BILL NUMBER: AB 1103 CHAPTERED
BILL TEXT
CHAPTER 822
FILED WITH SECRETARY OF STATE OCTOBER 13, 1995
APPROVED BY GOVERNOR OCTOBER 12, 1995
PASSED THE SENATE SEPTEMBER 15, 1995
PASSED THE ASSEMBLY SEPTEMBER 15, 1995
AMENDED IN SENATE AUGUST 28, 1995
AMENDED IN SENATE JULY 28, 1995
AMENDED IN SENATE JULY 6, 1995
INTRODUCED BY Assembly Member Sher
FEBRUARY 23, 1995
An act to amend Sections 48610.5, 48650, 48650.5, 48653, 48657,
48660, 48660.5, 48674, 48690, and 48695 of, to add Section 48655 to,
and to repeal Section 48654 of, the Public Resources Code, relating
to recycling, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1103, Sher. Oil recycling.
(1) Existing law, the California Oil Recycling Enhancement Act,
requires a used oil collection center to receive certification from
the California Integrated Waste Management Board that it is in
compliance with specified requirements to be eligible for the payment
of recycling incentives under the act. These requirements include,
among others, providing notice to the public, through onsite signs,
of specified dimensions and wording, of the center's acceptance of
used lubricating oil from the public.
Existing law defines the term "bulk oil" for purposes of the act.
Existing law requires an oil manufacturer to pay to the board a
specified amount for every gallon of lubricating oil sold or
transferred in the state, or imported into the state for use in the
state. These amounts are required to be deposited in the California
Used Oil Recycling Fund, which is continuously appropriated for
specified purposes. Existing law provides that the board's books,
records, and accounts are subject to an annual audit by an auditing
firm.
A violation of the act is a crime.
This bill would revise the definition of the term "bulk oil." The
bill would require, in determining the amount of the fee, that a
specified weight to volume conversion factor of 7.5 pounds per gallon
be used. The bill would require that when an amount represented by
a person to a customer as constituting reimbursement for these fees
is computed upon an amount that is not subject to that fee, or is in
excess of that fee amount due, and is actually paid by the customer
to the person, the amount so paid is required to be returned by the
person to the customer, as specified. The bill would subject any
amounts paid into or from the fund to an annual audit.
The bill would authorize the board to enter into a contract with
the Department of Toxic Substances Control that would utilize the
resources of the department to provide for greater investigation and
enforcement efforts for used lubricating oil handling, and storage
and transfer facility operations and would require the department to
assist the board in developing the used oil program and providing
assistance to local governments in removing barriers to the
establishment of used oil collection programs. The bill would
appropriate the sum of $100,000 to the board, for expenditure during
the 1995-96 fiscal year, from the California Used Oil Recycling Fund,
for this purpose, and would make a legislative finding of intent
that the sum of $250,000 should be annually appropriated from the
fund in the annual Budget Act to the board, commencing with fiscal
year 1996-97 for this purpose.
The bill would revise the information required to be included in
the sign of a used oil collection center and the manner of posting
the sign. The bill would make clarifying changes in related
provisions.
Since a violation of the bill's requirements would be a crime, the
bill would impose a state-mandated local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 48610.5 of the Public Resources Code is amended
to read:
48610.5. "Bulk oil" means oil sold and delivered in a single
transaction in an amount greater than 55 gallons regardless of the
size of the container or containers in which the oil is delivered.
SEC. 2. Section 48650 of the Public Resources Code, as amended by
Section 8 of Chapter 1147 of the Statutes of 1994, is amended to
read:
48650. (a) Every oil manufacturer shall pay to the board, on or
before the last day of the month following each quarter, an amount
equal to four cents ($0.04) for every quart, or sixteen cents ($0.16)
for every gallon, of lubricating oil sold or transferred in the
state, or imported into the state for use in the state in that
quarter. For lubricating oil sold by weight, a weight to volume
conversion factor of 7.5 pounds per gallon shall be used to determine
the fee. Except as provided in subdivision (b), no payment is
required for oil which meets any of the following:
(1) Oil for which a payment has already been made to the board
pursuant to this section.
