BILL NUMBER: SB 20	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 12, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2003
	AMENDED IN ASSEMBLY  SEPTEMBER 9, 2003
	AMENDED IN ASSEMBLY  SEPTEMBER 5, 2003
	AMENDED IN ASSEMBLY  JULY 29, 2003
	AMENDED IN SENATE  JUNE 2, 2003
	AMENDED IN SENATE  MAY 21, 2003
	AMENDED IN SENATE  MAY 6, 2003

INTRODUCED BY   Senators Sher and Romero
   (Principal coauthor:  Senator Kuehl)
   (Principal coauthor:  Assembly Member Jackson)
   (Coauthor:  Senator Figueroa)
   (Coauthors:  Assembly Members Berg, Chu, Koretz, Laird, Leno,
Levine, Lieber, Montanez, Pavley, and Wolk)

                        DECEMBER 2, 2002

   An act to add Article 10.3 (commencing with Section 25214.9) to
Chapter 6.5 of Division 20 of the Health and Safety Code, and to add
Article 4 (commencing with Section 41516) to Chapter 3.5 of Part 2
of, and Chapter 8.5 (commencing with Section 42460) to Part 3 of,
Division 30 of the Public Resources Code, relating to hazardous and
solid waste.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 20, Sher.  Solid waste:  hazardous electronic waste.
   (1) Existing law prohibits the management of hazardous waste,
except in accordance with the hazardous waste control laws.  Under
existing law, the Department of Toxic Substances Control is
authorized to exempt, until January 1, 2003, by regulation, a
hazardous waste management activity from the requirements of the
hazardous waste control law if the regulation governs a specified
type of hazardous waste, including electronic hazardous wastes,
identifies the hazardous waste as a universal waste, and amends
specified existing regulations of the department.  Existing law
prohibits the disposal of electronic products in or on land, except
as specified.  A violation of the hazardous waste control law is a
crime.
   The bill would authorize the Department of Toxic Substances
Control to adopt management standards, by regulation, as an
alternative to the hazardous waste control laws, for electronic waste
that the department determines is hazardous, to the extent
consistent with the federal Resource Conservation and Recovery Act of
1976 (RCRA).  The bill would require the department to adopt
regulations to prohibit an electronic device from being sold or
offered for sale in this state if the electronic device is prohibited
from being sold in the European Union on and after its date of
manufacture, due to the presence of certain heavy metals.  The bill
would prohibit these regulations from taking effect until January 1,
2007, or on or after the date the Directive 2002/95/EC, as adopted by
the European Parliament and the Council of the European Union on
January 27, 2003, takes effect, whichever date is later.  The bill
would require the department to exclude certain electronic devices
from the regulations and would prohibit the department from requiring
the manufacture or sale of an electronic device that is different
than, or not otherwise prohibited by, the European Union, thereby
imposing a state-mandated local program by creating a new crime.  The
bill would also incorporate the provisions of the Electronic Waste
Recycling Act of 2003, as specified below, by reference into the
hazardous waste control laws.
   (2) Existing law requires the California Integrated Waste
Management Board to administer state programs to recycle various
specified materials.
   This bill would enact the Electronic Waste Recycling Act of 2003.
The bill would make it unlawful to sell, on and after July 1, 2004,
a covered electronic device in this state to a consumer, as defined,
unless the board or department determines that the manufacturer of
that device is in compliance with the act.  The bill would prohibit
the sale of a covered electronic device, after January 1, 2005, that
is not labeled, as specified.
   The bill would require a retailer selling a covered electronic
device in this state to collect an electronic waste recycling fee
from the consumer on and after July 1, 2004, and to transmit the fee
to the board in accordance with a schedule and procedures that the
board would be required to establish.  The bill would set the
electronic waste recycling fee in an amount according to a specified
fee schedule and would require the board, in collaboration with the
department, on and after July 1, 2005, and at least once every 2
years thereafter, to review and adjust the electronic waste recycling
fee, based on specified factors.
   The bill would require each manufacturer of an electronic device
