Sen. Laura M. Murphy
Filed: 11/15/2023
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1 | AMENDMENT TO SENATE BILL 85 | ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 85 by replacing | ||||||
3 | everything after the enacting clause with the following: | ||||||
4 | "Section 1. Short title. This Act may be cited as the State | ||||||
5 | Beverage Container Recycling Refunds Act. | ||||||
6 | Section 5. Definitions. In this Act: | ||||||
7 | "Agency" means the Environmental Protection Agency. | ||||||
8 | "Beverage" means any drinkable liquid intended for human | ||||||
9 | oral consumption. "Beverage" does not include: | ||||||
10 | (1) a drug regulated under the Federal Food, Drug, and | ||||||
11 | Cosmetic Act (21 U.S.C. 301 et seq.); | ||||||
12 | (2) 100% fluid cow milk; | ||||||
13 | (3) infant formula; or | ||||||
14 | (4) a meal replacement liquid. | ||||||
15 | "Beverage container" means any prepackaged container for | ||||||
16 | beverages. |
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1 | "Beverage container processing mechanism" means any manual | ||||||
2 | or technological means by which empty beverage containers are | ||||||
3 | properly identified and processed. | ||||||
4 | "Beverage producer" means a person who bottles, cans, or | ||||||
5 | otherwise fills beverage containers to sell to distributors, | ||||||
6 | importers, or retailers. | ||||||
7 | "Consumer" means a person who purchases a beverage | ||||||
8 | container in the State for use or consumption. | ||||||
9 | "Conventional beverage container" means a beverage | ||||||
10 | container: | ||||||
11 | (1) made of 90% or more glass, polyethylene | ||||||
12 | terephthalate (PET), high-density polyethylene (HDPE) | ||||||
13 | plastic, or aluminum; | ||||||
14 | (2) designed to be used once before being recycled or | ||||||
15 | designed to be reused for multiple cycles before being | ||||||
16 | recycled; and | ||||||
17 | (3) with a volume of no more than one gallon. | ||||||
18 | "Difficult-to-recycle beverage container" means a beverage | ||||||
19 | container that is not included in the definition of | ||||||
20 | conventional beverage container, such as cartons and pouches. | ||||||
21 | "Distributor" means a person, including, but not limited | ||||||
22 | to, a beverage producer, who engages in the sale of beverage | ||||||
23 | containers to a retailer in the State. | ||||||
24 | "Drop-off facility" means a specific area where | ||||||
25 | individuals may bring household recyclable materials to be | ||||||
26 | sorted into material-specific receptacles and is (i) located |
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1 | in the State or (ii) located outside the State and receives | ||||||
2 | more than half of the material it collects from State | ||||||
3 | residents. | ||||||
4 | "Importer" means a retailer or beverage producer who | ||||||
5 | directly imports beverage containers into the State. | ||||||
6 | "Line defect" means a beverage container that becomes | ||||||
7 | defective or damaged during manufacturing, is not meant for | ||||||
8 | sale, and is not eligible for redemption. | ||||||
9 | "Material recovery facility" means a facility that | ||||||
10 | receives, separates, and sells or otherwise distributes | ||||||
11 | postconsumer materials for recycling and is (i) located in the | ||||||
12 | State or (ii) located outside the State and receives more than | ||||||
13 | half of the material it collects from State residents. | ||||||
14 | "Member" means a distributor or importer who has joined | ||||||
15 | the Organization and paid all applicable fees. | ||||||
16 | "Nonprofit organization" means an organization established | ||||||
17 | and operated as a nonprofit organization under Section | ||||||
18 | 501(c)(3) of the Internal Revenue Code of 1986. | ||||||
19 | "Organization" means the Distributor and Importer | ||||||
20 | Responsibility Organization established under Section 50. | ||||||
21 | "Recycle" means the series of activities by which a | ||||||
22 | beverage container is: | ||||||
23 | (1) collected and processed; | ||||||
24 | (2) converted into raw material; and | ||||||
25 | (3) used in the production of a new product, including | ||||||
26 | the original product. |
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1 | "Recycle" does not include: | ||||||
2 | (1) the use of material to produce a fuel or fuel | ||||||
3 | substitute; | ||||||
4 | (2) the use of material in a chemical conversion | ||||||
5 | process, such as solvolysis or depolymerization; | ||||||
6 | (3) the use of material in an incineration process, | ||||||
7 | such as a waste-to-energy process; or | ||||||
8 | (4) the use of material within the footprint of a | ||||||
9 | landfill. | ||||||
10 | "Recycling rate" means the percentage of eligible beverage | ||||||
11 | containers recycled out of all eligible beverage containers | ||||||
12 | sold in the State. | ||||||
13 | "Retailer" means a person or business in the State who | ||||||
14 | engages in the sale of beverage containers to a consumer. | ||||||
15 | "Store" means an individual location where a retailer | ||||||
16 | sells beverage containers. | ||||||
17 | Section 10. Beverage container recycling redemption refund | ||||||
18 | program. | ||||||
19 | (a) Except as otherwise provided in this Section, each | ||||||
20 | conventional beverage container sold or offered for sale in | ||||||
21 | the State shall have the following redemption refund value: | ||||||
22 | (1) 5 cents for a beverage container of 24 fluid | ||||||
23 | ounces or less; and | ||||||
24 | (2) 10 cents for a beverage container of more than 24 | ||||||
25 | fluid ounces. |
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1 | (b) Two years after conventional beverage containers begin | ||||||
2 | to be sold or offered for sale in the State with the refund | ||||||
3 | value in paragraph (a), every conventional beverage container | ||||||
4 | sold or offered for sale in the State shall have the following | ||||||
5 | refund value: | ||||||
6 | (1) 10 cents for a beverage container of 24 fluid | ||||||
7 | ounces or less; and | ||||||
8 | (2) 15 cents for a beverage container of more than 24 | ||||||
9 | fluid ounces. | ||||||
10 | (c) The Agency may change each redemption refund value | ||||||
11 | under subsection (b), by rule, so long as the changed refund | ||||||
12 | value is not based on the type of postconsumer material being | ||||||
13 | recycled, not more often than: | ||||||
14 | (1) once during any 10-year period and in consultation | ||||||
15 | with the Organization; and | ||||||
16 | (2) once during any 5-year period and after receiving | ||||||
17 | a request from the Organization for a change to one or both | ||||||
18 | redemption refund amounts, if the Agency's change conforms | ||||||
19 | with the Organization's request. | ||||||
