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SF 3149

as introduced - 90th Legislature (2017 - 2018) Posted on 03/13/2018 08:51am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to environment; modifying requirements for recycling electronic devices;
modifying terms of certain loan program; requiring rulemaking for disposal facility
certificates; amending Minnesota Statutes 2016, sections 115A.1310, subdivision
12b; 115A.1314; 115A.1316; 115A.1318, subdivisions 1, 2; 116.993, subdivisions
2, 6.

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

Section 1.

Minnesota Statutes 2016, section 115A.1310, subdivision 12b, is amended to
read:


Subd. 12b.

Phase II recycling credits.

"Phase II recycling credits" means the number
of pounds of covered electronic devices deleted text begin recycled bydeleted text end a manufacturer new text begin recycled, or arranged
to have collected and recycled, that have met the requirements under section 115A.1318,
subdivision 1, paragraph (b), from households
new text end during a program year beginning July 1,
2019, and thereafter, from households located outside the 11-county metropolitan area, as
defined in section 115A.1314, subdivision 2, less the manufacturer's recycling obligation
calculated for the same program year in section 115A.1320, subdivision 1, paragraph (g).

Sec. 2.

Minnesota Statutes 2016, section 115A.1314, is amended to read:


115A.1314 MANUFACTURER'S REGISTRATION FEE.

Subdivision 1.

Registration fee.

(a) Each manufacturer who registers under section
115A.1312 must, by August 15 each year, pay to the commissioner of revenue an annual
registration fee, on a form and in a manner prescribed by the commissioner of revenue. The
commissioner of revenue must deposit the fee in the state treasury and credit the fee to the
environmental fund.

(b) The registration fee for manufacturers that sell 100 or more video display devices
to households in the state during the previous calendar year is $2,500, plus a variable
recycling fee. new text begin The registration fee for manufacturers that sell fewer than 100 video display
devices in the state during the previous calendar year is a variable recycling fee.
new text end The variable
recycling fee is calculated according to the formula:

[A - (B + C)] x D, where:

A = the manufacturer's recycling obligation as determined under section 115A.1320;

B = the number of pounds of covered electronic devices deleted text begin recycled bydeleted text end a manufacturer
new text begin recycled, or arranged to have collected and recycled, from households that have met the
requirements under section 115A.1318, subdivision 1, paragraph (b),
new text end from households
during the immediately preceding program year, as reported under section 115A.1316,
subdivision 1
;

C = the number of phase I or phase II recycling credits a manufacturer elects to use to
calculate the variable recycling fee; and

D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for
manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation;
$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90 percent
of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who recycle
at least 90 percent but less than 100 percent of the manufacturer's recycling obligation; and
$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's
recycling obligation.

(c) A manufacturer may petition the agency to waive the per-pound cost of recycling
fee, element D in the formula in paragraph (b), required under this section. The agency shall
direct the commissioner of revenue to waive the per-pound cost of recycling fee if the
manufacturer demonstrates to the agency's satisfaction a good faith effort to meet its recycling
obligation as determined under section 115A.1320. The petition must include:

(1) documentation that the manufacturer has met at least 75 percent of its recycling
obligation as determined under section 115A.1320;

(2) a list of political subdivisions and public and private collectors with whom the
manufacturer had a formal contract or agreement in effect during the previous program year
to recycle or collect covered electronic devices;

(3) the total amounts of covered electronic devices collected from both within and outside
of the 11-county metropolitan area, as defined in subdivision 2;

(4) a description of the manufacturer's best efforts to meet its recycling obligation as
determined under section 115A.1320; and

(5) any other information requested by the agency.

(d) A manufacturer may retain phase I and phase II recycling credits to be added, in
whole or in part, to the actual value of C, as reported under section 115A.1316, subdivision
2
, during any succeeding program year, provided that no more than 25 percent of a
manufacturer's recycling obligation (A x B) for any program year may be met with phase
I and phase II recycling credits, separately or in combination, generated in a prior program
year. A manufacturer may sell any portion or all of its phase I and phase II recycling credits
to another manufacturer, at a price negotiated by the parties, who may use the credits in the
same manner.

(e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph
(b), starting with the program year beginning July 1, 2019, and continuing each year
thereafter, the weight of covered electronic devices collected from households located
outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b), is
calculated at 1.5 times their actual weight.

Subd. 2.

Use of registration fees.

(a) Registration fees may be used by the commissioner
for:

(1) implementing sections 115A.1312 to 115A.1330, including transfer to the
commissioner of revenue to carry out the department's duties under section 115A.1320,
subdivision 2
, and transfer to the commissioner of administration for responsibilities under
section 115A.1324; deleted text begin and
deleted text end

(2) grants to counties outside the 11-county metropolitan area, as defined in paragraph
(b), and to private entities that collect for recycling covered electronic devices in counties
outside the 11-county metropolitan area, where the collection and recycling is consistent
with the respective county's solid waste plan, for the purpose of carrying out the activities
under sections 115A.1312 to 115A.1330. In awarding competitive grants under this clause,
the commissioner must give preference to counties and private entities that are working
cooperatively with manufacturers to help them meet their recycling obligations under section
115A.1318, subdivision 1deleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) distribution to counties using the distribution formula under section 115A.557, up
to the amount collected under the previous program year's variable recycling fee that the
commissioner determines is not needed to carry out clause (1).
new text end

(b) The 11-county metropolitan area consists of the counties of Anoka, Carver, Chisago,
Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.

