The ELFA State Relations Team tracked, monitored and—where needed—weighed in on more than 2,375 state bills in 49 states in 2017. We expect that number to remain steady in 2018. By early March, every state legislature was in session except North Carolina, which will convene in May, and Montana, Nevada, North Dakota and Texas, which will not meet in 2018. With most states currently in session, your team at ELFA is working to review and—where needed—address all early and prefiled bills. ELFA’s efforts are focused on identifying any and all measures that would wrongly infringe on the operations of ELFA members in the commercial sector. Highlighted below are a couple pieces of proposed legislation and state activity that have raised ELFA concern.
Although consumers are at times cited as those to be protected, cursory bill text definitions and the breadth of intent give these bills broad application in the commercial and consumer marketplace. The New York bill includes a section that offers a rationalization for introduction that likely would apply in all these states. It reads in part: “The state’s version of the bill mainly regulates the retailers and the Federal bill mainly focuses on the manufacturers of products that distribute [on] the internet and make the content accessible. The state’s version of the bill is just the digital version of the physical display statute which all 50 states already have. Just as newsstands have to put obscene content behind a physical blinder rack that can only be removed by the retailer, if the consumer is over 18 and wants to have access to the material, the retailers and manufacturers of products that distribute [on] the internet, going forward, have to ensure that obscenity and prostitution hubs are placed behind digital blinder racks that can only be removed by the retailer if the consumer is over 18 and undertakes the steps to have the filter removed.”
*Please note that at time of writing, ELFA has not identified any federal legislation modeling this legislation.
In electronic recycling legislation ELFA members must follow mandates placed on retailers, which Senate Bill 1369 describes as “a person that sells, rents or leases through sales outlets, catalogs or Internet covered electronic devices,” which is defined as ”a computer monitor of any type having a viewable area greater than four inches measured diagonally, a desktop computer or portable computer or a television of any type having a viewable area greater than four inches measured diagonally.” The “covered entity” to which the premium recycling fee may be charged is defined as “any household or business” with “household” meaning an occupant of a dwelling “who used a covered electronic device at a dwelling unit primarily for personal use” but there is no definition for business.
Blocking Software on Equipment Proposed
Commonly titled the Human Trafficking and Child Exploitation Prevention Act, 16 bills proposed in Georgia, Hawaii (two), Illinois, Kansas, Kentucky, Maryland, Mississippi, Missouri, New Mexico, New Jersey (two), New York, Rhode Island, Virginia and West Virginia were drafted from model legislation seeking to make it unlawful to manufacture, sell, offer for sale, lease or distribute a product that makes content accessible on the Internet unless it contains active and properly operating digital blocking capability that renders obscene material inaccessible in some instances coupled with ongoing efforts to ensure the blocking capability functions properly. ELFA members are asked to forward bullet points explaining why responsibility for placement of blocking software on commercial equipment finance lessors will not work. Your practical marketplace examples should be sent to ELFA Vice President of State Government Relations Scott Riehl at [email protected].
Although consumers are at times cited as those to be protected, cursory bill text definitions and the breadth of intent give these bills broad application in the commercial and consumer marketplace. The New York bill includes a section that offers a rationalization for introduction that likely would apply in all these states. It reads in part: “The state’s version of the bill mainly regulates the retailers and the Federal bill mainly focuses on the manufacturers of products that distribute [on] the internet and make the content accessible. The state’s version of the bill is just the digital version of the physical display statute which all 50 states already have. Just as newsstands have to put obscene content behind a physical blinder rack that can only be removed by the retailer, if the consumer is over 18 and wants to have access to the material, the retailers and manufacturers of products that distribute [on] the internet, going forward, have to ensure that obscenity and prostitution hubs are placed behind digital blinder racks that can only be removed by the retailer if the consumer is over 18 and undertakes the steps to have the filter removed.”*Please note that at time of writing, ELFA has not identified any federal legislation modeling this legislation.
Arizona Electronic Recycling Fee Legislation Gains Interest
Arizona Senate Bill 1369 initially follows the manufacturer responsibility electronic recycling concept supported by ELFA that does not require fee collection by lessors but instead payment of a fee by manufacturers. However, unique definitions in the bill would allow a recycling fee to be charged to a “covered entity” defined as “any household or business” for “premium service” of collection, transportation or recycling of covered electronic equipment. Premium service is not defined. Please send your perspective on the manner in which this undefined premium recycling service fee might be implemented on equipment lease finance transactions in comments to ELFA Vice President of State Government Relations Scott Riehl at [email protected].In electronic recycling legislation ELFA members must follow mandates placed on retailers, which Senate Bill 1369 describes as “a person that sells, rents or leases through sales outlets, catalogs or Internet covered electronic devices,” which is defined as ”a computer monitor of any type having a viewable area greater than four inches measured diagonally, a desktop computer or portable computer or a television of any type having a viewable area greater than four inches measured diagonally.” The “covered entity” to which the premium recycling fee may be charged is defined as “any household or business” with “household” meaning an occupant of a dwelling “who used a covered electronic device at a dwelling unit primarily for personal use” but there is no definition for business.
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2018