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AB-142 Lead-acid batteries.(2019-2020)

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Date Published: 05/22/2019 09:00 PM
AB142:v96#DOCUMENT

Amended  IN  Assembly  May 22, 2019
Amended  IN  Assembly  May 16, 2019
Amended  IN  Assembly  February 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 142


Introduced by Assembly Member Cristina Garcia
(Coauthors: Assembly Members Carrillo and Santiago)

December 13, 2018


An act to amend Sections 25215.1, 25215.2, 25215.25, 25215.35, 25215.45, 25215.5, and 25215.56 of, and to add Sections 25215.3 and 25215.48 25215.11, 25215.3, 25215.48, 25215.51, 25215.61, and 25215.62 to, the Health and Safety Code, relating to hazardous waste, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 142, as amended, Cristina Garcia. Lead-acid batteries.

The

(1) The Lead-Acid Battery Recycling Act of 2016 prohibits a person from disposing, or attempting to dispose, of a lead-acid battery at a solid waste facility or on or in any land, surface waters, watercourses, or marine waters, but authorizes a person to dispose of a lead-acid battery at certain locations. The act requires, until March 31, 2022, a manufacturer battery fee of $1 to be imposed on a manufacturer of lead-acid batteries for each lead-acid battery it sells at retail to a person in California, or that it sells to a dealer, wholesaler, distributor, or other person for retail sale in California. The act requires the manufacturer battery fee to be paid to the California Department of Tax and Fee Administration and requires dealers and manufacturers of lead-acid batteries to register with the department. The act defines “manufacturer” for these purposes.
This bill would, on and after April 1, 2022, increase the amount of the manufacturer battery fee to $2 and would provide that the fee would continue indefinitely. The bill, on and after January 1, 2020, would authorize a person who manufactures a lead-acid battery and is not subject to the jurisdiction of the state to agree in writing with the importer, as defined, of that lead-acid battery to pay the manufacturer battery fee on behalf of the importer. The bill would exempt an importer who has an agreement of this type with a manufacturer, and who meets other specified requirements, from the requirement to register with the department. The bill would require the department, on or before January 1, 2022, to submit to the Legislature a report that includes, among other things, any regulations or policies adopted by the department for purposes of ensuring compliance with the registration, returns, reporting, payments, audits, refunds, or collection requirements related to the manufacturer battery fee.
The bill would require a manufacturer, if a battery, as defined, will be sold or used in a manner or for a purpose entitling the manufacturer to regard the purchase as not subject to the manufacturer battery fee, to obtain a written exclusion certificate from the purchaser certifying that the battery will be used in a manner or for a purpose entitling the manufacturer to regard the purchase as not subject to the manufacturer battery fee. The bill would relieve a manufacturer that accepts an exclusion certificate in good faith from the fee collection responsibility for the manufacturer battery fee.
The act requires manufacturer battery fees remitted pursuant to the act to be credited against amounts owed by the manufacturer to the state under a judgment or determination of liability under specific hazardous materials provisions or any other law for removal, remediation, or other response costs relating to a release of a hazardous substance from a lead-acid battery recycling facility.
This bill would additionally require that manufacturer battery fees remitted pursuant to the act be credited to the account of the manufacturer remitting those fees. The bill would require that a person who agrees in writing to pay the manufacturer battery fee on behalf of an importer be credited for a payment of the manufacturer battery fee only if certain conditions are met, including that the person provide to the purchaser of a lead-acid battery a statement that includes specified information on the invoice, contract, or other record documenting the transaction. The bill would relieve a purchaser of a lead-acid battery who receives that statement in a timely manner, and any subsequent purchaser of that battery, from liability for the manufacturer battery fee that would otherwise be imposed on the sale of that battery, provided that the manufacturer remits payment of the manufacturer battery fee to the state for the sale of that battery. The bill would authorize an importer who has paid the manufacturer battery fee and who receives an untimely statement that the fee has been paid for that battery to file a claim for a refund of any overpaid fees.
The bill would authorize the department to disclose the name, address, account number, and account status of a person registered with the department to pay the manufacturer battery fee. The bill would provide that account status does not include the amount of the manufacturer battery fee paid by any person.

The act requires a specified portion of moneys from the manufacturer battery fee to be deposited into the Lead-Acid Battery Cleanup Fund and provides that moneys in the fund are available upon appropriation by the Legislature to the Department of Toxic Substances Control for specified activities, including the repayment of specified loans.

This bill would authorize expenditure of moneys from the Lead-Acid Battery Cleanup Fund for the repayment of those loans only after the other specified activities have been fully funded.

