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                                                      PRINTER'S NO. 4530

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 7 Session of 2006


        INTRODUCED BY ROSS, ARGALL, BALDWIN, CALTAGIRONE, CAPPELLI,
           CORNELL, CRAHALLA, DALLY, FRANKEL, GEIST, GEORGE, GERGELY,
           GINGRICH, GOODMAN, GRELL, HARPER, HERSHEY, JAMES, JOSEPHS,
           KOTIK, LEACH, LEVDANSKY, MANN, MARKOSEK, NICKOL, O'NEILL,
           RUBLEY, SIPTROTH, SONNEY, SURRA, TANGRETTI, E. Z. TAYLOR,
           TIGUE, WATSON, YOUNGBLOOD, FREEMAN, REICHLEY AND B. SMITH,
           AUGUST 16, 2006

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           AUGUST 16, 2006

                                     AN ACT

     1  Establishing a recycling program for used electronic devices;
     2     imposing duties on manufacturers and retailers of used
     3     electronic devices; and providing for the powers and duties
     4     of the Department of Environmental Protection and for
     5     enforcement.

     6                         TABLE OF CONTENTS
     7  Chapter 1.  Preliminary Provisions
     8  Section 101.  Short title.
     9  Section 102.  Definitions.
    10  Chapter 3.  Duties of Manufacturers and Retailers
    11  Section 301.  Sales prohibition.
    12  Section 302.  Labeling requirement.
    13  Section 303.  Reporting and registration.
    14  Section 304.  Manufacturer responsibility.
    15  Section 305.  Retailer responsibility.
    16  Chapter 5.  Administration


     1  Section 501.  Duties of department.
     2  Section 502.  Fees for collection or recycling of covered
     3                 electronic products.
     4  Section 503.  Reimbursement for collection, transportation
     5                 and recycling.
     6  Section 504.  Environmentally sound management requirements.
     7  Section 505.  Disposal ban.
     8  Section 506.  Enforcement.
     9  Section 507.  Regulations.
    10  Section 508.  Multistate implementation.
    11  Chapter 7.  Miscellaneous Provisions
    12  Section 701.  Relation to Federal law.
    13  Section 702.  Effective date.
    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16                             CHAPTER 1
    17                       PRELIMINARY PROVISIONS
    18  Section 101.  Short title.
    19     This act shall be known and may be cited as the Used
    20  Electronic Device Recycling Act.
    21  Section 102.  Definitions.
    22     The following words and phrases when used in this chapter
    23  shall have the meanings given to them in this section unless the
    24  context clearly indicates otherwise:
    25     "Cathode ray tube" or "CRT."  A vacuum tube or picture tube
    26  used to convert an electronic signal into a visual image.
    27     "Computer."  An electronic, magnetic, optical,
    28  electrochemical or other high-speed data processing device
    29  performing logical, arithmetic or storage function. The term
    30  includes, but is not limited to, a computer central processing
    20060H0007B4530                  - 2 -     

