HB1809.DOC

SECTION 1. Act 13, Special Session Laws of Hawaii 2008, addresses the collection, transportation, and recycling of computers, computer printers, computer monitors, and portable computers that are used and discarded in the State.

The legislature finds that a similar comprehensive and convenient television recycling and reuse program, based on shared responsibility among all stakeholders, including manufacturers, consumers, retailers, and government, would ensure that end-of-life televisions are responsibly recycled to promote resource conservation.

The purpose of this Act is to develop an effective and efficient system for recycling televisions and to require manufacturers to offer this service to consumers with convenience.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

TELEVISION RECOVERY SYSTEM

§ -1 Definitions. As used in this chapter:

"Brand" means symbols, words, or marks that identify a covered television, rather than any of its components.

"Covered television" means a television discarded by a household in the State, but does not include the following:

(1) A television that is a 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;

(2) A television that is functionally or physically a part of a larger piece of equipment designed and intended for use in an industrial, governmental, commercial, or medical setting, including but not limited to:

(A) Diagnostic, monitoring, control equipment;

(B) Equipment used for security, sensing, monitoring, anti-terrorism, or emergency services purposes; or

(3) A telephones of any type, including a mobile telephone; or

(5) A global positioning system.

"Department" means the department of health.

"Household" means any occupant of a single detached dwelling unit or of a single unit of a multiple dwelling unit who has used a covered television at a dwelling unit primarily for personal or home business use.

"Market share" means a calculation of a television manufacturer's prior year's sales of televisions divided by all manufacturers' prior year's sales for all televisions, as determined by the department. Market share may be expressed as a percentage, a fraction, or a decimal fraction.

"Person" means any individual, business, partnership, limited liability company, corporation, not-for-profit corporation, association, governmental entity, public benefit corporation, or public authority.

"Program year" means a full calendar year beginning on or after January 1, 2010.

"Recover" means to reuse or recycle.

"Recoverer" means a person or entity that reuses or recycles.

"Recycle":

(1) Means processing (including disassembling, dismantling, or shredding) covered televisions or their components to recover a useable product;

(2) Does not include any process defined as incineration under applicable laws or rules.

"Retailer" means any person who offers covered televisions for sale, other than resale by the purchaser, through any means, including directly to a consumer, including sales outlets, catalogs, or the Internet.

"Sell" or "sale" means any transfer for consideration of title, including but not limited to transactions conducted through sales outlets, catalogs, or the Internet but excluding leasing.

"Television" means any electronic device that is capable of receiving broadcast, cable, or satellite signals and displaying television or video programming, including, without limitation, any direct view or projection television with a viewable screen of nine inches or larger with display technology based on cathode ray tube, plasma, liquid crystal, digital light processing, liquid crystal on silicon, silicon crystal reflective display, light emitting diode, or similar technology marketed and intended for use by a household. The term does not include a computer, computer printer, computer monitor, or portable computer.

"Television manufacturer" means a person who:

(1) Manufactures for sale in the State a covered television under a brand that it licenses or owns;

(2) Manufactures for sale in the State covered televisions without affixing a brand;

(3) Resells into the State a covered television manufactured by others under a brand that the seller owns or is licensed to use;

(4) Imports into the United States or exports from the United States a covered television for sale in the State;

(5) Sells at retail a covered television acquired from an importer that is the manufacturer as described in paragraph (4), and elects to register as the manufacturer for those products;

(6) Manufactures covered televisions and supplies them to any person or persons within a distribution network that includes wholesalers or retailers in this State; or

(7) Assumes the responsibilities and obligations of a television manufacturer under this chapter.

In the event the television manufacturer is one who manufactures, sells, or resells under a brand it licenses, the licensor or brand owner of the brand shall not be included in the definition of television manufacturer under paragraph (1) or (3).

§ -2 Applicability. The recovery provisions of this chapter shall apply to covered televisions used and returned by consumers in this State.

§ -3 Television manufacturers. (a) No television manufacturer shall sell or offer for sale a covered television in this State unless the television manufacturer includes the television manufacturer's name and brand, whether owned or licensed, on the covered television.

(b) Each television manufacturer:

(1) By January 1, 2010, before selling or offering for sale covered televisions in the State, shall register with the department, and, at the time of registration, shall pay an initial registration fee of $2,500 to the department. Thereafter, if a television manufacturer has not previously registered, the television manufacturer shall register with the department prior to any offer for sale for delivery in this State of the television manufacturer's new covered televisions.

(2) Who is registered shall submit an annual renewal of its registration and payment of a registration fee of $2,500 to the department by January 1 of each year.

(3) In its registration and renewal shall include a list of all of the television manufacturer's brands of covered televisions, regardless of whether it owns or licenses the brands, and shall be effective on the second day of the succeeding month after receipt by the department of the registration or renewal.

(c) A television manufacturer shall provide the department with contact information for the television manufacturer's designated agent or employee whom the department may contact for information on the television manufacturer's compliance with the requirements of this section.

