SB367: Bill Text

SB367,1,7 An Act to amend 16.72 (2) (f), 16.75 (1) (a) 1., 287.91 (2) and 287.97; and to create 16.71 (7), 16.72 (2) (g), 20.370 (2) (hg), 287.07 (5) and 287.17 of the statutes; relating to: the disposal of electronic equipment, producer responsibility for electronic devices that are discarded, substances contained in electronic equipment, grants for facilities and systems for recycling electronic equipment, state purchasing of electronic equipment, granting rule-making authority, making an appropriation, and providing a penalty.

Analysis by the Legislative Reference Bureau

This bill makes numerous changes in the law related to the disposal of electronic equipment.

Producer responsibility

This bill requires a producer of electronic equipment to implement a program under which the producer finances the collection and recycling or disposal of certain kinds of electronic equipment sold in this state. The kinds of electronic equipment that must be collected are televisions, computer monitors, color video display devices, certain other video display devices, computers that weigh more than six pounds, digital audio storage devices, printers, facsimile transmission devices, optical scanners, and mobile telephones (covered electronic equipment). The bill authorizes the Department of Natural Resources (DNR) to promulgate rules adding additional kinds of electronic equipment to this list. If a producer fails to implement a program that satisfies the requirements of the bill, the bill prohibits the sale of the producer's covered electronic equipment in this state.

A producer is responsible for financing the collection and disposition of its own covered electronic equipment that is sold in this state after the requirement takes effect and a portion of all covered electronic equipment, without regard to who produced the equipment, that was sold in this state before the requirement takes effect (historic and orphan covered waste). The amount of historic and orphan covered waste for which a producer is responsible is based on the producer's market share.

The bill requires a producer to submit a plan describing its proposed program to DNR no later than 30 months after this bill becomes law. A plan must satisfy a number of requirements in addition to containing the provisions that the producer proposes to implement to comply with the requirements for financing the collection and disposition of covered electronic equipment. The plan must show how the producer will comply with requirements for the protection of workers who participate in the collection and disposition of covered electronic equipment, how the producer will comply with labeling and consumer education requirements, and how the producer will ensure that covered electronic equipment will not be exported to a country that is not a member of the Organization for Economic Cooperation and Development, except that covered electronic equipment may be exported if it is in working order and destined for direct reuse. A plan must also include provisions for the payment of a fee for each piece of a producer's covered equipment sold at retail in this state. The fee is $1 before January 1, 2013, 60 cents from 2013 to 2017, and 20 cents after 2017. A plan must also describe the actions that the producer will take if the plan, once implemented, fails to achieve the performance requirements set forth in the bill for the amount of covered electronic equipment collected and the amount of components and materials that are reused or recycled.

The bill requires DNR to review the plan submitted by a producer and, within four months of receiving the plan, approve the plan or notify the producer of any deficiencies. A producer must begin to implement its plan upon approval and must fully implement the plan within a year after approval. Once DNR approves a producer's plan or within three years after the bill becomes law, whichever is earlier, the producer must also provide to DNR proof of financial responsibility for complying with the bill's requirements. The amount of the proof of financial responsibility is based on the sales of the producer's covered electronic equipment in this state, but may not be less than $300,000. The bill also requires a producer to conduct public polling to determine public awareness of the producer's program.

The bill requires a producer to submit to DNR an annual report on its program showing whether the program is consistent with the approved plan and whether the producer has achieved the performance requirements set forth in the bill. DNR must review each report and, within nine months of receipt of the report, notify the producer of any deficiency in its program. If a producer fails to remedy deficiencies by a deadline set by DNR, DNR notifies the producer that its program is disapproved and no person may sell the producer's covered electronic equipment in this state.

The bill allows a producer to work jointly with other producers to comply with the bill's requirements. The bill also authorizes DNR to grant a waiver from the requirements in the bill to a producer with sales in this state that have a dollar value of less than 0.1 percent of the dollar value of all sales of covered electronic equipment in this state.

Prohibition on hazardous substances in electronic equipment

This bill prohibits the sale in this state of covered electronic equipment that contains certain substances beginning seven years after this bill becomes law, unless DNR grants an exemption from the prohibition for a specific substance. The substances are lead, mercury, cadmium, beryllium, hexavalent chromium, brominated flame retardants, and polyvinyl chloride. DNR may promulgate rules adding substances to this list. DNR may grant an exemption from the prohibition for a limited term if a producer demonstrates that it is technically impossible to substitute a less harmful alternative.