The

(2) The act imposes a California battery fee on a person for specified types of replacement lead-acid batteries purchased from a dealer.
This bill would provide, on and after January 1, 2020, if a new motor vehicle dealer sells or leases to a person a used vehicle into which the new motor vehicle dealer has incorporated a replacement lead-acid battery, that the California battery fee does not apply to the person with regard to that replacement lead-acid battery.
The bill would require a dealer, if a battery, as defined, will be sold or used in a manner or for a purpose entitling the dealer to regard the purchase as not subject to the California battery fee, to obtain a written exclusion certificate from the purchaser certifying that the battery will be used in a manner or for a purpose entitling the dealer to regard the purchase as not subject to the California battery fee. The bill would relieve a dealer that accepts an exclusion certificate in good faith from the fee collection responsibility for the California battery fee.
(3) This bill would require the Department of Toxic Substances Control to establish a Lead-Acid Battery Recycling Facility Investigation and Cleanup Program, or LABRIC Program, which would be responsible for identifying areas of the state that are eligible for expenditure of moneys from the Lead-Acid Battery Cleanup Fund for certain purposes. The bill would require the program to provide public notice of the initiation of the investigation or site evaluation of any area reasonably suspected to have been contaminated by the operation of a lead-acid battery recycling facility. The bill would require the department, upon completion of an investigation or site evaluation, to provide notice and an opportunity for comment on the proposed designation of a site as known to have been contaminated by the operation of a lead-acid battery recycling facility. The bill would provide that further investigation or evaluation for a site is no longer authorized if, within 2 years of a public notice of the initiation of the investigation or evaluation, the department is unable to designate a site as known to have been contaminated by the operation of a lead-acid battery recycling facility.
(4) This bill would create a grant program that would provide funding to qualified industry associations, as defined, for the implementation a lead-acid battery recycling awareness plan that includes the creation of a program to develop and implement a public education program to inform consumers regarding the availability of lead-acid battery recycling, promote the safe and environmentally sound collection of lead-acid batteries by retailers in the state, and promote the safe and environmentally sound recycling of lead-acid batteries collected by retailers and others in the state. The bill would require the Department of Resources Recycling and Recovery to approve a grant proposal that meets certain requirements. The bill would appropriate $500,000 for the 2019–20 fiscal year from the Lead-Acid Battery Cleanup Fund to the Department of Resources Recycling and Recovery for purposes of funding the grant program.
(5) The act creates in the State Treasury the Lead-Acid Battery Cleanup Fund and requires that the fees collected pursuant to the act, except for specified administrative expenses, be deposited into the fund, and provides that moneys in the fund are available upon appropriation by the Legislature to the department for specified activities, including the repayment of specified loans.
This bill would authorize expenditure of moneys from the Lead-Acid Battery Cleanup Fund for the repayment of those loans only after the other specified activities have been fully funded. The bill would additionally authorize moneys in the Lead-Acid Battery Cleanup Fund to be expended for the grant program described above.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 25215.1 of the Health and Safety Code is amended to read:

25215.1.
 For purposes of this article, the following definitions shall apply:
(a) “Board” means the California Department of Tax and Fee Administration.
(b) “Business” means any person, as defined in subdivision (k), except a natural person or a city, county, city and county, district, commission, the state, or any department, agency, or political subdivision of any of those, or an interstate body or, to the extent permitted by law, the United States and its agencies and instrumentalities.
(c) “California battery fee” means the fee imposed pursuant to Section 25215.25.
(d) “Dealer” means a person who engages in the retail sale of replacement lead-acid batteries directly to persons in California. “Dealer” includes a manufacturer of a new lead-acid battery that sells at retail that lead-acid battery directly to a person through any means, including, but not limited to, a transaction conducted through a sales outlet, catalog, or internet website or any other similar electronic means.
(e) “Importer” means a person described in paragraph (2) of subdivision (h).
(f) “Lead-acid battery” means a battery weighing over five kilograms that is primarily composed of both lead and sulfuric acid, whether sulfuric acid is in liquid, solid, or gel state, with a capacity of six volts or more that is used for any of the following purposes:
(1) As a starting battery that is designed to deliver a high burst of energy to an internal combustion engine until it starts.
(2) As a motive power battery that is designed to provide the source of power for propulsion or operation of a vehicle, including a watercraft.
(3) As a stationary storage or standby battery that is designed to be used in systems where the battery acts as either electrical storage for electricity generation equipment or a source of emergency power, or otherwise serves as a backup in case of failure or interruption in the flow of power from the primary source.
(4) As a source of auxiliary power to support the electrical systems in a vehicle, as defined in Section 670 of the Vehicle Code, including a vehicle an implement of husbandry as defined in Section 36000 of the Vehicle Code, or an aircraft.
(g) (1) “Lead-acid battery recycling facility” means a site at which lead-acid batteries are or have been disassembled for the purpose of making components available for reclamation to produce elemental lead or lead alloys or at which lead-acid batteries or their components, or both, are or have been reclaimed to produce elemental lead or lead alloys.
(2) “Lead-acid battery recycling facility” does not include a facility designed and operated for purposes other than recovering lead from used lead-acid batteries. The processing of lead previously reclaimed from a lead-acid battery at a separate facility shall not be sufficient to establish that a facility is a lead-acid battery recycling facility.
(h) “Manufacturer” means either of the following:
(1) The person who manufactures the lead-acid battery and who sells, offers for sale, or distributes the lead-acid battery in the state.
(2) (A) If there is no person described in paragraph (1) that is subject to the jurisdiction of the state, the manufacturer is the person who imports the lead-acid battery into the state for sale or distribution.
(B) For purposes of this article, a person is subject to the jurisdiction of the state with respect to a lead-acid battery if the person is engaged in business in this state. For purposes of this subparagraph, a person shall be considered to be engaged in business in this state if the person is a “retailer engaged in business in this state,” as defined in subdivision (c) of Section 6203 of the Revenue and Taxation Code, with respect to that lead-acid battery, or if the person has a substantial nexus with this state for purposes of the commerce clause of the United States Constitution.
(i) “Manufacturer battery fee” means the fee imposed pursuant to Section 25215.35.
(j) “Owner or operator” has the same meaning given in Section 9601(20) of Title 42 of the United States Code and any person that previously met that definition or is the legal successor to a person that meets the definition or previously met the definition.
(k) “Person” means an individual, trust, firm, joint stock company, business concern, corporation, including, but not limited to, a government corporation, partnership, limited liability company, or association. “Person” also includes any city, county, city and county, district, commission, the state, or any department, agency, or political subdivision of any of those, interstate body, and the United States and its agencies and instrumentalities to the extent permitted by law.
(l) “Qualified industry association” means the Battery Council International or, if the Battery Council International is unable to serve as the qualified industry association, a similar organization identified by the Department of Resources Recycling and Recovery.

