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Business Taxes Law Guide—Revision 2024
Division 30. Waste Management
Part 3. State Programs
Chapter 8.5. Electronic Waste Recycling
Article 6. Financial Provisions²
Section 42476
42476. Electronic Waste and Recovery and Recycling Account. (a) (1)The Electronic Waste Recovery and Recycling Account is hereby established in the Integrated Waste Management Fund. All covered electronic waste recycling fees collected from sales of covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, shall be deposited into the Electronic Waste Recovery and Recycling Account. (2) Notwithstanding Section 13340 of the Government Code, the funds in the Electronic Waste Recovery and Recycling Account are hereby continuously appropriated, without regard to fiscal year, for the following purposes:
(A) To pay refunds of the covered electronic waste recycling fee imposed under Section 42464.
(B) To make electronic waste recovery payments to an authorized collector of covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(C) To make electronic waste recycling payments to covered electronic waste recyclers, for recycling covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(D) To make payments to manufacturers for covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, pursuant to subdivision (i).
(b) (1) The Covered Battery-Embedded Waste Recycling Fee Subaccount is hereby created in the Electronic Waste Recovery and Recycling Account. All covered battery-embedded waste recycling fees collected from sales of covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, shall be deposited into the Covered Battery-Embedded Waste Recycling Fee Subaccount.
(2) Notwithstanding Section 13340 of the Government Code, the funds in the Covered Battery-Embedded Waste Recycling Fee Subaccount are hereby continuously appropriated, without regard to fiscal year, for the following purposes:
(A) To pay refunds of the covered battery-embedded waste recycling fee imposed under Section 42464.
(B) To make electronic waste recovery payments to an authorized collector of covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(C) To make electronic waste recycling payments to covered electronic waste recyclers for recycling covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, pursuant to Section 42479.
(D) To make payments to manufacturers for covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, pursuant to subdivision (i).
(c) (1) The money in the Electronic Waste Recovery and Recycling 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 CalRecycle and DTSC, as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463.
(B) To reimburse CDTFA 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 DTSC to implement and enforce Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code, as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, as and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, including any regulations adopted by DTSC pursuant to that chapter, as that chapter relates to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463.
(D) To establish the public information program specified in subdivision (e), as it relates to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463.
(E) For expenditure pursuant to paragraph (2) of subdivision (a) of, and paragraph (2) of subdivision (b) of, Section 17001.
(2) The money in the Covered Battery-Embedded Waste Recycling Fee Subaccount may be expended solely for the following purposes only upon appropriation by the Legislature in the annual Budget Act:
(A) For the administration of this chapter by CalRecycle and DTSC, as related to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463 and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(B) To reimburse CDTFA for its administrative costs of registering, collecting, making refunds, and auditing retailers and consumers in connection with the covered battery-embedded waste recycling fee imposed under Section 42464.
(C) To provide funding to DTSC to implement and enforce Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code, as it relates to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, and as it relates to covered electronic waste resulting from discarded covered electronic devices, defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, including any regulations adopted by DTSC pursuant to that chapter, as that chapter relates to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463 and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(D) To establish the public information program specified in subdivision (e), as it relates to covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463, and as it relates to covered electronic waste resulting from covered electronic devices, as defined in subparagraph (B) of paragraph (1) of subdivision (g) of Section 42463.
(3) 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 CalRecycle or DTSC only upon appropriation by the Legislature.
(d) 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.
(e) Not more than 2 percent of the funds annually deposited in the Electronic Waste Recovery and Recycling Account and not more than 2 percent of the funds annually deposited in the Covered Battery-Embedded Waste Recycling Fee Subaccount shall be expended for 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.
(f) CalRecycle shall adopt regulations specifying cancellation methods for the recovery, processing, or recycling of covered electronic waste.
(g) CalRecycle 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) CalRecycle 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 CalRecycle.
(h) 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 covered electronic waste recycling fee or the covered battery-embedded waste recycling fee, as applicable, are collected from the state’s consumers for covered electronic devices sold for use in the state.
(2) The purpose of the covered electronic waste recycling fee and the covered battery-embedded waste recycling 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 covered electronic waste recycling fee and the covered battery-embedded waste recycling 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.
(i) (1) CalRecycle 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 CalRecycle shall equal the value of the covered electronic waste recycling fee or the covered battery-embedded waste recycling fee, as applicable, paid for that device. To qualify for a payment pursuant to this subdivision, the manufacturer shall demonstrate both of the following to CalRecycle: (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.
