HB595

SECTION 1. The legislature finds that Act 151, Session Laws of Hawaii 2022 (Act 151), amended the Electronic Device Recycling and Recovery Act to make wholesale changes to the State's electronic waste recycling program. These changes included, among other things:

(1) The expansion of the program to include all electronic devices rather than just televisions;

(2) Established electronic device manufacturer recycling goals based on the weight of devices collected;

(3) Requirement for each manufacturer to establish twenty-five collection sites in the State for the collection of electronic devices; and

(4) Established registration and reporting requirements for electronic device collectors.

The legislature further finds that the expansion of the electronics waste recycling law has resulted in increased electronic collection opportunities. However, in the implementation of this updated program, manufacturers have struggled to comply with all of the requirements of Act 151. Specifically, the annual step increases in electronic recycling goals based on weight has resulted in no realistic way for manufacturers to meet their goals, even with increased device collection programs, because weights for electronic devices have collectively become lighter over time. In addition, the increased penalties in Act 151 for failing to meet the electronic device collection requirements is three times higher than any other state. This has resulted in significant cost increases, which ultimately may be passed onto customers.

Accordingly, the purpose of this Act is to:

(1) Amend the electronic manufacturer recycling goals under the Electronic Device Recycling and Recovery Act so that the recycling goals are based upon the manufacturer's overall market share in the State;

(2) Amend the per pound penalty for any shortfall in meeting manufacturer recycling goals to a tiered penalty based upon the amount of the shortfall;

(3) Amend the definition of covered electronic devices to clarify the scope of covered devices; and

(4) Make other housekeeping amendments.

SECTION 2. Section 339D-1, Hawaii Revised Statutes, is amended as follows:

1. By adding a new definition to be appropriately inserted and to read:

""Market share" means the calculation of an electronic device manufacturer's prior year's sales of televisions divided by all the manufacturers' prior year's sales for all electronic devices, as determined by the department, which may be expressed as a percentage, fraction, or decimal fraction."

2. By amending the definition of "electronic device" to read as follows:

""Electronic device":

(1) Means:

(A) A computer, computer printer, computer monitor, or portable computer with a screen size greater than four inches measured diagonally; and

(B) Any device that is capable of receiving broadcast, cable, or satellite signals and displaying television or video programing, including any direct view or projection television with a viewable screen of nine inches or larger with display technology based on cathode ray tube, plasma, liquid crystal, digital light processing, liquid crystal on silicon, silicon crystal reflective display, light emitting diode, or similar technology; and

(2) Shall not include:

(A) An electronic device that is a part of a motor vehicle or any component part of a motor vehicle assembled by or for a motor vehicle manufacturer or franchised dealer, including replacement parts for use in a motor vehicle;

(B) An electronic device that is functionally or physically required as a part of a larger piece of equipment designed and intended for use in an industrial, commercial, or medical setting, including diagnostic, monitoring, or control equipment;

(C) An electronic device that is contained within a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier, or air purifier;

(D) A telephone of any type including a mobile telephone; [or]

(E) A global positioning system[.]; or

(F) Floor-standing printers, or printers with optional floor stands."

SECTION 3. Section 339D-8, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) If a manufacturer fails to meet its recycling goals pursuant to section 339D-23.1(c), the department shall impose a penalty of [~~$1.50~~] the following rates per pound for each pound not recycled:

(1) If the manufacturer achieves less than fifty per cent of its recycling goal, the penalty will be $1.50 per pound;

(2) If the manufacturer achieves more than fifty per cent but less than seventy-five per cent of its recycling goal, the penalty will be $1.00 per pound;

(3) If the manufacturer achieves more than seventy-five per cent but less than ninety per cent of its recycling goal, the penalty will be $0.75 per pound; and

(4) If the manufacturer achieves more than ninety per cent but less than one hundred per cent of its recycling goal, the penalty will be $0.50 per pound."

SECTION 4. Section 339D-23, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) By [~~September 1, 2022,~~] October 23, 2023, and annually thereafter, each manufacturer shall submit a plan to the department to establish, conduct, and manage a program for the recycling of electronic devices sold in the State, which shall be subject to the following conditions:

(1) The plan shall not permit the charging of a fee at the point of collection if the electronic device is brought by the electronic device owner to a central location for recycling; provided that the plan may include a reasonable transportation fee if the manufacturer or manufacturer's agent removes the electronic device from the owner's premises at the owner's request and if the removal is not in conjunction with delivery of a new electronic device to the owner;

(2) The plan shall include a description of the methods for the convenient collection of electronic devices at no cost to the owner, except as provided in paragraph (1). The recycling plan shall provide for collection services of electronic devices in each county and zip code tabulation area, as defined by the United States Census Bureau, with a population greater than twenty-five thousand. The recycling plan shall include at least one of the following:

(A) Staffed drop-off sites;

(B) Alternative collection services, including on-site pick-up services; or

(3) The plan shall provide collection services at a minimum of once per month;

(4) The plan shall not contain only a mail-back option;

(5) The plan shall specify the use of only collectors registered with the State pursuant to section 339D-28; and

(6) The plan shall specify the use of recyclers that have achieved and maintained third-party accredited certification from the Responsible Recycling Standard for Electronics Recyclers (R2), Standard for Responsible Recycling and Reuse of Electronic Equipment (e-Stewards), or an internationally accredited third-party environmental management standard for the safe and responsible handling of electronic devices."

SECTION 5. Section 339D-23.1, Hawaii Revised Statutes, is amended to read as follows:

"[[]§339D-23.1[]] Manufacturer recycling goals. [(a) The department shall use the best available information to establish the weight of all electronic devices sold in the State, including the reports submitted pursuant to section 339D-23.3, state and national sales data, and other reliable commercially available, supplemental sources of information.

~~(b) No later than October 1, 2022, and annually thereafter, the department shall notify each manufacturer of its recycling obligation pursuant to subsection (c).~~] (a) The department shall use state-specific electronic device sales data or national covered electronic device sales data available from commercially available analytical sources to determine each electronic device manufacturer's recycling responsibilities for covered electronic devices based upon the electronic device manufacture's market share by weight of new covered electronics sold in Hawaii. If the department uses national sales data, the department shall extrapolate data for the State from national data on the basis of the State's share of the national population. The department shall seek to establish the most accurate determination of each manufacturer's market share and may rely on supplemental sources of information to achieve this goal.

(b) No later than August 1, 2023, and annually thereafter, the department shall notify each electronic device manufacturer of its recycling obligation. Each electronic device manufacturer's obligation shall be based on that electronic device manufacturer's market share by weight from the previous year multiplied by the total pounds of covered electronic device recycled by all electronic device manufacturers during the previous program year.

(1) Beginning January 1, 2023, the equivalent of fifty per cent, by weight, of the manufacturer's electronic devices sold in the State two years prior, unless amended by rule pursuant to chapter 91;

(2) Beginning January 1, 2024, the equivalent of sixty per cent, by weight, of the manufacturer's electronic devices sold in the State two years prior, unless amended by rule pursuant to chapter 91; and

(3) Beginning January 1, 2025, the equivalent of seventy per cent, by weight, of the manufacturer's electronic devices sold in the State two years prior, unless amended by rule pursuant to chapter 91.

(d) A manufacturer may collect any electronic device to meet its recycling goal.

(e) A manufacturer may consider reused electronic devices toward achieving its recycling goals."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	595
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII