Testimony of the Retailers Association of Massachusetts

William C. Rennie, Vice President

Before the Joint Committee on Environment, Natural Resources & Agriculture
May 14, 2009

RE:  H.767, An Act to Require Producer Responsibility for Collection and Recycling of Discarded Electronic Products
H.833, An Act Relative to Producer Responsibility for Discarded Electronic Products
H.719, An Act Relative to Plastic Bag Reduction
H.726, An Act Relative to Producer Responsibility for Mercury-Added Lamps
H.798, An Act Relative to Decreasing Environmental Hazards, Toxins and Litter
H.831, An Act Relative to Mercury Added Thermostats
H.836, An Act Requiring Recycling of Lead Acid Batteries
H.3556, An Act Prohibiting the Sale, Installation and Disposal of Mercury Thermostats
S.384, An Act Relative to Establishing a Deposit and Return System for Motor Vehicle Tires in the Commonwealth
S.395, An Act Relative to the Responsible Reduction in the Use of Plastic Bags
S.405, An Act Relative to the Return of Unused Non-Latex Paint
S.425, An Act to Establish a Paint Thinner Take Back Program

The Retailers Association of Massachusetts (RAM) is a statewide trade association of over 3,100 member companies.  Our membership ranges from independent “mom and pop” retailers to larger, national retail chains.  The retail industry's contributions to the Commonwealth include over $100 billion in annual sales; $4 billion in annual sales and use taxes; approximately 18% of Massachusetts jobs; and operation in over 38,000 locations across the state.

H.767 / H.833 – e-Waste legislation

The membership of RAM recognizes that electronic waste and the future disposal of electronic products is a very important issue that confronts all levels of government, federal, state and local.  What is needed in order to protect the seamless flow of 
interstate commerce is a comprehensive nationwide approach to the financing, collection, transportation and recycling of discarded electronic products.  A federal solution is warranted.  However, in the absence of a national uniform program, individual states have begun to address this issue on their own, opening up the potential for a patchwork of different and conflicting laws, making compliance difficult for multi-state retailers. 

With regard to the efforts of other states, RAM strongly opposes the advance recovery fee (ARF) model and its upfront consumer tax.  ARF proposals, based on the California law, utilize what some call a fee, charged to the consumer at the point of sale, collected by the retailer and remitted to the state to then fund the collection, recycling and disposal of discarded electronic waste.  Retailers and consumers would call this a tax.  There are a number of good reasons why no other state has followed CA's lead in adopting an ARF model.  What started out as a $6 - $10 fee in CA is now up to $25, as the CA system quickly became fiscally unsustainable.  This approach is also costly and administratively burdensome to retailers.  This approach would put our local Massachusetts retailers at a competitive disadvantage with retailers in all of our bordering states who would not be charging this tax or fee and neither would remote, internet sellers, as states have no jurisdiction in the collection of sales tax from remote sellers unless that seller has a physical presence in the state.  Massachusetts retailers operate in a very competitive environment and as we see every day along our New Hampshire border, if a consumer can save the current 5% sales tax on the purchase of a computer or big screen television, that savings alone is often enough to entice a Massachusetts consumer to buy out of state.  An added ARF or further tax on top of that will only make matters worse for our local retailers. 

The ARF approach clearly does not work, as no other state has followed CA's lead in adopting a similar system, with all of those states that have acted since enacting systems based on producer responsibility.  RAM has certainly favored the producer responsibility model in the past, given the options on the table, whether they have been ARF or mandatory retail take back proposals.  However, recent developments in the industry and marketplace have shown that this issue has moved significantly both nationwide and here in the Commonwealth.  Many major electronics manufacturers now offer some form of a collection and recycling system as they have voluntarily expanded programs into Massachusetts.  Also, a number of retailers (and RAM members) have put in place in store collection programs of their own, such as Staples and Best Buy.  Most retailers, including the smaller, independent electronics and appliance sellers, also will take back items free of charge with the purchase or delivery of a new computer or television. 

The electronics industry and the free market clearly have moved to address this issue to some extent and we would urge the Committee to look closely at these more recent steps.  While we remain supportive of a flexible, producer responsibility model approach, we do not want to disrupt those systems now in place that seem to be working successfully.

