HB3598 94TH GENERAL ASSEMBLY

LRB094 09383 RSP 39629 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3598

Introduced 2/24/2005, by Rep. John J. Millner

SYNOPSIS AS INTRODUCED:

415 ILCS 5/ Tit. XVIII heading new
415 ILCS 5/59 new
415 ILCS 5/59.5 new
415 ILCS 5/59.10 new
415 ILCS 5/59.15 new
415 ILCS 5/59.20 new
415 ILCS 5/59.25 new
415 ILCS 5/59.30 new
415 ILCS 5/59.35 new
415 ILCS 5/59.40 new
415 ILCS 5/59.45 new
415 ILCS 5/59.50 new
415 ILCS 5/59.55 new
415 ILCS 5/59.60 new
415 ILCS 5/59.65 new
415 ILCS 5/59.70 new
30 ILCS 105/5.640 new

Amends the Environmental Protection Act. Prohibits certain methods of disposal for video display devices. Imposes fees on each person engaged in the business of selling new video display devices. Requires the seller to pay the fee to the Department of Revenue for deposit into the Video Display Device Recovery and Recycling Fund. Sets forth the purposes for which the moneys in the Fund may be used. Requires retailers to make quarter-annual tax returns to the Department of Revenue concerning the video display device fee. Sets forth procedures for administrative proceedings and hearings by the Department of Revenue concerning the collection of the fee and for judicial review of those decisions. Requires the Pollution Control Board to establish rules regarding the disposal of video display devices. Amends the State Finance Act to create the Video Display Device Recovery and Recycling Fund. Effective on January 1, 2006.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning environmental protection.

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

Section 5. The Environmental Protection Act is amended by adding Title XVIII as follows:

(415 ILCS 5/ Tit. XVIII heading new)

TITLE XVIII. VIDEO DISPLAY DEVICE RECOVERY AND RECYCLING

(415 ILCS 5/59 new)

Sec. 59. Findings and intent.

(a) The General Assembly finds:

(1) That the management of disposed of or discarded video display devices is a rapidly growing waste problem;

(2) That video display devices contain toxic substances that can pose a threat to public health and welfare or the environment if released; and

(3) That the State and local governments have neither the existing infrastructure nor the funds necessary to properly manage disposed of or discarded video display devices.

(b) The intent of this Title is to ensure that disposed of or discarded video display devices are managed in a way that protects public health and welfare and the environment.

(415 ILCS 5/59.5 new)

Sec. 59.5. Definitions. As used in this Title:

"Fund" means the Video Display Device Recovery and Recycling Fund.

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

"Sale at retail" means sale at retail as defined in the Retailers' Occupation Tax Act (35 ILCS/120).

"Video display device" means an electronic video display device, including, without limitation, a cathode ray tube or flat panel screen with a screen size greater than 4 inches in size measured diagonally. "Video display device" includes, but is not limited to, televisions, computer monitors, and laptop computers with a video display. "Video display device" does not include an automobile or commercial or industrial equipment, other than a television, computer monitor, or laptop computer with a video display, that contains a video display device as one of its components (such as commercial medical equipment containing a cathode ray tube or flat panel screen).

"Video display device manufacturer" means any person that produces a video display device or, in the case of a multi-component video display device, the last person to produce or assemble the video display device. If the final production or assembly of a video display device occurs in a foreign country, "video display device manufacturer" means the importer or domestic distributor of the video display device.

(415 ILCS 5/59.10 new)

Sec. 59.10. Prohibited actions.

(a) No person may knowingly cause or allow the burning of a video display device on or after the effective date of this amendatory Act of the 94th General Assembly.

(b) No person may knowingly cause or allow the mixing of a video display device with municipal solid waste on or after January 1, 2009.

(c) No person may knowingly cause or allow the disposal of a video display device in any municipal solid waste landfill unit on or after January 1, 2009.

(415 ILCS 5/59.15 new)

Sec. 59.15. Video Display Device Recovery and Recycling Fund.

(a) There is created in the State treasury a special fund to be known as the Video Display Device Recovery and Recycling Fund. All fees collected under this Title and all penalties or punitive damages for violations of this Title must be deposited into the Fund. In addition, the Fund shall include other moneys made available from any source for deposit into the Fund.

(b) Subject to appropriation, moneys up to an amount of $200,000 per fiscal year from the Fund shall be available to the Department of Revenue for its activities relating to this Title.

(c) Subject to appropriation, moneys in excess of $200,000 per fiscal year from the Fund shall be used as follows:

(1) Except as provided in subsection (c)(2) of this Section, all moneys shall be available to the Agency for the following:

(A) The collection, recycling, or disposal video display devices;

(B) To provide financial assistance for video display device collection, recycling, and disposal projects sponsored by local government or not-for-profit organizations.

