HF 1996

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to environment; enacting the Minnesota
Electronics Recycling Act of 2005; authorizing
rulemaking; providing penalties; amending Minnesota
Statutes 2004, section 16C.03, by adding a
subdivision; proposing coding for new law in Minnesota
Statutes, chapter 116F.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 16C.03, is
amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Contracts with retailers. new text end

new text begin (a) For the purposes
of this subdivision, the definitions in section 116F.505 have
the meanings given.
new text end

new text begin (b) A public entity, as defined in section 16B.122, may not
contract for the purchase or lease of a covered electronic
device from a retailer or manufacturer which has not registered
to collect the fee imposed under chapter 116F on its sales in
Minnesota or to a destination in Minnesota.
new text end

new text begin (c) Beginning on or after September 1, 2005, each retailer
or manufacturer that is offered a contract to sell or lease a
covered electronic device subject to a fee under chapter 116F to
a public entity must submit to the public entity certification
that the retailer or manufacturer is registered to collect fees
and acknowledging that the contract may be declared void if the
certification is false.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all
contracts entered into on or after September 1, 2005.
new text end

Sec. 2.

new text begin [116F.505] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections
116F.505 to 116F.595, the following terms have the meanings
given.
new text end

new text begin Subd. 2. new text end

new text begin Computer. new text end

new text begin "Computer" means an electronic,
magnetic, optical, electrochemical, or other high speed data
processing device performing logical, arithmetic, or storage
functions, but does not include an automated typewriter or
typesetter, a portable handheld calculator or device, or other
similar device.
new text end

new text begin Subd. 3. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a person who
purchases a covered electronic device in a transaction that is a
sale.
new text end

new text begin Subd. 4. new text end

new text begin Corporation. new text end

new text begin "Corporation" means the
not-for-profit organization established under section 116F.540.
new text end

new text begin Subd. 5. new text end

new text begin Covered electronic device. new text end

new text begin "Covered electronic
device" means a desktop or personal computer, computer monitor,
portable computer, desktop printer, television, or video display
device. Covered electronic device does not include those items
when they are:
new text end

new text begin (1) part of a motor vehicle, or any 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;
new text end

new text begin (2) part of a piece of industrial, commercial, or medical
equipment, including monitoring or control equipment; or
new text end

new text begin (3) contained within a clothes washer, clothes dryer,
refrigerator, refrigerator and freezer, microwave oven,
conventional oven or range, dishwasher, room air conditioner,
dehumidifier, or air purifier.
new text end

new text begin Subd. 6. new text end

new text begin Manufacturer. new text end

new text begin "Manufacturer" means any person
that:
new text end

new text begin (1) manufactures a covered electronic device under its own
brand;
new text end

new text begin (2) manufactures a covered electronic device without
affixing a brand;
new text end

new text begin (3) resells a covered electronic device produced by other
suppliers under its own brand and label; or
new text end

new text begin (4) imports a covered electronic device into the United
States.
new text end

new text begin Subd. 7. new text end

new text begin Monitor. new text end

new text begin "Monitor" means a separate visual
display component of a computer, whether sold separately or
together with a computer central processing unit or computer
box, and includes a cathode ray tube, liquid crystal display,
gas plasma, digital light processing, or other image projection
technology, greater than nine inches when measured diagonally;
its case; interior wires and circuitry; cable to the central
processing unit; and power cord.
new text end

new text begin Subd. 8. new text end

new text begin Office. new text end

new text begin "Office" means the Office of
Environmental Assistance.
new text end

new text begin Subd. 9. new text end

new text begin Portable computer. new text end

new text begin "Portable computer" means a
computer and video display that can be carried by an individual.
new text end

new text begin Subd. 10. new text end

new text begin Purchase. new text end

new text begin "Purchase" means the taking, by
sale, of title or of the right to use.
new text end

new text begin Subd. 11. new text end

new text begin Recycling. new text end

new text begin "Recycling" has the meaning given
in section 115A.03.
new text end

new text begin Subd. 12. new text end

new text begin Retailer. new text end

new text begin "Retailer" means a person who owns
or operates a business that sells new covered electronic devices.
new text end

new text begin Subd. 13. new text end

new text begin Reuse. new text end

new text begin "Reuse" means an operation by which a
covered electronic device changes ownership to be used for the
same purpose for which it was originally put on the market
without additional processing or remanufacturing.
new text end

new text begin Subd. 14. new text end

new text begin Sell or sale. new text end

new text begin "Sell" or "sale" means any
transfer for consideration of title or of the right to use to a
consumer, by lease or sales contract, including, but not limited
to, transactions conducted through sales outlets, catalogs, or
the Internet, or any other similar electronic means, and
excluding wholesale transactions with distributors or dealers.
new text end

