Amended in Assembly April 23, 2013

Amended in Assembly April 8, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 488


Introduced by Assembly Member Williams

begin insert

(Coauthor: Assembly Member Chesbro)

end insert

February 19, 2013


An act to add Article 3 (commencing with Section 42450.1) to Chapter 8 of Part 3 of Division 30 of the Public Resources Code, relating to recycling.

LEGISLATIVE COUNSEL’S DIGEST

AB 488, as amended, Williams. Recycling: household batteries.

The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, requires retailers of rechargeable batteries to have in place a system for the acceptance and collection of rechargeable batteries.

This bill would require, by January 1, 2015, a producer or a household battery stewardship organizationbegin delete createdend deletebegin insert appointedend insert by one or more producers of a household battery to submit to the department a household battery stewardship plan, which would be required to include specified elements. The bill would require the department to review a household battery stewardship plan submitted to the department within 30 days after receipt and to approve or disapprove the plan, as specified.

The bill would prohibit a producer, wholesaler, or retailer, on and afterbegin delete Aprilend deletebegin insert Septemberend insert 1, 2015, from selling a household battery unless the plan for that battery is approved by the department. The bill would require a producer or the household battery stewardship organization to implement the household battery program pursuant to the household battery stewardship plan, including achieving a specified collection rate. The bill would require each producer or household battery stewardship organization implementing a household battery stewardship plan to prepare and submit to the department an annual report describing the activities carried out pursuant to the household battery stewardship plan.

The bill would require a producer or household battery stewardship organization submitting a household battery stewardship plan to pay the department a plan review fee, as determined by the department, when submitting the plan to the department and to pay an administrative fee, as determined by the department, when submitting the annual report. The bill would provide for the imposition of administrative civil penalties upon a wholesaler or retailer selling household batteries in violation of the bill. The bill would create the Household Battery Stewardship Account in the existing Integrated Waste Management Fund and would require that the fees be deposited into that account and that the penalties be deposited into the Household Battery Stewardship Penalty Subaccount that the bill would create in that account. The bill would authorize the fees and penalties to be expended, upon appropriation by the Legislature, to cover the department’s program implementation costs and would authorize all funds collected or received by the department under the program, except for the fees, to be expended as incentives to enhance recyclability and redesign efforts and to reduce environmental and safety impacts of batteries.

The bill would also allow a producer or organization that is implementing an approved plan and incurring specified costs to bring a civil action to recover costs, damages, and fees from another producer for failure to comply with the bill’s provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) In early 2006, most household batteries were classified by
4the state as universal waste and prohibited from being disposed of
5in solid waste landfills. Under state law, “household batteries”
6means batteries made of mercury, alkaline, carbon-zinc, and
P3    1nickel-cadmium, and other batteries typically generated as
2household waste, including, but not limited to, batteries used in
3hearing aids, cameras, watches, computers, calculators, flashlights,
4lanterns, standby and emergency lighting, portable radios,
5television sets, meters, toys, and clocks, but excluding lead-acid
6batteries, batteries that are sold in a “covered electronic device,”
7as defined in Section 42463 of the Public Resources Code, and
8batteries that are not easily removable or are not intended or
9designed to be removed from the products, other than by the
10manufacturer.

11(b) Effective July 1, 2006, state law prohibits most retailers
12from selling rechargeable batteries in the state unless they have a
13system in place for collecting used rechargeable batteries from
14consumers.

15(c) Approximately 80 percent of batteries sold in this state are
16alkaline batteries and are not covered under the retail take-back
17requirements.

18(d) Local governments throughout the state are responsible for
19the collection and management of household batteries, and to
20manage this hazardous waste, these local governments and
21taxpayers pay a range of between eight hundred dollars ($800) per
22ton to two thousand seven hundred dollars ($2,700) per ton, or
23tens of millions of dollars each year.

24(e) Because other types of recycling programs have proven to
25have limited success, state and regional governments in Europe
26and Canada have adopted producer responsibility programs to
27begin deleteredirect the responsibility for the end-of-life management of
28discarded hazardous and hard-to-manage products from local
29governments and retailers primarily to producersend delete
begin insert distribute
30responsibility for the end-of-life management of discarded
31hazardous or hard-to-end insert
begin insertmanage products among all entities involved
32in the distribution chainend insert
.

