AB 142: Lead-acid batteries.

The Lead-Acid Battery Recycling Act of 2016 prohibits a person from disposing, or attempting to dispose, of a lead-acid battery at a solid waste facility or on or in any land, surface waters, watercourses, or marine waters, but authorizes a person to dispose of a lead-acid battery at certain locations. The act requires, until March 31, 2022, a manufacturer battery fee of $1 to be imposed on a manufacturer of lead-acid batteries for each lead-acid battery it sells at retail to a person in California, or that it sells to a dealer, wholesaler, distributor, or other person for retail sale in California. The act requires the manufacturer battery fee to be paid to the California Department of Tax and Fee Administration and requires dealers and manufacturers of lead-acid batteries to register with the department. The act defines manufacturer for these purposes.

This bill would increase the amount of the manufacturer battery fee to $2 and would provide that the fee would continue indefinitely. The bill would authorize a person who manufactures a lead-acid battery and is not subject to the jurisdiction of the state to agree in writing with the importer, as defined, of that lead-acid battery to pay the manufacturer battery fee on behalf of the importer. The bill would exempt an importer who has an agreement of this type with a manufacturer, and who meets other specified requirements, from the requirement to register with the department. The bill would require the department, on or before January 1, 2020, to submit to the Legislature a report that includes, among other things, any regulations or policies adopted by the department for purposes of ensuring compliance with the registration, returns, reporting, payments, audits, refunds, or collection requirements related to the manufacturer battery fee.

The act requires manufacturer battery fees remitted pursuant to these provisions to be credited against amounts owed by the manufacturer to the state under a judgment or determination of liability under specific hazardous materials provisions or any other law for removal, remediation, or other response costs relating to a release of a hazardous substance from a lead-acid battery recycling facility.

This bill would additionally require that manufacturer battery fees remitted pursuant to these provisions be credited to the account of the manufacturer remitting those fees. The bill would require that a person who agrees in writing to pay the manufacturer battery fee on behalf of an importer be credited for a payment of the manufacturer battery fee only if certain conditions are met, including that the person provide to the purchaser of a lead-acid battery a statement that includes specified information on the invoice, contract, or other record documenting the transaction. The bill would relieve a purchaser of a lead-acid battery who receives that statement in a timely manner, and any subsequent purchaser of that battery, from liability for the manufacturer battery fee that would otherwise be imposed on the sale of that battery, provided that the manufacturer remits payment of the manufacturer battery fee to the state for the sale of that battery. The bill would authorize an importer who has paid the manufacturer battery fee and who receives an untimely statement that the fee has been paid for that battery to file a claim for a refund of any overpaid fees.

The bill would authorize the department to disclose the name, address, account number, and account status of a person registered with the department to pay the manufacturer battery fee. The bill would provide that account status does not include the amount of the manufacturer battery fee paid by any person.

The act requires a specified portion of moneys from the manufacturer battery fee to be deposited into the Lead-Acid Battery Cleanup Fund and provides that moneys in the fund are available upon appropriation by the Legislature to the Department of Toxic Substances Control for specified activities, including the repayment of specified loans.

This bill would authorize expenditure of moneys from the Lead-Acid Battery Cleanup Fund for the repayment of those loans only after the other specified activities have been fully funded.

The act imposes a California battery fee on a person for specified types of replacement lead-acid batteries purchased from a dealer.

This bill would provide, if a new motor vehicle dealer sells or leases to a person a used vehicle into which the new motor vehicle dealer has incorporated a replacement lead-acid battery, that the California battery fee does not apply to the person with regard to that replacement lead-acid battery.

This bill would declare that it is to take effect immediately as an urgency statute.