(C) For the performance of inspection, investigation, and enforcement activities at sites where video display devices have been open-dumped or otherwise disposed of in violation of this Act;

(D) To provide financial assistance to units of local governments for the performance of inspection, investigation, and enforcement activities under subsection (r) of Section 4 of this Act at sites where video display devices have been open-dumped or otherwise disposed of in violation of this Act;

(E) To undertake preventive, corrective, and removal actions at sites where video display devices have been open-dumped or otherwise disposed of in violation of this Act and to recover costs for those actions;

(F) For the purposes of consumer education about video display device recycling; and

(G) For the cost of fee collection and administration relating to video display devices, and to accomplish any other purposes authorized under this Act and implementing regulations.

(2) Until January 1, 2009, 30% of the moneys shall be available to the Department of Commerce and Economic Opportunity for the purposes of assisting in the development of markets for the reuse and recycling of video display devices.

(d) Any moneys appropriated from the Video Display Device Recovery and Recycling Fund, but not obligated, shall revert to the Fund.

(415 ILCS 5/59.20 new)

Sec. 59.20. Imposition of fee.

(a) Beginning January 1, 2006, the following fees are imposed upon each person engaged in the business of selling video display devices at retail:

(1) $6 for each new video display device sold at retail with a screen size of less than 15 inches measured diagonally;

(2) $8 for each new video display device sold at retail with a screen size equal to or greater than 15 inches but less than 35 inches measured diagonally; and

(3) $10 for each new video display device sold at retail with a screen size equal to or greater than 35 inches measured diagonally.

(b) The fee imposed under subsection (a) of this Section shall not be stated as a distinct item separate and apart from the selling price of the video display device and shall constitute a debt owed by the retailer to the State of Illinois.

(415 ILCS 5/59.25 new)

Sec. 59.25. Returns by retailer.

(a) Each person engaged in the business of selling video display devices at retail in this State shall make a return to the Department of Revenue on a quarter-annual basis, with the return for January, February, and March of a given year being due by April 30 of that year; with the return for April, May, and June of a given year being due by July 31 of that year; with the return for July, August, and September of a given year being due by October 31 of that year; and with the return for October, November, and December of a given year being due by January 31 of the following year. Each return made to the Department of Revenue must state:

(1) The name of the retailer;

(2) The address of the retailer's principal place of business, and the address of the principal place of business (if that is a different address) from which the retailer engages in the business of making retail sales of video display devices;

(3) The total number of video display devices in each category identified in subsection (a) of Section 59.20 of this Act sold at retail for the preceding calendar quarter;

(4) The amount of fees due; and

(5) Any other reasonable information that the Department of Revenue requires.

(b) Notwithstanding any other provision of this Act concerning the time within which a retailer may file his or her return, if any retailer who ceases to engage in the retail sale of video display devices, the retailer must file a final return under this Act with the Department of Revenue not more than one month after discontinuing that business.

(c) At the time when any return of any retailer is due to be filed with the Department of Revenue, the retailer shall also remit to the Department of Revenue the fee imposed under Section 59.20 of this Act for sales at retail occurring in the quarter for which the return is due.

(415 ILCS 5/59.30 new)

Sec. 59.30. Application of Retailers' Occupation Tax provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, and 11 of the Retailers' Occupation Tax Act, that are not inconsistent with this Act, shall apply, as far as practicable, to the fee imposed by subsection (a) of Section 59.20 of this Act to the same extent as if those provisions were included herein. References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean retailers of video display devices.

(415 ILCS 5/59.35 new)

Sec. 59.35. Review under Administrative Review Law. The circuit court of any county wherein a hearing is held shall have the power to review all final administrative decisions of the Department of Revenue in administering the fee imposed under subsection (a) of Section 59.20 of this Act. If, however, the administrative proceeding that is to be reviewed judicially is a claim for refund proceeding commenced under this Act and Section 2a of the State Officers and Employees Money Disposition Act, then the circuit court having jurisdiction over the action for judicial review under this Section and under the Administrative Review Law shall be the same court that entered the temporary restraining order or preliminary injunction that is provided for in that Section 2a, and that enables the claim proceeding to be processed and disposed of as a claim for refund proceeding other than as a claim for credit proceeding.

The provisions of the Administrative Review Law, and the rules adopted pursuant thereto, apply to and govern all proceedings for the judicial review of final administrative decisions of the Department of Revenue under this Title. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.

Service of summons issued in any action to review a final administrative decision upon the Director or Assistant Director of Revenue shall be service upon the Department of Revenue. The Department of Revenue must certify the record of its proceedings if the feepayer pays to it the sum of $0.75 per page of testimony taken before the Department of Revenue and $0.25 per page of all other matters contained in the record, except that these charges may be waived if the Department of Revenue is satisfied that the aggrieved party who cannot afford to pay the charges.

(415 ILCS 5/59.40 new)

Sec. 59.40. Rules; notice; place of hearing; survival of action. The Department of Revenue may adopt and enforce such reasonable rules and regulations relating to the administration and enforcement of the fee imposed by subsection (a) of Section 59.20 of this Act as may be deemed expedient.

