Volume 11, Issue 3
jul-sep 2014
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www.securityshreddingnews.com
ATTENTION: READERS !
Are you looking for Products, Equipment or Services for your business? If so, please check out these leading companies advertised in this issue:
Collection & Storage Containers Bomac Carts – pg 7 Jake, Connor & Crew – pg 11
Equipment Financing TransLease Inc – pg 11
Lock & Locking Systems Lock America Intl. – pg 15
Mobile Truck Shredders Alpine Shredders Ltd – pg 13 Shred-Tech Limited – pg 10 Vecoplan LLC – pg 6
Reduce Pre-hire Exposure to Liability
Moving Floor System Keith Manufacturing – pg 7
Software EZshred – pg 5
Stationary Shredders & Grinders Allegheny Shredders – pg 15 Shred-Tech Limited – pg 10 Vecoplan LLC – pg 6 WEIMA America – pg 16
Trade Associations
NAID (National Association of Information Destruction) – pg 12 R2RIOS / ISRI – pg 2
Waste Commodity Purchasers Dan-Mar Components – pg 13
Web Design
Chachka Group – pg 12
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By Tom Hamilton, CPP, CPC
PRSRT STD U.S. Postage
PAID
Mentor, OH Permit No. 2
hen it comes to hiring practices by small shredding companies, the best advice to follow is “better safe than sorry.” By simply conducting two often overlooked pre-employment screening checks on potential hires, a company could save thousands upon thousands of dollars — and possibly even save the business. With more people than ever seeking employment today, the workforce has become more unstable than ever. These changes in the labor market have brought hiring practices to the forefront of many in the legal community. In today’s litigious environment, lawsuits are commonplace. Fortunately, most of us are not familiar with the legal term “negligent hiring practices” because most companies conduct at least some background checks when hiring new employees. Many human resource managers are doing all they can in the hiring process to protect their company, their employees and their customers. Their goal: to reduce their company’s exposure to liability. Most of these businesses conduct a formalized due diligence when hiring new employees, which often includes a preemployment criminal background check and verification of previous employment using third-party companies that specialize in such services. A criminal background check generally includes every county, state and federal jurisdiction of residence over the past
seven years; if a crime was committed outside the candidate’s county or state of residence, it is possible that a criminal conviction may not be discovered. It is also routine to do preemployment drug screening. Once these checks are completed, most companies are comfortable that they have taken the necessary steps to ensure they are hiring a good person. Once hired, a company can also utilize the federal government’s free E-Verify program, an Internet-based system that compares information from an employee’s Form I-9, Employment Eligibility Verification,
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Inside This Issue 4
Green Fence Improved Quality, Traders Say
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Info Security Spending to Reach $71.1 Billion in 2014, Analyst Says
10 NAID Partners With Group to Form Japanese Chapter 13 Toughest on HIPPA Enforcement: Rhode Island, Alaska 14 Breach Notification: States Enact Their Own Versions
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. Each certified facility aims to protect a customer’s brand by: •
Requiring proper data destruction to wipe out confidential information
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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
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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. www.certifymerecycling.org/partner To find an R2/RIOS™-certified partner, visit: certifymerecycling.org/partner. www.certifymerecycling.org/partner
Security Shredding & Storage News
Reduce Pre-hire Exposure to Liability
Continued from page 1
PUBLICATION STAFF Publisher / Editor Rick Downing Contributing Editors / Writers Ken McEntee Tom Hamilton, CPP, CPC 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.securityshreddingnews.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 2014 by Downing & Associates. Printed on Post-Consumer Recycled Paper
to data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility. The program determines whether the i n fo r m a t i o n m a t c h e s government records and whether the new hire is authorized to work in the United States. More than 500,000 employers of all sizes have used the program, according federal officials. Small shredding companies, however, may be more lax in their hiring procedures, simply because they want to avoid the expense, or possibly because they face an unexpected personnel shortage and need to quickly hire someone. Although most companies attempt to adhere to a specified hiring procedure, one area often overlooked is verifying that any person being considered is, in fact, the person they say they are. A Social Security verification check conducted by a third-party company should be sufficient. Companies could reduce their exposure to liability by taking one other overlooked additional step — a sex offender check — in the hiring process. This inexpensive check has the potential of saving a company from huge liability exposure and perhaps some ugly publicity. That liability exposure usually comes from lawsuits filed for negligent hiring practices or gross negligent hiring practices. The two legal terms, “negligence” and “gross negligence” can significantly effect the outcome of a lawsuit and can result in devastating publicity associated with a case.
Here are two scenarios.
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cenario number one: An employee is hired who, unknown to you, has a criminal record for sexual assault, perhaps 10 or more years ago. The individual is sent out to service shredding customers and will have regular contact with one or more female employees at customer locations. One day the individual sexually assaults a female employee of one of your customers. In addition to criminal charges being filed against the employee, a civil lawsuit could be filed against you and your company for negligent hiring practices. During the pre-trial discovery phase, the plaintiff’s attorney learns that a full criminal records check including a sex offender check was not conducted on the employee. As a result, you could be guilty of negligent hiring practices. If this situation came to the
attention of local media, it would undoubtedly result in bad publicity for your company. Had a sex offense check been conducted and discovered that the person had a history of the offense, you would have had two choices: not hire him for a legitimate reason or hire him and place him in a position that did not require him to come in contact with female employees of your customers and your staff.
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cenario number two:
The same scenario as above, except a sex offender check was conducted and it found that the person had been convicted of sexual assault 15 years ago. He served five years in prison, and for the past 10 years had been a fairly good citizen with a fairly clean criminal record. You decide that this person deserves a second chance and you hire him. Once on board, he proves to be a good employee so he is sent out to deal with shred customers on a daily basis. One customer he comes in contact with is an attractive female. After making a number of routine early morning stops at this customer’s location, he subsequently sexually assaults her. Once again, criminal charges are filed against the employee and your company faces a civil lawsuit for negligent hiring practices. This time, however, the civil outcome will be much different. In the pre-trial discovery phase, the plaintiff’s attorney learns that a full criminal records investigation, including a sex offender records check, was conducted. You were aware of his past criminal acts and despite that history, he was put in a position to come in contact with the female employee. In this case, you would be guilty of gross negligent hiring practices because you knew of his past conviction and knowingly placed him in a position to come in contact with the woman. If the case went to trial, a jury would likely award a much larger sum of money to the victim. This situation, however, would be so obvious that it would probably never see the inside of a courtroom. Your attorney would probably recommend a settlement to avoid further publicity. No doubt some of the details surrounding the case itself could end up in the media. As standard legal practice, a plaintiff’s attorney will subpoena your employee’s file and maybe the files of all your employees to establish a precedence on the company’s hiring procedures. Attorneys for plaintiffs love to try their cases in the media and the
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Security Shredding News. Jul-Sep 2014
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Security Shredding & Storage News
Green Fence Improved Quality, Traders Say By Ken McEntee
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hina’s Green Fence initiative to clean up imported recyclables last year resulted in necessary changes in the quality of recovered paper being packed in the U.S., according to respondents of an informal web survey conducted by The Paper Stock Report. Of almost 80 respondents, 79 percent agreed that Green Fence resulted in necessary changes to recovered paper quality. Although the majority of respondents think there is a mutual understanding between buyers and sellers about what constitutes good paper quality, optional comments on many of the questions suggest continued skepticism about the growing implementation of single-stream systems to collect residential recyclables. The anonymous survey was unscientific and was conducted to get a general feel of the market. An email sent to traders and users of recovered paper asked recipients to click to a web-based survey site. Responses were limited to one survey per computer IP address. Along with the question about Green Fence, which was in effect from February to November 2013, recipients were asked to weigh in about single stream Material Recovery Facilities (MRFs) and their use of the Scrap Paper Specifications published by the Institute of Scrap Recycling Industries. Sandy Rosen, of Great Lakes Recycling, Roseville, Mich., and president of ISRI’s Paper Stock Chapter, is now assembling a committee to review the current specifications. Here are the results of the survey: True or false: China’s Green Fence program last year resulted in necessary changes in the quality of recovered fiber being packed in the U.S. True: 79% / False: 21% Comments: “The quality has gone in the tank when it comes to Grade 7 (Regular Newspaper, Deink Quality) and news along with RMP (Residential Mixed Paper).” “It definitely cleaned up the fiber going to China. Especially Mixed.” “The fence decreased my market price I received for my product so at the expense of sounding cliché, they got what they paid for.” “The corporate single stream systems were run for throughput, not quality, and thus 30% contamination was being sent and China was its own worst enemy allowing it to happen for several years before the crackdown. Now, is single stream still the silver bullet of recycling or will it really be dual stream to control the cross contamination?” “I don’t think the changes necessary have been made.” “Many suppliers that were shipping overseas tried many locations domestically to place tons of lower quality.” “Scrap paper that processors knew was staying domestic was not cleaned up - no change.” “It’s only affect in the Upper Midwest was to slow down and stop shipments.” True or false: In general, there is reasonable agreement between suppliers and U.S. mill buyers relating to what constitutes good quality loads of old corrugated (OCC). True: 63% / False: 37% Comments: “There are no agreements.” “There always seems to be a game played by mills and paper suppliers on the
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quality of material. When supply is tight, mills loosen quality and when the supply is plentiful, the quality will tighten up. This is especially true on moisture complaints and deductions.” “As a supplier of used corrugated to a mill the only requirement specified was a minimum of 800-pound bales.” “In most cases suppliers that receive good feedback are willing to attempt to meet specifications.” “We only buy very specific loads of OCC. New suppliers can not believe how clean of OCC we purchase.” “Any packer that does not get good communication/feedback from the consuming mill is just waiting for problems and rejections.” True or false: In general, there is reasonable agreement between suppliers and U.S. mill buyers about what constitutes good quality loads of old newspaper (ONP). True: 69% / False: 31% Comments: “Quality is awful.” “Single streamers think if it’s baled it’s good.” True or false: In general, there is reasonable agreement between suppliers and U.S. mill buyers about what constitutes good quality loads of office paper. True: 72% / False: 18% Comments: “There is plenty of material which is shredded so it can be hidden in the pack of SOP (Sorted Office Paper).” “When I initially started supplying my SOP to the mill I was directed to their website as a reference as to what was expected.” True or false: In general, there is reasonable agreement between suppliers and U.S. mill buyers about what constitutes good quality loads of mixed paper. True: 59% / False: 41% Comments: “Same issue as with ONP. In fact, single stream mix is being sold as ONP in the Southwest thanks to Pratt’s not managing its quality system. Then they wonder why the mill had pump and piping wearing out because of glass contamination. ONP from single stream is really mixed paper with high level of cross contamination with trash and plastics.” “The mixed paper grade has degraded drastically. Controlling newspaper in the stream is a big concern. All mills are not the same and have different tolerances for short fiber.” “Some loads are much better than others.” What statements reflect your attitude about the quality of recovered paper from MRFs that process residential collections? MRFs cannot provide a good quality feedstock for mills: 11% Most MRFs cannot provide a quality feedstock for mills, but some do very well: 50% Most MRFs can provide a quality feedstock for mills, but there are some that cannot. 39% The quality of feedstock coming out of MRFs is adequate for use in mills. 0%
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Security Shredding & Storage News Continued from previous page Comments: “With the throughput that is required to be profitable, there is no way a majority of MRFs can run slow enough to provide a quality pack of recovered paper for mills in the U.S. The cleaning systems at most mills cannot clean up the material from a single stream system.” “Most don’t want the additional cost with the additional logistics in exchange for the scant return on investment. Same problem that plagued this market from day one.” “Tough question to answer. Yes, the MRFs can supply quality fiber - they just have to slow their run rates down or expand but that didn’t happen until the Green Fence and won’t stay in place if U.S. doesn’t control itself on quality control. It is all about throughput for the big corporate MRFs and not quality since there are buyers who bastardize the system by taking trashy material and paying for it out of fear of supply lines. When a mill buys at 30+% cross contamination that means they only get 70% fiber of which may not be ONP so they get 60% of what they pay for. Ask our friends at Snowflake (Ariz. – Abitibi mill) what that did to them in the long run.” “Single stream plants have challenges. New collection systems have eliminated the curb side inspection of material before it is placed in the collection truck.” “The bigger the plant, the more tons they want to produce, the more trash there is in the paper bales. They run the machine too fast to achieve good numbers.”
EZshred Software Solutions: Easy, Intuitive and Proven Effective!
How do you use PSI-ISRI Paper Stock Specifications in your recovered paper transactions? Mark all that apply. I generally don’t use them. 16% They are expected to be strictly adhered as a basis of most sales contracts. 26% They are just a general guideline. 53% They are superseded by mills’ own specifications in sales contracts. 32% Do PSI-ISRI Scrap Paper Specifications currently reflect the realities of the recovered paper available in today’s market? Yes: 39% / No: 61% Comments: “The following grades don’t come close: RMP (Residential Mixed Paper No.1), No. 7 and No. 8 news. All other grades meet the ISRI specs. “Mostly they do.” “They do on all but ONP and Mix as stated above. Single stream ONP is now Mix, not ONP No. 8.” “With consistent enforcement by all mills domestic and foreign we can affect the quality of paper packers provide.” “Sometimes.” What comments do you have about fiber quality in today’s recovered paper market? Comments: “The above grades are horrible.” “None about quality issues, but a ton about recovery prices.” “Twenty years ago it would have all been downgraded.” “Feedback and consistency are the key to successful quality programs.” “Single stream has degraded paper quality.” “There has been a significant drop in quality as the waste haulers have grown in recycling. They have encouraged the co-mingling of products to eliminate the majority of recycling competition. This has created a pack that may be deemed “recyclable” but together a portion ends up in the landfill through the trasher at the pulper. The remaining fiber that’s recovered causes a multitude of problems on the paper machine. This has forced mills to pay less to cover these additional costs.” “The battle for fiber quality was lost years ago when the paper industry allowed the waste industry to dictate what was being packed and shipped. The mills have had to adjust to what is being packed and they have had to lower their standards in order to receive enough feedstock.” “Dishonest sellers are trying to put as much crap in the bale as they can get away with - includes paper mill sludge and plastics that look like paper.” What is your business? Choose all that apply. (Total is more than 100 percent because many respondents marked more than one category.) Mill purchasing official: 26.% Mill operations: 11% Recovered paper packer: 42% Recovered paper sales: 16% Recovered paper broker: 42% MRF: 26% Recovered paper exporter: 32% Ken McEntee is editor and publisher of The Paper Stock Report and Paper Recycling Online (www.recycle.cc), based in Strongsville, Ohio.
It’s SO EASY to use… it pays for itself! EZshred has a NEW medical waste module for document destruction companies that wish to diversify into the medical waste transportation sector. EZshred creates the manifests, tracks your medical waste inventory and saves the signed manifests, facilitating compliance with local, state and federal regulations. In addition one can scan medical waste contracts into EZshred and alert your sales force of expiring contracts. EZshred Does It All! • Maintain Customer Information • Schedule Services • Route Trucks • Invoice Customers • Generate Business Reports • Barcode Scanning/GPS • Recycling Module • Medical Waste Transportation Ask us about our Cloud and SQL options!
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Security Shredding News. Jul-Sep 2014
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Security Shredding & Storage News
Reduce Pre-hire Exposure to Liability Continued from page 3
press would have a field day with the two scenarios stated here. The end result could be devastating to you and the company that you worked hard to build: huge legal fees; loss of work and productivity for yourself and perhaps other members of your office staff and management team; and the potential for lost customers, resulting in reduced revenues. More drastic steps might have to be taken, such as changing the name of the company or selling out at a much reduced price due to the negative publicity. In both scenarios, the outcomes would not be good for anyone. You, your company and the victim would suffer greatly from such incidents that potentially could have been avoided had you spent as little as $4 to $6, the average cost for a sex offender records check. In some businesses, owners and managers may be reluctant to spend the money to do it right the first time but they will always spend the money to do it over. Doing it over, though, usually costs more than would have been spent to do it right the first time. The problem in the two scenarios is that there is no chance to do it over. It should have been done
right the first time. Both scenarios may be extreme examples, but it only takes one incident to result in serious consequences. The time required to do two extra steps in the pre-employment hiring process could
need to ask themselves if they are willing to gamble with their future. Owners of shred companies have worked hard to build their businesses. With the potential risk involved and the cost of just one misstep in the hiring process, it makes good sense to take the extra steps to reduce a company’s exposure to unnecessary liability. When hiring a new employee, the things you should consider are simple: have I done all that is necessary to protect my customers and my business, and, in doing so, am I in full compliance with all the laws and regulations governing employment practices.
“Ensuring a person’s true identity through verification of their Social Security number or other means and requesting a sex offender check could be the best money a business will ever spend.” save not only thousands of dollars, but the business as well. Business owners have an obligation to take every step necessary to protect their employees, their customers and their customers’ employees. They also have an obligation to protect the shredding business they have built. Ensuring a person’s true identity through verification of their Social Security number or other means and requesting a sex offender check could be the best money a business will ever spend. Considering how little time it takes to perform these two steps and the small cost involved, businesses
Tom Hamilton, CPP, CPC, is a senior managing consultant at Hamilton Consulting Services, Inc. in Houston, TX. Tom is routinely engaged by local, state and international companies, organizations and agencies to conduct Risk Assessments, Security Audits, Emergency Response Planning and other vital security related functions. He is also engaged as an expert witness in litigation proceedings. Tom can be reached at tomh@hamiltoncsi.com or 281-398-7774.
The General Purpose Shred Truck That Becomes A High-Security Niche Truck On Demand! (336) 285-0021
www.vecoplanllc.com vecoplanllc.com Info Request #116
6 Security Shredding News. Jul-Sep 2014
In the News Info Security Spending to Reach $71.1 Billion in 2014, Analyst Says
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tamford, CT – Data security spending will increase dramatically this year, driven by constant threats, stronger regulations, and mobile and cloud computing, an Information-Management.com article reports. In the Gartner Group report, “Forecast: Information Security, Worldwide, 2012-2018, 2Q14 Update,” analysts predict a near eight percent growth spurt in the information security market on top of 2013 gains. The forecast is based on the patterns in information technology and new business scenarios. As threat awareness increases, the analysts say, data loss prevention expenditures are expected to grow another 8 percent in 2015, to reach $76.9 billion. The demand for heightened security is being propelled by the convergence of mobile platforms, along with cloud-based applications and data storage, as well as the explosion of social media activity (often interacting together). The report notes that more than 30% of security controls deployed to small or midsize businesses will be cloud-based by 2015. Introductions of new security technology and services will pick up significantly through 2016. Meanwhile, the adoption of anti-virus software for smartphones and other mobile devices appears to be lagging; however, the analysts say this is expected to change over the next several years. “This Nexus of Forces is impacting security in terms of new vulnerabilities,” Gartner research director Lawrence Pingree, says. “It is also creating new opportunities to improve effectiveness, particularly as a result of better understanding security threats by using contextual information and other security intelligence.” Mr. Pingree says that the bigger trend that emerged in 2013 was the democratization of security threats, driven by the easy availability of malicious software (malware) and infrastructure (via the underground economy) that can be used to launch advanced targeted attacks. “This has led to increased awareness among organizations that would have traditionally treated security as an IT function and a cost center,” he adds. The Gartner forecast is based on key trends, including: • Constant influx of new security threats • Growth of cloud-based enterprise resource and management solutions and capabilities • Increased regulatory pressure in Western Europe and Asia/Pacific • Greater availability of infrastructure protection products offered as suites • Proliferation of security services firms that specialize in data protection, security risk management and security infrastructure management For more information, “Forecast Overview: Information Security, Worldwide, 2014 Update” is available at http://www.gartner.com/doc/2780717.
www.keithwalkingfloor.com
Info Request #117
Community Health Systems Breach Involves 4.5 Million Patient Records
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ranklin, TN – The vulnerability of hospital databases was brought into sharp focus earlier this year when Community Health Systems (CHS) experienced the second-largest HIPAA breach ever, according to BizJournals.com and Gizmodo.com articles. The CHS cyber-attack involved records of approximately 4.5 million patients, according to The Office of Civil Rights (OCR) database. The breach actually consists of two incidences, one in April and the other in June. The attacker, identified as a Chinese group, found its way into databases containing personal information, including names, birth dates, addresses and social security numbers. The largest breach occurred in 2011 affected 4.9 million people. That breach, which took place at a U.S. Army health care provider in Falls Church, VA, involved the loss of back-up tapes containing patient addresses, phone numbers, Social Security numbers and clinical data from military beneficiaries’ electronic health records, Healthcare IT News reported. A class-action lawsuit was filed, seeking $4.9 billion in damages. CHS reported in its OCR breach announcement that the information accessed in the April and June attacks “did not include patient credit card, medical or clinical information” but is considered protected under HIPAA because it “includes patient names, addresses, birth dates, telephone numbers and social security numbers.” Florida Attorney General Pam Bondi has confirmed that 405,000 Floridians were affected by the security breach, according to the Orlando Sentinel.
Collecting Sorting Recycling Phone:262.882.1227 Fax: 262.882.3389 www.bomaccarts.com Info Request #133
Security Shredding News. Jul-Sep 2014
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Online Registration is Now Open
MW SS| 2014
CONFERENCE
2014 Security Shredding & Medical Waste Conference Atlanta, GA • November 18-20, 2014 Cobb Galleria Centre
We’ll Show You How to Generate New Revenue and Increase Profitability Building on 2013’s successful launch, Security Shredding & Medical Waste 2014 will feature equipment and product companies that supply to both the document shredding and medical/pharmaceutical waste industries. This event will include an exceptional lineup of educational sessions designed to give you the insight and tools that you need to generate new revenue and increase profitability.
For more information about the event, contact Eric Skates, Conference Marketing Manager, at 678-822-9812 or email eric@semcoproductions.com.
Exhibit Space is Still Available: Today’s Challenges, Tomorrow’s Customers! Where do medical waste, e-scrap and security shredding companies go to learn how to overcome the challenges of a crucial and highly regulated marketplace? The Security Shredding & Medical Waste Conference where they experience a comprehensive conference program, countless networking opportunities and a show floor featuring the latest solutions to help drive growth in their business. Be part of the solution! Book your exhibit space today and gain access to this important gathering of industry professionals. For more information about exhibiting, contact Tim Fearney, Show Director, at 678-822-9804 or email tim@semcoproductions.com. Sponsoring Publications
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Come to the SS/MW Conference for Practical Solutions for Better, More Profitable Business We dnes da y, Nove m b e r 19, 201 4 8:30 – 9:30 AM Keynote: Failsafe Strategies for Minimizing Service Provider and Client Regulatory Risks Bob Johnson, CEO/Founder, NAID
9:30 – 10:30 AM Session 1A: Medical Waste Opportunities and Issues in the 21st Century. The Growth of Pharmaceutical Waste and It’s Impact on HIPAA Bob Spurgin, President, Spurgin & Associates This presentation will give an overview of the medical waste industry, trends and opportunities including pharmaceutical waste.
11:30 AM – 12:30 PM Session 2A: Hazardous Communications Kandy M. Boyer-Miller, President, Sioux Services, LLC Knowledge of hazardous materials is key to preventing over exposures, work-related illnesses, and chemical accidents. The HazCom Program provides you with the necessary information and resources needed to ensure you are aware of the hazards associated with hazardous materials located and/or used within the work place. All students attending this presentation at the conference will receive a certificate of completion.
3:00 – 4:00 PM Session 3A: The Market for Shredded/ Sorted Office Papers Bill Moore, President, Moore & Associates The following areas of interest will be covered in this presentation: • Worldwide supply and demand of printing and writing papers. •
• • •
The declining use of printing and writing papers by the world’s developed economies producing constraints on the supply of recovered chemical fibers for deinking. Contaminant issues in the recovered office papers. The drivers of the SOP market and pricing. An outlook of on future pricing of SOP.
4:00 – 5:00 PM Session 4A: Mercury Spill Control Procedures Mark A. Ceasar, Director of Business Development, SorbTech Manufacturing, Inc. Mercury is a known neurotoxin that is extremely toxic even in small
causing developmental delays, motor and brain problems like those associated with autism. Mercury’s hidden danger also lies in when at room temperature, when exposed, it vaporizes readily. Once it has become an aerosol, it is absorbed into the lungs and spreads throughout the body. Chronic mercury poisoning is more common due to long term exposure by inhalation of dust or vapors, and knowledge to prevent such incidents is vital in mercury collection and clean up.
Thur sd ay, Novem b e r 20, 201 4: 8:30 – 9:30 AM Session 1B: Managing Risk in a PostHIPAA World Jim Booth, MSM, CAE, Principal Consultant Brightstone Consulting Services HIPAA and other related information management rules and regulations have created an environment loaded with potential risk. This presentation discusses risks created through regulatory requirements and various mitigation strategies to lower risk.
9:30 – 10:30 AM Session 2B: Recycling in Healthcare Sheri A. Mitchell, CEO of One Sustainable Method Recycling, LLC Discussion of patient specialty waste opportunities, understanding healthcare and how they manage waste, what is on the horizon for healthcare waste management practices.
10:30 – 11:30 AM Session 3B: Background Investigations: Top 10 Background Check Mistakes and Employer Best Practices James Sweeney, Inquirehire, Inc. In this session attendees will learn the ten most common mistakes employers make when conducting a pre-employment background check. Employers making these mistakes subject their organization to the risk of poor hiring decisions, higher turnover, and in extreme cases, litigation. Specific areas covered include: • Criminal Record Checks • Employment Verification • Education Verification • •
EEOC/Civil Rights Act Considerations Credit Checks and Regulatory Restrictions
amounts. It directly affects the central nervous and renal systems,
WWW.SSMWEXPO.COM www.ssmwexpo.com Security Shredding News. Jul-Sep 2014
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In the News NAID Partners With Group to Form Japanese Chapter
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ken@recycle.cc
www.recycle.cc
he National Association for Information Destruction (NAID) recently announced a partnership with RDV Systems of Miyagi, Japan to form the organization’s chapter in that country. “We are very happy to have this formal relationship with NAID,” said Toshiharu Matsumoto, Chairman of RDV Systems. “Companies providing data destruction services in Japan, as well as their customers, will benefit greatly the creation of a strong NAID chapter here.” As a result of the partnership, the 25 members of RDV, a Japanese consortium of secure data destruction services, will join the more than 1,900 NAID member locations operating globally. With RDV forming the core of NAID-Japan, the next steps include expanding membership there, adding both hard copy destruction services and qualified IT asset disposal services. In addition, NAID-Japan will work diligently to promote the adoption of NAID certification by members and their customers. “We fully expect NAID certification to attain the same popularity in Asia as it has elsewhere,” said NAID CEO Bob Johnson. “Data protection, regulatory compliance and vendor qualifications are of growing importance everywhere.”
www.shred-tech.com
Info Request #157
10 Security Shredding News. Jul-Sep 2014
Avis Industrial Corporation Acquires IPS Balers from CP Manufacturing Avis and CP Group form strategic international distributorship
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vis Industrial Corporation, a privately-held company with ten subsidiaries throughout the United States, Canada and Mexico, announces the acquisition of IPS Balers, Inc. in Baxley, Georgia. IPS Balers, Inc. is a manufacturer of ferrous, non-ferrous, plastics, and mixed fiber balers. IPS has been providing balers and conveyors to the recycling industry for nearly two decades. Since 2008, IPS was a part of the CP Group of Companies, an international manufacturer of material recovery facilities and equipment including disc screens, trommels, optical sorters and other material separation and recovery equipment. With this acquisition, IPS becomes the third baler company in the Avis Industrial holdings and joins The American Baler Co. and The Harris Waste Management Group, Inc. Avis subject companies manufacture and sell shears, shredders, and compactors among other products in the recycling industry. In conjunction with this sale, Avis Industrial is pleased to announce the naming of CP as a strategic international distributor, authorizing CP to sell all of the Avis lines of balers.
In the News Europe Recycles Two Tons of Paper Every Second
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russels, Belgium – An article on RecyclingInternational.com reports that recycling in European Union countries is running close to 72 percent. According to a news release by the European Recovered Paper Council (ERPC), the overall rate of paper recycling in the EU has increased 45 percent (18 million tons) since 1998. The European paper recycling rate is starting to level out because collected volumes are changing along with paper consumption patterns. For example, the supply of newsprint, once a recycling mainstay, is declining sharply as newspaper consumption goes down. This, says ERPC, will significantly affect overall paper recycling levels. On the other side of the coin, tissue and sanitary paper consumption is increasing. Currently these materials cannot be accepted for recycling due to hygiene reasons. Overall, 21 percent of paper consumption is not recyclable or collectable, according to ERPC data. The large majority of the 11 European countries whose recycling rates have remained under 60 percent reported improved performance for this year. But thirteen European countries have already exceeded the targeted 70 percent recycling rate. Paper fiber is now recycled an average of 3.5 times in Europe, far exceeding the world-wide average of 2.4. “Making recycling easy and simple year after year requires a huge effort by the paper value chain, and we are pleased to report the positive results”, says ERPC chairwoman Beatrice Klose. “Despite challenging circumstances, paper recycling has continued to perform consistently well,” she concludes. Secure access to raw materials has become an increasingly strategic economic issue in Europe. Paper recycling is truly an industry “made in Europe,” Klose remarked. The European Recovered Paper Council (ERPC) was set up for the launch of the First European Declaration on Paper Recovery in November 2000 for the purpose of monitoring progress made towards meeting the recycling targets set out in the European Declaration. ERPC functions as a coordinating and communications center for its signatories and supporters. ERPC signatories include makers of food and beverage containers, stationery, tissue, cardboard and other paper manufacturers and recyclers. Paper Recycling in the EU: • 90% of newspapers are printed on recycled paper • 90% of corrugated boxes are made of recycled fiber • 72% of consumed paper is sent for recycling • 54% of the fibers used in new paper and board are sourced from recovered paper
tlee@transleaseinc.com
www.transleaseinc.com
Info Request #160
E-Waste Recycling Firm Expands in NC
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ernley, NV – The fast-growing American electronics recycler, Zloop, Inc., has received the initial approval to move forth with a new facility in Nevada, according to an article on RGJ.com. Zloop has applied for state economic development funds and approximately $315,945 in tax abatement for capital equipment purchases; sales and use tax deferral on capital equipment purchases that would be paid back over first five years of operation; personal property tax abatement estimated to be $207,747; modified business tax abatement estimated to be $54,126; and recycling real property tax abatement up to 10 percent for as long as 10 years. To qualify for the state funds, businesses must meet certain criteria, such as number of employees, average employee salaries and minimum capital equipment investment. The company’s expansion to Nevada would include a capital investment of more than $12.1 million with their operations. At least 93 permanent jobs paying an average hourly wage of $18.96 and offering a generous benefits package would be created, according to a Northern Nevada Development Authority official who made a presentation about Zloop to county commissioners in early July. Zloop plans an estimated 10-year total economic impact of more than $120 million, he said. Based in North Carolina, the two-year-old company currently has 20 computer and electronics recycling centers and authorized drop-off locations nationwide, including the planned Fernley site.
www.jakeconnorandcrew.com
Info Request #105
Security Shredding News. Jul-Sep 2014 11
In the News Entertaining Video Captures the Beauty of Paper Recycling
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ew York, NY – The New York Sanitation Department is scoring a hit with a uniquely entertaining three-and-a-half minute video on its paper recycling operation, a Lockerdome.com article reports. Titled, “Paper’s Passage: From Waste to Product,” the captivating time-lapse video shows all the steps involved - from waste pick up to recycled product - and lends a glamorous look to the gritty work of paper recycling. Michael Anton, the city’s Department of Sanitation director of photography edited nearly 6000 images together and added a Duke Ellington soundtrack. The video was then posted on the Sanitation Department’s YouTube channel and quickly became popular. You can view the video at: https://www.youtube.com/watch?v=zM9Gt1zluik.
Tampa Electronics Recycler May Shut Down
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www.chachkagroup.com chachka@chachkagroup.com
ampa, FL – Creative Recycling Systems, an electronic equipment recycling operation, is closing its Tampa facilities, according to articles on TampaBay. com and BizJournals.com/TampaBay/Blog. The financially and legally troubled company had filed a WARN layoff notice with the Florida Department of Economic Opportunity in July. In a letter to state officials, Creative Recycling president Richard Cochrane blamed the decision to lay off 74 employees on “unforeseen business circumstances.” Cochrane told officials that the company was unable to secure additional financing to repay mounting debt and would have to be sold. The company’s creditor, Regions Bank, has filed a motion for receivership. Regions also has brought an $18 million lawsuit against Creative Recycling. “Short of another group or corporation coming in to buy them, bankruptcy looks increasingly likely,” one observer told BizJournals.com. “Whenever this kind of debt starts to mount and the judgments start coming, it quickly becomes unsustainable.” According to its website, Creative Recycling has earned awards for its recycling efforts and has diverted more than 6.5 tons of electronics from landfills over the past year.
Save the Date! SM
SM
Shred School is making five more stops in 2014. You will learn about legislation, sales best practices, marketing and social media strategies, NAID resources, and much more at this two-day industry workshop.
Nov. 5-6
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Aug. 27-28
Los Angeles, CA
Oct. 8-9
Phoenix, AZ
Shred your competition by registering for a Shred School workshop today!
www.shredschool.com
12 Security Shredding News. Jul-Sep 2014
SM
Sept. 17-18 Nashville, TN
Aug. 27-28 Sept. 17-18 Oct. 8-9 Nov. 5-6 Nov. 19-20
Los Angeles, CA Nashville, TN Phoenix, AZ London, UK Orlando, FL
Nov. 19-20 Orlando, FL
In the News Toughest on HIPPA Enforcement: Rhode Island, Alaska
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hicago, IL – Some states are tougher on Health Insurance Portability and Accountability Act (HIPAA) compliance than others, reports an article on McKnights.com. According to data compiled by TrueVault, a California-based HIPAA-compliant application developer, patient information breaches have been on the rise for some time. But 2013 was a banner year and 2014 is shaping up to be another one. As of May, the 2014 breach complaint volume is up 45.7% year-over-year. Industry observers say remarks by officials from the Department of Health and Human Services indicate an upward trend for HHS audits. What’s more, they expect to see an increase in audits resulting in requiring corrective action plans (which typically include implementing training and risk management measures). Partly, the trend is one impact of the final Omnibus Rule, which covers electronic healthcare records and strengthens patient rights. Under the Omnibus Rule, Health Information Technology for Economic and Clinical Health (HITECH) Breach Notification requirements are clarified. This has added a host of compliance details, such as when unsecured health information must be reported to HHS. The Omnibus Rule has extended HIPAA compliance to business associates of healthcare companies, adding another phalanx of compliance investigations. The Omnibus Rule fines for noncompliance are based on the level of negligence, with a maximum penalty of $1.5 million per violation. Yet, the state governance level is where the severity of penalties and corrective action requirements differ. For example, between 2003 and 2013, Rhode Island authorities have required corrective action plans in more than 40 percent of the cases, according to TrueVault’s data. Alaska, Washington, Oregon, Idaho, Wyoming and New Hampshire are listed as top HIPAA enforcers, also. In those states, 30 to 40 percent of the violators have been required to file plans and follow through on corrective action. States with the lowest enforcement results were Iowa, Nebraska and Kansas, where less than 20 percent of violations resulted in corrective action. Between mid-May and mid-June of this year, health data breaches involving more than 500 patients rose to 1026 from 992 as OCR posted 34 new incidents affecting more than 227,496 patients. The figures are reported in the latest analysis by MelaMedia’s Health Information Privacy/Security Alert service, which also states that 31,650,607 patients have been affected overall since OCR started publishing data. Theft was the leading cause of the reported breaches, accounting for a total of 476 cases, according to MelaMedia’s report. Business associates may have been involved in as many as 297 incidents. However, MelaMedia reports that number is unverified because in 24 instances the OCR statistics do not indicate whether a business associate was involved. The states with most breaches were: California (57), Texas (41), New York (30), Florida (23), and Illinois (23). The states in which the most people were affected by breaches were: Virginia (4,919,466), California (3,668,127), Florida (2,617,544) and New York (2,350,658).
www.alpineshredders.com Info Request #101
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Security Shredding News. Jul-Sep 2014 13
In the News NAID Adds Regulatory Weight to Its Popular Certification Program
Breach Notification: States Enact Their Own Versions
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he National Association for Information Destruction (NAID), the nonprofit association for the secure destruction industry, has implemented modifications to its security certification program to align it with current data protection regulations. More than 1,000 NAID certified secure data destruction operations will be affected by the changes, including those providing physical destruction and electronic media sanitization. The most notable modifications include a mechanism to provide the NAID certification audit report to clients and an additional measure to verify that employee training appropriately addresses operational vulnerabilities as well as regulatory requirements. “New data protection regulations require data-related service providers to conduct risk assessments and train their employees to address identified vulnerabilities,” said NAID CEO Bob Johnson. “These changes allow customers using a NAID certified secure destruction service to seamlessly ensure their service providers fulfill those requirements.” The program is designed to provide the audit report directly to the client but only after service provider authorization. This change augments the association’s Certification Notification Program launched last year, whereby anyone can request electronic notification of any change in a service provider’s NAID certification status.
ashington, D.C. – Despite stepped up Health Insurance Portability and Accountability Act (HIPAA) enforcement, breach notification requirements are under state jurisdiction, and each state has its own rules, according to an article on InformationWeek.com. California now has a five-day breach reporting requirement for in-state entities. Meanwhile, Texas, Wisconsin and Massachusetts all have enacted legislation covering patient information breaches. The laws cover both healthcare entities and their business associates. The Florida Information Protection Act (FIPA) became effective this past July. FIPA is not separate from HIPAA, which means healthcare organizations - and business associates (BAs) - must meet two separate breach standards with two distinct timelines. In Florida, all breaches are subject to the same notification schedule, regardless of size. What differs from the federal rules is the notification process. Under FIPA, breaches involving fewer than 500 records require only those individuals affected to be notified. For breaches of more than 500 records, the individuals involved, as well as the State Attorney General (SAG) must be contacted. For breaches affecting more than 1,000 individuals, the entity must notify all credit agencies in addition to the SAG and individuals involved. FIPA stipulates that civil monetary penalties (CMPs) will be assessed daily, then weekly, with an annual limit of $500,000.
Product/Equipment Profiles A Powerful Solution for Hard Drive Destruction
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D-Link Expands IP Camera Line with New Color Night Vision and Pan/Tilt Dome Cameras
llegheny Shredders is pleased to announce a powerful, reliable solution to completely eliminate all of those unwanted hard drives, cell phones, and other electronic storage devices. The new Allegheny 5HD3 Hard Drive/E-Scrap Shredder, built (of course) with Allegheny’s proven technology, is powered by a 3 Hp motor and high-torque drive train. As compact and rugged as it is affordable, this powerhouse shredder can irretrievably destroy 10 to 12 hard drives per minute— that’s up to 600 hard drives per hour! Allegheny’s 5HD3 Hard Drive/ E-Scrap Shredder is ideal for secure destruction service providers, Records & Information Management (RIM) centers, and e-scrap recyclers. Features of the Allegheny 5HD3 Hard Drive/E-Scrap Shredder include a single-phase or three phase power supply, a gravity-feed input chute, and aggressive hooked cutters made from heat-treated tool steel. This shredder is compact, reliable, and extremely rugged—offering impressive, long-lasting performance with minimal noise and vibration. The 5HD3 shredder can be installed on a truck for mobile on-site destruction of hard drives, PDAs, and other data storage devices. Higher capacity Hard Drive/E-Scrap Shredders are also available. By adding an Allegheny 5HD3 Hard Drive/E-Scrap Shredder, your company can add another service to meet a growing customer demand— while increasing your profits!
-Link recently introduced two new IP cameras – a two megapixel Full HD Indoor Pan/Tilt Dome Camera (DCS5615) and a one megapixel HD Outdoor Dome Camera with Color Night Vision (DCS-6315), both delivering high definition resolution and a full suite of image and management features designed to meet a range of customer surveillance needs. Boasting 1920 x 1080 resolution, the DCS5615 features a motorized pan/tilt mechanism and wide angle lens within a compact indoor dome. Well suited for small business applications where remote viewing requires the ability to pan and tilt the camera, the DCS-5615 is an attractively priced solution in a compact form factor that blends well into any indoor environment. An integrated microphone allows users to optionally listen and record audio in addition to video1. The DCS-6315 rugged outdoor network camera offers 1280 x 720 resolution with enhanced imaging sensitivity, allowing users to see greater detail in low light while remaining in color. For very low light or completely dark environments, the DCS-6315 can operate in black and white mode and illuminate the scene with its built-in infrared LED illuminators. For added flexibility, both cameras include an integrated microSD card slot for local “in camera” recording of event-triggered video clips and snapshots for later review using a web browser.
For more information on Allegheny Shredders’ full line of 100% American-made equipment, contact Allegheny Shredders at 800-245-2497 or visit www.alleghenyshredders.com.
For more information visit www.dlink.com, or connect with D-Link on LinkedIn (http://www.linkedin.com/company/d-link) and Spiceworks (http://community.spiceworks.com/networking/d-link).
14 Security Shredding News. Jul-Sep 2014
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In the News Pratt Industries Moves forward with Paper Recycling
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ary, IN – The Lake County Board of Zoning Appeals has granted Pratt Industries a special use permit for storing bales of paper at a warehouse here, the PostTribSunTimes.com reports. Pratt plans to lease an 110,000-square-foot warehouse bay in Gary to hold bales of paper materials until they can be transported to the company’s Valparaiso paper mill for recycling. The bales will consist of books, corrugated boxes, and other paper materials. A company official told reporters that the fiber bailing operation should require about 10 skilled labor jobs, such as forklift operators. Pratt’s $260 million paper recycling plant is now under construction Valparaiso. The facility, which is slated to open in 2015, is expected to create about 100 new jobs. According to the Pratt Industries website, the plant is designed to be “the world’s most technologically-advanced and environmentally friendly recycling mill.” According to company Chairman, Anthony Pratt, “At capacity the mill will save the equivalent of some 20,000 trees and divert up to 3500 cubic yards of waste from landfills every day. That’s enough trees to cover almost 15 football fields and enough waste to fill 90 garbage trucks every 24 hours.” “That’s important not only for our environment but also for our customers who realize the importance of sustainable, lightweight packaging.” Va l p a r a i s o M a y o r J o n C o s t a s t h i n k s the 250,000-square-foot mill is “the single largest investment in the history of the city.” The company is awaiting final approval from the Gary City Council in early August.
Atlas Paper Buys Accurate Paper Recycling
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ustin, TX – Miami-based Atlas Paper Mills, LLC purchased Accurate Paper Recycling, Inc., according to an article on Lesprom.com. Accurate Paper is the largest independent commercial recycling facility in central Florida. Atlas, which is owned by Peak Rock Capital, an Austin-based private equity firm, manufactures tissue products. Jim Brown, CEO of Atlas Paper, said, “Accurate Paper has been a great strategic partner and supplier to our business for many years. We believe that by bringing the Accurate Paper business into the Atlas Paper family, we will be well-situated to further expand our growth and continue to provide high quality recycled tissue products to our customers.” Peter Leibman, Managing Director of Peak Rock Capital, added that he believes combining Atlas Paper’s paper-making capabilities with Accurate Paper’s supply will greatly benefit customers. Atlas supplies private label and branded bath tissue, towels and facial tissue to a diversified mix of customers in the away-from-home and value retail channels. The company provides bales of assorted recovered paper grades to blue-chip paper making facilities located throughout the Southeast.
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.
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solutions@alleghenyshredders.com
Info Request #106
Security Shredding News. Jul-Sep 2014 15
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