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Volume 10, Issue 5

September / October 2013

Security Shredding Storage News

Serving the Security Shredding & Paper Recovery Markets Visit us online at www.securityshreddingnews.com

R2 Evolution

R2:2013—The Next Generation of the R2 Standard—Raises the Bar for Electronics Recyclers’ Quality, Environmental, and Health and Safety Practices

www.SSMWEXPO.com See pages 8-9 for details

By John Lingelbach

PRSRT STD U.S. Postage

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n 2006, the U.S. Environmental Protection Agency (Washington, D.C.) convened a group of stakeholders to create a set of best practices that certifying bodies could use to assess electronics recyclers’ environmental and health and safety efforts. Over a threeyear period, the group of representatives from government regulatory agencies, original equipment manufacturers, electronics recyclers and refurbishers, trade associations (including ISRI), and nongovernmental organizations developed the Responsible Recycling (R2) Practices for Use in Accredited Certification Programs for Electronics Recyclers. In 2009, the ANSI-ASQ National Accreditation Board (Milwaukee) developed Accreditation Rule 34, which gave certification bodies—the entities that conduct audits and issue certifications—the ability to become accredited to certify electronics recyclers to the R2 standard. In 2010, the founding group established the nonprofit R2 Solutions (Boulder, Colo.) to administer and promote the standard. Since the standard’s debut, more than 275 companies around the world have achieved R2 certification. R2 was never intended to be a static set of practices, so R2 Solutions convened another multi-stakeholder group, the R2 Technical Advisory Committee, in 2011 to improve the standard based on input from its members as well as public comments. The result is a nextgeneration version of the standard, R2:2013,

which reinforces and builds on the foundation of the previous R2 certification program. R2 Solutions expects R2:2013 to strengthen the overall program by providing an even greater and more explicit emphasis on quality and raising the bar for several key R2 requirements. We have created the following Q&A to explain how and why the updated standard came about and describe the main differences between the old and new versions.

hy did R2 need to be revised? The multi-stakeholder group that created the original R2 standard—now called R2:2008—

Continued on page 3

Inside This Issue

4 Mobile Shredders Offered Certification by MSA

6 Social Media, Compliance and Risk Management

10 50-Year Privacy Rule Protects Decedent Health Information

13 Electronics Recycling Produces Jobs, Opens Revenue Streams

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Security Shredding & Storage News

R2 Evolution Continued from page 1

PUBLICATION STAFF Publisher / Editor Rick Downing

Contributing Editors / Writers John Lingelbach Todd Williams Sandy Woodthorpe

Production / Layout Barb Fontanelle Christine Pavelka

Advertising Sales Rick Downing

Subscription / Circulation Donna Downing

Editorial, Circulation & Advertising Office 6075 Hopkins Road Mentor, OH 44060 Ph: 440-257-6453 Fax: 440-257-6459 Email: downassoc2@oh.rr.com www.sssnews.com

For subscription information, please call 440-257-6453 Security Shredding & Storage News (ISSN #1549-8654) is published bimonthly by Downing & Associates. Reproductions or transmission of Security Shredding & Storage News, in whole or in part, without written permission of the publisher is prohibited. Annual subscription rate U.S. is $19.95. Outside of the U.S. add $10.00 ($29.95). Contact our main office, or mail-in the subscription form with payment.  ©Copyright 2013 by Downing & Associates.

Printed on 10% Post-Consumer Recycled Paper

agreed it should be updated after three to five years based on lessons learned through real-life implementation and changes in industry practices and technologies. Also, since R2’s launch in 2008, various stakeholders have offered comments and suggestions on ways to improve the standard and make it even stronger.

ow did the updating process work? The R2 Technical Advisory Committee recommended the updates after a thorough evaluation of the R2:2008 standard. Participants in the TAC deliberations included representatives from Best Buy, Dell, Microsoft, UPS, the U.S. General Services Administration, and some of the most progressive electronics recyclers and refurbishers in the industry. These entities had a strong interest in developing the most rigorous standard for the electronics recycling industry. The TAC also had nonvoting members who represented the certification bodies, auditors, and consultants. I also think it’s important to note the group was proactive about inviting public comments on the standard and suggestions for how to improve it.

hat are the main differences between R2:2013 and R2:2008? The R2 standard consists of 13 provisions. The most significant change is in Provision 1, the requirement for all R2 facilities to have an environmental and health and safety management system. Under R2:2008, a company could develop its EHS management system in accordance with a set of comprehensive but general R2 requirements. R2:2013 requires either a combination of ISO 14001, which covers environmental management, and OHSAS 18001, which focuses on health and safety management, or ISRI’s Recycling Industry Operating Standard™, which encompasses elements found in ISO 14001, OHSAS 18001, and ISO 9001 (which covers quality management). This more rigorous management system requirement substantially improves the integrity and accountability of the entire R2 certification. Additional significant changes in R2:2013 include the following: ■ It tightens the requirements on exports, mandating compliance with the export and import laws of all exporting, importing, and in-transit countries, regardless of whether or not they are members of the Organization for Economic Cooperation and Development (Paris). ■ It clarifies existing downstream due-diligence requirements 0to improve the tracking of equipment containing so-called focus materials—those that could be hazardous to human health and the environment if not managed properly—through each downstream vendor until the materials are sold for reuse or as a commodity. ■ Also, it takes a comprehensive approach to data security and destruction, ensuring the security of all media until they are sanitized or destroyed.

