(a) A public agency, or its contractor, may conduct a materials exchange program as a part of its household hazardous waste collection program if the public agency, or its contractor, does all of the following:

1. (1) Determines which reusable household hazardous products or materials are suitable and acceptable for distribution to a recipient in accordance with a quality assurance plan prepared by the public agency, or its contractor.
2. (2) Instructs a recipient to use the product or material in a manner consistent with the instructions on the label.

(b) If a recipient that is a commercial entity intends to distribute a reusable household hazardous product or material to another recipient or end user, the public agency, or its contractor, shall do all of the following:

1. (1) Require the commercial entity to provide the following information, with a signed statement certifying the accuracy of the information under penalty of perjury:

   1. (A) The commercial entity’s legal name, address, and telephone number.
   2. (B) Documentation supporting that the commercial entity has a known market or markets, or disposition, for any products or materials received, and a detailed description of that known market or markets, or disposition.
   3. (C) A declaration that the commercial entity intends to distribute the reusable household hazardous product or material for its originally intended purpose.
   4. (D) An explanation of how the commercial entity intends to dispose of any household hazardous products or materials it receives that remain unused.
2. (2) Require the commercial entity to provide the public agency with an annual report, by September 1 of each year, for the period between July 1 of the prior year and June 30 of the current year, that provides a detailed accounting for the products or materials it received. The detailed accounting shall include a list of recipients or end users to whom the commercial entity distributed a product or material, the amount and type of product or material distributed to the recipient or end user, the amount and type of product or material that is awaiting distribution, and the amount, type, and disposition of any product or material that the commercial entity was unable to sell or donate.
3. (3) Immediately discontinue providing reusable household hazardous products or materials to the commercial entity if the commercial entity cannot verify its compliance with paragraph (1) or (2).

(d) A recipient of a reusable household hazardous product or material shall do all of the following:

1. (1) Use the reusable household hazardous product or material in conformance with its label, and use appropriate personal protection.
2. (2) Manage unused reusable household hazardous products or materials as hazardous waste, as required by applicable California law, or as required by any applicable law in the state in which the product or material is discarded.