H-2193

AN ACT Relating to recycling; amending RCW 70.93.020, 70.93.030, 82.18.100, 70.93.130, 70.93.150, 70.93.180, 70.95.030, 70.95C.120, 43.31.545, and 70.95.040; adding new sections to chapter 70.93 RCW; adding new sections to chapter 43.131 RCW; adding a new section to chapter 70.94 RCW; adding a new section to chapter 70.105 RCW; adding new sections to chapter 82.04 RCW; adding new chapters to Title 70 RCW; creating a new section; recodifying RCW 19.114.040; repealing RCW 43.31.552, 43.31.554, 43.31.556, 19.114.010, 19.114.020, 19.114.030, and 19.114.900; prescribing penalties; making appropriations; and declaring an emergency.

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

PART I

PACKAGING

Sec. 101. RCW 70.93.020 and 1979 c 94 s 2 are each amended to read as follows:

The purpose of this chapter is to accomplish litter control and stimulate public and private recycling programs throughout this state by delegating to the department of ecology the authority to:

(1) Conduct a permanent and continuous program to control and remove litter from this state to the maximum practical extent possible; (2) Recover and recycle waste materials related to litter and littering;

(3) Foster private recycling and markets for recyclable materials; and

(4) Increase public awareness of the need for recycling and litter control. It is further the intent and purpose of this chapter to create jobs for employment of youth in litter cleanup and related activities and to stimulate and encourage small, private recycling centers. This program shall include the compatible goal of recovery of recyclable materials to conserve energy and natural resources wherever practicable. Every other department of state government and all local governmental units and agencies of this state shall cooperate with the department of ecology in the administration and enforcement of this chapter. The intent of this chapter is to add to and to coordinate existing recycling and litter control and removal efforts and not terminate or supplant such efforts.

Sec. 102. RCW 70.93.030 and 1979 c 94 s 3 are each amended to read as follows:

As used in this chapter unless the context indicates otherwise:

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

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

(3) "Disposable package or container" means all packages or containers defined as such by rules and regulations adopted by the department of ecology;

(4) "Litter" means all waste material including but not limited to disposable packages or containers thrown or deposited as herein prohibited but not including the wastes of the primary processes of mining, logging, sawmilling, farming, or manufacturing;

(5) "Litter bag" means a bag, sack, or other container made of any material which is large enough to serve as a receptacle for litter inside the vehicle or watercraft of any person. It is not necessarily limited to the state approved litter bag but must be similar in size and capacity;

(6) "Litter receptacle" means those containers adopted by the department of ecology and which may be standardized as to size, shape, capacity, and color and which shall bear the state anti-litter symbol, as well as any other receptacles suitable for the depositing of litter;

(7) "Person" means any political subdivision, government agency, municipality, industry, public or private corporation, copartnership, association, firm, individual, or other entity whatsoever;

(8) "Recycling" means ((~~the process of separating, cleansing, treating, and reconstituting used or discarded litter-related materials for the purpose of recovering and reusing the resources contained therein~~)) transforming or remanufacturing waste materials into a finished product for use other than landfill disposal or incineration;

(9) "Recycling center" means a central collection point for recyclable materials;

(10) "Vehicle" includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks;

(11) "Watercraft" means any boat, ship, vessel, barge, or other floating craft;

(12) "Public place" means any area that is used or held out for use by the public whether owned or operated by public or private interests.

NEW SECTION. Sec. 103. A new section is added to chapter 70.93 RCW to read as follows:

(1) In addition to the assessment imposed in RCW 70.93.120, there is hereby levied and there shall be collected by the department of revenue from every person engaging within this state in business as a manufacturer, making sales at wholesale, or making sales at retail an annual recycling assessment. The assessment shall be based on all sales of tangible personal property. The total amount of all assessments shall be equal to an amount that would result if retailers paid such assessment at a rate of fifty dollars per million dollars of sales.

(2) The department of revenue, in consultation with the department of ecology, shall develop a formula for adjusting the rates paid by manufacturers, wholesalers, and retailers so that the assessment rates reflect the difference in value of goods sold by each sector.

(3) This section expires July 1, 1993.

Sec. 104. RCW 82.18.100 and 1989 c 431 s 80 are each amended to read as follows:

(1) There is imposed on each person using the services of a solid waste collection business a solid waste collection tax of one and four-tenths percent of the consideration charged for the services. This tax shall be applied only to a service charge for actual solid waste collection services that are provided. For residential collection service only, the tax shall apply to the lesser of the consideration charged for the services or:

(a) For customers with less than two-can service, the first eight dollars of the monthly charge for the services.

(b) For customers with two-can service or more, the first twelve dollars of the monthly charge for the services.

(2) Money collected under this section shall be held in trust until paid to the state. ((~~Money received by the state~~)) Funds accruing from the portion of the tax imposed at a rate of one percent of the cost of service shall be deposited in the solid waste management account created by RCW 70.95.800. Funds accruing from the portion of the tax imposed at a rate of four-tenths of one percent of the cost of service shall be deposited in the clean Washington account created by section 108 of this 1991 act.

(3) This section expires July 1, 1993.

Sec. 105. RCW 70.93.130 and 1971 ex.s. c 307 s 13 are each amended to read as follows:

Because it is the express purpose of this chapter to accomplish effective litter control within the state of Washington and because it is a further purpose of this chapter to allocate a portion of the cost of administering it to those industries whose products including the packages, wrappings, and containers thereof, are reasonably related to the litter problem, in arriving at the amount upon which the assessment under RCW 70.93.120 is to be calculated only the value of products or the gross proceeds of sales of products falling into the following categories shall be included:

(1) Food for human or pet consumption.

(2) Groceries.

(3) Cigarettes and tobacco products.

(4) Soft drinks and carbonated waters.

(5) Beer and other malt beverages.

(6) Wine.

(7) Newspapers and magazines.

(8) Household paper and paper products.

(9) Glass containers.

(10) Metal containers.

(11) Plastic or fiber containers made of synthetic material.

(12) Cleaning agents and toiletries.

(13) Nondrug drugstore sundry products.