20 | (d) Prior to any change in the redemption refund value | ||||||
21 | under subsection (c), the Agency must undergo a notice and | ||||||
22 | comment review period with at least 60 days' notice to the | ||||||
23 | public. | ||||||
24 | (e) Any moneys designated for redemption refunds but that | ||||||
25 | are not claimed by consumers shall be used by the Organization | ||||||
26 | only to support its administrative costs and to perform the |
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1 | activities required under this Act. | ||||||
2 | Section 15. Material flows. | ||||||
3 | (a) When a consumer redeems a beverage container in | ||||||
4 | accordance with this Act, the Organization becomes the owner | ||||||
5 | of that beverage container and may: | ||||||
6 | (1) sell it to a buyer of its choosing after first | ||||||
7 | allowing a beverage producer or a company of its beverage | ||||||
8 | container supply chain to purchase the material at a fair | ||||||
9 | market rate; or | ||||||
10 | (2) on its own or via a third party, process the | ||||||
11 | beverage container for refill if it is reusable or have an | ||||||
12 | agreement with one or more third parties that manage | ||||||
13 | reusable beverage containers in the recycling refund | ||||||
14 | system. | ||||||
15 | (b) If a consumer chooses to put a beverage container in | ||||||
16 | its curbside recycling receptacle or a drop-off receptacle, | ||||||
17 | the operator of the material recovery facility that sorts the | ||||||
18 | beverage container or the operator of the drop-off facility | ||||||
19 | that receives the beverage container shall: | ||||||
20 | (1) offer to sell the material to the Organization, | ||||||
21 | which then may be required to pay a certain percent of the | ||||||
22 | redemption value per beverage container; | ||||||
23 | (2) permit the Organization to pick up the material | ||||||
24 | within a reasonable amount of time at the Organization's | ||||||
25 | expense; and |
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1 | (3) report to the Organization the weight in tons and | ||||||
2 | the quality of the beverage containers it is transferring | ||||||
3 | to the Organization. | ||||||
4 | Section 20. Means of redemption. | ||||||
5 | (a) At each store having a floor space that is greater than | ||||||
6 | or equal to 25,000 square feet, excluding only outdoor space, | ||||||
7 | the Organization shall, at its expense, install, operate, and | ||||||
8 | maintain: | ||||||
9 | (1) bulk bag drop-off for all redeemable beverage | ||||||
10 | containers; and | ||||||
11 | (2) one or more beverage container processing | ||||||
12 | mechanisms that allow the consumer to: | ||||||
13 | (A) redeem all redeemable beverage containers; and | ||||||
14 | (B) immediately receive the refund value. | ||||||
15 | (b) At each store having a floor space that is greater than | ||||||
16 | or equal to 25,000 square feet, excluding only outdoor space, | ||||||
17 | the Organization may, at its expense, install, operate, and | ||||||
18 | maintain additional beverage container processing mechanisms | ||||||
19 | beyond what is required in subsection (a). | ||||||
20 | (c) At each of its stores having a floor space that is | ||||||
21 | greater than or equal to 25,000 square feet, excluding only | ||||||
22 | outdoor space, the retailer shall make at least 500 square | ||||||
23 | feet and at most 1,000 square feet of space available for the | ||||||
24 | Organization to meet the requirements of subsection (a) and | ||||||
25 | the options provided in subsection (b), but the retailer shall |
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1 | decide where in each store the Organization will, on space the | ||||||
2 | retailer controls inside or outside the store, install, | ||||||
3 | operate, and maintain beverage container processing | ||||||
4 | mechanisms. | ||||||
5 | (d) At each of its stores having a floor space that is | ||||||
6 | greater than 10,000 square feet but less than or equal to | ||||||
7 | 25,000 square feet, excluding only outdoor space, the retailer | ||||||
8 | shall, upon the Organization's request, allow the Organization | ||||||
9 | to install, operate, and maintain beverage container | ||||||
10 | processing mechanisms on at least 250 square feet and at most | ||||||
11 | 500 square feet of the retailer's choosing that it controls | ||||||
12 | inside or outside the store. | ||||||
13 | (e) At each of its stores having a floor space that is | ||||||
14 | greater than 1,000 square feet but less than or equal to 10,000 | ||||||
15 | square feet, excluding only outdoor space, the retailer shall, | ||||||
16 | upon the Organization's request, allow the Organization to | ||||||
17 | install, operate, and maintain beverage container processing | ||||||
18 | mechanisms on at least 100 square feet and at most 250 square | ||||||
19 | feet of the retailer's choosing that it controls inside or | ||||||
20 | outside the store. | ||||||
21 | (f) A retailer who operates a store having a floor space | ||||||
22 | that is less than or equal to 1,000 square feet, excluding | ||||||
23 | outdoor space, has no duty under this Act to host a beverage | ||||||
24 | container processing mechanism. | ||||||
25 | (g) Notwithstanding subsections (a) through (f): | ||||||
26 | (1) the retailer may make available more than the |
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1 | required space for beverage container processing | ||||||
2 | mechanisms; | ||||||
3 | (2) the Organization may install, operate, and | ||||||
4 | maintain more beverage container processing mechanisms on | ||||||
5 | the additional space made available under paragraph (1); | ||||||
6 | and | ||||||
7 | (3) a retailer at any of its stores with more than | ||||||
8 | 1,000 square feet, upon request by the Organization | ||||||
9 | regarding a particular store of the retailer, must offer | ||||||
10 | for sale at that particular store of the retailer the | ||||||
11 | standard bags that the Organization deems necessary to | ||||||
12 | operate a bag-drop program. | ||||||
13 | (h) A retailer is exempt from the requirements of | ||||||
14 | subsections (a) through (g) at stores the retailer operates | ||||||
15 | that: | ||||||
16 | (1) primarily sell beverage containers to consumers | ||||||
17 | through stand-alone vending machines, stand-alone | ||||||
18 | refrigerator cases, or similar means; or | ||||||
19 | (2) primarily prepare food for sale. | ||||||
20 | (i) The Agency, in consultation with the Organization and | ||||||
21 | retailers, shall develop a formula to determine how to fairly | ||||||
22 | compensate annually the retailer for use of the space at each | ||||||
23 | store of the retailer that the retailer permits the | ||||||
24 | Organization to install, operate, and maintain beverage | ||||||
25 | container processing mechanisms. | ||||||