new text begin Subd. 15. new text end

new text begin Television. new text end

new text begin "Television" means a stand-alone
display system having a viewable area greater than nine inches
when measured diagonally and able to adhere to any standard
consumer video formats such as PAL, SECAM, NTSC, AND HDTV and
has the capability of selecting different broadcast channels and
support sound capability.
new text end

new text begin Subd. 16. new text end

new text begin Video display device. new text end

new text begin "Video display device"
means a device with an output surface having a viewable area
greater than nine inches when measured diagonally that displays
moving graphical images or a visual representation of image
sequences or pictures, showing a number of quickly changing
images on a screen in fast succession to create the illusion of
motion, including, if applicable, a device that is an integral
part of the display, and cannot be easily removed from the
display by the consumer, that produces the moving image on the
screen. Displays typically use a cathode ray tube, liquid
crystal display, gas plasma, digital light processing, or other
image projection technology.
new text end

Sec. 3.

new text begin [116F.515] FEE; EXPENDITURE OF PROCEEDS.
new text end

new text begin (a) Beginning on September 1, 2005, a fee of $10 is imposed
upon every sale to a consumer in Minnesota of a new covered
electronic device as required by section 116F.530.
new text end

new text begin (b) A retailer that sells a new covered electronic device
must collect at the time of sale the fee imposed under paragraph
(a) for each new covered electronic device sold to a consumer in
the state.
new text end

new text begin (c) A retailer shall transmit all fees collected under this
section, minus three percent of total fee revenues which may be
retained by the retailer for administrative costs associated
with collecting the fee, to the corporation on or before the
last day of the month following each quarter, accompanied by any
forms prescribed by the corporation. If a covered electronic
device for which the fee has been paid is returned to a retailer
under warranty, the fee may be refunded, and the retailer may
deduct the amount of the returned fee from the remittance to the
corporation.
new text end

new text begin (d) Fees collected by the corporation must be used only for
the administrative cost of the corporation to perform its
responsibilities under section 116F.540; to fund collection,
transportation, and recycling of covered electronic devices; and
to promote the collection and recycling of covered electronic
devices and market development. Fees may not be used to pay for
activities associated with refurbishment and reuse of covered
electronic devices, or for the collection, transportation, or
recycling of covered electronic devices that are refurbished and
reused.
new text end

new text begin (e) The fee imposed under this section must be clearly
identified separately on sales documents from the product price
and is not included in the price for purposes of sales taxes.
new text end

Sec. 4.

new text begin [116F.520] OFFICE RESPONSIBILITIES.
new text end

new text begin (a) Beginning on July 1, 2007, the office shall report to
the legislature on a biennial basis regarding the progress on
the implementation of sections 116F.505 to 116F.595, including
recommendations for changes to sections 116F.505 to 116F.595
that will ensure the most effective collection of electronic
product recycling fees and whether the cap on the fee imposed
under section 116F.515 should be adjusted.
new text end

new text begin (b) The report must include the following:
new text end

new text begin (1) a list of all parties participating in the system;
new text end

new text begin (2) current collection, transportation, and recycling costs
of covered electronic devices;
new text end

new text begin (3) projected sales of covered electronic devices;
new text end

new text begin (4) projected volume of returns of covered electronic
devices;
new text end

new text begin (5) actual collection rates during the previous 12-month
period plus a yearly growth projection;
new text end

new text begin (6) the total weight of covered electronic devices received
during the preceding year by product category, together with the
total weight of the products recycled in each product category;
and
new text end

new text begin (7) any surplus funds carried forward.
new text end

Sec. 5.

new text begin [116F.525] PROHIBITIONS.
new text end

new text begin (a) A person who is receiving reimbursement from the
corporation under sections 116F.505 to 116F.595 must not impose
a drop-off or other fee for the collection, transportation, and
recycling of covered electronic devices. Sections 116F.505 to
116F.595 do not apply to end-of-life fees in effect for products
not covered by those sections.
new text end

new text begin (b) Retailers and manufacturers of covered electronic
devices are prohibited from selling covered electronic devices
in Minnesota unless they have registered with the corporation
and they collect and remit the fees for covered electronic
devices required by section 116F.515.
new text end

Sec. 6.

new text begin [116F.530] NOT-FOR-PROFIT CORPORATION.
new text end

new text begin A corporation must be established by the office as a
nonprofit corporation organized under chapter 317A that
qualifies for tax exempt status under United States Code, title
26, section 501(c)(3), to administer collected fee proceeds from
the retail sale of covered electronic devices. Retailers of
covered electronic devices to consumers in Minnesota are
considered to have consented to be members of the not-for-profit
corporation. The corporation shall submit a budget annually to
the office and spend no more than five percent of the total fees
collected under section 116F.515 for administrative expenses.
new text end

Sec. 7.

new text begin [116F.540] CORPORATION RESPONSIBILITIES AND
STRUCTURE.
new text end

new text begin Subdivision 1. new text end

new text begin Responsibilities. new text end

new text begin (a) The corporation
must be governed and operated by a multistakeholder board for
fulfilling the responsibility for management of a collection,
transportation, and recycling system for covered electronic
devices.
new text end

new text begin (b) The corporation must serve, to the extent feasible, all
consumers in the state. The corporation must also rely
primarily on existing collection and consolidation
infrastructure for handling covered electronic devices to the
extent this infrastructure is cost effective and meets the
environmentally sound management requirements of section
116F.545.
new text end

new text begin (c) The corporation must receive funds collected by the
retailers and administer the system for reimbursement of
collectors and recyclers.
new text end

new text begin (d) The corporation shall organize and coordinate public
outreach. The corporation shall utilize local and regional
authorities to reach local residents and determine appropriate
methods for education.
new text end

new text begin Subd. 2. new text end

new text begin Structure. new text end

new text begin (a) The corporation shall use the
funding for the sole purpose of carrying out the duties of
sections 116F.505 to 116F.595. In the event that expenses from
collection, transportation, and recycling activities exceed
revenues, the corporation may borrow up to ten percent of the
projected annual net fee funds from outside sources. Borrowed
funds must be repaid within two years.
new text end

new text begin (b) On April 1 of each year, the office shall report to the
legislature on the implementation of the system during the
previous year. The report must identify the total weight of
covered electronic devices received during the preceding year by
product category, together with the total weight of products
recycled in each product category. The report must also include
a list of all parties participating in the system.
new text end

new text begin (c) The corporation must have a board of directors
consisting of 11 members appointed by the director. The board
members shall be appointed for two-year terms, except that for
the initial term, three members shall be appointed to one-year
terms and four members shall be appointed to two-year terms.
The director shall appoint a replacement if any vacancy occurs.
The board shall consist of representatives from:
new text end

new text begin (1) five manufacturers of covered electronic devices;
new text end

new text begin (2) two retailers of covered electronic devices;
new text end

new text begin (3) one environmental not-for-profit organization with
experience in the recycling of covered electronic devices;
new text end

new text begin (4) one for-profit organization with experience in the
recycling of covered electronic devices; and
new text end

new text begin (5) two government representatives, including one from
local government who shall be compensated pursuant to section
15.059, subdivision 3.
new text end

new text begin (d) The board shall hire a director who shall run the
day-to-day operations of the corporation and report to the board
at least once a year.
new text end

new text begin Subd. 3. new text end

new text begin Coordinating contracts. new text end

new text begin The corporation shall
encourage collectors, transporters, and recyclers of covered
electronic devices to coordinate their efforts in order to
minimize costs. All contracts issued by the corporation for
recyclers must be competitively bid under a process created by
the corporation and may not prohibit or affect any contract,
franchise, permit, or other arrangement regarding the collection
or recycling of other solid or household hazardous waste.
new text end

Sec. 8.

new text begin [116F.545] ENVIRONMENTALLY SOUND MANAGEMENT
REQUIREMENTS.
new text end

new text begin (a) Covered electronic devices collected must be recycled
or disposed of in a manner that is in compliance with all
applicable federal, state, and local laws, regulations, and
ordinances, and must not be exported for disposal in a manner
that poses a significant risk to the public health or the
environment.
new text end

new text begin (b) The corporation shall establish performance
requirements for recyclers eligible to receive funds from the
corporation. Recyclers shall, at a minimum, demonstrate
compliance with the United States Environmental Protection
Agency's Guidance on Environmentally Sound Management of
Electronic Products as issued and available on the office's Web
site in addition to any other requirements mandated by state law.
new text end

new text begin (c) The office shall keep on file and update a list of
recyclers approved to recycle covered electronic devices. A
copy of the list, including all changes to the list since the
previous year, must be sent to the corporation annually for use
in fulfilling its requirements under section 116F.540.
new text end

new text begin (d) The office is authorized to remove from the list any
recycler, who, as the result of an audit by the corporation or
the office, has failed to meet the criteria established under
paragraph (a) or who has been convicted of violating any
federal, state, or local law related to the collection,
transport, or processing of covered electronic products.
new text end

new text begin (e) The corporation and its board may not be held
financially liable for any violation of a federal, state, or
local law by a recycler appearing on the list created and
updated by the office.
new text end

Sec. 9.

