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AB-1535 Electronic waste: fee payment.(2007-2008)

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AB1535:v98#DOCUMENT

Amended  IN  Assembly  January 07, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 1535

Introduced  by  Assembly Member Huffman
 (Principal Coauthor(s): Assembly Member Lieber)
 (Coauthor(s): Assembly Member Brownley, Hancock, Leno, Levine, Saldana, Wolk)
 (Coauthor(s): Senator Migden)

February 23, 2007

An act to amend Section 25214.10.1 of the Health and Safety Code, and to amend Sections 42463 and 42464 of the Public Resources Code, and to amend Sections 42464.2 and 42465.2 of, to amend, repeal and add Section 42464 of, and to repeal Section 42465.3 of, the Public Resources Code, relating to electronic waste, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1535, as amended, Huffman. Electronic waste: personal computers. fee payment.
(1) The Electronic Waste Recycling Act of 2003 requires a retailer selling a covered electronic device in this state to collect a covered electronic waste recycling fee from the consumer. These fees are deposited in the Electronic Waste Recovery and Recycling Account, and the money moneys in the account is are continuously appropriated to the California Integrated Waste Management Board and the Department of Toxic Substances Control for electronic waste recovery payments and recycling payments and for payments to manufacturers to cover the costs of collecting, consolidating, transporting, receiving, processing, and recycling covered electronic waste in this state. The board is required to review the amount of the fee at least biennially and to adjust the fee based on the sufficiency of revenues in the account to fund the collection, consolidation, and recycling of electronic waste and to administer, enforce, and promote the act, plus a specified prudent reserve.
The term “covered electronic device” is defined, for purposes of the act, as a video display device that the department determines is presumed to be, when discarded, a hazardous waste pursuant to the hazardous waste control laws. A violation of the act is a crime.
This bill would provide that, on and after July 1, 2008, a covered electronic device also includes a personal computer, as defined, thereby imposing a state-mandated local program by creating new crimes. A retailer would be required to collect of fee of $6 from the consumer at the time of the retail sale of the personal computer, except as specified instead require, as of July 1, 2009, the manufacturer of the covered electronic device to pay the fee on every new or refurbished covered electronic device sold or offered for sale in this state by the manufacturer. Conforming changes to the act would be also be made by the bill with regard to those electronic devices the payment of the fee by a manufacturer. The bill would impose a state-mandated local program by creating a new crime with regard to the payment of the fee.
The bill would also require the board, when reviewing the amount of the fee, to consider, when adjusting the fee, the relative average cost of recycling a covered electronic device for each of 3 designated device categories, classified by screen size.
The bill would make an appropriation, because the increased fees imposed on the sales of personal computers authorized by the bill would be deposited in a continuously appropriated fund.
(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 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) (u) of Section 42463 of the Public Resources Code, with a screen size of greater than four inches.
(2) “Covered electronic device,” “manufacturer,” and “retailer” have the same meaning as those terms are defined 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.

(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)

(c) (1) Except as provided in subdivision (e) (d), 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) (d), 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)

(d) (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 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 subdivision (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 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 and the State Board of Equalization.

(f)

(e) Notwithstanding Section 42474 of the Public Resources Code, a fine or penalty shall not be assessed on a retailer manufacturer 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 to inform the retailer manufacturer that the electronic device was subject to the fee.

SEC. 2.

 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, 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) Except as provided in subdivision (d), 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) (1) A retailer may retain 3 percent of the covered electronic waste recycling fee as reimbursement for all costs associated with the collection of 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), and the conditions of subparagraphs (A), (B), and (C) of paragraph (2) of subdivision (d) 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 the fee and the vendor shall transmit the remainder of the fee to the state pursuant to Section 42464.4.
(d) (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 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) The retailer shall separately state the covered electronic waste recycling fee on the receipt given to the consumer at the time of sale.
(f) On or before August 1, 2005, and, thereafter, no more frequently than annually, and no less frequently than biennially, the board, in collaboration with the department, shall review, at a public hearing, the covered electronic waste recycling fee 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 shall base an adjustment of the covered electronic waste recycling fee 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 and the department 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.
(g) This section shall become inoperative on July 1, 2009, and, as of January 1, 2010, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2010, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 3.

 Section 42464 is added to the Public Resources Code, to read:

42464.
 (a) On and after July 1, 2009, or as otherwise provided by Section 25214.10.1 of the Health and Safety Code, a manufacturer shall pay a covered electronic waste recycling fee on every new or refurbished covered electronic device sold or offered for sale in this state by the manufacturer or by a retailer, 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) On or before August 1, 2009, and thereafter, no more frequently than annually, and no less frequently than biennially, the board, in collaboration with the department, shall review, at a public hearing, the covered electronic waste recycling fee 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 shall base an adjustment of the covered electronic waste recycling fee on all 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 and the department 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.
(3) The relative average cost of recycling a covered electronic device for each category specified in paragraphs (1) to (3), inclusive, of subdivision (a).
(c) A manufacturer is not required to pay the covered electronic waste fee for a covered electronic device for which a payment has been made pursuant to this section.
(d) This section shall become operative July 1, 2009.

SEC. 4.

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

42464.2.
 (a) The State Board of Equalization 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) of Section 42464 means a manufacturer.
(b) The State Board of Equalization shall adopt a form for reporting, and determine the manner in which a retailer shall report, to a manufacturer the number of reporting sales of covered electronic devices sold by the manufacturer to the retailer that were subsequently sold by that retailer.
(c) A retailer shall provide a manufacturer with report of each covered electronic device that the retailer purchased from the manufacturer and subsequently sold, in accordance with the form adopted, and in the manner determined, by the State Board of Equalization.

SEC. 5.

 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, each manufacturer of a covered electronic device sold in this state shall do all of the following:
(1) Submit to the board 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 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 materials contained in covered electronic devices sold by the manufacturer in that year and the increase in the use of those recyclable 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, 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, information labeled on the device, information included in the packaging, or information accompanying the sale of 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 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 25214.10 of the Health and Safety Code:
(A) The manufacturer submits written verification to the department that demonstrates, to the satisfaction of the department, 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 pursuant to this subdivision.
(B) The department 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 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 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. 6.

 Section 42465.3 of the Public Resources Code is repealed.
42465.3.

A manufacturer of a covered electronic device shall comply with the notification requirements of subdivision (c) of Section 25214.10.1 of the Health and Safety Code.

SEC. 7.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.