hen did the R2:2013 revisions take effect? The new standard’s effective date was July 1. A facility seeking a new R2 certification can get certified to the new standard as soon as its certification body is qualified to issue R2:2013 certifications.

ow do the changes affect R2:2008 certification holders? Facilities certified to R2:2008 must meet all the new provisions of R2:2013 by Dec. 31, 2014.

hat are the key differences between R2:2013 and other certification programs? R2:2013 differentiates itself from other certifications in numerous important ways: ■ It is the only certification developed through a transparent process by a multi-stakeholder group and with open public input. ■ It can be achieved by recyclers and refurbishers around the world—those in developed countries as well as those in emerging markets. ■ It requires applicants to have a certified environmental and health and safety management system. ■ It strongly encourages extending the life of electronics equipment through refurbishment and reuse. ■ It has comprehensive requirements regarding exports that allow socially conscious and environmentally responsible importing and exporting. These stricter requirements allow highly responsible international partnerships without hindering trade. ■ It requires recyclers to track all focus materials through each downstream vendor until they are sold for reuse as a fully functioning piece of equipment or as a commodity-grade material. The standard also prohibits the disposal of focus materials in municipal landfills and incinerators. ■ It has a strong focus on eliminating risk regarding data security, requiring complete data erasure or destruction to protect sensitive information. The new requirements mandate stricter training and credentials for employees handling data destruction as well as secure storage and tracking prior to destruction. All of these procedures must be audited. ■ It requires companies that recycle electronics using prison labor to ensure that the workers operate at the same high occupational standards for health and safety as non-incarcerated workers. ■ It does not require applicants to provide proprietary business information to earn or maintain certification. ■ It does not require recyclers to use specific technologies or practices but rather sets performance standards and then encourages innovation and improvement. ■ It has a reasonable initial implementation fee to meet the standard’s requirements, with ongoing maintenance fees. ■ The independent, nonprofit R2 Solutions administers the certification with the sole objective to promote environmentally and socially responsible electronics recycling worldwide.

hat is the anticipated long-term effect of R2:2013? The overarching goal of R2:2013 is to help electronics recyclers and refurbishers optimize their systems and practices and, by certifying to its requirements, assure their upstream clients that they are fully addressing potential risks to the clients’ brands and protecting them from potential legal and/or financial liability. John Lingelbach is executive director of R2 Solutions (Boulder, Colo.). For more information about the R2:2013 standard, visit www.r2solutions.org. This article originally appeared in the Jul/Aug 2013 issue of Scrap magazine (www.scrap.org). Reprinted with permission.

Security Shredding & Storage News. September / October 2013

Security Shredding & Storage News

Mobile Shredding Contractors Offered ...

By Todd Williams

hen a large truck pulls up to a company office and its driver begins to empty plastic bins filled with sensitive documents into the large hopper where shredder blades grind up the paper, Trace Hartridge wants to assure the customer the procedure is safe and secure. Hartridge, the president of the fledgling Mobile Shredding Association (MSA) and the owner of a mobile shredding company, says his goal is to bring a level of professionalism to an industry whose soaring growth rate demands self-regulation. Formed early this year, the MSA is rapidly expanding and now has a membership about 100 people in 20 companies, says Hartridge. The Brunswick, Georgia-based trade association is doubling its membership every month because it offers a method of certifying mobile shredding employees as true professionals, according to the MSA president. “MSA certification will ensure customers that the shredding employee arriving in the truck meets certain standards that safeguard the document shredding process. We only certify onsite shredding professionals who shred documents in real time at a customer’s location thereby closing the loop on the chain of custody,” Hartridge explains. He emphasizes that the mobile shredding industry is the most secure way of disposing of sensitive documents because they are destroyed at the customer’s location while the customer is watching. Ensuring the employees are certified adds another level of customer confidence in the shredding procedure. Certification through the MSA, explains Hartridge, states an employee has passed an extensive criminal background check, has been drug tested and that his equipment has passed industry-established criteria. After MSA certification, the shredding company employee is issued a badge printed with the MSA logo, his employer’s logo and a bar code which can be scanned by the customer to verify its legitimacy. “The customer wants to make sure the person shredding important documents is not a felon and that he is who he says he is,” says Hartridge. Ian Taylor, a member of the MSA board of advisors and owner of Eagle Shredding, a mobile shredder based in Atlanta, Georgia, says as the cost of mobile shredding drops due to its increasing popularity, the demand for certified employees will surge. “Mobile shredding shortens the chain of custody to the point where it’s almost eliminated. The customer can see his documents being shredded real time in his parking lot,” Taylor says. He adds that most shredding trucks have onboard video cameras enabling the customer to actually view the documents entering the shredder. And with the work being done with a high tech truck operated by a certified employee,

