Bill Text: AZ SB1408 | 2015 | Fifty-second Legislature 1st Regular | Introduced


Bill Title: Electronic equipment; recovery

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2015-02-04 - Referred to Senate CWD Committee [SB1408 Detail]

Download: Arizona-2015-SB1408-Introduced.html

 

 

 

REFERENCE TITLE: electronic equipment; recovery

 

 

 

State of Arizona

Senate

Fifty-second Legislature

First Regular Session

2015

 

 

SB 1408

 

Introduced by

Senators Farley: Hobbs

 

 

AN ACT

 

amending title 49, chapter 4, Arizona Revised Statutes, by adding article 11; relating to electronic equipment recycling.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 49, chapter 4, Arizona Revised Statutes, is amended by adding article 11, to read:

ARTICLE 11.   ELECTRONIC EQUIPMENT RECOVERY PROGRAM

START_STATUTE49-891.  Definitions

In this article, unless the context otherwise requires:

1.  "Collect" or "collection" means to facilitate the delivery of a covered device to a collection site included in the manufacturer's program and to transport the covered device for recovery.

2.  "Computer manufacturer" means a person that does any of the following:

(a)  Manufactures a covered computer device under its own brand for sale or without affixing a brand.

(b)  Sells in this state a covered computer device produced by another supplier under its own brand or label.

(c)  Imports covered computer devices, except that if a company from which an importer purchases a covered computer device has a presence or assets in the United States, that company is considered the manufacturer.

(d)  Manufactures a covered computer device, supplies a covered computer device to a person within a distribution network that includes wholesalers or retailers in this state and benefits from the sale of a covered device through that distribution network.

3.  "Computer monitor manufacturer" means a person that does any of the following:

(a)  Manufactures a covered computer monitor device under its own brand for sale or without affixing a brand.

(b)  Sells in this state a covered computer monitor device produced by another supplier under its own brand or label.

(c)  Imports covered computer monitor devices, except that if a company from which an importer purchases a covered computer monitor device has a presence or assets in the United States, that company is considered the manufacturer.

(d)  Manufactures a covered computer monitor device, supplies a covered computer monitor device to a person within a distribution network that includes wholesalers or retailers in this state and benefits from the sale of a covered device through that distribution network.

4.  "Consumer" means an occupant of a single detached dwelling unit or a single unit of a multiple dwelling unit who has used a covered device primarily for personal or home business use.

5.  "Consumer electronic device stewardship program" means a recycling effort established by the representative organization or manufacturer of a covered television device or covered computer monitor device.

6.  "Covered computer device" means a desktop, laptop, tablet, notepad or notebook computer with a monitor with a viewable area greater than six inches measured diagonally or a printing device marketed and intended for use by a consumer.  Covered computer device does not include a covered television device.

7.  "Covered computer monitor device" means a display device typically manufactured without an internal tuner that can display pictures and sound and is designed for use with a desktop computer.

8.  "Covered devices" means a covered computer device, covered computer monitor device and covered television device marketed and intended for use by a consumer.  Covered device does not include any of the following:

(a)  A covered device that is a part of a motor vehicle or a component part of a motor vehicle assembled by or for a vehicle manufacturer or franchised dealer, including replacement parts for use in a motor vehicle.

(b)  A covered device that is functionally or physically a part of, connected to or integrated within equipment or a system designed and intended for use in an industrial, governmental, commercial, research and development or medical setting, including diagnostic, monitoring, control or medical products or equipment used for security, sensing, monitoring, antiterrorism or emergency services purposes or equipment designed and intended primarily for use by professional users.

(c)  A covered device that is contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier, air purifier, water heater or exercise equipment.

(d)  Telephones of any type, including mobile telephones, a personal digital assistant, a global positioning system or a hand‑held gaming device.

(e)  A plastic, wood or composite case that once held a covered device or was a subassembly of a covered device but is void of any electronics, leaded glass or metal electronic components.

