A BILL TO BE ENTITLED
AN ACT to establish THE NORTH CAROLINA PRODUCER RESPONSIBILITY PROGRAM FOR the recycling of discarded computer equipment.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 9 of Chapter 130A of the General Statutes is amended by adding a new Part to read:
"Part 2E."North Carolina Computer Equipment Responsibility Program.
"§ 130A-309.90.  Findings.
The General Assembly makes the following findings:
(1)	The computer equipment waste stream is growing rapidly in volume and complexity and can introduce toxic materials into solid waste landfills.
(2)	It is in the best interests of North Carolina's citizens to have convenient, simple, and free access to recycling services for their discarded computer equipment.
(3)	Collection programs operated by local government and nonprofit agencies are an efficient way to divert discarded computer equipment from disposal and to provide recycling services to all North Carolinians across the State.
(4)	The development of local and nonprofit collection programs is hindered by the high costs of recycling and transporting discarded computer equipment.
(5)	No other system currently exists, either provided by electronics  manufacturers, retailers, or others, to adequately serve all North Carolinians and to divert large quantities of discarded computer equipment from disposal.
(6)	Manufacturer responsibility is an effective way to ensure that manufacturers of computer equipment take part in a solution to the electronic waste problem.
(7)	The recycling of discarded computer equipment recovers valuable materials for reuse and will create jobs and expand the tax base in North Carolina.
"§ 130A‑309.91.  Definitions.
As used in this section, the following definitions apply:
(1)	Computer equipment. – Any desktop central processing unit, any laptop computer, the monitor or video display unit for a computer system, the keyboard, mice, and any other peripheral equipment, and printing devices such as printers, scanners, combination print‑scanner‑fax machines, and other devices designed to produce hard paper copies from a computer. Computer equipment does not include an automobile, a household appliance, a large piece of commercial or industrial equipment, such as commercial medical equipment, that contains a cathode ray tube, a cathode ray tube device, a flat panel display or similar video display device that is contained within, and is not separate from, the larger piece of equipment, or other medical devices as that term is defined under the federal Food, Drug, and Cosmetic Act.
(2)	Discarded computer equipment. – Computer equipment that has reached the end of its useful life and is ready to be recycled.
(3)	Discarded computer equipment collectors. – A municipal or county government, nonprofit agency, or retailer that accepts computer equipment from the public.
(4)	Certified computer equipment recycling facility. – A business that processes covered electronic devices for reuse and recycling that meets a minimum set of operational and material handling standards determined by the Department.
(5)	Manufacturer. – A person who manufactures computer equipment sold under its own brand or label; sells under its own brand or label computer equipment produced by other suppliers; imports into the United States computer equipment that was manufactured by a person without a presence in the United States; or owns a brand that it licenses to another person for use on computer equipment.
(6)	Orphan discarded computer equipment. – Any computer equipment for which a manufacturer cannot be identified or for which the manufacturer is no longer in business and has no successor in interest.
(7)	Retailer. – A person who sells computer equipment in the State to a consumer. Retailer includes a manufacturer of computer equipment that sells directly to a consumer through any means, including transactions conducted through sales outlets, catalogs, or the Internet, or any similar electronic means, but not including wholesale transactions with a distributor or other retailer.
"§ 130A‑309.92. Responsibility for recycling discarded computer equipment.
In addition to the specific requirements of this Part, computer equipment collectors, certified computer equipment recycling facilities, manufacturers, and the State share responsibility for the recycling of discarded computer equipment and the education of consumers in North Carolina on recycling opportunities for discarded computer equipment."§ 130A‑309.93.  Requirements for manufacturers.
(a)	Registration and Fee Required. – Each manufacturer of computer equipment sold in North Carolina shall register with the Department and shall pay an initial registration fee of ten thousand dollars ($10,000) to the Department and an annual renewal registration fee of five thousand dollars ($5,000). The proceeds of these fees shall be credited to the Computer Equipment Management Account.
(b)	Manufacturer Label Required. – A manufacturer shall not offer for sale in this State computer equipment unless a visible, permanent label clearly identifying the manufacturer of that device is affixed to it.
(c)	Recycling Plan; Duty to Pay Cost of Recycling. – Each manufacturer of computer equipment shall do all of the following:
(1)	Develop and submit to the Department a plan for approval by the Department for the recycling or reuse of computer equipment produced by the manufacturer and generated as discarded computer equipment by households in North Carolina. This plan shall be based on the manufacturer's taking responsibility for its products upon receipt at a certified computer equipment recycling facility and shall include mechanisms by which a manufacturer of computer equipment shall implement and finance the implementation of this plan. This plan shall identify a specific arrangement for working with each certified computer equipment recycling facility, including the prompt payment of quarterly invoices from certified computer equipment recycling facilities. Any plan that excludes any certified computer equipment recycling facility in the State shall not be approved by the Department.
(2)	Include in its plan under subdivision (1) of this subsection, at a minimum, all of the following:
a.	Details about meeting all labeling requirements.
b.	Details for implementing and financing the handling of discarded computer equipment originally produced by the manufacturer and orphan discarded computer equipment generated by households in this State and received by certified computer equipment recyclers in this State. The plan shall show how all costs of handling, transporting, and recycling of discarded computer equipment will be paid.
c.	A mechanism by which the manufacturer will work with each certified computer equipment recycling facility, including how quarterly invoices will be received from the facility and paid by the manufacturer.
d.	A description of the performance measures that will be used by the manufacturer to report recovery and recycling rates for discarded computer equipment.
(3)	Upon approval of the plan under subdivision (1) of this subsection by the Department, begin immediate implementation of its plan.
(4)	Following submission and approval of the original plan, revise the plan at any time as the manufacturer considers appropriate in response to changing circumstances or needs, but only if these revisions conform to the provisions of this Part and are submitted to the Department in a timely manner.
(5)	Pay those reasonable costs of operating a certified computer equipment recycling facility that are attributable to the handling of discarded computer equipment generated as waste by households in this State, the costs of transporting the discarded computer equipment from the computer equipment collector to a certified computer equipment recycling facility, and the actual costs of recycling the discarded computer equipment. A manufacturer is responsible for all costs associated with the development and implementation of its plan under this subsection. If the costs of implementing the plan are passed on to consumers, the costs shall be imposed at the time of purchase and shall be in the form of a fee imposed at the end of the life of the computer equipment. 
(6)	Pay each certified computer equipment recycling facility for the manufacturer's pro rata share of orphan discarded computer equipment waste from the previous calendar year, calculated under G.S. 130A‑309.97.
(7)	In lieu of the requirements under subdivisions (1) through (5) of this subsection, participate in a collective recovery plan with other manufacturers so long as the collective recovery plan shall meet the same standards and requirements of the plan submitted by an individual manufacturer under subdivisions (1) through (5) of this subsection.
(8)	By January 31 of each year, submit a report to the Department that includes all of the following:
a.	A description of the collection and recycling services utilized to recover the manufacturer's products.
b.	Substantiated estimates, on an annual basis for the preceding calendar year, of the quantities of computer equipment marketed to retail consumers in this State and collected for recovery in this State.
c.	The capture rate for computer equipment based on sales in this State and any systems implemented by the manufacturer to ensure the minimum environmentally sound management of its products.
(9)	Keep any information submitted pursuant to this subsection confidential as provided by existing State law. 
(10)	At the option of the manufacturer, provide information to the Department, for consideration by the Department under G.S. 130A‑309.97, on any certified computer equipment recycling facility whose cost charges are unreasonable. 
"§ 130A‑309.94.  Prohibited sales of computer equipment.
(a)	A manufacturer not in compliance with the requirements of G.S. 130A‑309.93 shall not offer computer equipment for sale in this State and shall provide the necessary support to retailers to ensure the manufacturer's computer equipment is not offered for sale in this State.
(b)	A retailer shall not offer for sale in this State computer equipment of a manufacturer that is not in compliance with the requirements of G.S. 130A‑309.93.
"§ 130A‑309.95. Certification of computer equipment recycling facilities.
(a)	No business shall accept for recycling discarded computer equipment unless it has obtained from the Department certification as a computer equipment recycling facility. Only a computer equipment recycling facility that is certified by the Department is eligible to be included in a manufacturer producer responsibility plan and is eligible to invoice a manufacturer for the costs of recycling discarded computer equipment.
(b)	To obtain certification as a computer equipment recycling facility, a business shall apply to the Department. Subject to subsections (c) and (d) of this section, the Department shall certify a business that demonstrates to the satisfaction of the Department that the business meets all of the following minimum environmentally sound management standards:
(1)	The business complies with all federal and State requirements for the proper handling of discarded electronic equipment, including specifically cathode ray tubes.
(2)	The business does not directly export intact nonworking cathode ray tubes.
(3)	The business does not indirectly export intact nonworking cathode ray tubes by either using suppliers or subcontractors that export these cathode ray tubes.