33(f) After many public hearings and discussions, the former
34California Integrated Waste Management Board adopted an overall
35Framework for an Extended Producer Responsibility (EPR)
36guidance document as a policy priority in January 2008.

37(g) The program established by Article 3 (commencing with
38Section 42450.1) of Chapter 8 of Part 3 of Division 30 of the Public
39Resources Code, by Section 2 of this act, is intended to reduce
40costs to local government, to harmonize the state’s producer
P4    1responsibility obligations with other national and international
2programs, and to enhance the protection of public health andbegin insert the end insert
3environment through the use, reuse, and end-of-life management
4of those household batteries.

5(h) The plan review fee and the administrative fee imposed
6pursuant to Section 42450.10 of the Public Resources Code are
7regulatory fees within the meaning of paragraph (3) of subdivision
8(b) of Section 3 of Article XIII A of the California Constitution,
9as the fees are imposed solely for the purpose of recovering the
10reasonable regulatory costs to the Department of Resources
11Recycling and Recovery incident to investigating, inspecting, and
12auditing the fee payer, and the enforcement costs thereof, and with
13respect to reviewing the household battery stewardship plan, and
14the annual reports and enforcing Article 3 (commencing with
15Section 42450.1) of Chapter 8 of Part 3 of Division 30 of the Public
16Resources Code.

17

SEC. 2.  

Article 3 (commencing with Section 42450.1) is added
18to Chapter 8 of Part 3 of Division 30 of the Public Resources Code,
19to read:

20 

21Article 3.  Product Stewardship for Household Batteries
22

 

23

42450.1.  

For purposes of this article,begin delete andend delete unless the context
24begin delete otherwiseend deletebegin insert clearlyend insert requiresbegin insert otherwiseend insert, thebegin delete definitions in this article
25govern the construction of this article.end delete
begin insert following terms have the
26following meanings: end insert

27(a) begin delete“Baseline of the number of household batteries collected by
28all producers subject to the plan” means end delete
begin insert“Baseline” means the
29number of household batteries collected by all producers subject
30to the plan asend insert
a number calculated by weight based on the
31percentage of household batteries that are collected during a
32calendar year, as compared to the average number of household
33batteries that were annually sold in the state by those producers
34during the previous three calendar years.

35(b) “Brand” means a name, symbol, word, or traceable mark
36that identifies a householdbegin delete battery, rather than its components,end delete
37begin insert battery end insert and attributes the household battery to the owner or
38licensee of the brand as the producer.

39(c) “Collection rate” meansbegin delete a quantitative measure that each
40program is required to collect by an established date. The collection
P5    1rate shall be calculated by weight and shall distinguish between
2nonrechargeable household batteries and rechargeable household
3batteries, but not by the individual producer of each batteryend delete
begin insert a
4percentage by weight that each program is required to collect by
5an established dateend insert
.

6(d) “Discarded household battery” means a household battery
7that has been discarded, as defined in subdivision (b) of Section
825124 of the Health and Safety Code.

begin delete

9(e) “Distributor” means an entity that sells, offers for sale, or
10makes available for sale in the state one or more unused household
11batteries or one or more unused products incorporating or packaged
12with a household battery and is not the brand owner of the unused
13household batteries or unused products incorporating or packaged
14with one or more household batteries.

15(f) (1) “Household battery” has the same meaning as defined
16in subdivision (c) of Section 42450, but shall not include any of
17the following:

end delete
begin insert

18(e) “Household battery” means a battery weighing two
19kilograms or less made of mercury, alkaline, carbon-zinc, or
20nickel-cadmium, and any other battery typically generated as
21household waste, including, but not limited to, a battery used in
22cameras, watches, calculators, flashlights, lanterns, standby and
23emergency lighting, portable radio and television sets, meters,
24toys, and clocks. “Household battery” does not include any of the
25following:

end insert
begin delete

26(A)

end delete

27begin insert(end insertbegin insert1)end insert A battery that is sold in a covered electronic device, as
28defined in Section 42463.

begin delete

29(B)

end delete

30begin insert(end insertbegin insert2)end insert A battery that is not easily removable or is not intended or
31designed to be removed from the product, other than by the
32manufacturer.

begin delete

33(2) “Household battery” includes both rechargeable and
34nonrechargeable household batteries.

end delete
begin insert

35(3) A battery that is sold in a medical device, as defined in the
36federal Food, Drug, and Cosmetic Act by paragraph (h) of Section
37321 of Title 21 of the United States Code.