total security of the documents is guaranteed. Taylor recalls the days before mobile shredding when all trucks picked up documents and took them to plant- based shredders. “If there was an accident, there was a real possibility of your documents scattered all over the highway. Mobile shredding has eliminated this issue,” he notes. Also, the use of trucks that automatically empty document bins into a hopper has ended the practice of hand feeding documents into the shredder. “We want to eliminate the need for anybody handling the documents. It’s become even more important for the mobile shredding industry’s employees to be certified. It’s all part of professionalism, Taylor adds. In addition to the certification that an employee has had a background check and has passed a drug screening, Hartridge says the MSA is in the process of developing a knowledge-based test. This test will cover three major areas - the security process of document shredding, an overview of government and legal regulations affecting the shredding industry, and a complete understanding of the MSA organization and the certification process. He notes that by Jan.1, 2014, this testing procedure will be implemented and that all employees including full, part-time and temporary will have to pass it to be issued MSA identification badges. According to Hartridge, when a mobile shredding company has sent in all paperwork for an employee including results of testing and an application, it takes about 10 days for the MSA to audit the information and issue an identification badge. Cost for the entire procedure is relatively inexpensive – about $50 for each shredding professional with quantity discounts available. All badges are good for one year only. Employees must reapply each year, he adds. Any shredding company that offers mobile shredding, he adds, can also join the organization for $100 per year to take advantage of MSA benefits including an MSA Discount Club, a map locator service on the MSA website allowing potential customers to locate employing MSA certified employees, and eventually a shred truck rental service. Hartridge sees the employee certification process as another step in the rapidly expanding business of mobile shredding – and an important one at that. “I’ve been in the document destruction industry for over 15 years now, starting when documents were incinerated. When I began a mobile shredding company and saw there was no means of ensuring professionals were destroying documents and there was no trade association for mobile shredders, I founded MSA. There was a real need for this in our industry,” he adds.

4 Security Shredding & Storage News. September / October 2013

In the News Registration Open Security Shredding/ Medical Waste Conference Coming November 10-12

he 2013 Security Shredding/Medical Waste Conference will take place at the Omni Championsgate Resort in Orlando, Florida, Nov. 10-12, 2013 and online registration is still open for this event. Showcasing more than 40 equipment and product companies supplying both the document shredding and medical/pharmaceutical waste industries, the conference will include an exceptional lineup of educational sessions designed to help business owners. “This year’s conference will also feature additional sessions specifically designed to assist security shredding businesses expand into the profitable medical waste/pharmaceutical collection market,” said Rick Downing, Publisher of Security Shredding & Storage News. He notes that the conference will also benefit medical waste firms eyeing the lucrative market of document shredding. “It’s a two-way street,” says Downing. “And we’ve found that it’s easier for the medical waste firms to get into document shredding than the other way around.” According to Cory Smith, director of events for SEMCO Productions, managers of the conference, over 300 attendees have already chosen to take part in the two and a half-day event. Smith calls the event “unique” because of the crossover nature of the two businesses. “There will be plenty of opportunities for the attendees to learn from each other. This is a contentfocused event that will help people work more efficiently and thus more profitably. Of course there will be seminars and breakout sessions during the conference as well as over 50 exhibitors showing off their products. In fact, we will have a large outdoor demo area for large trucks and other equipment,” Smith notes. Smith says in addition to the sessions and educational opportunities at the conference, networking possibilities here are endless. “This is a smaller, intimate event that allows for plenty of networking contacts between attendees. It’s an all inclusive resort with a beautiful golf course making for a great venue,” he adds. Smith says post-conference surveys indicate that networking and building relationships is the “most compelling part of the conference experience. “ “An after party at the end of the first full day of the event, will prove to be a great networking opportunity,” Smith adds. See pages 8-9 for additional information.

For more information about exhibiting or attending the show, email Cory Smith at csmith@miningmedia.com or call 678-822-9804. To register online, please visit our website at www.SSMWExpo.com.

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In the News Intercon Solutions’ Lawsuit Upheld, BAN Countersuit Dismissed

www.shred-tech.com

Info Request #157

udge Virginia Kendall of the United States District Court in Chicago recently rejected a request by Basel Action Network, a Washington not-for-profit corporation (“BAN”), and James Puckett, its Executive Director, for dismissal of Intercon Solutions’ lawsuit. Intercon Solutions filed the lawsuit in 2012 seeking damages for defamation and false light. The lawsuit concerns the increasing problem of internet defamation. Intercon Solutions alleges that in the Summer of 2011, BAN and James Puckett placed false and malicious accusations on the internet claiming that Intercon Solutions was denied BAN’s e-stewards certification because it had illegally shipped two containers of hazardous waste to China and Hong Kong in 2011. Intercon Solutions alleges that James Puckett and BAN acted out of malicious self-promotional reasons and to further advertise and market the “e-stewards” brand at the expense of Intercon Solutions. As part of the 63-page opinion and order, Judge Kendall rejected arguments of BAN’s legal team that Intercon Solutions’ lawsuit was “frivolous” and should be dismissed because an anti-SLAPP statute applied. Judge Kendall also rejected BAN’s legal team arguments that BAN’s statements constituted permissible and non-actionable opinion. Judge Kendall held that the very specific statements in Puckett’s letter, the BAN press release and Evidentiary Report constitute factual statements that are defamatory, despite BAN’s claims that their statements were only statements of opinion. Additionally, the Court ruled that Intercon Solutions’ allegations that BAN was motivated by its desire to “create a false reputation as a crusader and ethical leader in the e-recycling industry” and “to increase enrollment in BAN’s ‘e-Stewards’ certification program and increase its revenues,” sufficiently allege actual malice and that Intercon Solutions may proceed to litigate and prove its claims of malicious defamation and false light. Judge Kendall also ruled that BAN will have an opportunity to prove its claims that Intercon acted with unclean hands.

Social Media, Compliance and Risk Management

ew York, NY—Getting a new business off the ground or launching a new program just got a little easier – although perhaps a little riskier -- with this summer’s latest SEC ruling on disseminating company information, according to an article on InformationWeek.com. Startups and small enterprises looking for private investors may now attract them by posting company information on “free” digital channels, such as Facebook and Twitter. This option does look promising for innovators and entrepreneurs, but security concerns tend to darken an otherwise bright picture. The highly accessible and dynamic nature of social networks as no- or low-cost solutions is a double edged sword. Social media is known to be vulnerable to hacking and all sorts of other security hijinks. So should companies leap to take advantage of this financial avenue? Only if they look first, according the Information Week article. Compliance and business risk might be thought of as the same animal, but with two heads. That makes for an exotic species in the world of venture capital because compliance applies not only to government regulations, but also to contracts with customers and suppliers and a company’s internal policies regarding data collection and management. It helps to be proactive and to begin with everybody - IT, marketing and sales – on the same page. Understanding and agreeing how data will be collected and used is crucial. Bringing all groups to the table, particularly during the planning stages of rolling out new programs or facilities will capture the full range of ideas and concerns. Using free “flexible frameworks,” such as COBIT can work well for small budgets. Small businesses should concentrate on firewalls, penetration testing and access control.

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attention: readers!

Would you like more information about products and equipment advertised in this issue? If so, please complete the Equipment Locator Service form located between pages 8 & 9 and fax to 440-257-6459.

6 Security Shredding & Storage News. September / October 2013

In the News e-Waste Recycling Solutions

ancouver, BC—A RareEarthInvestingNews.com article reports that extracting rare earth compounds from electronic waste (e-waste) has the potential to become the “next big thing” in recycling. Rare earth metals demand was worth USD 3.93 billion in 2012 and is expected to reach USD 8.19 billion by 2018. Gold from circuit boards, indium (used in liquid-crystal display screens), antimony (used in silicon wafers for semiconductors, neodymium, (used in industrial batteries to power electric motors), and dysprosium (used in laser materials) are some of the valuable “rare earths,” as they are called, that could be recovered through recycling. Various chemical extraction processes are being developed at companies such as Veolia ES Technical Solutions in the U.S., Solvay Group in France and Dowa Holdings in Japan. Automakers Honda, Toyota, Ford and General Motors are also on the bandwagon. The ultimate target for much of the current research is to capture rare earths from e-waste and recycle to the point where nothing (or very little) remains. Recovering metals and compounds that can be used in the manufacture of new electronic components and devices or other products is another goal. So far, profitability hinges on high demand/limited supply, rather than large-scale production. One recycling plant in Japan built by Dowa Holdings processes 300 tons of computer chips a day but only yields about 150 grams of rare metals, according to a New York Times article. Asia Pacific dominated the global market, accounting for 79.5% of global volumes in 2011, followed by North America and Europe. The Chinese have had the edge on the rest of the globe in extracting rare earths. China was the largest regional market for rare earth metals in Asia, accounting for over 50% of total volumes in 2011, both in terms of consumption as well as production. Regional demand for magnets and the growing metallurgy industry are expected to drive the Asia Pacific market in the near future. The global market for these substances was $1.5 billion in 2010, although that is small according to mining standards. But its value keeps increasing as Chinese restrictions on exports stifle supply and push prices up. Diverting CRT display monitors, fluorescent lamps and light fixtures, magnets, batteries and certain automobile parts from landfills achieves an important goal of good earth stewardship, as well.

