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AB-1022 Electronic waste: CRT glass market development payments.(2013-2014)

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Amended  IN  Senate  August 12, 2013
Amended  IN  Senate  July 09, 2013
Amended  IN  Assembly  April 23, 2013

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 1022


Introduced by Assembly Member Eggman
(Coauthors: Assembly Members Chesbro and Skinner)

February 22, 2013


An act to amend Sections 42463 and 42476 of, and to add and repeal Section 42479.5 of, the Public Resources Code, relating to recycling and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1022, as amended, Eggman. Electronic waste: CRT glass market development payments.
Existing law, 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, as specified. These fees are deposited in the Electronic Waste Recovery and Recycling Account, and the Department of Resources Recycling and Recovery is continuously appropriated the money in the account to, among other things, make electronic waste recovery payments and recycling payments.
This bill would require the department, in consultation with the Department of Toxic Substances Control, to make CRT glass, as defined, market development payments processing payments or CRT glass market development manufacturing payments to a CRT glass processor, a CRT glass manufacturer, or an electronic waste recycler who processes for use or uses CRT glass to manufacture a product in this state processes eligible CRT glass for use in a product or in a manufacturing process, or utilizes eligible CRT glass in a product or in a manufacturing process, pursuant to a specified claims procedure. The bill would repeal the requirement to make these payments on January 1, 2020. The bill would additionally authorize the expenditure of not more than $10,000,000 each year of the continuously appropriated funds for the purpose of making those market development payments, payments until January 1, 2020.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 42463 of the Public Resources Code is amended to read:

42463.
 For the purposes of this chapter, the following terms have the following meanings, unless the context clearly requires otherwise:
(a) “Account” means the Electronic Waste Recovery and Recycling Account created in the Integrated Waste Management Fund under Section 42476.
(b) “Authorized collector” means any of the following:
(1) A city, county, or district that collects covered electronic devices.
(2) A person or entity that is required or authorized by a city, county, or district to collect covered electronic devices pursuant to the terms of a contract, license, permit, or other written authorization.
(3) A nonprofit organization that collects or accepts covered electronic devices.
(4) A manufacturer or agent of the manufacturer that collects, consolidates, and transports covered electronic devices for recycling from consumers, businesses, institutions, and other generators.
(5) An entity that collects, handles, consolidates, and transports covered electronic devices and has filed applicable notifications with the department pursuant to Chapter 23 (commencing with Section 66273.1) of Division 4.5 of Title 22 of the California Code of Regulations.
(c) “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) “CRT glass” means glass released or derived from the treatment or breakage of a cathode ray tube that is from or part of a covered electronic device.
(e) “CRT glass manufacturer” means a person who produces or manufactures a product containing recycled CRT glass in the state.
(f) “CRT glass processor” means a person who processes CRT glass in a manner that separates the hazardous components from the glass in a manner that allows the nonhazardous glass to be recycled.
(g) Notwithstanding Section 40118, “department” means the Department of Toxic Substances Control.
(h) (1) Except as provided in paragraph (2), “covered electronic device” means a video display device containing a screen greater than four inches, measured diagonally, that is identified in the regulations adopted by the department pursuant to subdivision (b) of Section 25214.10.1 of the Health and Safety Code.
(2) “Covered electronic device” does not include any of the following:
(A) A video display device that is a part of a motor vehicle, as defined in Section 415 of the Vehicle Code, or any component part of a motor vehicle assembled by, or for, a vehicle manufacturer or franchised dealer, including replacement parts for use in a motor vehicle.
(B) A video display device that is contained within, or a part of a piece of industrial, commercial, or medical equipment, including monitoring or control equipment.
(C) A video display device that is contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air-conditioner, dehumidifier, or air purifier.
(D) An electronic device, on and after the date that it ceases to be a covered electronic device under subdivision (e) of Section 25214.10.1 of the Health and Safety Code.
(i) “Covered electronic waste” or “covered e-waste” means a covered electronic device that is discarded.
(j) “Covered electronic waste recycling fee” or “covered e-waste recycling fee” means the fee imposed pursuant to Article 3 (commencing with Section 42464).
(k) “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.
(l) “Discarded” has the same meaning as defined in subdivision (b) of Section 25124 of the Health and Safety Code.
(m) “Electronic waste recovery payment” means an amount established and paid by the Department of Resources Recycling and Recovery pursuant to Section 42477.
(n) “Electronic waste recycling payment” means an amount established and paid by the Department of Resources Recycling and Recovery pursuant to Section 42478.
(o) “Hazardous material” has the same meaning as defined in Section 25501 of the Health and Safety Code.
(p) “Manufacturer” means either of the following:
(1) A person who manufactures a covered electronic device sold in this state.
(2) A person who sells a covered electronic device in this state under that person’s brand name.
(q) “Person” means an individual, trust 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.
(r) “Recycling” has the same meaning as defined in subdivision (a) of Section 25121.1 of the Health and Safety Code.
(s) “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.
(t) “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.
(u) (1) “Retail sale” has the same meaning as defined under Section 6007 of the Revenue and Taxation Code.
(2) “Retail sale” does not include the sale of a covered electronic device that is temporarily stored or used in California for the sole purpose of preparing the covered electronic device for use thereafter solely outside the state, and that is subsequently transported outside the state and thereafter used solely outside the state.
(v) “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.
(w) “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. 2.