26 | (j) The Organization shall, at the request of a retailer |
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1 | that owns a store at which it is operating beverage container | ||||||
2 | processing mechanisms, provide the consumer the option to | ||||||
3 | redeem its refund value for a credit at the retailer in | ||||||
4 | addition to any incentives the retailer chooses to provide the | ||||||
5 | consumer. | ||||||
6 | (k) The Agency, in consultation with the Organization, | ||||||
7 | shall develop convenience standards that the Organization | ||||||
8 | shall follow to ensure that: | ||||||
9 | (1) one or more beverage container processing | ||||||
10 | mechanisms that allow for convenient redemption of | ||||||
11 | redeemable beverage containers is located within a | ||||||
12 | reasonable distance of each resident of the State with the | ||||||
13 | recognition that what is reasonable may depend on a | ||||||
14 | variety of factors, including population density, | ||||||
15 | proximity to public transit, and the number of retailers | ||||||
16 | in the area; and | ||||||
17 | (2) there are enough beverage container processing | ||||||
18 | mechanisms at each location the Organization operates | ||||||
19 | redemption options to enable convenient redemption of | ||||||
20 | redeemable beverage containers. | ||||||
21 | (l) The Organization may enter into an agreement to | ||||||
22 | install, operate, and maintain additional beverage container | ||||||
23 | processing mechanisms at any location that is not considered a | ||||||
24 | store under this Act in order to provide additional convenient | ||||||
25 | redemption options and to meet the performance targets | ||||||
26 | required in Section 55. |
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1 | (m) Any facility that the Organization sets up in the | ||||||
2 | State to aggregate, sort, and process the material collected | ||||||
3 | at various redemption locations under this Act may: | ||||||
4 | (1) accept, pursuant to a reasonable process the | ||||||
5 | Organization may establish, beverage containers that are | ||||||
6 | eligible for redemption and are submitted in the | ||||||
7 | Organization's standard redemption bag, as designated by | ||||||
8 | the Organization; and | ||||||
9 | (2) provide a nonprofit organization with a premium to | ||||||
10 | be determined and paid for by the Organization. | ||||||
11 | (n) The public shall have access to redeem beverage | ||||||
12 | containers in accordance with this Section for not less than | ||||||
13 | 10 hours each day: | ||||||
14 | (1) except on federal, State, or local holidays; | ||||||
15 | (2) except at a facility set up by the Organization to | ||||||
16 | aggregate, sort, and process redeemed beverage containers; | ||||||
17 | or | ||||||
18 | (3) unless restricted by the open hours of the store | ||||||
19 | in which the beverage container processing mechanism is | ||||||
20 | being operated. | ||||||
21 | (o) The Organization must provide information to the | ||||||
22 | public detailing how consumers can alert the Organization to | ||||||
23 | problems at beverage container processing mechanisms operated | ||||||
24 | by the Organization. The information shall be provided via: | ||||||
25 | (1) the Organization's website; | ||||||
26 | (2) clearly visible signage at least 5 feet by 5 feet |
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1 | at any bag-drop redemption locations the Organization | ||||||
2 | operates; and | ||||||
3 | (3) clearly visible signage at least 2 feet by 2 feet | ||||||
4 | placed on or within 5 feet of beverage container | ||||||
5 | processing mechanisms that are not bag-drop redemption | ||||||
6 | locations that the Organization operates. | ||||||
7 | (p) The Organization may establish reasonable terms and | ||||||
8 | conditions for the use of a beverage container processing | ||||||
9 | mechanism. | ||||||
10 | Section 25. Labeling requirements. | ||||||
11 | (a) A beverage producer, distributor, or importer shall | ||||||
12 | include the abbreviation "RV" on a clearly visible portion of | ||||||
13 | the top or side of each beverage container that is sold by the | ||||||
14 | beverage producer, distributor, or importer in the State. | ||||||
15 | (b) The Organization may require that any beverage | ||||||
16 | producer, distributor, or importer include, on any space that | ||||||
17 | is on the top or side of each beverage container sold in the | ||||||
18 | State, the clearly visible abbreviation of the State and | ||||||
19 | applicable redemption refund value under Section 10. | ||||||
20 | (c) A beverage producer, distributor, or importer may | ||||||
21 | include a barcode or unique code verification on a beverage | ||||||
22 | container to automatically identify it. | ||||||
23 | Section 30. Timing. | ||||||
24 | (a) By no later than 18 months after the effective date of |
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1 | this Act, conventional beverage containers that are sold in | ||||||
2 | the State must be redeemable for the applicable redemption | ||||||
3 | refund value under Section 10. | ||||||
4 | (b) The Agency may permit: | ||||||
5 | (1) up to an additional 365 days to meet the deadline | ||||||
6 | specified in subsection (a); or | ||||||
7 | (2) any delays needed to align the implementation | ||||||
8 | timing of the recycling refund system in this Act with any | ||||||
9 | broader extended producer responsibility system that has | ||||||
10 | become law in the State for packaging or printed paper | ||||||
11 | more generally. | ||||||
12 | (c) The Organization may choose at any time to make one or | ||||||
13 | more difficult-to-recycle beverage containers eligible for the | ||||||
14 | same refund value as conventional beverage containers and, | ||||||
15 | once eligible, the Organization must still comply with all the | ||||||
16 | requirements of this Act, including performance targets and | ||||||
17 | convenience standards. | ||||||
18 | (d) If the market share of a difficult-to-recycle beverage | ||||||
19 | container in any 2 full calendar years in a row grows to 5% | ||||||
20 | more than what it was over the average of 2 full calendar years | ||||||
21 | before the effective date of this Act, then the Organization | ||||||
22 | must: | ||||||
23 | (1) make that difficult-to-recycle beverage container | ||||||
24 | eligible for the same refund value as conventional | ||||||
25 | beverage containers and still comply with all the | ||||||
26 | requirements of this Act, including performance targets |
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1 | and convenience standards; or | ||||||
2 | (2) charge its members for each difficult-to-recycle | ||||||
3 | beverage container sold in the State the amount of the | ||||||
4 | refund value for an equivalent in size conventional | ||||||
5 | beverage container and use the revenue from this charge | ||||||
6 | only to support the grants permitted under this Act to | ||||||
7 | improve education, outreach, or infrastructure to enhance | ||||||
8 | the recycling or reuse of beverage containers. | ||||||
9 | Section 35. Prohibitions. | ||||||
10 | (a) No person shall distribute, import, or sell beverage | ||||||
11 | containers in or into the State except in compliance with this | ||||||
12 | Act. | ||||||
13 | (b) No person shall redeem under this Act a beverage | ||||||
14 | container that was not sold in the State to a consumer in the | ||||||
15 | State. | ||||||
16 | Section 40. Agency duties. On or before October 1 of each | ||||||
17 | year after the effective date of this Act, the Agency shall | ||||||
18 | identify and communicate to the Organization the Agency's | ||||||
19 | total estimated annual cost to implement, administer, and | ||||||
20 | enforce this Act, including the cost of adopting rules under | ||||||
21 | this Act, in the next calendar year, after: | ||||||
22 | (1) subtracting the moneys that the Agency collected | ||||||
23 | from penalties assessed under this Act, which shall be | ||||||
24 | applied toward fulfilling the Agency's responsibilities |
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1 | under this Act in the next calendar year; and | ||||||
2 | (2) adding any expenses incurred in fulfilling the | ||||||
3 | Agency's responsibilities under this Act that are not | ||||||
4 | covered by the annual cost from the previous year. | ||||||
5 | Section 45. Drop-off facilities and material recovery | ||||||
6 | facilities. | ||||||
7 | (a) Each drop-off facility or material recovery facility | ||||||
8 | may submit the following information to the Organization: | ||||||
9 | (1) the number of tons of each beverage container type | ||||||
10 | eligible for a refund that it sold or transferred out of | ||||||
11 | its facility in the last full calendar year before a | ||||||
12 | beverage container was sold with an applicable refund | ||||||
13 | value; and | ||||||
14 | (2) an estimate of the tons under paragraph (1) that | ||||||
15 | were received from sources in the State. | ||||||
16 | (b) The optional information detailed in subsection (a) | ||||||
17 | shall be submitted on or before April 1 and shall pertain only | ||||||
18 | to the previous full calendar year. | ||||||
19 | (c) By July 1 of each calendar year, starting the first | ||||||
20 | full year and ending the seventh full year after conventional | ||||||
21 | beverage containers are sold with the applicable refund value, | ||||||
22 | the Organization must make an annual payment directly to each | ||||||
23 | material recovery facility and drop-off facility operator that | ||||||
24 | submits data according to subsection (a) that: | ||||||
25 | (1) equals 5% of the scrap value of the material the |
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1 | Organization sold in the preceding calendar year; and | ||||||
2 | (2) is based on the data submitted by the material | ||||||
3 | recovery facility and drop-off facility operators under | ||||||
4 | subsection (a). | ||||||
5 | (d) The operators of material recovery facilities or | ||||||
6 | drop-off facilities shall use an industry-standard scale to | ||||||
7 | measure the weight of all beverage containers that enter the | ||||||
8 | facility. | ||||||
9 | (e) The Organization shall buy beverage containers | ||||||
10 | redeemable under this Act offered to the Organization by the | ||||||
11 | operator of a material recovery facility or drop-off facility | ||||||
12 | of beverage containers received from household collection of | ||||||
13 | recyclables and that meet the quality threshold described in | ||||||
14 | this Section. | ||||||
15 | (f) For the first 10 years after eligible beverage | ||||||
16 | containers are sold with a refund value, the Organization | ||||||
17 | shall pay material recovery facilities and drop-off facilities | ||||||
18 | 80% of the 24 fluid ounces or less refund value for each | ||||||
19 | beverage container that the material recovery facility or | ||||||
20 | drop-off facility offers to the Organization: | ||||||
21 | (1) as a bale or loose; and | ||||||
22 | (2) that meets the relevant and most recently | ||||||
23 | published Institute of Scrap Recycling Industries | ||||||
24 | specifications. | ||||||
25 | (g) Following the first 10 years after eligible beverage | ||||||
26 | containers are sold with a refund value, the Organization |
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1 | shall pay material recovery facilities and drop-off facilities | ||||||
2 | for each eligible beverage container it is offered as a bale or | ||||||
3 | loose with the following structure based on each material | ||||||
4 | type: | ||||||
5 | (1) for aluminum beverage cans, operators of material | ||||||
6 | recovery facilities and drop-off facilities receive 80% of | ||||||
7 | the 24 fluid ounces or less refund value if they meet the | ||||||
8 | relevant and most recently published Institute of Scrap | ||||||
9 | Recycling Industries specifications; | ||||||
10 | (2) for glass bottles, operators of material recovery | ||||||
11 | facilities and drop-off facilities receive: | ||||||
12 | (A) 80% of the 24 fluid ounces or less refund value | ||||||
13 | if the material recovery facility or drop-off facility | ||||||
14 | is third-party certified as generating less than 5% | ||||||
15 | nonglass residuals; and | ||||||
16 | (B) 50% of the 24 fluid ounces or less refund value | ||||||
17 | if the material recovery facility or drop-off facility | ||||||
18 | is generating 15% or less nonglass residuals; | ||||||
19 | (3) for polyethylene terephthalate (PET) bottles, | ||||||
20 | operators of material recovery facilities and drop-off | ||||||
21 | facilities receive: | ||||||
22 | (A) 80% of the 24 fluid ounces or less refund value | ||||||
23 | if they are third-party certified as meeting the | ||||||
24 | Association of Plastic Recyclers Grade B model | ||||||
25 | specification for PET bottles bales; and | ||||||
26 | (B) 50% of the 24 fluid ounces or less refund value |
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1 | if they do not meet the Grade B specification; and | ||||||
2 | (4) for high-density polyethylene (HDPE) bottles, | ||||||
3 | operators of material recovery facilities and drop-off | ||||||
4 | facilities receive 80% of the 24 fluid ounces or less | ||||||
5 | refund value if they are third-party certified as meeting | ||||||
6 | the applicable, natural or colored, Association of Plastic | ||||||
7 | Recyclers HDPE model bale specification. | ||||||
8 | (h) The Agency, in consultation with the Organization and | ||||||
9 | material recovery facilities and drop-off facilities and | ||||||
10 | associations that represent material recovery facilities and | ||||||
11 | drop-off facilities, shall develop and publish a methodology | ||||||
12 | for how to determine the average amount of redeemable beverage | ||||||
13 | containers per ton of material offered to the Organization. | ||||||
14 | (i) When the Organization pays the operators of the | ||||||
15 | material recovery facility and drop-off facility the | ||||||
16 | appropriate portion of the redemption value per beverage | ||||||
17 | container, it may do so with an assumption that the beverage | ||||||
18 | containers sold to it have a breakdown of containers that are | ||||||
19 | 24 ounces or less and more than 24 ounces equivalent to what | ||||||
20 | percentage of that container type that consumers redeemed in | ||||||
21 | the last calendar year were 24 ounces or less and more than 24 | ||||||
22 | ounces. | ||||||
23 | (j) The Organization shall become the owner of the | ||||||
24 | beverage containers for which it pays the amount under | ||||||
25 | paragraph (g) and may sell the material to the buyer of its | ||||||
26 | choosing for revenue after first allowing a beverage producer |
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1 | or a company in its beverage container supply chain to | ||||||
2 | purchase the material at a fair market rate. | ||||||
3 | (k) An operator of a material recovery facility or | ||||||
4 | drop-off facility shall pay for up to one independent audit | ||||||
5 | per calendar year on the quality and quantity of its material | ||||||
6 | upon request by the Organization and shall allow the | ||||||
7 | Organization to conduct 2 additional audits per calendar year | ||||||
8 | on the quality and quantity of its material upon request by the | ||||||
9 | Organization and at the Organization's expense. | ||||||
10 | (l) All thresholds in this Section tied to externally | ||||||
11 | referenced documents, such as the model bale specifications | ||||||
12 | from the Association of Plastic Recyclers and the Institute of | ||||||
13 | Scrap Recycling Industries, shall reflect the most current | ||||||
14 | version of the externally referenced documents, including any | ||||||
15 | updates made after the effective date of this Act. | ||||||
16 | Section 50. Distributor and Importer Responsibility | ||||||
17 | Organization. | ||||||
18 | (a) All distributors and importers shall join as members | ||||||
19 | of a Distributor and Importer Responsibility Organization. A | ||||||
20 | distributor or importer operating in violation of this | ||||||
21 | requirement is subject to penalties described in Section 85. | ||||||
22 | The Organization must be established and operated as a | ||||||
23 | nonprofit organization or a cooperative corporation. | ||||||
24 | (b) Only one Organization may operate in the State. The | ||||||
25 | Organization may decide to operate jointly with similar |
| |||||||
| |||||||
1 | organizations. The Organization shall elect a governing Board | ||||||
2 | of Directors of the Organization composed of Organization | ||||||
3 | members. The Organization shall be led by an Executive | ||||||
4 | Director elected by the Board of Directors of the | ||||||
5 | Organization. | ||||||
6 | (c) The Organization shall charge a membership fee that | ||||||
7 | funds the Organization's costs of operation to meet the | ||||||
8 | requirements of this Act minus the unclaimed redemption | ||||||
9 | refunds, which must stay with the Organization to fund its | ||||||
10 | operations to meet the requirements of this Act, or any other | ||||||
11 | revenue sources that the Organization may develop. The | ||||||
12 | Organization shall charge membership fees that vary by | ||||||
13 | material type and that reflect: | ||||||
14 | (1) the cost of collecting, transporting, sorting, and | ||||||
15 | processing each beverage container type; and | ||||||
16 | (2) the number of units of each beverage container | ||||||
17 | type that each member distributes or sells in the State. | ||||||
18 | (d) The Organization shall provide to members against the | ||||||
19 | fees charged under this Act a credit from revenue generated | ||||||
20 | from the sale of each beverage container type's scrap in an | ||||||
21 | amount based on the percentage of each beverage container type | ||||||
22 | that each member distributes or sells in the State. | ||||||
23 | (e) The Organization shall publish publicly on its | ||||||
24 | website: | ||||||
25 | (1) within 18 months after the effective date of this | ||||||
26 | Act, an initial plan for how the Organization will meet |
| |||||||
| |||||||
1 | its requirements under this Act over the next 5 years, | ||||||
2 | including the performance targets specified in Section 55; | ||||||
3 | and | ||||||
4 | (2) no later than every 5 years after publication of | ||||||
5 | the initial plan under paragraph (1), an updated plan on | ||||||
6 | how the Organization will continue to meet its | ||||||
7 | requirements under this Act, including the performance | ||||||
8 | targets specified in Section 55. | ||||||
9 | (f) The Organization shall pay: | ||||||
10 | (1) for any beverage container processing mechanism or | ||||||
11 | self-service kiosk that the Organization installs, | ||||||
12 | maintains, and operates at any location to meet or exceed: | ||||||
13 | (A) the performance targets under Section 55; or | ||||||
14 | (B) the convenience standards under subsection (k) | ||||||
15 | of Section 20; | ||||||
16 | (2) for any facilities in the State necessary to | ||||||
17 | efficiently aggregate, sort, and process the beverage | ||||||
18 | containers collected at redemption locations under this | ||||||
19 | Act; | ||||||
20 | (3) to upkeep a list and map on its website of all | ||||||
21 | redemption locations and the redemption options available | ||||||
22 | at each redemption location; | ||||||
23 | (4) by December 31 of each year, an annual installment | ||||||
24 | to the Agency according to the formula under Section 40, | ||||||
25 | but not to exceed $500,000 per year; the installment shall | ||||||
26 | fund the Agency's anticipated costs in the following year |
| |||||||
| |||||||
1 | to implement, administer, and enforce this Act, including | ||||||
2 | adopting rules under this Act; | ||||||
3 | (5) by December 31 of each year, reimbursement for | ||||||
4 | enforcement costs that may result in a total reimbursement | ||||||
5 | by the Organization to the Agency more than $500,000 per | ||||||
6 | year as long as the funded enforcement activities | ||||||
7 | identified violations of this Act and resulted in | ||||||
8 | penalties under this Act; | ||||||
9 | (6) the cost of the standard bags described under | ||||||
10 | subsection (g) of Section 20; and | ||||||
11 | (7) the material recovery facility and drop-off | ||||||
12 | facility payments under Section 45. | ||||||
13 | (g) If the standard bag the Organization sells to | ||||||
14 | consumers under subsection (g) of Section 20 is made of | ||||||