Sec. 106. RCW 70.93.150 and 1971 ex.s. c 307 s 15 are each amended to read as follows:

"Sold within this state" or "sales of the business within this state" as used in RCW 70.93.120 and in section 103 of this 1991 act shall mean all sales of retailers engaged in business within this state and all sales of products for use or consumption within this state in the case of manufacturers and wholesalers.

Sec. 107. RCW 70.93.180 and 1985 c 57 s 68 are each amended to read as follows:

There is hereby created an account within the state treasury to be known as the "litter control account". All assessments, fines, bail forfeitures, and other funds collected or received pursuant to ((~~this chapter~~)) RCW 70.93.120 and 70.93.230 shall be deposited in the litter control account and used for the administration and implementation of this chapter except as required to be otherwise distributed under RCW 70.93.070. All earnings of investments of balances in the litter control account shall be credited to the general fund.

NEW SECTION. Sec. 108. A new section is added to chapter 70.93 RCW to read as follows:

There is hereby created an account within the state treasury to be known as the clean Washington account. All assessments, and other funds collected or received pursuant to sections 103, 113, and 204 of this act, and RCW 82.18.080 and subject to appropriation, shall be deposited in the clean Washington account and used for the administration and implementation of the clean Washington center as established under section 203 of this act.

Sec. 109. RCW 70.95.030 and 1989 c 431 s 2 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise:

(1) "City" means every incorporated city and town.

(2) "Commission" means the utilities and transportation commission.

(3) "Committee" means the state solid waste advisory committee.

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

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

(6) "Disposal site" means the location where any final treatment, utilization, processing, or deposit of solid waste occurs.

(7) "Energy recovery" means a process operating under federal and state environmental laws and regulations for converting solid waste into usable energy and for reducing the volume of solid waste.

(8) "Functional standards" means criteria for solid waste handling expressed in terms of expected performance or solid waste handling functions.

(9) "Incineration" means a process of reducing the volume of solid waste operating under federal and state environmental laws and regulations by use of an enclosed device using controlled flame combustion.

(10) "Jurisdictional health department" means city, county, city-county, or district public health department.

(11) "Landfill" means a disposal facility or part of a facility at which solid waste is placed in or on land and which is not a land treatment facility.

(12) "Local government" means a city, town, or county.

(13) "Person" means individual, firm, association, copartnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever.

(14) "Postconsumer recovered material" means those products or feedstocks that have served their intended end uses and that have been diverted from the solid waste stream for the purpose of recycling. Postconsumer recovered material does not mean mill broke that is returned to the production line without leaving the possession of the producer.

(15) "Recyclable materials" means those solid wastes that are separated for recycling or reuse, such as papers, metals, and glass, that are identified as recyclable material pursuant to a local comprehensive solid waste plan. Prior to the adoption of the local comprehensive solid waste plan, adopted pursuant to RCW 70.95.110(2), local governments may identify recyclable materials by ordinance from July 23, 1989.

((~~(15)~~)) (16) "Recycled content level" means the ratio obtained by dividing the weight of postconsumer recovered material contained in a product or package by the total weight of the product or package.

(17) "Recycling" means transforming or remanufacturing waste materials into usable or marketable materials for use other than landfill disposal or incineration.

((~~(16)~~)) (18) "Recycling level" means the recycling rate for those commodities identified in the solid waste stream analysis and evaluation authorized under RCW 70.95.280.

(19) "Solid waste" or "wastes" means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, demolition and construction wastes, abandoned vehicles or parts thereof, and recyclable materials.

((~~(17)~~)) (20) "Solid waste handling" means the management, storage, collection, transportation, treatment, utilization, processing, and final disposal of solid wastes, including the recovery and recycling of materials from solid wastes, the recovery of energy resources from solid wastes or the conversion of the energy in solid wastes to more useful forms or combinations thereof.

((~~(18)~~)) (21) "Source separation" means the separation of different kinds of solid waste at the place where the waste originates.

((~~(19)~~)) (22) "Vehicle" includes every device physically capable of being moved upon a public or private highway, road, street, or watercourse and in, upon, or by which any person or property is or may be transported or drawn upon a public or private highway, road, street, or watercourse, except devices moved by human or animal power or used exclusively upon stationary rails or tracks.

((~~(20)~~)) (23) "Waste reduction" means reducing the amount or toxicity of waste generated or reusing materials.

NEW SECTION. Sec. 110. The legislature finds that the most intensive waste reduction strategies can only be implemented by manufacturers through redesign of products and packages. The legislature also finds that a significant part of the responsibility for collection and disposal of products and packaging should be borne by the manufacturers of such products and packages. It is the intent of the legislature that all products requiring disposal and all packaging materials used or sold within the state be recycled at a rate of fifty percent or more by July 1, 1995. It is further the intent of the legislature to impose a fee equal to fifty percent of the solid waste management costs upon all manufacturers of products and packages not being recycled at a rate of fifty percent or more within the state.

NEW SECTION. Sec. 111. The purpose of this chapter is to:

(1) Identify and explore the feasibility of the licensure of manufacturers of goods sold at retail establishments in the state and to recover from each manufacturer fifty percent of the cost of recovering postconsumer materials, or to identify an alternate fee system that assesses manufacturers for fifty percent of the cost of this service;

(2) Grant each manufacturer credit against fees due and payable for its activities helping to stimulate recycling and markets for recycled materials.

NEW SECTION. Sec. 112. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Closure" means a constituent of a package used to seal the package that, in order to function properly, must be made out of a material other than the body of the package.

(2) "Cost of collection and disposal" means the cost of collecting, processing, marketing, and disposing of materials in the solid waste stream, including system operating costs, and deducting revenue from the sale of materials.

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

(4) "Manufacturer" means a person, firm, or company responsible for making a product or selecting the primary packaging material in which a product is delivered to retail establishments.

(5) "Package" means a container providing a means of marketing, protecting, or handling a product and includes a unit package, an intermediate package, and a shipping container as defined in "Standard Terminology of Packaging and Distribution Environments" D996. "Package" also includes such unsealed receptacles as carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping films, bags, and tubs.

(6) "Packaging material" means residue remaining after the package has served its intended purpose.