We stand ready to work with the Committee on this issue and look forward to an ongoing dialogue.

H.719 / H.798 / S.395 - Plastic Bags

Retailers exist to serve their customers by providing quality service and consumer choice at a good value.  The customer is always right.  Those same tenets of quality service and choice can be applied to the issue of plastic bags.  Many retailers now provide their customers with a choice at checkout of what type of bag they wish to use to carry out their purchased items.  Paper, plastic or reusable bags can be found in most stores, and depending on the items purchased, the customer is generally the one who makes that decision.  Many retailers sell reusable bags and many also now provide the opportunity to recycle plastic bags on site.        

There are many benefits to these different types of bags, including plastic bags.  Plastic carryout bags are often strong enough to reduce the need for double bagging of heavy items.  They are recyclable and reusable.  Plastic bags are now being recycled into new bags, composite lumber and other products.  They are light weight and easy to carry, yet sturdy and water resistant.
Consumers reuse plastic bags as wastebasket liners, lunch bags, cleaning up after pets and countless other ways. 

A ban on plastic bags is not needed, but further education on the issue is warranted.  We need to focus our attentions on educating consumers about their recycling options, which retailers will continue to do.  A ban will unfortunately not solve our litter problem either, or serve to correct the reckless actions of those who do discard of bags improperly.  Educating the public about recycling opportunities and encouraging reuse is the route we ought to take.  Many retailers now provide a means for proper recycling, but consumers need to participate, too, by limiting the number of bags requested, reusing bags and then bringing the bags back to a local retailer who has an in-store recycling program. 

We strongly oppose any attempts to ban the use of plastic bags or to apply “one size fits all” mandatory approaches toward in store collection and favor increased promotion and education efforts toward existing reduce/reuse/recycle programs.

S.425 - Paint Thinner Take Back

I urge you to oppose S.425, An Act to Establish a Paint Thinner Take Back Program.  Hazardous waste is and should be stringently regulated.  As retail outlets are not in the waste disposal business, we sincerely believe that retail stores are not suited to perform this type of operation and therefore should not be responsible for the collection and disposal of paint thinner. 

Paint thinners are ignitable, flammable materials that are classified as hazardous waste under the Federal Resources Conservation and Recovery Act (RCRA).  If this legislation was to be adopted, by establishing a “take back” program, a retail store would then become a generator of waste and would be liable for the proper identification, storage, transportation and disposal of the material.  Additionally, since retailers would be responsible for holding such material, they may be further regulated as a storage facility.  The potential exposure to additional regulatory requirements, the added costs and resources needed to comply with the record keeping and reporting requirements alone would impose a significant burden. 

Many of the retail outlets this bill would impact are located in malls next to other retailers, including restaurants and food stores.  Most simply would not even have the space required for a take back program.  Furthermore, neighboring retailers and consumers would not want a hazardous waste collection facility in their immediate vicinity.  Local zoning regulations may actually prohibit retailers from occupying space if they are storing hazardous waste.  Paint thinner is generally disposed of by consumers through Household Hazardous Waste (HHW) collection activities.  This method of disposal is ideal in that the residents of the Commonwealth are confident that the waste is disposed of properly and by those who are trained to handle it.

I respectfully urge you to oppose this legislation.

H.726 / H.831 / H.836 / H.3556 / S.384 / S.405

RAM wishes to be recorded in opposition to these bills, listed above.  In general, we oppose any efforts to mandate in store collection at retail of products at end of life and we do not support systems that seek to place deposits on products.  “One size fits all” mandatory approaches toward in store collection do not work, as retailers come in all shapes and sizes.  In discussing the products listed in these bills, whether they are thermostats, batteries, tires, paint, mercury added lamps or CFLs; the retail store is clearly not the appropriate collection venue.  Retailers remain committed to working with manufacturers and government on further promotion and education efforts toward consumers on the benefits of proper recycling and disposal. 

I thank you for the opportunity to comment on these matters.  Please do not hesitate to contact me if I can be of any assistance to you in your deliberations.