(l)

(m) “Remedial action” has the same meaning as in Section 25322.

(m)

(n) “Removal” has the same meaning as in Section 25323.

(n)

(o) “Replacement lead-acid battery” means a new lead-acid battery that is sold at retail subsequent to the original sale or lease of the equipment or vehicle in which the lead-acid battery is intended to be used. “Replacement lead-acid battery” does not include a spent, discarded, refurbished, reconditioned, rebuilt, or reused lead-acid battery.

(o)

(p) “Response action” has the same meaning as in Section 25323.3.

(p)

(q) (1) A “retail sale” or a “sale at retail” has the same meaning as defined in Section 6007 of the Revenue and Taxation Code.
(2) The following shall not be considered a “retail sale” or a “sale at retail” for purposes of this article:
(A) The sale of a battery for which a California battery fee has previously been paid.
(B) The sale of a replacement lead-acid battery that is temporarily stored or used in California for the sole purpose of preparing the replacement lead-acid battery for use thereafter solely outside of the state and that is subsequently transported outside the state and thereafter used solely outside of the state.
(C) The sale of a battery for incorporation into new equipment for subsequent resale.
(D) The replacement of a lead-acid battery pursuant to a warranty or a vehicle service contract described under Section 12800 of the Insurance Code.
(E) The sale of any battery intended for use with or contained within a medical device, as defined in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 321(h)), as that definition may be amended.

(q)

(r) “Used lead-acid battery” means a lead-acid battery no longer fully capable of providing the power for which it was designed or that a person no longer wants for any other reason.

(r)

(s) “Wholesaler” means a person who purchases a lead-acid battery from a manufacturer for the purpose of selling the lead-acid battery to a dealer, high-volume customer, or person for incorporation into new equipment for resale.

SEC. 2.

 Section 25215.11 is added to the Health and Safety Code, immediately following Section 25215.1, to read:

25215.11.
 (a) It is the intent of the Legislature in enacting this chapter that existing and future lead-acid battery recycling, resale, refurbishing, and reuse operations that are in compliance with state and federal law shall not be adversely affected by this chapter.
(b) The Legislature finds and declares all of the following:
(1) Pursuant to Section 3 of Article XIII A and Section 1 of Article XIII C of the California Constitution, it is right and proper that the fees established by this chapter and imposed upon purchasers and manufacturers of lead-acid batteries should be used solely to address the state’s needs described in paragraph (1) of subdivision (b) of Section 25215.5, which are limited to areas of the state that are or have been contaminated by the operation of a lead-acid battery recycling facility, and to encourage the proper recycling of lead-acid batteries.
(2) Reasonable and verifiable analyses, such as the analysis performed by the European Commission pursuant to that body’s end-of-life vehicle directive (Directive 2000/53/EC), have established that no viable alternative technology exists that can replace lead-acid batteries at a mass-market scale for use in motor vehicles as starting batteries that are designed to deliver a high burst of energy to an internal combustion engine until it starts.
(3) Lead-acid batteries, among other technologies, are necessary to enable the state to achieve the requirements for increasing electricity sales from renewable energy resources established in Section 399.15 of the Public Utilities Code and the requirements for greenhouse gas emissions reduction established in Section 38566, particularly those lead-acid batteries used as a stationary storage or standby batteries that are designed to be used in systems in which the battery acts either as electrical storage for electricity generation equipment or a source of emergency power, or otherwise serves as a backup in case of failure or interruption in the flow of power from the primary source.
(4) Lead-acid batteries are the most recycled consumer product in the state, with a nationwide recycling rate exceeding 99 percent, and it is in the public interest to ensure that future policy decisions do not diminish, impede, disincentivize, or otherwise interfere with the efficient and environmentally sound recycling of lead-acid batteries.

