BILL NUMBER: AB 1022	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eggman

                        FEBRUARY 22, 2013

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1022, as introduced, Eggman. Electronic waste: CRT glass market
development payments.
   Existing law, the Electronic Waste Recycling Act of 2003, requires
a retailer selling a covered electronic device in this state to
collect a covered electronic waste recycling fee from the consumer,
as specified. These fees are deposited in the Electronic Waste
Recovery and Recycling Account, and the Department of Resources
Recycling and Recovery (CalRecycle) is continuously appropriated the
money in the account to, among other things, make electronic waste
recovery payments and recycling payments.
   This bill would require the department to make CRT glass, as
defined, market development payments to a manufacturer or an
electronic waste recycler who uses CRT glass to manufacture a product
in this state, pursuant to a specified claims procedure. The bill
would repeal on a unspecified date the requirement to make these
payments. The bill would additionally authorize the expenditure of
not more than $10,000,000 each year of the continuously appropriated
funds for the purpose of making those market development payments,
until that unspecified date.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 42463 of the Public Resources Code is amended
to read:
   42463.  For the purposes of this chapter, the following terms have
the following meanings, unless the context clearly requires
otherwise:
   (a) "Account" means the Electronic Waste Recovery and Recycling
Account created in the Integrated Waste Management Fund under Section
42476.
   (b) "Authorized collector" means any of the following:
   (1) A city, county, or district that collects covered electronic
devices.
   (2) A person or entity that is required or authorized by a city,
county, or district to collect covered electronic devices pursuant to
the terms of a contract, license, permit, or other written
authorization.
   (3) A nonprofit organization that collects or accepts covered
electronic devices.
   (4) A manufacturer or agent of the manufacturer that collects,
consolidates, and transports covered electronic devices for recycling
from consumers, businesses, institutions, and other generators.
   (5) An entity that collects, handles, consolidates, and transports
covered electronic devices and has filed applicable notifications
with the department pursuant to Chapter 23 (commencing with Section
66273.1) of Division 4.5 of Title 22 of the California Code of
Regulations.
   (c) "Consumer" means a person who purchases a new or refurbished
covered electronic device in a transaction that is a retail sale or
in a transaction to which a use tax applies pursuant to Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code. 
   (d) "CRT glass" means glass released or derived from the treatment
or breakage of a cathode ray tube that is from or part of a covered
electronic device.  
   (d) 
    (e)  Notwithstanding Section 40118, "department" means
the Department of Toxic Substances Control. 
   (e) 
    (f)  (1) Except as provided in paragraph (2), "covered
electronic device" means a video display device containing a screen
greater than four inches, measured diagonally, that is identified in
the regulations adopted by the department pursuant to subdivision (b)
of Section 25214.10.1 of the Health and Safety Code.
   (2) "Covered electronic device" does not include any of the
following:
   (A) A video display device that is a part of a motor vehicle, as
defined in Section 415 of the Vehicle Code, or any component part of
a motor vehicle assembled by, or for, a vehicle manufacturer or
franchised dealer, including replacement parts for use in a motor
vehicle.
   (B) A video display device that is contained within, or a part of
a piece of industrial, commercial, or medical equipment, including
monitoring or control equipment.
   (C) A video display device that is contained within a clothes
washer, clothes dryer, refrigerator, refrigerator and freezer,
microwave oven, conventional oven or range, dishwasher, room
air-conditioner, dehumidifier, or air purifier.
   (D) An electronic device, on and after the date that it ceases to
be a covered electronic device under subdivision (e) of Section
25214.10.1 of the Health and Safety Code. 
   (f) 
    (g)  "Covered electronic waste" or "covered e-waste"
means a covered electronic device that is discarded. 
   (g) 
    (h)  "Covered electronic waste recycling fee" or
"covered e-waste recycling fee" means the fee imposed pursuant to
Article 3 (commencing with Section 42464). 
   (h)
    (   i)  "Covered electronic waste recycler" or
"covered e-waste recycler" means any of the following:
   (1) A person who engages in the manual or mechanical separation of
covered electronic devices to recover components and commodities
contained therein for the purpose of reuse or recycling.
   (2) A person who changes the physical or chemical composition of a
covered electronic device, in accordance with the requirements of
Chapter 6.5 (commencing with Section 25100) of Division 20 of the
Health and Safety Code and the regulations adopted pursuant to that
chapter, by deconstructing, size reduction, crushing, cutting,
sawing, compacting, shredding, or refining for purposes of
segregating components, for purposes of recovering or recycling those
components, and who arranges for the transport of those components
to an end user.
   (3) A manufacturer who meets any conditions established by this
chapter and Chapter 6.5 (commencing with Section 25100) of Division
20 of the Health and Safety Code for the collection or recycling of
covered electronic waste. 
   (i) 
    (j)  "Discarded" has the same meaning as defined in
subdivision (b) of Section 25124 of the Health and Safety Code.