Landfill ban

This bill prohibits the disposal in landfills of televisions, computer monitors, color video display devices, certain other video display devices, computers that weigh more than six pounds, digital audio storage devices, printers, and facsimile transmission devices. The prohibition takes effect on January 1 of the first year that begins at least a year after the bill becomes law, except that the secretary of natural resources may delay the effective date of the prohibition if its application will result in hardship for local governments.

State purchasing

This bill prohibits a state agency from purchasing covered electronic equipment produced by a producer that fails to submit a plan to DNR for the collection and disposition of covered electronic waste by the deadline established in the bill. The bill also requires the Department of Administration and other state agencies, in writing specifications for the purchase of covered electronic equipment, to incorporate terms requiring the vendor to take possession of or otherwise properly dispose of the equipment after the equipment is taken out of service.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB367, s. 1 Section 1. 16.71 (7) of the statutes is created to read:

SB367,4,2 16.71 (7) The department, any other designated purchasing agent under sub. (1), and each authority other than the University of Wisconsin Hospitals and Clinics Authority, may not purchase covered electronic equipment, as defined in s. 287.17 (1) (a), produced by a vendor that has violated s. 287.17 (3) until the department of natural resources approves a plan for the vendor under s. 281.17 (4).

SB367, s. 2 Section 2. 16.72 (2) (f) of the statutes is amended to read:

SB367,4,13 16.72 (2) (f) In Except as provided in par. (g), in writing specifications under this subsection, the department, any other designated purchasing agent under s. 16.71 (1), and each authority, other than the University of Wisconsin Hospitals and Clinics Authority, shall incorporate requirements relating to the recyclability and ultimate disposition of products and, wherever possible, shall write the specifications so as to minimize the amount of solid waste generated by the state, consistent with the priorities established under s. 287.05 (12), and to minimize the amount of hazardous waste generated by the state. All specifications under this subsection shall discourage the purchase of single-use, disposable products and require, whenever practical, the purchase of multiple-use, durable products.

SB367, s. 3 Section 3. 16.72 (2) (g) of the statutes is created to read:

SB367,4,21 16.72 (2) (g) In writing specifications under this subsection pertaining to covered electronic equipment, as defined in s. 287.17 (1) (a), the department, any other designated purchasing agent under s. 16.71 (1), and each authority, other than the University of Wisconsin Hospitals and Clinics Authority, shall incorporate terms requiring the vendor to take possession of or otherwise properly dispose of the covered electronic equipment after the covered electronic equipment is taken out of service by the department, designated purchasing agent, or authority, as applicable.

SB367, s. 4 Section 4. 16.75 (1) (a) 1. of the statutes, as affected by 2005 Wisconsin Act 25, is amended to read:

SB367,5,7 16.75 (1) (a) 1. All orders awarded or contracts made by the department for all materials, supplies, equipment, and contractual services to be provided to any agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t), (6), (7), (8), (9), and (10m) and ss. 16.71 (7), 16.73 (4) (a), 16.751, 16.754, 50.05 (7) (f), 153.05 (2m) (a), 287.15 (7), and 301.265, shall be awarded to the lowest responsible bidder, taking into consideration life cycle cost estimates under sub. (1m), when appropriate, the location of the agency, the quantities of the articles to be supplied, their conformity with the specifications, and the purposes for which they are required and the date of delivery.

SB367, s. 5 Section 5. 20.370 (2) (hg) of the statutes is created to read:

SB367,5,11 20.370 (2) (hg) Producer responsibility for electronic waste. All moneys received under s. 287.17 for the cost of administering the electronic waste program under ss. 287.07 (5) and 287.17 and to make grants under s. 287.17 (15m).

SB367, s. 6 Section 6. 287.07 (5) of the statutes is created to read:

SB367,5,16 287.07 (5) Electronic devices. (a) Except as provided under par. (b), beginning on January 1 of the first year that begins at least 365 days after the effective date of this subsection .... [revisor inserts date], no person may dispose of any of the following in a solid waste disposal facility:

SB367,5,19 1. A television; a computer monitor; a color video display device; or another video display device with a screen that is at least 8 inches in its longest diagonal measurement.