end insert
begin delete

38(g)

end delete

39begin insert(f)end insert “Household battery stewardship organization” or
40“organization” means an organization appointed by one or more
P6    1producers pursuant to paragraph (1) of subdivision (b) of Section
242450.2 to act as an agent on behalf of the producer to design,
3submit, and administer a household battery stewardship plan
4pursuant to this article.

begin delete

5(h)

end delete

6begin insert(end insertbegin insertg)end insert “Household battery stewardship plan” or “plan” means a
7plan submitted to the department pursuant to Section 42450.2 by
8an individual producer or a household battery stewardship
9organization.

begin delete

10(i) “Recycling” means the process of collecting and preparing
11recyclable materials and reusing the materials in their original form
12or using them in manufacturing processes that do not cause the
13destruction of recyclable materials in a manner that precludes
14further use.

15(j) “Nonrechargeable battery” means a battery weighing 2
16kilograms or less that is not designed to be electrically recharged.
17A nonrechargeable battery includes, but is not limited to, alkaline
18manganese, carbon zinc, lithium, silver oxide, and zinc air batteries.

end delete
begin insert

19(h) “Recycling” has the same meaning as defined in Section
2040180.

end insert
begin delete

21(k)

end delete

22begin insert(i)end insert “Producer” shall be determined, with regard to a household
23battery that is sold, offered for sale, or distributed in the state, as
24meaning one of the following:

25(1) The person who manufactures the household battery and
26who sellsbegin delete,end deletebegin insert orend insert offers for salebegin delete, or is the distributor of,end delete that household
27battery in the state under that person’s own name or brand.

28(2) If there is no person who sellsbegin delete,end deletebegin insert orend insert offers for salebegin delete, or is the
29distributor of,end delete
the household battery in the state under the person’s
30own name or brand, the producer of the household battery is the
31owner or licensee of a trademark or brand under which the
32household battery is sold or distributed in the state, whether or not
33the trademark is registered.

34(3) If there is no person who is a producer of the household
35battery for purposes of paragraphs (1) and (2), the producer of that
36household battery is the person who imports the household battery
37into the state for sale or distribution.

begin delete

38(l)

end delete

39begin insert(end insertbegin insertj)end insert “Product stewardship” means requiring the producer of a
40household battery, and all other entities involved in the distribution
P7    1chain of a household battery, to share in the collection and
2recycling of the household battery.

begin delete

3(m)

end delete

4begin insert(k)end insert “Program” means the system for the collection,
5transportation, recycling, and disposal of household batteries
6implemented pursuant to an approved household battery
7stewardship plan.

begin delete

8(n)

end delete

9begin insert(l)end insert “Reporting period” means the period commencing January
101 and ending on December 31 of the same calendar year.

begin delete

11(o)

end delete

12begin insert(end insertbegin insertm)end insert “Retailer” means a person that offers new household
13batteries in a retail sale, as defined in Section 6007 of the Revenue
14and Taxation Code, including a retail sale at retail through any
15means, including remote offerings such as sales outlets, catalogs,
16or an Internet Web site.

begin delete

17(p) “Sell” or “sales” means any transfer of title of a household
18battery for consideration, including a remote sale conducted
19through a sale outlet, catalog, or Internet Web site or similar
20electronic means, but does not include a lease.

end delete
begin delete

21(q)

end delete

22begin insert(end insertbegin insertn)end insert “Wholesaler” means a person that offers new household
23batteries for sale in this state in a sale that is not a retail sale, as
24defined in Section 6007 of the Revenue and Taxation Code, and
25for which the household battery is intended to be resold.

26

42450.2.  

(a) On or before January 1, 2015, each producer or
27the household battery stewardship organizationbegin delete for one or more
28producers of household batteriesend delete
shall submit a household battery
29stewardship plan to the department.

30(b) (1) If one or more producers appoint a household battery
31stewardship organization to act as an agent on behalf of one or
32more of those producers, the organization may include producers,
33and shall also include, at minimum, one voting member from each
34of the following organizations, with priority given to those based
35in California:

36(A) Retailers.

37(B) Local governments.

38(C) Public representatives.

39(D) Haulers.

40(E) Recyclers.

