BILL NUMBER: SB 50	CHAPTERED
	BILL TEXT

	CHAPTER  863
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2004
	PASSED THE SENATE  AUGUST 27, 2004
	PASSED THE ASSEMBLY  AUGUST 27, 2004
	AMENDED IN ASSEMBLY  AUGUST 26, 2004
	AMENDED IN ASSEMBLY  AUGUST 23, 2004
	AMENDED IN ASSEMBLY  AUGUST 18, 2004
	AMENDED IN ASSEMBLY  JUNE 21, 2004
	AMENDED IN ASSEMBLY  JUNE 7, 2004
	AMENDED IN SENATE  JANUARY 16, 2004
	AMENDED IN SENATE  JANUARY 7, 2004

INTRODUCED BY   Senator Sher
   (Principal coauthor:  Assembly Member Jackson)

                        JANUARY 9, 2003

   An act to amend Section 25214.10 of, and to add Sections
25214.10.1 and 25214.10.2 to, the Health and Safety Code, and to
amend Sections 42463, 42464, 42465, 42465.1, 42465.2, 42465.3, 42475,
42475.2, 42476, 42476.5, 42477, 42478, 42479, and 42485 of, to add
Sections 42464.4, 42464.6, 42846, and 48000 to, to repeal Section
42475.1 of, and to repeal and add Section 42464.2 of, the Public
Resources Code, relating to solid waste, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 50, Sher.  Solid waste:  hazardous electronic waste:  solid
waste disposal fees.
   (1) (A) The Electronic Waste Recycling Act of 2003 makes it
unlawful to sell, on or after July 1, 2004, a covered electronic
device, as defined, in this state to a consumer, as defined, unless
the California Integrated Waste Management Board (board) or the
Department of Toxic Substances Control (department) determines that
the manufacturer of that device is in compliance with the act.
   (B) The act requires a retailer selling a covered electronic
device in this state to collect a covered electronic waste recycling
fee from the consumer, as specified.  The act requires a
manufacturer, on or before April 1, 2004, to inform the retailer if a
covered electronic device is subject to the waste recycling fee.
   This bill would require the department to adopt regulations to
identify electronic devices, as defined, that the department
determines are presumed to be, when discarded, a hazardous waste
pursuant to the hazardous waste control laws.
   The bill would require a manufacturer to inform a retailer and the
State Board of Equalization, in accordance with a specified
schedule, whether a device is a covered electronic device that is
identified in the regulations adopted by the department and would
require a covered electronic device identified in the regulations, to
be subject to the act in a specified manner.  The bill would specify
a procedure for a manufacturer to obtain a written nonhazardous
determination from the department that an electronic device would not
be a hazardous waste when discarded. The bill would require a
manufacturer to notify certain retailers with regard to that
determination.   The bill would authorize the department to adopt
emergency regulations to implement these requirements.
   The bill would, instead of (A) above, prohibit a person from
selling a new or refurbished covered electronic device in this state,
on and after January 1, 2005, if the board or department determines
that the manufacturer of the covered electronic device is not in
compliance with the act.
   (2) Existing law, the act, requires a retailer selling a covered
electronic device in this state to collect an electronic waste
recycling fee from the consumer on and after November 1, 2004, and to
transmit the fee to the board in accordance with a schedule and
procedures that the board is required to establish.  The act requires
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.
   This bill, under certain circumstances, would make inapplicable
certain penalties relating to the sale of a covered electronic device
for which a fee has not been paid to which retailers are otherwise
subject under existing law.
   The bill would revise the definitions of the terms "consumer,"
"covered electronic device," "covered electronic waste," "person,"
"retailer," and "retail sale," and would define the terms "discarded,"
"recycling," "refurbished," and "video display device" for purposes
of the act.
   The bill would require a retailer to collect the fee on and after
January 1, 2005, instead of November 1, 2004, except as specified.
   The bill would revise the procedures for reviewing and adjusting
the covered electronic waste recycling fee.
   The bill would repeal the authorization for the board to collect
the fee and would require the State Board of Equalization to collect
the electronic waste recycling fees.  The bill would require those
fees to be deposited in the Electronic Waste Recovery and Recycling
Account.  The bill would require the covered electronic waste
recycling fee to be due and payable quarterly on or before the last
day of the month following each calendar quarter.
   (3) The act requires each manufacturer of an electronic device who
sells a covered electronic device in this state to submit an annual
report to the board on the number of electronic devices sold by the
manufacturer.
   This bill would authorize a manufacturer to report only on those
covered electronic devices that include applications of specified
compounds that are exempt from Directive 2002/95/EC, as specified.