SB367,5,20 2. A computer that weighs more than 6 pounds, including a portable computer.

SB367,5,21 3. A digital audio storage device.

SB367,5,22 4. A printer.

SB367,5,23 5. A facsimile transmission device.

SB367,6,5 (b) The secretary of natural resources may delay the effective date of par. (a) if the secretary finds that application of par. (a) will result in unacceptable hardship for municipalities or counties in conducting solid waste recycling or disposal activities. The secretary may not delay the effective date by more than 3 years. The secretary shall provide a notice of any delay under this paragraph, including the delayed effective date, to the revisor of statutes for publication in the Wisconsin Administrative Register.

SB367, s. 7 Section 7. 287.17 of the statutes is created to read:

SB367,6,8 287.17 Producer accountability for electronic waste. (1) Definitions. In this section:

SB367,6,9 (a) "Covered electronic equipment" means any of the following:

SB367,6,12 1. A television; a computer monitor; a color video display device; or another video display device with a screen that is at least 8 inches in its longest diagonal measurement.

SB367,6,13 2. A computer that weighs more than 6 pounds, including a portable computer.

SB367,6,14 3. A digital audio storage device.

SB367,6,15 4. A printer.

SB367,6,16 5. A facsimile transmission device.

SB367,6,17 6. An optical scanner.

SB367,6,18 7. A mobile telephone.

SB367,6,20 8. Any other kind of electronic equipment specified by the department under sub. (12).

SB367,6,24 (b) "Covered electronic waste" means covered electronic equipment that has been taken out of service or has been relinquished for recycling or disposal but has not been recycled or finally disposed of. "Covered electronic waste" does not include covered electronic equipment that has been donated for reuse or sold for reuse.

SB367,7,2 (c) "Electronic equipment" means equipment that requires electric current or electromagnetic fields to function and that contains a circuit board.

SB367,7,6 (cm) "Historic covered waste" means covered electronic equipment that was first sold at retail before the effective date under sub. (2) and that has become electronic waste, the producer of which is in business on the effective date under sub. (2).

SB367,7,9 (d) "Orphan covered waste" means covered electronic equipment that was first sold at retail before the effective date under sub. (2) and that has become electronic waste, the producer of which is not in business on the effective date under sub. (2).

SB367,7,11 (e) "Producer" means a person, other than a person that remanufactures and resells covered electronic waste, that does any of the following:

SB367,7,12 1. Manufactures and sells covered electronic equipment under its own brand.

SB367,7,14 2. Manufactures and sells covered electronic equipment without affixing a brand.

SB367,7,16 3. Resells covered electronic equipment manufactured by others under the person's own brand.

SB367,7,18 (f) "Program" means the actions that are taken to carry out a plan approved under sub. (4).

SB367,7,21 (g) "Recycling" means processing waste materials to prepare them to be used for the same or a different use. "Recycling" does not include burning waste with or without energy recovery.

SB367,7,23 (h) "Reuse" means to use covered electronic equipment or a component of covered electronic equipment for its original use.

SB367,8,3 (2) Effective date. The effective date for subs. (3) to (14) is the first day of the 25th month beginning after the effective date of this subsection .... [revisor inserts date].

SB367,8,7 (3) Plan. (a) Except as provided under sub. (13), no later than the first day of the 6th month beginning after the effective date under sub. (2), a producer whose covered electronic equipment is sold in this state shall submit to the department a plan that includes all of the following:

SB367,8,12 1. Provisions, designed to achieve the performance requirements in sub. (7) (a), under which the producer finances the collection, transportation, and reuse, recycling, treatment, or disposal, in a manner that is consistent with all requirements under state law, of the producer's covered electronic equipment first sold at retail after the effective date under sub. (2) that is discarded in this state.

SB367,8,17 2. Provisions, designed to achieve the performance requirements in sub. (7) (b), under which the producer finances the collection, transportation, and reuse, recycling, treatment, or disposal, in a manner that is consistent with all requirements under state law, of the producer's share, as determined under sub. (7) (c), of historic covered waste and orphan covered waste.

SB367,8,19 3. Provisions to ensure compliance with the worker protection requirements in sub. (7) (d) and (e).

SB367,8,20 4. Provisions for meeting the labeling requirements in sub. (8).