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Security Shredding & Medical Waste Conference Agenda SUNday, November 10, 2013 8:00am - 5:00pm

Registration Open and Exhibitor Set up

3:00pm - 5:00pm

Shredder/Baler Maintenance & Applications

6:30pm - 8:00pm

Welcome Reception

MoNday, November 11, 2013 7:00am - 5:00pm

Registration Opens

7:00am - 8:00am

Breakfast on Show Floor

8:00am - 8:45am

Outrageously Effective Ways to Get in Touch with Hard to Reach Decision Makers - Jay Wallus

9:00am - 10:00am

HIPAA: Understand Your Obligations Under HIPAA Regulations & Avoid Legal Pitfalls - Jeff Baird

10:00am - 10:45am Morning Break 10:45am - 11:30am Expanding Your Business Potential Through Multi-Material Recycling - Matt Cougle 11:30am - 12:15pm Security In Layers - Detecting & Deterring Potential Loss Causing Events - Brian Baker 12:15pm - 1:15pm

Lunch - exhibits open

1:30pm - 2:15pm

US DOT Regulations & Procedures for Shipping/Transporting Haz Waste - Kandy Boyer

Best Practices for Operating a Shredding Business - Renee Keener

2:30pm - 3:15pm

Pharmaceutical Waste Collection 'HĂ€QLWLRQV 5HJXODWLRQV 0JPW - Kandy Boyer

6KUHGGHG 2IĂ€FH 3Dper Market Review - Bill Moore

3:30pm - 4:00pm

Afternoon Break on show floor

4:00pm - 4:45pm

Partnering with Healthcare Facilities to Increase Your Recycling Opportunities - Sheri Mitchell

5:00pm - 6:00pm

Networking Reception with Exhibitors

TUesday, November 12, 2013

Equipment Leasing Options for Fleet Owners - Terry Lee

7:30am - 12:00pm

Registration Opens

8:00am - 9:00am

Breakfast on show floor

9:00am - 9:45am

The Medical Waste Tracking Act â€Ś Past, Current & Future Trends - Ed Krisiunas

Protecting Your Facility The ABCs of CCTV - Bob Grossman

9:45am - 10:30am

Competing Effectively in the Medical Waste Transport Marketplace - Alan Rosenauer

Panel Discussion - Problems/Concerns Facing Independent Shredding Contractors Increasing Your Business Opportunities Through Electronic Media - Drew Dekker

10:30am - 11:15am Sourcing & Recycling X-Ray Film - Keith Franklin & Lon Rodnitsky 11:30am - 2:00pm

Lunch on Show Floor and Exhibits

Security Shredding & Storage News. September / October 2013

In the News 50-Year Privacy Rule Protects Decedent Health Information

ashington, DC—The HIPAA Privacy Rule protects the individually identifiable health information about a decedent for 50 years following the date of death of the individual. Under the 50-year rule, archivists, biographers, historians, and others may access old or ancient records on deceased individuals for historical purposes. During the 50-year period of protection, the personal representative of the decedent (i.e., the person under applicable law with authority to act on behalf of the decedent or the decedent’s estate) may authorize certain uses and disclosures of, and gaining access to, the decedent’s information. With respect to family members or other persons involved in the individual’s health care or payment for care prior to the individual’s death, but who are not personal representatives, the Privacy Rule permits a covered entity to disclose the relevant protected health information of the decedent to such persons, unless doing so is inconsistent with any prior expressed preference of the deceased individual that is known to the covered entity. For example, a HIPAA covered entity that maintains health or medical records, correspondence files, physician diaries and casebooks, or photograph collections that contain identifiable health information on individuals who have been deceased for more than 50 years may use or disclose the information without regard to the Privacy Rule because the information is not considered protected health information. During the 50-year period of protection, the Privacy Rule generally protects a decedent’s health information to the same extent the Rule protects the health information of living individuals. For uses or disclosures of a decedent’s health information not otherwise permitted by the Privacy Rule, a covered entity must obtain a written HIPAA authorization from a personal representative of the decedent who can authorize the disclosure. A decedent’s personal representative is an executor, administrator or other person who has authority under applicable State or other law to act on behalf of the decedent or the decedent’s estate.

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In the News Photocopier PHI Breach Draws $1.2+ Million in Fines

ashington, DC—According to an article on HealthLawPolicyMatters. com, Affinity Health Plan, Inc. has reached a settlement with the Office for Civil Rights to pay $1,215,780 in HIPAA fines for breach of protected health information. After Affinity reported the breach to the government, OCR investigators found that the company had failed to remove protected health information (PHI) from the hard drives of leased photocopy machines. In addition, there was no documentation of leased photocopier hard drives, and neither were the machines listed under company security policies. The breach involved some 344,579 patient records that should have been erased when the company returned multiple photocopiers to the leasing agent. OCR has ordered the company to follow a Resolution Agreement and Corrective Action Plan. Under the Plan, Affinity mush retrieve additional returned photocopier hard drives from its leasing agent and secure any stored PHI. Affinity is required to document its best efforts and explain to OCR any failure to retrieve a hard drive.

Ray Barry joins NAID as Chief Shreducation and Member Relations Officer

ffective Sept. 23, 2013, Ray Barry joined the National Association for Information Destruction (NAID) staff as the Chief Shreducation and Member Relations Officer. Barry is well known in the secure destruction industry as the former dean of Shred School from 2005 to 2012 and his many years serving on the NAID Board of Directors. NAID President Tom Huth of Allshred Services, Inc. said, “Ray adds a lot of depth to the NAID management team. The association continues to grow and Ray’s reputation as a tireless advocate for the secure destruction industry fits perfectly into our plans. The continued success of Shred School since NAID acquired it last year is a testament to Ray’s industry clout. We see him stepping right back into that role along with a number of other responsibilities that suit his many talents.” In joining NAID, Barry leaves his position as Director of Sales for the Eastern Division at Access Information Management.