   (4) Under existing law, the Electronic Waste Recovery and
Recycling Account is created in the Integrated Waste Management Fund
and the board and the department are authorized to expend the moneys
deposited in the account, upon appropriation by the Legislature, for
specified purposes.
   This bill would continuously appropriate the money in the account
to pay refunds and make electronic waste recovery payments and
recycling payments.  The bill would additionally continuously
appropriate the money to make specified payments to manufacturers.
The bill would authorize the money in the account to be expended,
upon appropriation by the Legislature, for the other specified
purposes.
   The bill would establish the Electronic Waste Penalty Subaccount
in the account, would require all fines or penalties collected
pursuant to the act to be deposited in the subaccount, and would
authorize the expenditure of the funds in the subaccount only upon
appropriation by the Legislature.
   (5) Existing law requires the board, in collaboration with the
department, to establish 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.  Existing law also
requires 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.  Existing law
requires the board to make those payments, as specified.
   The bill would, instead, require the board to make those payments
for covered electronic waste collected for recycling on and after
January 1, 2005.
   The bill would require the amount of the electronic waste
recycling payment to be equal to $0.28 per pound of the total weight
of covered electronic waste received from an authorized collector and
subsequently processed for recycling, until the board adopts an
electronic waste recycling payment schedule for covered electronic
waste.
   This bill would require the board to adopt regulations specifying
cancellation methods for the recovery, processing, or recycling of
covered electronic waste and would revise the conditions under which
the board may make those payments, including requiring the
manufacturer or authorized collector or recycler to provide a
cost-free and convenient opportunity to recycle electronic waste.
The bill would  also require the covered electronic waste, if
processed, to be processed in this state according to the
cancellation procedure adopted by the board and,  would require, as a
condition of making those payments, that the board  declare that the
state is a market participant in the business of the recycling of
covered electronic waste, as specified.  The bill would authorize the
board to make a payment to a manufacturer who takes back covered
electronic waste from a consumer in this state, as specified.
   (6) Existing law requires a 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 Cooperation and Development.
   This bill would instead require a person who exports covered
electronic waste, or a covered electronic device intended for
recycling or disposal, to a foreign country, or to another state for
ultimate export to a foreign country, to comply with specified
notification requirements and make specified demonstrations,
including a demonstration with regard to management of the waste in
accordance with the decisions and implementing guidelines of the
Organization for Economic Cooperation and Development,
notwithstanding that the country of destination is not a member of
the Organization for Economic Cooperation and Development.
   (7) Existing law prohibits the board and the department from
implementing the act if specified circumstances occur.
   This bill would provide that the provisions of the act shall
become inoperative on the date that one of those circumstances
occurs, except for specified purposes.
   (8) The bill would also make technical changes to the act.
   (9) Because the act is incorporated 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.
   (10) The California Integrated Waste Management Act of 1989
requires each operator of a disposal facility in the state to pay a
quarterly fee to the State Board of Equalization, as specified, for
all waste disposed of at each disposal site.  The fees are deposited
in the Integrated Waste Management Account, which may be expended by
the board, upon appropriation by the Legislature, for specified
purposes regarding the regulation of solid waste.
   This bill would require the board and the State Board of
Equalization to ensure that the fees that are collected at a transfer
station are paid to the State Board of Equalization
   (11) The bill would require the Director of Finance to transfer,
as a loan, up to $5,000,000 from the General Fund, and up to
$25,000,000 from any special fund authorized by law, to the board to
implement the bill.  The bill would require any loan to be repaid  on
or before November 1, 2005, and prior to the making of specified
expenditures.
  (12) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (13) The bill would declare that it is an urgency statute, to take
effect immediately.
   Appropriation:  yes.


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


  SECTION 1.  Section 25214.10 of the Health and Safety Code is
amended to read:
   25214.10.  (a) For purposes of this section, "electronic device"
has the same meaning as a "covered electronic device," as defined in
Section 42463 of the 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, and as amended thereafter by the
Commission of European Communities, prohibits that sale due to the
presence of certain heavy metals.
   (c) The regulations adopted pursuant to subdivision (b) shall take
effect January 1, 2007, or on or after the date 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 an 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) (1) 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.
   (2) In complying with this subdivision, the department shall use,
in addition to any other information deemed relevant by the
department, the published decisions of the Technical Adaptation
Committee and European Union member states that interpret the
requirements of Directive 2002/95/EC.
  SEC. 2.  Section 25214.10.1 is added to the Health and Safety Code,
to read:
   25214.10.1.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Electronic device" means a video display device, as defined
in subdivision (t) of Section 42463 of the Public Resources Code,
with a screen size of greater than four inches.