9.  "Covered television device" means an electronic device that contains a tuner that locks on to a selected carrier frequency and is capable of receiving and displaying television or video programming via broadcast, cable or satellite, including a direct view or projection television with a viewable screen of nine inches or larger whose display technology is based on cathode ray tube, plasma, liquid crystal display, digital light processing, liquid crystal on silicon, silicon crystal reflective display, light emitting diode or similar technology marketed and intended for use by a consumer primarily for personal purposes.  Covered television device does not include a covered computer device.

10.  "Manufacturer's brand" means a manufacturer's name, brand name that is either owned or licensed by the manufacturer or brand logo for which the manufacturer otherwise has legal responsibility.

11.  "Person" means an individual, business entity, partnership, limited liability company, corporation, nonprofit corporation, association, government entity, benefit corporation or public authority.

12.  "Program" means a consumer electronic device stewardship program.

13.  "Program year" means the calendar year.

14.  "Representative organization" means an organization created to develop and oversee implementation of a statewide plan consisting of one or more consumer electronic device stewardship programs, both in this state and in other jurisdictions that authorize a representative organization.

15.  "Recoverer" means a person that reuses or recycles a covered device.

16.  "Recovery" means reuse or recycling.

17.  "Recycling":

(a)  Means either of the following:

(i)  Processing through disassembling, dismantling, shredding, transforming or remanufacturing covered electronic devices, components and by-products into usable or marketable raw materials or products in a manner such that the original products may lose their identity.

(ii)  Smelting materials from components removed from covered electronic devices to recover metals for reuse in conformance with applicable laws and rules.

(b)  Does not include landfill disposal or incineration of covered electronic devices or energy recovery or energy generation by means of combusting covered electronic devices, components and by-products with or without other waste.

18.  "Retail sale" means the sale of a new product through a sales outlet, the internet, mail order or otherwise, whether or not the seller has a physical presence in this state.

19.  "Retailer" means a person that is engaged in retail sales.

20.  "Sale" or "sell" means a transfer for consideration of title, including transactions conducted through sales outlets, catalogues or the internet or any other similar electronic means.  Sale or sell does not mean leases.

21.  "Television" means an electronic device that contains a tuner that locks on to a selected carrier frequency and is capable of receiving and displaying television or video programming via broadcast, cable or satellite, including a direct view or projection television with a viewable screen of nine inches or larger whose display technology is based on cathode ray tube, plasma, liquid crystal display, digital light processing, liquid crystal on silicon, silicon crystal reflective display, light emitting diode or similar technology marketed and intended for use by a consumer primarily for personal purposes.  Television does not include a covered computer device.

22.  "Television manufacturer" means a person that does any of the following:

(a)  Manufactures covered television devices under a brand that it licenses or owns for sale in this state.

(b)  Manufactures covered television devices without affixing a brand for sale in this state.

(c)  Resells into this state a covered television device under a brand it owns or licenses that is produced by other suppliers, including retail establishments that sell covered television devices under a brand the retailer owns or licenses.

(d)  Imports covered television devices, except that if a company from which an importer purchases a covered device has a presence or assets in the United States, that company is considered the manufacturer.

(e)  Manufactures covered television devices, supplies them to a person within a distribution network that includes wholesalers or retailers in this state and benefits from the sale in this state of those covered television devices through the distribution network.

