BILL NUMBER: AB 2153 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 14, 2016
AMENDED IN ASSEMBLY APRIL 5, 2016
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.
The bill would require the lead-acid battery recycling charge
to be charged in lieu of any voluntary core charge being collected by
retailers. 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 reimbursement
repayment of a portion of a specified General Fund loan
from the Lead-Acid Battery Cleanup Fund, and would make that
reimbursement repayment 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.
(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.
(d)
(e) If the amount of the lead-acid battery recycling
charge changes pursuant to subdivision (e),
(f), the recycling organization shall notify retailers and any
other entities that collect the recycling charge.
(e)
(f) (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.
(f)
(g) The amount of the lead-acid battery recycling
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 the requirements directly imposed
by 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 loan. loan, in an amount
necessary to fund any share of the cleanup costs for which there is
no identifiable responsible party.
(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.