(7) "Postconsumer recovered material" means only those products generated by a business or consumer that have served their intended end uses, and that can be diverted from the solid waste stream. "Postconsumer recovered material" includes broke recovered material, but does not include mill broke that is an in-plant production waste that is returned to the production line and does not leave the possession of the producer.

(8) "Primary package" means the package that has direct contact with the product.

(9) "Recycling survey" means the survey conducted by the department pursuant to RCW 70.95.280.

(10) "Require no operating subsidy" means that the marginal cost of diverting a postconsumer recovered material is equal to or less than the cost of disposal by landfill and incineration.

(11) "Retail establishment" means a product distribution center where products are sold for consumption or use.

(12) "Single use packaging" means a package used less than five times in the same or a similar distribution system.

(13) "Tare weight" means only the weight of the package and does not include the product.

(14) "Target recycling rate" means the recycling rate set in the state solid waste management plan.

(15) "Weighted cost of disposal by landfill and incineration" means the dollar value resulting from the following series of computations:

(a) The total number of tons disposed in the state by means of incineration, multiplied by the per ton cost of incineration; added to

(b) The total number of tons disposed in the state by means of landfilling, multiplied by the per ton cost of landfilling; and

(16) "Wholesaler" means a person, individual, or company who distributes goods to a retail establishment in this state.

NEW SECTION. Sec. 113. (1) The department shall determine the average cost of collection and disposal of postconsumer waste. Costs of disposing of toxic materials, those requiring special handling, or otherwise incurring extraordinary costs shall be evaluated separately.

(2) The department, in conjunction with the department of revenue, shall propose a method to recover, from manufacturers of products and packages sold at retail establishments in Washington state, fifty percent of the cost of collection and disposal of such materials. The method should not pose undue burdens on any sector. The legislature intends that the costs of system capitalization, operation, and maintenance be included in the fee.

(3) The following products and packages shall not be subject to a fee:

(a) Products and packaging that are recycled at a rate of fifty percent or more and require no operating subsidy; and

(b) Packages that are used five times or more in the same or a similar distribution system.

(4) The department shall report on the preferred method of cost recovery to the appropriate standing committees of the legislature January 1, 1992. The report shall present the method of cost recovery selected by the department, project the cost associated with the method, and identify a plan to implement it.

(5) The cost recovery system developed under this section shall become effective July 1, 1992, unless the legislature adopts another fee recovery system. The department shall adopt rules implementing the cost recovery system in subsection (4) of this section.

(6) The state preempts the field of imposing prohibitions on the sale or distribution of products and product packaging for the purpose of affecting the disposal of products or product packaging. The state has exclusive authority to impose such prohibitions or bans. No local or regional subdivision of the state may impose such a prohibition or ban on products or product packaging unless specifically granted such authority by the state legislature.

(7) Fees paid by manufacturers under this section shall be deposited in the clean Washington account created under section 108 of this act.

NEW SECTION. Sec. 114. (1) After July 1, 1992, manufacturers shall be eligible for credit against the fees due and payable under section 113 of this act for any of the following activities that stimulate development of markets for postconsumer materials, or increase the recyclability of postconsumer recovered materials:

(a) Contribution of funds to the clean Washington center created under section 203 of this act. For each dollar contribution made before implementation of the fee system, manufacturers shall receive a two dollar credit. For each dollar contributed after implementation of the fee system, a seven dollar credit shall be granted;

(b) Use of postconsumer recovered materials used in construction of products and packages sold or distributed in the state. For each ton of postconsumer material used in manufacture of goods sold in Washington state, a credit of one ton shall be added for the purposes of calculating the recycling rate of such materials;

(c) Constructing products and packages from materials with high recycling rates. For each ton of a material recycled, a credit of one ton shall be added for the purposes of calculating the recycling rate of such material.

(2)(a) All credits allowed under this section shall be given on a material-by-material basis.

(b) In no year may the credit under subsection (1)(a) of this section exceed fees due and payable by the manufacturer. If the monetary contribution made to the clean Washington center under subsection (1)(a) of this section exceeds fees due and payable by a manufacturer, the excess credit may be carried forward into subsequent years until it is depleted.

(c) In no year may the total amount of credits under subsection (1) (b) and (c) of this section exceed fifty percent of the fees due and payable by the manufacturer.

(d) In no year may the total amount of credits under subsection (1) of this section exceed the total of the fees due and payable by the manufacturer.

NEW SECTION. Sec. 115. Nothing in this chapter precludes a manufacturer or an association of manufacturers from voluntary efforts to establish systems to recover postconsumer recovered materials.

NEW SECTION. Sec. 116. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Container," unless otherwise specified, refers to "rigid plastic container" or "plastic bottle" as those terms are defined in this section.

(2) "Distributors" means those persons engaged in the distribution of packaged goods for sale in the state of Washington, including manufacturers, wholesalers, and retailers.

(3) "Label" means a molded, imprinted, or raised symbol on or near the bottom of a plastic container or bottle.

(4) "Person" means an individual, sole proprietor, partnership, association, or other legal entity.

(5) "Plastic" means a material made of polymeric organic compounds and additives that can be shaped by flow.

(6) "Plastic bottle" means a plastic container intended for single use that has a neck that is smaller than the body of the container, accepts a screw-type, snap cap, or other closure and has a capacity of sixteen fluid ounces or more, but less than five gallons.

(7) "Rigid plastic container" means a formed or molded container, other than a bottle, intended for single use, composed predominantly of plastic resin, and having a relatively inflexible finite shape or form with a capacity of eight ounces or more but less than five gallons.

NEW SECTION. Sec. 117. (1) The provisions of this section and any rules adopted under this section shall be interpreted to conform with nation-wide plastics industry standards.

(2) Except as provided in section 118(2) of this act, after January 1, 1992, no person may distribute, sell, or offer for sale in this state a plastic bottle or rigid plastic container unless the container is labeled with a code identifying the appropriate resin type used to produce the structure of the container. The code shall consist of a number placed within three triangulated arrows and letters placed below the triangle of arrows. The triangulated arrows shall be equilateral, formed by three arrows with the apex of each point of the triangle at the midpoint of each arrow, rounded with a short radius. The pointer (arrowhead) of each arrow shall be at the midpoint of each side of the triangle with a short gap separating the pointer from the base of the adjacent arrow. The triangle, formed by the three arrows curved at their midpoints shall depict a clockwise path around the code number. The numbers and letters used shall be as follows:

(a) 1. = PETE (polyethylene terephthalate)

(b) 2. = HDPE (high density polyethylene)

(d) 4. = LDPE (low density polyethylene)

(e) 5. = PP (polypropylene)

(f) 6. = PS (polystyrene)

(g) 7. = OTHER

NEW SECTION. Sec. 118. (1) A person who, after written notice from the department, violates section 117 of this act is subject to a civil penalty of fifty dollars for each violation up to a maximum of five hundred dollars and may be enjoined from continuing violations. Each distribution constitutes a separate offense.

(2) Distributors shall have two years from the effective date of this section to clear current inventory, delivered or received and held in their possession as of the effective date of this section.

NEW SECTION. Sec. 119. The legislature finds and declares that:

(1) The management of solid waste can pose a wide range of hazards to public health and safety and to the environment;

(2) Packaging comprises a significant percentage of the overall solid waste stream;

(3) The presence of heavy metals in packaging is a part of the total concern in light of their likely presence in emissions or ash when packaging is incinerated, or in leachate when packaging is landfilled;

(4) Lead, mercury, cadmium, and hexavalent chromium, on the basis of available scientific and medical evidence, are of particular concern;

(5) It is desirable as a first step in reducing the toxicity of packaging waste to eliminate the addition of these heavy metals to packaging; and

(6) The intent of this chapter is to achieve this reduction in toxicity without impeding or discouraging the expanded use of postconsumer materials in the production of packaging and its components.

NEW SECTION. Sec. 120. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Package" means a container providing a means of marketing, protecting, or handling a product and shall include a unit package, an intermediate package, and a shipping container. "Package" also means and includes unsealed receptacles such as carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping films, bags, and tubs.

(2) "Manufacturer" means a person, firm, or corporation that applies a package to a product for distribution or sale.

(3) "Packaging component" means an individual assembled part of a package such as, but not limited to, any interior or exterior blocking, bracing, cushioning, weatherproofing, exterior strapping, coatings, closures, inks, and labels.

NEW SECTION. Sec. 121. (1) By July 1, 1993, no package or packaging component may be offered for sale or for promotional purposes by its manufacturer or distributor in the state of Washington, that includes, in the package itself or in any packaging component, inks, dyes, pigments, adhesives, stabilizers, or any other additives, containing lead, cadmium, mercury, or hexavalent chromium in excess of the amounts allowed under subsection (3) of this section.

(2) By July 1, 1993, no product may be offered for sale or for promotional purposes by its manufacturer or distributor in the state of Washington in a package that includes, in the package itself or in any of its packaging components, inks, dyes, pigments, adhesives, stabilizers, or any other additives, containing any lead, cadmium, mercury, or hexavalent chromium in excess of the amount allowed under subsection (3) of this section.

(3) The sum of the concentration levels of lead, cadmium, mercury, and hexavalent chromium present in any product, package, or packaging component shall not exceed the following:

(a) 600 parts per million by weight effective two years after the effective date of this section;

(b) 250 parts per million by weight effective three years after the effective date of this section; and

This subsection shall apply to lead, cadmium, mercury, and hexavalent chromium that has been intentionally introduced as an element during manufacturing or distribution as opposed to the incidental presence of any of these elements.

NEW SECTION. Sec. 122. All packages and packaging components shall be subject to this chapter except the following:

(1) Those packages or package components with a code indicating date of manufacture that were manufactured prior to the effective date of this section;

(2) Those packages or packaging components that have been purchased by, delivered to, or are possessed by a retailer on or before twenty-four months following the effective date of this section to permit opportunity to clear existing inventory of the proscribed packaging material;

(3) Those packages or packaging components to which lead, cadmium, mercury, or hexavalent chromium have been added in the manufacturing, forming, printing, or distribution process in order to comply with health or safety requirements of federal law or for which there is no feasible alternative; or

(4) Packages and packaging components that would not exceed the maximum contaminant levels set forth in section 121(3) of this act but for the addition of postconsumer materials; and provided that the exemption for this subsection shall expire six years after the effective date of this section.

NEW SECTION. Sec. 123. By July 1, 1993, a certificate of compliance stating that a package or packaging component is in compliance with the requirements of this chapter shall be developed by its manufacturer, provided, however, where compliance is achieved under the exemption or exemptions provided in section 122 (3) or (4) of this act, the certificate shall state the specific basis upon which the exemption is claimed. The certificate of compliance shall be signed by an authorized official of the manufacturing company. The certificate of compliance shall be kept on file by the manufacturer for as long as the package or packaging component is in use, and for three years from the date of the last sale or distribution by the manufacturer. Certificates of compliance, or copies thereof, shall be furnished to the department of ecology upon request within sixty days. If manufacturers are required under any other state statute to provide a certificate of compliance, one certificate may be developed containing all required information.

If the manufacturer or supplier of the package or packaging component reformulates or creates a new package or packaging component, the manufacturer shall develop an amended or new certificate of compliance for the reformulated or new package or packaging component.

NEW SECTION. Sec. 124. Requests from a member of the public for any certificate of compliance shall be:

(1) Made in writing to the department of ecology;

(2) Made specific as to package or packaging component information requested; and

(3) Responded to by the department of ecology within ninety days.

NEW SECTION. Sec. 125. The department of ecology may suspend the sale of any package for which a manufacturer has failed to respond to a request by the department for a certificate of compliance within the allotted period of time pursuant to section 123 of this act.

NEW SECTION. Sec. 126. The solid waste advisory committee created under chapter 70.95 RCW shall review the effectiveness of this chapter in its third annual report to the legislature. The report shall contain recommendations to add other toxic substances contained in packaging to the list set forth in this chapter, including but not limited to mutagens, carcinogens, and teratogens, in order to further reduce the toxicity of packaging waste, and shall contain a recommendation regarding imposition of penalty for violation of section 121 of this act, and shall contain a recommendation whether to continue the recycling exemption as it is provided for in section 122 of this act.

Sec. 127. RCW 70.95C.120 and 1989 c 431 s 54 are each amended to read as follows:

The office of waste reduction shall develop, in consultation with the superintendent of public instruction, an awards program to achieve waste reduction and recycling in the public schools, grades kindergarten through high school. The office shall develop guidelines for program development and implementation. Each public school shall implement a waste reduction and recycling program conforming to guidelines developed by the office.

For the purpose of granting awards, the office may group schools into not more than three classes, based upon student population, distance to markets for recyclable materials, and other criteria, as deemed appropriate by the office. Except as otherwise provided, five or more awards shall be granted to each of the three classes. Each award shall be a sum of not less than two thousand dollars nor more than five thousand dollars. Awards shall be granted each year to the schools that achieve the greatest levels of waste reduction and recycling. ((~~Each~~)) A single award ((~~shall be of a sum~~)) of not less than ((~~ten~~)) five thousand dollars shall be presented to the school having the best recycling program as determined by the office. A single award of not less than five thousand dollars shall be presented to the school having the best waste reduction program as determined by the office. ((The office shall also develop recommendations for an awards program for waste reduction in the public schools. The office shall submit these recommendations to the appropriate standing committees in the house of representatives and senate on or before November 30, 1989.))

The superintendent of public instruction shall distribute guidelines and other materials developed by the office to implement programs to reduce and recycle waste generated in administrative offices, classrooms, laboratories, cafeterias, and maintenance operations.

NEW SECTION. Sec. 128. Claims made on a package, or in any advertising about the package, that the package is environmentally benign and the specific reason for that claim shall be printed next to the claim in letters at least as large as the claim or advertisement. Packages shall be made of at least twenty-five percent postconsumer recovered material measured by weight if an advertisement states that a package is made from recovered or recycled material. Alternately, a package may carry a statement identifying the percent of recovered material measured by weight. This section shall be superseded by more stringent federal regulations if any are enacted.

NEW SECTION. Sec. 129. (1)(a) By July 1, 1993, all packages manufactured, sold, or distributed in this state shall contain postconsumer recovered materials in amounts at least as great as the levels set by the packaging subcommittee of the state solid waste advisory committee.

(b) A package that satisfies one or more of the following criterion shall be exempt from the requirements imposed under this section. A package:

(i) That has been used five times in the same or a substantially similar distribution system;

(ii) For which the manufacturer demonstrates that waste reduction or source reduction necessitates use of virgin materials;

(iii) For which there is an inadequate supply of postconsumer recycled materials; or

(iv) That is prohibited by state rules or federal regulations from incorporating postconsumer recovered materials in its manufacture.

(c) In granting exemptions the department of ecology may consider a manufacturer's total system use of postconsumer recovered materials.

(d) In granting exemptions the department of ecology may consider the waste reduction elements of the design and manufacture of products and packages.

(2) By July 1, 1993, a certificate of compliance stating that a package or packaging component is in compliance with the requirements of this chapter shall be developed by its manufacturer, and shall identify the amount of postconsumer recovered material measured by weight and expressed as a percent of total package weight, except that, where compliance is achieved under the exemptions provided in subsection (1) of this section, the certificate shall state the specific basis upon which the exemption is claimed. If the amount of postconsumer recovered material varies from batch to batch, the certificate shall state the average annual content amount. The certificate shall be signed by an authorized official of the manufacturing company. The certificate shall be kept on file by the manufacturer for as long as the package or packaging component is in use, and for three years from the date of the last sale or distribution by the manufacturer. Certificates of compliance, or copies thereof, shall be furnished to the department of ecology upon request within thirty days.

(3) If manufacturers are required under any other state law to provide a certificate of compliance, one certificate may be developed containing all required information.

NEW SECTION. Sec. 130. Requests from a member of the public for any certificate of compliance shall be:

(1) Made in writing to the department of ecology;

(2) Made specific as to package or packaging component information requested; and

(3) Responded to by the department of ecology within ninety days.

NEW SECTION. Sec. 131. The department of ecology may suspend the sale of any package for which a manufacturer has failed to respond to a request by the department for a certificate of compliance within the allotted period of time pursuant to section 130 of this act.

NEW SECTION. Sec. 132. Sections 110 through 115 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 133. Sections 116 through 118 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 134. Sections 119 through 126 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 135. Sections 128 through 131 of this act shall constitute a new chapter in Title 70 RCW.

PART II

CLEAN WASHINGTON CENTER

NEW SECTION. Sec. 201. FINDINGS--POLICY. (1) The legislature finds that:

(a) Recycling conserves energy and landfill space, provides jobs and valuable feedstock materials to industry, and promotes health and environmental protection;

(b) Most of the citizens of the state actively participate in recycling programs and Washington currently has the highest recycling rate in the nation;

(c) Many local governments and private entities cumulatively affect, and are affected by, the market for recycled commodities but have limited jurisdiction and cannot adequately address the problems of market development that are complex, wide-ranging, and regional in nature; and

(d) The private sector has the greatest capacity for creating and expanding markets for recyclable commodities, and the development of private markets for recycled commodities is in the public interest.

(2) It is therefore the policy of the state to create an entity, within the department of trade and economic development to be known as the "clean Washington center" for the purpose of assisting businesses to develop new and expanded markets for recyclable commodities.

NEW SECTION. Sec. 202. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the board of directors of the center.

(2) "Center" means the clean Washington center.

(3) "End user" means a commercial or industrial entity that manufacturers new, finished products.

(4) "Work plan" means the annual plan developed by the center.

(5) "Market development" means expanding the use of postconsumer recyclable materials by commercial and industrial entities for the manufacture of new, finished products.

NEW SECTION. Sec. 203. BOARD MEMBERSHIP. (1) There is established the clean Washington center board within the department of trade and economic development to consist of eleven members. Except as otherwise provided, board members shall be appointed by the governor as follows:

(a) Two members to represent the legislature, one member appointed by the speaker of the house of representatives and one member appointed by the president of the senate;

(b) Two members to represent local government;

(d) The directors of the departments of trade and economic development and ecology shall represent the executive branch as ex officio members.

(2) Members representing the legislature and local government shall serve two-year renewable terms; members representing the private sector shall serve three-year renewable terms. Vacancies shall be filled by the chair with majority consent from the board.

(3) Members, exclusive of those representing the legislative or executive branches, shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

(4) The chair shall be selected from among the members by a simple majority vote.

NEW SECTION. Sec. 204. POWERS. In order to carry out its responsibilities under this chapter, the center may:

(1) Receive such gifts, grants, funds, fees, and endowments, in trust or otherwise, for the use and benefit of the purposes of the center. The center may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments;

(2) Obtain and disseminate information relating to market development for recyclable materials from other state and local agencies;

(3) Enter into, amend, and terminate contracts with individuals, corporations, or research institutions for the purposes of this chapter;

(4) Provide grants to local governments and nonprofit organizations;

(5) Evaluate, analyze, and make recommendations on state policies that may affect markets for recyclable materials; and

(6) Adopt and exercise bylaws for the regulation of business for the purposes of this chapter.

NEW SECTION. Sec. 205. DUTIES. The center shall:

(1) Develop an annual work plan. The plan shall describe actions and recommendations for developing markets for commodities comprising a significant percentage of the waste stream and having potential for use as an industrial or commercial feedstock. The plan shall specify amounts, types, sources, and end uses of recycled material targeted for remanufacture, and shall show the budgeted expenses associated with each commodity. The initial plan shall, at a minimum, address mixed waste paper, yard and food waste, and plastics. The center shall submit its annual work plan to the legislature by December 1st of each year;

(2) Provide business and marketing assistance, as requested, to private sector entities within the state;

(3) Conduct appropriate public hearings and otherwise seek to broadly disseminate information concerning market development for recyclable materials;

(4) Represent the state in market development issues at the local, regional, and national levels; and

(5) Initiate, conduct, or contract for studies and searches relating to market development for recyclable materials, including but not limited to applied research, technology transfer, and pilot demonstration projects.

NEW SECTION. Sec. 206. (1) If development of an end user requires additional material from any sector that is not readily available in the marketplace, the clean Washington center shall inform the department of ecology of the amount and type of material that is needed, as well as any other pertinent specifications. The department of ecology shall develop a business plan for collecting the needed material that is consistent with state and local solid waste management plans under chapter 70.95 RCW. The plan shall show the most efficient, least expensive way to collect the necessary material, and shall show the costs of related collection programs.

(2) Funds for the capitalization or operation of collection programs may be granted by the clean Washington center to the department of ecology. The department of ecology shall enter into contracts and make grants for the purpose of collecting needed materials, or providing funds to local governments for collection of materials requiring subsidy. The clean Washington center shall not enter into contracts and shall not make grants for the purpose of collecting materials on behalf of end users.

(3) Ecology staff responsible for entering into contracts or making grants for the purpose of collecting postconsumer materials shall be collocated with the clean Washington center, to the extent practical.

NEW SECTION. Sec. 207. ADVISORY COMMITTEES. The board may appoint advisory committees to assist in the development or implementation of the work plan.

NEW SECTION. Sec. 208. CAPTIONS NOT LAW. Section headings as used in this chapter do not constitute any part of the law.

NEW SECTION. Sec. 209. A new section is added to chapter 43.131 RCW to read as follows:

The clean Washington center and its powers and duties shall be terminated on June 30, 1995, as provided in section 210 of this act.

NEW SECTION. Sec. 210. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1996:

(1) RCW 70.---.--- and 1991 c ---, s 201 (section 201 of this act);

(2) RCW 70.---.--- and 1991 c ---, s 202 (section 202 of this act);

(3) RCW 70.---.--- and 1991 c ---, s 203 (section 203 of this act);

(4) RCW 70.---.--- and 1991 c ---, s 204 (section 204 of this act);

(5) RCW 70.---.--- and 1991 c ---, s 205 (section 205 of this act);

(6) RCW 70.---.--- and 1991 c ---, s 206 (section 206 of this act);

(7) RCW 70.---.--- and 1991 c ---, s 207 (section 207 of this act); and

(8) RCW 70.---.--- and 1991 c ---, s 208 (section 208 of this act).

Sec. 211. RCW 43.31.545 and 1989 c 431 s 64 are each amended to read as follows:

(1) The department is the lead state agency to assist in establishing and improving markets for recyclable materials generated in the state. This priority on creating and expanding a recyclables market should be fully integrated into the current targeted sector marketing programs of the department. In carrying out these marketing responsibilities, the department shall work closely with the office of waste reduction in the department of ecology.

(2) The department of trade and economic development, with the assistance of the department of ecology ((~~and the committee for recycling markets created by RCW 43.31.552,~~)) shall develop programs to accomplish the following:

(a) Develop new markets inside and outside this state for recycled materials;

(b) Attract new businesses to this state whose purpose is to use recycled materials;

(d) Promote business and consumer use of products made from recycled materials;

(e) Provide technical market assistance to businesses and local governments;

(f) Cooperate with and secure the cooperation of any department, agency, commission, or instrumentality in state or local government affected by or concerned with market development; and

(g) Create and maintain a list of recyclers, collectors, and other persons or entities interested in the development of markets for recycling and solicit the opinions of those persons with respect to market development.

NEW SECTION. Sec. 212. The following acts or parts of acts are each repealed:

(1) RCW 43.31.552 and 1989 c 431 s 100;

(2) RCW 43.31.554 and 1989 c 431 s 101; and

(3) RCW 43.31.556 and 1990 c 127 s 1 & 1989 c 431 s 102.

NEW SECTION. Sec. 213. Sections 201 through 208 of this act shall constitute a new chapter in Title 70 RCW.

PART III

USED OIL RECYCLING

NEW SECTION. Sec. 301. INTENT. (1) The legislature finds that:

(a) Millions of gallons of used oil are generated each year in this state, and used oil is a valuable petroleum resource that can be recycled;

(b) The improper collection, transportation, recycling, use, or disposal of used oil contributes to the pollution of air, water, and land, and endangers public health and welfare;

(c) The private sector is a vital resource in the collection and recycling of used oil and should be involved in its collection and recycling whenever practicable.

(2) In light of the harmful consequences of improper disposal and use of used oil, and its value as a resource, the legislature declares that the collection, recycling, and reuse of used oil is in the public interest.

(3) The department, when appropriate, should promote the rerefining of used oil in its grants, public education, regulatory, and other programs.

NEW SECTION. Sec. 302. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Rerefining used oil" means the reclaiming of base lube stock from used oil for use again in the production of lube stock. Rerefining used oil does not mean combustion or landfilling.

(2) "Used oil" means: (a) Lubricating fluids that have been removed from an engine crankcase, transmission, gearbox, hydraulic device, or differential of an automobile, bus, truck, vessel, plane, heavy equipment, or machinery powered by an internal combustion engine; (b) any oil that has been refined from crude oil, used, and as a result of use, has been contaminated with physical or chemical impurities; and (c) any oil that has been refined from crude oil and, as a consequence of extended storage, spillage, or contamination, is no longer useful to the original purchaser.

(3) "Public used oil collection site" means a site where a used oil collection tank has been placed for the purpose of collecting household generated used oil. "Public used oil collection site" also means a vehicle designed or operated to collect used oil from the public.

(4) "Lubricating oil" means any oil designed for use in, or maintenance of, a vehicle, including, but not limited to, motor oil, gear oil, and hydraulic oil. "Lubricating oil" does not mean petroleum hydrocarbons with a flash point below one hundred degrees Centigrade.

(5) "Vehicle" includes every device physically capable of being moved upon a public or private highway, road, street, watercourse, or trail, and in, upon, or by which any person or property is or may be transported or drawn upon a public or private highway, road, street, watercourse, or trail, except devices moved by human or animal power.

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

(7) "Local government" means a city or county developing a local hazardous waste plan under RCW 70.105.220.

NEW SECTION. Sec. 303. PUBLIC USED OIL COLLECTION. (1) Each local government and its local hazardous waste plan is required under RCW 70.105.220 to include a used oil recycling element. This element shall include:

(a) A plan to reach the local goals for household used oil recycling established by the local government and the department under section 304 of this act. The plan shall, to the maximum extent possible, incorporate voluntary agreements with the private sector and state agencies to provide sites for the collection of used oil. Where provided, the plan shall also incorporate residential collection of used oil;

(b) A plan for enforcing the sign and container ordinances required by section 305 of this act;

(d) An estimate of funding needed to implement the requirements of this chapter. This estimate shall include a budget reserve for disposal of contaminated oil detected at any public used oil collection site administered by the local government.

(2) By July 1, 1993, each local government or combination of contiguous local governments shall submit its used oil recycling element to the department. The department shall approve or disapprove the used oil recycling element if it determines that the element is consistent with this chapter and the guidelines developed by the department under section 304 of this act.

(3) Each local government, or combination of contiguous local governments, shall submit an annual statement to the department describing the number of used oil collection sites and the quantity of household used oil recycled for the jurisdiction during the previous calendar year. The first statement shall be due April 1, 1994. Subsequent statements shall be due April 1st of each year.

NEW SECTION. Sec. 304. RECYCLING GOALS. (1) By July 1, 1992, the department shall, in conjunction with local governments, prepare guidelines for the used oil recycling elements required by section 303 of this act. The guidelines shall:

(a) Require development of local collection and rerefining goals for household used oil for each entity preparing a used oil recycling element under section 302 of this act;

(b) Require local government to recommend the number of used oil collection sites needed to meet the local goals. The department shall establish criteria regarding minimum levels of used oil collection sites;

(c) Require local government to identify locations suitable as public used oil collection sites as described under section 303(1)(a) of this act.

(2) The department may waive all or part of the specific requirements of section 303 of this act if a local government demonstrates to the satisfaction of the department that the objectives of this chapter have been met.

(3) The department may prepare and implement a used oil recycling plan for any local government failing to complete the used oil recycling element of the plan.

(4) The department shall develop state-wide collection and rerefining goals for household used oil for each calendar year beginning with calendar year 1994. Goals shall be based on the estimated state-wide collection and rerefining rate for calendar year 1993, and shall increase each year until calendar year 1996, when the rate shall be eighty percent.

(5) By July 1, 1993, the department shall prepare guidelines establishing state-wide equipment and operating standards for public used oil collection sites. Standards shall:

(a) Allow the use of used oil collection igloos and other types of portable used oil collection tanks;

(b) Prohibit the disposal of nonhousehold-generated used oil;

(d) Ensure adequate protection against leaks and spills; and

(e) Include other requirements deemed appropriate by the department.

NEW SECTION. Sec. 305. SIGNS AND CONTAINERS. (1) A person annually selling one thousand or more gallons of lubricating oil to ultimate consumers for use or installation off the premises, or five hundred or more vehicle oil filters to ultimate consumers for use or installation off the premises within a city or county having an approved used oil recycling element, shall:

(a) Post and maintain at or near the point of sale, durable and legible signs informing the public of the importance of used oil recycling and how and where used oil may be properly recycled, including locations and hours of operation of nearby public used oil collection sites; and

(b) Provide for sale at or near the display location of the lubricating oil or vehicle oil filters, household used oil recycling containers. The department shall design and print the signs required by this section, and shall make them available to local governments and retail outlets.

(2) A person, who, after notice, violates this section is guilty of a misdemeanor and on conviction is subject to a fine not to exceed one thousand dollars.

(3) The department is responsible for notifying retailers subject to this section.

(4) A city or county may adopt household used oil recycling container standards in order to ensure compatibility with local recycling programs.

(5) Each local government preparing a used oil recycling element of a local hazardous waste plan pursuant to section 303 of this act shall adopt ordinances within its jurisdiction to enforce subsections (1) and (4) of this section.

NEW SECTION. Sec. 306. STATE-WIDE EDUCATION. The department shall conduct a public education program to inform the public of the needs for and benefits of collecting and recycling used oil in order to conserve resources and protect the environment. As part of this program, the department shall:

(1) Establish and maintain a state-wide list of public used oil collection sites, and a list of all persons coordinating local government used oil programs;

(2) Establish a state-wide media campaign describing used oil recycling;

(3) Assist local governments in providing public education and awareness programs concerning used oil by providing technical assistance and education materials; and

(4) Encourage the establishment of voluntary used oil collection and recycling programs, including public-private partnerships, and provide technical assistance to persons organizing such programs.

NEW SECTION. Sec. 307. DISPOSAL OF USED OIL. (1) Effective January 1, 1992, the use of used oil for dust suppression or weed abatement is prohibited.

