered electronic device,” would expand the sales prohibition for noncompliance to covered battery-embedded products. The bill would also prohibit a person, on or after January 1, 2026, from selling or offering for sale in the state a new or refurbished covered battery-embedded product unless the product is labeled with the name of the manufacturer or the manufacturer’s brand label so that it is readily visible. The bill would also require a new or refurbished covered battery-embedded product to be labeled with information identifying the chemistry of the embedded product. By expanding the scope of the sales prohibitions to include covered battery-embedded products, the bill would expand the scope of a crime, thereby imposing a state-mandated local program.

The bill would also replace references to the State Board of Equalization with the California Department of Tax and Fee Administration, and make other nonsubstantive changes.

(2) Existing law, as part of the hazardous waste control laws, requires the department to adopt regulations to identify electronic devices, as defined, that the department determines are presumed to be, when discarded, a hazardous waste. Existing law requires a manufacturer of an electronic device that is identified in those regulations to send to any retailer that sells that electronic device a notice that identifies the electronic device and informs the retailer that the electronic device is subject to the covered electronic waste recycling fee. The act requires a manufacturer of a covered electronic device to comply with these hazardous waste control law notification requirements. Existing law defines the term “manufacturer” for the purposes of these provisions in the same way as the act.

This bill, for purposes of the aforementioned notification requirement, would specify that the requirement applies only to video display devices, as defined by the act, and would expressly exclude from the notification requirement a covered battery-embedded product, as defined by the act. The bill would expand the definition of “manufacturer” in the act and thereby would make those additional persons subject to the notice requirement. By expanding the scope of a crime under the hazardous waste control laws, the bill would impose a state-mandated local program. The bill would also replace references to the State Board of Equalization with the California Department of Tax and Fee Administration, and make other nonsubstantive changes.

This bill would require instead that, as part of the act, a manufacturer of a covered battery-embedded product comply with similar notification requirements.

(3) The California Integrated Waste Management Act of 1989 requires the county or regional agency integrated waste management plan that a county or regional agency is required to submit to the board to contain a household hazardous waste element. Existing law requires that when a county or regional agency revises the county or regional integrated waste management plan and its elements, the city household hazardous waste element and county household hazardous waste element is required to identify those actions the city, county, or regional agency is taking to promote the collection, consolidation, recovery, and recycling of covered electronic waste, as defined.

This bill would, as a result of the aforementioned amendments to the Electronic Waste Recycling Act of 2003, expand the definition of covered electronic waste pursuant to the act to include a covered battery-embedded product, as defined by the Electronic Waste Recycling Act of 2003, thereby creating a state-mandated local program by imposing new duties upon local agencies.

(4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

(6) 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 specified reasons.

The Rechargeable Battery Recycling Act of 2006 requires every retailer, as defined, to have in place a system for the acceptance and collection of used rechargeable batteries for reuse, recycling, or proper disposal. The Cell Phone Recycling Act of 2004 prohibits the sale of a cell phone in this state to a consumer unless the retailer of that cell phone has in place a take-back system for the acceptance and collection of used cell phones for reuse, recycling, or proper disposal.

This bill would make the Rechargeable Battery Recycling Act of 2006 and the Cell Phone Recycling Act of 2004 inoperative as of September 30, 2026, and would repeal those acts as of January 1, 2027.

This bill would enact the Responsible Battery Recycling Act of 2022, which would require producers, as defined, either individually or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of covered batteries and covered battery-embedded products, as defined. The bill would require a producer or stewardship organization to develop, and to submit to the department and the Department of Toxic Substances Control for review and approval as specified, a stewardship plan and would prescribe the standards and elements required to be contained in a stewardship plan for covered batteries and in a stewardship plan for covered battery-embedded products. The bill would require the department, on or before January 1, 2025, and in consultation with the Department of Toxic Substances Control, to adopt regulations to implement the act. The bill would require a stewardship organization or producer to have a complete stewardship plan approved by the department no later than 18 months after the effective date of the regulations adopted by the department in order for the stewardship organization or producer to be in compliance with the act.

This bill would require a stewardship organization or producer to be audited annually, and submit a report and budget to the department, as prescribed, and would require a stewardship organization, producer, manufacturer, distributor, retailer, importer, recycler, or collection site to, among other things, provide the department and the Department of Toxic Substances Control with relevant records necessary to determine compliance with the act. The bill would require reports and records provided to the department to be provided under penalty of perjury, thereby creating a state-mandated local program by expanding the crime of perjury. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program. The bill would preempt all rules, regulations, codes, ordinances, or other laws adopted by a city, county, city and county, municipality, or a local agency on or after January 1, 2023, regarding stewardship programs for covered batteries, covered battery-embedded products, or both covered batteries and covered battery-embedded products.

This bill would require the department, on or before July 1, 2027, and each year thereafter, to post on its internet website a list of producers that are in compliance with the act, including the reported brands and names of covered batteries and covered battery-embedded products of each producer. The bill would require the department to remove from the list any producer, including its brands and covered batteries or covered battery-embedded products, that is not in compliance with the act. The bill would prohibit, on and after the date that a stewardship plan is approved by the department, a retailer or distributor from selling, distributing, offering for sale, or importing a covered battery or covered battery-embedded product in or into the state unless the producer of the covered battery or covered battery-embedded product is listed on that list as in compliance on the act, except as specified. The bill would require the department to relist on its internet website a producer, along with its brands and covered batteries or covered battery-embedded products, if the department subsequently determines that the producer is in compliance with the act.

This bill would require a stewardship organization or producer to reimburse the department and the Department of Toxic Substances Control for their respective actual and reasonable regulatory costs that are directly related to implementing and enforcing the act in relation to the stewardship organization’s or producer’s activities. The bill would require the department and the Department of Toxic Substances Control to deposit those moneys into the Covered Battery and Covered Battery-Embedded Product Recycling Fund, which the bill would establish, and would authorize the department and any other relevant state agency to expend those moneys, upon appropriation by the Legislature, to implement and enforce the act.

This bill would provide for enforcement of the act, including authorizing the department to impose an administrative civil penalty on a stewardship organization, producer, manufacturer, distributor, retailer, importer, recycler, or collection site in violation of the act not to exceed $10,000 per day, unless the violation is intentional, knowing, or reckless, then in that case not to exceed $50,000 per day. The bill would require the department to deposit those moneys into the Covered Battery and Covered Battery-Embedded Product Recycling Penalty Account, which the bill would establish in the fund, and would require the department to expend those moneys, upon appropriation by the Legislature, to implement and enforce the act.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

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.

Digest Key

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: YES  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 25214.10 of the Health and Safety Code is amended to read:

25214.10.

 (a) For purposes of this section, “electronic device” has the same meaning as a “covered electronic device,” as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463 of the Public Resources Code. “Covered electronic device” does not include a covered battery-embedded product, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463 of the Public Resources Code.

(b) The department shall adopt regulations, in accordance with this section, that prohibit an electronic device from being sold or offered for sale in this state if the electronic device is prohibited from being sold or offered for sale in the European Union on and after its date of manufacture, to the extent that Directive 2002/95/EC, adopted by the European Parliament and the Council of the European Union on January 27, 2003, and as amended thereafter by the Commission of European Communities, prohibits that sale due to the presence of certain heavy metals.

(c) The regulations adopted pursuant to subdivision (b) shall take effect January 1, 2007, or on or after the date Directive 2002/95/EC, adopted by the European Parliament and the Council of the European Union on January 27, 2003, takes effect, whichever date is later.

(d) The department shall exclude, from the regulations adopted pursuant to this section, the sale of an electronic device that contains a substance that is used to comply with the consumer, health, or safety requirements that are required by the Underwriters Laboratories, the federal government, or the state.

(e) In adopting regulations pursuant to this section, the department may shall not require the manufacture or sale of an electronic device that is different than, or otherwise not prohibited by, the European Union under Directive 2002/95/EC, adopted by the European Parliament and the Council of the European Union on January 27, 2003.

(f) (1) The department may shall not adopt any regulations pursuant to this section that impose any requirements or conditions that are in addition to, or more stringent than, the requirements and conditions expressly authorized by this section.

(2) In complying with this subdivision, the department shall use, in addition to any other information deemed relevant by the department, the published decisions of the Technical Adaptation Committee and European Union member states that interpret the requirements of Directive 2002/95/EC.

SEC. 2.

 Section 25214.10.1 of the Health and Safety Code is amended to read:

25214.10.1.

 (a) For purposes of this section, the following definitions shall apply:

(1) “Electronic device” means a video display device, as defined in subdivision (t) of Section 42463 of the Public Resources Code, with a screen size of greater than four inches.

(2) “Covered electronic device,” “manufacturer,” device” has the same meaning as a covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463 of the Public Resources Code. “Covered electronic device” does not include a covered battery-embedded product, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463 of the Public Resources Code.

(3) “Manufacturer” and “retailer” have the same meaning as those terms are defined set forth in Section 42463 of the Public Resources Code.

(b) The department shall adopt regulations that identify electronic devices that the department determines are presumed to be, when discarded, a hazardous waste pursuant to this chapter.

(c) (1) Except as provided in subdivision (e), a manufacturer of an electronic device that is identified in the regulations adopted by the department shall send a notice in accordance with the schedule specified in subparagraph (A) or (B), as applicable, of paragraph (3), to any retailer that sells that electronic device manufactured by the manufacturer. The notice shall identify the electronic device, and shall inform the retailer that the electronic device is a covered electronic device and is subject to a fee in accordance with subdivision (d).

(2) A manufacturer subject to this subdivision shall also send a copy of the notice to the State Board of Equalization. California Department of Tax and Fee Administration.

(3) The notice required by this subdivision shall be sent in accordance with the following schedule:

(A) On or before October 1, 2004, the manufacturer shall send a notice covering any electronic device manufactured by that manufacturer that is identified in the regulations adopted by the department on or before July 1, 2004, that identify the electronic devices that the department determines are presumed to be, when discarded, a hazardous waste pursuant to this chapter.

(B) On or before April 1, 2005, and on or before every April 1 of each year thereafter, the manufacturer shall send a notice covering any electronic device manufactured by that manufacturer identified in the regulations adopted by the department pursuant to subdivision (b) on or before December 31 of the prior year.

(4) If a retailer sells a refurbished covered electronic device, the manufacturer is required to comply with the notice requirement of this subdivision only if the manufacturer directly supplies the refurbished covered electronic device to the retailer.

(d) (1) Except as provided in subdivision (e), a covered electronic device that is identified in the regulations adopted, on or before July 1, 2004, by the department, that identify electronic devices that the department determines are presumed to be, when discarded, a hazardous waste pursuant to this chapter shall, on and after January 1, 2005, be subject to Chapter 8.5 (commencing with Section 42460) of Part 3 of Division 30 of the Public Resources Code, including the fee imposed pursuant to Section 42464 of the Public Resources Code.

