Amended in Assembly April 14, 2016

Amended in Assembly April 5, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2153

Introduced by Assembly Member Cristina Garcia

(Coauthor: Assembly Member Santiago)

February 17, 2016

An act to add Chapter 7.5 (commencing with Section 42420) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 2153, as amended, Cristina Garcia. Lead-Acid Battery Recovery and Recycling Act.

Existing law requires a retailer of various specified products, including rechargeable batteries and cellular telephones, sold in the state to have in place a system for the acceptance and collection of those products for reuse, recycling, or proper disposal.

This bill would establish the Used Lead-Acid Battery Recovery and Recycling Act. The bill would require a qualified industry association, as defined, to establish a lead-acid battery recycling organization, as defined. The bill would authorize the Department of Resources Recycling and Recovery to certify that a lead-acid battery recycling organization has been established. The bill would require the lead-acid battery recycling organization to develop, implement, and administer a lead-acid battery recycling program pursuant to the act. The bill would require manufacturers, retailers, and recyclers of lead-acid batteries to register with the lead-acid battery recycling organization on or before January 1, 2018.

This bill would prohibit, on and after January 1, 2019, a manufacturer, recycler, or retailer from, among other things, selling a lead-acid battery, or importing a lead-acid battery into this state, except in compliance with the bill’s requirements.

This bill would require the lead-acid battery recycling organization, by July 1, 2018, to develop a plan for recycling used lead-acid batteries in the state that includes specified goals and elements and to submit the plan to the department, as specified. The plan would be required, among other things, to ensure that it addresses the impact of the requirement of the California Constitution that a local government submit the imposition, extension, or increase in a tax to the electorate for approval, with regard to local governments participating in the program. The bill would require the organization, by July 1, 2018, to annually prepare and approve a proposed used lead-acid battery recycling program plan budget for the next calendar year and to submit the budget to the department for approval, as specified. The bill would require the department to notify the organization of the department’s costs that are directly related to implementing and enforcing the act and would require the organization to reimburse the department for those direct costs. The bill would require the department to deposit these amounts submitted by the organization into the Used Lead-Acid Battery Recycling Fund, which the bill would establish in the State Treasury. The bill would require the department to expend the moneys in the fund, upon appropriation by the Legislature, to administer and enforce the act and to reimburse any outstanding loans made from other funds used to finance the startup implementation costs to the department, as provided.

This bill would require the organization to annually set the amount of a state lead-acid battery recycling charge that would be added to the purchase price of a lead-acid battery, and would require a manufacturer, recycler, retailer, wholesaler, distributor, or other party that sells a lead-acid battery to add the charge to the purchase price for the lead-acid battery and remit the charges collected, less refunds, quarterly to the organization, as specified. begin insert The bill would require the lead-acid battery recycling charge to be charged in lieu of any voluntary core charge being collected by retailers. end insert The bill would require the organization to remit $1 from the sale of each lead-acid battery to be deposited into the Lead-Acid Battery Cleanup Fund, which would be created by the bill. Moneys in the Lead-Acid Battery Cleanup Fund would be continuously appropriated to the Department of Toxic Substances Control for the cleanup of areas of the state that have been contaminated by the production, recycling, or improper disposal of lead-acid batteries. The bill would require the organization to suspend and resume remitting the $1 from the sale of each lead-acid battery to the Lead-Acid Battery Cleanup Fund based on the balance in the fund.

This bill would require a manufacturer, recycler, retailer, or distributor to affix a California recycling sticker, as determined by the Department of Resources Recycling and Recovery, to each lead-acid battery at the point of sale. The bill would require that every consumer who returns a lead-acid battery with a California recycling sticker to a manufacturer, retailer, or other entity that sells lead-acid batteries to the ultimate user be given a refund of the recycling charge minus $3, as specified. The bill would prohibit a refund from being given to a consumer who returns a lead-acid battery without a California recycling sticker. The bill would require a retailer that sells a used lead-acid battery to a manufacturer to remit 75% of the sale price of the used lead-acid battery to the organization for deposit into the Lead-Acid Battery Cleanup Fund.

This bill would authorize the department to impose an administrative civil penalty on a manufacturer, organization, recycler, or retailer in violation of the act, and the department would be authorized to expend the moneys, upon appropriation by the Legislature, to implement the act.

The bill would authorize the department to adopt emergency regulations establishing a process for the submission and approval of the used lead-acid battery recovery and recycling plan, and for the submission and approval of the proposed used lead-acid battery recycling program budget.

This bill would provide for the begin delete reimbursement end delete begin insert repayment of a portion end insert of a specified General Fund loan from the Lead-Acid Battery Cleanup Fund, and would make that begin delete reimbursement end delete begin insert repayment end insert money available for further loans, as specified.

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Chapter 7.5 (commencing with Section 42420)
is added to Part 3 of Division 30 of the Public Resources Code, to
read:

 

Chapter  7.5. Lead-Acid Battery Recovery and Recycling
Act

 

Article 1.  Declarations and Definitions

 

42420.  