SB367,8,21 5. Provisions for meeting the consumer education requirements in sub. (9).

SB367,8,23 6. Provisions for meeting the requirements for providing information to recyclers in sub. (10).

SB367,9,3 7. A description of actions that will be implemented by the producer if the provisions under subd. 1. or 2. fail to achieve the performance requirements in sub. (7) (a) or (b).

SB367,9,6 8. Documentation, such as contracts, letters of intent, or memoranda of understanding, that all persons whose participation is needed to implement the provisions under subds. 1. and 2. are willing to participate.

SB367,9,7 9. One of the following:

SB367,9,12 a. Information concerning the number of the producer's televisions sold in this state during each of the 10 years before the year in which the producer submits the plan and information concerning the number and type of the producer's computers, mobile telephones, and other pieces of covered electronic equipment sold in this state during each of the 5 years before the year in which the producer submits the plan.

SB367,9,15 b. A statement that the producer prefers to have the department estimate under sub. (7) (c) the sales of the producer's covered electronic equipment in this state.

SB367,9,16 10. Provisions that ensure all of the following:

SB367,9,20 a. That covered electronic waste collected under the plan that contains a substance listed in sub. (15) (a) 1. to 8. and that is not in working order is not exported to any country that is not a member of the Organization for Economic Cooperation and Development.

SB367,9,24 b. That covered electronic waste collected under the plan that contains a substance listed in sub. (15) (a) 1. to 8. and that is in working order is not exported to any country that is not a member of the Organization for Economic Cooperation and Development unless the producer or a person participating in the producer's program certifies to the department that the covered electronic waste is in working order and is destined for direct reuse.

SB367,10,4 11. Provisions to ensure that opportunities and locations for collection of covered electronic waste are convenient for all persons in this state.

SB367,10,6 12. Provisions for the payment of the partial electronics recycling fee under sub. (14) (b).

SB367,10,7 13. Procedures for modifying the plan with the consent of the department.

SB367,10,13 (b) A producer may not include in a plan under par. (a) a requirement that persons who wish to discard covered electronic equipment pay a fee, at the time that the covered electronic equipment is relinquished, to discard the covered electronic equipment, but may require those persons to deliver covered electronic equipment to a collection point or to ship covered electronic to a person designated by the producer if the producer pays for the shipping.

SB367,10,17 (c) A producer may provide for a person other than the producer, including an entity created by more than one producer, to implement portions of a plan under par. (a) and may provide for implementation of portions of a plan jointly with other producers.

SB367,11,2 (4) Review of plan. The department shall review a plan submitted under sub. (3) within 3 months of its submission to determine whether the plan complies with the requirements of that subsection. Within 30 days after completing its review, the department shall notify a producer of any deficiencies in the producer's plan. If an original or modified plan complies with the requirements of sub. (3), the department shall approve the plan. If a producer fails to remedy deficiencies in the producer's plan by a deadline set by the department, the department shall disapprove the plan and no person may sell the producer's covered electronic equipment in this state until all of the following occur:

SB367,11,3 (a) The producer submits a new plan.

SB367,11,5 (b) The producer pays a fee in the amount specified under sub. (14) for submitting an original plan.

SB367,11,6 (c) The department approves the new plan.

SB367,11,9 (5) Implementation. Upon approval under sub. (4) of a producer's plan, the producer shall begin to implement the plan. A producer shall fully implement its plan no more than 12 months after the department approves the plan under sub. (4).

SB367,11,20 (6) Proof of financial responsibility. Except as provided under sub. (13), no person may sell a producer's covered electronic equipment in this state beginning on the first day of the 12th month beginning after the effective date under sub. (2) or on the first day of the 2nd month beginning after the approval of the producer's plan under sub. (4), whichever is earlier, unless the producer files with the department a surety bond or other form of financial assurance acceptable to the department in an amount equal to $300,000 or 10 percent of the dollar amount of the sales of the producer's covered electronic equipment in this state in the year before the producer files the bond, whichever is greater, established in favor of or made payable to the department to cover costs incurred because of any violation by the producer of the requirements of this section.

SB367,11,24 (7) Performance requirements. (a) To achieve the performance requirements for a producer's covered electronic equipment that is sold at retail after the effective date under sub. (2) and that is discarded in this state, a producer must demonstrate all of the following: