HB1809 HD2.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 or disposed 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 entity" means any household, government entity, business, or nonprofit organization exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code, regardless of size or place of operation within the state.

"Covered 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 shall not include:

(1) A computer, computer printer, computer monitor, or portable computer;

(2) 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;

(3) 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, or control equipment;

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

(4) A telephone 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.

"Recycle":

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

(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 sales outlets, catalogs, or the Internet.

"Sell" or "sale" means any transfer for consideration of title, including transactions conducted through sales outlets, catalogs, or the Internet but excluding leasing.

"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 covered televisions under a brand for which it has obtained the license, 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 recycling provisions of this chapter shall apply only to covered televisions used and discarded in this state by a covered entity.

§ -3 Television manufacturers. (a) No television manufacturer shall sell or offer for sale any new covered television in this state unless:

(1) The covered television is labeled with a brand, whether licensed or owned, and the label is permanently affixed; and

(2) The brand is included in a registration that is filed with the department and that is effective pursuant to subsection (b).

(b) By January 1, 2010, before selling or offering for sale any covered television in the state, each television manufacturer shall register with the department and pay to the department a registration fee of $2,500. 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.

(c) Each manufacturer 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 program year.

(d) The registration and each renewal shall include a list of all of the television manufacturer's brands of covered televisions and shall be effective on the second day of the succeeding month after receipt by the department of the registration or renewal.

(e) 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 any covered television sold in the state.

(b) By June 1, 2010, and annually thereafter, each manufacturer shall submit a plan to the department to establish, conduct, and manage a program for the recycling of covered televisions sold in the state.

(c) The department shall review each manufacturer's plan and, within sixty days of receipt of the plan, determine whether the plan complies with this chapter. If the plan is approved, the department shall notify the manufacturer or group of manufacturers. If the plan is rejected, the department shall notify the manufacturer or group of manufacturers and provide the reasons for the plan's rejection. Within thirty days after receipt of the department's rejection, the manufacturer or group of manufacturers may revise and resubmit the plan to the department for approval.

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

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

(f) 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 recovered in the state and recycled during the previous year.

§ -5 Retailer responsibility. (a) Beginning January 1, 2011, no retailer shall 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 for discarded televisions 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 recovered 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 recycling responsibilities for covered televisions based upon 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 the 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 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 recovered by all television 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 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 be empowered to enforce this chapter and take necessary action against any covered television manufacturer or retailer for failure to comply with this chapter or any rules adopted thereunder.

(b) Any retailer who sells or offers for sale an unlabeled covered television in violation of section -5 or any television manufacturer that fails to comply with any provision of 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 additional penalties based on adverse impact to the environment, unfair competitive advantage, and other considerations that the 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 50 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 to the extent permitted by chapter 92F.

(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 deposit moneys received from penalties assessed pursuant to this chapter into the electronic device recycling fund, established pursuant to section 339D-10.

(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, or retailers for recovery of covered televisions except those noted in sections -3 and -7.

§ -11 Environmental management. (a) All covered televisions recovered pursuant to this chapter shall be recycled in a manner that complies with all applicable federal, state, and county 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. All state and county agencies that purchase or lease any covered television shall require each prospective offeror to certify compliance with this chapter. Failure to provide certification shall disqualify the prospective offeror.

§ -13 Federal preemption. This chapter 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 that 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 on July 1, 2020.

HOUSE OF REPRESENTATIVES	H.B. NO.	1809
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 2
STATE OF HAWAII