(2) Except as provided in subdivision (e), a covered electronic device identified in the regulations adopted by the department, pursuant to subdivision (b), shall, on and after July 1 of the year subsequent to the year in which the covered electronic device is first identified in the regulations, be subject to Chapter 8.5 (commencing with Section 42460) of Part 3 of Division 30 of the Public Resources Code, including the fee imposed pursuant to Section 42464 of the Public Resources Code.

(e) (1) If the manufacturer of an electronic device that is identified in the regulations adopted by the department pursuant to subdivision (b) obtains the concurrence of the department department’s concurrence that an electronic device, when discarded, would not be a hazardous waste, in accordance with procedures set forth in Section 66260.200 of Title 22 of the California Code of Regulations, the electronic device shall cease to be a covered electronic device and shall cease to be subject to subdivisions (c) and (d) on the first day of the quarter that begins not less than 30 days after the date that the department provides the manufacturer with a written nonhazardous concurrence for the electronic device pursuant to this subdivision. A manufacturer shall notify each retailer, to which that manufacturer has sold a covered electronic device, that the device has been determined pursuant to this subdivision to be nonhazardous and is no longer subject to a covered electronic recycling fee.

(2) No later than 10 days after the date that the department issues a written nonhazardous concurrence to the manufacturer, the department shall do both of the following:

(A) Post on the department’s Web site internet website a copy of the nonhazardous concurrence, including, but not limited to, an identification and description of the electronic device to which the concurrence applies.

(B) Send a copy of the nonhazardous concurrence, including, but not limited to, an identification and description of the electronic device to which the concurrence applies, to the California Integrated Waste Management Board Department of Resources Recycling and Recovery and the State Board of Equalization. to the California Department of Tax and Fee Administration.

(f) Notwithstanding Section 42474 of the Public Resources Code, a fine or penalty shall not be assessed on a retailer who unknowingly sells, or offers for sale, in this state a covered electronic device for which the covered electronic waste recycling fee has not been collected or paid, if the failure to collect the fee was due to the failure of the State Board of Equalization California Department of Tax and Fee Administration to inform the retailer that the electronic device was subject to the fee.

SEC. 3.

 Section 41516 of the Public Resources Code is amended to read:

41516.

 (a) For purposes of this article, “covered electronic waste” has the same meaning as defined in subdivision (g) of set forth in Section 42463.

(b) On and after January 1, 2004, when a county or regional agency revises the countywide or regional integrated waste management plan and its elements pursuant to Section 41770, the city household hazardous waste element and county household hazardous waste element in the plan shall identify those actions the city, county, or regional agency is taking to promote the collection, consolidation, recovery, and recycling of covered electronic waste.

SEC. 4.

 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 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 Department of Resources Recycling and Recovery 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. 5.

 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 pursuant to 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 DTSC 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) “CDTFA” means the California Department of Tax and Fee Administration.

(c)

(e) “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.

(d)Notwithstanding Section 40118, “department” means the Department of Toxic Substances Control.

(f) (1) “Covered battery-embedded product” means a new or refurbished product containing a battery from which the battery is not intended to be removed from the product by the consumer with common household tools or is not intended to be removed from the product by the consumer without breach of the product warranty.

(2) “Covered battery-embedded product” does not include any of the following:

(A) A medical device, as defined in Section 321(h) of Title 21 of the United States Code, if the medical device is not designed and marketed for sale or resale principally to consumers for personal use.

(B) A covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g).

(C) An energy storage system, as defined in subdivision (a) of Section 2835 of the Public Utilities Code.

(3) CalRecycle may consult with other state agencies to determine if a product meets the definition of a covered battery-embedded product.

(e)

(g) (1) Except as provided in paragraph (2), “covered “Covered electronic device” means a either of the following:

(A) Except as provided in paragraph (2), a video display device containing a screen greater than four inches, measured diagonally, that is identified in the regulations adopted by the department DTSC pursuant to subdivision (b) of Section 25214.10.1 of the Health and Safety Code.

(B) Any covered battery-embedded product, as defined in subdivision (f).

(2) “Covered electronic device” device,” as defined in subparagraph (A) of paragraph (1), 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 pursuant to subdivision (e) of Section 25214.10.1 of the Health and Safety Code.

(f)

(h) “Covered electronic waste” or “covered e-waste” means a covered electronic device that is discarded.

(g)

(i) “Covered electronic waste recycling fee” or “covered e-waste recycling fee” means the fee imposed pursuant to Article 3 (commencing with Section 42464).

(h)

(j) “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.

(k) “Director” means the Director of Resources Recycling and Recovery.

(i)

(l) “Discarded” has the same meaning as defined set forth in subdivision (b) of Section 25124 of the Health and Safety Code.

(m) “DTSC” means the Department of Toxic Substances Control.

(j)

(n) “Electronic waste recovery payment” means an amount established and paid by the Department of Resources Recycling and Recovery CalRecycle pursuant to Section 42477.

(k)

(o) “Electronic waste recycling payment” means an amount established and paid by the Department of Resources Recycling and Recovery CalRecycle pursuant to Section 42478.

(l)

(p) “Hazardous material” has the same meaning as defined set forth in Section 25501 of the Health and Safety Code.

(m)

(q) (1) (A) “Manufacturer” means either of the following:

(1)A a person who manufactures a covered electronic device sold in this state. and who owns or is the exclusive licensee of the brand or trademark under which the covered electronic device is sold, offered for sale, or distributed in the state.

(2)A person who sells a covered electronic device in this state under that person’s brand name.

(B) If there is no person in the state who is the manufacturer for purposes of subparagraph (A), the manufacturer of the covered electronic device is the owner or licensee of a brand or trademark under which a covered electronic device is sold, offered for sale, or distributed in the state.

(C) If there is no person in the state who is the manufacturer for purposes of subparagraph (A) or (B), the manufacturer of the covered electronic device is the person who sells, offers for sale, or distributes the covered electronic device into the state for sale, offer for sale, or distribution in the state.

(2) For purposes of this chapter, the sale of a covered electronic device shall be deemed to occur in the state if the covered electronic device is delivered to the purchaser in the state.

(n)

(r) “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.

(o)

(s) “Recycling” has the same meaning as defined set forth in subdivision (a) of Section 25121.1 of the Health and Safety Code.

(p)

(t) “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.

(q)

(u) “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.

(r)

(v) (1) “Retail sale” has the same meaning as defined under set forth in 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 the state 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.

(s)

(w) “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.

(t)

(x) “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. 6.

 The heading of Article 3 (commencing with Section 42464) of Chapter 8.5 of Part 3 of Division 30 of the Public Resources Code is amended to read:

Article  3. Covered Electronic Waste Recycling Fee Fees

SEC. 7.

 Section 42464 of the Public Resources Code is amended to read:

42464.

 (a) On and after January 1, 2005, or as otherwise provided by Section 25214.10.1 of the Health and Safety Code, a consumer shall pay a covered electronic waste recycling fee upon the purchase of a new or refurbished covered electronic device, as defined in subparagraph (A) of paragraph (1) of subdivision (g), in the following amounts:

(1) Six dollars ($6) for each covered electronic device with a screen size of less than 15 inches measured diagonally.

(2) Eight dollars ($8) for each covered electronic device with a screen size greater than or equal to 15 inches but less than 35 inches measured diagonally.

(3) Ten dollars ($10) for each covered electronic device with a screen size greater than or equal to 35 inches measured diagonally.

(b) (1) On and after January 1, 2026, a consumer shall pay a $____ covered electronic waste recycling fee upon the purchase of a new or refurbished covered electronic device, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.

(2) Beginning on August 1, 2028, CalRecycle, in collaboration with DTSC, may establish more than one covered electronic waste recycling fee for covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, based on categories of covered battery-embedded products, as determined by CalRecycle in collaboration with DTSC.

(b)

(c) Except as provided in subdivision (d), (e), a retailer shall collect from the consumer a covered electronic waste recycling fee at the time of the retail sale of a covered electronic device.

(c)

(d) (1) A retailer may retain 3 percent of the covered electronic waste recycling fee as reimbursement for all costs associated with the collection of collecting the fee and shall transmit the remainder of the fee to the state pursuant to Section 42464.4.

(2) If a retailer makes an election pursuant to paragraph (2) of subdivision (d), (e), and the conditions of subparagraphs (A), (B), and (C) of paragraph (2) of subdivision (d) (e) are met, the vendor, in lieu of the retailer, may retain 3 percent of the covered electronic waste recycling fee as reimbursement for all costs associated with the collection of collecting the fee and the vendor shall transmit the remainder of the fee to the state pursuant to Section 42464.4.

(d)

(e) (1) If a retailer elects to pay the covered electronic waste recycling fee on behalf of the consumer, the retailer shall provide an express statement to that effect on the receipt given to the consumer at the time of sale. If a retailer elects to pay the covered electronic waste recycling fee on behalf of the consumer, the fee is a debt owed by the retailer to the state, and the consumer is not liable for the fee.

(2) A retailer may elect to pay the covered electronic waste recycling fee on behalf of the consumer by paying the covered electronic waste recycling fee to the retailer’s vendor, but only if all of the following conditions are met:

(A) The vendor is registered with the State Board of Equalization CDTFA to collect and remit the covered electronic waste recycling fee pursuant to this chapter.

(B) The vendor holds a valid seller’s permit pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of Part 1 of Division 2 of the Revenue and Taxation Code.

(C) The retailer pays the covered electronic waste recycling fee to the vendor that is separately stated on the vendor’s invoice to the retailer.

(D) The retailer provides an express statement on the invoice, contract, or other record documenting the sale that is given to the consumer, that the covered electronic waste recycling fee has been paid on behalf of the consumer.

(3) For the purpose of making the election in paragraph (2), if the conditions set forth in subparagraphs (A), (B), (C), and (D) of paragraph (2), are met, the covered electronic waste recycling fee is a debt owed by the vendor to the state, and the retailer is not liable for the fee.

(e)

(f) The retailer shall separately state the covered electronic waste recycling fee on the receipt given to the consumer at the time of sale.

(f)

(g) On or before August 1, 2005, and, thereafter, no more frequently than annually, and no less frequently than biennially, the board, CalRecycle, in collaboration with the department, DTSC, shall review, at a public hearing, the covered electronic waste recycling fee outlined in subdivision (a) and shall make any adjustments to the fee to ensure that there are sufficient revenues in the account to fund the covered electronic waste recycling program established pursuant to this chapter. Adjustments to the fee that are made on or before August 1, shall apply to the calendar year beginning the following January 1. The board CalRecycle shall base an adjustment of the covered electronic waste recycling fee fees on both of the following factors:

(1) The sufficiency, and any surplus, of revenues in the account to fund the collection, consolidation, and recycling of covered electronic waste that is projected to be recycled in the state.

(2) The sufficiency of revenues in the account for the board CalRecycle and the department DTSC to administer, enforce, and promote the program established pursuant to this chapter, plus a prudent reserve not to exceed 5 percent of the amount in the account.

(h) On or before August 1, 2028, and, thereafter, no more frequently than annually, and no less frequently than biennially, CalRecycle, in collaboration with DTSC, shall review, at a public hearing, the covered electronic waste recycling fee outlined in subdivision (b) and shall make any adjustments to the fee to ensure that there are sufficient revenues in the account to fund the covered electronic waste recycling program established pursuant to this chapter. Adjustments to the fee that are made on or before August 1, shall apply to the calendar year beginning the following January 1. CalRecycle shall base an adjustment of the covered electronic waste recycling fees on both of the following factors:

(1) The sufficiency, and any surplus, of revenues in the account to fund the collection, consolidation, and recycling of covered electronic waste that is projected to be recycled in the state.

(2) The sufficiency of revenues in the account for CalRecycle and DTSC to administer, enforce, and promote the program established pursuant to this chapter, plus a prudent reserve not to exceed 5 percent of the amount in the account.

SEC. 8.

 Section 42464.2 of the Public Resources Code is amended to read:

42464.2.

 The State Board of Equalization CDTFA shall collect the covered electronic waste recycling fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). For the purposes of this section, the reference in the Fee Collection Procedures Law to “feepayer” shall include a retailer, a consumer, and a vendor, in the case of a retailer’s election pursuant to paragraph (2) of subdivision (d) (e) of Section 42464.

SEC. 9.

 Section 42464.4 of the Public Resources Code is amended to read:

42464.4.

 (a) The covered electronic waste recycling fee shall be due and payable quarterly on or before the last day of the month following each calendar quarter. The payments shall be accompanied by a return in the form as prescribed by the State Board of Equalization CDTFA or that person authorized to collect, including, but not limited to, electronic media.

(b) The State Board of Equalization CDTFA may require the payment of the fee and the filing of returns for other than quarterly periods.

SEC. 10.

 Section 42464.6 of the Public Resources Code is amended to read:

42464.6.

 (a) The State Board of Equalization CDTFA shall not accept or consider a petition for redetermination of fees determined under this chapter if the petition is founded upon the grounds that an item is or is not a covered electronic device. The State Board of Equalization CDTFA shall forward to the department DTSC any appeal of a determination that is based on the grounds that an item is or is not a covered electronic device.

(b) The State Board of Equalization CDTFA shall not accept or consider a claim for refund of fees paid pursuant to this chapter if the claim is founded upon the grounds that an item is or is not a covered electronic device. The State Board of Equalization CDTFA shall forward to the department DTSC any claim for refund that is based on the grounds that an item is or is not a covered electronic device.

SEC. 11.

 Section 42464.8 of the Public Resources Code is amended to read:

42464.8.

 Notwithstanding Section 55381 of the Revenue and Taxation Code, the State Board of Equalization CDTFA may disclose the name, address, account number, and account status of a person registered with the State Board of Equalization CDTFA to collect and remit the covered electronic waste recycling fee.

SEC. 12.

 Section 42465 of the Public Resources Code is amended to read:

42465.

 On and after the date specified in subdivision (a) and paragraph (1) of subdivision (b) of Section 42464, and subsequently on or after the date specified through rulemaking pertaining to paragraph (2) of subdivision (b) of Section 42464, a person shall not sell a new or refurbished covered electronic device to a consumer in this state if the board CalRecycle or department DTSC determines that the manufacturer of that covered electronic device is not in compliance with this chapter or as provided otherwise by Section 25214.10.1 of the Health and Safety Code.

SEC. 13.

 Section 42465.1 of the Public Resources Code is amended to read:

42465.1.

 On and after January 1, 2005, or as specified otherwise in Section 25214.10.1 of the Health and Safety Code, a person may shall not sell or offer for sale in this state a new or refurbished covered electronic device device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, unless the device is labeled with the name of the manufacturer or the manufacturer’s brand label, label so that it is readily visible.

SEC. 14.

 Section 42465.2 of the Public Resources Code is amended to read:

42465.2.

 (a) On or before July 1, 2005, or as specified otherwise in Section 25214.10.1 of the Health and Safety Code, and at least once annually thereafter as determined by the board, CalRecycle, each manufacturer of a covered electronic device device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, sold in this state shall do all of the following:

(1) Submit to the board CalRecycle a report that includes all of the following information:

(A) An estimate of the number of covered electronic devices sold by the manufacturer in the state during the previous year.

(B) A baseline or set of baselines that show the total estimated amounts of mercury, cadmium, lead, hexavalent chromium, and PBB’s PPBs used in covered electronic devices manufactured by the manufacturer in that year and the reduction in the use of those hazardous materials from the previous year.

(C) A baseline or set of baselines that show the total estimated amount of recyclable recycled materials contained in covered electronic devices sold by the manufacturer in that year and the increase in the use of those recyclable recycled materials from the previous year.

(D) A baseline or a set of baselines that describe any efforts to design covered electronic devices for recycling and goals and plans for further increasing design for recycling.

(E) A list of those retailers, including, but not limited to, Internet and catalog retailers, to which the manufacturer provided a notice in the prior 12 months pursuant to Section 42465.3 and subdivision (c) of Section 25214.10.1 of the Health and Safety Code.

(2) Make information available to consumers, consumers that describes where and how to return, recycle, and dispose of the covered electronic device and opportunities and locations for the collection or return of the device, through the use of a toll-free telephone number, Internet Web site, internet website, information labeled on the device, information included in the packaging, or information accompanying the sale of the covered electronic device.

(b) (1) For the purposes of complying with paragraph (1) of subdivision (a), a manufacturer may submit a report to the board CalRecycle that includes only those covered electronic devices that include applications of the compounds listed in subparagraph (B) of paragraph (1) of subdivision (a) that are exempt from the Directive 2002/95/EC adopted by the European Parliament and the Council of the European Union on January 27, 2003, and any amendments made to that directive, if both of the following conditions are met, as modified by Section 24214.10 of the Health and Safety Code:

(A) The manufacturer submits written verification to the department DTSC that demonstrates, to the satisfaction of the department, DTSC’s satisfaction, that the manufacturer is in compliance with Directive 2002/95/EC, and any amendments to that directive, for those covered electronic devices for which it is not submitting a report to the board CalRecycle pursuant to this subdivision.

(B) The department DTSC certifies that the manufacturer is in compliance with Directive 2002/95/EC, and any amendments to that directive, for those covered electronic devices for which the manufacturer is not submitting a report to the board CalRecycle pursuant to this subdivision.

(2) When reporting pursuant to this subdivision, a manufacturer is required only to report on specific applications of compounds used in covered electronic devices that are exempt from Directive 2002/95/EC.

(c) Any information submitted to the board CalRecycle pursuant to subdivision (a) that is proprietary in nature or a trade secret shall be subject to protection under state laws and regulations governing that information.

SEC. 15.

 Section 42465.3 of the Public Resources Code is amended to read:

42465.3.

 A manufacturer of a covered electronic device device, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, shall comply with the notification requirements of subdivision (c) of Section 25214.10.1 of the Health and Safety Code.

SEC. 16.

 Section 42466.1 is added to the Public Resources Code, to read:

42466.1.

 (a) On and after January 1, 2026, a person shall not sell or offer for sale in this state a new or refurbished covered battery-embedded product unless the product is labeled with the name of the manufacturer or the manufacturer’s brand label so that it is readily visible.

(b) A new or refurbished covered battery-embedded product shall be labeled with information identifying the chemistry of the embedded product.

SEC. 17.

 Section 42466.2 is added to the Public Resources Code, to read:

42466.2.

 (a) A manufacturer of a “covered electronic device,” as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, shall send a notice in accordance with the schedule specified in paragraph (1) or (2), as applicable, of subdivision (c), to any retailer that sells that covered battery-embedded product manufactured by the manufacturer. The notice shall identify the covered battery-embedded product by brand and model number, and shall inform the retailer that the covered battery-embedded product is a covered electronic device and is subject to a fee in accordance with subdivision (b) of Section 42464.

(b) A manufacturer subject to this subdivision shall also send copies of the notice to CDTFA and to CalRecycle.

(c) The notice required by this subdivision shall be sent in accordance with the following schedule:

(1) On or before July 1, 2025, and every year thereafter, the manufacturer shall send a notice covering any covered battery-embedded product manufactured by that manufacturer that is subject to this chapter pursuant to paragraph (1) of subdivision (g) of Section 42463.

(2) On or before July 1, 2025, and every year thereafter, the manufacturer shall send a notice covering any product manufactured by that manufacturer that is exempt from the covered battery-embedded product definition, pursuant to paragraph (2) of subdivision (g) of Section 42463.

SEC. 18.

 Section 42467 is added to the Public Resources Code, to read:

42467.

 (a) On or before July 1, 2027, and at least once annually thereafter, each manufacturer of a covered electronic device, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, sold in this state shall do both of the following:

(1) Submit to CalRecycle a report that includes all of the following information:

(A) An estimate of the number of covered electronic devices sold by the manufacturer in the state during the previous year.

(B) The chemistry of the battery contained within the covered electronic devices sold by the manufacturer.

(C) A baseline or set of baselines that show the total estimated amount of recycled materials contained in covered electronic devices sold by the manufacturer in that year and the increase in the use of those recycled materials from the previous year.

(D) A list of those retailers, including, but not limited to, internet and catalog retailers, to which the manufacturer provided a notice in the prior 12 months pursuant to Section 42466.2.

(2) Make information available to consumers that describes where and how to return, recycle, and dispose of the covered electronic device and opportunities and locations for the collection or return of the device, through the use of a toll-free telephone number, internet website, information labeled on the device, information included in the packaging, or information accompanying the sale of the covered electronic device.

(b) Any information submitted to CalRecycle pursuant to subdivision (a) that is proprietary in nature or a trade secret shall be subject to protection under state laws and regulations governing that information.

SEC. 19.

 Section 42474 of the Public Resources Code is amended to read:

42474.

 (a) Civil liability in an amount of up to two thousand five hundred dollars ($2,500) per offense may be administratively imposed by the Department of Resources Recycling and Recovery CalRecycle for each sale of a covered electronic device for which a covered electronic waste recycling fee has not been paid pursuant to Section 42464.

(b) A civil penalty in an amount of up to five thousand dollars ($5,000) per offense may be imposed by a superior court for each sale of a covered electronic device for which a covered electronic waste recycling fee has not been paid pursuant to Section 42464.

(c) Civil liability in an amount of up to twenty-five thousand dollars ($25,000) may be administratively imposed by the board CalRecycle against manufacturers for failure to comply with this chapter, except as otherwise provided in subdivision (a).

(d) Civil liability in an amount of up to twenty-five thousand dollars ($25,000) per violation may be administratively imposed by the Department of Resources Recycling and Recovery CalRecycle against a person, including an authorized collector or covered electronic waste recycler, that makes a false statement or representation in any document filed, submitted, maintained, or used for purposes of compliance with this chapter and associated regulations.

(e) (1) The Department of Resources Recycling and Recovery CalRecycle may revoke the approval or deny the renewal application of an authorized collector or covered electronic waste recycler that makes a false statement or representation in a document filed, submitted, maintained, or used for purposes of compliance with this chapter and the regulations adopted pursuant to this chapter.

(2) In addition to the authority specified in paragraph (1), the Department of Resources Recycling and Recovery CalRecycle may deny an application for approval or renewal from an authorized collector or covered electronic waste recycler that, or an individual identified in the application who, has a history demonstrating a pattern of operation in conflict with the requirements of this chapter and the regulations adopted pursuant to this chapter.

(3) (A) A person challenging a revocation, denial of application renewal, or application denial under this chapter, or an approved covered electronic waste recycler challenging the denial or adjustment of an electronic waste recovery payment or electronic waste recycling payment, shall first exhaust all administrative remedies by filing with the Department of Resources Recycling and Recovery CalRecycle a timely administrative appeal, in accordance with the regulations adopted to implement this chapter.

(B) The hearing shall be held before the Director of Resources Recycling and Recovery director or his or her the director’s designee, who shall issue a written decision stating the factual and legal basis for this decision.

(f) (1) A manufacturer shall maintain and keep accessible all records required to be kept or submitted pursuant to this chapter for a minimum of three years.

(2) A manufacturer shall, upon request, provide CalRecycle with relevant records necessary to determine compliance with this chapter.

(g) All reports and records provided to CalRecycle pursuant to this chapter shall be provided under penalty of perjury.

SEC. 20.

 Section 42474.5 of the Public Resources Code is amended to read:

42474.5.

 This Notwithstanding any other law, this chapter and all regulations adopted pursuant to this chapter may be enforced by the department DTSC pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code.

SEC. 21.

 Section 42475 of the Public Resources Code is amended to read:

42475.

 (a) The board CalRecycle shall administer and enforce this chapter in consultation with the department. DTSC.

(b) The board CalRecycle and the department DTSC may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code that are necessary to implement this chapter, and any other regulations that the board CalRecycle and the department DTSC determines are necessary to implement the provisions of this chapter in a manner that is enforceable.

(c) The board CalRecycle shall adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code that ensure the protection of to protect any proprietary information submitted to the board CalRecycle by a manufacturer of covered electronic devices.

(d) The board CalRecycle and the department DTSC may prepare, publish, or issue any materials that the board CalRecycle or department DTSC determines to be necessary for the dissemination of to disseminate information concerning the CalRecycle’s and DTSC’s activities of the board or department under this chapter.

(e) In carrying out this chapter, the board CalRecycle and the department DTSC may solicit and use any and all expertise available in other state agencies, including, but not limited to, the department, the Department of Conservation, Conservation and the State Board of Equalization. CDTFA.

SEC. 22.

 Section 42475.2 of the Public Resources Code is amended to read:

42475.2.

 (a) The board CalRecycle and the department DTSC may each adopt regulations to implement and enforce this chapter as emergency regulations.

(b) The emergency regulations adopted pursuant to this chapter shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulations adopted by the board CalRecycle or the department DTSC pursuant to this section shall be filed with, but not be repealed by, the Office of Administrative Law and shall remain in effect for a period of two years or until revised by the department DTSC or the board, CalRecycle, whichever occurs sooner.

SEC. 23.

 Section 42475.3 of the Public Resources Code is amended to read:

42475.3.

 The board CalRecycle, in collaboration with the department DTSC, shall convene a covered electronic waste working group comprised of representatives from manufacturers of covered electronic devices and other interested parties to develop and, by July 1, 2005, advise the board CalRecycle and the State and Consumer Services Agency on environmental purchasing criteria that may be used by state agencies to identify covered electronic devices with reduced environmental impacts. In defining criteria, the group shall consider the environmental impacts of products over their entire life cycle, as well as tradeoffs in other product attributes such as safety, product functionality, and cost. The group shall also consider any federal product evaluation or rating system, or market based system to promote the development and sale of environmentally conscious products.

SEC. 24.

 Section 42475.4 of the Public Resources Code is amended to read:

42475.4.

 (a) The board CalRecycle shall annually establish, and update as necessary, statewide recycling goals for covered electronic waste. In implementing this section, the board CalRecycle shall do all of the following:

(1) Post on its Web site internet website information on the amount of covered electronic devices sold in the state in the previous year as reported to the board. CalRecycle.

(2) Post on its Web site internet website information on the amount of covered electronic waste recycled in the state in the previous year as reported to the board. CalRecycle.

(3) Develop and adopt recycling goals, with input from manufacturers, retailers, covered electronic waste recyclers, and collectors, that reflect projections of covered electronic device sales, rates of obsolescence, and stockpiles.

(b) Nothing in this section authorizes the board CalRecycle to establish any recycling rates or dates by which a manufacturer of covered electronic devices shall comply with this chapter, or to impose any other recycling goal or target on a manufacturer of those devices.

SEC. 25.

 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 the Department of Resources Recycling and Recovery CalRecycle and the department. DTSC.

(B) To reimburse the State Board of Equalization CDTFA 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 DTSC to implement and enforce Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code, including any regulations adopted by DTSC pursuant to that chapter, as that chapter relates to covered electronic devices, and any regulations adopted by the department pursuant to that chapter. devices.

(D) To establish the public information program specified in subdivision (d).

(E) For expenditure pursuant to paragraph (2) of subdivision (a) of, and paragraph (2) of subdivision (b) of, Section 17001.

(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 the Department of Resources Recycling and Recovery CalRecycle or the department DTSC 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 2 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) The Department of Resources Recycling and Recovery CalRecycle shall adopt regulations specifying cancellation methods for the recovery, processing, or recycling of covered electronic waste.

(f) The Department of Resources Recycling and Recovery CalRecycle 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) The Department of Resources Recycling and Recovery CalRecycle 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 the Department of Resources Recycling and Recovery. CalRecycle.

(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) The Department of Resources Recycling and Recovery CalRecycle 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 the Department of Resources Recycling and Recovery CalRecycle 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 the Department of Resources Recycling and Recovery: CalRecycle:

(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. 26.

 Section 42476.5 of the Public Resources Code is amended to read:

42476.5.

 A person who exports covered electronic waste, or a covered electronic device intended for recycling or disposal, to a foreign country, or to another state for ultimate export to a foreign country, shall do all of the following at least 60 days prior to export:

(a) Notify the department DTSC of the destination, disposition, contents, and volume of the waste, or device intended for recycling or disposal to be exported, and include with the notification the demonstrations required pursuant to subdivisions (b) to (e), inclusive.

(b) Demonstrate that the waste or device is being exported for the purposes of recycling or disposal.

(c) Demonstrate that the importation of the waste or device is not prohibited by an applicable law in the state or country of destination and that any import will be conducted in accordance with all applicable laws. As part of this demonstration, required import and operating licenses, permits, or other appropriate authorization documents shall be forwarded to the department. DTSC.

(d) Demonstrate that the exportation of the waste or device is conducted in accordance with applicable United States or applicable international law.

(e) (1) Demonstrate that the waste or device will be managed within the country of destination only at facilities whose operations meet or exceed the binding decisions and implementing guidelines of the Organization for Economic Cooperation and Development for the environmentally sound management of the waste or device being exported.

(2) The demonstration required by this subdivision applies to any country of destination, notwithstanding that the country is not a member of the Organization for Economic Cooperation and Development.

SEC. 27.

 Section 42477 of the Public Resources Code is amended to read:

42477.

 (a) On July 1, 2004, or as specified otherwise in Section 25214.10.1 of the Health and Safety Code, and on July 1 every two years of each year thereafter, the board CalRecycle, in collaboration with the department DTSC, shall establish an electronic waste recovery payment schedule for covered electronic wastes generated in this state to cover the average net cost for an authorized collector to operate a free and convenient system for collecting, consolidating and transporting covered electronic wastes generated in this state.

(b) The board CalRecycle shall make the electronic waste recovery payments either directly to an authorized collector or to a covered electronic waste recycler for payment to an authorized collector pursuant to this article.

SEC. 28.

 Section 42478 of the Public Resources Code is amended to read:

42478.

 (a) (1) Except as provided in subdivision (b), paragraph (2), on July 1, 2004, or as specified otherwise in Section 25214.10.1 of the Health and Safety Code, and on July 1 every two years of each year thereafter, the board, CalRecycle, in collaboration with the department, DTSC, shall establish a covered electronic waste recycling payment schedule for covered electronic wastes generated in this state from the disposal of covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, to cover the average net cost for an electronic waste recycler to receive, process, and recycle each major category, as determined by the board, CalRecycle, of covered electronic waste received from an authorized collector. The board CalRecycle shall make the electronic waste recycling payments to a covered electronic waste recycler pursuant to this article.

(b)

(2) Until the board CalRecycle adopts a new payment schedule that covers the average net cost for an electronic waste recycler to receive, process, and recycle each major category, as determined by the board CalRecycle of covered electronic waste from the disposal of covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, received from an authorized collector, the amount of the covered electronic waste recycling payment shall be equal to twenty-eight cents ($0.28) per pound of the total weight of covered electronic waste from the disposal of covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, received from an authorized collector and subsequently processed for recycling.

(b) (1) CalRecycle shall adopt regulations, effective January 1, 2025, to establish a process for covered electronic waste recyclers to submit payment claims for covered electronic waste resulting from disposal of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.

(2) On April 1, 2026, CalRecycle shall begin accepting payment claims for covered electronic waste, resulting from disposal of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, collected on or after January 1, 2026.

(c) (1) Except as provided in paragraph (2), on July 1, 2028, and on July 1 every year thereafter, CalRecycle, in collaboration with DTSC, shall establish a covered electronic waste recycling payment schedule for covered electronic waste generated in this state, from disposal of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, to cover the average net cost for an electronic waste recycler to receive, process, and recycle each major category, as determined by CalRecycle, of covered electronic waste received from an authorized collector. CalRecycle shall make the electronic waste recycling payments to a covered electronic waste recycler pursuant to this article.

(2) Until CalRecycle adopts a new payment schedule that covers the average net cost for an electronic waste recycler to receive, process, and recycle each major category, as determined by CalRecycle, of covered electronic waste, from disposal of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, received from an authorized collector, the amount of the covered electronic waste recycling payment shall be equal to $____ per pound of the total weight of covered electronic waste received from an authorized collector and subsequently processed for recycling.

SEC. 29.

 Section 42479 of the Public Resources Code is amended to read:

42479.

 (a) (1) For covered electronic waste from the disposal of covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, collected for recycling on and after January 1, 2005, the Department of Resources Recycling and Recovery and for covered electronic waste, from the disposal of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, collected for recycling on or after January 1, 2026, CalRecycle 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 the review by the Department of Resources Recycling and Recovery CalRecycle of a payment claim submitted to the Department of Resources Recycling and Recovery CalRecycle by the authorized collector or e-waste recycler in the form and manner determined by the Department of Resources Recycling and Recovery. The Department of Resources Recycling and Recovery CalRecycle. CalRecycle 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 the Department of Resources Recycling and Recovery CalRecycle 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 Department of Resources Recycling and Recovery. CalRecycle.

(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 the Department of Resources Recycling and Recovery CalRecycle 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 DTSC 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) The Department of Resources Recycling and Recovery CalRecycle may conduct a selective audit of authorized collectors, covered e-waste recyclers, or manufacturers receiving payments from the Department of Resources Recycling and Recovery from CalRecycle to determine whether electronic waste recovery payments, electronic waste recycling payments, or payments to manufacturers are being paid by the Department of Resources Recycling and Recovery CalRecycle according to the requirements of this chapter and the regulations adopted pursuant to this chapter. The Department of Resources Recycling and Recovery may CalRecycle collect and recover from authorized collectors, covered e-waste recyclers, or manufacturers, with interest, any moneys improperly paid.

SEC. 30.

 Section 42485 of the Public Resources Code is amended to read:

42485.

 Except as provided in subdivision (b) of Section 42486, the board CalRecycle and the department DTSC shall not implement this chapter if either of the following occur:

(a) A federal law, or a combination of federal laws, takes effect and does all of the following:

(1) Establishes a program for the collection, recycling, and proper disposal of covered electronic waste that is applicable to all covered electronic devices sold in the United States.

(2) Provides revenues to the state to support the collection, recycling, and proper disposal of covered electronic waste, in an amount that is equal to, or greater than, the revenues that would be generated by the fee imposed under Section 42464.

(3) Requires covered electronic device manufacturers, retailers, handlers, processors, and recyclers to dispose of those devices in a manner that is in compliance with all applicable federal, state, and local laws, and prohibits the devices from being exported for disposal in a manner that poses a significant risk to the public health or the environment.

(b) A trial court issues a judgment, which is not appealed, or an appellate court issues an order affirming a judgment of a trial court, holding that out-of-state manufacturers or retailers, or both, may not be required to collect the fee authorized by this chapter. The out-of-state manufacturers or retailers, or both, shall continue to collect the fee during the appellate process.

SEC. 31.

 The Legislature finds and declares that this act, which adds Section 42467 to the Public Resources Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

In order to appropriately protect the trade secrets and other proprietary materials of businesses, it is necessary to limit access to the proprietary information of manufacturers complying with the requirements of the Electronic Waste Recycling Act of 2003, as amended by this act.

SEC. 32.

 The Legislature finds and declares that recycling of covered electronic devices is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 4 to 30, inclusive, of this act amending the Electronic Waste Recycling Act of 2003 apply to all cities, including charter cities.

SEC. 33.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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.

SECTION 1.Chapter 7.5 (commencing with Section 42420) is added to Part 3 of Division 30 of the Public Resources Code, to read:

7.5.Responsible Battery Recycling Act of 2022

1.General Provisions

42420.

This chapter shall be known, and may be cited, as the Responsible Battery Recycling Act of 2022.

42420.2.

For purposes of this chapter, the following terms have the following meanings:

(a)“Brand” means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered battery or a covered battery-embedded product and identifies the owner or licensee of the brand.

(b)“Button cell battery” means a small, round cell or battery where the overall height is less than the diameter, containing aqueous electrolyte.

(c)“Coin cell battery” means a small, round cell or battery where the overall height is less than the diameter, containing nonaqueous electrolyte.

(d)“Collection site” means a permanent or temporary location at which covered batteries or covered battery-embedded products are collected and prepared for transport in accordance with the requirements of this chapter.

(e)“Consumer” means an owner of a covered battery or covered battery-embedded product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered battery or a covered battery-embedded product.

(f)(1)“Covered battery” means a device consisting of one or more electrically connected electrochemical cells designed to receive, store, and deliver electric energy. A covered battery includes a battery that is either of the following:

(A)A battery that is intended to be easily removable from the product with household tools or tools provided by the manufacturer of the battery.

(B)A battery that is packed with, but not installed in, the product that the battery is intended to power, when the product is offered for sale by the producer.

(2)“Covered battery” does not include any of the following:

(A)A primary battery weighing over two kilograms. For purposes of this subparagraph, “primary battery” means a nonrechargeable battery, including, but not limited to, alkaline, carbon-zinc, and lithium metal batteries.

(B)A rechargeable battery weighing over five kilograms and having a Watt-hour rating of more than 300 Watt-hours.

(C)A lead-acid battery, as defined in Section 42440.

(D)(i)A battery contained in a motor vehicle. For purposes of this subparagraph, “motor vehicle” has the same meaning as set forth in Section 415 of the Vehicle Code.

(ii)Notwithstanding any other law, the exclusion in clause (i) does not apply to a battery contained in any of the following:

(I)A motorized scooter.

(II)A motorized skateboard.

(III)A motorized hoverboard.

(IV)A device intended to propel or move upon a highway only one individual person or property.

(E)A fuel cell electrical generating facility. For purposes of this subparagraph, “fuel cell electrical generating facility” has the same meaning as “eligible fuel cell electrical generating facility,” as defined in Section 2827.10 of the Public Utilities Code.

(g)(1)“Covered battery-embedded product” means a product containing a battery or battery pack that is not designed to be easily removed from the product by the consumer with household tools or provided by the manufacturer.

(2)“Covered battery-embedded product” does not include any of the following:

(A)A medical device, as defined in Section 321(h) of Title 21 of the United States Code, if the medical device is not designed and marketed for sale or resale principally to consumers for personal use.

(B)A covered electronic device, as defined in Section 42463.

(C)An energy storage system, as defined in Section 2835 of the Public Utilities Code.

(h)“Department” means the Department of Resources Recycling and Recovery or a successor agency.

(i)“Distributor” means a company that has a contractual relationship with one or more producers to market and sell covered batteries or covered battery-embedded products to retailers.

(j)“Electrochemical cell” means a system consisting of an anode, a cathode, and an electrolyte, plus electrical or mechanical connections needed to allow the cell to deliver or receive electric energy.

(k)“Importer” means either of the following:

(1)A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered battery or a covered battery-embedded product sold in or into the state that was manufactured or assembled by a company outside of the United States.

(2)A person importing into the state for sale in the state a covered battery or covered battery-embedded product that was manufactured or assembled by a company outside of the state.

(l)“Person” has the same meaning as set forth in Section 40170.

(m)(1)(A) “Producer” means the person who manufactures the covered battery or covered battery-embedded product and who sells, offers for sale, or distributes the covered battery or covered battery-embedded product in or into the state.

(B)If there is no person who is the producer of the covered battery or covered battery-embedded product for purposes of subparagraph (A), the producer of the covered battery or covered battery-embedded product is the person who imports the covered battery or covered battery-embedded product in or into the state for sale or distribution.

(C)If there is no person who is the producer for purposes of subparagraphs (A) and (B), the producer is the person who sells the covered battery or the covered battery-embedded product in or into the state.

(2)“Producer” does not include an admitted insurer possessing a certificate of authority from the Insurance Commissioner pursuant to Section 700 of the Insurance Code.

(n)(1)“Rechargeable battery” means a battery that contains one or more voltaic or galvanic cells, electrically connected to produce electric energy, and that is designed to be recharged.

(2)“Rechargeable battery” does not include either of the following:

(A)A battery that contains electrolytes as a free liquid.

(B)A battery that employs lead-acid technology, unless that battery is sealed and contains no free liquid electrolytes.

(o)“Recycler” means either of the following:

(1)A person who dismantles or otherwise handles covered battery-embedded products to recover components and residuals contained in the covered battery-embedded products for the purpose of recycling.

(2)A person who changes the physical or chemical composition of covered batteries or covered battery-embedded products and who is subject to 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 for purposes of recycling.

(p)“Recycling” has the same meaning as set forth in Section 40180. “Recycling” does not include the production of fuel or energy.

(q)“Recycling efficiency rate” means the ratio of the weight of resources recovered from covered batteries and covered battery-embedded products received by a stewardship organization to the weight of covered batteries and covered battery-embedded products collected by the producer or stewardship organization.

(r)“Retailer” means a person who sells covered batteries or covered battery-embedded products in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.

(s)“Stewardship organization” means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established by a group of producers in accordance with this chapter to develop and implement a stewardship program.

(t)“Stewardship plan” or “plan” means a plan developed by a stewardship organization or producer pursuant to this chapter for the collection, transportation, and recycling, and the safe and proper management, of covered batteries or covered battery-embedded products.

(u)“Stewardship program” means a program established by a producer or stewardship organization pursuant to this chapter for the free and convenient collection, transportation, and recycling, and the safe and proper management, of covered batteries, covered battery-embedded products, or covered batteries and covered battery-embedded products pursuant to a stewardship plan approved by the department in accordance with this chapter.

42420.4.

On or before January 1, 2025, the department, in consultation with the Department of Toxic Substances Control, shall adopt regulations to implement this chapter.

2.Producers and Stewardship Organizations for Covered Batteries and Covered Battery-Embedded Products

42421.

(a)No later than 180 days after the effective date of this chapter, a producer shall provide to the department a list of covered batteries, covered battery-embedded products, and brands of covered batteries and covered battery-embedded products that the producer sells or offers for sale in the state.

(b)A producer, or a stewardship organization on behalf of a group of producers, shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.

42421.2.

(a)Producers may establish one or more stewardship organizations composed of producers to develop and implement the covered battery and covered battery-embedded product recycling program established pursuant to this chapter.

(b)(1)A producer shall comply with this chapter either individually or through a stewardship organization established pursuant to subdivision (a).

(2)A producer shall not sell, distribute, offer for sale, or import a covered battery or a covered battery-embedded product in or into this state unless the producer is in compliance with this chapter.

(3)Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is distributing a covered battery or covered battery-embedded product in the state of that fact.

(c)Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.

3.Stewardship Plans for Covered Batteries and Covered Battery-Embedded Products

42422.

Within nine months of the effective date of the regulations adopted by the department pursuant to Section 42420.4, a producer or stewardship organization shall develop and submit to the department a complete stewardship plan for the collection, transportation, and recycling, and the safe and proper management, of covered batteries, covered battery-embedded products, or covered batteries and covered battery-embedded products in the state in an economically efficient and practical manner.

42422.1.

A stewardship plan for covered batteries shall include all of the following standards and elements:

(a)The names of producers, brands, and covered batteries covered under the stewardship plan.

(b)An explanation of the process by which the stewardship organization or producer consulted with the advisory body created pursuant to Section 42422.4 to receive advice on the development and implementation of the stewardship plan.

(c)Provide for a free and convenient collection system for covered batteries in each county of the state that meets all of the following requirements:

(1)A minimum of 10 collection sites per county or one collection site per 15,000 people, whichever is greater.

(2)Allows the department to adjust, through regulations adopted by the department pursuant to Section 42420.4, the minimum required collection sites applicable to plans addressing collection of covered batteries, covered battery-embedded products, or both covered batteries and covered battery-embedded products to ensure that consumers have sufficient convenient access to collection sites, if the department has evidence that allowing for this adjustment will increase the collection of products covered by the plans.

(3)The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience. This paragraph does not authorize the department to require more than the minimum number of collection sites required pursuant to paragraph (2) or the regulations adopted by the department pursuant to Section 42420.4.

(4)The department may establish a limit on the number of covered batteries or covered battery-embedded products to be deposited at a single collection site by a single consumer in a single day.

(d)An explanation of the stewardship organization’s or producer’s plans to meet the minimum recycling efficiency rate for each battery chemistry type established by the department pursuant to the regulations adopted under Section 42420.4.

(e)An explanation of how collection sites will be authorized and managed, including all of the following:

(1)A producer or stewardship organization shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and comply with all applicable state and federal laws and regulations and the rules and conditions imposed by the stewardship organization or producer pursuant to paragraph (7), even if the minimum thresholds described in subdivision (c) have been achieved.

(2)A producer or stewardship organization shall include the offering entity as a collection site in the program within 90 days of receiving the written offer to participate and confirming that the offering entity will agree to comply with the rules and conditions of the stewardship plan. The producer or stewardship organization shall not be required to respond to offers pursuant to this paragraph until the producer’s or stewardship organization’s stewardship plan has been approved by the department.

(3)A producer or stewardship organization may suspend or terminate a collection site or service that does not comply with all applicable state and federal laws and regulations or adhere to the rules and conditions imposed by the stewardship organization or producer pursuant to paragraph (7).

(4)A collection site shall be operated to ensure that covered batteries are collected safely and handled in accordance with all applicable state and federal laws and regulations and the rules and conditions of the stewardship plan.

(5)An explanation of the process by which damaged, defective, or recalled covered batteries will be accepted by collection sites and the safety equipment that will be provided to collection sites to facilitate the safe collection of damaged, defective, or recalled covered batteries.

(6)An explanation of the process by which the stewardship organization or producer will provide for the collection and transport of covered batteries from the collection sites to a recycler and how shipments will be documented. A stewardship organization or producer shall maintain these records and make them available to the department upon request.

(7)A list of all rules or conditions imposed by the stewardship organization or producer as a condition of participation in the program for collection sites.

(8)A producer or stewardship organization shall evaluate and consider the implementation of an incentive structure for collection sites to achieve the purposes of this chapter.

(f)A producer or stewardship organization shall allow a consumer to drop off, at no charge, covered batteries at a collection site.

(g)Provide collection sites with appropriate containers, training, signage, safety guidance, and educational materials.

(h)(1)The establishment and administration of a means for fully funding the stewardship program in a manner that equitably distributes the stewardship program’s costs.

(2)The funding mechanism shall provide sufficient funding for the producer or stewardship organization to implement the plan, including the administrative, operational, and capital costs of the plan and the department’s and the Department of Toxic Substances Control’s actual regulatory costs incurred to implement and enforce this chapter.

(i)A description of the process by which covered batteries will be processed and recycled following collection at collection sites, including all of the following:

(1)A description of how covered batteries will be handled and recycled, including how covered batteries will not be disposed of by the stewardship organization, an agent of the stewardship organization, or a service provider contracted with the stewardship organization, and how all covered batteries will enter a recycling process.

(2)A description of how discarded covered battery residual materials will, to the extent economically and technically feasible, be recycled.

(3)A description of how the stewardship organization will prioritize the use of recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability.

(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following:

(1)Other stewardship programs for covered batteries.

(2)Existing battery collection and recycling programs, including electronic waste recyclers and dismantlers.

(3)Community-based organizations that contact the stewardship organization and that are qualified to run or support collection events.

(4)Other relevant stakeholders, as appropriate.

(k)Consultation with the California Environmental Protection Agency’s Environmental Justice Task Force regarding methods to supplement those of the stewardship organization to collect covered batteries for recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.

(l)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection and recycling program offered by the stewardship organization. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:

(1)A detailed description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation of consumers, retailers, and others.

(2)An internet website that publicizes the location of collection sites and provides detailed information to consumers on the free and convenient network of collection sites offered by the stewardship program and any other information reasonably necessary to safely and conveniently access the collection and recycling services offered as part of the stewardship plan.

(3)All signage and materials required for collection sites by the stewardship organization or producer, and the method by which collection sites can access replacement materials.

(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English, as described in subdivision (k).

(5)A description of goals and metrics used to determine the success of the statewide education and outreach program.

(6)The statewide education and outreach program shall promote the safe and proper management of used covered batteries.

(7)The statewide education and outreach program shall not promote the disposal of covered batteries in a manner inconsistent with the services offered by the stewardship plan.

(8)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered batteries.

(9)A description of how the stewardship organization will periodically assess and evaluate the efficacy of the comprehensive statewide education and outreach program and adjust strategies to maximize participation in the stewardship program.

(10)The department may allow producers and stewardship organizations operating stewardship programs under separately approved plans to coordinate activities and share costs related to the comprehensive statewide education and outreach program if the stewardship organization or producer determines that the coordination and cost sharing serves to more effectively educate the public and improve participation in the stewardship programs.

(m)Developing strategies in coordination with other stewardship programs to implement proper labeling of covered batteries to ensure proper collection and recycling, including, but not limited to, a uniform color, design, and labeling scheme for batteries.

(n)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the stewardship organization or producer, or through an entity such as an escrow company.

42422.2.

A stewardship plan for covered battery-embedded products shall include all of the following standards and elements:

(a)The names of producers, distributors, importers, manufacturers, brands, and covered battery-embedded products covered under the stewardship plan.

(b)An explanation of the process by which the stewardship organization or producer consulted with the advisory body created pursuant to Section 42422.4 to receive advice on the development and implementation of the plan.

(c)Provide for a free and convenient collection system for covered battery-embedded products in each county of the state that meets all of the following requirements:

(1)A minimum of ____ collection sites per county or one collection site per ____ people, whichever is greater.

(2)The department may adjust the minimum required collection sites to ensure that consumers have sufficient convenient access to collection sites.

(3)The collection sites in each county shall be reasonably spread throughout the county to facilitate widespread access and convenience.

(d)An explanation of the stewardship organization’s or producer’s plans to meet the minimum recycling efficiency rate for each battery chemistry type established by the department pursuant to the regulations adopted under Section 42420.4.

(e)An explanation of how collection sites will be authorized and managed, including all of the following:

(1)A producer or stewardship organization shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and comply with all applicable state and federal laws and regulations and the rules and conditions imposed by the stewardship organization or producer pursuant to paragraph (6), even if the minimum thresholds described in subdivision (c) have been achieved.

(2)A producer or stewardship organization shall include the offering entity as a collection site in the program within 90 days of receiving the written offer to participate. The producer or stewardship organization shall not be required to respond to offers pursuant to this paragraph until the producer’s or the stewardship organization’s stewardship plan has been approved by the department.

(3)A producer or stewardship organization may suspend or terminate a collection site or service that does not comply with all applicable state and federal laws and regulations or adhere to the rules and conditions imposed by the stewardship organization or producer pursuant to paragraph (6).

(4)A collection site shall be operated to ensure that covered battery-embedded products are collected safely and handled in accordance with all applicable state and federal laws and regulations.

(5)An explanation of the process by which the stewardship organization or producer will provide for collection and transport of covered battery-embedded products from the collection sites to a recycler. A receipt or collection manifest shall be provided to the collection site by the stewardship organization or producer. A collection site and stewardship organization or producer shall each maintain these records and make them available to the department upon request.

(6)A list of all rules or conditions imposed by the stewardship organization or producer as a condition of participation in the program for collection sites.

(7)A producer or stewardship organization shall evaluate and consider the implementation of an incentive structure for collection sites to achieve the purposes of this chapter.

(f)A producer or stewardship organization shall allow a consumer to drop off, at no charge, covered battery-embedded products at a collection site.

(g)Provide collection sites with the necessary equipment, training, signage, safety guidance, and educational materials.

(h)(1)The establishment and administration of a means for fully funding the stewardship program in a manner that equitably distributes the stewardship program’s costs among the producers that are part of the stewardship organization.

(2)The funding mechanism shall provide sufficient funding for the producer or stewardship organization to implement the plan, including the administrative, operational, and capital costs of the plan and the department’s and the Department of Toxic Substances Control’s actual and reasonable regulatory costs incurred to implement and enforce this chapter.

(i)A description of the process by which covered battery-embedded products will be processed and recycled following collection at collection sites, including both of the following:

(1)A description of how covered battery-embedded products will not be landfilled and how all covered battery-embedded products will enter a recycling process.

(2)A description of how discarded covered battery-embedded product residual materials will, to the extent economically and technically feasible, be recycled.

(j)Coordination with, and a description of methods used to coordinate activities with, all of the following:

(1)Other stewardship programs for covered battery-embedded products.

(2)Existing battery collection and recycling programs, including electronic waste recyclers and dismantlers.

(3)Community-based organizations qualified to run collection events to support regions with low rates of recycling.

(4)Other relevant stakeholders, as appropriate.

(k)Developing strategies, in consultation with the California Environmental Protection Agency’s Environmental Justice Task Force and other relevant stakeholders, for collecting covered battery-embedded products for recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.

(l)A comprehensive statewide education and outreach program designed to promote participation in the collection and recycling program offered by the stewardship organization. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:

(1)A detailed description of the education and communications strategy being implemented to effectively promote participation in the program and provide the information necessary for effective participation of consumers, retailers, and others.