   (2) "Covered electronic device," "manufacturer," and "retailer"
have the same meaning as those terms are defined in Section 42463 of
the Public Resources Code.
   (b) The department shall adopt regulations that identify
electronic devices that the department determines are presumed to be,
when discarded, a hazardous waste pursuant to this chapter.
   (c) (1) Except as provided in subdivision (e), a manufacturer of
an electronic device that is identified in the regulations adopted by
the department shall send a notice in accordance with the schedule
specified in subparagraph (A) or (B), as applicable, of paragraph
(3), to any retailer that sells that electronic device manufactured
by the manufacturer.  The notice shall identify the electronic
device, and shall inform the retailer that the electronic device is a
covered electronic device and is subject to a fee in accordance with
subdivision (d).
   (2) A manufacturer subject to this subdivision shall also send a
copy of the notice to the State Board of Equalization.
   (3) The notice required by this subdivision shall be sent in
accordance with the following schedule:
   (A) On or before October 1, 2004, the manufacturer shall send a
notice covering any electronic device manufactured by that
manufacturer that is identified in the regulations adopted by the
department on or before July 1, 2004, that identify the electronic
devices that the department determines are presumed to be, when
discarded, a hazardous waste pursuant to this chapter.
   (B) On or before April 1, 2005, and on or before every April 1 of
each year thereafter, the manufacturer shall send a notice covering
any electronic device manufactured by that manufacturer identified in
the regulations adopted by the department pursuant to subdivision
(b) on or before December 31 of the prior year.
   (4) If a retailer sells a refurbished covered electronic device,
the manufacturer is required to comply with the notice requirement of
this subdivision only if the manufacturer directly supplies the
refurbished covered electronic device to the retailer.
   (d) (1) Except as provided in subdivision (e), a covered
electronic device that is identified in the regulations adopted, on
or before July 1, 2004, by the department, that identify electronic
devices that the department determines are presumed to be, when
discarded, a hazardous waste pursuant to this chapter shall, on and
after January 1, 2005, be subject to Chapter 8.5 (commencing with
Section 42460) of Part 3 of Division 30 of the Public Resources Code,
including the fee imposed pursuant to Section 42464 of the Public
Resources Code.
   (2) Except as provided in subdivision (e), a covered electronic
device identified in the regulations adopted by the department,
pursuant to subdivision (b), shall, on and after July 1 of the year
subsequent to the year in which the covered electronic device is
first identified in the regulations, be subject to Chapter 8.5
(commencing with Section 42460) of Part 3 of Division 30 of the
Public Resources Code, including the fee imposed pursuant to Section
42464 of the Public Resources Code.
   (e) (1) If the manufacturer of an electronic device that is
identified in the regulations adopted by the department pursuant to
subdivision (b) obtains the concurrence of the department that an
electronic device, when discarded, would not be a hazardous waste, in
accordance with procedures set forth in Section 66260.200 of Title
22 of the California Code of Regulations, the electronic device shall
cease to be a covered electronic device and shall cease to be
subject to subdivisions (c) and (d) on the first day of the quarter
that begins not less than 30 days after the date that the department
provides the manufacturer with a written nonhazardous concurrence for
the electronic device pursuant to this subdivision.  A manufacturer
shall notify each retailer, to which that manufacturer has sold a
covered electronic device, that the device has been determined
pursuant to this subdivision to be nonhazardous and is no longer
subject to a covered electronic recycling fee.
   (2) No later than 10 days after the date that the department
issues a written nonhazardous concurrence to the manufacturer, the
department shall do both of the following:
   (A) Post on the department's Web site a copy of the nonhazardous
concurrence, including, but not limited to, an identification and
description of the electronic device to which the concurrence
applies.
   (B) Send a copy of the nonhazardous concurrence, including, but
not limited to, an identification and description of the electronic
device to which the concurrence applies, to the California Integrated
Waste Management Board and the State Board of Equalization.
   (f) Notwithstanding Section 42474 of the Public Resources Code, a
fine or penalty shall not be assessed on a retailer who unknowingly
sells, or offers for sale, in this state a covered electronic device
for which the covered electronic waste recycling fee has not been
collected or paid, if the failure to collect the fee was due to the
failure of the State Board of Equalization to inform the retailer
that the electronic device was subject to the fee.
  SEC. 3.  Section 25214.10.2 is added to the Health and Safety Code,
to read:
   25214.10.2.  A regulation adopted pursuant to this article may be
adopted as an emergency regulation 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, an emergency
regulation 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, whichever occurs sooner.
