SB1337 - 561R

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 12, to read:

ARTICLE 12. LARGE ELECTRONICS RECYCLING PROGRAM

START_STATUTE49-892. 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.

2. "Covered electronic device":

(a) Means:

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

(ii) a desktop computer or portable computer.

(iii) a television of any type that has 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":

(a) Means any person that either:

(i) Manufactures covered electronic devices under a brand that the person owns or is licensed to use.

(ii) Sells covered electronic devices manufactured by others under a brand that the seller owns.

(iii) Manufactures covered electronic devices without affixing a brand.

(iv) Manufactures covered electronic devices to which the person affixes a brand that the person does not own.

(v) Imports or causes to be imported into the United States covered electronic devices manufactured outside the United States.

(b) Does not include:

(i) A person with a license to manufacture covered electronic devices for delivery exclusively to or at the order of the licensor.

(ii) A small business as defined in section 41-1001.

6. "Manufacturer program" means a statewide plan for collecting, transporting and recycling covered electronic devices that is provided by a manufacturer or manufacturers pursuant to section 49-892.02.

7. "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.

8. "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.

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

10. "Sale" or "sell":

(a) 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 that conducts the transaction and controls delivery of a covered electronic device to a consumer in this state.

(b) Does not include a manufacturer's or distributor's wholesale transaction with a distributor or retailer. END_STATUTE

START_STATUTE49-892.01. Prohibition on sale; registration with department; fees

A. Beginning January 1, 2024, 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 49-892.02.

B. On or before January 1, 2024 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.

C. 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. 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, the manufacturer shall register with the department and pay a registration fee determined by the department by rule.

E. A manufacturer that begins to sell or offer for sale covered electronic devices to households after January 1, 2024 and that has not filed a registration pursuant to this section shall submit a registration to the department within ten days after beginning to sell or offering for sale covered electronic devices to households.

F. 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_STATUTE49-892.02. Manufacturer program; plan

A. A manufacturer shall submit a plan to the department at the time of payment of the annual registration fee required under section 49-892.01. The manufacturer's plan must describe how the manufacturer will:

1. Finance, manage and conduct a statewide manufacturer 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 pick up of covered electronic 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 manufacturer program may provide collection service jointly with another program.

B. The plan must include information on how and where to return the manufacturer's covered electronic devices. The manufacturer:

1. Shall include collection, recycling and reuse information on the manufacturer's publicly available website.

2. Shall provide collection, recycling and reuse information to the department.

3. May include collection, recycling and reuse information in the packaging for or in other materials that accompany the manufacturer's covered electronic devices when the device is sold.

C. Information regarding collection, recycling and reuse that is on a manufacturer's publicly available website does not constitute a determination by the department that the manufacturer's recovery plan or actual practices are in compliance with this article or any other law.

D. A manufacturer 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.

E. A group of manufacturers may choose to implement a manufacturer program as one entity. END_STATUTE

START_STATUTE49-892.03. Prohibition on consumer fees; exception

A. Except as authorized in subsection B of this section, a manufacturer program or a collector participating in a manufacturer 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_STATUTE49-892.04. Duties of department; report; rules

The department shall:

1. Maintain and make available on its website A list of registered manufacturers and their brands that identifies which manufacturers are in compliance with this article. The department shall update the list on or before the first day of each calendar quarter after July 1, 2024.

2. Review and approve manufacturer plans that comply with section 49-892.02 and that are submitted annually by manufacturers.

3. Advertise and promote collection opportunities statewide and on a regular basis.

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

5. Maintain and update the website registration information at least each calendar quarter. 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 that are qualified to sell to industrial, commercial or other markets that are identified as exempt from the requirements.

6. 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.

7. Beginning December 31, 2024 and once every two years thereafter, compile information from manufacturers and issue a report to the legislature regarding the program established pursuant to this article.

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

START_STATUTE49-892.05. Covered electronic devices fund

A. The covered electronic devices fund is established. The director shall administer the fund. The fund consists of monies from the following sources:

1. Fees collected by the department pursuant to this article.

2. Gifts, grants and donations.

3. Legislative appropriations.

4. Until July 1, 2025, monies from the recycling fund established by section 49-837, except that not more than $500,000 from the recycling fund may be transferred to the covered electronic devices fund in any fiscal year.

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.

D. Monies in the fund shall be used for the following purposes:

1. All reasonable and necessary costs to implement this article.

2. The reasonable and necessary costs of administering the fund. END_STATUTE

START_STATUTE49-892.06. Enforcement

A manufacturer or retailer that fails to comply with this article is subject to enforcement under article 5 of this chapter. END_STATUTE