SB 196 and CSG Model Electronics Recycling Legislation

You asked for a comparison of the Council of State Governments/Eastern Regional Conference's (CSG/ERC) model electronics recycling legislation and SB 196.

Both CSG/ERC's model legislation, An Act Providing for the Recovery and Recycling of Used Electronic Devices, and SB 196, An Act Concerning the Recycling of Electronic Devices, provide for the recycling of certain electronic devices. The primary difference between the two is the method of funding. SB 196 uses the California model of an “advance recycling fee” paid by consumers to retailers at the point of purchase. The amount of the fee depends on the size of the device's video display. The CSG/ERC model legislation instead relies on an annual $ 5,000 registration fee and, in some cases, a collection and recycling fee. The device manufacturer pays both the registration and collection and recycling fees.

CSG/ERC's model legislation is the result of a collaboration between CSG/ERC, the Northeast Recycling Council, Inc. , more than 50 legislators, and legislative and environmental department staff. We have attached a copy of the legislation, released April 14, and a summary of its key elements.

The Environment Committee favorably reported SB 196 (File 329) on March 20, 2006. The bill is based on California's electronics waste law. We have attached a copy of the file copy. More information on electronic recycling programs in California, Maine, and Maryland is available in OLR Report 2006-R-0182 (attached).

Table 1, below, compares the CSG/ERC model electronics recycling legislation and SB 196.

	*CSG/ERC Model Legislation*	*SB 196*
Which devices are covered	Desktop and personal computers, computer monitors, laptops, and televisions purchased in retail sales. Computers' central processing units (CPU), are included, but not handheld calculators, portable digital assistants or telephones with a video display of less than 4” measured diagonally.	Items containing a cathode ray tube (CRT), CRT device, flat panel screen, or similar video display measuring at least four inches diagonally. It is unclear if separate CPUs are covered.
Includes leases	No	Yes
Funding Mechanism	Each manufacturer pays an annual $ 5,000 registration fee. In addition, manufacturers that do not recycle devices must pay a fee to cover the costs of collecting, shipping and recycling their share of devices. The state determines each manufacturer's share by first setting a recycling rate that is the ratio of the total weight of returned devices to the total weight of devices sold in the previous calendar year. Each manufacturer must either (1) pay a fee determined by multiplying this recycling rate by the weight of the manufacturer's devices sold in the state during the previous calendar year, multiplied by no more than 50 cents per pound, or (2) collect, ship, and recycle a number of devices equal to the weight of the devices it sold in the previous calendar year, multiplied by the recycling rate. If the manufacturer chooses to recycle, it must get state approval of its recycling plan. If it fails to comply with this plan, it must pay the costs of collecting, shipping and recycling the unmet portion of its obligation (weight of unmet portion multiplied by no more than 50 cents per pound), plus a 10% penalty. A manufacturer can obtain credits if it recycles more than its share of devices. It may apply the credits to its obligation in the following year.	Consumer pays an advance recycling fee of $ 6 to $ 10, depending on the size of the video display screen. Retailers remit fees, minus 3% retained for administrative costs, to the Department of Revenue Services, which places them in an Electronics Recycling Account created in the Department of Environmental Protection's (DEP) Environmental Quality Fund.
Do consumers pay to recycle their devices?	No	No
State agency responsibility	The state agency administering the program: (1) sets the recycling rate and assigns each manufacturer its annual recycling obligation; (2) collects and administers fees; (3) ensures at least one collection opportunity is available at least 5 days a week in each county in the state; (4) organizes and maintains public outreach, including a web site listing complying manufacturers; (5) prepares a plan every three years setting recycling goals, and reports annually to the legislature; (6) sets performance requirements for eligible collectors, transporters, and recyclers; and (7) reviews recycling and registration fees at least biennially.	DEP: (1) reimburses authorized collectors for recycling costs; (2) administers the recycling program; and (3) creates a public information program. The revenue services commissioner reviews the fee schedule at least every two years, beginning on or after July 1, 2007, and recommends fee adjustments to the Environment and Finance, Revenue and Bonding committees. DEP commissioner must adopt regulations to implement the recycling program.
Recycling Responsibilities	Manufacturers and other companies that submit bids to the state. In-state companies receive preference in the bidding process.	Authorized collectors (resources recovery authorities; municipal committees or municipalities; and private entities that contract with an authority, committee, or municipality).
Retailer Responsibility	Only sell products that comply with law. Provide consumers with recycling information	Submit quarterly returns to the commissioner of revenues services with payment of the fees collected in the previous quarter, minus 3% administrative fees. Retailers include manufacturers who sell or lease a device to a customer.
Disposal ban	Two years after enactment	Not addressed.


April 20, 2006		2006-R-0305
SB 196 AND CSG/ERC MODEL ELECTRONICS RECYCLING LEGISLATION

By: Paul Frisman, Principal Analyst