  SEC. 4.  Section 42463 of the Public Resources Code is amended to
read:
   42463.  For the purposes of this chapter, the following terms have
the following meanings, unless the context clearly requires
otherwise:
   (a) "Account" means the Electronic Waste Recovery and Recycling
Account created in the Integrated Waste Management Fund under Section
42476.
   (b) "Authorized collector" means any of the following:
   (1) A city, county, or district that collects covered electronic
devices.
   (2) A person or entity that is required or authorized by a city,
county, or district to collect covered electronic devices pursuant to
the terms of a contract, license, permit, or other written
authorization.
   (3) A nonprofit organization that collects or accepts covered
electronic devices.
   (4) A manufacturer or agent of the manufacturer that collects,
consolidates, and transports covered electronic devices for recycling
from consumers, businesses, institutions, and other generators.
   (5) An entity that collects, handles, consolidates, and transports
covered electronic devices and has filed applicable notifications
with the department pursuant to Chapter 23 (commencing with Section
66273.1) of Division 4.5 of Title 22 of the California Code of
Regulations.
   (c) "Board" means the California Integrated Waste Management
Board.
   (d) "Consumer" means a person who purchases a new or refurbished
covered electronic device in a transaction that is a retail sale or
in a transaction to which a use tax applies pursuant to Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code.
   (e) "Department" means the Department of Toxic Substances Control.

   (f) (1) Except as provided in paragraph (2), "covered electronic
device" means a video display device containing a screen greater than
four inches, measured diagonally, that is identified in the
regulations adopted by the department pursuant to subdivision (b) of
Section 25214.10.1 of the Health and Safety Code.
   (2) "Covered electronic device" does not include any of the
following:
   (A) A video display device that is a part of a motor vehicle, as
defined in Section 415 of the Vehicle Code, or any component part of
a motor vehicle assembled by, or for, a vehicle manufacturer or
franchised dealer, including replacement parts for use in a motor
vehicle.
   (B) A video display device that is contained within, or a part of
a piece of industrial, commercial, or medical equipment, including
monitoring or control equipment.
   (C) A video display device that is contained within a clothes
washer, clothes dryer, refrigerator, refrigerator and freezer,
microwave oven, conventional oven or range, dishwasher, room air
conditioner, dehumidifier, or air purifier.
   (D) An electronic device, on and after the date that it ceases to
be a covered electronic device under subdivision (e) of Section
25214.10.1 of the Health and Safety Code.
   (g) "Covered electronic waste" or "covered e-waste" means a
covered electronic device that is discarded.
   (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) "Discarded" has the same meaning as defined in subdivision (b)
of Section 25124 of the Health and Safety Code.
   (k) "Electronic waste recovery payment" means an amount
established and paid by the board 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:
   (1) A person who manufactures a covered electronic device sold in
this state.
   (2) A person who sells a covered electronic device in this state
under that person's brand name.
   (o) "Person" means an individual, trust firm, joint stock company,
business concern, and corporation, including, but not limited to, a
government corporation, partnership, limited liability company, and
association.  Notwithstanding Section 40170, "person" also includes a
city, county, city and county, district, commission, the state or a
department, agency, or political subdivision thereof, an interstate
body, and the United States and its agencies and instrumentalities to
the extent permitted by law.
   (p) "Recycling" has the same meaning as defined in subdivision (a)
of Section 25121.1 of the Health and Safety Code.
   (q) "Refurbished," when used to describe a covered electronic
device, means a device that the manufacturer has tested and returned
to a condition that meets factory specifications for the device, has
repackaged, and has labeled as refurbished.
   (r) "Retailer" means a person who makes a retail sale of a new or
refurbished covered electronic device.  "Retailer" includes a
manufacturer of a covered electronic device who sells that covered
electronic device directly to a consumer through any means,
including, but not limited to, a transaction conducted through a
sales outlet, catalog, or the Internet, or any other similar
electronic means.
   (s) (1) "Retail sale" has the same meaning as defined under
Section 6007 of the Revenue and Taxation Code.
   (2) "Retail sale" does not include the sale of a covered
electronic device that is temporarily stored or used in California
for the sole purpose of preparing the covered electronic device for
use thereafter solely outside the state, and that is subsequently
transported outside the state and thereafter used solely outside the
state.
   (t) "Video display device" means an electronic device with an
output surface that displays, or is capable of displaying, moving
graphical images or a visual representation of image sequences or
pictures, showing a number of quickly changing images on a screen in
fast succession to create the illusion of motion, including, if
applicable, a device that is an integral part of the display, in that
it cannot be easily removed from the display by the consumer, that
produces the moving image on the screen.  A video display device may
use, but is not limited to, a cathode ray tube (CRT), liquid crystal
display (LCD), gas plasma, digital light processing, or other image
projection technology.