(a) The Legislature finds and declares that in order to
reduce illegal dumping, increase recycling, and substantially reduce
public agency costs for the end-of-life management of lead-acid
batteries, the Lead-Acid Battery Recovery and Recycling Act is
hereby established by this chapter to require manufacturers of
lead-acid batteries sold in this state to develop, finance, and
implement a convenient and cost-effective program to recover and
recycle lead-acid batteries generated in this state.

(b) It is the intent of the Legislature in enacting this chapter that
all of the following occur:

(1) That consumers have the opportunity to drop off their
lead-acid batteries free of charge.

(2) That existing lead-acid battery recycling, resale, refurbishing,
and reuse operations that are in compliance with state and federal
law shall not be adversely affected by this chapter.

(3) That domestic processing of lead-acid batteries and the
utilization of recycled materials from lead-acid batteries are
encouraged.

42420.2.  

This chapter shall be known, and may be cited, as the
Lead-Acid Battery Recovery and Recycling Act.

42421.  

For purposes of this chapter, the following definitions
shall apply:

(a) (1) “Consumer” means an owner of a lead-acid battery,
including a person, business, corporation, limited partnership,
nonprofit organization, or governmental entity, including the
ultimate purchaser, owner, or lessee of a lead-acid battery.

(2) “Consumer” does not include a governmental organization
or other party that obtains one or more used lead-acid batteries in
the course of collecting used lead-acid batteries for recycling for
purposes of this chapter, or through the ordinary collection and
handling of municipal solid waste.

(b) “Distributor” means a company that has a contractual
relationship with one or more manufacturers to market and sell
lead-acid batteries to retailers.

(c) “Good-faith effort” means all reasonable and economically
practical efforts, consistent with the components identified in the
approved plan and annual budget of a lead-acid battery recycling
organization.

(d) “Importer” means a party qualifying as an “importer of
record” for purposes of Section 1484(a)(2)(B) of Title 19 of the
United States Code, with regard to the import of a finished
lead-acid battery sold in the state that was manufactured or
assembled by a company outside the United States.

(e) “Lead-acid battery” means any battery that consists of lead
and sulfuric acid and is used as a power source.

(f) “Lead-acid battery recycling organization” or “organization”
means an organization exempt from taxation under Section
501(c)(3) or Section 501(c)(6) of the Internal Revenue Code of
1986, that is established by a qualified industry association,
composed of manufacturers, recyclers, retailers, and environmental
justice organizations, and certified pursuant to Section 42422, to
develop, implement, and administer the lead-acid battery recycling
program established pursuant to this chapter.

(g) (1) “Manufacturer” means any of the following:

(A) The person who manufactures a lead-acid battery and who
sells, offers for sale, or distributes a lead-acid battery in the state.

(B) The person who imports the lead-acid battery into the state
for sale or distribution if there is no person who is a manufacturer
of a lead-acid battery for purposes of subparagraph (A).

(2) A retailer that brings a lead-acid battery into its store
locations from an out-of-state warehouse or distribution center is
not a manufacturer.

(h) “Program” or “lead-acid battery recycling program” means
the program implemented by the lead-acid battery recycling
organization pursuant to a lead-acid battery recycling plan approved
by the department.

(i) “Qualified industry association” means the Battery Council
International, or a successor of that organization, or a group of
lead-acid battery manufacturers that collectively represent at least
35 percent of the volume of lead-acid batteries manufactured in
the United States.

(j) “Recycle” or “recycling” has the same meaning as defined
in Section 40180.

(k) “Recycler” means a person that engages in the manual or
mechanical separation of lead-acid batteries to substantially recover
components and commodities contained in lead-acid batteries for
the purpose of reuse or recycling.

(l) “Recycling charge” or “charge” means the charge imposed
on the sale of a new lead-acid battery at the point of sale and
collected by the recycling organization to fund the recycling of
used lead-acid batteries pursuant to this chapter.

(m) “Retailer” means a person who sells lead-acid batteries in
the state or offers to a consumer a lead-acid battery in the state
through any means, including, but not limited to, remote offering,
including sales outlets or catalogs, electronically through the
Internet, by telephone, or through the mail.

(n) “Sale” or “sell” means the transfer of title of a lead-acid
battery for consideration, including by a manufacturer, a distributor,
or a retailer, for eventual consumption to a consumer in the state,
including remote sales conducted through sales outlets, catalogs,
or the Internet or any other similar electronic means.

(o) “Solid waste facility” means, for purposes of this chapter,
a solid waste facility that accepts, under its normal operating
conditions, used lead-acid batteries from the public for collection,
storing, and handling, whether for recycling or disposal.

(p) “Used lead-acid battery recovery and recycling plan” or
“plan” means the plan for recycling used lead-acid batteries that
is developed by the lead-acid battery recycling organization
pursuant to this chapter.

 

Article 2.  Lead-Acid Battery Recycling Plan

 

42422.  

(a) (1) On or before July 1, 2017, a qualified industry
association shall establish a lead-acid battery recycling organization
for purposes of this chapter, which shall be composed of
manufacturers, recyclers, and retailers and be certified pursuant
to this section to develop, implement, and administer the lead-acid
battery recycling program established pursuant to this chapter.

(2) Within 60 days of receipt of a request for certification, the
department shall certify the organization as specified in paragraph
(1) or notify the requesting qualified industry association of the
department’s decision not to certify the organization.

