AN ACT Relating to recycling; adding a new chapter to Title 70 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that:

(1) Scrap steel recycling of automobiles, buses, and trucks should be encouraged in this state.

(2) The current scrap steel recycling industry annually retires and processes one hundred forty-five thousand vehicles. The processing of these bulk steel items includes substantially reducing their size. The vehicles typically include built-in components which create environmental problems during reprocessing or recycling. While manufacturers and consumers are exempt from environmental liability associated with the landfilling or recycling of these consumer products, the scrap steel recycling industry is exposed to liability during recycling of these products, and this liability threatens to make scrap steel recycling economically unfeasible.

(3) There is an imperative need to anticipate, plan for, and accomplish effective recycling of scrap metal with the subsequent conservation of resources and energy in this state.

(4) The scrap metal recycling industry in this state provides important societal and economic benefits to the residents of this state.

NEW SECTION. Sec. 2. As used in this chapter, unless the context indicate otherwise:

(1) "Department" means the department of ecology.

(2) "Director" means the director of the department of ecology.

(3) "Recycling" means the physical handling and processing of vehicles so that their metal may be used, reused, or reclaimed. Recycling includes the use of metal shredding equipment; it does not include the disposal of vehicles in landfills.

(4) "Retail vehicle dealers" means a vehicle dealer who makes retail sales of vehicles to the public.

(5) "Scrap metal recyclers" means those businesses domiciled in Washington that recycle and process by shredding in excess of ten thousand autos, trucks, or buses annually.

(6) "Vehicles" means autos, trucks, and buses sold by retail vehicle dealers in this state to an individual or business domiciled in this state.

NEW SECTION. Sec. 3. (1) Beginning June 1, 1989, a twenty dollar fee is imposed upon the retail sale of each new vehicle sold in this state. The twenty dollar fee must be collected by retail vehicle dealers at the time of the sale to the ultimate consumer.

(2) The twenty dollar fee received for each vehicle sold by a retail dealer shall be remitted on a semiannual basis and shall accompany the annual license fees paid pursuant to RCW 46.70.061.

(3) Any interest earned between annual payments may be kept by the retail vehicle dealer.

(4) With each annual license fee, the retail vehicle dealer shall submit a return to the department which states the number of new vehicles sold during the preceding year.

(5) The returns required of the retail vehicle dealers under this section shall be filed by all retail vehicle dealers regardless of whether any fee is owed by them. The department shall prescribe the form and contents of the return.

NEW SECTION. Sec. 4. (1) It shall be a violation of this chapter to:

(a) Fail to file a return as required by this chapter;

(b) Fail to pay the collected fee at the time it is due;

(d) Defraud or attempt to defraud the state of any fees collected or required to be collected in connection with the sale of a new vehicle.

(2) The department may suspend or revoke the retail vehicle dealer's license or may assess a monetary penalty as provided for in RCW 46.70.101, 46.70.102, and 46.70.111, if any retail vehicle dealer fails to comply with any provision of this chapter.

NEW SECTION. Sec. 5. There is hereby created an account within the general fund to be known as the "scrap metal recycling account." All fees, fines, and other funds collected or received under this chapter shall be deposited in the scrap metal recycling account and used for the administration and implementation of this chapter.

NEW SECTION. Sec. 6. The funds in the scrap metal recycling account are to be appropriated to the department of ecology to be used as follows:

(1) Ten percent of the funds may be used for the administration of this chapter.

(2) Twenty percent of the funds may be used by the department for its solid waste recycling programs consistent with the purposes of the laws governing solid waste.

(3)(a) The remainder of the funds shall be available to encourage businesses to continue to engage in scrap metal recycling in this state. To achieve this purpose, the department shall distribute the remainder of the funds in the scrap metal recycling account on an annual basis to qualified scrap metal recyclers for environmental expenditures, including:

(i) Recycling or destruction of hazardous components derived from past recycling of vehicles;

(ii) Capital improvements to assure environmentally sound recycling of scrap metal in the future;

(iii) Research and development to carry out the goal of environmentally sound scrap steel recycling; and

(iv) Studies on transportation, collection, reduction and separation of the scrap steel and potentially hazardous components of motor vehicles.

(b) The amounts made available to scrap metal recyclers each fiscal year shall be apportioned among the qualified applicants by the director or the director's designee. No single applicant may request more than one-half of the available funds per year.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act shall constitute a new chapter in Title 70 RCW.