  SEC. 5.  Section 42464 of the Public Resources Code is amended to
read:
   42464.  (a) On and after January 1, 2005, or as otherwise provided
by Section 25214.10.1 of the Health and Safety Code, a consumer
shall pay a covered electronic waste recycling fee upon the purchase
of a new or refurbished covered electronic device, in the following
amounts:
   (1) Six dollars ($6) for each covered electronic device with a
screen size of less than 15 inches measured diagonally.
   (2) Eight dollars ($8) for each covered electronic device with a
screen size greater than or equal to 15 inches but less than 35
inches measured diagonally.
   (3) Ten dollars ($10) for each covered electronic device with a
screen size greater than or equal to 35 inches measured diagonally.
   (b) Except as provided in subdivision (d), a retailer shall
collect from the consumer a covered electronic waste recycling fee at
the time of the retail sale of a covered electronic device.
   (c) A retailer may retain 3 percent of the covered electronic
waste recycling fee as reimbursement for all costs associated with
the collection of the fee and shall transmit the remainder of the fee
to the state pursuant to Section 42464.4.
   (d) If a retailer elects to pay the covered electronic waste
recycling fee on behalf of the consumer, the retailer shall provide
an express statement to that effect on the receipt given to the
consumer at the time of sale.  If a retailer elects to pay the
covered electronic waste recycling fee on behalf of the consumer, the
fee is a debt owed by the retailer to the state, and the consumer is
not liable for the fee.
   (e) The retailer shall separately state the covered electronic
waste recycling fee on the receipt given to the consumer at the time
of sale.
   (f) On or before August 1, 2005, and, thereafter, no more
frequently than annually, and no less frequently than biennially, the
board, in collaboration with the department, shall review, at a
public hearing, the covered electronic waste recycling fee and shall
make any adjustments to the fee to ensure that there are sufficient
revenues in the account to fund the covered electronic waste
recycling program established pursuant to this chapter.  Adjustments
to the fee that are made on or before August 1 shall apply to the
calendar year beginning the following January 1.  The board shall
base an adjustment of the covered electronic waste recycling fee on
both of the following factors:
   (1) The sufficiency, and any surplus, of revenues in the account
to fund the collection, consolidation, and recycling of covered
electronic waste that is projected to be recycled in the state.
   (2) The sufficiency of revenues in the account for the board and
the department to administer, enforce, and promote the program
established pursuant to this chapter, plus a prudent reserve not to
exceed 5 percent of the amount in the account.
  SEC. 6.  Section 42464.2 of the Public Resources Code is repealed.

  SEC. 7.  Section 42464.2 is added to the Public Resources Code, to
read:
   42464.2.  The State Board of Equalization shall collect the fee
imposed pursuant to this chapter under 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, a
reference in the Fee Collection Procedures Law to "feepayer" shall
include a retailer and a consumer.
  SEC. 8.  Section 42464.4 is added to the Public Resources Code, to
read:
   42464.4.  (a) The covered electronic waste recycling fee shall be
due and payable quarterly on or before the last day of the month
following each calendar quarter.  The payments shall be accompanied
by a return in the form as prescribed by the State Board of
Equalization or that person authorized to collect, including, but not
limited to, electronic media.
   (b) The State Board of Equalization may require the payment of the
fee and the filing of returns for other than quarterly periods.
  SEC. 8.5.  Section 42464.6 is added to the Public Resources Code,
to read:
   42464.6.  (a) The State Board of Equalization shall not accept or
consider a petition for redetermination of fees determined under this
chapter if the petition is founded upon the grounds that an item is
or is not a covered electronic device.  The State Board of
Equalization shall forward to the department any appeal of a
determination that is based on the grounds that an item is or is not
a covered electronic device.
   (b) The State Board of Equalization shall not accept or consider a
claim for refund of fees paid pursuant to this chapter if the claim
is founded upon the grounds that an item is or is not a covered
electronic device.  The State Board of Equalization shall forward to
the department any claim for refund that is based on the grounds that
an item is or is not a covered electronic device.
  SEC. 9.  Section 42465 of the Public Resources Code is amended to
read:
   42465.  On and after the date specified in subdivision (a) of
Section 42464, a person shall not sell a new or refurbished covered
electronic device to a consumer in this state if the board or
department determines that the manufacturer of that covered
electronic device is not in compliance with this chapter or as
provided otherwise by Section 25214.10.1 of the Health and Safety
Code.
