We recently testified on a bill in the Nebraska Legislature that would harm local businesses in the name of recycling. As of this writing, the bill is stalled in committee.
LIBA is adamantly opposed to the Nebraska’s adoption of the Electronics Extended Producer Responsibility and Job Creation Act. The act has the potential to impose huge costs on Nebraska businesses including many electronics retailers.
The Act imposes costs on what it deems “manufactures” of electronics. However, its definition of “manufacturer” will include many smaller local businesses who are not your traditional idea of manufacturers. Under the definition of “manufacturer” found in §(3)(11)(e) of this act any person who “imports” more than 1,000 units of electronic equipment for sale in Nebraska is subject to the requirements of this act.
Under this definition, local retailers such as Schaefer’s electronics would be considered a manufacturer. Schaefer’s store sells appliances such as refrigerators, stoves, and washing machines as well as electronics covered under this act such as Televisions, DVD and Blu Ray players and audio equipment. Schaefer’s employs more than 70 people and sells well over 1,000 units a year which it obtains from out of state distributors.
Not only are the subject to this act but they are treated the same as giant manufacturers such as Dell or HP. The following requirements would be in place if the bill passes:
• Accept a minimum amount of electronics for recycling each year. Statute sets this amount and if the company does not reach it they must pay a penalty
• Provide a public education program about recycling electronics including a web site, toll free phone number, and public service announcements
• Pay a registration fee to the State of Nebraska of up to $5,000
• Pay a reporting Fee to the state of Nebraska of $2,750 every year
• Keep detailed records which include
o Sales of electronics by weight
o Quantity by weight of electronics collected
o Electronics received for recycling from Nebraska consumers and from out of state consumers
That is not to mention the actual cost of recycling the product which they would be statutorily prohibited from charging to the consumer.
These high costs will force local retailers to alter the way they do business to cut employees or strictly limit their sales of electronics. These high costs could encourage our local manufacturers to relocate. It could cause potential manufacturers, retailers, and employers who were considering locating in Nebraska to reconsider.
This is all to deal with a problem that the industry seems to be making great strides toward resolving on its own. Many local businesses such as Schaefer’s, Schrock Innovations and Level Seven Computers already recycle electronics of any brand brought in by customers. On the national level large manufacturers have partnered with brick and mortar stores such as Staples and the Goodwill to accept any electronics for recycling. It is true that there may be situations, such as in western Nebraska, where there is no partner store. To provide for this eventuality of these manufacturers have mail back recycling programs which allow consumers to mail their used electronics to the manufacturer for recycling at no cost. In fact Apple will even send consumers an Apple gift card for Apple devices returned.
The Electronics Extended Producer Responsibility and Job Creation Act aspire to high ideals but in the end it worse than falls short.
LIBA studies and promotes these types of issues that are important to businesses and our community. If you have an interest in joining LIBA, please call me at 466-3419. LIBA membership is not restricted to just businesses. We also have “individual” memberships for those who want to help influence our local government decisions.
by Coby Mach, President & CEO
Lincoln Independent Business Association
402-466-3419