(2)An internet website that publicizes the location of collection sites and provides detailed information to consumers on the free and convenient network of collection sites and any other information reasonably necessary to safely and conveniently access the collection and recycling services offered as part of this plan.

(3)All signage and materials required for collection sites by the stewardship organization or producer, and the method by which collection sites can access replacement materials.

(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English, as described in subdivision (k).

(5)A description of goals and metrics used to determine the success of the statewide education and outreach program.

(6)The statewide education and outreach program shall promote the safe and proper management of used covered battery-embedded products.

(7)The statewide education and outreach program shall not promote the disposal of covered battery-embedded products in a manner inconsistent with the services offered by the stewardship plan.

(8)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered battery-embedded products.

(m)Developing strategies in coordination with other stewardship programs to implement proper labeling of covered battery-embedded products to ensure proper collection and recycling, including, but not limited to, a uniform color, design, and labeling scheme for batteries.

(n)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the stewardship organization or producer, or through an entity such as an escrow company.

42422.3.

(a)A producer or stewardship organization shall review its stewardship plan no less than every five years and determine whether revisions to the plan are necessary.

(b)If a producer or stewardship organization determines that revisions to the plan are necessary, the producer or stewardship organization shall submit to the department a revised plan for review and approval in accordance with Section 42422.6.

(c)If a producer or stewardship organization determines that no revisions to the plan are necessary, the producer or stewardship organization shall send a letter to the department explaining that the producer or stewardship organization has reviewed the plan and determined that no revisions are needed. The department may disapprove the producer’s or stewardship organization’s determination within 30 days of receipt of that determination if the department concludes that the producer or stewardship organization cannot implement the objectives of this chapter without revising the stewardship plan.

42422.4.

(a)In preparing a stewardship plan pursuant to Section 42422.1 or 42422.2, and any updates to the plan pursuant to Section 42422.3, a producer or a stewardship organization shall engage in a consultative process with the advisory body created by the department pursuant to subdivision (b). The producer or stewardship organization shall consider any written recommendations from the advisory body during the plan development process.

(b)(1)On or before January 1, 2025, the department shall create an advisory body for covered battery and covered battery-embedded product stewardship that includes, but is not limited to, representatives from local governments, recyclers, retailers, the household hazardous waste industry, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, and the solid waste industry.

(2)Participation on the advisory body shall be voluntary.

(3)The advisory body is not a state body for purposes of Section 11121 of the Government Code.

(c)A producer or stewardship organization shall consider the advisory body’s recommendations. If the producer or stewardship organization decides not to incorporate the advisory body’s recommendations, the producer or stewardship organization shall provide a written explanation to the department and the advisory body that explains the basis for the decision and also indicates whether the producer or stewardship organization plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.

42422.6.

(a)(1)At least 90 days before submitting a stewardship plan to the department, a producer or stewardship organization shall submit a draft of its entire proposed stewardship plan to the Department of Toxic Substances Control for review.

(2)The Department of Toxic Substances Control shall review the plan only for compliance with state and federal laws and regulations within its jurisdiction. The Department of Toxic Substances Control shall identify any elements of the draft plan that would, if implemented, violate state or federal laws or regulations within its jurisdiction, and provide to the producer or stewardship organization, and the department, that determination and an explanation for any finding of noncompliance within 60 days of receipt of the plan. The producer or stewardship organization shall resolve all findings by the Department of Toxic Substances Control prior to submitting the stewardship plan to the department.

(3)If, 90 days after submitting a plan to the Department of Toxic Substances Control, a producer or stewardship organization has not received a response, the producer or stewardship organization may submit a certification to the department that the stewardship plan was submitted to the Department of Toxic Substances Control, as required, and a timely response was not received.

(4)A producer or stewardship organization shall submit to the department all determinations received from the Department of Toxic Substances Control when the producer or stewardship organization submits its stewardship plan to the department. If a stewardship organization disputes any of the Department of Toxic Substances Control’s determinations, the stewardship organization shall provide to the department an explanation of the basis for its dispute.

(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 90 days of receipt of the plan.

(c)If the department disapproves a stewardship plan submitted by a producer or stewardship organization, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the stewardship organization within 30 days of disapproval. The producer or stewardship organization may resubmit to the department a revised stewardship plan within 60 days of the disapproval date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, the producers operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by the producer or stewardship organization.

(d)Within 18 months of the effective date of the regulations adopted by the department pursuant to Section 42420.4, a producer or a stewardship organization shall have a complete stewardship plan approved by the department in order to be in compliance with this chapter.

(e)The approved plan shall be a public record, except that financial, production, or sales data reported to the department by the producer or stewardship organization is not a public record for purposes of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.

42422.8.

(a)Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42420.4, a producer or stewardship organization shall fully implement its stewardship program.

(b)All handling, collection, transport, and recycling of covered batteries or covered battery-embedded products undertaken as part of a stewardship program under this chapter shall comply with all applicable state and federal laws and regulations.

(c)A retailer with five or more locations in the state shall make all locations available to serve as a collection site for covered batteries and covered battery-embedded products smaller than ____ kilograms as part of a stewardship program in the county in which it is located.

(d)A producer or stewardship organization may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.

4.Financial Provisions

42423.

A stewardship organization or producer shall prepare and submit to the department, with the submission of a proposed stewardship plan, a proposed stewardship program budget for the next two calendar years that includes all of the following:

(a)Anticipated revenues and costs of implementing the stewardship program, including related programs, projects, contracts, and administrative expenses. Administrative expenses shall include the department’s and the Department of Toxic Substances Control’s actual regulatory costs incurred to implement and enforce this chapter consistent with the criteria for these costs, as established in the regulations adopted by the department pursuant to Section 42420.4. For purposes of this subdivision, stewardship program implementation begins once the department approves a stewardship organization’s or producer’s stewardship plan.

(b)A recommended funding level sufficient to cover the stewardship plan’s budgeted costs and to operate the stewardship program in a prudent and responsible manner over a multiyear period. For purposes of this subdivision, stewardship program operation begins once the department approves a stewardship organization’s or producer’s stewardship plan.

42423.2.

(a)Within 90 days of receipt, the department shall conditionally approve, approve, or disapprove a stewardship program budget. If the department fails to act or does not disapprove a final stewardship program budget within those 90 days, the budget shall be deemed approved.

(b)(1)If the department conditionally approves or disapproves the budget, the stewardship organization or producer may resubmit a revised budget addressing the department’s written reasons for the department’s decision within 30 days of the conditional approval or disapproval or may notify the department of the stewardship organization’s or producer’s intention not to do so and withdraw its application.

(2)The department, within 60 days from the date the stewardship organization or producer resubmits a revised budget, shall approve or disapprove a final stewardship program budget. If the department fails to act or does not disapprove a final stewardship program budget within those 60 days, the budget shall be deemed approved.

(c)If the department disapproves a revised budget submitted pursuant to paragraph (1) of subdivision (b), the producer or stewardship organization may submit only one additional revised budget, subject to review in accordance with paragraph (2) of subdivision (b).

(d)Until a budget has been approved or deemed approved pursuant to this section, a stewardship organization or producer shall make expenditures consistent with the most recent department-approved budget.

42423.4.

(a)No later than 90 days before a budget is submitted to the department, the department and the Department of Toxic Substances Control shall notify each stewardship organization, and each producer that is not part of a stewardship organization, of the agency’s respective actual and reasonable regulatory costs that are anticipated to be directly related to implementing and enforcing this chapter in relation to the stewardship organization’s or producer’s activities. This may include a share of the direct costs associated with regulatory development pursuant to Section 42420.4.

(b)Producers and stewardship organizations shall, on a schedule determined by the department, reimburse the department and the Department of Toxic Substances Control for incurred costs as described in subdivision (a). The reimbursement shall not exceed the department’s or the Department of Toxic Substances Control’s actual and reasonable regulatory costs to implement and enforce this chapter.

(c)(1)The department and the Department of Toxic Substances Control shall deposit all moneys received from a stewardship organization or producer pursuant to this section into the Covered Battery and Covered Battery-Embedded Product Recycling Fund, which is hereby established in the State Treasury.

(2)Upon appropriation by the Legislature, moneys in the Covered Battery and Covered Battery-Embedded Product Recycling Fund shall be expended by the department and any other state agency with jurisdiction relevant to this chapter to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance startup costs of the department’s and any other state agency’s activities pursuant to this chapter.

(3)The moneys in the Covered Battery and Covered Battery-Embedded Product Recycling Fund shall not be expended for any other purpose.

5.Records, Audits, and Reports for Covered Batteries and Covered Battery-Embedded Products

42424.

(a)A stewardship organization or producer shall keep minutes, books, and records that clearly reflect the activities and transactions of the stewardship organization or producer.

(b)A stewardship organization or producer shall retain, at the stewardship organization’s or producer’s expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the stewardship organization or producer.

(c)The stewardship organization or producer shall arrange for the audit to be delivered to the department with the following year’s annual report, commencing with the first year after the stewardship organization’s or producer’s stewardship plan is approved by the department. The department shall review the audit for compliance with this chapter and consistency with the stewardship organization’s or producer’s stewardship plan. The department shall notify the stewardship organization or producer of any compliance issues or inconsistencies.

(d)The department may conduct its own audit if it determines that an audit is necessary to enforce the requirements of this chapter and that the audit conducted pursuant to subdivision (b) is not adequate for this purpose. The stewardship organization or producer may obtain copies of the department’s audit upon request.

(e)The department shall not publicly disclose any confidential proprietary information in an audit conducted pursuant to this section.

42424.2.

A stewardship organization or producer shall annually submit to the department, in the form and manner determined by the department, an annual report, which the department shall make publicly available on its internet website, that includes all of the following information for the preceding calendar year:

(a)The stewardship organization’s or producer’s costs and revenues.

(b)An estimate of the quantity of covered batteries and covered battery-embedded products sold in the state by the producer or producers covered by the stewardship organization, as calculated by the best available commercial information, and the discarded covered batteries or covered battery-embedded products collected for recycling through the stewardship program.

(c)A list of the stewardship program’s collection sites, by name, location, and type.

(d)The total weight of each battery chemistry type that was collected.

(e)A list of each battery recycling facility used by the stewardship program, by name and location.

(f)A list of each battery-embedded product recycling facility used by the stewardship program, by name and location.

(g)An updated list of the names and locations of producers, manufacturers, distributors, importers, brands, and covered batteries and covered battery-embedded products covered under the stewardship plan.

(h)The total weight and number of covered batteries and covered battery-embedded products collected and recycled in the state by the stewardship organization or producer during the preceding calendar year, including a description of the methodology used to determine or calculate these values.

(i)The recycling efficiency rate of each battery chemistry type that was recycled.