P8    1(2) If the household battery stewardship organization is unable
2to recruit members from the organizations identified in paragraph
3(1), the stewardship organization shall provide an explanation to
4the department in the plan submitted pursuant to this section or
5the annual report required by Section 42450.9.

6(c) (1) Except as provided in paragraph (2), before submitting
7the household battery stewardship plan to the department, the
8producerbegin delete, group of producers,end delete or household battery stewardship
9organization shall consult with stakeholders, including retailers,
10collectors, recyclers, local government, and customers, during the
11development of the household battery stewardship plan, and shall
12solicit stakeholder comments and respond to stakeholder comments.
13begin insert All stakeholder meetings shall be available using
14telecommunication. end insert

15(2) If stakeholder involvement is not feasible, the producer,
16group of producers, or household battery stewardship organization
17shall provide an explanation to the department in the plan submitted
18pursuant to this section or the annual report required by Section
1942450.9.

20(d) Each household battery stewardship plan shall include, at a
21minimum, all of the following elements:

22(1) Contact information for all participating producers.

23(2) The collection rate for the household batteries subject to the
24plan in the following manner, except as provided in Section
2542450.3:

26(A) A baseline of the number of household batteries collected
27by all producers subject to the plan, which shall be calculated by
28weight based on the percentage of household batteries collected
29during the previous calendar year, as compared to the average
30number of household batteries that were sold in the state during
31the previous three calendar years by all producers that are subject
32to the plan.

33(B) If a producer subject to the plan previously collected data
34to establish a baseline number of household batteries, that baseline
35number may be used to fulfill the requirement in subparagraph
36(A), if the data is no more than three years old and the producer
37submits the data collected and methodology used to calculate that
38number to the department in the plan.

39(C) The program shall achieve an increase in the household
40battery collection rate of 25 percent, starting at the baseline rate
P9    1calculated pursuant to subparagraph (A) or (B), for the 2019
2calendar year.

3(3) A description of the brands of the household batteries
4covered by the plan and the baseline of household batteries
5collected during the previous calendar year, as determined pursuant
6to subparagraph (A) of paragraph (2).

7(4) The number and type of convenient collection opportunities
8provided free of charge for consumers in all counties of the state,
9the methods by which the discarded household batteries will be
10collected in all areas in the state, and an explanation of how the
11collection system will be convenient and adequate to serve the
12ongoing needs of small businesses and consumers in both urban
13and rural areas.

14(5) A description of the method that will be used to recycle the
15discarded household batteries to ensure that the components of the
16discarded household batteries, to the extent feasible, are
17begin deletetransformed or remanufactured into finished batteries for useend delete
18begin insert recycled or remanufacutured into new productsend insert.

19(6) Roles and responsibilities of key participants in the
20household battery distribution chain.

21(7) The outreach procedures that will be used to provide notice
22of the program tobegin delete employersend deletebegin insert businessesend insert, local agencies, retailers,
23wholesalers, andbegin delete wasteend delete haulers.

24(8) The manner in which existing household battery collection
25points and other programs can be identified and maximized to
26achieve the required collection rates.

27(9) The methodsbegin delete of disposingend deletebegin insert for managingend insert the household
28batteries collected pursuant to the plan.

29(10) (A) The financing method selected to sustainably fund the
30implementation of the plan for achieving the identified collection
31rates described in the plan.

32(B) The financing method shall not include a separate and
33distinct fee at the point of purchase.

34(11) The planned educational activities to maximize collection
35rates, including, but not limited to, the use of social media,
36billboards, print, and radio, and information provided at the point
37of sale.

begin insert

38(12) A report on the feedback from any stakeholders’ meetings
39held pursuant to subdivision (c).

end insert

P10   1(e) The producer or household battery stewardship organization
2may elect to include provisions in the plan for the implementation
3of the program in conjunction with those cities, counties, districts,
4and regional agencies, in whose jurisdictions the program will be
5implemented. If the producer or household battery stewardship
6organization makes this election, the producer or household battery
7 stewardship organization shall provide one or more of the following
8to cities, counties, districts, and regional agencies participating in
9the stewardship program:

10(1) Reasonable reimbursement for the mutually agreed upon
11cost per pound of collected household batteries.

12(2) The location, hours, and contact information for the
13convenient collection points for discarded household batteries that
14are located within the county where the local agency is located
15and that are consistent with the plan.

16(3) Products for setting up a collection point within that local
17agency and providing for the pickup of household batteries
18collected, including, but not limited to, arranging for the disposal
19of those household batteries.