     1  unit and a monitor. The term does not include an automated
     2  typewriter or typesetter, a portable handheld calculator, a
     3  portable digital assistant or other similar device.
     4     "Consumer."  An individual who purchases a covered electronic
     5  device in a transaction that is a retail sale.
     6     "Covered electronic device" or "CED."  A desktop or personal
     7  computer, computer monitor, portable computer, CRT-based
     8  television or non-CRT-based television sold to consumers. The
     9  term does not include any of the following:
    10         (1)  A covered electronic device that is a part of a
    11     motor vehicle or any component part of a motor vehicle
    12     assembled by or for a vehicle manufacturer or franchised
    13     dealer, including replacement part for use in a motor
    14     vehicle.
    15         (2)  A covered electronic device that is functionally or
    16     physically a part of a larger piece of equipment designed and
    17     intended for use in an industrial, commercial or medical
    18     setting, including diagnostic, monitoring or control
    19     equipment.
    20         (3)  A covered electronic device that is contained within
    21     a clothes washer, clothes dryer, refrigerator, refrigerator
    22     and freezer, microwave oven, conventional oven or range,
    23     dishwasher, room air conditioner, dehumidifier or air
    24     purifier.
    25         (4)  A telephone of any type, unless it contains a video
    26     display area greater than four inches when measured
    27     diagonally.
    28     "Covered electronic recycler."  An electronic recycler
    29  approved by the Department of Environmental Protection for
    30  compensation.
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     1     "Department."  The Department of Environmental Protection of
     2  the Commonwealth.
     3     "Manufacturer."  A person who, irrespective of the selling
     4  technique used, engages in any of the following:
     5         (1)  Manufactures covered electronic devices under its
     6     own brand for sale in this Commonwealth.
     7         (2)  Manufactures covered electronic devices for sale in
     8     this Commonwealth without affixing a brand.
     9         (3)  Resells in this Commonwealth covered electronic
    10     devices produced by other suppliers under its own brand or
    11     label.
    12         (4)  Imports or exports covered electronic devices into
    13     the United States for sale in this Commonwealth. If a company
    14     from whom an importer purchases the merchandise has a
    15     presence or assets in the United States, that company shall
    16     be deemed to be the manufacturer.
    17         (5)  Manufactures covered electronic devices, supplies
    18     them to any person or persons within a distribution network
    19     that includes wholesalers or retailers in this Commonwealth
    20     and benefits from the sale in this Commonwealth of those
    21     covered electronic devices through that distribution network.
    22     "Manufacturer's brand."  A manufacturer's name, brand name or
    23  brand label, and any manufacturer's name, brand name and brand
    24  label for which the manufacturer has legal responsibility,
    25  including any name, brand name and brand label of a company that
    26  has been acquired by the manufacturer.
    27     "Monitor."  A separate video display component of a computer,
    28  whether sold separately or together with a computer central
    29  processing unit/computer box. The term includes a cathode ray
    30  tube, liquid crystal display, gas plasma, digital light
    20060H0007B4530                  - 4 -     

     1  processing, or other image projection technology, greater than
     2  four inches when measured diagonally, and its case, interior
     3  wires and circuitry, cable to the central processing unit and
     4  power cord.
     5     "Obligation."  The quantity of covered electronic devices, by
     6  weight, identified for an individual manufacturer, as defined by
     7  the Department of Environmental Protection under section    .
     8     "Person."  An individual, trust firm, joint stock company,
     9  business concern and corporation, including, but not limited to,
    10  a government agency, partnership, limited liability company or
    11  association.
    12     "Portable computer."  A computer and video display greater
    13  than four inches in size that can be carried as one unit by an
    14  individual.
    15     "Purchase."  The taking by sale of title in exchange for
    16  consideration.
    17     "Recycling."  A process by which covered electronic devices
    18  that would otherwise become solid waste or hazardous waste are
    19  collected, separated and processed to be returned to use in the
    20  form of raw materials or products, in accordance with
    21  environmental standards established by the Department of
    22  Environmental Protection.
    23     "Registrant."  A manufacturer of covered electronic devices
    24  that is in full compliance with the requirements of this act.
    25     "Retail sales."  This term includes sales of products through
    26  sales outlets, via the Internet, mail order or other means,
    27  whether or not the seller has a physical presence in this
    28  Commonwealth.
    29     "Retailer."  A person who owns or operates a business that
    30  sells new covered electronic devices in this Commonwealth by any
    20060H0007B4530                  - 5 -     