who sells the device in this state, by July 1, 2005, and at least
once annually thereafter, to submit a report to the board on the
number of electronic devices sold by the manufacturer in this state
during the previous calendar year and other information regarding
certain specified materials in those devices.  A manufacturer would
also be required to make information available to consumers that
describes where and how to return, recycle, and dispose of the
electronic device and opportunities and locations for the collection
or return of the device, through specified means.
   The bill would impose civil liability for violations of specified
provisions.
   The bill would require the board, in collaboration with the
department, to convene an electronic waste working group to define
environmental purchasing criteria, by July 1, 2005, that may be used
by state agencies.  The bill would also require the board to annually
establish and update, as necessary, statewide electronic waste
recycling goals.
   The bill would require the board and the department to deposit the
fees and fines collected under the act in the Electronic Waste
Recovery and Recycling Account, which the bill would create in the
Integrated Waste Management Fund in the State Treasury.
   This bill would authorize the board and the department to expend
the moneys deposited in the account, upon appropriation by the
Legislature, to make electronic waste recovery payments to authorized
collectors, to make electronic waste recycling payments to covered
electronic waste recyclers, and to administer the act, and provisions
regulating covered electronic devices.  The bill would also allow
the expenditure of not more than 1% of the funds in the account to
establish public information programs on recycling of hazardous
electronic devices.
   The bill would require the board, in collaboration with the
department, to establish on July 1, 2004, and on July 1 every 2 years
thereafter, an electronic waste recovery payment schedule to cover
the net cost of an authorized collector in operating a free and
convenient system for collecting, consolidating and transporting
covered electronic wastes generated in this state and would require
the board to make those payments to authorized collectors or to a
covered electronic waste recycler for payment to an authorized
collector.  The bill would also require the board to establish an
electronic waste recycling payment schedule to cover an e-waste
recycler's net cost of receiving, processing, and recycling covered
electronic waste from an authorized collector and would require the
board to make those payments to covered electronic waste recyclers.
The bill would allow a recycler to receive these payments only if the
recycler meets specified eligibility requirements regarding the
recycler's facilities.  The bill would authorize the board and the
department to adopt regulations to implement the bill and would
authorize these regulations to be adopted as emergency regulations,
as specified.
   The bill would require any person who intends to export electronic
waste to a foreign destination to comply with specified notification
requirements and to demonstrate, among other things, that the
handling of the exported electronic waste within the country of
destination would meet certain standards adopted by the Organization
for Economic Co-operation and Development.
   Since the bill would incorporate the provisions of this act into
the hazardous waste control laws, a violation of which is a crime,
the bill would impose a state-mandated local program by creating new
crimes.
   (3) Existing law, the California Integrated Waste Management Act
of 1989, requires the county or regional agency integrated waste
management plan that a county or regional agency is required to
submit to the board to contain a household hazardous waste element.
   This bill would require, on and after January 1, 2004, that when a
county or regional agency revises the county or regional integrated
waste management plan and its elements, the city household hazardous
waste element and county household hazardous waste element would be
required to identify those actions the city, county, or regional
agency is taking to promote the collection, consolidation, recovery,
and recycling of covered electronic waste, thereby creating a
state-mandated local program by imposing new duties upon local
agencies.
   (4) This bill would provide that its provisions are severable.
  (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for specified reasons.


