BILL NUMBER: AB 2901	CHAPTERED
	BILL TEXT

	CHAPTER  891
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2004
	PASSED THE ASSEMBLY  AUGUST 25, 2004
	PASSED THE SENATE  AUGUST 24, 2004
	AMENDED IN SENATE  AUGUST 19, 2004
	AMENDED IN SENATE  JULY 8, 2004
	AMENDED IN SENATE  JUNE 16, 2004
	AMENDED IN ASSEMBLY  MAY 20, 2004
	AMENDED IN ASSEMBLY  APRIL 20, 2004

INTRODUCED BY   Assembly Members Pavley and Kehoe
   (Coauthors:  Assembly Members Hancock, Jackson, Koretz, Levine,
and Lieber)
   (Coauthors:  Senators Kuehl and Romero)

                        FEBRUARY 20, 2004

   An act to add Chapter 8.6 (commencing with Section 42490) to Part
3 of Division 30 of the Public Resources Code, relating to solid
waste.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2901, Pavley.  Solid waste:  cell phones:  recycling.
   Existing law requires the California Integrated Waste Management
Board to administer state programs to recycle various specified
materials, including the Electronic Waste Recycling Act of 2003,
which governs certain electronic devices with display screens greater
than 4 inches in size.
   This bill would enact the Cell Phone Recycling Act of 2004 and
would make it unlawful to sell, on and after July 1, 2006, a cell
phone in this state to a consumer, as defined, unless the retailer of
that cell phone complies with the act.
   The bill would require a retailer selling a cell phone in this
state to have in place, by July 1, 2006, a system for the acceptance
and collection of used cell phones for reuse, recycling, or proper
disposal.  The bill would require the system to include specified
elements.
   The bill would require the Department of Toxic Substances Control
on July 1, 2007, and each July 1 thereafter, to post on its Web site
an estimated California recycling rate for cell phones, as specified.
  The bill would impose requirements upon state agencies that
purchase or lease cell phones regarding a certification of compliance
with the act by prospective bidders.  The bill would contain a
severability clause.


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


  SECTION 1.  Chapter 8.6 (commencing with Section 42490) is added to
Part 3 of Division 30 of the Public Resources Code, to read:

      CHAPTER 8.6.  CELL PHONE RECYCLING ACT OF 2004
      Article 1.  General Provisions

   42490.  This act shall be known, and may be cited as, the Cell
Phone Recycling Act of 2004.
   42490.1.  The Legislature finds and declares all of the following:

   (a) The purpose of this chapter is to enact a comprehensive and
innovative system for the reuse, recycling, and proper and legal
disposal of used cell phones.
   (b) It is the further purpose of this chapter to enact a law that
establishes a program that is convenient for consumers and the public
to return, recycle, and ensure the safe and environmentally sound
disposal of used cell phones, and providing a system that does not
charge when a cell phone is returned.
   (c) It is the intent of the Legislature that the cost associated
with the handling, recycling, and disposal of used cell phones be the
responsibility of the producers and consumers of cell phones, and
not local government or their service providers, state government, or
taxpayers.
   (d) In order to reduce the likelihood of illegal disposal of
hazardous materials, it is the intent of this chapter to ensure that
all costs associated with the proper management of used cell phones
is internalized by the producers and consumers of cell phones at or
before the point of purchase, and not at the point of discard.
   (e) Manufacturers and retailers of cell phones and cell phone
service providers, in working to achieve the goals and objectives of
this chapter, should have the flexibility to partner with each other
and with those private and nonprofit business enterprises that
currently provide collection and processing services to develop and
promote a safe and effective used cell phone recycling system for
California.
   (f) The producers of cell phones should reduce and, to the extent
feasible, ultimately phase out the use of hazardous materials in cell
phones.
   (g) Cell phones, to the greatest extent feasible, should be
designed for extended life, repair, and reuse.
   (h) The purpose of this chapter is to provide for the safe, cost
free, and convenient collection, reuse, and recycling of 100 percent
of the used cell phones discarded or offered for recycling in the
state.
   (i) In establishing a cost effective system for the recovery,
reuse, recycling and proper disposal of used cell phones, it is the
intent of the Legislature to encourage manufacturers, retailers and
service providers to build on the retailer take-back systems
initiated recently by some cell phone service providers.
   (j) An estimated 5 percent of obsolete cell phones are currently
being recycled through a mechanism, whereby private sector recyclers
provide retailers with a postage paid box for mailing returned cell
phones to the recycler at no cost to the retailers.  In some
instances, the scrap value of these used phones is sufficient for the
recycler to either pay the retailer or make a financial contribution
on behalf of the retailer to a nonprofit charity.  It is the intent
of the Legislature that this model system be substantially expanded
as a result of the enactment of this act.
      Article 2.  Definitions

   42493.  For the purposes of this chapter, the following terms have
the following meanings, unless the context clearly requires
otherwise:
   (a) "Cell phone" means a wireless telephone device that is
designed to send or receive transmissions through a cellular
radiotelephone service, as defined in Section 22.99 of Title 47 of
the Code of Federal Regulations.  A cell phone includes the
rechargeable battery that may be connected to that cell phone.  A
cell phone does not include a wireless telephone device that is
integrated into the electrical architecture of a motor vehicle.
   (b) "Consumer" means a purchaser or owner of a cell phone.
"Consumer" also includes a business, corporation, limited
partnership, nonprofit organization, or governmental entity, but does
not include an entity involved in a wholesale transaction between a
distributor and retailer.
   (c) "Department" means the Department of Toxic Substances Control.