20

42450.3.  

A producer or household battery stewardship
21organization may petition the department for an adjustment to the
22collection rate specified in the plan. The department may grant an
23adjustment to the collection rate only if the department determines
24there are documented exigent circumstances that are beyond the
25control of the producer or household battery stewardship
26organization.

27

42450.4.  

(a) On or before 30 days after the date a plan is
28received pursuant to Section 42450.2, the department shall review
29the plan to determine whether each plan element has been
30addressed in the plan and the plan adequately addresses stakeholder
31comments and oversight concerns. If the department does not
32approve the plan, the department shall notify the producer or
33organization that submitted the plan which elements were not
34adequately addressed, and the producer or organization shall revise
35and resubmit the plan within 45 days after receiving the
36notification. If the department approves the plan, the department
37shall, withinbegin delete 45end deletebegin insert 30end insert days after receipt, notify the producer or
38organization that the submitted plan is approved.

39(b) The department shall make all household battery stewardship
40plans submitted to the department pursuant to Section 42450.2
P11   1available to the public on the department’s Internet Web sitebegin insert, but
2shall not publish information protected under the Uniform Trade
3Secrets Act (Title 5 (commencing with Section 3426) of Part 1 of
4Division 4 of the Civil Code)end insert
.

5(c) A producer or organization shall notify the department 30
6days before instituting a significant or material change to an
7approved household battery stewardship plan.

8(d) On or beforebegin delete Septemberend deletebegin insert Aprilend insert 1, 2015, and on or before
9begin delete Septemberend deletebegin insert April end insert 1 annually thereafter, the department shall post
10on its Internet Web site a listing of the brands of household
11batteries for which the producer is in compliance with this article
12and for which the household battery stewardship plan is in
13compliance with this article, as specified in Section 42450.7.

14

42450.5.  

On and afterbegin delete, Aprilend deletebegin insert Septemberend insert 1, 2015, a producer,
15wholesaler, or retailer shall not offer a household battery for sale
16in this state or offer a household battery for promotional purposes
17in this state unless the plan submitted by the producer or household
18battery stewardship organization of that household battery has
19been approved by the department pursuant to Section 42450.4.

20

42450.6.  

Upon receiving notification from the department
21pursuant to Section 42450.4 that a plan is approved, the producer
22or the household battery stewardship organization shall do all of
23the following:

24(a) Implement the plan, including, but not limited to, achieving
25the collection rate specified in the plan.

begin delete

26(b) Pay the administrative fees imposed pursuant to subdivision
27(b) of Section 42450.10.

end delete
begin delete

28(c)

end delete

29begin insert(b)end insert Submit the annual report required by Section 42450.9.

begin delete

30(d)

end delete

31begin insert(c)end insert (1) If a producer or household battery stewardship
32organization elects to implement the plan in conjunction with cities,
33counties, districts, and regional agencies pursuant to subdivision
34(e) of Section 42450.2, the producer or organization shall take the
35actions specified in subdivision (e) of Section 42450.2.

36(2) A local agency that elects to participate in the program shall
37separate from any other materials the household batteriesbegin delete made
38availableend delete
for collection by the producer or household battery
39stewardship organization.

P12   1

42450.7.  

A household battery stewardship program shall be
2considered in compliance with this article if it achieves the
3collection rate for household batteries covered by the plan, as
4required by paragraph (2) of subdivision (d) of Section 42450.2.

5

42450.8.  

(a) A wholesaler or a retailer that distributes or sells
6household batteries shall monitor the department’s Internet Web
7site to determine if the sale of a producer’s household batteries is
8begin deletenot prohibited byend deletebegin insert approved pursuant toend insert Section 42450.5.

9(b) A retailer shall have 90 days from the datebegin delete a noncompliant
10brand is posted on the department’s Internet Web site to sell the
11remaining stock of those noncompliant household batteries or to
12remove the product from sale. An enforcement action shall not be
13taken against a retailer pursuant to this article with regard to that
14noncompliant brandend delete
begin insert the list of approved brands is posted on the
15department’s Internet Web site pursuant to subdivision (d) of
16Section 42450.4 to sell the remaining stock of those household
17batteries that are not approved or to remove the product from sale.
18An enforcement action shall not be taken against a retailer
19pursuant to this article with regard to brands that are not approvedend insert

20 until after that 90-day period has expired.

21

42450.9.  

(a) On or before April 1, 2015, and everybegin delete subsequentend delete
22 year thereafter, each producer or household battery stewardship
23organization implementing a plan shall prepare and submit to the
24department an annual report describing the activities carried out
25pursuant to the plan during the previous calendar year. The annual
26report shall include, but is not limited to, all of the following
27elements:

28(1) The weight of household batteries collected by the program
29in the prior year and the collection rate achieved in the prior year.

30(2) A report of the estimated total sales data by weight for
31household batteries sold in the state for the previous three calendar
32years.

33(3) A report on the feedback from a stakeholders’ meeting,
34hosted by producers, that was made available through
35telecommunication, prior to submittal of the annual report.

36(4) begin deleteIndependently audited financial end deletebegin insertFinancial end insertstatements that
37detail the financing of the plan.

38(5) Locations, hours, and contact information for all collection
39points set up by the producers covered by the plan.

P13   1(6) Examples and description of educational materials used to
2increase collection.

3(7) The manner in which the collected household batteries were
4begin deletedisposed of andend delete recycled.

5(b) The department shall review an annual report by doing all
6of the following:

7(1) For the 2019 calendar year, if the report is submitted for that
8year,begin delete andend delete or for each year thereafter, the department shall certify
9that the collection points listed in the annual report are located in
10every county and serve the ongoing needs of small businesses and
11consumers in both urban and rural areas, as specified in paragraph
12(4) of subdivision (d) of Section 42450.2.

13(2) Review sales and collection data provided for the state to
14verify collection rates.

15(3) Verify that all annual report elements specified in subdivision
16(a) have been addressed in the report.

17(c) If the department does not act on a report within 45 days of
18receipt, the report shall be deemed to be approved.

19(d) The department shall make all reports submitted to the
20department pursuant to this section available to the public on the
21department’s Internet Web sitebegin insert, but shall not publish information
22protected under the Uniform Trade Secrets Act (Title 5
23(commencing with Section 3426) of Part 1 of Division 4 of the
24Civil Code)end insert
.

25(e) If the collection rate for the household batteries subject to
26the plan meets the collection rate specified in subparagraph (C) of
27paragraph (2) of subdivision (d) of Section 42450.2, the report
28shall be submitted once every two years.

begin insert

29(f) The department may audit any information provided in the
30annual report.

end insert
31

42450.10.  

(a) (1) A producer or household battery stewardship
32organization that submits a household battery stewardship plan to
33the department shall pay a plan review fee to the department
34pursuant to this subdivision.

35(2) The department shall set the plan review fee at an amount
36so that the total amount of plan review fees received by the
37department is no more than necessary to cover the reasonable costs
38of reviewing and enforcing the plan. The department may establish
39a variable plan review fee based on relevant factors, including, but
40not limited to, the proportion of household batteries produced by
P14   1the feepayer as compared to the total amount of batteries produced
2by all producers or household battery stewardship organizations
3submitting a household battery stewardship plan. The department
4shall establish the fee so that the manner in which the fee is
5allocated bears a fair and reasonable relationship to the
6department’s costs in reviewing a plan.

7(3) The fee shall be due to the department upon submittal of the
8plan.

9(b) (1) A producer or household battery stewardship
10organization required to submit an annual report pursuant to this
11article shall pay an annual administrative fee to the department
12pursuant to this subdivision.

13(2) The department shall set the annual administrative fee in an
14amount that is no more than necessary to cover the reasonable
15costs of reviewing annual reports and enforcing this article. The
16department may establish a variable annual administrative fee
17based on relevant factors, including, but not limited to, the
18proportion of household batteries produced by the feepayer, as
19compared to the total amount of household batteries produced by
20all producers or household battery stewardship organizations
21submitting an annual report, and whether the producer is submitting
22a plan every two years as specified in subdivision (e) of Section
2342450.9. The department shall establish the fee so that the manner
24in which the fee is allocated bears a fair and reasonable relationship
25to the department’s costs in reviewing the annual reports and
26enforcing this article.

27(3) The fee shall be due to the department upon submittal of the
28annual report.

29(c) The total amount of fees collected pursuant to this section
30shall not exceed the amount necessary to recover costs incurred
31by the department in connection with the administration and
32enforcement of the requirements of this article.

33

42450.11.  