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


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Electronic waste represents one of the fastest growing and
hazardous components of California's waste stream.
   (b) According to the United States Environmental Protection
Agency, more than 4.3 million tons of appliances and consumer
electronics were discarded in 1999.
   (c) Due to the presence of toxic lead, mercury, or other hazardous
or potentially hazardous materials in electronic waste, this waste
poses a particular threat to public health and the environment when
improperly discarded.
   (d) A study conducted by the California Integrated Waste
Management Board estimates that California households currently have
more than 6,000,000 obsolete computer monitors and television sets
"stockpiled" in their homes.
   (e) A study for the National Safety Council projects that more
than 10,000 computers and televisions become obsolete in California
every day.  The study further projects that three-quarters of all
computers ever purchased in the United States remain stockpiled in
storerooms, attics, garages, or basements.
   (f) It is estimated that only 20 percent of obsolete computers and
televisions are currently recovered for recycling.
   (g) Electronic waste recovered for recycling, including devices
from California public agencies, has been found to have been
illegally handled and discarded in developing countries, posing a
significant threat to public health, worker safety, and the
environment in those countries.
   (h) The collection, handling, and management of electronic waste
that is currently recovered represents a costly and growing problem
for local governments and nonprofit organizations, including Goodwill
Industries and the Salvation Army.
   (i) The high technology sector represents a vital and important
part of California's economy.
   (j) The system to reduce and recycle electronic waste established
pursuant to this act should establish strict and enforceable
requirements on all regulated entities while being cost-effective and
providing flexibility to take advantage of the innovation of the
high technology sector.
   (k) The system should also ensure that the state will impose
compliance obligations uniformly on all regulated entities to ensure
that companies accepting their responsibilities are not penalized by
the potential noncompliance of other companies.
   (l) The system should also be scalable to national, international,
and global systems to take into account obligations that may be
imposed on manufacturers of hazardous electronic devices beyond those
imposed under this act.
   (m) The system should ensure 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 California.
   (n) The Governor has requested that the Legislature enact
legislation in 2003 challenging industries to assume greater
responsibility for the recycling and disposal of electronic waste,
stating that "California needs a comprehensive and innovative state
law that partners with product manufacturers, establishes recycling
targets, and provides for the safe recycling and disposal of
electronic wastes."  The Governor further expressed support for a
system that "provides incentives to design products that are less
toxic and more recyclable."
  SEC. 2.  Article 10.3 (commencing with Section 25214.9) is added to
Chapter 6.5 of Division 20 of the Health and Safety Code, to read:
      Article 10.3.  Electronic Waste

   25214.9.  (a) The requirements and other provisions of Chapter 8.5
(commencing with Section 42460) of Part 3 of Division 30 of the
Public Resources Code are incorporated by reference as requirements
and provisions of this chapter.
   (b) To the extent consistent with the federal act, the department
may, by regulation, establish management standards as an alternative
to one or more of the standards in this chapter, for any specified
activity that involves the  management of an electronic waste.
   25214.10.  (a) For purposes of this section "electronic device"
has the same meaning as a "covered electronic device", as defined in
subdivision (g) of Section 42463 of Public Resources Code.
   (b) The department shall adopt regulations, in accordance with
this section, that prohibit an electronic device from being sold or
offered for sale in this state if the electronic device is prohibited
from being sold or offered for sale in the European Union on and
after its date of manufacture, to the extent that Directive
2002/95/EC, adopted by the European Parliament and the Council of the
European Union on January 27, 2003, prohibits that sale due to the
presence of certain heavy metals.
   (c) The regulations adopted pursuant to subdivision (a) shall take
effect January 1, 2007, or on or after the date the Directive
2002/95/EC, adopted by the European Parliament and the Council of the
European Union on January 27, 2003, takes effect, whichever date is
later.
   (d) The department shall exclude, from the regulations adopted
pursuant to this section, the sale of an electronic device that
contains a substance that is used to comply with the consumer,
health, or safety requirements that are required by the Underwriters
Laboratories, the federal government, or the state.
   (e) In adopting regulations pursuant to this section, the
department may not require the manufacture or sale of any electronic
device that is different than, or otherwise not prohibited by, the
European Union under Directive 2002/95/EC, adopted by the European
Parliament and the Council of the European Union on January 27, 2003.

   (f) The department may not adopt any regulations pursuant to this
section that impose any requirements or conditions that are in
addition to, or more stringent than, the requirements and conditions
expressly authorized by this section.
  SEC. 3.  Article 4 (commencing with Section 41516) is added to
Chapter 3.5 of Part 2 of Division 30 of the Public Resources Code, to
read:

      Article 4.  Covered Electronic Waste

   41516.  (a) For purposes of this article, " covered electronic
waste" has the same meaning as defined in subdivision (g) of Section
42463.
   (b) On and after January 1, 2004, when a county or regional agency
revises the countywide or regional integrated waste management plan
and its elements pursuant to Section 41770, the city household
hazardous waste element and county household hazardous waste element
in the plan shall identify those actions the city, county, or
regional agency is taking to promote the collection, consolidation,
recovery, and recycling of covered electronic waste.
  SEC. 5.  Chapter 8.5 (commencing with Section 42460) is added to
Part 3 of Division 30 of the Public Resources Code, to read:

      CHAPTER 8.5.  ELECTRONIC WASTE RECYCLING
      Article 1.  General Provisions

   42460.  This act shall be known, and may be cited, as the
Electronic Waste Recycling Act of 2003.
   42461.  The Legislature finds and declares all of the following:
   (a) The purpose of this chapter is to enact a comprehensive and
innovative system for the reuse, recycling, and proper and legal
disposal of covered electronic devices, and to provide incentives to
design electronic devices that are less toxic, more recyclable, and
that use recycled materials.
   (b) It is the further purpose of this chapter to enact a law that
establishes a program that is cost free and convenient for consumers
and the public to return, recycle, and ensure the safe and
environmentally-sound disposal of covered electronic devices.
   (c) It is the intent of the Legislature that the cost associated
with the handling, recycling, and disposal of covered electronic
devices is the responsibility of the producers and consumers of
covered electronic devices, and not local government or their service
providers, state government, or taxpayers.
   (d) In order to reduce the likelihood of illegal disposal of these
hazardous materials, it is the intent of this chapter to ensure that
any cost associated with the proper management of covered electronic
devices be internalized by the producers and consumers of covered
electronic devices at or before the point of purchase, and not at the
point of discard.
   (e) Manufacturers of covered electronic devices, in working to
achieve the goals and objectives of this chapter, should have the
flexibility to partner with each other and with those public sector
entities and business enterprises that currently provide collection
and processing services to develop and promote a safe and effective
covered electronic device recycling system for California.
   (f) The producers of electronic products, components, and devices
should reduce and, to the extent feasible, ultimately phase out the
use of hazardous materials in those products.
   (g) Electronic products, components, and devices, to the greatest
extent feasible, should be designed for extended life, repair, and
reuse.
   (h) The purpose of the Hazardous Electronic Waste Recycling Act is
to provide sufficient funding for the safe, cost-free, and
convenient collection and recycling of 100 percent of the covered
electronic waste discarded or offered for recycling in the state, to
eliminate electronic waste stockpiles and legacy devices by December
31, 2007, to end the illegal disposal of covered electronic devices,
to establish manufacturer responsibility for reporting to the board
on the manufacturer's efforts to phase out hazardous materials in
electronic devices and increase the use of recycled materials, and to
ensure that electronic devices sold in the state do not violate the
regulations adopted by the Department of Toxic Substances Control
pursuant to Section 25214.10 of the Health and Safety Code.

      Article 2.  Definitions

   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) Any entity that collects, handles, consolidates, and
transports covered electronic devices and has filed a notification
with the department pursuant to Article 7 (commencing with Section
66273.80) of Chapter 23 of Division 4.5 of Title 22 of the California
Code of Regulations.
   (c) "Board" means the California Integrated Waste Management
Board.
   (d) (1) "Consumer" means a purchaser or owner of a covered
electronic device.  "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.
   (2) (A) "Consumer" does not include a manufacturer who purchases
specialty or medical electronic equipment that is a covered
electronic device.
   (B) For purposes of this paragraph, "medical electronic equipment"
includes, but is not limited to, radiotherapy equipment, cardiology
equipment, dialysis equipment, pulmonary ventilators, nuclear
medicine equipment, laboratory equipment for in-vitro diagnosis,
analyzers and freezers.
   (C) For purposes of this paragraph "specialty electronic equipment"
includes, but is not limited to, smoke detectors, heating
regulators, and thermostats.
   (e) "Department" means the Department of Toxic Substances Control.