   (j) 
    (k)  "Electronic waste recovery payment" means an amount
established and paid by the Department of Resources Recycling and
Recovery pursuant to Section 42477. 
   (k) 
    (l)  "Electronic waste recycling payment" means an
amount established and paid by the Department of Resources Recycling
and Recovery pursuant to Section 42478. 
   (l) 
    (m)  "Hazardous material" has the same meaning as
defined in Section 25501 of the Health and Safety Code. 
   (m) 
    (n)  "Manufacturer" means either of the following:
   (1) A person who manufactures a covered electronic device sold in
this state.
   (2) A person who sells a covered electronic device in this state
under that person's brand name. 
   (n) 
    (o)  "Person" means an individual, trust firm, joint
stock company, business concern, and corporation, including, but not
limited to, a government corporation, partnership, limited liability
company, and association. Notwithstanding Section 40170, "person"
also includes a city, county, city and county, district, commission,
the state or a department, agency, or political subdivision thereof,
an interstate body, and the United States and its agencies and
instrumentalities to the extent permitted by law. 
   (o) 
    (p)  "Recycling" has the same meaning as defined in
subdivision (a) of Section 25121.1 of the Health and Safety Code.

   (p) 
    (q)  "Refurbished," when used to describe a covered
electronic device, means a device that the manufacturer has tested
and returned to a condition that meets factory specifications for the
device, has repackaged, and has labeled as refurbished. 
   (q) 
    (r)  "Retailer" means a person who makes a retail sale
of a new or refurbished covered electronic device. "Retailer"
includes a manufacturer of a covered electronic device who sells that
covered electronic device directly to a consumer through any means,
including, but not limited to, a transaction conducted through a
sales outlet, catalog, or the Internet, or any other similar
electronic means. 
   (r) 
    (s)  (1) "Retail sale" has the same meaning as defined
under Section 6007 of the Revenue and Taxation Code.
   (2) "Retail sale" does not include the sale of a covered
electronic device that is temporarily stored or used in California
for the sole purpose of preparing the covered electronic device for
use thereafter solely outside the state, and that is subsequently
transported outside the state and thereafter used solely outside the
state. 
   (s) 
    (t)  "Vendor" means a person that makes a sale of a
covered electronic device for the purpose of resale to a retailer who
is the lessor of the covered electronic device to a consumer under a
lease that is a continuing sale and purchase pursuant to Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code. 
   (t) 
    (u)  "Video display device" means an electronic device
with an output surface that displays, or is capable of displaying,
moving graphical images or a visual representation of image sequences
or pictures, showing a number of quickly changing images on a screen
in fast succession to create the illusion of motion, including, if
applicable, a device that is an integral part of the display, in that
it cannot be easily removed from the display by the consumer, that
produces the moving image on the screen. A video display device may
use, but is not limited to, a cathode ray tube (CRT), liquid crystal
display (LCD), gas plasma, digital light processing, or other image
projection technology.
  SEC. 2.  Section 42476 of the Public Resources Code is amended to
read:
   42476.  (a) The Electronic Waste Recovery and Recycling Account is
hereby established in the Integrated Waste Management Fund. All fees
collected pursuant to this chapter shall be deposited in the
account. Notwithstanding Section 13340 of the Government Code, the
funds in the account are hereby continuously appropriated, without
regard to fiscal year, for the following purposes:
   (1) To pay refunds of the covered electronic waste recycling fee
imposed under Section 42464.
   (2) To make electronic waste recovery payments to an authorized
collector of covered electronic waste pursuant to Section 42479.
   (3) To make electronic waste recycling payments to covered
electronic waste recyclers pursuant to Section 42479.
   (4) To make payments to manufacturers pursuant to subdivision (h).