  SEC. 10.  Section 42465.1 of the Public Resources Code is amended
to read:
   42465.1.  On and after January 1, 2005, or as specified otherwise
in Section 25214.10.1 of the Health and Safety Code, a person may not
sell or offer for sale in this state a new or refurbished 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.
  SEC. 11.  Section 42465.2 of the Public Resources Code is amended
to read:
   42465.2.  (a) On or before July 1, 2005, or as specified otherwise
in Section 25214.10.1 of the Health and Safety Code, and at least
once annually thereafter as determined by the board, each
manufacturer of a covered electronic device sold in this state shall
do all of the following:
   (1) Submit to the board a report that includes all of the
following information:
   (A) An estimate of the number of covered electronic devices sold
by the manufacturer in the state during the previous year.
   (B) A baseline or set of baselines that show the total estimated
amounts of mercury, cadmium, lead, hexavalent chromium, and PBB's
used in covered electronic devices manufactured by the manufacturer
in that year and the reduction in the use of those hazardous
materials from the previous year.
   (C) A baseline or set of baselines that show the total estimated
amount of recyclable materials contained in covered electronic
devices sold by the manufacturer in that year and the increase in the
use of those recyclable materials from the previous year.
   (D) A baseline or a set of baselines that describe any efforts to
design covered electronic devices for recycling and goals and plans
for further increasing design for recycling.
   (E) A list of those retailers, including, but not limited to,
Internet and catalog retailers, to which the manufacturer provided a
notice in the prior 12 months pursuant to Section 42465.3 and
subdivision (c) of Section 25214.10.1 of the Health and Safety Code.

   (2) Make information available to consumers, that describes where
and how to return, recycle, and dispose of the covered electronic
device and opportunities and locations for the collection or return
of the device, through the use of a toll-free telephone number,
Internet Web site, information labeled on the device, information
included in the packaging, or information accompanying the sale of
covered electronic device.
   (b) (1) For the purposes of complying with paragraph (1) of
subdivision (a), a manufacturer may submit a report to the board that
includes only those covered electronic devices that include
applications of the compounds listed in subparagraph (B) of paragraph
(1) of subdivision (a) that are exempt from the Directive 2002/95/EC
adopted by the European Parliament and the Council of the European
Union on January 27, 2003, and any amendments made to that directive,
if both of the following conditions are met, as modified by Section
24214.10 of the Health and Safety Code:
   (A) The manufacturer submits written verification to the
department that demonstrates, to the satisfaction of the department,
that the manufacturer is in compliance with Directive 2002/95/EC, and
any amendments to that directive, for those covered electronic
devices for which it is not submitting a report to the board pursuant
to this subdivision.
   (B) The department certifies that the manufacturer is in
compliance with Directive 2002/95/EC, and any amendments to that
directive, for those covered electronic devices for which the
manufacturer is not submitting a report to the board pursuant to this
subdivision.
   (2) When reporting pursuant to this subdivision, a manufacturer is
required only to report on specific applications of compounds used
in covered electronic devices that are exempt from Directive
2002/95/EC.
   (c) Any information submitted to the board pursuant to subdivision
(a) that is proprietary in nature or a trade secret shall be subject
to protection under state laws and regulations governing that
information.
  SEC. 12.  Section 42465.3 of the Public Resources Code is amended
to read:
   42465.3.  A manufacturer of a covered electronic device shall
comply with the notification requirements of subdivision (c) of
Section 25214.10.1 of the Health and Safety Code.
  SEC. 13.  Section 42475 of the Public Resources Code is amended to
read:
   42475.  (a) The board shall administer and enforce this chapter in
consultation with the department.
   (b) The board and the 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.
   (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 or department determines to be necessary
for the dissemination of information concerning the activities of
the board or department 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.
  SEC. 14.  Section 42475.1 of the Public Resources Code is repealed.

  SEC. 15.  Section 42475.2 of the Public Resources Code is amended
to read:
   42475.2.  (a) The board and the department may each adopt
regulations to implement and enforce this chapter as emergency
regulations.
   (b) The emergency regulations adopted pursuant to this chapter
shall be adopted 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, 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 board
or 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.
  SEC. 16.  Section 42476 of the Public Resources Code is amended to
read:
   42476.  (a) The Electronic Waste and Recovery and Recycling
Account is hereby established in the Integrated Waste Management
Fund.  All fees collected pursuant to this chapter shall be deposited
in the account.  Notwithstanding Section 13340 of the Government
Code, the funds in the account are hereby continuously appropriated,
without regard to fiscal year, for the following purposes:
   (1) To pay refunds of the covered electronic waste recycling fee
imposed under Section 42464.