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Info Request #117

[ Document protection? ]

HIPAA Omnibus Rule Challenges Linger

ashington, DC—According to a Journal of American Medicine Viewpoint article, the compliance challenges faced by HIPAA-covered entities are thorny and causing many delays. The article’s authors, C. Jason Wang, M.D., of Stanford University and Delphine Huang of the University of California, San Francisco, School of Medicine conclude that the U.S. Department of Health & Human Services may have “significantly” underestimated the costs associated with compliance rules spelled out by Health and Human Services last January. Wang and Huang found that healthcare organizations face four main hurdles: vague standards, patient use of unsecured electronic devices, insufficient “tools,” (such as the HIPAA Security Toolkit), and complicated rules for HIPAA-covered business associate partnerships. An overarching problem is that the HIPAA omnibus final rule standards are being interpreted in many ways, the article says. This is leading to added expense for developing and implementing measures that may not even be necessary for a particular healthcare organization. Particularly for marketing campaigns, HIPAAcovered business associates and healthcare organizations find themselves working out many unforeseen technical, administrative and legal hurdles. Mobile technology is, in itself, a huge issue. IT professionals must manage a host of security matters resulting from increased patient use of personal smartphones, laptops and other mobile devices to access their records. One unexpected outcome of the burgeoning health IT industry is that mobile technology companies will have to meet the brisk pace of growth while contending with a plethora of security issues – and they will bear the costs. HHS, the authors conclude, may need to “reevaluate and adapt its regulations” to keep pace with new technology innovations.

Document protection is never in question with Jake, Connor & Crew consoles and bins. For the right solution, contact: www.jakeconnorandcrew.com or call 1-877-565 -JAKE (5253) Jake, Connor & Crew’s containers are recyclable, comply with LEED® and CARB II regulations and are JCAHO compliant.

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Info Request #105

Security Shredding & Storage News. September / October 2013 11 JCAC_SSSN_QuarterPgLockItAds.indd 2

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In the News Equipment Lease Finance Industry Confidence Up Fourth Consecutive Month

he Equipment Leasing & Finance Foundation (the Foundation) releases the August 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector. Overall, confidence in the equipment finance market is 61.0, an increase from the July index of 59.4, and the fourth consecutive increase of the MCI-EFI. When asked about the outlook for the future, MCI survey respondent William Verhelle, Chief Executive Officer, First American Equipment Finance, said, “We see continued, gradual economic improvement in equipment finance activity across all our markets. Large, creditworthy obligors continue to finance major equipment acquisitions to retain flexibility and preserve capital. Our portfolio performance couldn’t be much better, with record low charge-offs and delinquencies. We remain cautiously optimistic about the remainder of 2013 and 2014.”

August 2013 Survey Results: •

•

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20.6% of executives expect more access to capital to fund equipment acquisitions over the next four months, down from 21.9% in July. 79.4% of survey respondents indicate they expect the “same” access to capital to fund business, an increase from 78.1% the previous month. No one expects “less” access to capital, unchanged from July. When asked, 29.4% of the executives reported they expect to hire more employees over the next four months, an increase from 25% in July. 64.7% expect no change in headcount over the next four months, down from 68.8% last month. 5.9% expect fewer employees, down from 6.3% of respondents who expected fewer employees in July.

•

91.2% of the leadership evaluates the current U.S. economy as “fair,” up from 90.6% last month. 8.8% rate it as “poor,” down slightly from 9.4% in July.

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23.5% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 15.6% in July. 76.5% believe demand will “remain the same” during the same four-month time period, down from 81.3% the previous month. No one believes demand will decline, down from 3.1% in July.

•

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next six months, a decrease from 34.4% in July. 70.6% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 62.5% in July. 2.9% believe economic conditions in the U.S. will worsen over the next six months, down slightly from 3.1% who believed so last month.

he overall MCI-EFI is 61.0, an increase from the July index of 59.4. When asked to assess their business conditions over the next four months, 32.4% of executives responding said they believe business conditions will improve over the next four months, up from 25% in July. 67.6% of respondents believe business conditions will remain the same over the next four months, down from 71.9% in July. No one believes business conditions will worsen, down from 3.1% the previous month.

•

26.5% of survey respondents believe that U.S. economic conditions will get “better” over the

•

In August, 29.4% of respondents indicate they believe their company will increase spending on business development activities during the next six months, a decrease from 31.3% in July. 70.6% believe there will be “no change” in business development spending, an increase from 68.8% last month. No one believes there will be a decrease in spending, unchanged from July.

Why an MCI-EFI?

onfidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

Who participates in the MCI-EFI?

he respondents are comprised of a wide cross section of industry executives, including large-ticket, middle-market and small-ticket banks, independents and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.

About the Foundation

he Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that provides vision for the equipment leasing and finance industry through future-focused information and research.

Paper Recycling – An Industry “Made in Europe”

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urope—Europe’s paper recycling rate exceeded 70% last year, according to an article on RecyclingInternational.com. A new report released by the European Recovered Paper Council (ERPC) says that paper consumption in the EU, Norway and Switzerland has not changed since 1998, but paper recycling is up 1.5 percent. Countries outside the EU-27 imported 9.4 million tons of the total 58 million tons collected and recycled. Jori Ringman-Beck, ERPC secretary commented: “The European paper value chain devotes huge efforts year after year to simplify paper recycling for citizens and consumers in offices and at home. The figures in the report prove that paper recycling is truly an industry “made in Europe.’’ And in line with EU policies it needs to be safeguarded to remain so.” Although paper recycling is starting to ‘level out,’ about half the countries recycle just under 60 percent, while the rest consistently hit 70 percent. The decline of newsprint consumption accounts for some of the fluctuation in those percentages. Paper and board was the most recycled packaging material in Europe last year at 81.3%; steel was second at 74%, followed by glass at 70% and aluminum at 67%. The European Recovered Paper Council (ERPC) was set up for the launch of the First European Declaration on Paper Recovery in November 2000 with the aim of monitoring the progress made towards meeting the recycling targets set out in the European Declaration. For more information, visit: www.paperrecovery.org.

12 Security Shredding & Storage News. September / October 2013

In the News Tons of e-Waste Abandoned in Colorado

enver, CO—A Denver electronics recycling company collected money and 750 tons of e-waste, then left town, according to a report on TheRepublic.com. Luminous Recycling’s workers loaded tons of mostly computer monitors and televisions into 14 rented semi-trailers. The company had rented 25 trailers in all. While the Colorado Department of Public Health and Environment conducts its investigation, the trailers sit in a huge Denver warehouse. The recycling company collected the e-waste in June, prior to a new state law taking effect, which banned electronics in residential trash pick-up. The state’s hazardous waste regulations cover commercial waste collections. Colorado Department of Public Health and Environment spokeswoman Kate Lemon said a warehouse where the e-waste is stored is secure. The department is still trying to determine what hazards might be posed by the hazardous waste in the trailers. No action has been taken against the owner while the investigation continues. Gary DeWitt, who owns the semi-trailers that were rented to Luminous Recycling, said the company filled them with so much computer glass the vehicle tires went flat. He said the trailers are filled from front to back with glass, each weighing at least 2,500 pounds.

Electronics Recycling Produces Jobs, Opens Revenue Streams

ccording to a report funded by the Environmental Protection Agency, the electronic waste in landfills could produce roughly 50,000 new jobs, both directly and indirectly, and almost $800 million in new payroll for Americans next year. Green Technology Solutions, Inc. (OTCBB: GTSO), an environmentally conscious company with an ongoing interest in delivering “green friendly” solutions to a global market, believes the findings in these reports along with pending legislative action could lead to big potential gains for the company. “We are exporting jobs. These jobs are revenue streams,” GTSO CEO Paul Watson said. “This is almost a billion dollar salary market with thousands of jobs waiting for U.S. employees, and major earnings for emerging companies in this sector.” DSM Environmental Services performed a study for the Coalition for American Electronics Recycling (CAER) to estimate the number of jobs associated with e-waste recycling in the United States. Citing the EPA report, DSM found that 1.2 billion pounds of electronics were recycled in 2011, and 4.8 billion pounds of e-waste were generated that year.

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Attention: Document Destruction Contractors! Help Your Customers Find a Home for Their Outdated Electronics Do what many ‘leading recyclers’ have done ... Partner with Dan-Mar and turn your scrap into cash! Precious metal value is going up and so is the demand for electronic scrap. As a global leader in asset recovery, Dan-Mar is ready to present you with fresh thinking on how you can maximize your profits. Call Dan-Mar today! ph: 631-242-8877 • fax: 631-242-8995 150 West Industry Court, Deer Park, NY 11729 e-mail: smartini@dan-mar.com • www.dan-mar.com

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Security Shredding & Storage News. September / October 2013 13

In the News Veolia Environmental Services Opens State-of-the-Art Electronics Recycling Facility