15 | plastic film, the Organization shall: | ||||||
16 | (1) ensure that the standard bag sold is composed of a | ||||||
17 | minimum of 50% recycled content; and | ||||||
18 | (2) demonstrate to the Agency that the plastic film | ||||||
19 | waste from the standard bags will be recycled in the best | ||||||
20 | commercially available manner. | ||||||
21 | (h) The Organization is not required to pay a redemption | ||||||
22 | refund under this Act for: | ||||||
23 | (1) any beverage container that visibly contains or is | ||||||
24 | visibly contaminated by a substance other than water, | ||||||
25 | residue of the beverage contained within the beverage | ||||||
26 | container as sold by a retailer to a consumer, or dust; |
| |||||||
| |||||||
1 | (2) any beverage container that is crushed, broken, or | ||||||
2 | damaged to the extent that the brand appearing on the | ||||||
3 | beverage container cannot be identified; | ||||||
4 | (3) any beverage container that the Organization has | ||||||
5 | reasonable grounds to believe was procured in another | ||||||
6 | state; or | ||||||
7 | (4) any beverage container for which the Organization | ||||||
8 | has reasonable grounds to believe a redemption refund has | ||||||
9 | already been issued under this Act or under any other | ||||||
10 | state's law, rule, or regulation. | ||||||
11 | (i) The Organization may: | ||||||
12 | (1) use, or award grants using, moneys received or | ||||||
13 | generated under this Act for: | ||||||
14 | (A) collecting litter that includes beverage | ||||||
15 | containers; and | ||||||
16 | (B) improving education, outreach, or | ||||||
17 | infrastructure to enhance the recycling or reuse of | ||||||
18 | beverage containers; | ||||||
19 | (2) use moneys received or generated under this Act to | ||||||
20 | directly, or in partnership with a nongovernmental | ||||||
21 | organization, provide services to or enhance the | ||||||
22 | redemption experience of minority or low-income consumers | ||||||
23 | who redeem a beverage container; and | ||||||
24 | (3) use moneys generated under this Act to pay members | ||||||
25 | or support the management and activities of an advisory | ||||||
26 | committee established under Section 65. |
| |||||||
| |||||||
1 | Section 55. Targets. | ||||||
2 | (a) The Organization shall meet the following redemption | ||||||
3 | targets: | ||||||
4 | (1) beginning during the second full calendar year | ||||||
5 | after eligible beverage containers are sold in the State | ||||||
6 | with the applicable redemption refund value under Section | ||||||
7 | 10, the annual redemption rate from consumers to a | ||||||
8 | beverage container processing mechanism for all redeemable | ||||||
9 | beverage containers is at least 70%; | ||||||
10 | (2) beginning with the fourth full calendar year after | ||||||
11 | all beverage containers are sold in the State with the | ||||||
12 | applicable redemption refund value under Section 10, the | ||||||
13 | annual redemption rate from consumers to a beverage | ||||||
14 | container processing mechanism for all redeemable beverage | ||||||
15 | containers is at least 75%; and | ||||||
16 | (3) beginning during the sixth full calendar year | ||||||
17 | after all beverage containers are sold in the State with | ||||||
18 | the applicable redemption refund value under Section 10, | ||||||
19 | the annual redemption rate from consumers to a beverage | ||||||
20 | container processing mechanism for all redeemable beverage | ||||||
21 | containers is at least 85%. | ||||||
22 | (b) The Organization shall meet the following recycling | ||||||
23 | rate targets that can be met through material consumers redeem | ||||||
24 | through beverage container processing mechanisms or material | ||||||
25 | the Organization receives from drop-off facilities or material |
| |||||||
| |||||||
1 | recovery facilities: | ||||||
2 | (1) beginning with the second full calendar year after | ||||||
3 | eligible beverage containers are sold in the State with | ||||||
4 | the applicable redemption refund value under Section 10, | ||||||
5 | the annual recycling rate for all redeemable beverage | ||||||
6 | containers is at least 70%; | ||||||
7 | (2) beginning with the fourth full calendar year after | ||||||
8 | eligible beverage containers are sold in the State with | ||||||
9 | the applicable redemption refund value under Section 10, | ||||||
10 | the annual recycling rate for all redeemable beverage | ||||||
11 | containers is at least 75%; and | ||||||
12 | (3) beginning with the sixth full calendar year after | ||||||
13 | all eligible beverage containers are sold in the State | ||||||
14 | with the applicable redemption refund value under Section | ||||||
15 | 10, the annual recycling rate for all redeemable beverage | ||||||
16 | containers is at least 85%. | ||||||
17 | (c) At any point that a difficult-to-recycle beverage | ||||||
18 | container is added to the system, the Agency may establish | ||||||
19 | recycling rate targets specific to the added beverage | ||||||
20 | container or beverage containers, and the added beverage | ||||||
21 | container or beverage containers may then not be considered in | ||||||
22 | satisfying the targets in subsection (b). | ||||||
23 | (d) If the Organization does not meet a performance rate | ||||||
24 | target required under subsections (a) through (c), it must | ||||||
25 | submit to the Agency a product stewardship plan no more than | ||||||
26 | 365 days after the data required under Section 60 has most |
| |||||||
| |||||||
1 | recently been published. The product stewardship plan shall | ||||||
2 | detail the reason that the performance target was not met and | ||||||
3 | any action the Organization will take to meet the performance | ||||||
4 | target. | ||||||
5 | (e) If the Organization does not meet a performance rate | ||||||
6 | target under subsections (a) through (c) in any calendar year, | ||||||
7 | the Agency shall assess a civil penalty against the | ||||||
8 | Organization for each such violation that is equal to 5 cents | ||||||
9 | for each beverage container comprising the difference between | ||||||
10 | the number of beverage containers that were redeemed or | ||||||
11 | recycled and the total number of beverage containers that, if | ||||||
12 | redeemed or recycled, would have met the applicable | ||||||
13 | performance rate target. | ||||||
14 | (f) If the Organization does not meet all redemption and | ||||||
15 | recycling rate targets under subsections (a) through (c) | ||||||
16 | within 3 years after a product stewardship plan was submitted | ||||||
17 | to the Agency under subsection (d), the Agency shall: | ||||||
18 | (1) assess a civil penalty against the Organization | ||||||
19 | once per calendar year that shall be up to 10 cents for | ||||||
20 | each beverage container comprising the difference between | ||||||