new text begin [116F.550] LEVEL PLAYING FIELD PENALTIES.
new text end

new text begin (a) Beginning September 1, 2005, a manufacturer may not
offer for sale in Minnesota a covered electronic device unless a
visible, permanent label clearly identifying the brand or
manufacturer of that device is affixed to it and, if the
manufacturer is also a retailer, the fee under section 116F.515
is collected.
new text end

new text begin (b) By July 15, 2005, manufacturers of covered electronic
devices must notify retailers that the covered electronics
device is subject to the fee in section 116F.515.
new text end

new text begin (c) A violation of this section is subject to a civil
penalty in the amount of $1,000 per violation.
new text end

new text begin (d) The money collected and distributed shall be used to
offset enforcement expenses.
new text end

new text begin (e) Manufacturers and retailers, upon providing 60-day
notice to the attorney general and to a retailer who is not
collecting and remitting the fee in section 116F.515, or a
manufacturer who is not complying with this section, have the
right to sue that manufacturer or retailer for failure to
collect or remit the fee to the corporation. During the 60-day
notice period, if the attorney general initiates action against
the manufacturer or retailer, then the ability of the
manufacturer to sue is extinguished. The money collected by the
attorney general must be used to offset enforcement expenses.
Money in excess of the enforcement expenses shall be deposited
with the corporation. Manufacturers and retailers that
successfully challenge a noncompliant manufacturer or retailer
are entitled to receive their litigation costs as well as double
the penalties assessed under paragraph (c).
new text end

Sec. 10.

new text begin [116F.560] MARKET DEVELOPMENT.
new text end

new text begin The corporation shall establish a market development
program to enhance existing and develop new end markets for
remanufactured products and recycled materials. No more than
one percent of corporation funds may be spent on this program.
new text end

Sec. 11.

new text begin [116F.575] MANUFACTURERS.
new text end

new text begin (a) Beginning September 1, 2005, a manufacturer must:
new text end

new text begin (1) collect and remit the fee in section 116F.515 on all
sales in which the manufacturer acts as a retailer;
new text end

new text begin (2) make information available to consumers describing
where and how to return, recycle, and dispose of covered
electronic devices through the use of product operation manuals,
industry or manufacturer Web sites, product labels, packaging
inserts, or toll-free telephone numbers; and
new text end

new text begin (3) provide recyclers with information on the type and
location of hazardous substances in the covered products.
new text end

new text begin (b) Beginning January 1, 2007, a manufacturer must not
offer for sale in the state any product or electronic device
that is prohibited from being sold or offered for sale in the
European Union on or after its date of manufacture, to the
extent that Directive 2002/95/EC adopted by the European
Parliament on January 27, 2003, and as amended thereafter by the
Commission of European Communities, prohibits the sale due to
the presence of heavy metals. This prohibition does not include
any product that contains a substance that is used to comply
with consumer health or safety requirements that are required by
Underwriters Laboratories, the federal government, or the state.
new text end

new text begin (c) Beginning July 1, 2008, and annually thereafter,
manufacturers shall make available to the public upon request a
report that contains:
new text end

new text begin (1) the total estimated amounts of lead, mercury,
hexavalent chromium, cadmium, and polybrominated biphenyls
(PBBs) contained in products sold within the state in the
previous year;
new text end

new text begin (2) the total estimated amounts of recyclable materials
contained in covered electronic devices sold within the state in
the previous year, and increases the use of those materials over
previous years; and
new text end

new text begin (3) any efforts to design covered electronic devices for
recycling and goals or plans for further increasing design for
recycling.
new text end

new text begin (d) In lieu of an individual report, manufacturers may
submit the information in a collated report submitted via a
trade association provided that information about an individual
company can be made available to the office upon written request
by the office. The office may only make such a request for
auditing purposes and not more than once during a five-year
period. The office may not make public any confidential
business information claimed by the manufacturer in the report.
new text end

new text begin (e) A report submitted to another state or to the federal
government that contains the same information as required in
this section must be accepted by the office in lieu of a
separate report for the state.
new text end

Sec. 12.

new text begin [116F.580] REGULATORY AUTHORITY.
new text end

new text begin The office may adopt rules for the purpose of administering
sections 116F.505 to 116F.595.
new text end

Sec. 13.

new text begin [116F.590] PROGRAM REVIEW.
new text end

new text begin On or after January 1, 2014, the office shall convene a
stakeholder group to evaluate the program and make
recommendations to the legislature by January 1, 2015, as to
whether to:
new text end

new text begin (1) continue or modify the fee under section 116F.515;
new text end

new text begin (2) implement another financing alternative; or
new text end

new text begin (3) determine that no outside financing mechanism is
required to ensure that the system is financially solvent.
new text end

Sec. 14.

new text begin [116F.595] FEDERAL PREEMPTION.
new text end

new text begin Upon notification by the office that a national program to
collect and recycle covered electronic devices is implemented,
sections 116F.505 to 116F.595, to the extent that they are
inconsistent with the national program, become inoperative.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise specified, sections 1 to 15 are
effective July 1, 2005.
new text end