Pratt to Build Paper Recycling Plant in Valparaiso

new Veolia electronics recycling facility that serves businesses and consumers in the Northeast and mid-Atlantic states has opened in West Bridgewater, Mass., and features the latest state-of-the-art recycling of fluorescent lamps, ballast, batteries, computer electronics and mercury-bearing waste. Local and state officials joined Veolia Environmental Services employees at an on-site ribbon-cutting event celebrating the new facility, which replaces one in Stoughton, where Veolia has been operating since 2000. “As technology improves, we’re able to break down and reclaim even more materials, especially hazardous materials, and prevent them from entering the waste stream,” stated Jim Bell, CEO and president of Veolia ES Technical Solutions. “Our investment in this facility represents our commitment to finding better solutions for lighting and electronic waste as well as ways to minimize the impact of waste on our environment.” The ability to process and reclaim material instead of sending it to a landfill is a primary goal of the facility. Veolia installed new processing equipment that allows for more than 99% of a fluorescent lamp, by weight, to be recycled. The company not only separates a fluorescent lamp into its core components of glass, aluminum and mercury-bearing phosphor power, but also reclaims the mercury and works with partners to recover rare earth elements from the phosphor powder. Veolia currently processes approximately 15.5 million pounds of lighting and electronic waste annually and over 155 lbs. of elemental mercury is reclaimed from recycling fluorescent lamps. New state-of-the-art recycling equipment will provide for an increased capacity for fluorescent lamps by 150%.

alparaiso, IN—The Chestersontribune.com reports that Pratt Paper, LLC will be constructing a new $260 million paper recycling facility in Valparaiso that promises to be a significant boost to the local economy. The company is a subsidiary of Georgia-based Pratt Industries. The 250,000 square-foot facility will be located adjacent to the parent company’s box-making plant in Valparaiso and is expected to produce more than 360,000 tons of recycled paper each year. A total of $17 million in tax and operational incentives have been offered to Pratt by the Indiana Economic Development Corporation (IEDC), The Northwest Indiana Regional Development Authority and Northern Indiana Public Service Company. The City of Valparaiso is also considering tax abatement for the plant. Construction completion is set for July 2015. The project includes a dedicated wastewater pre-treatment facility and road improvements. Hiring is set to begin in late 2014 with openings for paper machine operators, equipment operators, electrical and instrumentation technicians, shipping representatives, waste yard personnel, shift supervisors and maintenance associates. The company says full staffing (137 employees) should be in place by 2018. The existing Pratt plant has approximately 320 employees, and the company has more than 4,000 employees at facilities across North America. Pratt is the world’s largest privately held company to produce all of its paper and packaging from 100 percent recycled products. The company produces 1.15 million tons of recycled paper annually, most of which is used to produce packaging for various market sectors including industrial, food and beverage, electronics, pharmaceuticals and telecommunications.

Product/Equipment Profiles Vecoplan Introduces VAZ 1300 & 1600 New Generation Shredders

he VAZ 1600, one of Vecoplan’s New Generation shredders, incorporates a wide range of innovations that improve performance, increase durability and decrease maintenance time. These features and options include: direct drives, double sidewalls, reversible counter knives, hydraulic swing-up screen carriages, rotatable screens, and externally adjustable counter knives. Direct drives increase torque, eliminate drive belts, lower maintenance costs VAZ 1300 U-S and decrease machine base widths. Double sidewalls reduce wear, eliminate contamination of and heat transfer to bearings, increase durability and lower maintenance costs. Reversible counter knives deliver twice the life while cutting replacement costs in half. Hydraulic swing-up screen carriages provide quick and easy access to rotor for cutter replacements, and ample access to cutting chamber easy cleanout, tramp metal removal, and other routine maintenance. Rotatable screens can be turned 180° increasing wear life by a factor of 1.5. Externally adjustable counter knives allow you to maintain optimal cutting tolerances quickly and easily. This is especially beneficial when shredding thin materials. The VAZ 1300 U-S “Shorty” features a shorter feed ram, providing it with a smaller footprint and allowing it to be retro-fitted in tight areas or to maximize utilization of space in new facility installations. Ram feed strokes are calibrated for maximum throughput efficiency. The VAZ 1300 U-S features true dump and run operation, so entire containers of waste can be fed into its hopper. It’s hopper has a volume capacity of 3.75 cubic yards and a 52”x58” hopper opening. Its 15” diameter rotor has 30 indexable cutting inserts, is powered by a 100 HP motor, turns at 100-145 rpms, and is fed by a two speed hydraulic ram. VAZ 1600

For more information contact Vecoplan at 336-861-6070; info@vecoplanllc.com or visit our website at www.VecoplanLLC.com

14 Security Shredding & Storage News. September / October 2013

IS YOUR RECYCLER CERTIFIED? Do the right thing. Work with an R2/RIOS™- certiﬁed facility. The R2/RIOS™ difference is that reuse and recycling are the primary objectives in the lifecycle of electronics. This means fewer materials are sent to landfills. Further, R2/RIOS™ helps protect the environment by extending the life of equipment, parts and components. Tested, functional equipment is sent back into the marketplace for reuse.

As a company partnering with an R2/RIOS™-certified facility, you can have the confidence your electronics are being recycled with the highest regard for the environment and the health and safety of employees and the public. To find an R2/RIOS™-certified partner, visit: certifymerecycling.org/partner.

Each certified facility aims to protect a customer’s brand by: •

Requiring proper data destruction to wipe out confidential information

•

Holding the highest standards for data protection, such as those mandated by HIPAA regulations

•

Offering the sole program that combines quality, environmental, health and safety requirements into a single management system

Security Shredding & Storage News. September / October 2013 15

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