   (d) "Retailer" means a person who sells a cell phone in the state
to a consumer, including a manufacturer of a cell phone who sells
that cell phone directly to a consumer.  A sale includes, but is not
limited to, transactions conducted through sales outlets, catalogs,
or the Internet, or any other similar electronic means, but does not
include a sale that is a wholesale transaction with a distributor or
retailer.
   (e) (1) "Sell" or "sale" means a transfer for consideration of
title or of the right to use, by lease or sales contract, including,
but not limited to, transactions conducted through sales outlets,
catalogs, or the Internet or any other, similar electronic means, but
does not include a wholesale transaction with a distributor or a
retailer.
   (2) For purposes of this subdivision and subdivision (d),
"distributor" means a person who sells a cell phone to a retailer.
   (f) "Used cell phone" means a cell phone that has been previously
used and is made available, by a consumer, for reuse, recycling, or
proper disposal.
      Article 3.  Cell Phone Recycling

   42494.  (a) On and after July 1, 2006, every retailer of cell
phones sold in this state shall have in place a system for the
acceptance and collection of used cell phones for reuse, recycling,
or proper disposal.
   (b) A system for the acceptance and collection of used cell phones
for reuse, recycling, or proper disposal shall, at a minimum,
include all of the following elements:
   (1) The take-back from the consumer of a used cell phone that the
retailer sold or previously sold to the consumer, at no cost to that
consumer.  The retailer may require proof of purchase.
   (2) The take-back of a used cell phone from a consumer who is
purchasing a new cell phone from that retailer, at no cost to that
consumer.
   (3) If the retailer delivers a cell phone directly to a consumer
in this state, the system provides the consumer, at the time of
delivery, with a mechanism for the return of used cell phones for
reuse, recycling, or proper disposal, at no cost to the consumer.
   (4) Make information available to consumers about cell phone
recycling opportunities provided by the retailer and encourage
consumers to utilize those opportunities.  This information may
include, but is not limited to, one or more of the following:
   (A) Signage that is prominently displayed and easily visible to
the consumer.
   (B) Written materials provided to the consumer at the time of
purchase or delivery, or both.
   (C) Reference to the cell phone recycling opportunity in retailer
advertising or other promotional materials, or both.
   (D) Direct communications with the consumer at the time of
purchase.
   (c) Paragraph (4) of subdivision (b) does not apply to a retailer
that only sells prepaid cell phones and does not provide the ability
for a consumer to sign a contract for cell phone service.
   42495.  On and after July 1, 2006, it is unlawful to sell a cell
phone to a consumer in this state unless the retailer of that cell
phone complies with this chapter.

      Article 4.  Statewide Recycling Goals

   42496.4.  On July 1, 2007, and each July 1, thereafter, the
department shall post on its Web site an estimated California
recycling rate for cell phones, the numerator of which shall be the
estimated number of cell phones returned for recycling in California
during the previous calendar year, and the denominator of which is
the number of cell phones estimated to be sold in this state during
the previous calendar year.
      Article 5.  State Agency Procurement

   42498.  (a) A state agency that purchases or leases cell phones
shall require each prospective bidder, to certify that it, and its
agents, subsidiaries, partners, joint venturers, and subcontractors
for the procurement, have complied with this chapter and any
regulations adopted pursuant to this chapter, or to demonstrate that
this chapter is inapplicable to all lines of business engaged in by
the bidder, its agents, subsidiaries, partners, joint venturers, or
subcontractors.
   (b) Failure to provide certification pursuant to this section
shall render the prospective bidder and its agents, subsidiaries,
partners, joint venturers, and subcontractors ineligible to bid on
the procurement of cell phones.
   (c) The bid solicitation documents shall specify that the
prospective bidder is required to cooperate fully in providing
reasonable access to its records and documents that evidence
compliance with this chapter.
   (d) Any person awarded a contract by a state agency that is found
to be in violation of this section is subject to the following
sanctions:
   (1) The contract shall be voided by the state agency to which the
equipment, materials, or supplies were provided.
   (2) The contractor is ineligible to bid on any state contract for
a period of three years.
   (3) If the Attorney General establishes in the name of the people
of the State of California that any money, property, or benefit was
obtained by a contractor as a result of violating this section, the
court may, in addition to any other remedy, order the disgorgement of
the unlawfully obtained money, property, or benefit in the interest
of justice.

      Article 6.  Effect of Act

   42499.  This chapter shall not be construed to affect Chapter 6.5
(commencing with Section 25100) of Division 20 of the Health and
Safety Code, any regulation adopted pursuant to that chapter, or any
obligation imposed on a person pursuant to that chapter, relating to
cell phones or used cell phones.
  SEC. 2.  The provisions of this act are severable.  If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.