(3) Prior to certification by the department, the department’s
director shall appoint an advisory committee to advise the lead-acid
battery recycling organization.

(A) The advisory committee shall be composed of members of
the environmental community, the solid waste industry, local
governmental entities, public and private entities involved in the
collection, processing, and recycling of used lead-acid batteries,
and other interested parties.

(B) The lead-acid battery recycling organization shall consult
the advisory committee at least once during the development of
the plan required pursuant to Section 42422.2, and annually prior
to the submittal of the annual report required pursuant to Section
42425.2 and the annual budget required pursuant to Section 42423.

(C) The advisory committee shall provide ongoing feedback to
a recycling organization on the implementation of the recycling
organization’s plan.

(b) On or before January 1, 2018, each manufacturer, retailer,
and recycler shall register with the lead-acid battery recycling
organization.

(c) On and after January 1, 2019, a retailer shall not sell,
distribute, or offer for sale a lead-acid battery in the state unless
the retailer is in compliance with this chapter and the manufacturer
or recycler of the lead-acid battery sold by the retailer is listed in
compliance with this chapter.

(d) On and after January 1, 2019, a manufacturer or recycler
shall not sell or offer for sale in this state, or import into this state,
a lead-acid battery, or sell or distribute a lead-acid battery to a
distributor or retailer in this state, unless the manufacturer or
recycler is in compliance with this chapter.

42422.2.  

On or before July 1, 2018, the lead-acid battery
recycling organization shall develop and submit to the department
a plan for recycling used lead-acid batteries in the state in an
economically efficient and practical manner that includes all of
the following goals and elements:

(a) Program objectives consistent with the state’s solid waste
management hierarchy.

(b) The names of manufacturers, recyclers, and brands, including
the types of lead-acid batteries, covered under the plan, and contact
information of manufacturers and producers covered under the
plan.

(c) A description of a consultation process with affected
stakeholders, including, but not limited to, local government
representatives, recyclers, and solid waste industry representatives,
undertaken during plan development, and a process for receiving
continuous feedback from stakeholders during plan
implementation.

(d) Methods to increase the number of used lead-acid batteries
diverted from landfills, reduce the number of illegally dumped
used lead-acid batteries, and increase the quantity of used
lead-acid-battery-related materials recovered and recycled for other
uses.

(e) A description of how the goals will be achieved and how
results will be measured, including an estimate of the amount of
lead-acid batteries with California recycling stickers that will be
recovered compared to the amount of lead-acid batteries sold in
the state.

(f) Roles and responsibilities of key players along the product
chain, including the names and locations of transporters, recyclers,
and disposal facilities, and a description of how lead-acid batteries
with California recycling stickers and their components will be
collected, transported, and managed.

(g) Strategies for managing and reducing the life cycle impacts
of lead-acid batteries, including finding an alternative to the use
of lead in batteries.

(h) Conducting research, as needed, related to improving
collection and recycling operations for used lead-acid batteries
with California recycling stickers, including pilot programs to test
new processes, methods, or equipment on a local, regional, or
otherwise limited basis.

(i) An itemized budget, including total program cost.

(j) (1) The establishment and administration of a mechanism
that distributes the lead-acid battery recycling organization’s costs
uniformly over all lead-acid batteries sold in the state.

(2) The funding mechanism shall provide sufficient funding for
the lead-acid battery recycling organization to carry out the plan,
including the administrative, operational, and capital costs of the
plan.

(k) Financing methods, including financial assurance, for the
program and an explanation of how the recycling organization will
provide evidence of adequate collection, handling, and recycling
or disposal of lead-acid batteries with California recycling stickers.

(l) The publishing of an annual report for each calendar year of
operation.

(m) A program performance measurement that shall collect
program data for the purpose of the annual report. The information
shall include:

(1) A methodology for estimating the amount of lead-acid
batteries sold in the state and for quantifying the number of used
lead-acid batteries with California recycling stickers collected and
recycled in the state.

(2) A methodology for determining the proportion of lead-acid
batteries sold in the state by the manufacturers that are members
of the lead-acid battery recycling organization.

(n) A description of methods used to coordinate activities with
other used lead-acid battery collecting and recycling programs,
including nonprofit lead-acid battery recyclers, and other relevant
parties, as appropriate, with regard to the proper management or
recycling of discarded or abandoned lead-acid batteries for
purposes of providing the efficient delivery of services and
avoiding unnecessary duplication of effort and expense.

(o) Entering into contracts or agreements, which may include
contracts and agreements with nonprofit or for-profit recyclers,
that are necessary and proper for the lead-acid battery recycling
organization to carry out these duties consistent with the terms of
this chapter.

(p) Establishment of a financial incentive to encourage parties
to collect for recycling used lead-acid batteries discarded or
illegally dumped in the state.

(q) Ensuring, to the maximum extent possible, that urban and
rural local governments and participating solid waste facilities that
accept lead-acid batteries are provided with a mechanism for the
recovery of illegally disposed used lead-acid batteries that is funded
at no additional cost to the local government or solid waste facility.

(r) Providing outreach efforts and education to consumers,
manufacturers, and retailers, for the purpose of promoting the
recycling of used lead-acid batteries and options available to
consumers for the free drop-off of used lead-acid batteries.

