BILL REQ. #:  H-3222.2 

Read first time 01/13/2006.   Referred to Committee on Natural Resources, Ecology & Parks.

     AN ACT Relating to recycling electronic products; reenacting and amending RCW 43.79A.040; adding a new chapter to Title 19 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1)(a) "Eligible electronic products" means the following product categories:
     (i) Central processing units whether sold alone or with accessories;
     (ii) Computer monitors;
     (iii) Computer printers;
     (iv) Laptop computers; and
     (v) Televisions.
     (b) "Eligible electronic products" does not mean devices that are:
     (i) Parts of a motor vehicle, component parts of motor vehicles assembled by or for a vehicle manufacturer or franchised dealer, or replacement parts for use in motor vehicles;
     (ii) Functionally or physically part of a larger piece of medical, commercial, or industrial equipment primarily used for diagnosis, control, or monitoring of a medical, industrial, or commercial process; and
     (iii) Contained within a clothes washer or dryer, refrigerator, freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier, or air purifier.
     (2) "Manufacturer" means any person that manufactures an eligible electronic product sold in Washington.
     (3) "Seller" means a person that sells new eligible electronic products to ultimate consumers in this state by any means.
     (4) "Television" means a stand-alone display system that has a viewable area greater than nine inches when measured diagonally, is able to adhere to standard consumer video formats such as phase alternate line, sequential color with memory, national television systems committee, and high definition television, and has the capability of selecting different broadcast channels and can support sound capability.

NEW SECTION.  Sec. 2   The electronic product stewardship account is created in the custody of the state treasurer. All receipts from moneys collected by the department of revenue under section 4 of this act after payment to the department of revenue for the costs associated with collecting the fees under section 3 of this act must be deposited into the account. Expenditures from the account may be used only for the costs of the department of ecology to implement this chapter, including educational programs. Only the director of ecology or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 3   (1) A seller shall collect an advance recycling fee from the first in-state buyer of an eligible electronic product as provided in subsection (2) of this section. The seller shall designate the fee as an advance recycling fee for the purpose of funding reuse and recycling of electronic products and shall indicate that the fee is an advance recycling fee in a manner that is clearly visible to the buyer of the product.
     (2) The amount of the fee is:
     (a) Six dollars for flat-screen devices;
     (b) Eight dollars for computer monitors that are not flat-screen devices; and
     (c) Ten dollars for televisions.
     (3) If, under a retailer return policy or warranty, a buyer returns an eligible electronic product for which an advance recycling fee has been paid to a seller, the fee shall be refunded to the buyer. The seller may claim a refund or credit in the amount of the returned fee from any future remittance to the department of revenue under section 4 of this act.

NEW SECTION.  Sec. 4   (1) Each seller of electronic products must register with the department of revenue. Sellers must report to the department of revenue on a quarterly basis the number of eligible electronic products sold and remit the collected advance recycling fees, less three percent for administrative costs.
     (2) The department of revenue shall deposit moneys collected under this section into the electronic product stewardship account created in section 2 of this act.

NEW SECTION.  Sec. 5   The department of ecology may adopt administrative rules to implement this chapter.

NEW SECTION.  Sec. 6   (1) The department of ecology shall select, through a request for proposal process, an entity to manage the electronic product stewardship program to collect, reuse, recycle, and dispose of eligible electronic products.
     (2) The department of ecology shall appoint an advisory committee to assist in drafting the request for proposal. The advisory committee shall consist of manufacturers and sellers of electronic products, representatives of reuse and recycling businesses, and other parties interested in and affected by this chapter.
     (3) The request for proposal shall:
     (a) Describe the duties of the selected entity;
     (b) Set outcome criteria for collection, reuse, recycling, and disposal of the materials;
     (c) Describe a public education process;
     (d) Set requirements for making the entire process accessible to consumers;
     (e) Ensure that all regions of the state are adequately served; and
     (f) Include any other provisions the department of ecology determines are necessary to implement this chapter.
     (4) Upon selecting an entity, the department of ecology shall enter into a contract with the entity that specifies:
     (a) A methodology for selecting businesses or organizations that receive contracts or grants from the selected entity. The methodology must employ open and competitive procurement practices for selecting collectors, transporters, recyclers, and processors and for setting reimbursement rates;
     (b) Methods to encourage collectors, transporters, recyclers, and processors to coordinate their efforts in order to minimize costs;
     (c) Qualification requirements that businesses or organizations must meet in order to receive funds from the selected entity;
     (d) Provisions addressing environmentally responsible management;
     (e) Procedures for monitoring the performance of recyclers, including periodic audits, to ensure that the outcome criteria in the selected entity request for proposal are met; and
     (f) An educational component that encourages the public to use the services of eligible electronic product collectors and recyclers.
     (5) The contract shall require that the selected entity make reports to the department to identify:
     (a) The total weight and number of eligible electronic products collected during the preceding year, listed by category;
     (b) The total weight and number of products reused, products recycled, and products disposed of during the preceding year, listed by category; and
     (c) All collectors, transporters, recyclers, processors, and other entities involved in the recycling of the products during the preceding year.

NEW SECTION.  Sec. 7   A manufacturer shall provide the following:
     (1) Assurances to the department of revenue that the manufacturer has notified all sellers known to the manufacturer of eligible electronic products made by the manufacturer that the advance recycling fee must be collected from a buyer and remitted to the department;
     (2) A list to the department of revenue of all sellers known to the manufacturer of eligible electronic products made by the manufacturer;
     (3) A report to the department of ecology, due on April 1st of each year, containing a description of the efforts and successes in implementing a product stewardship approach, including reducing the use of hazardous materials and increasing the reuse and recycling of waste electronics; and
     (4) A visible label on each eligible electronic product sold in Washington that designates the name of the manufacturer.

NEW SECTION.  Sec. 8   The department of ecology shall periodically determine whether a nationally implemented reuse and recycling program for eligible electronic products exists. If the department determines that such a program exists and provides equal or greater opportunities for the collection, reuse, and recycling of eligible electronic products with equal or better environmentally responsible management than this chapter, then the department shall submit proposed legislation to repeal this chapter and adopt the nationally recognized program.

NEW SECTION.  Sec. 9   (1) The advisory committee appointed under section 6 of this act shall review the advance recycling fees set in section 3 of this act to determine whether a product category fee reflects the cost of management of the products in that category. If the fee collected for a product exceeds the cost of collecting, transporting, recycling, and processing the product, the advisory committee shall recommend an adjustment of the fee to the legislature.
     (2) The advisory committee shall monitor the costs to the selected entity of meeting the outcome criteria and providing the services specified in the request for proposal under section 6 of this act. If the advisory committee determines that the advance recycling fee is inadequate to meet performance goals or to provide the specified services, the advisory committee shall recommend an adjustment of the fee to the department.

NEW SECTION.  Sec. 10   This act takes effect January 1, 2007.

Sec. 11   RCW 43.79A.040 and 2005 c 424 s 18, 2005 c 402 s 8, 2005 c 215 s 10, and 2005 c 16 s 2 are each reenacted and amended to read as follows:
     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.
     (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.
     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.
     (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), ((and)) the life sciences discovery fund, and the electronic product stewardship account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 12   Sections 1 through 10 of this act constitute a new chapter in Title 19 RCW.