(2) Oil exported or sold for export from the state.
(3) Oil sold for use in vessels operated in interstate or foreign
commerce.
(4) Oil imported into the state in the engine crankcase,
transmission, gear box, or differential of an automobile, bus, truck,
vessel, plane, train, or heavy equipment or machinery.
(5) Bulk oil imported into, transferred in, or sold in the state
to a motor carrier, as defined in Section 408 of the Vehicle Code,
and used in a vehicle designated in subdivisions (a) and (b) of
Section 34500 of the Vehicle Code.
(6) The oil otherwise subject to payment pursuant to this
subdivision has a total volume of 500 gallons or less for each
quarter.
(b) If oil exempted from payment pursuant to subdivision (a) is
subsequently sold or transferred for use, or is used, in this state,
and the use does not qualify for exemption pursuant to subdivision
(a), the entity which sells, transfers, or uses the oil for a purpose
which is not exempt from payment, shall make the payment specified
in subdivision (a).
(c) This section shall remain in effect only until January 1,
2000, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2000, deletes or extends
that date.
SEC. 3. Section 48650 of the Public Resources Code, as added by
Section 9 of Chapter 1147 of the Statutes of 1994, is amended to
read:
48650. (a) Every oil manufacturer shall pay to the board, on or
before the last day of the month following each quarter, an amount
equal to four cents ($0.04) for every quart, or sixteen cents ($0.16)
for every gallon, of lubricating oil sold or transferred in the
state, or imported into the state for use in the state in that
quarter. For lubricating oil sold by weight, a weight to volume
conversion factor of 7.5 pounds per gallon shall be used to determine
the fee. Except as provided in subdivision (b), no payment is
required for oil which meets any of the following:
(1) Oil for which a payment has already been made to the board
pursuant to this section.
(2) Oil exported or sold for export from the state.
(3) Oil sold for use in vessels operated in interstate or foreign
commerce.
(4) Oil imported into the state in the engine crankcase,
transmission, gear box, or differential of an automobile, bus, truck,
vessel, plane, train, or heavy equipment or machinery.
(5) Bulk oil imported into, transferred in, or sold in the state
to a motor carrier, as defined in Section 408 of the Vehicle Code,
and used in a vehicle designated in subdivisions (a) and (b) of
Section 34500 of the Vehicle Code.
(6) The oil otherwise subject to payment pursuant to this
subdivision has a volume of five gallons or less.
(b) If oil exempted from payment pursuant to subdivision (a) is
subsequently sold or transferred for use, or is used, in this state,
and the use does not qualify for exemption pursuant to subdivision
(a), the entity which sells, transfers, or uses the oil for a purpose
which is not exempt from payment, shall make the payment specified
in subdivision (a).
(c) This section shall become operative on January 1, 2000.
SEC. 4. Section 48650.5 of the Public Resources Code is amended to
read:
48650.5. (a) Any person who has made a payment pursuant to
Section 48650 on lubricating oil exempted from payment pursuant to
subdivision (a) of Section 48650, and the payment was made either
directly to the board, or indirectly to a vendor from whom it was
purchased, by the adding of the amount of the payment to the price of
the lubricating oil, shall be reimbursed and repaid the amount of
the payment made on that oil, except as otherwise provided in this
section.
(b) The claimant of a refund shall present to the board a claim
supported by the original invoice showing the purchase. The claim
shall state the total amount of the lubricating oil purchased by the
claimant and the manner and the equipment in which the claimant has
used the lubricating oil. The claim shall not be under oath but
shall contain, or be accompanied by, a written declaration that it is
made under the penalty of perjury.
(c) The board, upon the presentation of the claim and the invoice,
shall pay the claimant from the payments collected under Section
48650 an amount equal to the payments collected on the lubricating
oil in respect to which the refund is claimed.
(d) Any person who willfully makes or subscribes to a claim for
refund under this section which the person does not believe to be
true and correct as to every material matter is guilty of a felony,
and upon conviction thereof shall be subject to the penalties
prescribed for perjury by the Penal Code. All applications for
refund under this section based upon the exportation of lubricating
oil from this state shall be filed with the board within the three
months after the close of the calendar month in which the lubricating
oil is exported or 13 months from the date of the purchase of the
lubricating oil, whichever is later. Any application filed after the
prescribed time shall not be considered by the board or any other
agency or officer of the state for any purpose.
