S-2264

AN ACT Relating to the secondary materials industry; amending RCW 70.95H.005, 70.95H.010, 70.95H.030, 70.95H.040, 70.95H.900, and 42.52.080; adding a new section to chapter 70.95H RCW; adding a new chapter to Title 70 RCW; repealing RCW 70.95H.007, 70.95H.020, 70.95H.040, 70.95H.050, and 70.95H.800; providing an effective date; and declaring an emergency.

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

Sec. 1. RCW 70.95H.005 and 1991 c 319 s 201 are each amended to read as follows:

(1) The legislature finds that:

(a) Recycling conserves energy and landfill space, provides jobs and valuable feedstock materials to industry, and promotes health and environmental protection;

(b) Seventy-eight percent of the citizens of the state actively participate in recycling programs and Washington currently has the highest recycling rate in the nation;

(d) Many local governments and private entities cumulatively affect, and are affected by, the market for recycled commodities but have limited jurisdiction and cannot adequately address the problems of market development that are complex, wide-ranging, and regional in nature; and

(e) The private sector has the greatest capacity for creating and expanding markets for recycled commodities, and the development of private markets for recycled commodities is in the public interest.

(2) Based on the state's recycling experience and the findings and recommendations of the 1996 future of recycling task force, the legislature further finds that:

(a) Washington state has made recycling a long-term strategy for resource conservation and solid waste management;

(b) It is the state's policy to integrate waste reduction with recycling in carrying out this strategy;

(c) Market development for recycled materials is essential to the success of this strategy, and the state has an on-going role and commitment in assisting with the development of markets; and

((~~It is therefore the policy of the state to create a single entity to be known as the clean Washington center to develop new, and expand existing, markets for recycled commodities~~)) (d) A stable resource base and enhanced funding flexibility are needed to effectively provide the services necessary to support the state's strategies and policies over the long term.

(3) It is therefore the policy of the state to encourage continued market development for recycled materials, which may be provided through a contract with a private nonprofit corporation.

NEW SECTION. Sec. 2. A new section is added to chapter 70.95H RCW to read as follows:

Unless the context clearly requires otherwise, these definitions apply throughout this chapter:

(1) "Corporation" means a private nonprofit corporation formed under chapter 24.03 RCW; and

(2) "Department" means the department of community, trade, and economic development.

Sec. 3. RCW 70.95H.010 and 1991 c 319 s 203 are each amended to read as follows:

(1) The ((~~purpose of the center is~~)) department may contract with a corporation to provide or facilitate business assistance, basic and applied research and development, marketing, public education, and policy analysis in furthering the development of markets for recycled products. As used in this chapter, market development consists of public and private activities that are used to overcome impediments preventing full use of secondary materials diverted from the waste stream, and that encourage and expand use of those materials and subsequent products. ((~~In fulfilling this mission the center shall primarily direct its~~)) Market development efforts shall focus primarily on services to businesses that transform or remanufacture waste materials into usable or marketable materials or products for use other than landfill disposal or incineration. All moneys for contracts entered into under this section are subject to appropriation.

(2) The department may establish a contract advisory committee to review the selection of a corporation to provide market development services. The contract advisory committee shall include one person from the department of ecology, one person representing cities, one person representing counties, and three people from the private sector representing end users and marketers of recycled products, and solid waste haulers. All members are to be appointed by the director of the department.

(3) The department, with the advice of the contract advisory committee, may issue a request for proposals from corporations to provide some or all of the services described in RCW 70.95H.030. The contract may be awarded only with the approval of the contract advisory committee.

(4) The contract may include the following provisions:

(a) Any equipment, software, membership agreements, licenses, contracts, or other assets that were related to the clean Washington center may be transferred to the corporation under appropriate terms and conditions, including reasonable compensation; and

(b) The contract may permit the corporation to charge fees and negotiate other revenue-sharing arrangements with clients for services provided under the contract in order to recover, at least in part, the costs of providing services under the contract. Revenue generated from clients under the contract must be accounted for and used by the corporation solely to help cover the cost of future services under the contract. Revenue generation is not the primary intent of the contract and the department of community, trade, and economic development, as contract administrator, should not permit revenue generation to compromise the public purpose of the services provided under the contract.