(a) The Household Battery Stewardship Account
34and the Household Battery Stewardship Penalty Subaccount are
35hereby established in the Integrated Waste Management Fund.

36(b) All fees collected pursuant to this article shall be deposited
37in the Household Battery Stewardship Account and may be
38expended by the department, upon appropriation by the Legislature,
39to cover the department’s costs to implement this article.

P15   1(c) All penalties collected pursuant to this article shall be
2deposited in the Household Battery Stewardship Penalty
3Subaccount and may be expended by the department, upon
4appropriation by the Legislature, to cover the department’s costs
5to implement this article.

6(d) All funds that are collected or received by the department
7pursuant to this article, other than the fees specified in subdivision
8(b), may be expended as incentives to enhance reuse, recyclability,
9and redesign efforts and to reduce environmental and safety impacts
10of household batteries.

11

42450.13.  

(a) The department may impose an administrative
12civil penalty not to exceed one thousand dollars ($1,000) per day
13against a wholesaler or retailer that violates Section 42450.5.

14(b) A wholesaler or retailer that removes from sale any
15household battery within 90 days of discovery that it is not in
16compliance with this article shall not be deemed to be in violation
17of Section 42450.5.

18(c) Prior tobegin delete enforcingend deletebegin insert issuingend insert any penalty pursuant to this
19section, the department shall issue a compliance order to the
20wholesaler or retailer selling the household battery that allows 30
21days from the date of the compliance order to cease sales of the
22household battery.

23

42450.14.  

(a) A producer orbegin insert household battery stewardshipend insert
24 organization that implements a plan in compliance with this article
25and incurs costs in excess of five thousand dollars ($5,000) in
26collecting, handling,begin insert orend insert recyclingbegin delete, or properly disposing ofend delete
27 household batteries sold or offered for sale in thebegin delete state,end deletebegin insert stateend insert may
28bring a civil action to recover costs, damages, and fees, as specified
29in subdivision (c), from another producer for failure to comply
30with this article, if that producer can be identified from a brand or
31marking on a discarded household battery or from other
32information.

33(b) An action under this section may be brought against one or
34more producers who are not in compliance with this article, except
35an action shall not be commenced under either of the following
36 circumstances:

37(1) No earlier than 60 days after a written notice of the
38organization’s or producer’s intention to file an action has been
39provided to the department and to the producer who is alleged to
40be noncompliant.

P16   1(2) If the department has commenced an enforcement action
2against the producer who is alleged to be noncompliant and is
3diligently pursuing that action.

4(c) In an action under this section, the plaintiff may recover
5from a producer who has been found to be noncompliant all of the
6following:

7(1) The costs the plaintiff incurred in collecting, handling,
8recycling, or properly disposing of household batteries reasonably
9identified as having originated from the noncompliant producer.

10(2) An amount of damages equal to no more than three times
11those costs specified in paragraph (1).

12(3) The plaintiff’s attorney’s fees and costs of bringing the
13action.

begin delete

14(d) An action to recover the costs specified in this section may
15be brought in any court in the state, without regard to the amount
16in dispute.

end delete
begin delete

17(e) An action to recover the costs specified in this section may
18be brought in any court in the state, without regard to the amount
19in dispute.

end delete
20

42450.16.  

This article does not limit, supersede, duplicate, or
21otherwise conflict with the authority of the Department of Toxic
22Substances Control under Section 25257.1 of the Health and Safety
23Code to fully implement Article 14 (commencing with Section
2425251) of Chapter 6.5 of Division 20 of the Health and Safety
25Code, including the authority of the department to include
26household batteries in its household battery registry.

27

42450.17.  

(a) Except as provided in subdivision (b), an action
28taken to increase the recycling of household batteries pursuant to
29this article by a producer or household battery stewardship
30organization that affects the types or quantities being recycled or
31the cost and structure of any return program is not a violation of
32either the Cartwright Act (Chapter 2 (commencing with Section
3316700) of Part 2 of Division 7 of the Business and Professions
34Code), or the Unfair Practices Act (Chapter 4 (commencing with
35Section 17000), of Part 2 of Division 7 of the Business and
36Professions Code).

37(b) Subdivision (a) shall not apply to any agreement establishing
38or affecting the price of household batteries or the output or
39production of household batteries, or any agreement restricting
P17   1the geographic area in which, or customers to whom, household
2batteries will be sold.



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