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Electronic Waste Recycling Laws Challenge the Leasing Industry

By Beth Stern Fleming, David J. Parsells and Richard J. Pomeroy
May 02, 2005

An increasing number of state legislatures are deciding that there is a need to recycle computer components and other electronic waste, also known as “e-waste,” and thus are proposing diverse laws intended to encourage or require such recycling. Equally diverse, to the point of creating conflicts and confusion, are the ways in which the various state legislatures propose to raise the funds to pay for such programs. Two states, California and Maine, have enacted such legislation and, at press time, 14 states have proposed such legislation. On Jan. 1, 2005, California's law was the first to go into effect. This article describes the Equipment Leasing Association's policy on legislation requiring advanced recycling fees. The article reviews California's new e-waste law and highlights some of the concerns to the leasing industry with regard to California's law.

Possible Solution to Disposal of Electronic Equipment Containing Lead and Mercury; Definite Headache for Leasing Industry

California has attempted to address the issue of disposal of consumer electronics containing significant amounts of hazardous substances with the passage of the Electronic Waste Recycling Act (“the Act”). The most significant requirement of the Act for equipment leasing companies is the establishment of a system for paying for the collection and recycling of electronic wastes. In addition, the Act also has a number of other components including: 1) a prohibition on the sale of electronic devices that do not conform to European Union standards due to heavy metal content (not effective before 2007); 2) a prohibition on the sale of electronic devices that do not conform to the Act's labeling requirements; 3) distribution of recovery and recycling payments to qualified entities covering the cost of electronic waste collection and recycling; 4) a directive to establish environmentally preferred purchasing criteria for state agency purchases of certain electronic equipment; 5) the requirement that manufacturers make available to consumers instructions on how and where to recycle their products; and 6) provision for civil liability for violation of certain provisions of the Act.

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