SEC. 2.SEC. 3.

 Section 25215.2 of the Health and Safety Code is amended to read:

25215.2.
 (a) A dealer shall accept from a person at the point of transfer a used lead-acid battery of a type listed in paragraph (1), (2), or (4) of subdivision (f) of Section 25215.1, but shall not be required to accept from any person more than six used lead-acid batteries per day. A dealer shall not charge a fee to receive a used lead-acid battery.
(b) On and after April 1, 2017, a dealer shall charge to a person who purchases a replacement lead-acid battery of a type listed in paragraph (1), (2), or (4) of subdivision (f) of Section 25215.1 and who does not simultaneously provide the dealer with a used lead-acid battery of the same type and size a refundable deposit for each such battery purchased. The dealer shall display the amount of the deposit separately on the receipt provided to the purchaser. The dealer shall refund the deposit to that person if, within 45 days of the sale of the replacement lead-acid battery, the person presents to the dealer a used lead-acid battery of the same type and size. A dealer may require the person to provide a receipt documenting the payment of the deposit before refunding any deposit. A dealer may keep any lead-acid battery deposit moneys that are not properly claimed within 45 days after the date of sale of the replacement lead-acid battery, not including any sales tax reimbursement charged to the consumer. Sales tax reimbursement charged to the consumer on the amount of the deposit shall be remitted to the California Department of Tax and Fee Administration.
(c) A dealer shall post a written notice that is clearly visible in the public sales area of the establishment, or include on the purchaser’s receipt, the following language:
This dealer is required by law to charge a nonrefundable $1 California battery fee and a refundable deposit for each lead-acid battery purchased.
A credit of the same amount as the refundable deposit will be issued if a used lead-acid battery is returned at the time of purchase or up to 45 days later along with this dealer’s receipt.
(d) The department shall provide notice of an alleged violation of subdivision (c) to any person alleged to be in violation of that subdivision no less than 60 days before the issuance of an order or filing an action imposing a civil penalty pursuant to subdivision (b) of Section 25189.2. If the person corrects the alleged violation before the order is issued or the action is filed the department shall not impose the civil penalty.
(e) Subdivision (c) does not apply to any of the following:
(1) A person whose ordinary course of business does not include the sale of lead-acid batteries.
(2) A person that does not sell lead-acid batteries directly to consumers, such as over-the-counter, but instead removes nonfunctional or damaged batteries and installs new lead-acid batteries as a part of an automotive repair dealer service.
(3) A business that removes lead-acid batteries and installs new lead-acid batteries as a part of roadside services. “Roadside services,” for purposes of this paragraph, means the services performed upon a motor vehicle for the purpose of transporting the vehicle or to permit it to be operated under its own power, by or on behalf of a motor club holding a certificate of authority pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code.
(f) Except as authorized by this article, a dealer shall not collect a refundable deposit for a lead-acid battery from a person.

SEC. 3.SEC. 4.

 Section 25215.25 of the Health and Safety Code is amended to read:

25215.25.
 (a) (1) A California battery fee shall be imposed on a person for each replacement lead-acid battery of a type listed in paragraph (1), (2), or (4) of subdivision (f) of Section 25215.1 purchased from a dealer, except as specified in subdivision (c). On and after April 1, 2017, until March 31, 2022, the amount of the fee shall be one dollar ($1). On and after April 1, 2022, the amount of the fee shall be two dollars ($2).
(2) Except for sales to businesses, the dealer shall charge a person the amount of the California battery fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the person.
(3) The dealer shall collect the California battery fee at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The remainder of the California battery fee collected by the dealer shall be paid to the California Department of Tax and Fee Administration in a manner and form prescribed by the California Department of Tax and Fee Administration and at the time the return is required to be filed, as specified in Section 25215.47.
(4) All moneys collected or required to be collected by a dealer pursuant to this section that are not properly remitted to the California Department of Tax and Fee Administration pursuant to paragraph (3) shall be deemed to be a debt owed to the state by the dealer.
(5) A person who purchases a replacement lead-acid battery in this state is liable for the California battery fee until that fee has been paid to the California Department of Tax and Fee Administration, except that payment to a dealer registered under this article is sufficient to relieve the person from further liability of the fee.
(6) All moneys remitted to the California Department of Tax and Fee Administration pursuant to this subdivision shall be expended in accordance with Section 25215.5.
(b) (1) Except for sales to businesses, the California battery fee imposed pursuant to subdivision (a) shall be separately stated by the dealer on the invoice given to a person at the time of sale. Any other fee charged by the dealer related to the lead-acid battery purchase, including any deposit charged, credited, or both, pursuant to Section 25215.2, shall be identified separately from the California battery fee.
(2) If a person purchases more than one lead-acid battery in a single transaction, and is therefore imposed more than one California battery fee in that transaction, the dealer shall not be required to individually list on the invoice each California battery fee imposed, but may instead condense the fees to a single-line item.
(c) On and after January 1, 2020, if a new motor vehicle dealer sells or leases to a person a used vehicle into which the new motor vehicle dealer has incorporated a replacement lead-acid battery, the California battery fee imposed by paragraph (1) of subdivision (a) shall not apply to the person with regard to that replacement lead-acid battery. For purposes of this subdivision, “new motor vehicle dealer” has the same meaning as is specified in Section 426 of the Vehicle Code, and “used vehicle” has the same meaning as is specified in Section 665 of the Vehicle Code.
(d) (1) If a battery is sold or used in a manner or for a purpose entitling the dealer to regard the purchase as not subject to the California battery fee, the dealer shall obtain a written exclusion certificate from the purchaser certifying that the battery will be used in a manner or for a purpose entitling the dealer to regard the purchase as not subject to the California battery fee. The exclusion certificate shall be in a form and manner prescribed by the California Department of Tax and Fee Administration.
(2) A dealer that accepts an exclusion certificate in good faith is relieved from the fee collection responsibility for the California battery fee and is not required to charge or collect from the purchaser the California battery fee.
(3) There is a rebuttable presumption that a dealer’s sale of a battery is not subject to the California battery fee if the purchaser provides an exclusion certificate in a timely manner to the dealer and the dealer accepts the exclusion certificate in good faith.
(4) A person who issues an exclusion certificate in a sale for which no payment was made for the California battery fee shall be liable for the payment of any applicable fees, if the person sells or uses the battery such that no exclusions to the payment of the applicable fee or fees apply.
(5) For purposes of this subdivision only, “battery” means a battery weighing over five kilograms that is primarily composed of both lead and sulfuric acid, whether sulfuric acid is in liquid, solid, or gel state, with a capacity of six volts or more.

SEC. 4.SEC. 5.

 Section 25215.3 is added to the Health and Safety Code, to read:

25215.3.
 (a) A person who manufactures a lead-acid battery and is not subject to the jurisdiction of the state may agree in writing with the importer of that lead-acid battery to pay the manufacturer battery fee imposed pursuant to Section 25215.35 on behalf of the importer.
(b) A person who pays the manufacturer battery fee on behalf of an importer pursuant to subdivision (a) shall be credited, pursuant to Section 25215.56, for that payment, if the person does all of the following:
(1) The person submits to the jurisdiction of the state for purposes of the fees imposed under this article and registers with the California Department of Tax and Fee Administration to pay and remit the manufacturer battery fee.
(2) The person provides to the purchaser a statement on the invoice, contract, or other record documenting the transaction that includes the following information:
(A) The person’s manufacturer account number with the California Department of Tax and Fee Administration.
(B) An identification of the lead-acid battery or batteries sold that will be subject to the manufacturer battery fee.
(C) A statement that the person will pay the manufacturer battery fee to the state on behalf of the importer.
(3) The person retains records sufficient to document that the lead-acid battery for which the person has agreed to pay the manufacturer battery fee was delivered for retail sale in California, the identity of the purchaser of that battery, and that the statement required by paragraph (2) was provided to the purchaser of the battery in a timely manner pursuant to subdivision (c). The person shall retain these records for a period of no less than four years and shall make the records reasonably available to the California Department of Tax and Fee Administration upon request.
(c) (1) A purchaser of a lead-acid battery who receives a timely statement from a manufacturer pursuant to paragraph (2) of subdivision (b), and any subsequent purchaser of that battery, shall be relieved from any obligation imposed pursuant to Section 25215.35 on the sale of that battery, provided that the manufacturer remits payment of the manufacturer battery fee to the state for the sale of that battery. A statement shall be considered timely if it is issued before the manufacturer bills the purchaser for the lead-acid battery, within the manufacturer’s normal billing and payment cycle, before delivery of the battery to the purchaser, or before the date on which a return would be due pursuant to Section 25215.47.
(2) An importer who has paid the manufacturer battery fee for a lead-acid battery and who subsequently receives an untimely statement that the fee has been paid for that battery may file a claim for a refund for any overpaid fees as provided in Article 3 (commencing with Section 55081) of Chapter 3 of, and Article 1 (commencing with Section 55221) of Chapter 5 of, Part 30 of Division 2 of the Revenue and Taxation Code.
(d) (1) On or before January 1, 2022, the California Department of Tax and Fee Administration shall submit to the Legislature a report relating to persons who have paid the manufacturer battery fee on behalf of an importer pursuant to subdivision (a). The report shall include, but is not limited to, all of the following information:
(A) Any regulations or policies adopted by the California Department of Tax and Fee Administration for purposes of ensuring compliance with the registration, returns, reporting, payments, audits, refunds, or collection requirements related to the manufacturer battery fee.
(B) The revenue impact as determined by the revenues paid or collected compared to the estimated revenue amount calculated by the Senate Committee on Appropriations in its analysis of the fiscal impact of Assembly Bill 2153 (Chapter 666 of the Statutes of 2016), adjusted as deemed appropriate by the California Department of Tax and Fee Administration to account for differences in reporting periods and to account for exemptions or exclusions that were not previously accounted for in that analysis or that were enacted after January 1, 2020.
(C) The fiscal impact of the manufacturer battery fee, including costs required to ensure compliance, costs related to audits, refunds, and administering regulations, and estimated cost savings.
(2) A report required to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(3) Pursuant to Section 10231.5 of the Government Code, the requirement for submitting a report pursuant to this subdivision is inoperative on January 1, 2025.
(e) This section shall become operative on January 1, 2020.

SEC. 5.SEC. 6.

 Section 25215.35 of the Health and Safety Code is amended to read:

25215.35.
 (a) Until April 1, 2022, a manufacturer battery fee of one dollar ($1) shall be imposed on a manufacturer of lead-acid batteries for each lead-acid battery it sells at retail to a person in California or that it sells to a dealer, wholesaler, distributor, or other person for retail sale in California.
(b) On and after April 1, 2022, a manufacturer battery fee of two dollars ($2) shall be imposed on a manufacturer of lead-acid batteries for each lead-acid battery it sells at retail to a person in California or that it sells to a dealer, wholesaler, distributor, or other person for retail sale in California.
(c) Manufacturer battery fees shall be paid to the California Department of Tax and Fee Administration in a manner and form as prescribed by the California Department of Tax and Fee Administration and at the time the return is required to be filed, as specified in Section 25215.47.
(d) (1) If a battery is sold or used in a manner or for a purpose entitling the manufacturer to regard the purchase as not subject to the manufacturer battery fee, the manufacturer shall obtain a written exclusion certificate from the purchaser certifying that the lead-acid battery will be used in a manner or for a purpose entitling the manufacturer to regard the purchase as not subject to the manufacturer battery fee. The exclusion certificate shall be in a form and manner prescribed by the California Department of Tax and Fee Administration.
(2) A manufacturer that accepts an exclusion certificate in good faith is relieved from the fee collection responsibility for the manufacturer battery fee and is not required to charge or collect from the purchaser the manufacturer battery fee.
(3) There is a rebuttable presumption that a manufacturer’s sale of a battery is not subject to the manufacturer battery fee if the purchaser provides an exclusion certificate in a timely manner to the manufacturer and the manufacturer accepts the exclusion certificate in good faith.
(4) A person who issues an exclusion certificate in a sale for which no payment was made for the manufacturer battery fee shall be liable for the payment of any applicable fees, if the person sells or uses the battery such that no exclusions to the payment of the applicable fee or fees apply.
(5) For purposes of this subdivision only, “battery” means a battery weighing over five kilograms that is primarily composed of both lead and sulfuric acid, whether sulfuric acid is in liquid, solid, or gel state, with a capacity of six volts or more.

SEC. 6.SEC. 7.

 Section 25215.45 of the Health and Safety Code is amended to read:

25215.45.
 (a) (1) Except as provided in paragraph (2), the lead-acid battery fees imposed pursuant to Sections 25215.25 and 25215.35 shall be collected by the California Department of Tax and Fee Administration in accordance with 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 to “feepayer” shall include a dealer and manufacturer.
(2) Notwithstanding the petition for redetermination and claim for refund provisions of the Fee Collection Procedures Law (Article 3 (commencing with Section 55081) of Chapter 3 of, and Article 1 (commencing with Section 55221) of Chapter 5 of, Part 30 of Division 2 of the Revenue and Taxation Code), the California Department of Tax and Fee Administration shall not do either of the following:
(A) Accept or consider any petition for redetermination of fees determined under this article if the petition is founded upon the grounds that a battery is or is not a lead-acid battery, as defined in Section 25215.1. The California Department of Tax and Fee Administration shall forward to the department any petition for redetermination that is based on those grounds.
(B) Accept or consider a claim for refund of fees paid pursuant to this article, if the claim for refund is founded upon the grounds that a battery is or is not a lead-acid battery, as defined in Section 25215.1. The California Department of Tax and Fee Administration shall forward to the department any claim for refund that is based on these grounds.
(b) The following persons shall register with the California Department of Tax and Fee Administration:
(1) A dealer of lead-acid batteries.
(2) (A) A manufacturer of lead-acid batteries, unless subparagraph (B) applies.
(B) A person is not required to register with the California Department of Tax and Fee Administration as a manufacturer of lead-acid batteries if the person has an agreement or agreements pursuant to Section 25215.3 with a manufacturer or manufacturers of lead-acid batteries pursuant to which the manufacturer or manufacturers agree to pay the manufacturer battery fee on behalf of the person and the agreement or agreements apply to all lead-acid batteries sold by the person. A person exempt from registration pursuant to this subparagraph shall comply with any other applicable requirements that may be prescribed by the California Department of Tax and Fee Administration.

SEC. 7.SEC. 8.

 Section 25215.48 is added to the Health and Safety Code, to read:

25215.48.
 Notwithstanding subdivision (b) of Section 55381 of the Revenue and Taxation Code, the California Department of Tax and Fee Administration may disclose the name, address, account number, and account status of a person registered with the California Department of Tax and Fee Administration to pay the manufacturer battery fee. Account status shall not include the amount of the manufacturer battery fee paid by any person.

SEC. 8.SEC. 9.

