HB4957 95TH GENERAL ASSEMBLY

LRB095 18659 RCE 44748 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4957

Introduced , by Rep. Thomas Holbrook

SYNOPSIS AS INTRODUCED:

New Act
415 ILCS 5/22.54 new

Creates the Electronic Scrap Recycling Act. Creates the Illinois Materials Management and Financing Commission to manage cost-efficient and environmentally sound State collection, transportation, and recycling of certain electronic devices. Contains provisions concerning a basic fee mechanism, restrictions on hazardous substances, fee reductions for certain manufacturers, self-recycling, retailer responsibilities, program operational standards, State government procurement, and relation to federal law. Amends the Environmental Protection Act concerning e-scrap in landfills. Contains other provisions. Effective immediately, except some provisions are operative beginning January 1, 2009.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning safety.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Electronic Scrap Recycling Act.

Section 5. Purpose.

(1) The General Assembly finds:

(a) that discarded electronic devices, known as E-scrap, is the fastest growing portion of materials found as discards in the waste stream with 2,600,000 tons of E-scrap generated in 2005, but only 13% of that recycled, according to the United States Environmental Protection Agency;

(b) that hazardous materials such as lead, mercury, cadmium, hexavalent chromium and other chemicals are found in many electronic devices and, if improperly managed, may pose environmental risks at the products' end-of-life;

(c) that many electronic devices that become obsolete for a given user can in fact be refurbished and redeployed for reuse to a secondary user that can utilize the devices to enhance educational and technological capabilities of Illinois residents;

(d) that valuable commodities including steel, glass, plastics, and precious metals can be successfully recovered and recycled, thus conserving natural resources and energy, as well as reducing air and water pollution, and greenhouse gas emissions;

(e) that the State has adopted a hierarchy to manage wastes which places reuse and recycling as the preferred management strategy over incineration and landfill disposal options;

(f) that the Illinois Recycling Economic Information Study of 2001 estimates that the total economic impact of establishing statewide recycling and reuse programs for E-scrap may result in the creation of nearly 4,000 new jobs and $740 million in annual receipts;

(g) that the State-appointed Computer Equipment Disposal and Recycling Commission issued a final report in May 2006 recommending legislative, regulatory, or other actions to properly address E-scrap management.

(2) It is the purpose of this Act to establish the Illinois Materials Management and Financing Commission, a not-for-profit public benefit corporation, to develop and manage an environmentally sound statewide system for the collection and recycling of electronic devices in accordance with State policy.

Section 10. Definitions. When used in this Act, unless the context clearly indicates otherwise, the following terms have the meanings ascribed to them in this Section:

"Agency" means the Illinois Environmental Protection Agency.

"Basel Convention" means the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal and is a global agreement ratified by over 100 member countries addressing the problems and challenges posed by hazardous waste. It aims to minimize the generation of hazardous wastes in terms of quantity and hazardousness, to dispose of them as close to the source of generation as possible, and to reduce the movement of hazardous wastes.

"Broker" is a person who engages in the buying, selling, and trading of CEDs.

"Cathode ray tube" or "CRT" means a vacuum tube or picture tube used to convert an electronic signal into a visual image (e.g. a computer monitor).

"Cellular telephone" means a hand-held mobile radiotelephone, normally equipped with a viewing screen less than 4 inches when measured diagonally, for use in an area divided into small sections, each with its own short-range transmitter/receiver.

"Commission" means the Illinois Materials Management and Financing Commission, as defined in Section 25 of this Act.

"Computer" means an electronic, magnetic, optical, electrochemical, or other highspeed data processing device performing logical, arithmetic, or storage functions, and may include both a computer central processing unit and a monitor, but does not include an automated typewriter, electronic printer, portable hand-held calculator, portable digital assistant (PDA), or other similar device.

"Computer peripheral" means a device that is external to but connected with and controlled by a computer central processing unit, such as a zip drive, scanner, cable, mouse, keyboard or similar device.

"Covered electronic device or CED" means any computer, portable computer, electronic printer, computer peripheral, video display device, video display device peripheral, or facsimile machine that has been used and discarded in this State regardless of purchase location.