(s) A provision that allows an individual to drop off, at no
charge, a lead-acid battery at a lead-acid battery recycling center,
permitted solid waste facility, or other municipal facility that
accepts lead-acid batteries, and that provides for reasonable
payment to a municipal or solid waste facility that accepts lead-acid
batteries for collecting, storing, transporting, and handling used
lead-acid batteries.

(t) Ensuring that the impact of Article XIII C of the California
Constitution is addressed for local governments participating in
the program.

(u) A report from the advisory committee, established pursuant
to paragraph (3) of subdivision (a) of Section 42422, that includes
a summary of the consultative process between the advisory
committee and the lead-acid battery recycling organization during
the development of the plan, as well as any other information
deemed pertinent by the advisory committee to maximizing the
recovery and recycling of used lead-acid batteries in the state.

(v) Other information requested by the department that is
reasonably related to compliance with the recycling plan and that
the organization can reasonably compile.

42422.4.  

The recycling organization, in developing the plan
pursuant to Section 42422.2, may include market development
opportunities that would provide incentives to universities and
research companies to find alternatives to lead.

42422.6.  

(a) The department shall review the plan for
compliance with this chapter and shall approve, disapprove, or
conditionally approve the plan within 90 days of receipt of the
plan. If the department fails to act within 90 days of the receipt of
the plan, the plan shall be deemed approved.

(b) If the department disapproves the plan pursuant to
subdivision (a), the department shall explain, in writing, how the
plan does not comply with this chapter, and the lead-acid battery
recycling organization shall resubmit a plan to the department. If
the department finds that the plan as resubmitted by the
organization does not comply with the requirements of this chapter,
the lead-acid battery recycling organization shall be deemed not
in compliance with this chapter until the organization submits a
plan that the department finds complies with the requirements of
this chapter. The lead-acid battery recycling organization shall not
resubmit the plan more than two times to the department.

(c) The approved plan shall be a public record, except that
financial, production, or sales data reported to the department by
the lead-acid battery recycling organization is not public record
for purposes of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) and shall not be open to public inspection. The
department may release financial, production, or sales data in
summary form only so that the information cannot be attributable
to a specific manufacturer, retailer, or other entity.

42422.8.  

Within 90 days after approval or conditional approval
by the department of the plan, but no later than January 1, 2019,
the lead-acid battery recycling organization shall implement the
approved plan.

42422.9.  

(a) On or before January 1, 2021, based on
methodology contained in the plan and information contained in
the first annual report, the department, in consultation with the
organization and after taking into consideration relevant economic
and practical considerations and other information, shall establish
and make public the following:

(1) The state baseline amount of recycling of lead-acid batteries
with California recycling stickers.

(2) The state recycling goals for lead-acid batteries with
California recycling stickers.

(b) Beginning July 1, 2022, and annually thereafter, the annual
report required pursuant to Section 42425.2 shall demonstrate the
lead-acid battery recycling organization’s good-faith effort to
comply with the state lead-acid battery recycling goals established
pursuant to this section.

(c) On or before July 1, 2023, and every four years thereafter,
the department shall review, including reviewing for consistency
with Section 41780.01, and update, as necessary, the baseline
amount and goals to ensure that the program advances the state
recycling goal.

 

Article 3.  Budget

 

42423.  

On or before July 1, 2018, and on or before July 1
annually thereafter, the lead-acid battery recycling organization
shall prepare and submit to the department a proposed used
lead-acid battery recycling program budget for the following
calendar year that includes all of the following:

(a) Anticipated revenues and costs of implementing the program,
including related programs, projects, contracts, and administrative
expenses.

(b) A recommended funding level sufficient to cover the plan’s
budgeted costs and to operate the lead-acid battery recycling
program over a multiyear period in a prudent and responsible
manner.

(c) The amount of the lead-acid battery recycling charge and
an itemization of the costs of the program.

42423.2.  

(a) On or before October 1, 2018, and annually
thereafter, the department shall approve or disapprove a final used
lead-acid battery recycling program budget. If the department fails
to act or does not disapprove a final used lead-acid battery recycling
program budget, the budget shall be deemed approved.

(b) (1) If the department disapproves the budget, the department
shall explain, in writing, how the budget does not comply with
this article, and the lead-acid battery recycling organization shall
submit a revised budget addressing the department’s written
reasons for its decision within 30 days of the disapproval.

(2) The department, within 30 days from the date the lead-acid
battery recycling organization submits a revised budget, shall
approve or disapprove a final used lead-acid battery recycling
program budget. If the department fails to act or does not
disapprove a final program budget within those 30 days, the budget
shall be deemed approved.

42423.4.  

(a) The department shall notify the lead-acid battery
recycling organization of the department’s costs that are directly
related to implementing and enforcing this chapter relating to the
lead-acid battery recycling organization’s activities. This may
include the direct costs associated with regulatory development
prior to submittal of the plan required pursuant to Section 42422.2.
The total amount shall not exceed the department’s direct costs to
implement and enforce this chapter.

(b) On or before July 1, 2019, and once every three months
thereafter, and within the fiscal year ending June 30, the lead-acid
battery recycling organization shall reimburse the department for
costs the department incurs of which the organization is notified
pursuant to subdivision (a).