(j)The total weight of residual materials from covered battery-embedded products.

(k)The uses for the recycled residual materials from covered battery-embedded products.

(l)The weight of residual materials from covered battery-embedded products by material type that were recycled and not recycled.

(m)A description of methods used to collect, transport, and recycle covered batteries or covered battery-embedded products, by the stewardship organization, an agent of the stewardship organization, or a service provider contracted with the stewardship organization.

(n)A description of outreach efforts and education to consumers, manufacturers, distributors, and retailers by the stewardship organization, an agent of the stewardship organization, or a service provider contracted with the stewardship organization for the purpose of promoting the collection and recycling of covered batteries or covered battery-embedded products.

(o)(1)A report on coordination activities with other stewardship programs, including covered battery or covered battery-embedded product collection and recycling programs and electronic waste recyclers, with regard to the proper management or recycling of discarded covered batteries or covered battery-embedded products, for purposes of providing the efficient delivery of services and avoiding unnecessary duplication of effort and expense.

(2)A description of strategies in coordination with other stewardship programs to implement proper labeling of covered batteries and covered battery-embedded products to ensure proper collection and recycling.

(p)Findings from the periodic evaluation of the comprehensive statewide education and outreach program required by paragraph (9) of subdivision (l) of Section 42422.1.

(q)A description of any consultation with the California Environmental Protection Agency’s Environmental Justice Task Force and other relevant stakeholders for collecting covered batteries or covered battery-embedded products for recycling in areas and communities that face unique challenges.

(r)A demonstration of actions taken by the stewardship organization or producer to comply with the requirements established pursuant to Section 42422.1 or 42422.2.

(s)(1)A report on activities the stewardship organization or producer has undertaken in relation to all of the following:

(A)Meeting the requirements established pursuant to Section 42422.1 or 42422.2.

(B)Making progress on meeting the requirements established pursuant to Section 42422.1 or 42422.2.

(C)Making progress on planned efforts to meet the requirements established pursuant to Section 42422.1 or 42422.2.

(2)Factors to be considered for purposes of paragraph (1) may include, but are not limited to, availability of takeback options and no-cost local curbside collections services, proximity to recyclers and no-cost collection points and events, and the state of current recycling technology.

(t)A report on activities the stewardship organization or producer has undertaken to prioritize the use of recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability.

(u)If the producer or stewardship organization determines during a particular year that any of the activities undertaken to implement subdivision (t) were unsuccessful, the stewardship organization or producer shall identify the problems with the current activities, and report on other activities undertaken and progress made, in the following year’s annual report. These modifications shall be made pursuant to the requirements of Section 42422.3.

(v)An electronic copy in the form and manner determined by the department, and specified in the regulations adopted by the department pursuant to Section 42420.4, of any report completed by the stewardship organization or producer during the period covered by the annual report and a brief explanation of how the stewardship organization or producer anticipates the activities may benefit the stewardship program. The stewardship organization or producer shall make these reports publicly available free of charge. If the report contains trade secret or confidential information protected under existing law, the stewardship organization or producer shall only be required to provide a description of the information and its relevance to the stewardship program that omits any of the trade secret or confidential information.

(w)The progress toward attaining the goals included in the stewardship organization’s or producer’s stewardship plan.

(x)Any modifications or revisions to the stewardship plan, including those required pursuant to Section 42422.3, which are subject to review under Section 42422.6, intended to achieve the requirements established pursuant to Section 42422.1 or 42422.2.

(y)Any other information deemed relevant by the producer or stewardship organization for the department to determine compliance with the approved stewardship plan.

42424.4.

(a)No later than 90 days after the date the department receives the annual report submitted by a stewardship organization or producer pursuant to Section 42424.2, the department shall notify the stewardship organization or producer of any deficiencies in the annual report. No later than 60 days after receiving this notice from the department, the stewardship organization or producer shall provide additional information, modifications, or corrections in response to the department’s notification, or shall notify the department that the stewardship organization or producer intends to terminate its stewardship program.

(b)Any proposed activities in the annual report shall be evaluated by the department for progress and shall be taken into consideration when approving, disapproving, or conditionally approving the report.

(c)Within 90 days of receipt of an annual report deemed complete pursuant to subdivision (a), the department shall review the report for compliance with this chapter and shall approve, disapprove, or conditionally approve the annual report. If the department fails to act within 90 days of receipt of the report, the report shall be deemed approved.

(d)(1)If the department conditionally approves or disapproves the annual report, the stewardship organization or producer shall resubmit a revised annual report addressing the department’s written reasons for its decision or notify the department of its intent to terminate its participation in the program within 30 days of the conditional approval or disapproval.

(2)The department, within 60 days from the date a stewardship organization or producer resubmits a revised annual report, shall approve or disapprove a final annual report. If the department fails to act or does not disapprove a final annual report within those 60 days, the annual report shall be deemed approved.

(3)If the department disapproves a revised annual report submitted pursuant to paragraph (1), the stewardship organization or producer may submit only one additional revised annual report, subject to review in accordance with paragraph (2).

6.Enforcement

42425.

(a)On or before July 1, 2027, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands and names of covered batteries and covered battery-embedded products for each producer.

(b)A producer that is not listed on the department’s internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may request a certification letter from the department stating that the producer, brand, or a covered battery or covered battery-embedded product is in compliance with this chapter. A producer that receives this letter shall be deemed to be listed as compliant on the department’s internet website.

(c)(1)A retailer or distributor shall monitor the department’s internet website to determine if a producer, brand, or covered battery or covered battery-embedded product is in compliance with this chapter for that brand or covered battery or covered battery-embedded product.

(2)Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42422.4, a retailer or distributor shall not sell, distribute, offer for sale, or import a covered battery or covered battery-embedded product in or into the state unless the producer of the covered battery or covered battery-embedded product is listed as in compliance pursuant to subdivision (a) for that brand and covered battery or covered battery-embedded product.

(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may sell or distribute a covered battery or covered battery-embedded product if, on the date the retailer or distributor ordered or purchased the covered battery or covered battery-embedded product, the producer, brand, or covered battery or covered battery-embedded product was listed as compliant on the department’s internet website.

(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory.

(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered batteries or covered battery-embedded products, from the list of compliant producers posted on the department’s internet website pursuant to subdivision (a).

(2)The department shall relist on its internet website a producer, along with its brands and covered batteries or covered battery-embedded products, if the department subsequently determines that the producer is in compliance with this chapter.

42425.2.

(a)The department may impose an administrative civil penalty on a producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day.

(b)The department shall deposit all penalties collected pursuant to this section into the Covered Battery and Covered Battery-Embedded Product Recycling Penalty Account, which is hereby created in the Covered Battery and Covered Battery-Embedded Product Recycling Fund. Upon appropriation by the Legislature, these moneys shall be available for expenditure pursuant to paragraph (2) of subdivision (c) of Section 42423.4.

(c)Nothing in this chapter shall limit or restrict the Department of Toxic Substances Control’s enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations.

42425.4.

(a)Upon a written finding that a producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:

(1)Revoke the stewardship organization’s or producer’s stewardship plan approval or require the stewardship organization or producer to resubmit the plan.

(2)Remove the producer, along with its brands and covered batteries or covered battery-embedded products, from the department’s list of compliant producers, as specified in Section 42425.

(3)Impose additional compliance reporting requirements.

(b)If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the stewardship organization or producer that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42425.2, sell or offer for sale covered batteries or covered battery-embedded products in the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.

42425.6.

(a)A producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site shall do both of the following:

(1)Upon request, provide the department with reasonable and timely access, as determined by the department and as authorized pursuant to Title 13 (commencing with Section 1822.50) of Part 3 of the Code of Civil Procedure, to its facilities and operations, as necessary to determine compliance with this chapter.

(2)Upon request, provide the department and the Department of Toxic Substances Control with relevant records necessary to determine compliance with this chapter.

(b)The records required by this chapter shall be maintained and accessible for three years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.

(c)(1)The department may impose administrative civil penalties pursuant to Section 42425.2 on a producer, stewardship organization, manufacturer, distributor, retailer, importer, recycler, or collection site that fails to provide the department with the access required pursuant to this section.

(2)The department may post a notice on the department’s internet website pursuant to Section 42425 that a producer that fails to provide the department with access pursuant to this section, along with the producer’s brands and covered batteries or covered battery-embedded products, is no longer in compliance with this chapter.

7.Antitrust Immunity

42426.

(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a stewardship organization or producer that relates to any of the following is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).

(b)Subdivision (a) applies to all of the following actions taken by a stewardship organization or producer:

(1)The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42422) and the determination of the types or quantities of covered batteries or covered battery-embedded products recycled or otherwise managed pursuant to a stewardship plan.

(2)The determination of the cost and structure of an approved stewardship plan.

(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.

(c)Subdivision (a) does not apply to an agreement that does any of the following:

(1)Fixes a price of or for covered batteries or covered battery-embedded products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.

(2)Fixes the output or production of covered batteries or covered battery-embedded products.

(3)Restricts the geographic area in which, or customers to whom, covered batteries or covered battery-embedded products will be sold.

8.Preemption and Interstate Collaboration

42427.

(a)This chapter preempts all rules, regulations, codes, ordinances, and other laws adopted by a city, county, city and county, municipality, or local agency on or after January 1, 2023, regarding stewardship programs for covered batteries, covered battery-embedded products, or both covered batteries and covered battery-embedded products.

(b)The Legislature finds and declares that the recycling of covered batteries and covered battery-embedded products is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities.

42428.

If another state implements a covered battery or covered battery-embedded products recycling program, a stewardship organization or producer may, consistent with the requirements of this chapter, collaborate with that state to conserve resources necessary to efficiently manage and implement the stewardship organization’s or producer’s stewardship program in this state.

SEC. 2.Article 5 (commencing with Section 42457) is added to Chapter 8.4 of Part 3 of Division 30 of the Public Resources Code, to read:

5.Repeal

42457.

This chapter shall become inoperative on September 30, 2026, and, as of January 1, 2027, is repealed.

SEC. 3.Article 7 (commencing with Section 42499.5) is added to Chapter 8.6 of Part 3 of Division 30 of the Public Resources Code, to read:

7.Repeal

42499.5.

This chapter shall become inoperative on September 30, 2026, and, as of January 1, 2027, is repealed.

SEC. 4.

The Legislature finds and declares that Section 1 of this act, which adds Chapter 7.5 (commencing with Section 42420) to Part 3 of Division 30 of the Public Resources Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

In order to ensure that the competitive market in the state for the manufacture and sale of batteries and battery-embedded products is not compromised, it is necessary that financial, production, and sales data and confidential proprietary information collected for the purpose of administering a stewardship program be confidential.

SEC. 5.

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.