(5) A contract entered into under this section must provide for the department and the contract advisory committee to review the corporation's performance under the contract at least annually. The review must include, but is not limited to, consideration of the corporation's fees charged for services provided under this section and this chapter, and the extent to which the corporation's performance generally has helped the state to fulfill the purposes of this chapter. The department, with the approval of the contract advisory committee, may terminate or elect not to renew a contract with the corporation if the department and the contract advisory committee find that the corporation has performed unsatisfactorily or has failed to cure a breach of a material term of the contract in a timely manner.

Sec. 4. RCW 70.95H.030 and 1992 c 131 s 2 are each amended to read as follows:

The ((~~center shall~~)) contract defined in RCW 70.95H.010 may require a corporation to provide the following services:

(1) Provide targeted business assistance to recycling businesses, including:

(a) Development of business plans;

(b) Market research and planning information;

(d) Referral and information on market conditions; and

(e) Information on new technology and product development;

(2) Negotiate voluntary agreements with manufacturers to increase the use of recycled materials in product development;

(3) Support and provide research and development to stimulate and commercialize new and existing technologies and products using recycled materials;

(4) Undertake an integrated, comprehensive education effort directed to recycling businesses to promote processing, manufacturing, and purchase of recycled products, including:

(a) Provide information to recycling businesses on the availability and benefits of using recycled materials;

(b) Provide information and referral services on recycled material markets;

(d) Participate in projects to demonstrate new market uses or applications for recycled products;

(5) Assist the departments of ecology and general administration in the development of consistent definitions and standards on recycled content, product performance, and availability;

(6) Undertake studies on the unmet capital needs of reprocessing and manufacturing firms using recycled materials;

(7) Undertake and participate in marketing promotions for the purposes of achieving expanded market penetration for recycled content products;

(8) Coordinate with the department of ecology to ensure that the education programs of both are mutually reinforcing, with the ((~~center~~)) corporation acting as the lead entity with respect to recycling businesses, and the department as the lead entity with respect to the general public and retailers;

(9) Develop an annual work plan. The plan shall describe actions and recommendations for developing markets for commodities comprising a significant percentage of the waste stream and having potential for use as an industrial or commercial feedstock. The initial plan shall address, but not be limited to, mixed waste paper, waste tires, yard and food waste, and plastics; ((~~and~~))

(10) Represent the state in regional and national market development issues; and

(11) Coordinate market development activities with regional and local economic development agencies.

Sec. 5. RCW 70.95H.040 and 1991 c 319 s 206 are each amended to read as follows:

In order to carry out its responsibilities under this chapter, the center may:

(1) Receive such gifts, grants, funds, fees, and endowments, in trust or otherwise, for the use and benefit of the purposes of the center. The center may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments;

(2) Initiate, conduct, or contract for studies and searches relating to market development for recyclable materials, including but not limited to applied research, technology transfer, and pilot demonstration projects;

(3) Obtain and disseminate information relating to market development for recyclable materials from other state and local agencies;

(4) Enter into, amend, and terminate contracts with individuals, corporations, trade associations, and research institutions for the purposes of this chapter;

(5) Provide grants to local governments or other public institutions to further the development of recycling markets;

(6) Provide business and marketing assistance to public and private sector entities within the state; ((~~and~~))

(7) Evaluate, analyze, and make recommendations on state policies that may affect markets for recyclable materials; and

(8) Assist the department in developing a contract with a corporation to provide recycling market development services.

Sec. 6. RCW 70.95H.900 and 1991 c 319 s 209 are each amended to read as follows:

The center shall terminate on ((~~June 30, 1997~~)) December 31, 1997.

Sec. 7. RCW 42.52.080 and 1994 c 154 s 108 are each amended to read as follows:

(1) No former state officer or state employee may, within a period of one year from the date of termination of state employment, accept employment or receive compensation from an employer if:

(a) The officer or employee, during the two years immediately preceding termination of state employment, was engaged in the negotiation or administration on behalf of the state or agency of one or more contracts with that employer and was in a position to make discretionary decisions affecting the outcome of such negotiation or the nature of such administration;

(b) Such a contract or contracts have a total value of more than ten thousand dollars; and

(c) The duties of the employment with the employer or the activities for which the compensation would be received include fulfilling or implementing, in whole or in part, the provisions of such a contract or contracts or include the supervision or control of actions taken to fulfill or implement, in whole or in part, the provisions of such a contract or contracts. This subsection shall not be construed to prohibit a state officer or state employee from accepting employment with a state employee organization.

(2) No person who has served as a state officer or state employee may, within a period of two years following the termination of state employment, have a direct or indirect beneficial interest in a contract or grant that was expressly authorized or funded by specific legislative or executive action in which the former state officer or state employee participated.