     1  means to a consumer.
     2     "Sell" or "sale."  A transfer for consideration of title,
     3  including, but not limited to, a transaction conducted through a
     4  sales outlet, catalog, the Internet or any other similar
     5  electronic means. The term does not include a lease.
     6     "State recycling rate."  The ratio of the weight of total
     7  overall returns of CEDs in this Commonwealth to the weight of
     8  total overall sales of CEDs in this Commonwealth during the
     9  previous calendar year.
    10     "Television."  A stand-alone display system containing a CRT
    11  or any other type of display primarily designed to receive video
    12  programming via broadcast, and that has a viewable area greater
    13  than four inches when measured diagonally, is able to adhere to
    14  standard consumer video formats such as PAL, SECAM, NTSCing and
    15  HDTV and has the capability of selecting different broadcast
    16  channels and support sound capability.
    17     "Video display."  An output surface having a viewable area
    18  greater than four inches when measured diagonally that displays,
    19  using a cathode ray tube (CRT), liquid crystal display (LCD),
    20  gas plasma, digital light processing or other image projection
    21  technology, moving graphical images or a visual representation
    22  of image sequences or pictures, showing a number of quickly
    23  changing images on a screen in fast succession to create the
    24  illusion of motion, including, if applicable, a device that is
    25  an integral part of the display, and cannot be easily removed
    26  from the display by the consumer, that produces the moving image
    27  on the screen.
    28                             CHAPTER 3
    29               DUTIES OF MANUFACTURERS AND RETAILERS
    30  Section 301.  Sales prohibition.
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     1     (a)  (1)  Manufacturers.--A manufacturer who is not in
     2     compliance with all financial and other requirements of this
     3     act is prohibited from offering a covered electronic device
     4     for sale in this Commonwealth.
     5         (2)  It is unlawful for an entity to offer for sale in
     6     this Commonwealth a new covered electronic device from a
     7     manufacturer that is not in full compliance with the
     8     requirements of this act.
     9     (b)  List to be maintained by department.--The department
    10  shall maintain a list of all manufacturers in compliance with
    11  the requirements of this act and post the list on an Internet
    12  website.
    13     (c)  Duty of sellers to consult list.--
    14         (1)  A seller of products in or into this Commonwealth
    15     shall consult the list prior to selling covered electronic
    16     devices in this Commonwealth.
    17         (2)  A seller shall be considered to have complied with
    18     paragraph (1) if, on the date that the product was ordered
    19     from the manufacturer or its agent, the manufacturer was
    20     listed as being in compliance on the Internet website
    21     identified in subsection (b).
    22  Section 302.  Labeling requirement.
    23     On and after the effective date of this act, a manufacturer
    24  or retailer may not sell or offer for sale a covered electronic
    25  product in this Commonwealth unless it is labeled with the
    26  manufacturer's brand and the label is permanently affixed and
    27  readily visible.
    28  Section 303.  Reporting and registration.
    29     (a)  General rule.--Except as otherwise provided under
    30  subsection (b), a manufacturer of covered electronic devices
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     1  shall report to the department by January 30 of each year the
     2  total weight of CEDs sold in this Commonwealth the previous
     3  calendar year.
     4     (b)  Exception.--In lieu of providing the total weight of
     5  CEDs sold in this Commonwealth the previous calendar year under
     6  subsection (a), a manufacturer may request that the department
     7  calculate the total weight of CEDs sold in this Commonwealth by
     8  using prorated national sales data based on population in this
     9  Commonwealth.
    10     (c)  Registration.--Each manufacturer of covered electronic
    11  devices shall register with the department by January 30 of each
    12  year and pay a registration fee of $5,000.
    13  Section 304.  Manufacturer responsibility.
    14     (a)  Additional fee.--Except as otherwise provided under
    15  subsection (b), a manufacturer of CEDs sold in this Commonwealth
    16  shall submit to the department an additional fee based on sales
    17  in this Commonwealth. The fee shall be calculated using the
    18  following formula: the State recycling rate multiplied by the
    19  weight of sales of the manufacturer's covered electronic devices
    20  sold in this Commonwealth during the previous calendar year,
    21  multiplied by $0.50 per pound.
    22     (b)  Exception.--
    23         (1)  In lieu of payment of the fee set forth in
    24     subsection (a), a manufacturer or group of manufacturers may
    25     submit to the department in accordance with subsection (d) a
    26     plan to collect, transport and recycle CEDs.
    27         (2)  An individual manufacturer submitting a plan in lieu
    28     of payment of the fee set forth in subsection (a) must
    29     collect, transport and recycle a quantity of CEDs equal to
    30     the weight of sales of the manufacturer's covered electronic
    20060H0007B4530                  - 8 -     

