SENATE, No. 544

SECTION 1. The General Laws are hereby amended by inserting after chapter 21M the following chapter;

Chapter 21N.

Section 1.The following words shall have the meanings unless the following context clearly indicates otherwise:

"Fund”, the electronic waste recovery and recycling fund.

"Authorized collector", any of the following: (1) a political subdivision of the commonwealth that collects covered electronic devices, (2) a person or entity that is required or authorized by the commonwealth or a political subdivision to collect covered electronic devices under the terms of a contract, license, permit or other written authorization,  (3)  a nonprofit organization that collects or accepts covered electronic devices,  (4)  a manufacturer or agent of the manufacturer that collects, consolidates and transports covered electronic devices for recycling from consumers, businesses, institutions and other generators; and (5)  any entity that collects, handles, consolidates and transports covered electronic devices.

"Consumer", a purchaser or owner of a covered electronic device, to which also includes a business, corporation, limited partnership, nonprofit organization or governmental entity; but shall not include an entity involved in a wholesale transaction between a distributor and retailer or a manufacturer who purchases specialty or medical electronic equipment that is a covered electronic device;

"Covered electronic device", a cathode ray tube, cathode ray tube device, flat panel screen or any other similar video display device with a screen size that is greater than four inches in size measured diagonally with an output surface that displays, or is capable of displaying, 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, in that it cannot be easily removed from the display by the consumer, that produces the moving image on the screen but does not include any of the following:

(a) a video display device that is a part of a motor vehicle, as defined in chapter 90 of the general laws, 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,

(b) a covered electronic device that is functionally or physically a part of a larger piece of equipment designed and intended for use in an industrial, commercial, or medical setting, including diagnostic, monitoring or control equipment,

(c ) a video display device that is 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.

"Covered electronic waste", a covered electronic device that is discarded or disposed.

"Covered electronic waste recycler", any of the following:

               (1)  A person who engages in the manual or mechanical separation of covered electronic devices to recover components and commodities contained therein for the purpose of reuse or recycling;

               (2)  A person who changes the physical or chemical composition of a covered electronic device by deconstructing, size reduction, crushing, cutting, sawing, compacting, shredding or refining for purposes of segregating components, for purposes of recovering or recycling those components, and who arranges for the transport of those components to an end user;

               (3)  A manufacturer who meets any of the conditions established under this chapter for the collection or recycling of covered electronic waste;

"Covered electronic waste recycling fee” the fee imposed under this chapter.

"Department", the department of environmental protection of the commonwealth.

"Distributor", a person who sells a covered electronic device to a retailer.

"Electronic waste recovery payment", an amount established and paid by the department pursuant to this act.

"Electronic waste recycling payment", a payment made by the department to an authorized collector of covered electronic waste under this chapter.

"Manufacturer”,: (1)  a person who manufactures a covered electronic device sold in the commonwealth, or (2)  a person who sells a covered electronic device in this commonwealth under a person's brand name.

"Medical electronic equipment", includes radiotherapy equipment, cardiology equipment, dialysis equipment, pulmonary ventilators, nuclear medicine equipment, laboratory equipment for in-vitro diagnosis, analyzers and freezers.

"Retailer”, a person who sells a covered electronic device in the commonwealth to a consumer but who did not manufacture the device, and includes a manufacturer of a covered electronic device who sells the covered electronic device directly to a consumer through any means, including transactions conducted through sales outlets, catalogs or the internet or any other similar electronic means, but does not include a sale that is a wholesale transaction with a distributor or retailer.

"Sell" or "sale" 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, but does not include a wholesale transaction with a distributor or a retailer.

"Specialty electronic equipment", includes smoke detectors, heating regulators and thermostats.

SECTION 2.   As used in this section, the following words and phrases shall have the following meanings unless the context clearly indicates otherwise:

"Computer", a programmable electronic machine that performs high-speed mathematical or logical operations or that assembles, stores, correlates or otherwise processes information.

"Electronic item containing an intact or broken cathode ray tube",  an electronic item containing a cathode ray tube includes a television, computer monitor or any other cathode ray tube monitor or display device;

"Electronics", devices that utilize electrons and electric circuits, including household appliances, televisions, recording and playing devices for music or video tapes, compact discs, and digital technology.

SECTION 3.  (a) On and after July 1, 2008, a covered electronic waste recycling fee shall be imposed upon the first sale in the commonwealth of a covered electronic device to a consumer by a retailer.

(b)  A retailer that sells a covered electronic device to a consumer shall collect a fee for each covered electronic device sold by the retailer in the following amounts:

               (1)  six dollars for each covered electronic device with a screen size of less than 15 inches measured diagonally;

               (2)  eight dollars for each covered electronic device with a screen size greater than or equal to 15 inches but less than 35 inches measured diagonally;

               (3)  ten dollars for each covered electronic device with a screen size greater than or equal to 35 inches measured diagonally;

(c)  The electronic waste recycling fee collected under this section shall be transmitted to the department in a manner determined by the department. The covered electronic waste recycling fees shall be deposited in The Electronic Waste Recovery and Recycling Fund.

(d)  A retailer selling a covered electronic device may retain 3 percent of the covered electronic waste recycling fee as reimbursement for any costs associated with the of the collection fee.