§ -4 Manufacturer responsibility. (a) Beginning January 1, 2011, a television manufacturer shall recycle or arrange for the recycling of covered televisions sold in the State.

(b) The obligation to recycle covered televisions shall be allocated to each television manufacturer based on the television manufacturer's market share multiplied by the total pounds of covered televisions recycled by all television manufacturers during the previous program year.

(c) A television manufacturer may fulfill the requirements of this section either individually or in participation with other television manufacturers.

(d) No later than January 31, 2012, and each year thereafter, each television manufacturer shall report to the department, the total weight of covered televisions that the manufacturer collected in the State and recycled during the previous year.

§ -5 Retailer responsibility. (a) Beginning January 1, 2011, a retailer shall not sell or offer to sell any covered television in this State unless a visible, permanent label clearly identifying the manufacturer of that device is affixed to the equipment and the television manufacturer has registered with the State.

(b) Beginning January 1, 2011, retailers shall make available to their customers information on collection services in the State, and shall include the department's website address and toll-free telephone number. Remote retailers may include this information in a visible location on their website to fulfill this requirement.

(c) Retailers shall not be liable in any way for electronic data or other information that a consumer may have stored on a covered television that is collected or recycled.

§ -6 Manufacturer's recovery. (a) The department shall use state-specific television sales data or national television sales data available from commercially available analytical sources to determine each television manufacturer's recovery responsibilities for covered televisions based on the manufacturer's market share. If the department uses national sales data, the department shall extrapolate data for the State from national data on the basis of the State's share of national population. The department shall seek to establish the most accurate determination of each manufacturer's market share and may rely on supplemental sources of information to achieve this goal.

(b) No later than March 15, 2012, and annually thereafter, the department shall notify each manufacturer of its non-binding recycling obligation. Each manufacturer's obligation shall be based on that manufacturer's market share from the previous year multiplied by the total pounds of covered televisions collected by all manufacturers during the previous program year.

(d) Beginning January 1, 2011, the department shall display on its website a toll-free number and current information on covered television for recycling locations.

§ -7 Enforcement. (a) The department may conduct audits and inspections to determine compliance under this chapter. The department and the attorney general, as appropriate, shall enforce this chapter and take enforcement action against any covered television manufacturer, retailer, or recoverer for failure to comply with any provisions of this chapter.

(b) Any retailer who fails to label its covered televisions as required by section -5 or any covered television manufacturer that fails to adopt and implement a recovery plan as required by section -4 may be assessed a penalty of up to $10,000 for the first violation and up to $25,000 for the second and each subsequent violation, in addition to any additional penalties required or imposed pursuant to this chapter.

(c) Except as provided in subsection (b), any person who violates any requirement of this chapter may be assessed a penalty of up to $1,000 for the first violation and up to $2,000 for the second and each subsequent violation, in addition to any additional penalties required or imposed pursuant to this chapter.

(d) The department shall determine penalties based on adverse impact to the environment, unfair competitive advantage, and other considerations that department deems appropriate.

(e) Any violation of the sales prohibitions of this chapter may be enjoined in an action brought by the attorney general in the name of the State.

(f) If a covered television manufacturer fails to recycle its market share allocation, the department shall impose a penalty of fifty cents per pound for each pound not recycled.

§ -8 Financial information; report. (a) Notwithstanding any law to the contrary, financial or proprietary information, including trade secrets, commercial information, and business plans submitted to the department under this chapter is confidential and exempt from public disclosure.

(b) The department shall compile the information submitted by covered television manufacturers and issue a report to the legislature no later than April 1, 2012, and annually each year thereafter.

§ -9 Rules. The department may adopt rules, pursuant to chapter 91, necessary to implement this chapter.

§ -10 Penalty funds. (a) The department shall use any money received from penalties assessed pursuant to this chapter to offset costs of administering the program and to provide grants to local governments for collecting covered televisions.

(b) The department shall not have the authority to assess any fees, including an advanced recycling fee, registration fee, or other fee, on consumers, television manufacturers, retailers, or recoverers for recovery of covered televisions except those noted in sections -3 and -7.

§ -11 Environmental management. (a) All covered televisions collected pursuant to this Act shall be recovered in a manner that complies with all applicable federal, state, and local laws and requirements.

(b) The department shall adopt by reference the Institute of Scrap Recycling Industries, Inc.'s Electronics Recycling Operating Practices as requirements.

§ -12 State procurement. (a) Any person who submits a bid or proposal for a contract with a state agency for the purchase or lease of covered televisions, pursuant to chapter 103D, shall demonstrate to the purchasing agency that the brand of the covered televisions offered are in compliance with this chapter.

(b) A state agency that purchases or leases any covered television shall require each prospective bidder to certify compliance with this chapter. Failure to provide certification shall disqualify the prospective bidder.

§ -13 Federal preemption. This Act shall be deemed repealed if a federal law or a combination of federal laws takes effect that establishes a national program for the recycling of covered televisions that substantially meets the intent of this chapter."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1809
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII