1.1 	A bill for an act
1.2 	relating to environment; providing for the recovery
1.3 	and recycling of waste electronic products; providing
1.4 	penalties; appropriating money; proposing coding for
1.5 	new law in Minnesota Statutes, chapter 116H.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [116H.55] DEFINITIONS.
1.8 		Subdivision 1.Scope. For the purposes of this chapter,
1.9 	the following terms have the meanings given.
1.10 		Subd. 2.Cathode ray tube or crt. "Cathode ray tube" or
1.11 	"CRT" means a vacuum tube or picture tube used to convert an
1.12 	electronic signal into a visual image.  It is composed primarily
1.13 	of glass, and is the video display component of a television or
1.14 	computer monitor, and includes other items integrally attached
1.15 	to the CRT.
1.16 		Subd. 3.Computer monitor. "Computer monitor" means an
1.17 	electronic device that is a cathode ray tube or flat panel
1.18 	display primarily intended to display information from a central
1.19 	processing unit or the Internet.  Computer monitor includes a
1.20 	laptop computer.
1.21 		Subd. 4.Full truckload. "Full truckload" means a
1.22 	quantity weighing 17,500 pounds or more of video display devices.
1.23 		Subd. 5.Hennepin county study. "Hennepin County study"
1.24 	means the Hennepin County Consumer Electronics Brand Tally,
1.25 	published January 2005.
2.1 		Subd. 6.Household. "Household" means an occupant of a
2.2 	single detached dwelling unit or a single unit of a multiple
2.3 	dwelling unit who has used a video display device at a dwelling
2.4 	unit primarily for personal use.
2.5 		Subd. 7.Intermediate consolidation point. "Intermediate
2.6 	consolidation point" means a facility in the state approved by
2.7 	the Office of Environmental Assistance pursuant to section
2.8 	116H.65, paragraph (d), clause (3), where local governments or a
2.9 	private hauler or recycler with whom a local government has
2.10 	contracted, and households can deliver for consolidation video
2.11 	display devices generated by households and destined for
2.12 	recycling, refurbishment, or reuse.  The facility may be
2.13 	operated by a private entity or a local unit of government, and
2.14 	must be capable of consolidating a full truckload of video
2.15 	display devices from households in accordance with all
2.16 	applicable federal, state, and local laws, rules, regulations,
2.17 	and ordinances.
2.18 		Subd. 8.Manufacturer. "Manufacturer" means a person who:
2.19 	(1) manufactures video display devices to be sold under its
2.20 	own brand as identified by its own brand label; or 
2.21 	(2) sells video display devices manufactured by others
2.22 	under its own brand as identified by its own brand label.
2.23 	Subd. 9.[MANUFACTURER'S BRANDS.] "Manufacturer's brands"
2.24 	means a manufacturer's name, brand name, or brand label, and all
2.25 	manufacturers' names, brand names, and brand labels for which
2.26 	the manufacturer has legal responsibility, including those
2.27 	manufacturers' names, brand names, and brand labels of companies
2.28 	that have been acquired by the manufacturer.
2.29 		Subd. 10.Office. "Office" means the Office of
2.30 	Environmental Assistance.
2.31 		Subd. 11.Orphan waste. "Orphan waste" means a video
2.32 	display device covered by this section for which (1) no
2.33 	manufacturer can be identified; or (2) the manufacturer no
2.34 	longer exists and no successor can be identified.
2.35 		Subd. 12.Pickup. "Pickup" means transporting for
2.36 	recycling a full truckload of video display devices from
3.1 	intermediate consolidation points.
3.2 		Subd. 13.Pro rata share. "Pro rata share" means the
3.3 	proportion, multiplied by 100 and rounded up to one decimal
3.4 	place, of the total weight of video display devices bearing the
3.5 	manufacturer's brands registered by a registrant that is
3.6 	received at intermediate consolidation points divided by the
3.7 	total weight of video display devices received at intermediate
3.8 	consolidation points, as determined by the sampling program at
3.9 	intermediate consolidation points pursuant to section 116H.65,
3.10 	paragraph (d), clause (1).  The pro rata share for the first
3.11 	program year shall be based on the Hennepin County study.
3.12 		Subd. 14.Recycling. "Recycling" means the preparation
3.13 	of video display devices or their component materials for reuse
3.14 	in their original form, including any repair or refurbishment
3.15 	that may be performed, or the processing of video display
3.16 	devices or their component materials to recover a usable product.