(e) In lieu of the collection and refund of the payment on
lubricating oil used by a manufacturer in a manner that entitles a
purchaser to claim a refund under this section, the board may give a
credit to the manufacturer upon the filing of a return and the
determination of the amount of the fee.
(f) In lieu of the collection and refund of the payment on
lubricating oil exported by a licensed manufacturer for use outside
the state in a manner that entitles a manufacturer to claim a refund
pursuant to this section, the board may give a credit to the
distributor upon his or her payment return and the determination of
the amount of his or her payment, in accordance with such rules and
regulations as the board may prescribe.
(g) When an amount represented by a person to a customer as
constituting reimbursement for fees due under this chapter is
computed upon an amount that is not subject to that fee, or is in
excess of that fee amount due, and is actually paid by the customer
to the person, the amount so paid shall be returned by the person to
the customer, upon notification by the board or by the customer that
the excess has been ascertained. If the person fails or refuses to
return that amount, the person shall remit to the board the amount so
paid, if the amount was knowingly or mistakenly computed by the
person upon an amount that is not subject to the fee, or is in excess
of the fee due.
SEC. 5. Section 48653 of the Public Resources Code is amended to
read:
48653. The board shall deposit all amounts paid pursuant to
Section 48650 by manufacturers, civil penalties, or fines paid
pursuant to this chapter, and all other revenues received pursuant to
this chapter into the California Used Oil Recycling Fund, which is
hereby created in the State Treasury. Notwithstanding Section 13340
of the Government Code, the money in the fund is to be appropriated
solely as follows:
(a) Continuously appropriated to the board for expenditure for the
following purposes:
(1) To pay recycling incentives pursuant to Section 48651.
(2) To provide a reserve for contingencies, as may be available
after making other payments required by this section, in an amount
not to exceed one million dollars ($1,000,000).
(3) To make block grants for the implementation of local used oil
collection programs adopted pursuant to Article 10 (commencing with
Section 48690) to cities, based on the city's population, and
counties, based on the population of the unincorporated area of the
county, in a total annual amount equal to ten million dollars
($10,000,000) or half of the amount which remains in the fund after
the expenditures are made pursuant to paragraphs (1) to (3),
inclusive, and subdivision (b), whichever amount is greater,
multiplied by the fraction equal to the population of cities and
counties which are eligible for block grants pursuant to Section
48690, divided by the population of the state. The board shall use
the latest population estimates of the state generated by the
Population Research Unit of the Department of Finance in making the
calculations required by this paragraph.
(4) For expenditures pursuant to Section 48656.
(b) The money in the fund may be expended by the board for the
administration of this chapter and by the department for inspections
and reports pursuant to Section 48661, only upon appropriation by the
Legislature in the annual Budget Act.
(c) Appropriations to the board to pay the costs necessary to
administer this chapter, including implementation of the reporting,
monitoring, and enforcement program pursuant to subdivision (d) of
Section 48631, shall not exceed three million dollars ($3,000,000)
annually.
(d) The Legislature hereby finds and declares its intent that the
sum of two hundred fifty thousand dollars ($250,000) should be
annually appropriated from the California Used Oil Recycling Fund in
the annual Budget Act to the board, commencing with fiscal year
1996-97, for the purposes of Section 48655.
SEC. 6. Section 48654 of the Public Resources Code is repealed.
SEC. 7. Section 48655 is added to the Public Resources Code, to
read:
48655. The board may enter into a contract with the department
that will utilize the resources of the department to provide for
greater investigation and enforcement efforts for used lubricating
oil handling and storage and transfer facility operations. The
department shall assist the board in developing the used oil program
and providing assistance to local governments in removing barriers to
the establishment of used oil collection programs.