   (f) (1) "Covered electronic device" means a cathode ray tube,
cathode ray tube device, flat panel screen, or any other similar
video display device with a screen size that is greater than four
inches in size measured diagonally and which the department
determines, when discarded or disposed, would be a hazardous waste
pursuant to Chapter 6.5 (commencing with Section 25100) of Division
20 of the Health and Safety Code.
   (2) "Covered electronic device" does not include an automobile or
a large piece of commercial or industrial equipment, including, but
not limited to, commercial medical equipment, that contains a cathode
ray tube, cathode ray tube device, flat panel screen, or other
similar video display device that is contained within, and is not
separate from, the larger piece of industrial or commercial
equipment.
   (g) "Covered electronic waste" or "covered e-waste" means a
covered electronic device that is discarded or disposed.
   (h) "Covered electronic waste recycling fee" or "covered e-waste
recycling fee" means the fee imposed pursuant to Article 3
(commencing with Section 42464).
   (i) "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.
   (j) "Electronic waste recovery payment" means an amount
established and paid by the board pursuant to Section 42477.
   (k) "Electronic waste recycling payment" means a payment made by
the board to an authorized collector of covered electronic waste
pursuant to Section 42477.
   (l) "Electronic waste recycling payment" means an amount
established and paid by the board pursuant to Section 42478.
   (m) "Hazardous material" has the same meaning as defined in
Section 25501 of the Health and Safety Code.
   (n) "Manufacturer" means any of the following:
   (A) A person who manufacturers a covered electronic device sold in
this state.
   (B) A person who sells a covered electronic device in this state
under a person's brand name.
   (o) "Retailer" means a person who sells a covered electronic
device in the state to a consumer but who did not manufacture the
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,
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.
   (p) (1) "Sell" or "sale" means any 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 (n),
"distributor" means a person who sells a covered electronic device to
a retailer.

      Article 3.  Covered Electronic Waste Recycling Fee

   42464.  (a) On and after July 1, 2004, a covered electronic waste
recycling fee is hereby imposed upon the first sale in the state of a
covered electronic device to a consumer by a retailer.
   (b) A retailer that sells a covered electronic device to a
consumer shall collect the fee imposed under subdivision (a) for each
covered electronic device sold by the 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.
   (c) The electronic waste recycling fee collected pursuant to this
section shall be transmitted to the board in accordance with a
schedule and procedure that the board shall establish pursuant to
Sections 42475 and 42475.2.  The covered electronic waste recycling
fees shall be deposited in the account pursuant to Section 42476.
   (d) A retailer selling a covered electronic device may retain 3
percent of the covered electronic waste recycling fee as
reimbursement for any costs associated with the collection of the
fee.
   (e) On and after July 1, 2005, and at least once every two years
thereafter, 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.  The
board shall base any adjustment of the covered electronic waste
recycling fee on the both of following factors:
   (1) The sufficiency, and any surplus, of revenues in the account
to fund the collection, consolidation, and recycling of 100 percent
of the 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.
   42464.2.  The board may collect the fees imposed pursuant to this
section pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001) of Division 2 of the Revenue and
Taxation Code).  The board may contract with the State Board of
Equalization or another party for collection of fees due under this
section.

      Article 4.  Manufacturer Responsibility

   42465.  On and after July 1, 2004, it shall be unlawful to sell a
covered electronic device to a consumer in this state unless the
board or department determines that the manufacturer of that covered
electronic device demonstrates compliance with this chapter.
   42465.1.  On and after January 1, 2005, a person may not sell or
offer for sale in this state a covered electronic device unless the
device is labeled with the name of the manufacturer or the
manufacturer's brand label, so that it is readily visible.
   42465.2.  (a) On or before July 1, 2005, and at least once
annually thereafter as determined by the board, each manufacturer of
a covered electronic device who sells those devices 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, PBDE's, 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 recycled 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.
   (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) 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.
   42465.3.  On or before April 1, 2004, a manufacturer shall inform
the retailer if a covered electronic device sold by that manufacturer
is subject to the covered electronic waste recycling fee established
pursuant to this chapter.

