Amended in Senate August 12, 2013

Amended in Senate July 9, 2013

Amended in Assembly April 23, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1022

Introduced by Assembly Member Eggman

(Coauthors: Assembly Members Chesbro and Skinner)

February 22, 2013

An act to amend Sections 42463 and 42476 of, and to add and repeal Section 42479.5 of, the Public Resources Code, relating to recycling and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1022, as amended, Eggman. Electronic waste: CRT glass market development payments.

begin insert end insert 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 is continuously appropriated the money in the account to, among other things, make electronic waste recovery payments and recycling payments.

This bill would require the department, in consultation with the Department of Toxic Substances Control, to make CRT glass, as defined, market development begin delete payments end delete begin insert processing payments or CRT glass market development manufacturing payments end insert to a CRT glass processor, a CRT glass manufacturer, or an electronic waste recycler who begin delete processes for use or uses CRT glass to manufacture a product in this state end delete begin insert processes eligible CRT glass for use in a product or in a manufacturing process, or utilizes eligible CRT glass in a product or in a manufacturing process end insert , pursuant to a specified claims procedure. The bill would repeal the requirement to make these payments on January 1, 2020. The bill would additionally authorize the expenditure of not more than $10,000,000 each year of the continuously appropriated funds for the purpose of making those market development begin delete payments, end delete begin insert payments end insert until January 1, 2020.

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

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

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) “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.

(d) “CRT glass” means glass released or derived from the
treatment or breakage of a cathode ray tube that is from or part of
a covered electronic device.

(e) “CRT glass manufacturer” means a person who produces
or manufactures a product containing recycled CRT glass in the
state.

(f) “CRT glass processor” means a person who processes CRT
glass in a manner that separates the hazardous components from
the glass in a manner that allows the nonhazardous glass to be
recycled.

(g) Notwithstanding Section 40118, “department” means the
Department of Toxic Substances Control.

(h) (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.

(i) “Covered electronic waste” or “covered e-waste” means a
covered electronic device that is discarded.

(j) “Covered electronic waste recycling fee” or “covered e-waste
recycling fee” means the fee imposed pursuant to Article 3
(commencing with Section 42464).

(k) “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.

(l) “Discarded” has the same meaning as defined in subdivision
(b) of Section 25124 of the Health and Safety Code.

(m) “Electronic waste recovery payment” means an amount
established and paid by the Department of Resources Recycling
and Recovery pursuant to Section 42477.

(n) “Electronic waste recycling payment” means an amount
established and paid by the Department of Resources Recycling
and Recovery pursuant to Section 42478.

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

(p) “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.

(q) “Person” means an individual, begin delete trust end delete begin insert trust, end insert 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.

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

(s) “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.

(t) “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.

(u) (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.

(v) “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.

(w) “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. 2.  

Section 42476 of the Public Resources Code is
amended to read:

42476.  

(a) The Electronic Waste 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
(h).

(5) To make market development payments for CRT glass
pursuant to Section 42479.5, in an amount of no more than ten
million dollars ($10,000,000) each year, until January 1, 2020.

(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 Department of
Resources Recycling and Recovery 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 Department
of Resources Recycling and Recovery or the 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 Department of Resources Recycling and Recovery shall
adopt regulations specifying cancellation methods for the recovery,
processing, or recycling of covered electronic waste.

(f) The Department of Resources Recycling and Recovery may
pay an electronic waste recycling payment or electronic waste
recovery payment only for covered electronic waste that meets all
of the following conditions:

(1) (A) The covered electronic waste is demonstrated to have
been generated by a person who used the covered electronic device
while located in this state.

(B) Covered electronic waste generated outside of the state and
subsequently brought into the state is not eligible for payment.

(C) The Department of Resources Recycling and Recovery shall
establish documentation requirements for purposes of this
paragraph that are necessary to demonstrate that the covered
electronic waste was generated in the state and eligible for payment.

(2) The covered electronic waste, including any residuals from
the processing of the waste, is handled in compliance with all
applicable statutes and regulations.

(3) The manufacturer or the authorized collector or recycler of
the electronic waste provides a cost-free and convenient
opportunity to recycle electronic waste, in accordance with the
legislative intent specified in subdivision (b) of Section 42461.

(4) If the covered electronic waste is processed, the covered
electronic waste is processed in this state according to the
cancellation method authorized by the Department of Resources
Recycling and Recovery.

(g) The Legislature hereby declares that the state is a market
participant in the business of the recycling of covered electronic
waste for all of the following reasons:

(1) The fee is collected from the state’s consumers for covered
electronic devices sold for use in the state.

(2) 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.

(3) 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.

(h) (1) The Department of Resources Recycling and Recovery
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 Department of Resources Recycling and
Recovery 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 Department of Resources Recycling
and Recovery:

(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. 3.  

Section 42479.5 is added to the Public Resources Code,
to read:

42479.5.  

(a) The Department of Resources Recycling and
Recovery, in consultation with the department, shall make CRT
glass market development begin insert processing end insert payments begin insert or CRT glass
market development manufacturing payments end insert to a CRT glass
processor, a CRT glass manufacturer, or an electronic waste
recycler who begin delete processes for use or uses CRT glass to manufacture
a product in this state. end delete begin insert does either of the following, as applicable: end insert

begin insert

(1)  Processes eligible CRT glass in this state for use in a
product or in a manufacturing process.

end insert begin insert

(2) Utilizes eligible CRT glass processed pursuant to paragraph
(1) in a product or in a manufacturing process in this state.

end insert

(b) (1) The CRT glass processor, CRT glass manufacturer, or
electronic waste recycler that seeks a market development
begin insert processing end insert payment begin insert or a or CRT glass market development
manufacturing payment end insert shall submit a CRT glass development
payment claim to the Department of Resources Recycling and
Recovery for each calendar quarter in which the payment is being
claimed, in the form and manner that the Department of Resources
Recycling and Recovery may prescribe.

(2) The Department of Resources Recycling and Recovery may
make a CRT glass market development begin insert processing end insert payment to a
CRT glass processor, CRT glass manufacturer, or electronic waste
recycler only if the Department of Resources Recycling and
Recovery determines begin delete both end delete begin insert all end insert of the following:

(A) The CRT glass processor, CRT glass manufacturer, or
electronic waste recycler demonstrates to the Department of
Resources Recycling and Recovery and to the begin delete Department of Toxic
Substances Control end delete begin insert department end insert that it is in compliance with all
applicable laws.

begin insert

(B) The CRT glass is eligible for an electronic waste recovery
payment or an electronic waste recycling payment, as applicable,
pursuant to Section 42476.

end insert begin delete

(B)

end delete

begin insert (C) end insert  The CRT glass processor, CRT glass manufacturer, or
electronic waste recycler will begin insert further end insert process the CRT glass for
use begin delete or use the CRT glass to manufacture a product in this state. end delete begin insert in
a manner that, in addition to complying with the requirements of
Section 42476, removes any hazardous materials and renders the
material ready for use as a product or in a manufacturing process
in the United States. end insert

begin insert

(3) The Department of Resources Recycling and Recovery may
make a CRT glass market development manufacturing payment to
a CRT glass processor, CRT glass manufacturer, or electronic
waste recycler only if the Department of Resources Recycling and
Recovery determines both of the following:

end insert begin insert

(A) The CRT glass is processed in compliance with paragraph
(2).

end insert begin insert

(B) The processed CRT glass will be utilized in a product
manufactured in this state or used in a manufacturing process in
this state.

end insert

(c)  This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2020, deletes or extends that date.