3.17 	Processing does not include combustion for purposes of energy
3.18 	recovery.
3.19 		Subd. 15.Registrant. "Registrant" means a manufacturer
3.20 	that submits the registration required by section 116H.60,
3.21 	paragraph (a), or an independent party that submits the
3.22 	registration required by section 116H.60, paragraph (a), in lieu
3.23 	of a manufacturer.
3.24 		Subd. 16.Sell or sale. "Sell" or "sale" means any
3.25 	transfer for consideration of title or of the right to use, by
3.26 	lease or sales contract, including, but not limited to,
3.27 	transactions conducted through sales outlets, catalogs, or the
3.28 	Internet, or any other similar electronic means either inside or
3.29 	outside of the state, by a person who conducts the transaction
3.30 	and controls the delivery of a video display device to a
3.31 	consumer in the state, but does not include a wholesale
3.32 	transaction with a distributor or a retailer.
3.33 		Subd. 17.Television. "Television" means an electronic
3.34 	device that is a cathode ray tube or flat panel display
3.35 	primarily intended to receive video programming via broadcast,
3.36 	cable, or satellite transmission or video from surveillance or
4.1 	other similar cameras.
4.2 		Subd. 18.Video display device. "Video display device"
4.3 	means a computer monitor or television with a screen size
4.4 	greater than eight inches measured diagonally.  This does not
4.5 	include a video display device that is part of or contained in a
4.6 	motor vehicle; industrial, commercial, or medical equipment; or
4.7 	any appliance.

4.8 	Sec. 2. [116H.60] REGISTRATION PROGRAM.
4.9 	(a) On and after July 1, 2006, a retailer or manufacturer
4.10 	may not sell or offer for sale a new video display device to any
4.11 	person in the state unless:
4.12 	(1) the video display device is labeled with the
4.13 	manufacturer's brand, which label is permanently affixed and
4.14 	readily visible; and 
4.15 	(2) the video display device is subject to a registration
4.16 	filed by a registrant with the office according to this section,
4.17 	with the registration effective upon receipt by the office.
4.18 	(b) A retailer or manufacturer who sells or offers for sale
4.19 	a new video display device to a consumer in this state must,
4.20 	before initial offer for sale of the device, complete, sign, and
4.21 	maintain on-site a copy of a certification form that is
4.22 	available on the office's Web site that certifies that the
4.23 	retailer or manufacturer has reviewed the office's Web site
4.24 	specified in paragraph (i), and has determined that all new
4.25 	video display devices that the retailer or manufacturer is then
4.26 	offering for sale are labeled with manufacturers' brands that
4.27 	are subject to registration statements filed with the office.  A
4.28 	retailer is not responsible for an unlawful sale under this
4.29 	paragraph if the registration expired or was revoked and the
4.30 	retailer took possession of the video display device prior to
4.31 	the expiration or revocation of the registration and the
4.32 	unlawful sale occurred within six months after the expiration or
4.33 	revocation.
4.34 	(c) By February 1, 2006, a manufacturer of video display
4.35 	devices sold to a consumer in this state must submit a
4.36 	registration to the office that includes a certification that a
5.1 	registrant will participate in the intermediate consolidation
5.2 	point program as specified in paragraph (n) beginning July 1,
5.3 	2006.  A manufacturer who begins to sell or offer for sale video
5.4 	display devices after February 1, 2006, and has not filed a
5.5 	registration pursuant to this section must submit a registration
5.6 	to the office within ten days of beginning to sell or offer for
5.7 	sale video display devices to consumers in the state.  The
5.8 	registration is effective upon receipt by the office.
5.9 	(d) The registration must list the manufacturer's brands.
5.10 	The registration must be updated within ten days after a change
5.11 	in the manufacturer's brands, such as in the event of an
5.12 	acquisition, merger, or divestiture.
5.13 	(e) A registrant may partner with one or more manufacturers
5.14 	or other parties, collectively a "registrant," to prepare and
5.15 	submit to the office a joint video display device recycling
5.16 	program, but each manufacturer must pay a separate annual fee,
5.17 	as set forth in paragraph (f).
5.18 	(f) Each manufacturer who registers under this section must
5.19 	pay an annual fee which is deposited in an electronic waste
5.20 	account established in the environmental fund.  The fee is equal
5.21 	to $2,000 multiplied by the manufacturer's pro rata share of
5.22 	video display devices as determined under section 116H.55,
5.23 	subdivision 13.  A manufacturer registered under this section
5.24 	whose pro rata share is less than 0.25 percent must pay a
5.25 	minimum fee of $500.  Money in the electronic waste account is
5.26 	appropriated to the office for the purpose of administering the
5.27 	program.
5.28 	(g) The office shall develop procedures to administer and
5.29 	implement the program and shall present them to the legislature
5.30 	by January 15, 2006.
5.31 	(h) The office must review each registration and notify the
5.32 	registrant if the registration does not include the information
5.33 	required by this section.  Within 30 days of receipt of a
5.34 	notification from the office, the registrant must file with the
5.35 	office a revised registration providing the information noted by
5.36 	the office.
6.1 	(i) The office must maintain on its Web site the names of
6.2 	the registrants and the manufacturers' brands that are listed in
6.3 	registrations filed with the office.  The office must update the
6.4 	Web site information promptly upon receipt of a new registration
6.5 	or an updated registration.
6.6 	(j) The office must maintain on its Web site a
6.7 	certification form that a retailer or manufacturer may download
6.8 	that certifies that all new video display devices offered for
6.9 	sale by the retailer or manufacturer are labeled with
6.10 	manufacturers' brands that are subject to registration
6.11 	statements filed with the office.
6.12 	(k) The obligations of a manufacturer or registrant apply
6.13 	only to video display devices received from households in this
6.14 	state and do not apply to video display devices received from
6.15 	owners other than households.  Except to the extent otherwise
6.16 	required by law, persons recycling a video display device
6.17 	delivered to an intermediate consolidation point have no
6.18 	responsibility for any data that may be on the video display
6.19 	device if an information storage device is included with the
6.20 	video display device.
6.21 	(l) A city, county, or other public agency may not require
6.22 	households to use the intermediate consolidation point program
6.23 	to recycle their video display devices to the exclusion of other
6.24 	programs legally available.  This chapter anticipates that video
6.25 	display device recycling programs, in addition to those provided
6.26 	by manufacturers and registrants under this section, will be
6.27 	available to households in the state.  Nothing in this chapter
6.28 	prohibits or restricts any such programs or prohibits or
6.29 	restricts any persons from receiving, storing, transporting, or
6.30 	recycling video display devices.
6.31 	(m) By October 1 of each year, each registrant must submit
6.32 	a report to the office that describes the implementation of the
6.33 	program during the preceding program year.  The program year is
6.34 	July 1 through June 30.  The first report must be submitted by
6.35 	October 1, 2007.  The report must:
6.36 	(1) identify the total weight of the video display devices
7.1 	that the registrant has arranged for pickup from intermediate
7.2 	consolidation points during the preceding year, and the total
7.3 	weight of video display devices that the registrant has received
7.4 	from households through other methods during the preceding year
7.5 	and for which the registrant has used such video display devices
7.6 	to satisfy all or a portion of its pro rata share responsibility
7.7 	during the preceding year; and 
7.8 	(2) describe the processes and methods used to recycle
7.9 	video display devices that the registrant has arranged for
7.10 	pickup from intermediate collection points during the preceding
7.11 	year and that the registrant has received from households
7.12 	through other methods, and for which the registrant has used the
7.13 	video display devices to satisfy all or a portion of its pro
7.14 	rata share responsibility during the preceding year; and, in
7.15 	particular, identify any disassembly, physical recovery
7.16 	operation including crushing, shredding, grinding, or glass to
7.17 	glass recycling, or any other operation that was used and
7.18 	describe where it took place.  The report must also discuss
7.19 	whether these activities included procedures described in the
7.20 	United States Environmental Protection Agency's guidelines for
7.21 	the environmentally sound management of electronic equipment.
7.22 	(n) Participation in the intermediate consolidation point
7.23 	program requires that a registrant must:
7.24 	(1) arrange for the pickup and recycling of a full
7.25 	truckload or truckloads of video display devices received by
7.26 	intermediate consolidation points after July 1, 2006, up to the
7.27 	registrant's pro rata share of video display devices, from
7.28 	intermediate consolidation points, under procedures developed
7.29 	under paragraph (g).  Registrants are responsible for the costs
7.30 	of pickup and recycling of the video display devices.  A
7.31 	registrant may satisfy a portion or all of its pro rata share
7.32 	responsibility by receipt of video display devices from
7.33 	households through other methods if the registrant has not
7.34 	charged for the recycling of the video display devices that the
7.35 	registrant has received from households in this state through
7.36 	the other methods.  A registrant who intends to satisfy a
8.1 	portion or all of its pro rata share responsibility by receipt
8.2 	of the video display devices from households through other
8.3 	methods must provide the office with a report of its receipt of
8.4 	video display devices through the other methods on a quarterly
8.5 	basis; and 
8.6 	(2) arrange for the pickup and recycling of the
8.7 	registrant's pro rata share of orphan waste by weight from
8.8 	intermediate consolidation points, pursuant to procedures
8.9 	developed under paragraph (g).  Registrants are responsible for
8.10 	the costs of pickup and recycling of the video display devices.
8.11 	A registrant may satisfy a portion or all of its pro rata share
8.12 	responsibility by receipt of video display devices from
8.13 	households through other methods if the registrant has not
8.14 	charged for the recycling of the video display devices.
8.15 	(o) After receipt of the report required by paragraph (m)
8.16 	to be filed on October 1, 2009, the office must review the
8.17 	performance of the program and may issue performance standards
8.18 	related to the number of units collected per household.

8.19 	Sec. 3. [116H.65] DUTIES OF OFFICE.
8.20 	(a) The office must administer this chapter.
8.21 	(b) The office must establish procedures for:
8.22 	(1) receipt and maintenance of the registration statements
8.23 	and certifications filed with the office pursuant to section
8.24 	116H.60; and 
8.25 	(2) making the statements and certifications easily
8.26 	available to registrants, manufacturers, distributors,
8.27 	retailers, and members of the public.
8.28 	(c) On or before December 1, 2010, and every three years
8.29 	thereafter, the office must provide a report to the governor and
8.30 	the legislature on the implementation of this chapter.  For each
8.31 	of the preceding three program years, the report must discuss
8.32 	the total weight of video display devices received by all
8.33 	registrants from intermediate consolidation points, the total
8.34 	weight of video display devices received by each registrant from
8.35 	intermediate consolidation points, the total weight of video
8.36 	display devices that the registrant has received from households
9.1 	through other methods during the preceding year and which the
9.2 	registrant has used to satisfy all or a portion of its pro rata
9.3 	share responsibility during the preceding year, and a summary of
9.4 	information in the report submitted by registrants pursuant to
9.5 	section 116H.60, paragraph (m).  The report must also discuss
9.6 	the various collection programs used to collect video display
9.7 	devices and information received by the office regarding video
9.8 	display devices that are not being collected by the
9.9 	registrants.  The report must include a description of
9.10 	enforcement actions under this chapter and information about
9.11 	video display devices, if any, being disposed of in landfills in
9.12 	this state.  The office may include in its report other
9.13 	information received by the office regarding the implementation
9.14 	of this chapter.
9.15 	(d) The office must administer the intermediate
9.16 	consolidation point program as described in clauses (1) to (6).
9.17 	(1) The office must calculate pro rata shares for video
9.18 	display devices on an annual program year basis for each
9.19 	registrant.  Pro rata shares for the first program year must be
9.20 	determined by the office by May 1, 2006, using the Hennepin
9.21 	County study.  For each subsequent year, pro rata shares must be
9.22 	determined by May 1 of the preceding year based upon an annual
9.23 	sampling survey conducted by the office at intermediate
9.24 	consolidation points during that preceding year.  The sampling
9.25 	survey must identify televisions and computer monitors
9.26 	separately, and calculate the weight of televisions and computer
9.27 	monitors separately.  The office may provide registrants with
9.28 	projections or estimates of the amount by weight of video
9.29 	display devices for which the registrant may be responsible
9.30 	during a given program year.
9.31 	(2) The office must establish, under procedures developed
9.32 	under section 116H.60, paragraph (g), a system to coordinate
9.33 	among registrants pickups from intermediate consolidation points
9.34 	after an intermediate consolidation point has notified the
9.35 	office that a full truckload of video display devices from
9.36 	households or from local units of government that have collected
10.1 	video display devices from households has been consolidated.  A
10.2 	registrant, before dispatching a truck to an intermediate
10.3 	consolidation point for pickup, shall contact the intermediate
10.4 	consolidation point to ascertain the truck capacity needed and
10.5 	estimated pickup time.  For each pickup, a registrant shall be
10.6 	credited 17,500 pounds towards its pro rata share or the actual
10.7 	weight of video display devices, whichever is greater.  The
10.8 	office must provide a program year accounting of the extent to
10.9 	which each registrant met its pro rata share responsibility as
10.10 	established pursuant to section 116H.60, paragraph (n), and
10.11 	methods for addressing amounts greater than or less than a
10.12 	registrant's pro rata share responsibility that were picked up
10.13 	and recycled by a registrant during the program year.
10.14 	(3) By February 1, 2006, the office must receive
10.15 	applications for the establishment of intermediate consolidation
10.16 	points.  The director must seek to receive at least 15
10.17 	applications with at least ten of the applications from outside
10.18 	the metropolitan area.  By April 30, 2006, the office must
10.19 	establish a list of approved intermediate consolidation points
10.20 	and must provide the list on its Web site.
10.21 	(4) Applications for the establishment of intermediate
10.22 	consolidation points must specify any method that will be used
10.23 	to ensure that video display devices will be collected only from
10.24 	households or that video display devices from households will be
10.25 	segregated from other video display devices.
10.26 	(5) An application to establish an intermediate
10.27 	consolidation point must include:
10.28 	(i) the geographic location served;
10.29 	(ii) projected quantities of video display devices to be
10.30 	collected;
10.31 	(iii) financial data demonstrating the economic viability
10.32 	of the facility;
10.33 	(iv) proposed hours of operation; and 
10.34 	(v) a plan to promote the facility in the community and to
10.35 	educate consumers regarding its operations.
10.36 	(6) An applicant seeking to establish an intermediate
11.1 	consolidation point shall include with the application
11.2 	certification that the applicant agrees:
11.3 	(i) not to recycle video display devices unless the
11.4 	applicant has signed a contract with one or more registrants to
11.5 	recycle video display devices delivered to the intermediate
11.6 	consolidation point; and 
11.7 	(ii) not to accept video display devices from haulers or
11.8 	recyclers that appear to the operator of the intermediate
11.9 	consolidation point to have been recycled prior to shipment to
11.10 	the intermediate consolidation point.
11.11 	(e) The office may contract with a third party to perform
11.12 	one or more of the office's duties set forth in this paragraph
11.13 	with respect to intermediate consolidation points.  The contract
11.14 	must specify that the third party's activities must be carried
11.15 	out in accord with the procedures developed in section 116H.60,
11.16 	paragraph (g).

11.17 	Sec. 4. [116H.75] REQUIREMENTS FOR PURCHASES BY STATE
11.18 	AGENCIES.
11.19 	(a) The Department of Administration must ensure that
11.20 	acquisitions of video display devices under chapter 16C are
11.21 	certified by the vendor to be in compliance with section 116H.60.
11.22 	(b) The bid solicitation documents must specify that the
11.23 	prospective bidder is required to cooperate fully in providing
11.24 	reasonable access to its records and documents that evidence
11.25 	compliance with paragraph (a) and section 116H.60.
11.26 	(c) Any person awarded a contract under chapter 16C for
11.27 	purchase or lease of video display devices that is found to be
11.28 	in violation of paragraph (a) or section 116H.60, is subject to
11.29 	the following sanctions:
11.30 	(1) the contract must be voided;
11.31 	(2) the contractor is ineligible to bid on any state
11.32 	contract for a period of three years; and 
11.33 	(3) if the attorney general establishes that any money,
11.34 	property, or benefit was obtained by a contractor as a result of
11.35 	violating paragraph (a) or section 116H.60, the court may, in
11.36 	addition to any other remedy, order the disgorgement of the
12.1 	unlawfully obtained money, property, or benefit.

12.2 	Sec. 5. [116H.80] REGULATION OF CRT DEVICES.
12.3 	If the United States Environmental Protection Agency adopts
12.4 	regulations under the Resource Conservation and Recovery Act
12.5 	regarding the handling, storage, or treatment of cathode ray
12.6 	tube devices or video display devices being recycled, those
12.7 	regulations are automatically effective in this state on the
12.8 	same date and supersede any rules previously adopted by the
12.9 	office or the Pollution Control Agency regarding the handling,
12.10 	storage, or treatment of cathode ray tube devices or video
12.11 	display devices being recycled.

12.12 	Sec. 6. [116H.85] ENFORCEMENT.
12.13 	This chapter shall be enforced in the manner provided by
12.14 	sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072.

12.15 	Sec. 7. [116H.90] LIMITATIONS.
12.16 	This chapter expires if a federal law, or combination of
12.17 	federal laws, takes effect that is applicable to all video
12.18 	display devices sold in the United States and establishes a
12.19 	program for the collection and recycling of video display
12.20 	devices that is applicable to all video display devices
12.21 	discarded by households.