"Demanufacturing" means the process of separating CEDs into metallic and non-metallic parts that can be recycled or reused.

"Design for environment" means: (1) an environmental manufacturing process that reduces the level of toxic materials utilized in the manufacturing and production of a product and (2) designing products that are easier to disassemble and recycle.

"Dismantling" means the manual demanufacturing of CEDs to reuse or recycle components and commodities contained therein.

"Downstream recycler" means a person that receives CEDs from a recycler or broker for additional processing or disposition.

"Electronic device" means an instrument that accomplishes its purpose by controlling the flow of electrons through inputs, processing, and outputs.

"E-scrap" is an informal name for electronic products at the end of their useful life. The term is generally applied to consumer and business electronic equipment and includes, but is not limited to, computers and their associated peripheral equipment, as well as televisions, video cassette recorders, digital video disc players, stereos, copiers, facsimile machines, and cellular phones.

"Manufacturer" means any person in business or no longer in business but having a successor in interest, who, irrespective of the selling technique used, including by means of distance or remote sale:

(1) manufactures or has manufactured CEDs under its own brand for sale in this State;

(2) manufactures or has manufactured CEDs for sale in this State without affixing a brand;

(3) resells or has resold in this State CEDs produced by other suppliers under its own brand or label; or

(4) manufactures or has manufactured a cobranded product for sale in or import into this State that carries the name of both the manufacturer and a retailer;

(5) imports or has imported a covered electronic product in to the United States that is sold in or imported into this State. However, if the imported covered electronic device is manufactured by any person with a presence in the United States meeting the criteria of manufacturer under items (1) through (4) of this subsection, that person is the manufacturer. For purposes of this subsection, "presence" means any person that performs activities conducted under the standards established for interstate commerce under the commerce clause of the United States Constitution; or

(6) sells at retail a covered electronic product acquired from an importer that is the manufacturer as described in item (5) of this subsection, and elects to register in lieu of the importer as the manufacturer of those products.

"Monitor" means a separate visual display component of a computer, either sold separately or together with a computer central processing unit box. A monitor is made up of: (i) a cathode ray tube; liquid crystal display; gas plasma; digital light processing; or other image projection technology greater than 4 inches when measured diagonally; (ii) a case; (iii) interior wires and circuitry; (iv) a cable to the central processing unit; and (v) a power cord.

"New Entrant" means (1) a manufacturer of video display devices, video display device peripherals, or facsimile machines, that have been sold in the State for less than 10 years or (2) a manufacturer of computers, portable computers, electronic printers, and computer peripherals that have been sold in the State for less than 5 years. However, a manufacturer of both video display devices and computers, or a manufacturer of both video display devices and computer monitors that is deemed a new entrant under either (1) or (2) of this definition, but not both, is not considered a new entrant.

"Orphan CEDs" means those CEDs that are returned for recycling or reuse for which the manufacturer cannot be identified or is no longer conducting business and has no successor in interest.

"Person" means any individual, partnership, cooperative enterprise, unit of local government, institution, corporation or agency, or any other legal entity whatsoever which is recognized by law as the subject of rights and duties.

"Portable computer" means a computer and video display greater than 4 inches in size when measured diagonally that can be carried as one unit by an individual (e.g. a laptop computer).

"Processing" means the mechanical demanufacturing of CEDs to recover various commodities contained therein.

"Recycler" means a person that engages in recycling of CEDs.

"Recycling" means any process by which CEDs that would otherwise be disposed of or discarded are collected, separated, demanufactured, or processed and are returned to the economic mainstream in the form of raw materials or products.

"Recycling facility" means all contiguous land, structures, other appurtenances, and improvements used for demanufacturing, dismantling, or processing of CEDs for recycling or reuse. A recycling facility does not include a location to refurbish CEDs.

"Refurbish" means a process by which non-functioning or damaged electronic devices or products are returned to a functioning state.

"Retailer" means a person who owns or operates a business that sells new CEDs in this State by any means to an end user.

"Reuse" means the recovery or reapplication of a CED in a manner that retains its original form or identity and does not involve processes that significantly alter its original condition or its intended purpose.