(f)  Assumes the responsibilities and obligations of a television manufacturer under this article.  If the television manufacturer is one who manufactures, sells or resells under a brand it licenses, the licensor or brand owner of the brand is not included in the definition of television manufacturer under subdivisions (a) or (c) of this paragraph. END_STATUTE

START_STATUTE49-891.01.  Manufacturer to provide label on covered devices

A computer, computer monitor or television manufacturer may not sell or offer for sale a covered device unless a label indicating the computer, computer monitor or television manufacturer's brand is permanently affixed to the covered device in a readily visible location. END_STATUTE

START_STATUTE49-891.02.  Computer manufacturer recovery program; financial incentive

A.  A computer manufacturer may not sell or offer to sell in this state a covered computer device unless the computer manufacturer provides a recovery program at no charge or provides a financial incentive of equal or greater value, such as a coupon.  A recovery program must do all of the following:

1.  Require a computer manufacturer to offer to collect from a consumer a covered computer device bearing a label as prescribed in section 49‑891.01.

2.  Make the collection service as convenient to a consumer as the purchase of a covered computer device from a computer manufacturer as follows:

(a)  A computer manufacturer may use a mail‑back system in which a consumer can return an end‑of‑life covered device by mail, including a system in which a consumer can go online, print a prepaid shipping label, package the product and affix the prepaid label to the package for deposit with the United States postal service or another carrier selected by the computer manufacturer.

(b)  If the computer manufacturer does not provide a mail‑back system, the computer manufacturer must provide collection sites or collection events, or both, that are centrally located in a county, a region or another location based on population.  Computer manufacturers shall work in coordination with the department to determine an appropriate number of collection sites or collection events, or both.

B.  A recovery program may use existing collection and consolidation infrastructure for collecting covered devices, including retailers, recyclers and reuse organizations.  Computer manufacturers may work collectively and cooperatively to offer collection services to consumers.

C.  A recovery program must be described on a computer manufacturer's website if a manufacturer maintains a website.

D.  Collection events under this section must accept any covered computer device. END_STATUTE

START_STATUTE49-891.03.  Television manufacturer, computer monitor manufacturer recovery program; financial incentive; annual recycling; report; contact information provided to department; definition

A.  A television manufacturer or computer monitor manufacturer may not sell or offer for sale a covered television device or covered computer monitor device in this state unless the television manufacturer or computer monitor manufacturer provides a recovery program at no charge or provides a financial incentive of equal or greater value, such as a coupon.

B.  For the program year 2016, which begins January 1, 2016, a television manufacturer or computer monitor manufacturer shall recycle or arrange for the recycling of its market share of covered television devices or covered computer monitor devices pursuant to this section.  The individual recycling obligation for each television manufacturer is calculated by multiplying ______ pounds by the manufacturer's market share.  The individual recycling obligation for each computer monitor manufacturer is calculated by multiplying ______ pounds by the manufacturer's market share.  The population fraction is determined by using the most recent United States census data for the total population of this state divided by the total population of the United States.  A television manufacturer or computer monitor manufacturer may use covered televisions or covered computer monitor devices to meet their recycling obligation.

C.  The department shall notify each television manufacturer and computer monitor manufacturer of its market share recycling obligation by March 15, 2016.  A television manufacturer and computer monitor manufacturer shall provide the department information necessary for the department to calculate market share and to determine each television manufacturer's recycling obligation.

D.  A television manufacturer and computer monitor manufacturer shall report to the department the total weight of manufacturer's televisions or computer monitors sold at retail in the United States, the state‑specific television or computer monitor sales data annually calculated using the population fraction of this state to the United States population and the total weight of covered television devices and covered computer monitor devices collected and recycled in this state during the previous program year.  If a computer monitor manufacturer or a television manufacturer does not provide the department the necessary information for the department to calculate market share, the department shall use the best available national market share data to make this calculation.

E.  A television manufacturer or computer monitor manufacturer may fulfill the requirements of this section either individually or in participation with other manufacturers.  A recovery program may use existing collection and consolidation infrastructure for collecting covered television or covered computer monitor devices, including retailers, recyclers and reuse organizations.  Every manufacturer shall provide the department a report at the beginning of each program year regarding compliance with the obligations established by the department.

F.  A television manufacturer or computer monitor manufacturer shall provide the department with contact information for the manufacturer's designated agent or employee whom the department may contact for information related to the manufacturer's compliance with the requirements of this section.