 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).
(5) To make market development payments for CRT glass pursuant to Section 42479.5, in an amount of no more than ten million dollars ($10,000,000) each year, until January 1, 2020.
(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 and the department.
(B) To reimburse the State Board of Equalization for its administrative costs of registering, collecting, making refunds, and auditing retailers and consumers in connection with the covered electronic waste recycling fee imposed under Section 42464.
(C) To provide funding to the department to implement and enforce Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code, as that chapter relates to covered electronic devices, and any regulations adopted by the department pursuant to that chapter.
(D) To establish the public information program specified in subdivision (d).
(2) Any fines or penalties collected pursuant to this chapter shall be deposited in the Electronic Waste Penalty Subaccount, which is hereby established in the account. The funds in the Electronic Waste Penalty Subaccount may be expended by the Department of Resources Recycling and Recovery or the department only upon appropriation by the Legislature.
(c) Notwithstanding Section 16475 of the Government Code, any interest earned upon funds in the Electronic Waste Recovery and Recycling Account shall be deposited in that account for expenditure pursuant to this chapter.
(d) Not more than 1 percent of the funds annually deposited in the Electronic Waste Recovery and Recycling Account shall be expended for the purposes of establishing the public information program to educate the public in the hazards of improper covered electronic device storage and disposal and on the opportunities to recycle covered electronic devices.
(e) The Department of Resources Recycling and Recovery shall adopt regulations specifying cancellation methods for the recovery, processing, or recycling of covered electronic waste.
(f) The Department of Resources Recycling and Recovery may pay an electronic waste recycling payment or electronic waste recovery payment only for covered electronic waste that meets all of the following conditions:
(1) (A) The covered electronic waste is demonstrated to have been generated by a person who used the covered electronic device while located in this state.
(B) Covered electronic waste generated outside of the state and subsequently brought into the state is not eligible for payment.
(C) The Department of Resources Recycling and Recovery shall establish documentation requirements for purposes of this paragraph that are necessary to demonstrate that the covered electronic waste was generated in the state and eligible for payment.
(2) The covered electronic waste, including any residuals from the processing of the waste, is handled in compliance with all applicable statutes and regulations.
(3) The manufacturer or the authorized collector or recycler of the electronic waste provides a cost-free and convenient opportunity to recycle electronic waste, in accordance with the legislative intent specified in subdivision (b) of Section 42461.
(4) If the covered electronic waste is processed, the covered electronic waste is processed in this state according to the cancellation method authorized by the Department of Resources Recycling and Recovery.
(g) The Legislature hereby declares that the state is a market participant in the business of the recycling of covered electronic waste for all of the following reasons:
(1) The fee is collected from the state’s consumers for covered electronic devices sold for use in the state.
(2) The purpose of the fee and subsequent payments is to prevent damage to the public health and the environment from waste generated in the state.
(3) The recycling system funded by the fee ensures that economically viable and sustainable markets are developed and supported for recovered materials and components in order to conserve resources and maximize business and employment opportunities within the state.
(h) (1) The Department of Resources Recycling and Recovery may make a payment to a manufacturer that takes back a covered electronic device from a consumer in this state for purposes of recycling the device at a processing facility. The amount of the payment made by the Department of Resources Recycling and Recovery shall equal the value of the covered electronic waste recycling fee paid for that device. To qualify for a payment pursuant to this subdivision, the manufacturer shall demonstrate both of the following to the Department of Resources Recycling and Recovery:
(A) The covered electronic device for which payment is claimed was used in this state.
(B) The covered electronic waste for which a payment is claimed, including any residuals from the processing of the waste, has been, and will be, handled in compliance with all applicable statutes and regulations.
(2) A covered electronic device for which a payment is made under this subdivision is not eligible for an electronic waste recovery payment or an electronic waste recycling payment under Section 42479.

SEC. 3.

 Section 42479.5 is added to the Public Resources Code, to read:

42479.5.
 (a) The Department of Resources Recycling and Recovery, in consultation with the department, shall make CRT glass market development processing payments or CRT glass market development manufacturing payments to a CRT glass processor, a CRT glass manufacturer, or an electronic waste recycler who processes for use or uses CRT glass to manufacture a product in this state. does either of the following, as applicable:
(1)  Processes eligible CRT glass in this state for use in a product or in a manufacturing process.
(2) Utilizes eligible CRT glass processed pursuant to paragraph (1) in a product or in a manufacturing process in this state.
(b) (1) The CRT glass processor, CRT glass manufacturer, or electronic waste recycler that seeks a market development processing payment or a or CRT glass market development manufacturing payment shall submit a CRT glass development payment claim to the Department of Resources Recycling and Recovery for each calendar quarter in which the payment is being claimed, in the form and manner that the Department of Resources Recycling and Recovery may prescribe.
(2) The Department of Resources Recycling and Recovery may make a CRT glass market development processing payment to a CRT glass processor, CRT glass manufacturer, or electronic waste recycler only if the Department of Resources Recycling and Recovery determines both all of the following:
(A) The CRT glass processor, CRT glass manufacturer, or electronic waste recycler demonstrates to the Department of Resources Recycling and Recovery and to the Department of Toxic Substances Control department that it is in compliance with all applicable laws.
(B) The CRT glass is eligible for an electronic waste recovery payment or an electronic waste recycling payment, as applicable, pursuant to Section 42476.

(B)

(C) The CRT glass processor, CRT glass manufacturer, or electronic waste recycler will further process the CRT glass for use or use the CRT glass to manufacture a product in this state. in a manner that, in addition to complying with the requirements of Section 42476, removes any hazardous materials and renders the material ready for use as a product or in a manufacturing process in the United States.
(3) The Department of Resources Recycling and Recovery may make a CRT glass market development manufacturing payment to a CRT glass processor, CRT glass manufacturer, or electronic waste recycler only if the Department of Resources Recycling and Recovery determines both of the following:
(A) The CRT glass is processed in compliance with paragraph (2).
(B) The processed CRT glass will be utilized in a product manufactured in this state or used in a manufacturing process in this state.
(c)  This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.