SEC. 8. Section 48657 of the Public Resources Code is amended to
read:
48657. The board shall keep accurate books, records, and accounts
of all of its dealings, and these books, records, and accounts, and
any amounts paid into or from the fund, are subject to an annual
audit by an auditing firm selected by the board. The auditing firm
or the board shall also conduct a selective audit of entities making
payments to, or receiving payments from, the board to determine
whether payments required by Section 48650 are being paid to the
board on all lubricating oil sold in California, and that grants and
recycling incentives are being paid out properly by the board. The
audit shall be made a part of the report required pursuant to Section
40507.
SEC. 9. Section 48660 of the Public Resources Code is amended to
read:
48660. (a) No used oil collection center shall be eligible for
the payment of recycling incentives until the board has certified
that the center is in compliance with the requirements specified in
subdivision (b). Before certification, the board may require the
center to submit any information that the board determines is
necessary to find that the center is in compliance with those
requirements. The centers shall reapply for certification every two
years. The board may cancel the certification of a center if the
board finds, after a public hearing, that the center is not, or has
not been, in compliance with subdivision (b). The board may withhold
the payment of recycling incentives for used lubricating oil
collected by a center if the board finds that the center was not in
compliance with subdivision (b) during the time in which the used
lubricating oil was collected.
(b) To be eligible for certification by the board and for the
payment of recycling incentives, the used oil collection center shall
do all of the following:
(1) (A) Accept used lubricating oil from the public at no charge
during the hours between 8 a.m. and 8 p.m. that the entity operating
as the center is open for business.
(B) The board may approve alternative hours for the acceptance of
used lubricating oil by an individual center if either of the
following conditions are met:
(i) The center accepts used lubricating oil for 12 continuous
hours daily.
(ii) The center demonstrates that compliance with Section 280.42
of Title 40 of the Code of Federal Regulations prevents the center
from complying with subparagraph (A).
(2) Pay to any person an amount equal to the recycling incentive
which the center will receive for used lubricating oil brought to the
center in containers by the person. Nothing in this chapter
prohibits any person from donating used lubricating oil to a center.
With the exception of centers that generate used lubricating oil by
servicing motor vehicles, the recycling incentive may be in the form
of a credit that may be applied toward the purchase of goods or
services offered by the center, as determined by the board. The
credit shall be in the form of a voucher or coupon with a value of at
least twice the incentive amount to be paid pursuant to Section
48652 and have no other limits for use, unless prescribed by the
board.
(3) Provide information to the board for informing the public of
the center's acceptance of used lubricating oil.
(4) Provide notice to the public, through onsite signs and
periodic advertising in local media, of the center's acceptance of
used lubricating oil from the public. Onsite signs shall be of a
design prescribed by the board and exterior signs shall be posted in
a location that is easily visible from a public street. Certified
centers shall post a combined symbolic and information exterior sign
of at least two feet by three feet in size, or shall post an exterior
symbolic sign of at least two feet by 18 inches in size. If the
exterior symbolic sign is posted, the combined symbolic and
informational sign shall be concurrently posted so that it is easily
readable from the location where the used oil is received from the
public. The exterior symbolic sign shall include the following words
in a manner specified by the board: "Used Oil Collection Center."
The informational portion of the combined signs shall include the
following words, in a manner specified by the board: "Used Oil
Collection Center--Recycling Incentive Paid for Used Lubricating Oil
in Containers During Business Hours from Members of the Public Who
Change Their Own Oil." A center which does not accept used
lubricating oil from the public during all of its business hours, but
meets the requirements of paragraph (1), shall indicate on the
exterior sign the hours when that used oil is accepted at no charge
from the public and these hours shall be posted instead of the
business hours. Where local zoning ordinances prevent signs of a
size consistent with this section, the exterior symbolic sign shall
be of the maximum allowable size.
(c) Notwithstanding subdivision (b), a used oil collection center
shall not accept more than 20 gallons of used lubricating oil, in
containers not larger than five gallons, from a person each day, and
may refuse to accept used lubricating oil which has been contaminated
in a manner other than that which would occur through normal use.
(d) Notwithstanding subdivision (b), no used oil collection center
shall knowingly accept used lubricating oil for which a payment has
not been made pursuant to Section 48650.
SEC. 10. Section 48660.5 of the Public Resources Code is amended
to read:
48660.5. (a) If the board finds that a shipment of used oil from
a certified used oil collection center or a curbside collection
program is contaminated by hazardous materials in excess of that
which generally occurs in normal use, which renders the used oil
infeasible for recycling, and requires that the used oil be destroyed
at a substantially higher cost than the cost generally to recycle
used oil, the board shall, upon application by the used oil
collection center or curbside collection program, reimburse the
center or program for the additional disposal cost, subject to the
eligibility requirements of subdivision (b), except as provided in
subdivision (c).
(b) A certified used oil collection center or curbside collection
program is eligible for reimbursement only if it demonstrates to the
satisfaction of the board all of the following:
(1) The center or program has established procedures to ensure
that the used oil it generates and accepts from the public will not
be mixed with other hazardous wastes, especially halogenated wastes.
These procedures shall include, but not be limited to, instructing
the public and employees that used oil shall not be mixed with other
hazardous waste. The board shall not require a center or program to
test used oil received from the public as part of these procedures.
(2) The shipment contains not more than five gallons or pounds of
contaminants combined, based on the contaminant concentrations and
the total volume or weight of the shipment.
(c) In any calendar year, a used oil collection center or curbside
collection program shall be reimbursed for not more than one
shipment and for not more than five thousand dollars ($5,000) in
disposal costs, subject to the availability of funds pursuant to
Section 48656.
SEC. 11. Section 48674 of the Public Resources Code is amended to
read:
48674. After receiving a block grant pursuant to paragraph (4) of
subdivision (a) of Section 48653, each local government shall submit
an annual report to the board, on or before the date specified by
the board, which includes any amendments to the local used oil
collection program adopted pursuant to Section 48690, a description
of all measures taken to implement the program, and a description of
how the block grant was expended.
SEC. 12. Section 48690 of the Public Resources Code is amended to
read:
48690. A local government is eligible for a block grant pursuant
to paragraph (4) of subdivision (a) of Section 48653, if it develops
and submits a local used oil collection program to the board pursuant
to Section 48691 and files a report pursuant to Section 48674. The
board shall make a grant to every local government which submits a
program and files a report unless the board finds that the program or
its implementation does not comply with criteria contained in this
article. The board may make a block grant to another entity that
will implement the program of a local government in lieu of making a
block grant to that local government with the concurrence of that
local government.
SEC. 13. Section 48695 of the Public Resources Code is amended to
read:
48695. (a) The board may, on or before July 1, 1995, establish a
pilot program for recycling used oil filters. Any pilot program
established pursuant to this section shall develop opportunities for
the public to voluntarily dispose of used oil filters and be eligible
for an incentive fee of four cents ($0.04) upon disposal.
(b) The board shall operate any pilot program established pursuant
to this section from July 1, 1995, until July 1, 1997. The board
shall, in conducting any pilot program established pursuant to this
section, solicit voluntary participation by certified used oil
collection centers and curbside collection programs, operate the
program in specific geographic areas selected by the board, and pay a
recycling incentive fee to every participating curbside collection
program or certified used oil collection center for used oil filters
collected from the public and transferred to a metal reclaimer for
the purpose of recycling.
(c) The board shall, on or before November 1, 1997, prepare a
report on the success or failure of any pilot program established
pursuant to this section and include recommendations for legislation,
if warranted, for a used oil filter recycling program. The board
shall make the report available to the Governor, the appropriate
policy and fiscal committees of the Legislature, and, upon request,
to Members of the Legislature.
(d) The board shall not expend more than one hundred twenty
thousand dollars ($120,000) annually during each year of the two-year
pilot program for purposes of conducting the program.
(e) If a statewide oil filter recycling program is enacted by the
Legislature prior to July 1, 1997, the board shall terminate the
pilot program and prepare the final report within six months of the
enactment of the oil filter recycling program.
SEC. 14. The Legislature hereby appropriates the sum of one
hundred thousand dollars ($100,000) to the California Integrated
Waste Management Board, for expenditure during the 1995-96 fiscal
year, from the California Used Oil Recycling Fund, for the purposes
of Section 48655 of the Public Resources Code.
SEC. 15. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.