21 | the number of beverage containers that were redeemed and | ||||||
22 | the total number of beverage containers that, if redeemed, | ||||||
23 | would have met the performance targets; and | ||||||
24 | (2) require the Organization to submit a revised | ||||||
25 | product stewardship plan within 365 days after the | ||||||
26 | effective date of this Act to the Agency for approval. |
| |||||||
| |||||||
1 | (g) If the Organization does not, within 5 years after a | ||||||
2 | product stewardship plan was submitted to the Agency under | ||||||
3 | subsection (c), meet all recycling and redemption rate targets | ||||||
4 | required under subsections (a) through (c), then: | ||||||
5 | (1) the Organization shall detail on the | ||||||
6 | Organization's website why a new Executive Director of the | ||||||
7 | Organization is not necessary if, at the end of the 5-year | ||||||
8 | period, the same person has acted as Executive Director of | ||||||
9 | the Organization for more than 365 days prior to the end of | ||||||
10 | the relevant 5-year period; | ||||||
11 | (2) the Agency may require certain changes to the | ||||||
12 | product stewardship plan; and | ||||||
13 | (3) the Agency shall assess against the Organization a | ||||||
14 | civil penalty once per calendar year up to 15 cents for | ||||||
15 | each beverage container comprising the difference between | ||||||
16 | the number of beverage containers that were redeemed and | ||||||
17 | the total number of beverage containers that, if redeemed, | ||||||
18 | would have met the performance target. | ||||||
19 | (h) Notwithstanding subsections (e) through (g): | ||||||
20 | (1) the penalty for each performance target required | ||||||
21 | in subsection (e) is not in addition to the penalties | ||||||
22 | authorized in subsections (f) and (g); | ||||||
23 | (2) the Agency may, beyond the amounts required in | ||||||
24 | subsections (f) and (g), for the violations specified in | ||||||
25 | subsections (f) and (g) assess an additional annual | ||||||
26 | penalty of up to $50,000,000 if the Organization does not |
| |||||||
| |||||||
1 | in a particular year eliminate at least 25% of the gap in | ||||||
2 | the previous year from achieving any performance rate | ||||||
3 | target it failed to achieve; and | ||||||
4 | (3) the Agency shall retroactively assess penalties | ||||||
5 | against the Organization if the verification in Section 60 | ||||||
6 | finds that the Organization performed worse than initially | ||||||
7 | stated in its public disclosures, and these retroactive | ||||||
8 | penalties shall not result in the Organization paying in | ||||||
9 | total more than it would have paid in penalties with the | ||||||
10 | verified performance levels. | ||||||
11 | Section 60. Reporting. | ||||||
12 | (a) On or before July 1 of each calendar year, beginning | ||||||
13 | July 1 of the first full calendar year after conventional | ||||||
14 | beverage containers have a redemption refund value under this | ||||||
15 | Act, the Organization shall make publicly available on its | ||||||
16 | website: | ||||||
17 | (1) the number of beverage containers sold in the | ||||||
18 | State by material type, as well as, for each quarter of the | ||||||
19 | year covered by the report and the quarters of each prior | ||||||
20 | year for at least the preceding 5 years, to the extent data | ||||||
21 | is available, the proportion of beverage containers sold | ||||||
22 | in the State that are capable of being recycled, refilled, | ||||||
23 | or reused; | ||||||
24 | (2) for each quarter of the year covered by the report | ||||||
25 | and the quarters of each prior year for at least the |
| |||||||
| |||||||
1 | preceding 5 years, and to the extent data is available, | ||||||
2 | the percentage of the total amount of beverage containers | ||||||
3 | sold in the State that each beverage container material | ||||||
4 | type represents; | ||||||
5 | (3) the percentage of the total amount of fees charged | ||||||
6 | to members that each beverage container material type | ||||||
7 | represents for each quarter of the year covered by the | ||||||
8 | report and the quarters of each prior year for at least the | ||||||
9 | preceding 5 years, to the extent data is available; | ||||||
10 | (4) the number of beverage containers, by material | ||||||
11 | type, redeemed for each quarter of the year covered by the | ||||||
12 | report and the quarter of each prior year for at least the | ||||||
13 | preceding 5 years, to the extent data is available; | ||||||
14 | (5) the percentage of beverage containers redeemed | ||||||
15 | that were recycled, by material type, and that were | ||||||
16 | reused, by material type, for each quarter of the report | ||||||
17 | year and for the quarters of each of at least the last 5 | ||||||
18 | prior years, to the extent data is available; | ||||||
19 | (6) the number of beverage containers redeemed at each | ||||||
20 | beverage container processing mechanism provided by the | ||||||
21 | Organization under this Act; | ||||||
22 | (7) the buyers by material type to whom the | ||||||
23 | Organization sold beverage container materials; | ||||||
24 | (8) the end-product each beverage container type | ||||||
25 | became or likely became; | ||||||
26 | (9) the percentage of the total amount of moneys |
| |||||||
| |||||||
1 | redeemed for each beverage container material type; | ||||||
2 | (10) each redemption location in the State; | ||||||
3 | (11) the means of redemption at each redemption | ||||||
4 | location in the State; | ||||||
5 | (12) the total expenses of the Organization; | ||||||
6 | (13) the total revenues of the Organization; | ||||||
7 | (14) the total reserves of the Organization; | ||||||
8 | (15) the actual or estimated cost to the Organization | ||||||
9 | per beverage container redeemed; | ||||||
10 | (16) the number of redemption locations that provide | ||||||
11 | services or an enhanced redemption experience for minority | ||||||
12 | or low-income consumers; | ||||||
13 | (17) aggregated Organization employee demographic | ||||||
14 | information, including information that can legally be | ||||||
15 | disclosed and that provides insight into the | ||||||
16 | Organization's performance on diversity, equity, and | ||||||
17 | inclusion; | ||||||
18 | (18) the number of consumer complaints per month, by | ||||||
19 | redemption location, during the previous calendar year and | ||||||
20 | each prior year for at least the preceding 5 years, to the | ||||||
21 | extent data is available; | ||||||
22 | (19) the total number of individual consumers per | ||||||
23 | month who filed complaints, by redemption location, during | ||||||
24 | the previous calendar year and each prior year for at | ||||||
25 | least the preceding 5 years, to the extent data is | ||||||
26 | available; |
| |||||||
| |||||||
1 | (20) a list of all members, their brands of beverage | ||||||
