HOUSE OF REPRESENTATIVES

H.B. NO.

516

THIRTY-FIRST LEGISLATURE, 2021

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to sustainable electronics management.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. The legislature finds that use of electronic devices has grown substantially over the past two decades, and according to the United States Environmental Protection Agency, Americans have generated approximately three million tons of waste in consumer electronics goods per year during the last decade.

The legislature finds that while recycling of electronic devices prevents valuable materials from going into the waste stream, preventing waste in the first place is preferable to any waste management option. Donating used, but still functioning electronic devices for reuse extends the lives of valuable products and keeps them out of the waste stream for a longer duration of time. Donating used electronic devices also allows the recipients, such as schools, nonprofit organizations, and lower-income families to obtain equipment that they otherwise cannot afford.

The purpose of this Act is to promote electronics stewardship and reduce electronic waste in the State by requiring all persons who receive state financial assistance to donate unnecessary but functioning electronic devices to nonprofit organizations that will refurbish and distribute them to eligible persons in this State.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

ELECTRONIC Device and television DONATION ACT

   -1 Short title. This chapter shall be known as the "Electronic Hardware Donation Act".

   -2 Definitions. As used in this chapter, unless a different meaning clearly appears from the context:

"Charitable, religious, or nonprofit organization" means any organization which was organized and is operating in the State for charitable or religious purposes or to promote social welfare, which is exempt from income taxation under chapter 235.

"Covered electronic device" has the same meaning as defined in section 339D-1. The term includes enterprise information technology hardware, including data storage devices, network equipment, servers, and server racks.

"Covered entity" means a person receiving state funds and state financial assistance; provided that any person who is required to reuse the person's personal properties as excess or surplus federal personal property under applicable federal law and executive orders shall be excluded. State financial assistance includes grants, purchase-of-service contracts, or any other arrangement by which the State provides or otherwise makes available assistance in the form of funds to the person for the purpose of rendering services to the public; provided that the term shall not include funds obtained based on procurement contracts, state insurance or guaranty contracts, licenses, tax credits, or loan guarantees to private businesses of general concern that do not render services on behalf of the State.

"Covered refurbisher" means an organization that:

(1) Is exempt from taxation under section 501(c)(3) of the United States Internal Revenue Code;

(2) Is registered with the department of commerce and commercial affairs to conduct business in this State;

(3) Maintains a physical place of operation in this State to receive and distribute excess electronic devices;

(4) Has the ability to repair, upgrade, and refurbish excess electronic devices for use and distribute them to eligible recipients under this chapter;

(5) Is registered with the department as a covered refurbisher under this chapter; and

(6) Satisfies other criteria to operate as a covered refurbisher under this chapter, as determined by the department.

"Covered television" has the same meaning as defined in section 339D-1.

"Department" means the department of accounting and general services.

"Excess electronic device" means any covered electronic device or covered television that is:

(1) Owned and controlled by a covered entity;

(2) No longer necessary for the operations of the covered entity, as determined by the covered entity; and

(3) Properly functioning or may be repaired, upgraded, or refurbished for use by an eligible recipient, as determined by the covered entity.

"Government entity" means any department, unit, or agency, of the federal, state, or county governments.

"Lease" means any transfer of the right to possession and use of goods for a term in return for consideration.

"Person" means any individual, business, partnership, limited liability company, corporation, nonprofit organization, association, government entity, public benefit corporation, or public authority.

"Refurbished device" means an excess electronic device that has been refurbished by a covered refurbisher for the purpose of distribution to an eligible recipient.

"Sell" or "sale" means any transfer of title to goods in return for consideration.

   -3 Covered entity responsibility. (a) No later than January 1, 2022, and at minimum, each year thereafter, a covered entity shall:

(1) Identify any excess electronic device; and

(2) Transfer, as a charitable contribution, the title to and possession of the excess electronic device to a covered refurbisher at no cost to the covered refurbisher.

The covered entity shall provide its name and contact information to the covered refurbisher upon the transfer of title and possession under this paragraph.

(b) A covered entity shall, prior to the transfer of an excess electronic device under this section, remove data from the device according to the rules adopted by the department under this chapter. To the maximum extent practicable, the covered entity shall remove data using a means that does not remove, disable, destroy, or otherwise render unusable the device.

(c) A covered entity may, prior to the transfer of an excess electronic device under this section, request a covered refurbisher to examine a covered electronic device or covered television that is not functioning properly and determine if it may be repaired, updated, or refurbished for use. If the covered refurbisher determines that the device or television cannot be repaired, updated, or refurbished for use, the covered entity shall recycle it in compliance with applicable law.

(d) No later than February 1, 2023, and each year thereafter, a covered entity shall report to the department, for each excess electronic device it transferred to a covered refurbisher under this section during the previous year:

(1) The type of the device;

(2) The amount of charitable contribution the covered entity claimed for the device;

(3) The name of the covered refurbisher who received the device; and

(4) Any other information the department deems appropriate under this chapter.

   -4 Covered refurbisher responsibility. (a) A covered refurbisher shall, upon receipt of title to and possession of an excess electronic device from a covered entity under this chapter:

(1) Repair, upgrade, and refurbish the excess electronic device for use, and transfer title to and possession of the refurbished device to an eligible recipient at a price of $50 for each refurbished device or the actual cost incurred by the covered refurbisher to refurbish the device, whichever is lower; or

(2) Recycle the excess electronic device in compliance with applicable law if it cannot be repaired, upgraded, or refurbished for use.

(b) A nonprofit refurbisher shall not be liable for electronic data or other information remaining on an excess electronic device that is contributed from a covered entity under this chapter.

(c) A covered refurbisher shall, upon request from a covered entity, examine a covered electronic device or covered television and determine if it is functioning properly or may be repaired, updated, or refurbished for use. If the covered refurbisher determines that the device or television cannot be repaired, updated, or refurbished for use, the covered entity shall recycle it in compliance with applicable law.

(d) A covered refurbisher shall provide notice of refurbished devices available for distribution to eligible recipients by practicable means, such as newspapers, community announcements, and the internet.

(e) No later than February 1, 2023, and each year thereafter, a covered refurbisher shall report to the department, for each excess electronic device it received under this chapter during the previous year:

(1) The name and contact information of the donating covered entity;

(2) The type of the device; and

(3) Any other information the department deems appropriate under this chapter.

(f) No covered refurbisher shall sell or lease a covered electronic device or covered television it receives from a covered entity under this section except for sales of a refurbished device to an eligible recipient under subsection (a)(1).

   -5 Eligible recipients. (a) A person is eligible to receive title to and possession of a refurbished device under this chapter; provided that the person is:

(1) A charitable, religious, or nonprofit organization;

(2) An individual who is:

(A) A resident of this State; and

(B) Determined to be in need in accordance with rules adopted by the department under this chapter; or

(3) A covered entity that is a government entity.

(b) No person who received title to and possession of a refurbished device under this chapter shall sell or lease the device.

   -6 Department responsibility. (a) Beginning January 1, 2022, the department shall maintain and update a website with current information on covered refurbishers available in the State.

(b) No later than April 1, 2023, and annually each year thereafter, the department shall compile the information submitted by covered refurbishers of the excess electronic devices that were received and distributed during the previous year, and submit a report to the legislature.

   -7 Regulatory authority. The department shall establish rules pursuant to chapter 91 to implement the purposes of this chapter.

   -8 Enforcement; penalties. (a) The department may conduct inspections to determine compliance under this chapter.

(b) The attorney general may file suit in the name of the State to enjoin an activity related to the sale or lease of excess electronic devices in violation of this chapter.

(c) Any person in violation of this chapter may be assessed a penalty of up to $1,000 for the first violation and up to $2,000 for the second and each subsequent violation.

   -9 Administrative penalties; fees. (a) In addition to any other administrative or judicial remedy provided by this chapter or by rules adopted under this chapter for a violation thereof, the department may impose by order administrative penalties and is further authorized to set, charge, and collect administrative fines and to recover administrative fees and costs, including attorney's fees and costs, or to bring legal action to recover administrative fines and fees and costs, including attorney's fees and costs.

(b) Notwithstanding subsection (a), the department shall not assess any fees on the eligible recipients, covered entities, or covered refurbishers for the acts of transferring or receiving title to and possession of excess electronic devices or refurbished devices under this chapter."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Electronic Hardware; Donation; Nonprofit Organizations; Reuse

 

Description:

Requires persons who receive state funds and state financial assistance to donate unnecessary but functioning electronic devices, hardware, and televisions to nonprofit organizations that will refurbish and distribute them to eligible persons in the State. Sets reporting requirements for donating entities, nonprofit refurbishers, and the department of accounting and general services. Sets penalties for violations.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.