G.  For the purposes of this section, "market share" means the total weight of the manufacturer's televisions or computer monitors that were sold at retail in the United States to individuals during the previous program year, multiplied by the population fraction of this state to the United States population, divided by the total weight of all of the televisions or computer monitors that were sold at retail to individuals in this state during the previous program year. END_STATUTE

START_STATUTE49-891.04.  Requirement to implement recovery program

A.  On January 1, 2017, and annually thereafter, a television manufacturer or computer monitor manufacturer shall either:

1.  Join a representative organization created by manufacturers of covered devices to establish fair and reasonable policies to be applied in this state and to provide a plan to the department pursuant to this section.

2.  Notify the department of its intent to fulfill its obligations under this article by implementing a program under subsection K of this section.

B.  A representative organization shall submit a plan for the operation of a statewide consumer electronic device stewardship program as prescribed in this section to the department for approval annually.  The initial plan must be submitted to the department by September 3, 2015 and annually ninety days before the beginning of the program year in subsequent years.  The plan must include details on how one or more eligible companies or consumer electronic device stewardship programs operating within the plan will:

1.  Provide for the recycling of all used covered television devices and used covered computer monitor devices collected by participating local governments specified in the plan based on the proportionate membership of the representative organization.

2.  Work with a representative organization, the department and local government recycling representatives to provide recycling services of covered television devices and covered computer monitor devices and to provide consumers with information and educational materials regarding the program to promote the recycling and reuse of used covered television devices and used covered computer monitor devices.

3.  Achieve environmentally sound management for covered television devices and covered computer monitor devices that are collected for reuse and recycling.

4.  Incorporate economic arrangements that minimize costs to participating manufacturers.

C.  The representative organization's plan must:

1.  Document how the collection component of the plan was developed with input from local government recycling representatives and other stakeholders interested in electronics recycling, especially recycling of used covered television devices and used covered computer monitor devices.

2.  Identify each manufacturer and local government participating in the consumer electronic device stewardship programs included in the representative organization's plan and the brands of consumer electronic devices sold in this state that are covered by the programs.

3.  Provide a mechanism for making the most current list of participating manufacturers available to the department.

4.  Include incentives to ensure convenient mechanisms to collect used consumer electronic devices throughout this state.

5.  Explain why a disruption of commercial activity that may arise from implementation of the plan is consistent with fulfilling the intent of this article and provide sufficient information to allow the department to confirm the consistency of the plan with this article by review of the plan's financial and operational elements.

D.  The representative organization's annual plan must include at least the following:

1.  A list of collection programs and locations available to consumers in this state.

2.  A description of the methods used to collect, transport and process used covered devices in this state.

3.  The results of a survey of county and municipal recycling representatives concerning the availability of opportunities for consumers to recycle covered devices.

4.  Samples of information awareness and educational materials provided to consumers of covered devices to promote reuse and recycling and collection opportunities for used covered devices that are available in this state.

5.  A list of participating companies for the most recent program year and the upcoming year.

6.  A list of contacts from all participating local governments who may be contacted by the department to confirm that their recycling needs are being met by manufacturers participating in the representative organization.

7.  A report of the organization's prior year's activities, including the number of covered devices collected for recycling in this state and the number and location of collection locations used during the prior year.

8.  A description of services provided to each of the local government participants including, collection event services and logistical support for electronics pick‑up.

9.  A list of manufacturers, as determined by the representative organization, failing to meet their individual recycling obligation as assigned by the representative organization and any shortfall penalties prescribed by rule.  A manufacturer so reported to the department may elect to account for the shortfall in the next program year but may elect this option only once every three years.  This paragraph does not preclude a representative organization from developing and implementing participation requirements that may otherwise exclude manufacturers from participating in the representative organization for failing to meet those participation requirements.