 Section 25215.5 of the Health and Safety Code is amended to read:

25215.5.
 (a) Lead-acid battery fees collected pursuant to this article shall be managed as follows:
(1) The board shall retain moneys necessary for the payment of refunds and reimbursement of the board for expenses in the collection of the fees.
(2) The remaining moneys shall be deposited into the Lead-Acid Battery Cleanup Fund, which is hereby created in the State Treasury, and is available upon appropriation by the Legislature to the department for the purposes specified in this section.
(b) (1) Moneys in the Lead-Acid Battery Cleanup Fund shall be expended for the following activities:
(A) Investigation, site evaluation, cleanup, remedial action, removal, monitoring, or other response actions at Investigation or site evaluation of any area of the state that is reasonably suspected to have been contaminated by the operation of a lead-acid battery recycling facility.
(B) Cleanup, remedial action, removal, monitoring, or other response actions at any area of the state that, pursuant to Section 25215.51, the department determines is known to have been contaminated by the operation of a lead-acid battery recycling facility.
(C) To fund the grant program established pursuant to Sections 25125.61 and 25125.62.

(B)

(D) Administration of the Lead-Acid Battery Cleanup Fund and the department’s administration and implementation of this article.

(C)

(E) Repayment of a loan described in Section 25215.59 that was made before the effective date of the act that added this section, or any other loan made for purposes set forth in subparagraph (A). Moneys shall be expended for purposes of this subparagraph only after the activities specified in subparagraphs (A) and (B) to (D), inclusive, have been fully funded. funded in a given fiscal year.
(2) (A) Moneys in the Lead-Acid Battery Cleanup Fund shall not be used to implement Article 14 (commencing with Section 25251) with respect to lead-acid batteries or to loan moneys to any other program.
(B) Any government action not required by this article that would have the effect of reducing the availability of fee revenue to the Lead Acid Battery Cleanup Fund shall be considered a negative economic impact pursuant to subparagraph (M) of paragraph (2) of subdivision (a) of Section 25253.
(c) The department shall annually report to the Legislature by February 1, 2018, and annually thereafter, March 1 of each year on the status of the Lead-Acid Battery Cleanup Fund and on the department’s progress implementing this article, including, but not limited to, the sites at which actions were performed using moneys from the fund, the status of cleanup at those sites, including total anticipated costs of cleanup at those sites, the balance of the fund, the amount of fees remitted to the fund, the amount spent by the fund and the purposes for which those amounts were spent, the amounts reimbursed to the board pursuant to paragraph (1) of subdivision (a), and any other information requested by the Legislature. Each annual report shall be released to the public on the same day it is provided to the Legislature.

SEC. 10.

 Section 25215.51 is added to the Health and Safety Code, to read:

25215.51.
 (a) The department shall establish a Lead-Acid Battery Recycling Facility Investigation and Cleanup Program, or LABRIC Program, which shall be responsible for identifying areas of the state that are eligible for expenditure of moneys from the Lead-Acid Battery Cleanup Fund pursuant to subparagraphs (A) and (B) of paragraph (1) of subdivision (b) of Section 25215.5.
(b) The LABRIC Program shall provide public notice of the initiation of the investigation or site evaluation of any area reasonably suspected to have been contaminated by the operation of a lead-acid battery recycling facility. The public notice shall provide a summary of the information relied on by the department, as well as copies of any information or documents currently in the department’s possession regarding the facility, if subject to disclosure pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). The department shall accept comment from the public on the public notice required by this subdivision and shall accept and review comments or information submitted at any time after the release of the public notice until the department completes its investigation pursuant to subdivision (c).
(c) (1) Upon completion of an investigation or site evaluation conducted pursuant to subdivision (b), the department, consistent with procedures included within the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), shall provide notice and an opportunity for comment on the proposed designation of a site as known to have been contaminated by the operation of a lead-acid battery recycling facility.
(2) Any proposed designation, as described in paragraph (1), shall include a summary of the evidence relied on by the department in reaching the proposed designation, any evidence that might suggest the site was not involved in lead-acid battery recycling, and copies of any information or documents reviewed or relied on during the investigation and evaluation of the site, if subject to disclosure pursuant to the California Public Records Act.
(3) The department shall accept comments from the public consistent with the procedures included within the Administrative Procedure Act. The department shall investigate and respond to any reasonable information provided by the public that might suggest the area was not contaminated by the operation of a lead-acid battery recycling facility, or that the facility in question was not involved in the recycling of lead-acid batteries.
(4) A site designation shall be considered a final action, subject to judicial review in the same manner as provided pursuant to the Administrative Procedure Act.
(d) (1) If, within two years of a public notice required by subdivision (b), the department is unable to designate a site as known to have been contaminated by the operation of a lead-acid battery recycling facility, the public notice shall be deemed to have been withdrawn and further investigation or evaluation for the site shall no longer be authorized.
(2) The department may, within its discretion, issue a new public notice pursuant to subdivision (b) for a site if the department determines that new evidence warrants continued or renewed investigation or evaluation of the site.
(e) Information regarding the department’s progress in implementing this section shall be included in the report required by subdivision (c) of Section 25215.5.

SEC. 9.SEC. 11.

 Section 25215.56 of the Health and Safety Code is amended to read:

25215.56.
 (a) Any manufacturer battery fees remitted pursuant to this article shall, subject to subdivision (b) of Section 25215.3, be credited to the account of the manufacturer remitting those fees to the California Department of Tax and Fee Administration and shall be credited against amounts owed by the manufacturer to the state pursuant to a judgment or determination of liability under Chapter 6.8 (commencing with Section 25300) or any other law for removal, remediation, or other response costs relating to a release of a hazardous substance from a lead-acid battery recycling facility. A manufacturer shall not seek more than one credit for the same fee amount. This subdivision does not apply to any manufacturer who is also an owner or operator of a lead-acid battery recycling facility in California.
(b) The amount paid by a manufacturer for a manufacturer battery fee shall be considered to reduce the manufacturer’s share of liability in the allocation or apportionment of costs among potentially responsible parties in a contribution action brought by a private party related to a release of hazardous substances from a lead-acid battery recycling facility. This subdivision does not apply to any manufacturer who is also an owner or operator or a former owner or operator of a lead-acid battery recycling facility in California where a release occurred.
(c) This article does not create a private cause of action. Nothing in this article shall be construed to affect, expand, alter, or limit any requirements, duties, rights, or remedies under other law, or limit the state or any other party from bringing any cause of action that may exist under any law.

SEC. 12.

 Section 25215.61 is added to the Health and Safety Code, to read:

25215.61.
 (a) A qualified industry association shall implement a lead-acid battery recycling awareness plan to promote the goals established in this section within 90 days after the qualified industry association’s grant proposal is approved by the Department of Resources Recycling and Recovery pursuant to subdivision (a) of Section 25215.62 and grant funds are disbursed to the qualified industry association.
(b) On or before April 1, 2020, a qualified industry association may submit a grant proposal that includes a lead-acid battery recycling awareness plan to the Department of Resources Recycling and Recovery.
(c) A lead-acid battery recycling awareness plan shall include, at a minimum, all of the following:
(1) The creation of a program to develop and implement a public education program to inform consumers regarding the availability of lead-acid battery recycling, promote the safe and environmentally sound collection of lead-acid batteries by retailers in the state, and promote the safe and environmentally sound recycling of lead-acid batteries collected by retailers and others in the state. The program shall include both of the following:
(A) Consumer, collector, contractor, and retailer education and outreach efforts to promote the goals of the program established pursuant to this paragraph.
(B) The development of retail signage and consumer information materials. This information may include, but is not limited to, developing, and updating as necessary, educational and other outreach materials aimed at consumers and retailers of lead-acid batteries. These materials may include, but are not limited to, one or more of the following:
(i) Signage designed to be prominently displayed and easily visible to the consumer, including, but not limited to, the signage required pursuant to subdivision (c) of Section 25215.2.
(ii) Written materials and templates of materials for reproduction by retailers to be provided to the consumer at the time of purchase or delivery, or both. Written materials shall include information on the prohibition of improper disposal of lead-acid batteries.
(iii) Advertising or other promotional materials, or both, that include references to lead-acid battery recycling opportunities.
(2) A description of milestones and deliverables established by the qualified industry association to achieve elements of the program described in paragraph (1).
(3) The total cost of implementing the program described in paragraph (1).
(4) A description of methods that would be used to disseminate the public education statements or materials described in paragraph (1).
(5) Examples of educational materials that would be provided to consumers, retailers, and others.
(d) Any retailer may participate, on a voluntary basis, as a lead-acid battery recycling awareness outlet pursuant to the approved plan if the retailer is in compliance with this chapter.

SEC. 13.

 Section 25215.62 is added to the Health and Safety Code, to read:

25215.62.
 (a) (1) The Department of Resources Recycling and Recovery shall, within 90 days of receipt, review a grant proposal submitted pursuant to Section 25215.61 and make a determination as to whether or not to approve the grant proposal.
(2) The Department of Resources Recycling and Recovery shall approve a grant proposal if it meets the requirements of Section 25215.61.
(b) (1) Five hundred thousand dollars ($500,000) is hereby appropriated for the 2019–20 fiscal year from the Lead-Acid Battery Cleanup Fund to the Department of Resources Recycling and Recovery for purposes of funding the grant program established pursuant to this section and Section 25215.61.
(2) It is the intent of the Legislature to annually appropriate five hundred thousand dollars ($500,000), commencing with the 2020–21 fiscal year, from the Lead-Acid Battery Cleanup Fund to the Department of Resources Recycling and Recovery for purposes of funding the grant program established pursuant to this section and Section 25215.61.
(c) An approved grant proposal shall be a public record, except for financial, production, or sales data reported to the Department of Resources Recycling and Recovery by a qualified industry association, as provided in the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), which shall not be open to public inspection.

SEC. 10.SEC. 14.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to increase the cleanup of toxic materials and to prevent additional toxic pollution at the earliest possible time, it is necessary that this act take effect immediately.