Amended in Assembly April 8, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 468

Introduced by Assembly Member Chesbro

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(Principal coauthors: Assembly Members Alejo, Levine, and Stone)

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(Coauthor: Assembly Member Atkins)

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February 19, 2013

An act to begin delete amend Section 42463 of the Public Resources Code, relating to recycling. end delete begin insert add Section 16031 to the Insurance Code, and to repeal Chapter 1.5 (commencing with Section 4210) of Part 2 of Division 4 of the Public Resources Code, relating to insurance end insert begin insert . end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 468, as amended, Chesbro. begin delete Recycling: electronic waste. end delete begin insert Insurance: Disaster Management, Preparedness, and Assistance Surcharge. end insert

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Existing law required, by September 1, 2011, the State Board of Forestry and Fire Protection to adopt emergency regulations to establish a fire prevention fee of not more than $150 for the necessary fire prevention activities of the state that benefit the owners of structures within a state responsibility area.

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This bill would repeal the fire prevention fee. The bill would create the Disaster Management, Preparedness, and Assistance Fund in the State Treasury. The bill would require insureds to pay a special purpose surcharge, the Disaster Management, Preparedness, and Assistance Surcharge, on each commercial and residential fire and multiperil insurance policy issued or renewed on or after January 1, 2014, equivalent to 4.8% of the premium written on residential fire and multiperil insurance or the property exposure for commercial policies in California. Moneys from this surcharge would be deposited in the fund and be appropriated by the Legislature for the purposes of funding emergency activities of the Office of Emergency Services, the Department of Forestry and Fire Protection, and the Military Department, as well as local governments for disaster planning and response. The bill would also require every admitted insurance company in the state to collect the surcharge and separately identify the surcharge on each affected insurance policy.

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Existing law, the Electronic Waste Recycling Act of 2003, requires a retailer selling a covered electronic device in this state to collect a covered electronic waste recycling fee from the consumer, as specified. These fees are deposited in the Electronic Waste Recovery and Recycling Account, and the Department of Resources Recycling and Recovery (CalRecycle) is continuously appropriated the money in the account to, among other things, make electronic waste recovery payments and recycling payments.

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The bill would make conforming changes with reference to CalRecycle.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 16031 is added to the end insert begin insert Insurance Code end insert begin insert ,
to read: end insert

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begin insert 16031. end insert   

(a) The Disaster Management, Preparedness, and
Assistance Fund is hereby created in the State Treasury. Funds
received by the Office of Emergency Services pursuant to this
section shall be deposited into this fund. Funds deposited into this
fund shall be appropriated by the Legislature for the purposes of
funding emergency activities of the Office of Emergency Services,
the Department of Forestry and Fire Protection, and the Military
Department, as well as to local governments for disaster planning
and response.

(b) Insureds shall pay a special purpose surcharge on each
commercial and residential fire and multiperil insurance policy
issued or renewed on or after January 1, 2014, equivalent to 4.8
percent of the premium written on residential fire and multiperil
insurance or the property exposure for commercial policies in
California. The Disaster Management, Preparedness, and
Assistance Surcharge shall only be applied to new business and
renewal transactions. No adjustment shall be made for midterm
increases or decreases in exposure or coverage. The amount of
the surcharge shall be calculated to the nearest dollar.
Notwithstanding any other law, failure to collect the surcharge
from insureds prior to January 1, 2015, shall not result in a
penalty, fine, or other liability.

(c) Every admitted insurer in this state shall collect the
surcharge fee specified in subdivision (b), which shall be separately
identified on each policy, with respect to residential fire and
multiperil insurance and the property portion of commercial
policies.

(d) Funds received as a result of the surcharge imposed on
insureds as a percentage of premiums written on residential fire
and multiperil insurance and property exposure for commercial
insurance policies shall be remitted by the admitted insurers to
the Office of Emergency Services, or other state agency designated
to collect the surcharge on behalf of the Office of Emergency
Services, within 45 days following the end of each calendar
quarter.

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begin insert SEC. 2. end insert   

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begin insert Chapter 1.5 (commencing with Section 4210) of Part
2 of Division 4 of the end insert begin insert Public Resources Code end insert begin insert is repealed. end insert

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SECTION 1.  

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

42463.  

For the purposes of this chapter, the following terms
have the following meanings, unless the context clearly requires
otherwise:

(a) “Account” means the Electronic Waste Recovery and
Recycling Account created in the Integrated Waste Management
Fund under Section 42476.

(b) “Authorized collector” means any of the following:

(1) A city, county, or district that collects covered electronic
devices.

(2) A person or entity that is required or authorized by a city,
county, or district to collect covered electronic devices pursuant
to the terms of a contract, license, permit, or other written
authorization.

(3) A nonprofit organization that collects or accepts covered
electronic devices.

(4) A manufacturer or agent of the manufacturer that collects,
consolidates, and transports covered electronic devices for
recycling from consumers, businesses, institutions, and other
generators.

(5) An entity that collects, handles, consolidates, and transports
covered electronic devices and has filed applicable notifications
with the department pursuant to Chapter 23 (commencing with
Section 66273.1) of Division 4.5 of Title 22 of the California Code
of Regulations.

(c) “CalRecycle” means the Department of Resources Recycling
and Recovery.

(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) Notwithstanding Section 40118, “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 CalRecycle pursuant to Section 42477.

(l) “Electronic waste recycling payment” means an amount
established and paid by CalRecycle pursuant to Section 42478.

(m) “Hazardous material” has the same meaning as defined in
Section 25501 of the Health and Safety Code.

(o) “Manufacturer” means either of the following:

(1) A person who manufactures a covered electronic device sold
in this state.

(2) A person who sells a covered electronic device in this state
under that person’s brand name.

(p) “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.

(q) “Recycling” has the same meaning as defined in subdivision
(a) of Section 25121.1 of the Health and Safety Code.

(r) “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.

(s) “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.

(t) (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.

(u) “Vendor” means a person that makes a sale of a covered
electronic device for the purpose of resale to a retailer who is the
lessor of the covered electronic device to a consumer under a lease
that is a continuing sale and purchase pursuant to Part 1
(commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code.

(v) “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.

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