E.  Not later than thirty calendar days after submission of the plan pursuant to subsection B of this section, the department shall determine whether or not to approve the plan.  The department shall approve the plan for the establishment of a consumer electronic device stewardship program by the submitting representative organization if the representative organization meets the requirements of subsections B and C of this section.  If the department finds activities included in the plan that do not fulfill the requirements of subsections B and C of this section, the department shall specify in writing what the department believes to be the plan's deficiencies, promptly meet with the representative organization to discuss the department's concerns and allow the representative organization at least thirty calendar days after the denial notice is received to submit a revised plan. If a revised plan is submitted, the department shall review and approve or disapprove the plan within thirty calendar days after submission.  The department shall then proceed as follows:

1.  If the department disapproves a plan submitted pursuant to this subsection, and the representative organization chooses not to submit a revised plan or the department disapproves the revised plan, the representative organization has the right to appeal pursuant to section 49‑114.

2.  If the plan is disapproved on appeal, the representative organization may resubmit a plan that conforms with the guidance of the appellate opinion or member companies may comply with subsection K of this section.

F.  After the representative organization's plan is approved, the representative organization is responsible for maintaining continuous service to local governments specified in the plan provided by the participating consumer electronic device stewardship programs.  The representative organization shall establish fair and reasonable policies for administration and operation.

G.  Manufacturers of covered television devices or covered computer monitor devices that are participating in a plan submitted pursuant to this section and subject to a recycling assessment may choose to fulfill their recycling assessment using a consumer electronic device stewardship program that meets the elements set forth in the approved representative organization plan.

H.  The department shall maintain a list of the names of manufacturers and eligible programs complying with the requirements of this article and the brands of covered devices that are covered by the consumer electronic device stewardship program and post this list on the department's website.

I.  A representative organization and the department shall confer with stakeholders at least quarterly to address compliance, efficiency and best practices of the stewardship programs that implement the representative organization's plan.

J.  Local governments that receive recycling services from stewardship programs participating in the representative organization's plan to recycle covered television devices and covered computer monitor devices may not charge the manufacturer or the representative operating the stewardship program for collection costs and shall offer the manufacturer or its representative other covered devices collected by a participating local government at no cost.  This subsection does not obligate a local government to offer other covered devices collected by a participating local government at no cost once the representative organization's obligation within its plan to recycle covered television devices and covered computer monitor devices has been met during a program year.  A representative organization shall provide the department and each local government recycling representative a point of contact for the organization, including an e‑mail address and telephone number, to ensure communication and coordination among local governments, participating manufacturers, consumer electronic device stewardship programs and the representative organization.

K.  If a television manufacturer or computer monitor manufacturer does not participate in a representative organization, the manufacturer annually shall recycle or arrange for the recycling of covered television devices and covered computer monitor devices in the amount of eighty percent of the weight of the covered television devices and covered computer monitor devices sold by the manufacturer in this state during the previous program year.  The recycling obligation is determined as follows:

1.  The department shall notify each television manufacturer or computer monitor manufacturer of its recycling obligation by March 15 of each program year.  A television manufacturer or computer monitor manufacturer shall provide the department information as prescribed in paragraph 2 of this subsection to be used by the department to calculate each television and computer monitor manufacturer's recycling obligation under this subsection.

2.  A television or computer monitor manufacturer shall report to the department the total weight of the manufacturer's covered television devices or covered computer monitor devices sold at retail in the United States or in this state, if the information is available, and the total weight of covered devices collected and recycled in this state during the previous program year.  A manufacturer's weight‑sold data is the proprietary information of the manufacturer.

L.  A manufacturer may fulfill the requirements of this section either individually, in participation with other manufacturers or through a representative organization.  A recovery program may use existing collection and consolidation infrastructure for collecting covered devices, including local governments, retailers, recyclers and reuse organizations.

M.  A manufacturer shall provide the department with contact information for the manufacturer's designated agent or employee whom the department may contact concerning the manufacturer's compliance with the requirements of this section.