(3) No former state officer or state employee may accept an offer of employment or receive compensation from an employer if the officer or employee knows or has reason to believe that the offer of employment or compensation was intended, in whole or in part, directly or indirectly, to influence the officer or employee or as compensation or reward for the performance or nonperformance of a duty by the officer or employee during the course of state employment.

(4) No former state officer or state employee may accept an offer of employment or receive compensation from an employer if the circumstances would lead a reasonable person to believe the offer has been made, or compensation given, for the purpose of influencing the performance or nonperformance of duties by the officer or employee during the course of state employment.

(5) No former state officer or state employee may at any time subsequent to his or her state employment assist another person, whether or not for compensation, in any transaction involving the state in which the former state officer or state employee at any time participated during state employment. This subsection shall not be construed to prohibit any employee or officer of a state employee organization from rendering assistance to state officers or state employees in the course of employee organization business.

(6) As used in this section, "employer" means a person as defined in RCW 42.52.010 or any other entity or business that the person owns or in which the person has a controlling interest. For purposes of subsection (1)(a) of this section, the term "employer" does not include a private, nonprofit corporation providing services under contract with the state to further the development of markets for recycled materials.

NEW SECTION. Sec. 8. The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective January 1, 1998:

(1) RCW 70.95H.007 and 1995 c 399 s 192 & 1991 c 319 s 202;

(2) RCW 70.95H.020 and 1995 c 399 s 193 & 1991 c 319 s 204;

(3) RCW 70.95H.040 and 1997 c . . . s 5 (section 5 of this act) & 1991 c 319 s 206;

(4) RCW 70.95H.050 and 1995 c 399 s 194 & 1991 c 319 s 207; and

(5) RCW 70.95H.800 and 1991 c 319 s 212.

NEW SECTION. Sec. 9. Waste reduction and recycling are the state's preferred solid waste management strategies and highest priorities for the collection, handling, and management of solid waste. The legislature finds that it cannot effectively carry out its regulatory program of waste reduction and recycling without financial contributions by those who create the need for, and share in the benefits of, that program. The purpose of this chapter is to assure that this contribution occurs in an effective, fair, and equitable way.

NEW SECTION. Sec. 10. (1) There is imposed on each person using the services of a solid waste collection business or municipal collection service, a solid waste collection tax of one-half of one percent of the consideration charged for the services.

(2) Money received by the state under subsection (1) of this section must be deposited in the recycling and waste prevention account created under section 13 of this act.

(3) The person collecting the charges made for using the solid waste collection business must collect the tax imposed in this section, and pay the tax to the department of revenue.

(4) To prevent pyramiding, the tax imposed in this chapter does not apply to a solid waste collection business using the services of another solid waste collection business for the transfer, storage, processing, or disposal of the waste collected during the transaction. To be eligible for this exemption, a person first must be certified by the department of revenue as a solid waste collection business.

(5) The tax imposed in this section does not apply to any agency, division, or branch of the federal government or to services rendered under a contract therewith.

(6) The provisions of chapter 82.32 RCW shall apply to the administration of this tax.

NEW SECTION. Sec. 11. The department of revenue may adopt rules under chapter 34.05 RCW to enforce the provisions of this chapter.

NEW SECTION. Sec. 12. For purposes of this chapter, "solid waste collection business" means every person who receives solid waste for transfer, storage, or disposal including, but not limited to, all collection services, public or private landfills or waste incinerators, transfer stations, and similar operations.

NEW SECTION. Sec. 13. The recycling and waste prevention account is created in the state treasury. All receipts from section 10 of this act must be deposited into the account. Moneys in the account may only be spent after appropriation. Expenditures from the account may only be used to:

(1) Provide technical and financial assistance to local governments in developing and implementing recycling and waste reduction plans and programs;

(2) Develop markets for recycled materials and assist businesses with waste reduction, resource conservation, and designing for recycling;

(3) Conduct evaluations, assessments, research, and studies needed to support the state's recycling and waste reduction goals;

(4) Provide state coordination, planning, and policy development for recycling and waste reduction;

(5) Conduct research and studies to assess the efficiency of existing collection and processing technologies, the feasibility of new technologies, and other recycling and waste reduction activities to carry out the purposes of chapter 70.95 RCW; and

(6) Administer and collect the tax imposed in this chapter.

NEW SECTION. Sec. 14. Sections 9 through 13 of this act constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 15. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect June 15, 1997.