On May 28, 2010, Governor Paterson signed the Electronic
Equipment Recycling and Reuse Act, which requires manufacturers of
certain electronic products to accept electronic waste for
recycling or reuse beginning in April 2011. Under the law,
manufacturers of covered electronic equipment must accept for
recycling or reuse products that they manufactured. In addition,
they must accept one piece of electronic waste of any
manufacturer's brand if offered by a consumer in connection
with the purchase of the same type of product made by the
manufacturer.
Manufacturers' take-back obligations are limited to their
market share multiplied by the statewide recycling or reuse goal
for a given year, which is established by the new law. The
electronic equipment covered by the law includes computers,
portable digital music players, digital video recorders, electronic
or video game consoles, and televisions. It does not include
household appliances or telephones of any type.
Under the law, manufacturers that accept less than their required
share of waste are subject to a surcharge of US$.40 to $.50 per
pound of shortfall, and those that accept more than their share can
accumulate credits that can be sold, traded, or banked. Acceptable
take-back measures include (i) mail- or ship-back return programs;
(ii) collection events; and (iii) fixed collection locations,
including through agreements with retail stores. Manufacturers can
fulfill their obligations through collective waste acceptance
programs with other manufacturers. The law expressly preempts New
York City's 2008 e-waste law, which has been challenged by
industry groups. O'Melveny & Myers will continue to
follow the development of New York State's e-waste program.
O'Melveny & Myers LLP routinely provides advice to clients on complex transactions in which these issues may arise, including finance, mergers and acquisitions, and licensing arrangements. If you have any questions about the operation of the applicable statutory provisions or the case law interpreting these provisions, please contact any of the attorneys listed on this alert.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