"Video display device" means an output surface having a viewable area greater than 4 inches when measured diagonally that displays moving graphical images or a visual representation of image sequences or pictures, showing a number of quickly changing images on a screen in fast succession to create the illusion of motion, including, if applicable, a device that is an integral part of the display that produces the moving image on the screen. Displays typically use a CRT, liquid crystal display, gas plasma, digital light processing, or other image projection technology.

"Video display device peripherals" means a device that is external to, but connected to, a video display device for the purpose of viewing media such as video game consoles, video cassette recorders/players, digital video disk players, or similar devices.

Section 15. Scope. All households in this State and all units of State government are covered by this Act. In addition, any charity, school district, small business, or unit of government located in this State that generates less than 1,000 kilograms of E-scrap in a calendar month is covered by this Act.

Section 20. Scope of covered electronic devices (CEDs). This Act does not cover any of the following:

(1) A CED 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.

(2) A CED that is functionally or physically a part of a larger piece of equipment designed and intended for use in an industrial, commercial, agricultural, or medical setting, including diagnostic, monitoring, or control equipment.

(3) A CED that is contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier, water pump, sump pump, or air purifier.

(4) Small consumer electronic devices including wristwatches, timers and clocks; cellular telephones; sonar and fish locators; radar detectors; thermometers; hand-held calculators; levels, tape measures, stud finders, and other electronic building supplies; garage door openers; games; range finders; personal digital assistants; electronic encoding audio data storage and retrieval devices; and other similar devices.

The Commission shall, on an annual basis, review the electronics marketplace and shall determine which, if any, additional products shall be added to or deleted from the list of CEDs defined in this Section. All proposed changes to the list of CEDs must be approved in writing by the Agency.

Section 25. Recycling system management.

(a) The Illinois Materials Management and Financing Commission is established as a public body corporate and politic, constituting an instrumentality of the State exercising essential governmental functions. The Commission shall be solely responsible for managing a cost-efficient and environmentally sound State collection, transportation, and recycling system for CEDs. The Commission will be funded via the fees described in Section 30 of this Act. The Commission will be organized as follows:

(1) The Commission is governed by a 9-member board of directors, which shall be appointed by January 1, 2009. The members of the board of directors shall be appointed by the Governor, with the advice and consent of the Senate. The Governor shall designate one of his or her appointees as the chair, who shall represent a recognized 501(c)(3) environmental advocacy organization headquartered in Illinois. Four members shall be appointed by the Governor as follows: 2 from the electronics manufacturing industry, one from Illinois' recycling industry, and one from Illinois' retailers. Four additional members shall be appointed by the Governor.

(2) The Department of Commerce and Economic Opportunity will issue a report to the Commission board of directors no later than January 31, 2009, recommending an initial registration fee calculated to cover the Commission's cost of operation in fiscal year 2010, to begin July 1, 2009. The Commission board of directors shall inform manufacturers of the fee no later than April 1, 2009, and it shall be due and payable to the Illinois Department of Revenue by July 1, 2009.

(3) By July 1, 2009, the Illinois Department of Revenue shall create a dedicated fund into which all fees remitted under this Act are deposited. The Commission's cost of operations will be appropriated annually by the General Assembly from this fund.

(4) By September 1, 2008, the Agency must determine the amount that shall be deposited with the State by new entrants seeking to sell CEDs in the State. This deposit shall be based on the probable cost of future recycling of new entrants' CEDs, based on the best available market share and cost-per-pound recycling data from the United States, including data from other states. This deposit is in addition to the registration fee described in item (3) of this subsection, and shall be refunded with interest to the new entrant when the new entrant's years of doing business in the State exceed the thresholds defined in Section 10.

(5) The board shall select from its membership such other officers besides the chair as it deems appropriate.

(6) A majority of the board constitutes a quorum.

(7) The directors of the Department of Commerce and Economic Opportunity and the Illinois Environmental Protection Agency shall serve as non-voting ex officio members. The State agency directors serving in ex officio capacity may each designate an employee of their respective departments to act on their behalf in all respects with regard to any matter to come before the Commission. Ex officio designations must be made in writing and communicated to the chair of the Commission.