      Article 5.  Administration

   42472.  (a) The imposition of a covered electronic waste recycling
fee is a matter of statewide interest and concern and is applicable
uniformly throughout the state.  A city, county, city and county, or
other public agency may not adopt, implement, or enforce an
ordinance, resolution, regulation, or rule requiring a consumer,
manufacturer, or retailer to recycle covered electronic devices or
imposing a covered electronic waste recycling fee upon a
manufacturer, retailer, or consumer, unless expressly authorized
under this chapter.
   (b) Nothing in this section prohibits the adoption,
implementation, or enforcement of any local ordinance, resolution,
regulation, or rule governing curbside or drop off recycling programs
operated by, or pursuant to a contract with, a city, county, city
and county, or other public agency, including any action relating to
fees for these programs.  Nothing in this section shall be construed
to affect any contract, franchise, permit, license, or other
arrangement regarding the collection or recycling of solid waste or
household hazardous waste.
   42473.  The Legislature declares that the imposition of a covered
electronic waste recycling fee would not result in the imposition of
a tax within the meaning of Article XIII A of the California
Constitution, because the amount and nature of the fee has a fair and
reasonable relationship to the adverse environmental burdens imposed
by the disposal of covered electronic devices and there is a
sufficient nexus between the fee imposed and the use of those fees to
support the recycling and reuse of these devices.
   42474.  (a) Civil liability in an amount of up to two thousand
five hundred dollars ($2,500) per offense may be administratively
imposed by the board for each sale of a covered electronic device for
which a covered electronic waste recycling fee has not been paid
pursuant to Section 42464.
   (b) A civil penalty in an amount of up to five thousand dollars
($5,000) per offense may be imposed by a superior court for each sale
of a covered electronic device for which a covered electronic waste
recycling fee has not been paid pursuant to Section 42464.
   (c) Civil liability in an amount of up to twenty-five thousand
dollars ($25,000) may be administratively imposed by the board
against manufacturers for failure to comply with this chapter, except
as otherwise provided in subdivision (a).
   42474.5.  This chapter and all regulations adopted pursuant to
this chapter may be enforced by the department pursuant to Chapter
6.5 (commencing with Section 25100) of Division 20 of the Health and
Safety Code.
   42475.  (a) The board shall administer this chapter in
consultation with the department.
   (b) The board may adopt any regulations pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code that are necessary to implement this chapter.
   (c) The board shall adopt regulations pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code that ensure the protection of any proprietary
information submitted to the board by a manufacturer of covered
electronic devices.
   (d) The board and the department may prepare, publish, or issue
any materials that the board determines to be necessary for the
dissemination of information concerning the activities of the board
under this chapter.
   (e) In carrying out this chapter, the board and the department may
solicit and use any and all expertise available in other state
agencies, including, but not limited to, the department, the
Department of Conservation, and the State Board of Equalization.
   42475.1.  The board and department may adopt regulations pursuant
to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code that are necessary to implement
this chapter, and any other regulations that the board and the
department determines are necessary to implement the provisions of
this chapter in a manner that is enforceable.
   42475.2.  (a) The board and the department may adopt regulations
to implement this chapter as emergency regulations.
   (b) The emergency regulations adopted pursuant to this chapter
shall be adopted by the board and the department in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and for the purposes of that
chapter, including Section 11349.6 of the Government Code, the
adoption of these regulations is an emergency and shall be considered
by the Office of Administrative Law as necessary for the immediate
preservation of the public peace, health, and safety, and general
welfare.  Notwithstanding Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code, any
emergency regulations adopted by the department pursuant to this
section shall be filed with, but not be repealed by, the Office of
Administrative Law and shall remain in effect for a period of two
years or until revised by the department or the board, whichever
occurs sooner.
   42475.3.  The board in collaboration with the department shall
convene a covered electronic waste working group comprised of
representatives from manufacturers of covered electronic
                                 devices and other interested parties
to develop and, by July 1, 2005, advise the board and the State and
Consumer Services Agency on environmental purchasing criteria that
may be used by state agencies to identify covered electronic devices
with reduced environmental impacts.  In defining criteria, the group
shall consider the environmental impacts of products over their
entire life cycle, as well as tradeoffs in other product attributes
such as safety, product functionality, and cost.  The group shall
also consider any federal product evaluation or rating system, or
market based system to promote the development and sale of
environmentally conscious products.
   42475.4.  (a) The board shall annually establish, and update as
necessary, statewide recycling goals for covered electronic waste.
In implementing this section, the board shall do all of the
following:
   (1) Post on its Web site information on the amount of covered
electronic devices sold in the state in the previous year as reported
to the board.
   (2) Post on its Web site information on the amount of covered
electronic waste recycled in the state in the previous year as
reported to the board.
   (3) Develop and adopt recycling goals, with input from
manufacturers, retailers, covered electronic waste recyclers, and
collectors, that reflect projections of covered electronic device
sales, rates of obsolescence, and stockpiles.
   (b) Nothing in this section authorizes the board to establish any
recycling rates or dates by which a manufacturer of covered
electronic devices shall comply with this chapter, or to impose any
other recycling goal or target on a manufacturer of those devices.

      Article 6.  Financial Provisions

   42476.  (a) The board and the department shall deposit all fees or
fines collected under this chapter into the Electronic Waste
Recovery and Recycling Account, which is hereby created in the
Integrated Waste Management Fund.  The funds in the Electronic Waste
Recovery and Recycling Account may be expended by the board and
department, upon appropriation by the Legislature, for the following
purposes:
   (1) To make electronic waste recovery payments to an authorized
collector of covered electronic waste pursuant to Section 42479.
   (2) To make electronic waste recycling payments to covered
electronic waste recyclers of covered electronic waste pursuant to
Section 42479.
   (3) To provide for costs of the board and the department to
administer this chapter.
   (4) 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.
   (b) 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.
   (c) 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.
   (d) The board may not provide any payment for covered electronic
devices unless the materials will be handled in compliance with all
statutes and regulations regarding the export of hazardous wastes.
No payment may be made for covered electronic devices exported to any
country where the export import of hazardous waste is prohibited.
   (e) The board may not provide any payment for covered electronic
waste unless the materials are handled in compliance with all
statutes and regulations regarding the export of hazardous wastes,
including, but not limited to, Section 42476.5.
   42476.5.  Except as provided in Section 42476.6, any person who
intends to export covered electronic waste to a foreign destination
shall comply with all of the following at least 60 days prior to
export:
   (a) Notify the department of the destination, contents, and volume
of covered electronic waste to be exported.
   (b) Demonstrate that the importation of covered electronic waste
is not prohibited by any applicable law or regulation of the country
of destination and that any import is conducted in accordance with
all applicable laws.  As part of this demonstration, required import
and operating licenses shall be forwarded to the department.
   (c) Demonstrate that the exportation of covered electronic waste
is conducted only in accordance with applicable international law.
   (d) Demonstrate that the management of the exported covered
electronic waste will be handled within the country of destination in
accordance with applicable rules, standards, and requirements
adopted by the Organization for Economic Co-operation and Development
for the environmentally sound management of electronic waste.
   (e) Demonstrate that the covered electronic waste is being
exported for the purpose of reuse or recycling.
   42476.6.  Section 42476.5 does not apply to a component part of a
covered electronic device that is exported to an authorized collector
or recycler and that is reused or recycled into a new electronic
component.
   42477.  On July 1, 2004, and on July 1 every two years thereafter,
the board in collaboration with the department shall establish an
electronic waste recovery payment schedule for covered electronic
wastes generated in this state to cover the net cost for an
authorized collector to operate a free and convenient system for
collecting, consolidating and transporting covered electronic wastes
generated in this state.  The board shall make the electronic waste
recovery payments either directly to an authorized collector or to a
covered electronic waste recycler for payment to an authorized
collector pursuant to this article.
   42478.  On July 1, 2004, and on July 1 every two years thereafter,
the board, in collaboration with the department shall establish a
covered electronic waste recycling payment schedule for covered
electronic wastes generated in this state to cover an electronic
waste recycler's net cost to receive, process, and recycle a covered
electronic device from an authorized collector.  The board shall make
the electronic waste recycling payments to a covered electronic
waste recycler pursuant to this article.
   42479.  (a) (1) The board shall make electronic waste recovery
payments and electronic waste recycling payments for the collection
and recycling of covered electronic waste to an authorized collector
or covered electronic waste recycler, respectively, upon receipt of a
completed and verified invoice submitted to the board by the
authorized collector or recycler in the form and manner determined by
the board.
   (2) To the extent authorized pursuant to Section 42477, a covered
electronic waste recycler shall make the electronic waste recovery
payments to an authorized collector upon receipt of a completed and
verified invoice submitted to the recycler by the authorized
collector in the form and manner determined by the board.
   (b) An e-waste recycler is eligible for a payment pursuant to this
section only if the e-waste recycler meets all of the following
requirements:
   (1) The e-waste recycler is in compliance with applicable
requirements of Article 6 (commencing with Section 66273.70) of
Chapter 23 of Division 4.5 of Title 22 of the California Code of
Regulations.
   (2) The e-waste recycler demonstrates to the board that any
facility utilized by the e-waste recycler for the handling,
processing, refurbishment, or recycling of covered electronic devices
meets all of the following standards:
   (A) The facility has been inspected by the department within the
past 12 months and had been found to be operating in conformance with
all applicable laws, regulations and ordinances.
   (B) The facility is accessible during normal business hours for
unannounced inspections by state or local agencies.
   (C) The facility has health and safety, employee training, and
environmental compliance plans and certifies compliance with the
plans.
   (D) The facility meets or exceed the standards specified in
Chapter 1 (commencing with Section 1171) of Part 4 of Division 2
Division 4 (commencing with Section 3200), and Division 5 (commencing
with Section 6300), of the Labor Code or, if all or part of the work
is to be performed in another state, the equivalent requirements of
that state.

      Article 7.  State Agency Procurement

   42480.  (a) A state agency that purchases or leases covered
electronic devices 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 covered electronic devices.
   (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 8.  Inapplicability of Chapter

   42485.  The board or the department shall not implement this
chapter if either of the following occur:
   (a) A federal law, or a combination of federal laws, takes effect
and does all of the following:
   (1) Establishes a program for the collection, recycling, and
proper disposal of covered electronic waste that is applicable to all
cathode ray tube devices sold in the United States.
   (2) Provides revenues to the state to support the collection,
recycling, and proper disposal of covered electronic waste, in an
amount that is equal to, or greater than, the revenues that would be
generated by the fee imposed under Section 42464.
   (3) Requires covered electronic device manufacturers, retailers,
handlers, processors, and recyclers to dispose of those devices in a
manner that is in compliance with all applicable federal, state, and
local laws, regulations, and ordinances, and prohibits the devices
from being exported for disposal in a manner that poses a significant
risk to the public health or the environment.
   (b) A trial court issues a judgment, which is not appealed, or an
appellate court issues an order affirming a judgment of a trial
court, holding that out-of-state manufacturers or retailers, or both,
may not be required to collect the fee authorized by this chapter.
The order shall be stayed until all appeals are concluded.  The
out-of-state manufacturers or retailers, or both, shall continue to
collect the fee during the appellate process.
  SEC. 5.  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.
  SEC. 6.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the 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 or because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.