History—Amended by Stats. 2004, Ch. 863 (SB 50), in effect September 29, 2004. Stats. 2012, Ch. 523 (AB 549), in effect January 1, 2013, deleted "and" after "The Electronic Waste" in subdivision (a), substituted "(h)" for "(g)" in paragraph (4) of subdivision (a), substituted "Department of Resources Recycling and Recovery" for "board" throughout the section, added "the" before "department only upon appropriation" in second sentence of paragraph (2) of subdivision (b), added "only" after "electronic waste recovery payment," substituted "that meets" for "only if", and deleted "are met" in subdivision (f), added paragraphs (1) (A), (1) (B), and (1) (C) to subdivision (f), renumbered former paragraphs (1), (2), (3) as (2), (3), and (4) in subdivision (f), relettered former paragraph (f) (4) as subdivision (g), renumbered paragraphs (A), (B), and (C) as (1), (2), and (3) in subdivision (g), and relettered former subdivision (g) as (h). Stats. 2014, Ch. 35 (SB 861), in effect June 20, 2014, added subparagraph (E) to paragraph (1) of subdivision (b). Stats. 2022, Ch. 370 (SB 1215), in effect January 1, 2023, deleted second sentence of subdivision (a), which read, "All fees collected pursuant to this chapter shall be deposited in the account.", added new second and third sentence to subdivision (a); numbered former third sentence of subdivision (a) as paragraph (a) (1); substituted "Covered Electronic Waste Recycling Fee Subaccount" for "account" before "are hereby" in renumbered paragraph (a) (1); relettered former paragraphs (1), (2), (3), (4) of subdivision (a) as subparagraphs (A), (B), (C), and (D) respectively; added ", resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463" after "waste" in new subparagraph (a) (1) (B), substituted "recyclers, for recycling covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463," for "recyclers" after "waste" in relettered subparagraph (a) (1) (C); added "for covered electronic waste, resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463," after "manufacturers" in relettered subparagraph (a) (1) (D); added new paragraph (2) to subdivision (a); substituted "Covered Electronic Waste Recycling Fee Subaccount" for "account" before "may be" in paragraph (1), substituted "CalRecycle" for "the Department of Resources Recycling and Recovery" after "chapter by", substituted "DTSC" for "the department" after "and", and added ", as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and covered electronic waste resulting from discarded covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463" before the period in subparagraph (b) (1) (A); substituted "CDTFA" for "State Board of Equalization" after "reimburse" in subparagraph (b) (1) (B); substituted "DTSC" for "the department" after "funding to", added "as related to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, as and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, including and regulations adopted by DTSC pursuant to that chapter" after "Code", deleted "devices, and any regulations adopted by the department pursuant to that chapter." after "electronic", and added "devices. As defined in subparagraph (A) of paragraph (1) of Section 42463, and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463." after "electronic" in subparagraph (b) (1) (C); deleted "(d)." and added "(d), as it relates to covered electronic devices, as defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463, and as related to covered electronic waste, resulting from discarded covered electronic devices, defined in subparagraph (A) of paragraph (1) of subdivision (g) of Section 42463" after "subdivision" in subparagraph (b)(1) (D); renumbered former paragraph (2) as (3) and added new paragraph (2) to subdivision (b); substituted "CalRecycle " for "the Department of Resources Recycling and Recovery" after "expended by", and substituted "DTSC" for "the department" after "or" in renumbered paragraph (3); substituted "2" for "1" before "percent", substituted "Covered Electronic Waste Recovery and Recycling Fee Subaccount" for "Covered Electronic Waste Recovery and Recycling Account", added "and not more than 2 percent of the funds annually deposited in the Covered Battery-Embedded Waste Recycling Fee Subaccount" before "shall be", and deleted "the" before "purposes" in subdivision (d); substituted "CalRecycle" for "The Department of Resources Recycling and Recovery" in subdivision (e); substituted "CalRecycle" for "The Department of Resources Recycling and Recovery" or "the Department of Resources Recycling and Recovery" throughout subdivision (f); substituted "covered electronic waste recycling fee or the covered battery-embedded waste recycling fee, as applicable, are" for " fee is" before "collected" paragraph (g) (1); substituted "covered electronic waste recycling fee and the covered battery-embedded waste recycling fee and subsequent payments" for "fee and subsequent payments" in paragraph (g) (2); added "covered electronic waste recycling fee and the covered battery-embedded waste recycling" before "fee" in paragraph (g)(3); substituted "CalRecycle" for "The Department of Resources Recycling and Recovery" or "the Department of Resources Recycling and Recovery" throughout and added "or the covered battery-embedded waste recycling fee, as applicable," after "fee" in paragraph (h) (1). Stats. 2023, Ch. 131 (AB 1754), in effect January 1, 2024, substituted "42463," for "42463" after "Section" in subparagraph (B) of paragraph (1) in subdivision (a). Stats. 2024, Ch. 72 (SB 156), in effect July 2, 2024, redesignated the first paragraph of subdivision (a) as paragraph (a) (1) and redesignated former paragraph (a) (1) as new paragraph (a) (2); deleted second sentence of former subdivision (a); substituted "Electronic Waste Recovery and Recycling Account" for "Covered Electronic Waste Recycling Fee Subaccount" throughout; deleted fourth sentence of former subdivision (a); substituted (i) for (h) in subparagraph (a) (2) (D); added subdivision (b) (1); redesignated former paragraph (a) (2) as paragraph (b) (2); redesignated former subdivisions (b) - (h) as (c) - (i); substituted "(e)" for "(d)" after "in subdivision" in subparagraphs (1) (D) and (2) (D) in new subdivision (c).