Whenever the Department of Revenue is required to provide notice to a retailer under this Act, the notice may be personally served or given by United States mail, addressed to the retailer or feepayer concerned at his or her last known address, and proof of the mailing is sufficient for the purposes of this Title. In the case of a notice of hearing, the notice must be mailed by United States certified or registered mail not less than 7 days prior to the date fixed for the hearing.

All hearings provided by the Department of Revenue under this Title with respect to or concerning a feepayer having his or her principal place of business in this State shall be held in Cook County or in Sangamon County, whichever is nearest to the location of the feepayer's principal place of business. If the feepayer does not have his or her principal place of business in this State, the hearing shall be held in Sangamon County.

Whenever any proceeding provided by this Title has been begun by the Department of Revenue or by a person subject thereto and that person thereafter dies or becomes a person under legal disability before the proceeding has been concluded, the legal representative of the deceased person or person under legal disability must notify the Department of Revenue of the death or legal disability. The legal representative, as such, shall then be substituted by the Department of Revenue in place of and for the person. Within 20 days after notice to the legal representative of the time fixed for that purpose, the proceeding may proceed in all respects and with like effect as though the person had not died or become a person under legal disability.

(415 ILCS 5/59.45 new)

Sec. 59.45. Administrative procedures. The Illinois Administrative Procedure Act is hereby expressly adopted and applies to all administrative rules and procedures of the Department of Revenue under this Title, except that: (i) paragraph (b) of Section 4 of the Illinois Administrative Procedure Act does not apply to final orders, decisions and opinions of the Department of Revenue; (ii) subparagraph (a)(2) of Section 4 of the Illinois Administrative Procedure Act does not apply to forms established by the Department of Revenue for use under this Title; and (iii) the provisions of Section 13 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department of Revenue under this Title.

(415 ILCS 5/59.50 new)

Sec. 59.50. Penalty for violation. Any retailer who fails to make a return, or who makes a fraudulent return, or who willfully violates any rule or regulation of the Department of Revenue for the administration and enforcement of the fee imposed by subsection (a) of Section 59.20 of this Act, is guilty of a Class 4 felony.

(415 ILCS 5/59.55 new)

Sec. 59.55. Agency Report. No later than January 1, 2008, the Agency must submit a report to the General Assembly on the status of the Agency's Video Display Device Recovery and Recycling Program. This report must include a summary of the fees collected and deposited in the Video Display Device Recovery and Recycling Fund and the Agency's expenditure of moneys from the Fund, a recommendation on whether a continuation or modification of the fee imposed by subsection (a) of Section 59.20 of this Act is necessary, and information on video display device collection events. The Agency must also include a discussion of the status of any federal legislation enacted regarding the collection, recycling, or disposal of video display devices.

(415 ILCS 5/59.60 new)

Sec. 59.60. Rules.

(a) No later than January 1, 2008, the Agency, after consultation with the advisory committee established in Section 59.65 of this Act, shall propose to the Board rules governing the collection and recycling of video display devices.

(b) No later than one year after the receipt of regulations proposed by the Agency under subsection (a) of this Section, the Board must adopt, pursuant to Sections 27 and 28 of this Act, rules consistent with the provisions of this Title. The rules must, at a minimum, specify the amounts of video display devices that video display device manufacturers must collect and recycle, record keeping and reporting requirements, and penalties for violations of the rules.

(c) In adopting rules under this Section, the Board may impose different requirements for different categories of video display devices and video display device manufacturers.

(d) Nothing in this Section shall be construed as limiting the general authority of the Board to promulgate regulations under Title VII of this Act.

(415 ILCS 5/59.65 new)

Sec. 59.65. Advisory Committee.

(a) There is established a Video Display Device Recovery and Recycling Advisory Committee to provide consultation to the Agency under subsection (a) of Section 59.60 of this Act. The advisory committee shall consist of the following representatives appointed by the Governor: 2 representatives of video display device manufacturers; 2 representatives of video display device recyclers, processors, or refurbishers; 2 representatives of local government; 2 representatives of public interest or environmental organizations; one representative of video display device retailers; one representative of the waste management industry; and 2 at-large members representing the general public. The Governor must appoint representatives to the advisory committee no later than March 1, 2006.

(b) Members of the advisory committee shall serve without compensation.

(c) The advisory committee shall terminate upon the Board's adoption of rules under subsection (b) of Section 59.60 of this Act.

(415 ILCS 5/59.70 new)

Sec. 59.70. Severability. The provisions of this Title are severable under Section 1.31 of the Statute on Statutes.

Section 10. The State Finance Act is amended by adding Section 5.640 as follows:

(30 ILCS 105/5.640 new)

Sec. 5.640. The Video Display Device Recovery and Recycling Fund.

Section 99. Effective date. This Act takes effect January 1, 2006.