H-0428

AN ACT Relating to scrap metal recycling; adding a new chapter to Title 70 RCW; and making an appropriation.

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

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

(1) The scrap metal recycling industry in Washington state provides important environmental, societal, and economic benefits to the residents of this state;

(2) The scrap metal recycling industry diverts a significant portion of this state's potential solid waste stream by recycling more than nine hundred thirty-five thousand net tons of scrap metal annually, thus extending the life of local landfills and conserving the nonrenewable supply of iron ore and coal;

(3) Hazardous and toxic materials typically built-in to automobiles, buses, trucks, appliances, and other bulk metal items expose the scrap metal recycling industry to serious and undue liability that threatens to make scrap metal recycling economically infeasible; and

(4) The manufacturers of vehicles, appliances, and other bulk metal items currently bear no cost or liability for the environmental degradation caused by the hazardous and toxic components of their products.

It is in the interest of the people of the state of Washington to identify and implement practices that will mitigate the environmental costs of managing scrap metal waste containing hazardous and toxic components and to impose the costs of managing such components on manufacturers.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

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

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

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

(4) "Scrap metal" means waste materials from durable goods such as motor vehicles and major appliances that contain sufficient ferrous and nonferrous metals to justify recycling.

(5) "Motor vehicle" is as defined in RCW 82.44.010.

(6) "New motor vehicle" and "new motor vehicle dealer" is as defined in RCW 46.96.020.

(7) "Purchase price" means the price paid by a new motor vehicle dealer to a manufacturer, or distribution company of a manufacturer for a motor vehicle delivered to the dealer for subsequent resale.

(8) "Major appliances" means an appliance intended primarily for household use employing electricity, natural gas, or a liquefied petroleum gas to supply heat or motive power to preserve or cook food, to wash clothing, dishes, or other related items, or to cool or heat air or water. "Major appliance" includes, but is not limited to, clothes washing machines, clothes dryers, dishwashers, ovens, air conditioners, water conditioners, and water heaters.

(9) "New major appliances" means a major appliance which has not previously been sold to a consumer.

(10) "New major appliance retailer" means a major appliance dealer engaged in the business of selling new major appliances to consumers.

(11) "Consumer" means any person who purchases a new major appliance for their own use.

(12) "Scrap metal processor" means an entity, operating within the state, that processes two hundred thousand or more tons of scrap metal per year.

NEW SECTION. Sec. 3. An excise tax is imposed upon the privilege of the selling of new motor vehicles by manufacturers or the distribution companies of manufacturers to new motor vehicle dealers in the state. The amount of the excise tax shall be ten one-hundredths percent of the purchase price of such vehicle.

NEW SECTION. Sec. 4. An excise tax is imposed upon the privilege of the selling of any new major appliance by either the manufacturer, distributing companies of a manufacturer, or wholesaler to a new major appliance retailer in the state. The amount of such excise tax shall be fifteen dollars per appliance.

NEW SECTION. Sec. 5. All of the provisions contained in chapter 82.32 RCW shall have full force and application with respect to the excise taxes imposed under this chapter, including the rule-making authority contained in RCW 82.32.300. The taxes imposed by this chapter shall be subject to the return requirements imposed by RCW 82.32.045.

NEW SECTION. Sec. 6. The scrap metal recycling account is created within the state treasury. All fees, fines, and other funds collected or received under this chapter shall be deposited in the scrap metal recycling account. Expenditures from the account may be used only for the administration and implementation of this chapter. Moneys in the account may be spent only after appropriation.

NEW SECTION. Sec. 7. (1) The department may enter into contracts with scrap metal processors for the following purposes:

(a) Increasing the collection and processing of scrap metal generated within the state. Such increase shall be no less than five percent per biennium; and

(b) Implementing a system to recycle or properly dispose of all hazardous waste entering scrap metal processing facilities.

(2) Contracts entered into under subsection (1) of this section shall provide for a minimum payment, by the department to scrap metal processors, for each ton of metal generated and processed within this state by a scrap metal processor. Such payments shall not exceed the total amount of funds within the scrap metal account created under section 6 of this act. In the event that a scrap metal processor does not meet the contractual obligations as may be specified by the department under subsection (1) of this section, all funds that would otherwise have been paid to the scrap metal processor shall be deposited in the general fund.

(3) By July 1, 1993, the department shall report to the appropriate standing committees of the legislature on the effectiveness of such contracts to:

(a) Increase the quantity of scrap metal processed within the state; and

(b) Promote proper management of dangerous wastes associated with scrap metal processing.

NEW SECTION. Sec. 8. The sum of ........... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the scrap metal recycling account to the department of ecology for the purposes under section 7 of this act.

NEW SECTION. Sec. 9. Sections 1 through 7 of this act shall constitute a new chapter in Title 70 RCW.