(8) By December 31, 2009, the Commission shall submit to the General Assembly a business plan that:

(A) includes an organizational structure;

(B) outlines the Commission's projected operational revenues and expenses for the 5 fiscal years beginning July 1, 2010; and

(C) proposes changes, if any, to the registration fee for all manufacturers calculated to cover the Commission's cost of operation in the fiscal year beginning July 1, 2010.

(D) Determine the amount that shall be deposited with the State by new entrants seeking to sell CEDs in the State. This deposit shall be based on the probable cost of future recycling of new entrants' CEDs, based on the best available market share and cost-per-pound recycling data from the United States, including data from other states. This deposit is in addition to the registration fee described in item (3) of this subsection, and shall be refunded with interest to the new entrant when the new entrant's years of doing business in the State exceeds the thresholds defined in Section 10.

(9) Any member of the board may be removed for misfeasance, malfeasance, or willful neglect of duty after notice and a public hearing, unless the notice and hearing are expressly waived in writing by the affected member.

(10) The Commission shall have the authority to administer this Act, including the power to assess penalties for non-compliance and to develop rules implementing this Act.

The members of the board shall serve without compensation but are entitled to reimbursement, solely from the funds appropriated to the Commission, for expenses incurred in the discharge of their duties under this Act.

(b) Specific responsibilities of the Commission shall be to:

(1) Organize, administer, and ensure that electronics collection opportunities are available throughout the State and in such a manner as to be convenient, to the maximum extent feasible, to all covered persons in the State.

(2) Encourage the use of existing collection and consolidation infrastructures for handling CEDs to the extent that this infrastructure is accessible on a regular and ongoing basis to Illinoisans, is cost effective, and meets the environmentally sound management requirements described in this Act. The Commission shall, through contractual agreement, compensate for the collection and recycling of CEDs, by recyclers and brokers meeting the requirements of Section 60, whether by government, for-profit corporations, non-profit corporations, retailers, manufacturers, or any other party, for the reasonable costs associated with these activities. These activities shall be audited annually. In order to strengthen the market for Illinois recycling companies, the Commission shall not pay for costs associated with the use of prison labor.

(3) Maintain a list of all manufacturers that have registered with the State and post the list on an Internet website. Two years after the effective date of this Act, no manufacturer may sell a CED in Illinois unless the manufacturer has registered with the State and is in compliance with the provisions of this Act. Further, beginning July 1, 2009, no manufacturer or retailer may sell any CED in Illinois unless the manufacturer has registered and the CED is labeled with the manufacturer's brand, and that label is permanently affixed and is readily visible.

(4) By January 1, 2010, set the cost per pound for collection, transportation, and recycling of CEDs in order to reasonably approximate market costs for these services, which cost per pound is used to calculate the fee required by Section 30 of this Act. Beginning July 1, 2011, and annually thereafter, the Commission may adjust such cost per pound in order to reasonably approximate market costs for the collection, transportation, and recycling of CEDs. Prior to setting or adjusting the cost per pound, the Commission shall notify the public, including all manufacturers registered under subsection (a) of Section 30 of this Act, of the proposed cost per pound and provide a public comment period. By the May 1 prior to the program year for which the revised cost per pound is to be used, the Commission shall notify all registered manufacturers of any adjustments to the cost per pound, as well as any adjustments to the registration fee.

(5) Determine the return share for each program year for each manufacturer by dividing the weight of CEDs identified for each manufacturer by the total weight of CEDs identified for all manufacturers. For the first program year, beginning July 1, 2010, the return share of CEDs identified for each manufacturer shall be based on the best available CED public return share data from the United States, including data from other states. For the second and each subsequent program year, the return share of CEDs identified for each manufacturer shall be based on the most recent samplings of CEDs conducted in this State as described in item (8) of this subsection, and sampling conducted by manufacturers choosing the self-recycling option as described in Section 45 of this Act.

(6) Determine the return share in weight for each program year for each manufacturer for whom a return share is determined under item (5) of this subsection by multiplying the return share for each such manufacturer by the total weight in pounds of CEDs, including orphan devices, collected from covered entities the previous program year. For the first program year, the total weight in pounds of CEDs shall be based on the best available public weight data from the United States, including data from other states. For the second and each subsequent program year, the total weight in pounds of CEDs shall be based on the total weight of CEDs, including legacy and orphan devices, as described in item (8) of this subsection, and sampling conducted by manufacturers choosing the self-recycling option as described in Section 45 of this Act.