   (5) To make market development payments for CRT glass pursuant to
Section 42479.5, in an amount of no more than ten million dollars
($10,000,000) each year, until January 1, ____. 
   (b) (1) The money in the account may be expended for the following
purposes only upon appropriation by the Legislature in the annual
Budget Act:
   (A) For the administration of this chapter by the Department of
Resources Recycling and Recovery and the department.
   (B) To reimburse the State Board of Equalization for its
administrative costs of registering, collecting, making refunds, and
auditing retailers and consumers in connection with the covered
electronic waste recycling fee imposed under Section 42464.
   (C) To provide funding to the department to implement and enforce
Chapter 6.5 (commencing with Section 25100) of Division 20 of the
Health and Safety Code, as that chapter relates to covered electronic
devices, and any regulations adopted by the department pursuant to
that chapter.
   (D) To establish the public information program specified in
subdivision (d).
   (2) Any fines or penalties collected pursuant to this chapter
shall be deposited in the Electronic Waste Penalty Subaccount, which
is hereby established in the account. The funds in the Electronic
Waste Penalty Subaccount may be expended by the Department of
Resources Recycling and Recovery or the department only upon
appropriation by the Legislature.
   (c) Notwithstanding Section 16475 of the Government Code, any
interest earned upon funds in the Electronic Waste Recovery and
Recycling Account shall be deposited in that account for expenditure
pursuant to this chapter.
   (d) Not more than 1 percent of the funds annually deposited in the
Electronic Waste Recovery and Recycling Account shall be expended
for the purposes of establishing the public information program to
educate the public in the hazards of improper covered electronic
device storage and disposal and on the opportunities to recycle
covered electronic devices.
   (e) The Department of Resources Recycling and Recovery shall adopt
regulations specifying cancellation methods for the recovery,
processing, or recycling of covered electronic waste.
   (f) The Department of Resources Recycling and Recovery may pay an
electronic waste recycling payment or electronic waste recovery
payment only for covered electronic waste that meets all of the
following conditions:
   (1) (A) The covered electronic waste is demonstrated to have been
generated by a person who used the covered electronic device while
located in this state.
   (B) Covered electronic waste generated outside of the state and
subsequently brought into the state is not eligible for payment.
   (C) The Department of Resources Recycling and Recovery shall
establish documentation requirements for purposes of this paragraph
that are necessary to demonstrate that the covered electronic waste
was generated in the state and eligible for payment.
   (2) The covered electronic waste, including any residuals from the
processing of the waste, is handled in compliance with all
applicable statutes and regulations.
   (3) The manufacturer or the authorized collector or recycler of
the electronic waste provides a cost-free and convenient opportunity
to recycle electronic waste, in accordance with the legislative
intent specified in subdivision (b) of Section 42461.
   (4) If the covered electronic waste is processed, the covered
electronic waste is processed in this state according to the
cancellation method authorized by the Department of Resources
Recycling and Recovery.
   (g) The Legislature hereby declares that the state is a market
participant in the business of the recycling of covered electronic
waste for all of the following reasons:
   (1) The fee is collected from the state's consumers for covered
electronic devices sold for use in the state.
   (2) The purpose of the fee and subsequent payments is to prevent
damage to the public health and the environment from waste generated
in the state.
   (3) The recycling system funded by the fee ensures that
economically viable and sustainable markets are developed and
supported for recovered materials and components in order to conserve
resources and maximize business and employment opportunities within
the state.
   (h) (1) The Department of Resources Recycling and Recovery may
make a payment to a manufacturer that takes back a covered electronic
device from a consumer in this state for purposes of recycling the
device at a processing facility. The amount of the payment made by
the Department of Resources Recycling and Recovery shall equal the
value of the covered electronic waste recycling fee paid for that
device. To qualify for a payment pursuant to this subdivision, the
manufacturer shall demonstrate both of the following to the
Department of Resources Recycling and Recovery:
   (A) The covered electronic device for which payment is claimed was
used in this state.
   (B) The covered electronic waste for which a payment is claimed,
including any residuals from the processing of the waste, has been,
and will be, handled in compliance with all applicable statutes and
regulations.
   (2) A covered electronic device for which a payment is made under
this subdivision is not eligible for an electronic waste recovery
payment or an electronic waste recycling payment under Section 42479.

  SEC. 3.  Section 42479.5 is added to the Public Resources Code, to
read:
   42479.5.  (a) The department shall make CRT glass market
development payments to a manufacturer or an electronic waste
recycler who uses CRT glass to manufacture a product in this state.
   (b) (1) The manufacturer or electronic waste recycler that seeks a
market development payment shall submit a CRT glass development
payment claim to the department for each calendar quarter in which
the payment is being claimed, in the form and manner that the
department may prescribe.
   (2) The department may make a CRT glass market development payment
to a manufacturer or electronic waste recycler only if the
department determines both of the following:
   (A) The manufacturer or electronic waste recycler demonstrates to
the department that it is in compliance with all applicable laws.
   (B) The electronic waste recycler or a manufacturer will utilize
the CRT glass to manufacture a product in this state.
   (c)  This section shall remain in effect only until January 1,
____, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1,____, deletes or extends
that date.