     1     devices in this Commonwealth during the previous calendar
     2     year multiplied by the State recycling rate.
     3         (3)  A group of manufacturers that jointly submits a plan
     4     in lieu of payment of the fee set forth in subsection (a)
     5     shall collect, transport and recycle the sum of the
     6     obligations of each participating manufacturer.
     7     (c)  Contents of plan.--The plan required under subsection
     8  (b) must be filed with a manufacturer's annual registration and
     9  shall include at a minimum:
    10         (1)  Methods that will be used to collect the CEDs,
    11     including the name and locations of all collection and
    12     consolidation points.
    13         (2)  An estimate of the amount of CEDs that will be
    14     collected annually.
    15         (3)  The processes and methods that will be used to
    16     recycle recovered CEDs, including a description of the
    17     disassembly, physical recovery operation, whether the
    18     operation involves crushing, shredding, grinding, glass to
    19     glass recycling, and other operations. The name and location
    20     of all facilities to be utilized shall be included.
    21         (4)  Documentation of audits of each processor used in
    22     the plan and compliance with processing standards established
    23     under section 504.
    24         (5)  A description of the accounting and reporting
    25     systems that will be employed to track progress toward
    26     fulfilling the plan's obligations.
    27         (6)  Means that will be utilized to publicize the
    28     collection opportunities.
    29         (7)  The intention of the registrant to fulfill its
    30     obligations through operation of its own program, either
    20060H0007B4530                  - 9 -     

     1     individually or in partnership with other manufacturers.
     2         (8)  The total weight of CEDs collected, transported and
     3     recycled the previous year.
     4     (d)  Approval of plan.--
     5         (1)  The department shall review a plan submitted to it
     6     under subsection (b). If the department approves the plan,
     7     the manufacturer shall be relieved of the duty to pay the
     8     annual fees based upon sales.
     9         (2)  The department may reject the plan in part or in
    10     whole and may impose additional requirements as a condition
    11     of approval.
    12     (e)  Effect of failure to comply with approved plan.--A
    13  manufacturer that fails to comply with all the conditions and
    14  terms of an approved plan shall submit the following to the
    15  department:
    16         (1)  A payment to cover the cost of collecting,
    17     transporting and recycling the unmet portion of its
    18     obligation. The payment shall be equal to the following
    19     formula:  the quantity of the outstanding portion, in pounds,
    20     multiplied by no more than $0.50.
    21         (2)  A penalty in the form of a payment equal to the cost
    22     of collecting, transporting and recycling 10% of the
    23     manufacturer's total obligation.
    24     (f)  Credits.--A manufacturer that collects, transports and
    25  recycles CEDs in excess of its obligation may sell credits to
    26  another registrant or apply that excess to the following year's
    27  recycling obligation.
    28  Section 305.  Retailer responsibility.
    29     (a)  Public notice.--A retailer shall clearly post and
    30  provide information provided by the department that describes
    20060H0007B4530                 - 10 -     

     1  where and how to recycle a covered electronic device and
     2  opportunities and locations for the collection or return of the
     3  device, through the use of a toll-free telephone number and
     4  Internet website, information included in the packaging or
     5  information provided accompanying the sale of the covered
     6  electronic device.
     7     (b)  Sales from registrants.--
     8         (1)  A retailer may only sell products obtained from
     9     registrants. A retailer shall consult the list described in
    10     section 301 prior to selling covered electronic devices in
    11     this Commonwealth.
    12         (2)  A retailer shall be considered to have complied with
    13     paragraph (1) if on the date that the product was ordered
    14     from the manufacturer or its agent, the manufacturer was
    15     listed as being in compliance on the Internet website.
    16                             CHAPTER 5
    17                           ADMINISTRATION
    18  Section 501.  Duties of department.
    19     The department shall:
    20         (1)  By February 15 of each year, establish the State
    21     recycling rate, by calculating the ratio of the weight of
    22     total overall returns of CEDs in this Commonwealth to the
    23     weight of total overall sales of CEDs in this Commonwealth
    24     during the previous calendar year.
    25         (2)  By March 1 of each year, provide each registrant
    26     with its responsibility for fees from sales or for
    27     collection, recycling and transportation in pounds for that
    28     year.
    29         (3)  Receive fees as described in section 304 from
    30     manufacturers for the sale of covered electronic devices.
    20060H0007B4530                 - 11 -     

     1         (4)  Organize, administer and ensure that at least one
     2     electronics collection opportunity is available at least five
     3     days a week in each county and in such a manner as to be
     4     convenient, to the maximum extent feasible, to all consumers
     5     in the county.
     6         (5)  Ensure that collection sites do not place limits on
     7     the number of covered electronic devices permitted for drop-
     8     off by consumers.
     9         (6)  Encourage the use of existing collection and
    10     consolidation infrastructures for handling CEDs to the extent
    11     that this infrastructure is accessible on a regular and
    12     ongoing basis to at least 85% of the population of this
    13     Commonwealth, is cost effective and meets the environmentally
    14     sound management requirements of section 504.
    15         (7)  Maintain a list of registrants and post the list on
    16     an Internet website that is updated at least once a month.
    17         (8)  Organize and coordinate public education and
    18     outreach.
    19         (9)  Use the revenues received from registrants for the
    20     sole purpose of fulfilling its responsibilities under this
    21     act. In the event that expenses from administration,
    22     education, collection, transportation and recycling
    23     activities exceed receipts, the department may borrow up to
    24     10% of the projected annual State revenues from fees
    25     submitted under this act from outside sources. Borrowed funds
    26     must be repaid within two years.
    27         (10)  Prepare a plan every three years that:
    28             (i)  Establishes per capita collection and recycling
    29         goals.
    30             (ii)  Identifies any necessary actions by the
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     1         Commonwealth to expand collection opportunities to
     2         achieve the per capita collection and recycling goals.
     3         The plan shall be posted on the department's Internet
     4         website and sent to the General Assembly.
     5         (11)  Report annually:
     6             (i)  A list of all parties that the department has
     7         designated as approved to receive payments for
     8         collection, transportation or recycling, the amount of
     9         payments it has made to those parties and the purpose of
    10         those payments.
    11             (ii)  The total weight of CEDs collected in this
    12         Commonwealth the previous calendar year.
    13             (iii)  The total weight of CEDs sold in this
    14         Commonwealth the previous calendar year.
    15             (iv)  Progress toward achieving the overall annual
    16         total recovery and recycling goals described in the plan
    17         identified in paragraph (10).
    18             (v)  A complete listing of all collection sites
    19         operating in this Commonwealth in the prior calendar
    20         year, the parties that operated them and the amount of
    21         material by weight collected at each site.
    22             (vi)  An evaluation of the effectiveness of the
    23         education and outreach program.
    24             (vii)  An evaluation of the existing collection and
    25         processing infrastructure.
    26         (12)  Post the report on its Internet website.
    27         (13)  Conduct a full audit by an independent, certified
    28     public accountant at the end of each calendar year of the
    29     program implemented to effect the provisions of this act. The
    30     audit report shall be submitted to the General Assembly.
    20060H0007B4530                 - 13 -     

     1         (14)  Maintain an Internet website and toll-free
     2     telephone number complete with up-to-date listings of where
     3     consumers can bring covered electronic products for recycling
     4     under this act.
     5         (15)  Not be held financially liable or responsible for
     6     any violation of Federal, State or local law by any entity to
     7     whom the department makes payment pursuant to section 502.
     8         (16)  No more frequently than annually and no less
     9     frequently than biennially, review, at a public hearing the
    10     amount of the CED recycling and registration fee. Recommended
    11     changes to the covered electronic device recycling rate and
    12     registration fees shall be included in the annual report.
    13  Section 502.  Fees for collection or recycling of covered
    14                 electronic products.
    15     No manufacturer or retailer may charge a fee or cost to a
    16  consumer for the collection, transportation or recycling of a
    17  covered electronic product.
    18  Section 503.  Reimbursement for collection, transportation and
    19                 recycling.
    20     (a)  General rule.--The department shall:
    21         (1)  Engage in competitive bidding for the collection,
    22     transportation and recycling of covered electronic devices.
    23         (2)  Make covered electronic device payments for the
    24     collection, transportation and recycling of covered
    25     electronic devices to an authorized or approved entity upon
    26     receipt of a claim including a completed and verified invoice
    27     submitted to the department in the form and manner determined
    28     by the department.
    29     (b)  Proof of claim.--In order to receive payment, proof must
    30  be submitted that:
    20060H0007B4530                 - 14 -     

     1         (1)  The covered electronic device was collected from a
     2     consumer who is a resident of this Commonwealth or is
     3     otherwise located in this Commonwealth or who provides
     4     evidence that the device was purchased in this Commonwealth
     5     after the effective date of this section.
     6         (2)  Collection, transportation and recycling of the CED
     7     was conducted in accordance with all Federal, State and local
     8     laws, including the requirements created by this act and any
     9     regulations.
    10         (3)  Certification that no fees or costs were charged to
    11     the consumer.
    12  Section 504.  Environmentally sound management requirements.
    13     (a)  General rule.--Covered electronic devices collected
    14  through any program in this Commonwealth, whether by a
    15  manufacturer, retailer, for-profit or not-for-profit corporation
    16  or unit of government, shall be recycled in a manner that is in
    17  compliance with all applicable Federal, State and local laws,
    18  regulations and ordinances and shall not be exported for
    19  disposal in a manner that poses a significant risk to the public
    20  health or the environment.
    21     (b)  Performance requirements.--The department shall
    22  establish performance requirements in order for collectors,
    23  transporters and recyclers to be eligible to receive funds from
    24  the department. All entities shall, at a minimum, demonstrate
    25  compliance with the Environmental Protection Agency's Guidance
    26  on Environmentally Sound Management of Electronic Devices as
    27  issued and available on the Internet website in addition to any
    28  other requirements mandated by Federal or State law.
    29     (c)  Department to maintain Internet website.--The department
    30  shall maintain an Internet website that includes a list of
    20060H0007B4530                 - 15 -     

     1  entities and organizations that it has determined have met these
     2  performance standards.
     3  Section 505.  Disposal ban.
     4     Two years after the effective date of this section, no person
     5  may place in municipal solid waste a covered electronic device
     6  or any of the components or subassemblies thereof in any solid
     7  waste disposal facility.
     8  Section 506.  Enforcement.
     9     (a)  General rule.--The Commonwealth, through the Attorney
    10  General and department, shall be authorized to initiate
    11  independent action to enforce any provision of this act,
    12  including failure by the manufacturer to remit the fee to the
    13  department. Any funds awarded by the court shall be used first
    14  to offset enforcement expenses. Money in excess of the
    15  enforcement expenses shall be deposited with the department.
    16     (b)  Offenses.--It shall be a violation of this act for any
    17  person to:
    18         (1)  Sell a new CED that is not in full compliance with
    19     the provisions of this act.
    20         (2)  Apply for compensation for the collection,
    21     transportation and recycling of covered electronic products
    22     not collected within this Commonwealth as provided in section
    23     508.
    24         (3)  Use a qualified collection program to recycle
    25     covered electronic products not discarded within this
    26     Commonwealth as provided in section 508.
    27         (4)  Knowingly fail to report or accurately report any
    28     data required to be reported to the department under this
    29     act.
    30         (5)  Fail to pay fees required to be paid under this act.
    20060H0007B4530                 - 16 -     

     1  Section 507.  Regulations.
     2     The department may adopt rules and regulations as shall be
     3  necessary for the purpose of administering this act.
     4  Section 508.  Multistate implementation.
     5     The department may participate in the establishment and
     6  implementation of a regional, multistate organization or compact
     7  to assist in carrying out the requirements of this act.
     8                             CHAPTER 7
     9                      MISCELLANEOUS PROVISIONS
    10  Section 701.  Relation to Federal law.
    11     This act is intended to govern all aspects of the collection
    12  and recycling of covered electronic devices. Upon the
    13  implementation of an acceptable national program to collect or
    14  recycle covered electronic devices, the provisions of this act
    15  shall expire within the time frame determined by Federal law.
    16  The department shall publish such expiration as a notice in the
    17  Pennsylvania Bulletin.
    18  Section 702.  Effective date.
    19     This act shall take effect January 1, 2007.








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