(4)	Complies with all federal and international laws and agreements on the export of used products or materials.
(5)	The business does not use prison labor to collect, process, or market discarded computer equipment.
(6)	The business does not use subcontractors or suppliers that use prison labor to collect, process, or market discarded computer equipment.
(7)	The business actively uses recycling industry auditing and certification programs to assess ongoing business and environmental performance.
(8)	The business has, and has implemented, a written health and safety plan to protect workers in handling discarded computer equipment within the business operations.
(9)	The business has a written plan for hazardous materials identification and management.
(10)	The business has a written plan for reporting and responding to exceptional pollutant releases, including emergencies such as accidents, spills, fires, and explosions.
(11)	The business has no record of significant violations of federal or State occupational health and safety or environmental laws within the previous three years by the business or its subcontractors or suppliers.
(12)	The business uses appropriate equipment and facilities that minimize adverse exposures to workers and releases to the environment.
(13)	The business has obtained certificates of insurance to cover all aspects of the business's operations, including commercial general liability insurance or equivalent corporate guarantee for accidents and other emergencies with limits of not less than one million dollars ($1,000,000) per occurrence and not less than one million dollars ($1,000,000) in the aggregate.(14)	The business has a written plan for cost coverage and the handling of discarded electronic equipment in the event of disruptions or cessation of the business's operations.
(15)	The business has a demonstrated ability to report detailed information on incoming and outgoing materials and the management of those materials in its business operations.
(c)	Each applicant shall provide information on its business's typical cost charges for transporting and recycling of discarded computer equipment from computer equipment collectors or the methods by which it calculates such charges. Each applicant shall describe its experience and capacity to sort and manage discarded commuter equipment and its system of inventory management and cost accounting. The Department shall take the information provided by the applicant under this subsection into account when determining whether to certify the applicant as a computer equipment recycling facility.
(d)	When determining whether to certify or renew the certification of a computer equipment recycling facility, the Department shall review the cost charges of the certified computer equipment recycling facility to determine whether the charges are reasonable.
(e)	Each applicant for certification as a computer equipment recycling facility shall submit an application fee of five thousand dollars ($5,000) and shall pay an annual renewal fee of two thousand five hundred dollars ($2,500). The funds received under this section shall be credited to the Computer Equipment Management Account. 
(f)	Any certified computer equipment recycling facility that fails to adhere to the minimum environmentally sound management standards under subsection (b) of this section shall be removed from the list of certified facilities and shall no longer be eligible to be included in a manufacturer's plan or receive payment from any manufacture for the recycling of discarded computer equipment.
"§ 130A‑309.96.  Requirements for certified computer equipment recycling facilities.
Each certified computer equipment recycling facility shall do all of the following:
(1)	Identify the manufacturer of discarded computer equipment delivered to its facility that was identified as generated by a household in this State.
(2)	Maintain an accounting and an itemized inventory of the discarded computer equipment delivered to its facility, by manufacturer, and no later than January 15 of each year provide this accounting to the Department. The accounting under this subdivision shall include a determination of the amounts of orphan discarded computer equipment. 
(3)	Work cooperatively with manufacturers to ensure implementation of a practical and feasible financing system that, at a minimum, provides that each certified computer equipment recycling facility shall invoice any manufacturer for the handling, transportation, and recycling costs for which the manufacturer is responsible under the provisions of G.S. 130A‑309.93. 
(4)	Ensure that the cost charges for recycling discarded computer equipment at its facility are reasonable.
"§ 130A‑309.97.  Requirements for the Department.
The Department shall:
(1)	No later than January 31 of each year, calculate, based on the best available information, including but not limited to data provided by manufacturers and certified computer equipment recycling facilities and data from electronic waste collection programs in other jurisdictions within the United States, and provide each manufacturer and certified computer equipment recycling facility with a listing of each manufacturer's pro rata share of the orphan discarded computer equipment from the previous calendar year.
(2)	Develop and maintain a list of certified computer equipment recycling facilities and supply this list to each registered computer equipment manufacturer registered under G.S. 130A‑309.93 for inclusion in the manufacturer's plan under G.S. 130A‑309.93.
"§ 130A‑309.98. Requirements for discarded computer equipment collectors. Each computer equipment collector that chooses to participate in the North Carolina Computer Equipment Responsibility Program under this Part shall ensure that discarded computer equipment generated from households served by the collector is delivered to a certified computer equipment recycling facility in this State. A collector may meet this requirement by:
(1)	Collecting and transporting discarded computer equipment from a local or regional solid waste transfer station or recycling facility.
(2)	Contracting with a recycling or solid waste facility to accept computer equipment directly from residents through curbside pickup, at a drop‑off center operated by the collector, or by another collection system convenient to consumers of computer equipment.
"§ 130A‑309.99. Computer Equipment Management Account.
The Computer Equipment Management Account is created as a nonreverting account within the Department. The fees deposited to the Computer Equipment Management Account as initial registration fees under G.S. 130A‑309.93 shall be applied to the costs of implementing the Program under this Part, including necessary staff positions. The fees collected and credited to the Account under G.S. 130A‑309.95 shall be used to administer the Program under this Part.
"§ 130A‑309.100.  Enforcement.
(a)	If a manufacturer fails to register with the Department or pay for the costs allocated to it, including its pro rata share of costs attributable to orphan discarded computer equipment, the Department shall seek cost recovery from the nonpaying manufacturer. Any nonpaying manufacturer is liable for the costs incurred by the Department in an amount up to three times the amount incurred as a result of such failure to comply.
(b)	The Attorney General may commence a civil action against any manufacturer to recover the costs described in this section, which are in addition to any fines and penalties imposed. 
"§ 130A‑309.101.  Disposal ban.
Discarded computer equipment shall not be disposed of in a landfill or by incineration.
"§ 130A‑309.102. Report required.
No later than April 1 of each year, the Department shall submit a report on the recycling of discarded computer equipment in the State under this Part to the Environmental Review Commission. The report must include an evaluation of the recycling rates in the State for discarded computer equipment, a discussion of compliance and enforcement related to the requirements of this Part, and any recommendations for any changes to the system of collection and recycling of electronic devices in the State under this Part."
SECTION 2.  G.S. 103A‑309.09A(b)(6) reads as rewritten:
"(6)	Include an assessment of current programs and a description of intended actions with respect to:
a.	Education with the community and through the schools.
b.	Management of special wastes.
c.	Prevention of illegal disposal and management of litter.
d.	Purchase of recycled materials and products manufactured with recycled materials.
e.	For each county and each municipality with a population in excess of 25,000, collect discarded computer equipment, as defined in G.S. 130A‑309.91."
SECTION 3.  G.S. 130A‑309.10(f) is amended by adding a new subdivision to read:
"(14)	Discarded computer equipment as provided in G.S. 130A‑309.96."
SECTION 4.  G.S. 130A‑309.10(f1) is amended by adding a new subdivision to read:
"(7)	Discarded computer equipment as provided in G.S. 130A-309.96."
SECTION 5.  G.S. 130A‑309.14 is amended by adding a new subsection to read:
"(a2)	The Department of Administration shall review and revise its bid procedures and specifications so that the bid procedures and specifications comply with all of the following requirements:
(1)	Effective July 1, 2008, all desktop computers, monitors, laptop or notebook computers, and integrated systems purchased by the State of North Carolina will meet at least the bronze standard of the federal Electronic Product Environmental Assessment Tool (EPEAT).
(2)	Effective July 1, 2011, all desktop computers, monitors, laptop or notebook computers, and integrated systems purchased by the State of North Carolina will meet at least the silver standard of the federal Electronic Product Environmental Assessment Tool (EPEAT).
(3)	Effective July 1, 2014, all desktop computers, monitors, laptop or notebook computers, and integrated systems purchased by the State of North Carolina will meet at least the gold standard of the federal Electronic Product Environmental Assessment Tool (EPEAT)."
SECTION 6.  G.S. 130A‑309.93(b) and G.S. 130A‑309.94, as enacted by Section 1 of this act, become effective January 1, 2008, and apply to sales that occur on or after that date; G.S. 130A‑309.95 and G.S. 130A‑309.96, as enacted by Section 1 of this act, become effective January 1, 2008, and apply to discarded computer equipment that is recycled at a certified computer recycling facility on or after January 1, 2009; G.S. 130A‑309.93(c), as enacted by Section 1 of this act, becomes effective December 31, 2008, except G.S. 130A‑309.93(c)(8) becomes effective January 31, 2010; G.S. 130A‑309.96(2), as enacted by Section 1 of this act, becomes effective January 31, 2010; G.S. 130A‑309.102, as enacted by Section 1 of this act, becomes effective April 1, 2010; and G.S. 130A‑309.101, as enacted by Section 1 of this act, and Sections 3 and 4 of this act become effective January 1, 2011. The remainder of this act becomes effective September 30, 2007, except as provided otherwise in G.S. 130A‑309.14(a2), as enacted by Section 5 of this act.