(7) By January 1, 2010, the Commission shall provide each manufacturer for whom a return share is determined pursuant to item (5) of this subsection with its return share and its return share in weight for the year beginning July 1, 2010. Beginning on April 1, 2011 and by April 1 of each year thereafter, the Commission shall provide each manufacturer for whom a return share is determined pursuant to item (5) of this subsection with its return share and its return share in weight for the second and subsequent program years.

(8) By March 15, 2011, and by March 15 of each year thereafter:

(A) Complete an auditable, statistically significant sampling of CEDs collected by the Commission during the previous 12 months. The sampling to be completed by March 15, 2011, shall be calculated for the period beginning July 1, 2010. The sampling information collected shall consist of a list of brands of CEDs and the weight of CEDs that are identified for each brand. The Commission's sampling shall be conducted in accordance with a procedure established by the Commission and may be conducted by a third-party organization, including a recycler. The Commission may, at its discretion, be present at the sampling and may audit the methodology and the results of the third-party organization. The costs associated with the sampling shall be considered one of the Commission's costs of doing business; and

(B) Determine the total weight of CEDs, including orphan devices, collected by the Commission during the previous 12 months. The total weight determination to be completed by March 15, 2011, shall be calculated for the period beginning July 1, 2010.

(9) Receive fees from manufacturers or their agents for the sole purpose of fulfilling its responsibilities under this Act.

(10) Organize and coordinate public outreach in association with the primary education responsibility charged to retailers, and any secondary education plan established by manufacturers, recyclers, and the State.

(11) Beginning in 2011, convene on an annual or biannual basis an Electronic Product Life-cycle and Recycling E-Scrap Assembly, composed of manufacturers and retailers of CEDs, participants in outreach, collection, processing and disposal activities of the Commission, including persons who have signed up for regular communication, and members of the General Assembly and local public bodies to review and prepare recommendations on electronic product life-cycle goals and outcomes of the Commission. The Assembly shall conduct separate reviews of and make recommendations on the outreach and collection processes, and the recycling and life-cycle management processes, and shall be addressed by a nationally or internationally recognized leader in electronic product or environmental life-cycle management, with comments on such State of Electronic Product Life-cycles in Illinois by the public officials and others who are directors of the Commission.

(12) Prepare a business plan every 3 years that establishes collection and recycling goals for each manufacturer based on current return share data and the best available estimates of projected collection and recycling activity.

(13) Identify any necessary State actions to expand the collection opportunities to achieve the goals outlined in item (12) of this subsection.

(14) Report to the Governor and the General Assembly at least annually on the implementation of the system during the previous program year. The report will also be posted on the Commission's website. The report must include:

(A) A list of all parties participating in the system whom the Commission has designated as approved to receive payments, the amount of payments it has made to those parties, and the purpose of those payments.

(B) The total number and weight of CEDs collected in the State the previous year as reported to the Commission.

(C) Progress toward achieving the overall annual total recovery and recycling goals described in the business plan.

(D) The total amount of fees collected.

(E) A summary of funds expended by category:

(i) Education

(ii) Administration

(iii) Collection

(iv) Transportation

(v) Recycling

(vi) Disposal

(vii) Other

(F) Any surplus funds carried forward.

(G) A complete listing of all collection sites and the amount of material collected at each site.

(H) An evaluation of the effectiveness of the education and outreach program.

(15) Be fully audited by the Auditor General of the State at the end of each program year, with that audit report submitted to the General Assembly.

(16) Maintain a website and toll-free number complete with up-to-date listings of where consumers can bring CEDs for recycling.

Section 30. Basic fee mechanism.

(a) Prior to July 1, 2009, all manufacturers shall register with the Commission and pay to the Commission the initial registration fee described in item (2) of subsection (a) of Section 25 of this Act. Thereafter, if a manufacturer has not previously filed a registration, the manufacturer shall file a registration with the Commission prior to any offer for sale for delivery in the State of the manufacturer's new CEDs. Any manufacturer to whom the Commission provides notification of a return share and return share in weight pursuant to item (7) of subsection (b) of Section 25 of this Act and who has not previously filed a registration shall file a registration with the Commission within 30 days of receiving such notification.

(b) Each manufacturer who is registered shall submit an annual renewal of the manufacturer's registration to the Commission and pay to the department the registration fee described in item (2) of subsection (a) of Section 25 of this Act by July 1 of each program year.

(c) The registration and each renewal shall include a list of all of the manufacturer's brands of CEDs and shall be effective on the second day of the succeeding month after receipt by the Commission of the registration or renewal.

(d) By July 1, 2010, a new entrant as of July 1, 2010 selling its CEDs in the State shall register with the Commission, pay to the Commission the initial registration fee described in item (2) of subsection (a) of Section 25 of this Act, and deposit with the State the deposit described in item (8)(D) of subsection (a) of Section 25 of this Act. Beginning July 1, 2010, new manufacturers of CEDs, or manufacturers of CEDs who have not previously sold their CEDs in the State, must also comply with the requirements of this subsection (d).

(e) By September 1, 2011, each manufacturer to whom the Commission provides, by January 1, 2010, a return share in weight that is greater than zero shall:

(1) Submit an additional fee to the Commission based on its return share in weight of CEDs for the program year beginning July 1, 2010. The fee shall be calculated by multiplying the manufacturer's return share in weight by the cost per pound for collection, transportation, and recycling of CEDs determined by the Commission pursuant to item (4) of subsection (b) of Section 20 of this Act;

(2) Pursuant to Section 50 of this Act, file an annual report with the Commission, including all elements of the report as described in subsection (b) of Section 50, demonstrating its collection and recycling of its return share in weight; or

(3) Each manufacturer to whom the Commission provides, by April 1, 2011, or by April 1 of any year thereafter, a return share in weight that is greater than zero shall, by July 1 of that year, comply with subparagraph (1) or (2) of this subsection (d).

Section 35. Restrictions on hazardous substances.

(a) On and after January 1, 2010, no person shall sell or offer for sale in this State, a CED if the device is prohibited from being sold or offered for sale in the European Union on or after its date of manufacture due to the concentration of one or more heavy metals in the device exceeding its maximum concentration value, as specified in the Commission of European Communities' Decision of August 18, 2005, amending Directive 2002/95/EC (European Union document 2005/618/EC), or as specified in a subsequent amendment to the Directive.

(1) This subsection (a) applies only to a CED that is manufactured on or after January 1, 2010.

(2) This subsection (a) does not apply to a CED that is sold or offered for sale in this State only for purposes of resale or offering for resale to persons outside of this State.

(3) This subsection (a) does not apply to a CED that would be prohibited from sale or being offered for sale in this State based solely on metals used to meet consumer, health, or safety requirements of Underwriters Laboratories, the federal government, or the State.

(b) In determining the concentrations of metals for compliance with subsection (a) of this Section, the Agency shall not consider any cadmium, chromium, lead, mercury, or any component containing any of those metals, which has been exempted by Directive 2002/95/EC, or by an amendment to the Directive.

(c) In adopting regulations under this Section, the Agency shall not require the manufacture or sale of an electronic device that is different than, or otherwise not prohibited by, the European Union under Directive 2002/95/EC, adopted by the European Parliament and the Council of the European Union on January 27, 2003.

(d) The Agency may not adopt any regulations under this Section that impose any requirements or conditions that are in addition to, or more stringent than, the requirements and conditions expressly authorized by this Section. In complying with this subsection (d), the Agency shall use, in addition to any other information deemed relevant by the Agency, the published decisions of the Technical Adaptation Committee and European Union member states that interpret the requirements of Directive 2002/95/EC.

Section 40. Fee reduction for manufacturers designing for environment. Manufacturers may apply for a reduced fee based on improvements to their CEDs that make the products easier to recycle, less hazardous, or both. Within one year after the effective date of this Act, the Commission, working with the Agency, shall develop a minimum level of environmental design for all CEDs being sold in the State. This minimum level of design shall be based on scores from the Electronic Products Environmental Assessment Tool, whose minimum criteria meets the standards set forth in Section 35 of this Act. Thereafter, on an annual basis, manufacturers may apply for a reduction in the per-unit fee for a CED that will take effect the following year. Manufacturers choosing the self-recycling option may apply for a permanent reduction in the annual registration fee that will take effect the following year. The application shall be based on a design and production change that will go beyond the minimum level of environmental design and significantly improve the product's recyclability or reduce the health risk posed by the materials in the unit, as judged exclusively by the Commission, in consultation with the Agency. The fee reduction shall be revoked if the Commission or the Agency determines that the design or production modification leading to the reduction has been reversed or materially altered to the detriment of recyclability or hazardousness in a future year. A fee reduction guide shall be developed by the Commission, in consultation with the Agency, within one year after the effective date of this Act.

Section 45. Self-recycling.

(a) Manufacturers may choose not to participate in the State recycling system operated by the Commission and instead operate their own program for the collection and recycling of CEDs. To be eligible for the self-recycling option, a manufacturer must not be a new entrant.

A manufacturer choosing to establish its own collection and recycling program is required to submit an application to the Commission every 3 years demonstrating its strategy to collect and recycle a total weight of its return share in weight. Manufacturers qualifying for the self-recycling option shall not have a fee assessed on CEDs or be compelled to participate in the Commission's program. A manufacturer applying for self-recycling status may apply alone or as a group in collaboration with other manufacturers.

A manufacturer's application shall include all of the following elements:

(1) Description of the systems for the collection, transporting, and processing of CEDs.

(2) Service providers for the collection, transportation, and processing of CEDs.

(3) Names of recycling companies meeting the requirements of Section 60 of this Act that are headquartered in Illinois to which the manufacturer will send its CEDs for processing (Illinois-based recycling companies are preferred provided that the manufacturer does not operate its own recycling plants elsewhere in the United States).

(4) Description of accessibility of recycling service to all citizens of the State.

(5) Descriptions of accounting and reporting systems that will be employed to track progress toward meeting its return share in weight.

(6) Timeline, including startup and implementation, with associated progress milestones with anticipated results.

(7) A public information campaign, complementary to, and designed in conjunction with, the primary retailer-driven campaign described in Section 65 of this Act, to promote the recycling of electronic products and proper end-of-life management of the products by the final users.

The Commission shall count the collection of a single CED as 2 CEDs by weight when that item is donated free of charge by a manufacturer approved by the Commission to operate a self-recycling program for reuse to the Illinois State Board of Education, or to any not-for-profit corporation recognized under Section 501(c)(3) of the Internal Revenue Code, whose principal mission is to assist low-income children or families living in Illinois. To qualify for the donation reuse credit under this Section, manufacturers must ensure the delivery of electronic equipment that: (a) is no older than 6 years old; (b) is in full working condition with all component parts and all necessary accessories; and (c) has been approved for donation by the recipient in a writing specifying the disposition of the donation.

(b) By August 1, 2011, and by August 1 of each subsequent program year, a manufacturer qualifying for the self-recycling option shall file an annual report with the Commission including the following:

(1) Total weight of CEDs collected and recycled the previous program year;

(2) The results of an auditable, statistically significant sampling of CEDs collected by the manufacturer or group of manufacturers during the previous program year. The sampling information reported shall consist of a list of brands of CEDs and the weight of CEDs that are identified for each brand;

(3) The total weight of CEDs, including orphan devices, collected by the manufacturer or group of manufacturers during the previous program year and documentation verifying collection and recycling of such devices;

(4) Total weight of eligible equipment donated for reuse to eligible organizations; and

(5) An evaluation of the existing infrastructure to fulfill the manufacturer's collection and recycling responsibilities.

Section 50. Retailer responsibilities. Retailers shall be the primary source of information about end-of-life options to electronics consumers. As such, retailers shall be charged with:

(1) posting any educational materials provided by the Commission in publicly accessible areas of their stores;

(2) posting any educational materials provided by the Commission on the primary Web page describing products for sale either in stores or via the Internet; and

(3) training all direct sales employees, whether at stores or available by telephone or Internet, to answer consumer questions about end-of-life options.

If a manufacturer engages in any retail sales of its own products, whether through the Internet, catalogs, or other means, the manufacturer is responsible for fulfilling the retailer responsibilities as defined in this Section.

The Commission shall on a periodic basis perform unannounced audits on retailer locations, Websites, or both to ensure that all information provided by the Commission has been posted according to the requirements of this Section.

Section 60. Program operational standards. All recyclers and brokers participating in the Commission's plan, or any manufacturer qualifying for self-recycling as described in Section 45 of this Act, must ensure that collection, refurbishment, and recycling efforts are conducted in a manner that is in compliance with all applicable federal, State, and local laws, regulations, and ordinances, and must ensure that CEDs are not exported for disposal in a manner that poses a risk to the public health or the environment. Specifically, recyclers and brokers shall:

(1) Be certified by either the International Association of Electronics Recyclers or the Institute of Scrap Recycling Industries.

(2) Guarantee that all data stored on CEDs designated for reuse under Section 45 of this Act, or for export under this Section, have been wiped following protocols defined in DOD 5220.22-M. Furthermore, guarantee that any data on CEDs intended for recycling will either be rendered unrecoverable by the recycling process or have been wiped following protocols defined in DOD 5220.22-M prior to the recycling process. The Commission shall review these protocols on an annual basis and adjust them if necessary.

(3) Consistent with the guidelines of the U.S. Environmental Protection Agency Plug-in Partner campaign, ensure compliance with any applicable requirements of the United States, as well as applicable requirements of importing and transit countries. Recyclers must be aware of the Basel Convention, to which the United States has signed but has not ratified. Nonetheless, recyclers, downstream recyclers, and brokers must be knowledgeable of the Basel Convention requirements that could affect them, as implemented by the laws of importing and transit countries. In addition, the importing and transit countries may have other laws and regulations that could affect United States exporters and their transactions. Until such time as the United States becomes a party to the Basel Convention, no country that is a party to the Basel Convention but not a member of the Organization for Economic Cooperation and Development may legally accept hazardous waste (and thus CEDs because of the Basel Convention's definition of hazardous waste) exported from the United States absent a bilateral agreement between the governments under Article 11 of the Basel Convention.

(4) Prohibit CEDs to be sent to prisons for recycling either directly or through intermediaries.

(5) Possess and maintain a documented Environmental Health and Safety Management System and ensure that current operations comply with the current Institute for Scrap Recycling Industries, Inc. electronics recycling operating practices policy manual. The Commission shall review this manual on an annual basis for adequacy, and shall perform announced or unannounced audits at its discretion.

(6) Commit to ensuring that the entire recycling chain, including downstream recyclers, brokers, and recovery operations such as smelters, are meeting all applicable environmental and health regulations. In addition, every effort shall be made to make use of only those facilities (e.g. smelters) that provide the most efficient and least polluting recovery services available globally.

(7) Agree to provide visible tracking of CEDs throughout the product recycling chain. The tracking information should show the final disposition of all hazardous waste materials. If there is a concern about trade secrets, an independent auditor acceptable to parties concerned may be used to verify compliance.

Section 65. State government procurement. On and after January 1, 2010, all units of State government shall fulfill at least 95% of the unit of government's need for CEDs by purchasing only those CEDs registered with the U.S. EPA's Electronic Product Environmental Assessment Tool (EPEAT), unless there is no registered EPEAT product matching the need.

Section 70. Relation to federal law. This Act is intended to govern all aspects of the collection and recycling of CEDs as those terms are defined in this Act. Upon the implementation of a national program acceptable to the General Assembly to collect, recycle, or both, CEDs, the provisions of this Act shall sunset within the time frame determined by federal law.

Section 900. The Environmental Protection Act is amended by adding Section 22.54 as follows:

(415 ILCS 5/22.54 new)

Sec. 22.54. E-scrap. Three years after the effective date of the Electronic Scrap Recycling Act, it is illegal for any person to dispose of any CED into a landfill, or by incineration, in this State. That 3-year period may be modified by the Director of the Agency.

Section 999. Effective date. This Act takes effect upon becoming law. Sections 1, 20, and 999 apply and are operative beginning on the effective date. All other Sections apply and are operative beginning January 1, 2009.