HB2614 - 492R

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. LARGE ELECTRONICS RECYCLING PROGRAM

START_STATUTE49-891. Definitions

In this article, unless the context otherwise requires:

1. "Collector" means an entity that collects covered electronic devices as part of a manufacturer program or the state contractor program.

2. "Covered electronic device":

(a) Means:

(i) a computer monitor of any type having a viewable area greater than four inches measured diagonally.

(ii) a desktop computer or portable computer.

(iii) a television of any type having a viewable area greater than four inches measured diagonally.

(b) Does not include:

(i) any part of a motor vehicle.

(ii) any part of a larger piece of equipment designed and intended for use in an industrial, commercial or medical setting, such as diagnostic, monitoring or control equipment.

(iii) telephones or personal digital assistants of any type unless the telephone or personal digital assistant contains a viewable area greater than four inches measured diagonally.

(iv) any part of a clothes washer, clothes dryer, refrigerator, freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier or air purifier.

3. "Covered entity" means any household or business.

4. "Household" means an occupant of a single detached dwelling unit or a single unit of a multiple dwelling unit located in this state who has used a covered electronic device at a dwelling unit primarily for personal use.

5. "Manufacturer" means any person that manufactures covered electronic devices under a brand that it owns or is licensed to use, that sells covered electronic devices manufactured by others under a brand that the seller owns, that manufactures covered electronic devices without affixing a brand, that manufactures covered electronic devices to which it affixes a brand that it does not own or on whose account covered electronic devices manufactured outside the United States are imported into the United States. Manufacturer does not include a person with a license to manufacture covered electronic devices for delivery exclusively to or at the order of the licensor.

6. "Manufacturer program" means a statewide plan for collecting, transporting and recycling covered electronic devices that is provided by a single manufacturer or group of manufacturers pursuant to section 49-891.02.

7. "Orphan device" means a covered electronic device for which no manufacturer can be identified.

8. "Portable computer" means any of the following that has a viewable area greater than four inches measured diagonally and that can be carried as one unit by an individual:

(a) A laptop computer.

(b) A notebook computer.

9. "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.

10. "Retailer" means a person who sells, rents or leases through sales outlets, catalogs or the internet covered electronic devices to a household and not for resale in any form.

11. "Return share" means the minimum percentage of covered electronic devices that an individual manufacturer is responsible for collecting, transporting and recycling.

12. "Return share by weight" means the minimum total weight of covered electronic devices that an individual manufacturer is responsible for collecting, transporting and recycling.

13. "Sale" or "sell" means any transfer for consideration of title or of the right to use, by lease or sales contract including transactions conducted through sales outlets, catalogs or the internet or any other similar electronic means either inside or outside of this state, by a person who conducts the transaction and controls delivery of a covered electronic device to a consumer in this state, but does not include a manufacturer's or distributor's wholesale transaction with a distributor or retailer.

14. "State contractor program" means the statewide program for collecting, transporting and recycling covered electronic devices that is provided by the department for manufacturers that pay a recycling fee to the department pursuant to this article. END_STATUTE

START_STATUTE49-891.01. Prohibition on sale; registration with department; fees

A. Beginning January 1, 2011, a manufacturer or retailer may not sell or offer for sale any covered electronic device in or for delivery in this state unless both of the following apply:

1. The covered electronic device is labeled with a brand and the label is permanently affixed and readily visible.

2. The brand is included in the plan that is filed with the department pursuant to section 49-891.02.

B. On or before January 1, 2011 and each year thereafter, a manufacturer of covered electronic devices sold or offered for sale in this state shall register with the department, for a period to cover the upcoming calendar year, on a form provided by the department. The registration shall include information required by the department by rule.

C. Beginning in 2011, not later than July 1 of each year, a manufacturer of covered electronic devices sold or offered for sale in this state shall pay to the department an annual registration fee determined by the department by rule.

D. On or before September 1 each year, a manufacturer that participates in the state contractor program shall pay to the department a fee determined by the department by rule.

E. If a manufacturer ceases to manufacture, sell or import covered electronic devices and covered electronic devices manufactured, sold or imported by the manufacturer are collected for recycling under a manufacturer program or the state contractor program, the manufacturer shall register with the department and pay a registration fee determined by the department by rule.

F. A manufacturer that begins to sell or offer for sale covered electronic devices to households after January 1, 2011 and that has not filed a registration pursuant to this section shall submit a registration to the department within ten days of beginning to sell or offer for sale covered electronic devices to households.

G. A manufacturer shall update its registration within ten days after a change in the manufacturer's brands of covered electronic devices sold or offered for sale to households. END_STATUTE

START_STATUTE49-891.02. Manufacturer program; plan; return share

A. A manufacturer that chooses to implement a manufacturer program shall submit a plan to the department at the time of payment of the annual registration fee required under section 49-891.01. The manufacturer's plan must describe how the manufacturer will:

1. Finance, manage and conduct a statewide program to collect covered electronic devices from covered entities in this state.

2. Provide for environmentally sound management practices to collect, transport and recycle covered electronic devices.

3. Provide for advertising and promotion of collection opportunities statewide and on a regular basis.

4. Include convenient service in every county in this state and at least one collection site for any city with a population of at least fifty thousand persons. Convenient service may include one or more periodic opportunities to drop off covered electronic devices at one or more locations. Convenient service does not require household pickup of covered devices. A collection site for a county may be the same as a collection site for a city in the county. Collection sites shall be staffed and open to the public at a frequency adequate to meet the needs of the area being served. A program may provide collection service jointly with another program.

B. A manufacturer that chooses to implement a manufacturer program shall:

1. Meet or exceed the requirements for collection sites described in subsection A of this section.

2. Provide for collection, transportation and recycling of covered electronic devices for covered entities free of charge, except that a manufacturer that provides premium service for a covered entity may charge for the additional cost of that premium service. Premium service may include pickup service at individually scheduled times and locations and may include minimum requirements for the quantity of covered electronic devices to be picked up.

3. Implement the plan required under this section.

C. A group of manufacturers may choose to implement a manufacturer program as one entity, if in doing so the manufacturers meet the sum of their individual return shares by weight under section 49-891.04 and that sum is at least five per cent.

D. On or before July 1 of each year, a manufacturer that does not meet its return share by weight for the previous calendar year shall pay the department for the amount not achieved at a rate determined by the department by rule.

E. A manufacturer participating in the state contractor program under section 49-891.04 shall notify the department at the time of its registration each year.

F. Except as provided in subsection C of this section, a manufacturer with less than a five per cent return share is required to participate in the state contractor program under section 49-891.04. END_STATUTE

START_STATUTE49-891.03. Prohibition on consumer fees; exception

A. Except as authorized in subsection B, a manufacturer program, the state contractor program or a collector participating in a manufacturer program or the state contractor program may not charge a fee to covered entities for the collection, transportation or recycling of covered electronic devices.

B. A collector that provides a premium service to a covered entity may charge for the additional cost of providing the premium service. END_STATUTE

START_STATUTE49-891.04. Duties of department; rules

The department shall:

1. Maintain and make available on its website the following lists, which must be updated on or before the first day of each month:

(a) A list of registered manufacturers and their brands.

(b) A list of brands for which no manufacturer has registered.

2. Review and approve manufacturer plans that comply with section 49‑891.02 and that are submitted annually by manufacturers choosing to implement a manufacturer program for recycling covered electronic devices.

3. Determine the return share and return share by weight for each calendar year for each manufacturer. The return share shall be determined by dividing the total weight of covered electronic devices of that manufacturer's brands by the total weight of covered electronic devices for all manufacturers' brands. The return share by weight shall be determined by multiplying the return share for each such manufacturer by the total weight in pounds of covered electronic devices, including orphan devices, collected from covered entities the previous calendar year. For 2011 and 2012, the department shall determine the return share and return share by weight for each manufacturer based on the best available public return share data and public weight data from within the United States for covered electronic devices from covered entities. For subsequent years, the return share of covered electronic devices for each manufacturer shall be based on the most recent annual sampling or count of covered electronic devices. For subsequent years, the total weight in pounds of covered electronic devices shall be based on the total weight of covered electronic devices, including orphan devices, determined by the department. On or before May 1 of each year, the department shall provide to each manufacturer that had a return share determined under this section its return share and its return share by weight for the following year.

4. Establish a state contractor program for the collection, transportation and recycling of covered electronic devices from covered entities in this state. The state contractor program shall:

(a) To the extent practicable, use existing local collection, transportation and recycling infrastructure.

(b) Use environmentally sound management practices to collect, transport and recycle covered electronic devices.

(c) Provide for covered entities, free of charge, convenient and available collection services and sites for covered electronic devices in both rural and urban areas.

(d) Advertise and promote collection opportunities statewide and on a regular basis.

(e) Conduct a statistically significant sampling or actual count of the covered electronic devices collected and recycled by the state contractor program during each calendar year using a methodology approved by the department and prepare a report no later than March 1 of the following calendar year that includes:

(i) A list of all brands identified during the sampling or count.

(ii) The weight of covered electronic devices identified for each brand during the sampling or count.

(iii) The total weight of covered electronic devices, including orphan devices, collected from covered entities in the state by the state contractor program during the previous calendar year.

5. Review each registration and notify the manufacturer of any information required by this section that is omitted from the registration. within thirty days after receipt of a notification from the department, the manufacturer shall submit a revised registration providing the information noted by the department.

6. Maintain and update the website registration information promptly on receipt of a new or updated registration. The website shall contain prominent language stating that the law requiring registration is directed at household equipment and the manufacturers' brands list is not a list of manufacturers who are qualified to sell to industrial, commercial or other markets that are identified as exempt from the requirements.

7. Maintain on its website information on collection opportunities for covered electronic devices, including collection site locations and hours. The information must be made available in a printable format for retailers.

8. Report biennially to the legislature on the operation of the statewide system for collection, transportation and recycling of covered electronic devices.

9. Adopt rules as necessary to implement this article. END_STATUTE

START_STATUTE49-891.05. Covered electronic devices fund

A. The covered electronic devices fund is established consisting of fees collected by the department under this article. The department shall administer the fund.

B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided in section 35-313, and monies earned from investment shall be credited to the fund.

C. Monies in the fund are continuously appropriated to the department and may be used only to pay the costs of implementing and enforcing this article. END_STATUTE

START_STATUTE49-891.06. Disposal prohibition; civil penalty

A. Beginning January 1, 2013, a person shall not dispose of and a solid waste facility shall not knowingly receive for disposal a covered electronic device.

B. The department may defer the prohibition prescribed in subsection A in any area in which the director determines there is an inadequate system for the collection, transportation and recycling of covered electronic devices.

C. Beginning January 1, 2013, a person shall not dispose of a covered electronic device in a landfill.

D. A person, including a manufacturer, retailer or consumer or an owner or operator of a solid waste facility, who violates this article is subject to a civil penalty of not more than ten thousand dollars per day for each day of violation. END_STATUTE

START_STATUTE49-891.07. Program termination

The program established by this article ends on July 1, 2020 pursuant to section 41-3102. END_STATUTE