   (2) To make electronic waste recovery payments to an authorized
collector of covered electronic waste pursuant to Section 42479.
   (3) To make electronic waste recycling payments to covered
electronic waste recyclers pursuant to Section 42479.
   (4) To make payments to manufacturers pursuant to subdivision (g).

   (b) (1) The money in the account may be expended for the following
purposes only upon appropriation by the Legislature in the annual
Budget Act:
   (A) For the administration of this chapter by the board and the
department.
   (B) To reimburse the State Board of Equalization for its
administrative costs of registering, collecting, making refunds, and
auditing retailers and consumers in connection with the covered
electronic waste recycling fee imposed under Section 42464.
   (C) To provide funding to the department to implement and enforce
Chapter 6.5 (commencing with Section 25100) of Division 20 of the
Health and Safety Code, as that chapter relates to covered electronic
devices, and any regulations adopted by the department pursuant to
that chapter.
   (D) To establish the public information program specified in
subdivision (d).
   (2) Any fines or penalties collected pursuant to this chapter
shall be deposited in the Electronic Waste Penalty Subaccount, which
is hereby established in the account.  The funds in the Electronic
Waste Penalty Subaccount may be expended by the board or department
only upon appropriation by the Legislature.
   (c) Notwithstanding Section 16475 of the Government Code, any
interest earned upon funds in the Electronic Waste Recovery and
Recycling Account shall be deposited in that account for expenditure
pursuant to this chapter.
   (d) Not more than 1 percent of the funds annually deposited in the
Electronic Waste Recovery and Recycling Account shall be expended
for the purposes of establishing the public information program to
educate the public in the hazards of improper covered electronic
device storage and disposal and on the opportunities to recycle
covered electronic devices.
   (e) The board shall adopt regulations specifying cancellation
methods for the recovery, processing, or recycling of covered
electronic waste.
   (f) The board may pay an electronic waste recycling payment or
electronic waste recovery payment for covered electronic waste only
if all of the following conditions are met:
   (1) The covered electronic waste, including any residuals from the
processing of the waste, is handled in compliance with all
applicable statutes and regulations.
   (2) The manufacturer or the authorized collector or recycler of
the electronic waste provide a cost free and convenient opportunity
to recycle electronic waste, in accordance with the legislative
intent specified in subdivision (b) of Section 42461.
   (3) If the covered electronic waste is processed, the covered
electronic waste is processed in this state according to the
cancellation method authorized by the board.
   (4) The board declares that the state is a market participant in
the business of the recycling of covered electronic waste for all of
the following reasons:
   (A) The fee is collected from the state's consumers for covered
electronic devices sold for use in the state.
   (B) The purpose of the fee and subsequent payments is to prevent
damage to the public health and the environment from waste generated
in the state.
   (C) The recycling system funded by the fee ensures that
economically viable and sustainable markets are developed and
supported for recovered materials and components in order to conserve
resources and maximize business and employment opportunities within
the state.
   (g) (1) The board may make a payment to a manufacturer that takes
back a covered electronic device from a consumer in this state for
purposes of recycling the device at a processing facility.  The
amount of the payment made by the board shall equal the value of the
covered electronic waste recycling fee paid for that device.  To
qualify for a payment pursuant to this subdivision, the manufacturer
shall demonstrate both of the following to the board:
   (A) The covered electronic device for which payment is claimed was
used in this state.
   (B) The covered electronic waste for which a payment is claimed,
including any residuals from the processing of the waste, has been,
and will be, handled in compliance with all applicable statutes and
regulations.
   (2) A covered electronic device for which a payment is made under
this subdivision is not eligible for an electronic waste recovery
payment or an electronic waste recycling payment under Section 42479.

  SEC. 17.  Section 42476.5 of the Public Resources Code is amended
to read:
   42476.5.  A person who exports covered electronic waste, or a
covered electronic device intended for recycling or disposal, to a
foreign country, or to another state for ultimate export to a foreign
country, shall do all of the following at least 60 days prior to
export:
   (a) Notify the department of the destination, disposition,
contents, and volume of the waste, or device intended for recycling
or disposal to be exported, and include with the notification the
demonstrations required pursuant to subdivisions (b) to (e),
inclusive.
   (b) Demonstrate that the waste or device is being exported for the
purposes of recycling or disposal.
   (c) Demonstrate that the importation of the waste or device is not
prohibited by an applicable law in the state or country of
destination and that any import will be conducted in accordance with
all applicable laws.  As part of this demonstration, required import
and operating licenses, permits, or other appropriate authorization
documents shall be forwarded to the department.