(c) The department shall deposit all moneys submitted pursuant
to this section into the Used Lead-Acid Battery Recycling Fund,
which is hereby established in the State Treasury. Upon
appropriation by the Legislature, moneys in the fund shall be
expended by the department to administer and enforce this chapter,
as well as reimburse any outstanding loans made from other funds
used to finance startup costs of the department’s activities pursuant
to this chapter. The funds collected pursuant to this section shall
not be expended for any other purpose.

 

Article 4.  Lead-Acid Battery Recycling Charge

 

42424.  

(a) The lead-acid battery recycling organization shall
set the amount of the lead-acid battery recycling charge that shall
be added to the purchase price of a lead-acid battery at the point
of sale and include the charge amount in the annual budget.

(b) The lead-acid battery recycling charge shall meet all of the
following:

(1) It shall be based on the value of lead.

(2) It shall be no more than twenty dollars ($20) and no less
than fifteen dollars ($15).

(3) It shall be a flat rate and not a percentage of the purchase
price of the lead-acid battery.

(c) The recycling organization shall not set more than two
different charges to accommodate lead-acid battery size
differentials.

begin insert

(d) The lead-acid battery recycling charge shall be charged in
lieu of any voluntary core charge being collected by retailers
covered under this chapter.

end insert begin delete

(d)

end delete

begin insert (e) end insert  If the amount of the lead-acid battery recycling charge
changes pursuant to subdivision begin delete (e), end delete begin insert (f), end insert the recycling organization
shall notify retailers and any other entities that collect the recycling
charge.

begin delete

(e)

end delete

begin insert (f) end insert  (1) In the first 12 months during which the lead-acid battery
recycling charge is collected, the lead-acid battery recycling
organization may change the amount of the lead-acid battery
recycling charge, in accordance with subdivision (b), and shall
provide no less than 90 days’ notice to the public of any change
in the amount of the charge.

(2) After one year from the date when the collection of the
lead-acid battery recycling charge commences, the lead-acid battery
recycling organization may change the amount of the charge, in
accordance with subdivision (b), but the lead-acid battery recycling
organization shall not change the amount of the charge more
frequently than annually and shall provide no less than 180 days’
notice to the public before the change in the amount of the charge
takes effect.

begin delete

(f)

end delete

begin insert (g) end insert  The amount of the begin insert lead-acid battery recycling end insert charge shall
be included in the annual program budget for approval by the
department.

42424.1.  

(a) On a quarterly basis, a manufacturer, recycler,
retailer, or distributor shall submit all moneys collected pursuant
to this article, minus the amount disbursed to consumers for the
return of lead-acid batteries with California recycling stickers
pursuant to Section 42427, to the recycling organization along
with any additional paperwork required by the department.

(b) (1) The recycling organization shall remit to the state one
dollar ($1) from the sale of each lead-acid battery with a California
recycling sticker to be deposited in the Lead-Acid Battery Cleanup
Fund, which is hereby created. Money in the Lead-Acid Battery
Cleanup Fund shall be continuously appropriated, without regard
to fiscal year, to the Department of Toxic Substances Control for
the cleanup of areas of the state that have been contaminated by
the production, recycling, or improper disposal of lead-acid
batteries and activities described in Article 11 (commencing with
Section 42431).

(2) The balance in the Lead-Acid Battery Cleanup Fund shall
not be more than one hundred million dollars ($100,000,000). If
the balance in the Lead-Acid Battery Cleanup Fund reaches one
hundred million dollars ($100,000,000), notice shall be given to
the organization, and a retailer of lead-acid batteries and other
collectors of the lead-acid battery recycling charge shall decrease
the amount of the lead-acid battery recycling charge by one dollar
($1) and the recycling organization shall suspend remitting moneys
pursuant to paragraph (1). When the fund reaches thirty million
dollars ($30,000,000), notice shall be given to the organization,
and the retailer or collector of the recycling charge shall increase
the lead-acid battery recycling charge by one dollar ($1) and the
recycling organization shall resume remitting moneys pursuant to
paragraph (1).

42424.2.  

(a) Commencing 90 days after the date the department
approves or conditionally approves the plan pursuant to Section
42422.6, each manufacturer, recycler, retailer, or distributor that
sells a lead-acid battery to a consumer or to the ultimate end user
of the lead-acid battery in the state shall add the charge to the
purchase price of the lead-acid battery.

(b) In each transaction described in subdivision (a), the charge
shall be clearly visible as a separate line item on the invoice,
receipt, or functionally equivalent billing document provided by
the retailer to the consumer.

(c) The lead-acid battery recycling organization shall develop
reimbursement criteria to enable retailers to recover administrative
costs associated with collecting the charge.

(d) The lead-acid battery recycling organization shall determine
the rules and procedures that are necessary and proper to implement
the collection of the charge in a fair, efficient, and lawful manner.

42424.4.  

(a) The lead-acid battery recycling organization may
conduct an audit of the parties that are required to remit the charge
to the lead-acid battery recycling organization to verify that the
charges paid are proper and accurate and to ensure all parties
required by this chapter to pay or collect the charge are paying or
collecting the proper amount.

(b) An audit conducted pursuant to this section shall be carried
out in accordance with generally accepted auditing practices and
shall be limited in scope to confirming whether the charge has
been properly collected on all sales of lead-acid batteries to
consumers in the state.

(c) For purposes of conducting audits pursuant to this section,
the lead-acid battery recycling organization shall hire independent
third-party auditors.

(d) If the lead-acid battery recycling organization conducts an
audit pursuant to this section, the organization shall provide a copy
of the audit to the department.

42424.6.  

(a) Except as provided in Section 42424.1, the
lead-acid battery recycling organization shall deposit the charges
and other moneys collected by the lead-acid battery recycling
organization pursuant to this chapter in accounts that are
maintained and disbursed by the organization.

(b) The lead-acid battery recycling organization may enter into
a joint venture, agreements, or contracts with third parties,
including, but not limited to, corporations, partnerships, nonprofit
entities, and governmental agencies, to undertake activities on the
lead-acid battery recycling organization’s behalf that are consistent
with this chapter.

 

Article 5.  Records, Audits, and Annual Report

 

42425.  

(a) The lead-acid battery recycling organization shall
keep minutes, books, and records that clearly reflect the activities
and transactions of the organization.

(b) (1) The accounting books of the lead-acid battery recycling
organization shall be audited at the organization’s expense by an
independent certified public accountant retained by the organization
at least once each calendar year.

(2) The audit shall include, but is not limited to, the recycling
organization’s program results and the number of lead-acid
batteries with California recycling stickers that have been returned
pursuant to Article 7 (commencing with Section 42427) in
comparison to the number of lead-acid batteries sold in the state.

(c) The lead-acid battery recycling organization shall arrange
for each audit conducted since the prior annual report to be
delivered to the department, along with the annual report required
pursuant to Section 42425.2. The department shall review each
audit for compliance with this chapter and consistency with the
plan created pursuant to this chapter. The department shall notify
the lead-acid battery recycling organization of any compliance
issues or inconsistencies. The lead-acid battery recycling
organization may obtain copies of the audits upon request. The
department shall not disclose any confidential proprietary
information in an audit.

(d) The department may conduct its own audit if it determines
that an audit is necessary to enforce the requirements of this chapter
and that audits conducted pursuant to subdivision (b) are not
adequate for this purpose.

42425.2.  

On or before July 1, 2020, and each year thereafter,
the lead-acid battery recycling organization shall submit to the
department and make publicly available on its Internet Web site
a report that includes, for the preceding calendar year, all of the
following:

(a) The lead-acid battery recycling organization’s costs and
revenues.

(b) The quantity of discarded used lead-acid batteries with
California recycling stickers collected for recycling in the program.

(c) The quantity of used lead-acid batteries with California
recycling stickers collected for recycling from different types of
collection points.

(d) The quantity of materials recycled, disaggregated by
material.

(e) The uses for the recycled materials, disaggregated by
material.

(f) The quantity of materials disposed of without recycling.

(g) A description of methods used, and the best management
practices, to collect, transport, and process used lead-acid batteries
in this state.

(h) In the first report pursuant to this section, examples of
educational materials that were provided to consumers during the
program’s first year, and, in subsequent years, any changes to those
materials.

(i) The total volume, number, and weight of used lead-acid
batteries with California recycling stickers collected, recycled, and
reused in this state during the preceding calendar year, including
any conversion factor used to determine the number of lead-acid
batteries recovered.

(j) A report by the advisory committee, established pursuant to
paragraph (3) of subdivision (a) of Section 42422 that includes a
summary of the consultative process between the advisory
committee and the lead-acid battery recycling organization relating
to the ongoing implementation of the plan, as well as any other
information deemed pertinent by the advisory committee to
maximizing the recovery and recycling of used lead-acid batteries
in the state.

(k) For reports submitted on and after April 1, 2023, a
demonstration of good-faith effort with the state lead-acid battery
recycling goals established pursuant to Section 42422.9.

(l) (1) Any modifications or revisions to the lead-acid battery
recycling plan including those required pursuant to Section
42422.2, necessary to achieve the state lead-acid battery recycling
goals established pursuant to Section 42422.9.

(2) Any proposed modifications or revisions to the lead-acid
battery recycling plan shall be submitted to the department and
are subject to the department review process prescribed in Section
42422.6.

(3) Within 90 days after approval or conditional approval by
the department, the lead-acid battery recycling organization shall
implement the revised plan.

(m) Other information relevant to compliance with the plan.

42425.4.  

No later than 60 days after the date the department
receives the annual report, the department shall notify the lead-acid
battery recycling organization of any deficiencies in the report.
No later than 60 days after receiving this notice from the
department, the lead-acid battery recycling organization shall
provide additional information, or modify or make corrections in
the report, in response to the department’s notification.

 

Article 6.  Lead-Acid Battery Recycling

 

42426.  

(a) On or before July 1, 2020, and annually thereafter,
a person that is engaged in business as a recycler shall submit a
report to the department that includes the following:

(1) The number of lead-acid batteries with California recycling
stickers received and recycled in the state during the preceding
calendar year.

(2) Other information deemed necessary by the department that
is reasonably related to compliance with this chapter and that can
be reasonably compiled.

(b) For purposes of determining the used lead-acid battery
recycling rate, on or before July 1, 2020, and annually thereafter,
the operator of a solid waste landfill facility within the state shall
report to the department, if requested, in a form and manner
determined by the department, regarding the number of used
lead-acid batteries with California recycling stickers received by
that facility that were recycled or disposed of in the preceding
calendar year.

(c) The department shall make the information provided pursuant
to this section available to interested parties and to the public.

 

Article 7.  California Lead-Acid Battery Consumer Recycling
Program

 

42427.  

(a) On and after the same date a manufacturer, recycler,
retailer, or distributor described in Section 42424.2 is required to
add the recycling charge to the purchase price of a lead-acid
battery, that manufacturer, recycler, retailer or distributor shall
affix a California recycling sticker, as determined by the
department, to each lead-acid battery at the point of sale. Every
lead-acid battery sold in California on and after that date shall be
labeled with that California recycling sticker.

(b) (1) Except as provided in paragraph (2), a consumer who
returns a lead-acid battery with a California recycling sticker to a
manufacturer, retailer, or other entity that sells lead-acid batteries
to the ultimate user shall be given a refund of the recycling charge
minus three dollars ($3).

(2) If at the time the consumer returns a lead-acid battery the
recycling organization is not remitting one dollar ($1) into the
Lead-Acid Battery Cleanup Fund, as described in paragraph (2)
of subdivision (b) of Section 42424.1, the refund shall be the
recycling charge minus two dollars ($2).

(3) One dollar ($1) of the three dollars ($3) described in
paragraph (1) shall be used as the one dollar ($1) remitted to the
Lead-Acid Battery Cleanup Fund pursuant to Section 42424.1.
The remaining two dollars ($2) shall be used by the lead-acid
battery recycling organization for administration and
implementation of the program.

(c) A consumer who returns a lead-acid battery without a
California recycling sticker shall not be given a refund.

42427.2.  

If the total amount of refunds given out by an entity
exceeds the total amount of recycling charge collected by the entity,
the entity shall receive moneys from the recycling organization in
the amount of the difference.

42427.4.  

An entity that sells or distributes a lead-acid battery
in California to the ultimate user shall accept a used lead-acid
battery regardless if the lead-acid battery has a California recycling
sticker.

42427.6.  

A retailer that sells a used lead-acid battery to a
manufacturer shall remit 75 percent of the sale price of the used
lead-acid battery to the lead-acid battery recycling organization
for deposit into the Lead-Acid Battery Cleanup Fund.

 

Article 8.  Enforcement

 

42428.  

(a) On or before March 1, 2018, and annually thereafter,
the department shall post on its Internet Web site a list of
manufacturers and recyclers that are in compliance with this
chapter.

(b) A manufacturer or recycler that is not listed on the
department’s Internet Web site pursuant to this section, but
demonstrates compliance with begin insert the requirements directly imposed
by end insert this chapter before the next notice is required to be posted
pursuant to this section, may request a certification letter from the
department stating the manufacturer or recycler is in compliance.
The manufacturer or recycler that receives the letter shall be
deemed to be in compliance with this chapter.

(c) A retailer that distributes or sells a lead-acid battery shall
monitor the department’s Internet Web site to determine if the
manufacturer or recycler is in compliance with this chapter. A
retailer otherwise in compliance with this chapter shall be deemed
in compliance with the chapter if, on the date the retailer ordered
or purchased a lead-acid battery, or within 120 calendar days before
or after that date, the manufacturer or recycler was listed as
compliant on the department’s Internet Web site, unless it is shown
the retailer was actually aware of the manufacturer’s or recycler’s
noncompliance.

(d) A retailer may sell or distribute lead-acid batteries through
sales to the public if those batteries were initially ordered or
purchased from a manufacturer or recycler when the manufacturer
or recycler was in compliance with the requirements of this chapter
or the retailer is deemed compliant in regard to those batteries
pursuant to subdivision (c).

(e) The sale, distribution, or offering for sale of any lead-acid
battery in stock prior to the commencement of the collection of
the lead-acid battery recycling charge pursuant to this chapter shall
be deemed to be in compliance with this chapter.

(f) If the department determines a manufacturer or recycler is
not in compliance with this chapter, the department shall remove
the manufacturer or recycler from the department’s Internet Web
site pursuant to this section and the manufacturer or recycler shall
not sell a lead-acid battery in the state until the department
determines the manufacturer or recycler is in compliance with this
chapter.

42428.2.  

(a) The department may impose an administrative
civil penalty on any manufacturer, lead-acid battery recycling
organization, recycler, or retailer that is in violation of this chapter.
The amount of the administrative civil penalty shall not exceed
one thousand dollars ($1,000) per day, but if the violation is
intentional, knowing, or reckless, the department may impose an
administrative civil penalty of not more than ten thousand dollars
($10,000) per day.

(b) The department shall not impose a penalty on the lead-acid
battery recycling organization pursuant to this section for a failure
to comply with this chapter if the organization demonstrates it
received false or misleading information from a member of the
organization or another party that was the direct cause of its failure
to comply.

(c) The department shall deposit all penalties collected pursuant
to this section into the Lead-Acid Battery Recovery and Recycling
Penalty Account, which is hereby created in the Used Lead-Acid
Battery Recycling Fund. Upon appropriation by the Legislature,
moneys deposited into the Lead-Acid Battery Recovery and
Recycling Penalty Account shall be expended by the department
to administer and enforce this chapter, including offsetting the
costs incurred by the department as specified in subdivision (a) of
Section 42423.4.

42428.4.  

Upon a written finding that a manufacturer, lead-acid
battery recycling organization, recycler, or retailer has not met a
material requirement of this chapter, in addition to any other
penalties authorized under this chapter, the department may take
any of the following actions, after affording the manufacturer,
organization, recycler, or retailer a reasonable opportunity to
respond to or rebut the finding, to ensure compliance with the
requirements of this chapter:

(a) Revoke the lead-acid battery recycling organization’s plan
approval or require the lead-acid battery recycling organization to
resubmit the plan.

(b) Remove the manufacturer or recycler from the department’s
Internet Web site and list of compliant manufacturers and recyclers,
as specified in Section 42428.

(c) Require additional reporting requirements relating to
compliance with the material requirement identified by the
department.

42428.6.  

(a) A manufacturer, recycler, retailer, and lead-acid
battery recycling organization shall do both of the following:

(1) Upon request, provide the department with reasonable and
timely access, as determined by the department and as authorized
pursuant to Title 13 (commencing with Section 1822.50) of Part
3 of the Code of Civil Procedure, to its facilities and operations,
as necessary to determine compliance with this chapter.

(2) Upon request, provide the department with relevant records
necessary to determine compliance with this chapter.

(b) The records required by this chapter shall be maintained and
accessible for three years. All reports and records provided to the
department pursuant to this chapter shall be provided under penalty
of perjury.

(c) The department may take disciplinary action against a
manufacturer, recycler, retailer, or lead-acid battery recycling
organization if the manufacturer, recycler, retailer, or lead-acid
battery recycling organization fails to provide the department with
the access required pursuant to this section, including, but not
limited to, imposing penalties pursuant to Section 42428.2 and
posting an immediate notice on the department’s Internet Web site
pursuant to Section 42428 that the manufacturer or recycler is no
longer in compliance with this chapter.

 

Article 9.  Emergency Regulatory Authority

 

42429.  

(a) (1) The department may adopt emergency
regulations to implement this chapter with regard to establishing
a process for the submission and approval of the used lead-acid
battery recovery and recycling plan, pursuant to Section 42422.6,
and for the submission and approval of the proposed used lead-acid
battery recycling program budget, pursuant to Sections 42423 and
42423.2.

(2) The department shall not adopt regulations pursuant to this
section with regard to any other provision of this chapter.

(3) This section does not limit the department’s authority to
adopt regulations pursuant to Section 40502.

(b) The emergency regulations adopted pursuant to this section
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 department pursuant to this
section shall be filed with the Office of Administrative Law.

 

Article 10.  Antitrust Immunity

 

42430.  

(a) Except as provided in subdivision (c), an action
specified in subdivision (b) that is taken by a lead-acid battery
recycling organization or its members that relates to any of the
following is not a violation of the Cartwright Act (Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the
Business and Professions Code), the Unfair Practices Act (Chapter
4 (commencing with Section 17000) of Part 2 of Division 7 of the
Business and Professions Code), or the Unfair Competition Law
(Chapter 5 (commencing with Section 17200) of Part 2 of Division
7 of the Business and Professions Code).

(b) Subdivision (a) shall apply to all of the following elements
of the plan and actions taken by the lead-acid battery recycling
organization, manufacturer, or recycler:

(1) The creation, implementation, or management of a plan
approved by the department pursuant to Article 2 (commencing
with Section 42422) and the selection of the types or quantities of
used lead-acid batteries recycled or otherwise managed pursuant
to a plan, as described in Article 2 (commencing with Section
42422).

(2) The cost and structure of an approved plan.

(3) The establishment, administration, collection, or
disbursement of the charges associated with funding the
implementation of this chapter.

(c) Subdivision (a) shall not apply to an agreement that does
any of the following:

(1) Fixes a price of or for lead-acid batteries, except for an
agreement related to costs or charges associated with participation
in a plan approved or conditionally approved by the department
and otherwise in accordance with this chapter.

(2) Fixes the output of production of lead-acid batteries.

(3) Restricts the geographic area in which, or customers to
whom, lead-acid batteries will be sold.

 

Article 11.  Cleanup and Corrective Action of Sites
Contaminated by Lead-Acid Batteries

 

42431.  

If the state loans money from the General Fund to the
Toxic Substances Control Account during the 2016-17 fiscal year
for the cleanup of lead contamination in the state, the following
shall apply:

(a) Money from the Lead-Acid Battery Cleanup Fund may be
used towards repaying the begin delete loan. end delete begin insert loan, in an amount necessary to
fund any share of the cleanup costs for which there is no
identifiable responsible party. end insert

(b) Any moneys designated as repayment of the loan shall be
credited to that loan, but shall be available to be loaned to the Toxic
Substances Control Account for the purposes of cleaning up
additional contamination by lead-acid batteries.