(e)  On and after July 1, 2008, and at least once every two years thereafter, the department shall review, at a public hearing, the covered electronic waste recycling fee and shall make any adjustments to the fee to ensure that there are sufficient revenues in the account to fund the covered electronic waste recycling program established under this chapter. The department shall base any adjustment of the covered electronic waste recycling fee on both of the following factors:

               (1)  The sufficiency, and any surplus, of revenues in the account to fund the collection, consolidation and recycling of 100 percent of the covered electronic waste that is projected to be recycled.

               (2)  The sufficiency of revenues in the account for the department to administer, enforce and promote the program established pursuant to this act, plus a prudent reserve not to exceed 5 percent of the amount in the account.

SECTION 4.  (a) On and after July 1, 2008, it shall be unlawful to sell a covered electronic device to a consumer in this Commonwealth unless the department determines that the manufacturer of that covered electronic device demonstrates compliance with this chapter.

(b)  On and after January 1, 2008, a person shall not sell or offer for sale in this commonwealth a covered electronic device unless the device is labeled with the name of the manufacturer or the manufacturer's brand label so that it is readily visible.

(c)  On or before July 1, 2008, and at least once annually thereafter as determined by the department, each manufacturer of a covered electronic device shall:

               (1)  submit to the department a report that includes all of the following information;

                               (i)  an estimate of the number of covered electronic devices sold by the manufacturer during the previous year;

                               (ii)  a baseline or set of baselines that show the total estimated amounts of mercury, cadmium, lead, hexavalent chromium, PBDEs and PBBs used in covered electronic devices manufactured by the manufacturer in that year and the reduction in the use of those hazardous materials from the previous year;

                               (iii)  a baseline or set of baselines that show the total estimated amount of recycled materials contained in covered electronic devices sold by the manufacturer in that year and the increase in the use of those recyclable materials from the previous year;

                               (iv)  a baseline or a set of baselines that describe any efforts to design covered electronic devices for recycling and goals and plans for further increasing design for recycling.

               (2)  Make information available to consumers that describes where and how to return, recycle and dispose of the covered electronic device and opportunities and locations for the collection or return of the device through the use of a toll-free telephone number, Internet website, information labeled on the device, information included in the packaging or information accompanying the sale of a covered electronic device.

(d)  Any information submitted to the department under (a) that is proprietary in nature or a trade secret shall be subject to protection under all laws and regulations governing the information.

(e)  On or before April 1, 2008, a manufacturer shall inform the retailer if a covered electronic device sold by that manufacturer is subject to the covered electronic waste recycling fee established under this chapter.

SECTION 5.  (a)  A political subdivision or other public agency may not adopt, implement or enforce an ordinance, resolution, regulation or rule requiring a consumer, manufacturer or retailer to recycle covered electronic devices or imposing a covered electronic waste recycling fee upon a manufacturer, retailer or consumer unless expressly authorized under this chapter.

(b)  Nothing in this section shall prohibit the adoption, implementation or enforcement of any local ordinance, resolution, regulation or rule governing curbside or drop-off recycling programs operated by or under a contract with a political subdivision or other public agency, including any action relating to fees for these programs. Nothing in this section shall be construed to affect any contract, franchise, permit, license or other arrangement regarding the collection or recycling of solid waste or household hazardous waste.

(c)  The following civil penalties may be imposed by the department:

               (1)  an amount not to exceed $5,000 per offense for each sale of a covered electronic device for which a covered electronic waste recycling fee has not been paid under this chapter.

               (2)  A civil penalty in an amount not to exceed $25,000 against manufacturers for failure to comply with this chapter, except as otherwise provided in subsection (a).

SECTION 6.  (a) The department shall deposit all fees and fines collected under this chapter into the fund. The funds in the account may be expended by the department for the following purposes:

               (1) to make electronic waste recovery payments to an authorized collector of covered electronic waste pursuant to under the chapter.

               (2) to make electronic waste recycling payments to covered electronic waste recyclers of covered electronic waste.

               (3) to provide for costs of the department to administer this chapter.

(b)  any interest earned upon funds in the fund shall be deposited in the fund for expenditure under this chapter.

(c)  Not more than 1percent of the funds annually deposited in the account shall be expended for the purposes of establishing the public information program to educate the public in the hazards of improper covered electronic device storage and disposal and on the opportunities to recycle covered electronic devices.

(d)  The department may not provide any payment for covered electronic devices unless the materials will be handled in compliance with all statutes and regulations regarding the export of hazardous waste. No payment may be made for covered electronic devices exported to any country where the export or import of hazardous waste is prohibited.

(e)  The department may not provide any payment for covered electronic waste unless the materials are handled in compliance with all statutes and regulations regarding the export of hazardous wastes.

SECTION 7.  Chapter 29 of the General Laws is hereby amended by adding the following new section.

Section 29:2OOO.  There shall be set up on the books of the commonwealth a separate fund known as the Electronic Waste Recovery and Recycling Fund.  There shall be credited to the fund all revenues or other financing sources directed to the fund by appropriation, and the monies collected by retailers under chapter 21N.  Monies credited to the fund may be expended by the department of environmental protection without further appropriation, for the administration of chapter 21N.