(2) Effective July 1, 1992, no person may sell or distribute absorbent based kits as a means for collecting, recycling, or disposing of used oil.

(3) Effective January 1, 1994, no person may knowingly dispose of used oil except by delivery to a person collecting used oil for recycling, treatment, or disposal, subject to the provisions of this chapter and chapter 70.105 RCW.

(4) Effective January 1, 1994, no owner or operator of a solid waste landfill may knowingly accept used oil for disposal in the landfill.

(5) A person who violates this section is guilty of a misdemeanor.

NEW SECTION. Sec. 308. USED OIL TRANSPORTER AND PROCESSOR REQUIREMENTS. (1) By January 1, 1993, the department shall adopt rules requiring any transporter of used oil to comply with minimum notification, invoicing, recordkeeping, and reporting requirements. For the purpose of this section, a transporter means a person engaged in the off-site transportation of used oil in quantities greater than twenty-five gallons per day.

(2) By January 1, 1993, the department shall adopt minimum standards for used oil that is blended into fuels. Standards shall, at a minimum, establish testing and recordkeeping requirements. Unless otherwise exempted, a processor is any person involved in the marketing, blending, mixing, or processing of used oil to produce fuel to be burned for energy recovery.

(3) Any person who knowingly transports used oil without meeting the requirements of this section shall be subject to civil penalties under chapter 70.105 RCW.

NEW SECTION. Sec. 309. CAPTIONS NOT LAW. Section headings as used in this chapter do not constitute any part of the law.

NEW SECTION. Sec. 310. SHORT TITLE. This chapter shall be known and may be cited as the used oil recycling act.

NEW SECTION. Sec. 311. A new section is added to chapter 70.94 RCW to read as follows:

MARKET DEVELOPMENT--BURNING USED OIL FUEL IN LAND-BASED FACILITIES. (1) Except as provided in subsection (2) of this section, a person may not burn used oil as fuel in a land-based facility or in state waters unless the used oil meets the following standards:

(a) Cadmium: 2 ppm maximum

(b) Chromium: 10 ppm maximum

(d) Arsenic: 5 ppm maximum

(e) Total halogens: 1000 ppm maximum

(f) Polychlorinated biphenyls: 2 ppm maximum

(g) Ash: .1 percent maximum

(h) Sulfur: 1.0 percent maximum

(i) Flash point: 100 degrees Fahrenheit minimum.

(2) This section shall not apply to: (a) Used oil burned in space heaters if the space heater has a maximum heat output of not greater than 0.5 million btu's per hour or used oil burned in facilities permitted by the department or a local air pollution control authority; or (b) ocean-going vessels.

NEW SECTION. Sec. 312. A new section is added to chapter 70.105 RCW to read as follows:

Local governments and combinations of local governments shall amend their local hazardous waste plans required under RCW 70.105.220 to comply with section 303 of this act.

NEW SECTION. Sec. 313. The following acts or parts of acts are each repealed:

(1) RCW 19.114.010 and 1983 c 137 s 1;

(2) RCW 19.114.020 and 1983 c 137 s 2;

(3) RCW 19.114.030 and 1983 c 137 s 3; and

(4) RCW 19.114.900 and 1983 c 137 s 5.

NEW SECTION. Sec. 314. RCW 19.114.040 is recodified as a section in chapter 70.-- RCW (sections 301 through 310 of this act).

NEW SECTION. Sec. 315. Sections 301 through 310 of this act shall constitute a new chapter in Title 70 RCW.

PART IV

MISCELLANEOUS

NEW SECTION. Sec. 401. Part headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 402. The sum of ....... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the clean Washington account to the department of trade and economic development for the purposes of assisting business develop markets for recyclable materials.

NEW SECTION. Sec. 403. The sum of ....... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the clean Washington account to the department of ecology for the purpose of implementing sections 110 through 126 of this act.

Sec. 404. RCW 70.95.040 and 1987 c 115 s 1 are each amended to read as follows:

(1) There is created a solid waste advisory committee to provide consultation to the department of ecology concerning matters covered by this chapter. The committee shall advise on the development of programs and regulations for solid and dangerous waste handling, resource recovery, and recycling, and shall supply recommendations concerning methods by which existing solid and dangerous waste handling, resource recovery, and recycling practices and the laws authorizing them may be supplemented and improved.

(2) The committee shall consist of at least eleven members, including the assistant director for ((~~the division of solid~~)) waste management programs within the department. The director shall appoint ((~~ten~~)) members with due regard to the interests of the public, local government, tribes, agriculture, industry, public health, recycling industries, and the refuse removal and resource recovery industries. ((~~The director shall include among his ten appointees representatives of activities from which dangerous wastes arise and the Washington state patrol's hazardous materials technical advisory committee.~~)) The term of appointment shall be determined by the director. The committee shall elect its own ((~~chairman~~)) chair and meet at least four times a year, in accordance with such rules of procedure as it shall establish. Members shall receive no compensation for their services but shall be reimbursed their travel expenses while engaged in business of the committee in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended.

(3) The committee shall each year recommend to the governor a recipient for a "governor's award of excellence" which the governor shall award for outstanding achievement by an industry, company, or individual in the area of hazardous waste or solid waste management.

NEW SECTION. Sec. 405. A new section is added to chapter 82.04 RCW to read as follows:

A refundable deposit rebated to a purchaser shall be deducted from the selling price and excluded from gross income for tax purposes. For the purposes of this chapter, "refundable deposit" means an amount that is collected by the seller at the time of sale with the understanding that the amount shall be deemed to be security to ensure the return of reusable or recyclable materials or packaging and that will be rebated or credited to the purchaser when a substantially similar reusable or recyclable material or packaging is returned to the seller.

NEW SECTION. Sec. 406. A new section is added to chapter 82.04 RCW to read as follows:

If a seller has rebated or credited a refundable deposit to a purchaser upon return of substantially similar reusable or recyclable materials or packaging, the seller shall deduct an amount equal to the deposit actually rebated or credited from gross proceeds of sales in computing tax liability on the reusable or recyclable materials or packaging.

NEW SECTION. Sec. 407. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 408. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.