   (d) Demonstrate that the exportation of the waste or device is
conducted in accordance with applicable United States or applicable
international law.
   (e) (1) Demonstrate that the waste or device will be managed
within the country of destination only at facilities whose operations
meet or exceed the binding decisions and implementing guidelines of
the Organization for Economic Cooperation and Development for the
environmentally sound management of the waste or device being
exported.
   (2) The demonstration required by this subdivision applies to any
country of destination, notwithstanding that the country is not a
member of the Organization for Economic Cooperation and Development.

  SEC. 18.  Section 42477 of the Public Resources Code is amended to
read:
   42477.  (a) On July 1, 2004, or as specified otherwise in Section
25214.10.1 of the Health and Safety Code, 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.
   (b) 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.
  SEC. 19.  Section 42478 of the Public Resources Code is amended to
read:
   42478.  (a) Except as provided in subdivision (b), on July 1,
2004, or as specified otherwise in Section 25214.10.1 of the Health
and Safety Code, 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 the average net cost for an
electronic waste recycler to receive, process, and recycle each major
category, as determined by the board, of covered electronic waste
received from an authorized collector.  The board shall make the
electronic waste recycling payments to a covered electronic waste
recycler pursuant to this article.
   (b) Until the board adopts a new payment schedule that covers the
average net cost for an electronic waste recycler to receive,
process, and recycle each major category, as determined by the board
of covered electronic waste received from an authorized collector,
the amount of the covered electronic waste recycling payment shall be
equal to twenty-eight cents ($0.28) per pound of the total weight of
covered electronic waste received from an authorized collector and
subsequently processed for recycling.
  SEC. 20.  Section 42479 of the Public Resources Code is amended to
read:
   42479.  (a) (1) For covered electronic waste collected for
recycling on and after January 1, 2005, 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.
  SEC. 21.  Section 42485 of the Public Resources Code is amended to
read:
   42485.  Except as provided in subdivision (b) of Section 42486,
the board and 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
covered electronic 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, 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 out-of-state manufacturers or retailers, or both, shall continue
to collect the fee during the appellate process.
  SEC. 22.  Section 42486 is added to the Public Resources Code, to
read:
   42486.  (a) Except as provided in subdivision (b), the provisions
of this chapter shall become inoperative on the date that either of
the events described in subdivision (a) or (b) of Section 42485
occurs, and if both occur, the earlier date.
   (b) On the date specified in subdivision (a), the provisions of
this chapter shall remain operative only for the collection of fees,
the liability for which accrued prior to that date, making refunds,
effecting credits, the disposition of moneys collected, and
commencing an action or proceeding pursuant to this chapter.
  SEC. 23.  Section 48000 of the Public Resources Code is amended to
read:
   48000.  (a) Each operator of a disposal facility shall pay a fee
quarterly to the State Board of Equalization which is based on the
amount, by weight or volumetric equivalent, as determined by the
board, of all solid waste disposed of at each disposal site.
   (b) The fee for solid waste disposed of shall be one dollar and
thirty-four cents ($1.34) per ton.  Commencing with the 1995-96
fiscal year, the amount of the fee shall be established by the board
at an amount that is sufficient to generate revenues equivalent to
the approved budget for that fiscal year, including a prudent
reserve, but shall not exceed one dollar and forty cents ($1.40) per
ton.
   (c) The board shall notify the State Board of Equalization on the
first day of the period in which the rate shall take effect of any
rate change adopted pursuant to this section.
   (d) The board and the State Board of Equalization shall ensure
that all the fees for solid waste imposed pursuant to this section
that are collected at a transfer station are paid to the State Board
of Equalization in accordance with this article.
  SEC. 24.  (a) The Director of Finance shall transfer, as a loan, up
to five million dollars ($5,000,000) from the General Fund, and up
to twenty-five million dollars ($25,000,000) from any special fund
authorized by law, to the California Integrated Waste Management
Board, to implement the changes made to the Electronic Waste
Recycling Act by the act adding this section.
   (b) Any loan made pursuant to this section shall be repaid on or
before November 1, 2005, and shall be repaid prior to making any
expenditures pursuant to paragraph (1), (2), (3) or (4) of
subdivision (a) of Section 42476 of the Public Resources Code.
  SEC. 25.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 26.  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 Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to make statutory changes needed to facilitate the
collection of the electronic waste recycling fee and efficiently
implement the Electronic Waste Recycling Act of 2003, thereby
protecting public health and safety and the environment, it is
necessary that this act take effect immediately.