N.  Manufacturers that are not identified as participating in a representative organization plan pursuant to subsection B of this section shall comply with the requirements of subsection K of this section. END_STATUTE

START_STATUTE49-891.05.  Liability of computer, computer monitor or television manufacturers

A computer, computer monitor or television manufacturer is not liable for damages arising from information stored on a covered device collected from a consumer under the manufacturer's recovery programs of this article. END_STATUTE

START_STATUTE49-891.06.  Retailer sale requirements; exception

A.  A retailer only may sell or offer for sale a covered device that:

1.  Bears a manufacturer label as prescribed in section 49‑891.01.

2.  Is manufactured by a manufacturer that offers a recovery program as provided in this article.

B.  The requirements of this section do not apply to a television sold by a retailer for less than one hundred dollars. END_STATUTE

START_STATUTE49-891.07.  Liability of retailer

A retailer is not liable for damages arising from information stored on any covered device collected from a consumer under the manufacturer's recovery program. END_STATUTE

START_STATUTE49-891.08.  Prohibition on consumer disposal; notice

A.  After July 1, 2016, a consumer may not knowingly place or discard a covered device or subassemblies of a covered device in a waste stream that is to be disposed of in a solid waste landfill.

B.  An owner or operator of a solid waste landfill may not knowingly accept for disposal loads containing more than an incidental amount of covered devices.  The owner or operator of a solid waste landfill must post in a conspicuous location at the landfill a sign stating that covered devices or any components of covered devices are not accepted for disposal at the landfill.

C.  The owner or operator of a solid waste landfill must notify, in writing, all haulers delivering solid waste to the landfill that covered devices or any components of covered devices are not accepted for disposal at the landfill. END_STATUTE

START_STATUTE49-891.09.  Public information from department

The department shall provide information to the public on its website regarding this article and the prohibition on the disposal of covered devices in a solid waste landfill.  The department also shall provide information about recovery programs available in this state on the department's website. The website must include information about collection options available, the definition of covered devices, the proper methods for disposal of covered devices, the proper methods for disposal of noncovered devices and links to relevant portions of computer or television manufacturers' websites. END_STATUTE

START_STATUTE49-891.10.  Audits and inspections

The department may conduct audits and inspections of a computer or television manufacturer, retailer or recoverer to determine compliance with this article and may establish by regulation administrative fines for violations of this article. END_STATUTE

START_STATUTE49-891.11.  Exemptions from public disclosure

Financial and proprietary information submitted to the department pursuant to this article is exempt from title 39, chapter 1 regarding public disclosure. END_STATUTE

START_STATUTE49-891.12.  Annual solid waste report

The department shall include in its annual solid waste report information provided by manufacturers on recovery programs offered pursuant to this article. END_STATUTE

START_STATUTE49-891.13.  Recovery of covered devices; minimum compliance

A.  Covered devices must be recovered in a manner that complies with all applicable federal, state, and local requirements.  Collection and storage of covered devices must be performed pursuant to best management practices.

B.  All recycling or reuse facilities used by recoverers of covered devices must at a minimum achieve and maintain third‑party accredited certification, which may include certification programs recognized by the department or the United States environmental protection agency. Manufacturers of covered devices shall ensure that recycling or reuse facilities used as part of their recovery programs meet this requirement. Local governments and other consolidators of covered devices shall ensure that the material they collect is transferred to a recycling or reuse facility that meets this requirement. END_STATUTE

START_STATUTE49-891.14.  Rules; fees

The department shall adopt rules reasonably necessary to implement this article, which shall include rules to establish registration and other fees. END_STATUTE

START_STATUTE49-891.15.  Program termination

The program established by this article ends on July 1, 2025 pursuant to section 41-3102. END_STATUTE

Sec. 2.  Effective date

This act is effective from and after December 31, 2015.

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