Sec. 3.

Minnesota Statutes 2016, section 115A.1316, is amended to read:


115A.1316 REPORTING REQUIREMENTS.

Subdivision 1.

Manufacturer's reporting requirements.

(a) By August 1, 2016, each
manufacturer must report to the agency using the form prescribed:

(1) the total weight of each specific model of its video display devices sold to households
during the previous program year; and

(2) either:

(i) the total weight of its video display devices sold to households during the previous
program year; or

(ii) an estimate of the total weight of its video display devices sold to households during
the previous program year, calculated by multiplying the weight of its video display devices
sold nationally times the quotient of Minnesota's population divided by the national
population. All manufacturers with sales of 99 or fewer video display devices to households
in the state during the previous calendar year must report using the method under this item
for calculating sales.

(b) By March 1, 2017, and each March 1 thereafter, each manufacturer must report to
the agency using the form prescribed:

(1) the total weight of each specific model of its video display devices sold to households
during the previous calendar year; and

(2) either:

(i) the total weight of its video display devices sold to households during the previous
calendar year; or

(ii) an estimate of the total weight of its video display devices sold to households during
the previous calendar year, calculated by multiplying the weight of its video display devices
sold nationally times the quotient of Minnesota's population divided by the national
population. All manufacturers with sales of 99 or fewer video display devices to households
in the state during the previous calendar year must report using the method under this item
for calculating sales.

A manufacturer must submit with the report required under this paragraph a description
of how the information or estimate was calculated.

(c) By August 15 each year, each manufacturer must report deleted text begin to the department until June
30, 2017, and
deleted text end to the agency deleted text begin thereafter,deleted text end new text begin :
new text end

new text begin (1)new text end the total weight of covered electronic devices the manufacturer collected from
households and recycled or arranged to have collected and recycled during the preceding
program yeardeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (d) By August 15 each year, each manufacturer must report separately to the department
until June 30, 2017, and to the agency thereafter:
deleted text end

new text begin (2) the amount the manufacturer paid per pound of covered electronic devices during
the preceding program year to each party to satisfy the manufacturer's responsibilities under
section 115A.1318 and the manufacturer's obligation determined under section 115A.1320
and the name of the party or parties paid;
new text end

deleted text begin (1)deleted text end new text begin (3)new text end the number of phase I and phase II recycling credits the manufacturer has
purchased and sold during the preceding program yearnew text begin , including the name of the party or
parties the credits were purchased from or sold to
new text end ;

deleted text begin (2)deleted text end new text begin (4)new text end the number of phase I and phase II recycling credits possessed by the manufacturer
that the manufacturer elects to use in the calculation of its variable recycling fee under
section 115A.1314, subdivision 1; deleted text begin and
deleted text end

deleted text begin (3)deleted text end new text begin (5)new text end the number of phase I and phase II recycling credits the manufacturer retains at
the beginning of the current program yeardeleted text begin .deleted text end new text begin ; and
new text end

new text begin (6) any other information requested by the agency to determine whether a manufacturer,
recycler, collector, or retailer is in compliance with sections 115A.1310 to 115A.1330.
new text end

deleted text begin (e)deleted text end new text begin (d)new text end Upon request of the commissioner of revenue, the agency shall provide a copy
of each report to the commissioner of revenue.

Subd. 2.

Recycler's reporting requirements.

By July 15 each year, a recycler of covered
electronic devices must report to the agency:

(1) the total weight of covered electronic devices recycled during the preceding program
year and must certify that the recycler has complied with section 115A.1318, subdivision
2
;

(2) the weight of video display devices recycled as part of covered electronic devices
recycled during the previous program year; deleted text begin and
deleted text end

(3) an estimate of the weight of portable batteries and any mercury-containing lamps
that are associated with the covered electronic devices manageddeleted text begin .deleted text end new text begin ;
new text end

new text begin (4) the cost the recycler incurred during the preceding program year per pound of covered
electronic devices to each party that are used to satisfy a manufacturer's responsibilities
under section 115A.1318 and the manufacturer's obligation determined under section
115A.1320 and the name of the manufacturer or manufacturers that paid the recycler; and
new text end

new text begin (5) any other information requested by the agency to determine whether a manufacturer,
recycler, collector, or retailer is in compliance with sections 115A.1310 to 115A.1330.
new text end

Upon request of the commissioner of revenue, the agency shall provide a copy of each
report to the commissioner of revenue.

Subd. 3.

Collector's reporting requirements.

By July 15 each year, a collector must
report separately to the agency using the form prescribed by the commissioner:

(1) the total pounds of covered electronic devices collected in the state;

(2) a list of all recyclers to whom collectors delivered covered electronic devices; deleted text begin and
deleted text end

(3) whether the collector had a contract with a recycler or manufacturer to provide pounds
toward meeting a manufacturer's obligationdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) any other information requested by the agency to determine whether a manufacturer,
recycler, collector, or retailer is in compliance with sections 115A.1310 to 115A.1330.
new text end

Sec. 4.

Minnesota Statutes 2016, section 115A.1318, subdivision 1, is amended to read:


Subdivision 1.

Manufacturer's responsibilities.

(a) In addition to fulfilling the
requirements of sections 115A.1310 to 115A.1330, a manufacturer must comply with
paragraphs (b) to (f).

(b) A manufacturer must annually recycle or arrange for the collection and recycling of
an amount of video display devices as determined by the agency in section 115A.1320,
subdivision 1
. A manufacturer must assume all financial responsibility associated with
transporting and recycling covered electronic devices that are used to meet the manufacturer's
recycling obligation determined under section 115A.1320 or that are counted as phase I or
II recycling credits, including any necessary supplies. This excludes costs that are associated
with receiving and aggregating covered electronic devices from households and all the
activities up to the time that covered electronic devices are loaded for transport to a recycler
or arranged for transportation to a recycler.

(c) The obligations of a manufacturer new text begin as determined under section 115A.1320, new text end apply
only to video display devices received from households and do not apply to video display
devices received from sources other than households.

(d) A manufacturer must conduct and document due diligence assessments of collectors
and recyclers it contracts with, including an assessment of items specified under subdivision
2. A manufacturer is responsible for maintaining, for a period of three years, documentation
that all covered electronic devices recycled, partially recycled, or sent to downstream
recycling operations comply with the requirements of subdivision 2.

(e) A manufacturer must provide the agency with contact information for a person who
can be contacted regarding the manufacturer's activities under sections 115A.1310 to
115A.1320.

(f) Only the covered electronic devices that are recycled by a registered recycler that is
certified by an ANSI-ASQ National Accreditation Board-accredited third-party certification
body to an environmentally sound management standard are eligible to meet the
manufacturer's obligation.

Sec. 5.

Minnesota Statutes 2016, section 115A.1318, subdivision 2, is amended to read:


Subd. 2.

Recycler's responsibilities.

(a) As part of the report submitted under section
115A.1316, subdivision 2, a recycler must certify, except as provided in paragraph (b), that
facilities that recycle covered electronic devices, including all downstream recycling
operations:

(1) use only registered collectors;

(2) comply with all applicable health, environmental, safety, and financial responsibility
regulations;

(3) are licensed by all applicable governmental authorities;

(4) use no prison labor to recycle video display devices;

(5) possess liability insurance of not less than $1,000,000 for environmental releases,
accidents, and other emergencies;

(6) provide a report annually to each registered collector regarding the video display
devices received from that entity; and

(7) do not charge collectors for the transportation and recycling of covered electronic
devicesnew text begin , or any necessary supplies,new text end that meet a manufacturer's recycling obligation as
determined under section 115A.1320deleted text begin , unless otherwise mutually agreed upondeleted text end .

(b) A nonprofit corporation that contracts with a correctional institution to refurbish and
reuse donated computers in schools is exempt from paragraph (a), clauses (4) and (5).

(c) Except to the extent otherwise required by law and unless agreed upon otherwise by
the recycler or manufacturer, a recycler has no responsibility for any data that may be
contained in a covered electronic device if an information storage device is included in the
covered electronic device.

Sec. 6.

Minnesota Statutes 2016, section 116.993, subdivision 2, is amended to read:


Subd. 2.

Eligible borrower.

To be eligible for a loan under this section, a borrower
must:

(1) be a small business corporation, sole proprietorship, partnership, or association;

(2) be a potential emitter of pollutants to the air, ground, or water;

(3) need capital for equipment purchases that will meet or exceed environmental
regulations or need capital for site investigation and cleanup;

(4) have deleted text begin lessdeleted text end new text begin fewernew text end than deleted text begin 50deleted text end new text begin 100new text end full-time new text begin equivalent new text end employees;new text begin and
new text end

(5) have an deleted text begin after taxdeleted text end new text begin after-taxnew text end profit of less than $500,000deleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (6) have a net worth of less than $1,000,000.
deleted text end

Sec. 7.

Minnesota Statutes 2016, section 116.993, subdivision 6, is amended to read:


Subd. 6.

Loan conditions.

A loan made under this section must include:

(1) an interest rate that is deleted text begin four percent ordeleted text end new text begin at or belownew text end one-half the prime rate, deleted text begin whichever
is greater
deleted text end new text begin not to exceed five percentnew text end ;

(2) a term of payment of not more than seven years; and

(3) an amount not less than $1,000 or exceeding deleted text begin $50,000deleted text end new text begin $75,000new text end .

Sec. 8. new text begin RULEMAKING; DISPOSAL FACILITY CERTIFICATES.
new text end

new text begin (a) The commissioner of the Pollution Control Agency must amend Minnesota Rules,
part 7048.1000, subpart 4, item D, to require six contact hours of required training to renew
a type IV disposal facility certificate.
new text end

new text begin (b) The commissioner may use the good cause exemption under Minnesota Statutes,
section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota
Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes,
section 14.388.
new text end