2 | containers, and a breakdown of each member's beverage | ||||||
3 | container packaging mix by beverage container type during | ||||||
4 | the previous calendar year and each prior year for at | ||||||
5 | least the preceding 5 years, to the extent data is | ||||||
6 | available; | ||||||
7 | (21) the buyers of the plastic film waste, if any, | ||||||
8 | generated from the standard bag sold by the Organization | ||||||
9 | to consumers for redemption and how buyers may recycle the | ||||||
10 | plastic film waste; | ||||||
11 | (22) the number of individuals and entities registered | ||||||
12 | to receive electronic deposits of redemption refunds under | ||||||
13 | this Act; and | ||||||
14 | (23) the name of each member of the Organization's | ||||||
15 | Board of Directors. | ||||||
16 | (b) The Organization may rely on reporting by members for | ||||||
17 | information used to comply with the reporting requirements of | ||||||
18 | this Act, but shall note in its annual report which of the | ||||||
19 | metrics described in subsection (a) are based on member | ||||||
20 | reporting. | ||||||
21 | (c) The Organization shall hire by June 1 of even-numbered | ||||||
22 | years an independent third-party organization to verify within | ||||||
23 | 6 months of its hiring the previous 2 calendar years of data | ||||||
24 | publicly disclosed under subsection (a). | ||||||
25 | (d) Once per odd-numbered calendar year, the Agency may | ||||||
26 | require verification of information disclosed during the |
| |||||||
| |||||||
1 | previous calendar year by the Organization under this Act. The | ||||||
2 | verification shall: | ||||||
3 | (1) occur only after being notified by the | ||||||
4 | Organization on or before August 1 of that calendar year | ||||||
5 | that the Agency is requiring independent third-party | ||||||
6 | verification; | ||||||
7 | (2) be performed by an independent third party; | ||||||
8 | (3) be limited in scope to information that: | ||||||
9 | (A) the Organization is required to report under | ||||||
10 | this Act; | ||||||
11 | (B) the Agency specifies for third-party | ||||||
12 | verification under this subsection; and | ||||||
13 | (C) appeared, or should have appeared, in the | ||||||
14 | Organization's annual report for the previous calendar | ||||||
15 | year; and | ||||||
16 | (4) be conducted on or before December 31 of the | ||||||
17 | calendar year in which it is required by the Agency. | ||||||
18 | (e) With the data verification activities under | ||||||
19 | subsections (c) and (d), the Organization shall: | ||||||
20 | (1) pay the full cost of the third-party verification; | ||||||
21 | and | ||||||
22 | (2) provide the independent third party with full | ||||||
23 | access to the underlying data supporting the disclosure in | ||||||
24 | subsection (a) being verified. | ||||||
25 | (f) The Organization must establish safeguards to ensure | ||||||
26 | members do not have access to information regarding: |
| |||||||
| |||||||
1 | (1) the price paid by any individual buyer for | ||||||
2 | beverage container material sold by the Organization under | ||||||
3 | this Act; and | ||||||
4 | (2) the amount of each beverage container material | ||||||
5 | sold by the Organization to each individual buyer. | ||||||
6 | (g) On or before the last day of February of each calendar | ||||||
7 | year, each member of the Organization must report to the | ||||||
8 | Organization all data necessary to satisfy the disclosure | ||||||
9 | requirements of this Section. The Organization shall ensure | ||||||
10 | that data provided by members under this subsection is | ||||||
11 | confidential. | ||||||
12 | Section 65. Operations Advisory Committee; Equity and | ||||||
13 | Access Advisory Committee. | ||||||
14 | (a) The Organization shall establish an Operations | ||||||
15 | Advisory Committee that represents a range of interested and | ||||||
16 | engaged persons and entities, including, at a minimum, one of | ||||||
17 | each of the following: | ||||||
18 | (1) a beverage container manufacturer or a beverage | ||||||
19 | container manufacturer's trade association that rotates | ||||||
20 | between the leading beverage container types; | ||||||
21 | (2) a beverage producer or a beverage producer's trade | ||||||
22 | association; | ||||||
23 | (3) a unit of local government or group of units of | ||||||
24 | local government; | ||||||
25 | (4) the State; |
| |||||||
| |||||||
1 | (5) an environmental nonprofit organization; | ||||||
2 | (6) an entity that buys beverage containers from, or | ||||||
3 | recycles them for, the Organization; and | ||||||
4 | (7) a retailer or a retailer's trade association. | ||||||
5 | (b) The Operations Advisory Committee may: | ||||||
6 | (1) provide written or oral comments directly to the | ||||||
7 | Board of Directors and the Executive Director no more than | ||||||
8 | 4 times a year; and | ||||||
9 | (2) every even-numbered calendar year, submit to the | ||||||
10 | Organization a written report that the Organization must | ||||||
11 | publish on its website upon request by the Operations | ||||||
12 | Advisory Committee and that contains: | ||||||
13 | (A) the Operations Advisory Committee's feedback | ||||||
14 | on the operation of the Organization; and | ||||||
15 | (B) the Operations Advisory Committee's feedback | ||||||
16 | on the redemption refund system established under this | ||||||
17 | Act. | ||||||
18 | (c) The Organization shall establish an Equity and Access | ||||||
19 | Advisory Committee that represents persons who can help ensure | ||||||
20 | the Organization's operations appropriately consider the | ||||||
21 | diverse needs and cultures of people who redeem beverage | ||||||
22 | containers, including, at a minimum, one of each of the | ||||||
23 | following: | ||||||
24 | (1) an advocate for homeless persons; | ||||||
25 | (2) a governmental social services office; | ||||||
26 | (3) a nongovernmental organization that advocates on |
| |||||||
| |||||||
1 | behalf of one or more cultural groups; | ||||||
2 | (4) a nongovernmental organization with a focus on | ||||||
3 | environmental justice; and | ||||||
4 | (5) a specialist in diversity and inclusion. | ||||||
5 | (d) The Equity and Access Advisory Committee may: | ||||||
6 | (1) provide written or oral comments directly to the | ||||||
7 | Board of Directors and the Executive Director no more than | ||||||
8 | 4 times a year; and | ||||||
9 | (2) every even-numbered calendar year, submit to the | ||||||
10 | Organization a written report that the Organization must | ||||||
11 | publish on its website upon request by the Equity and | ||||||
12 | Access Advisory Committee and that contains: | ||||||
13 | (A) the Equity and Access Advisory Committee's | ||||||
14 | feedback on whether the Organization is appropriately | ||||||
15 | considering the diverse needs and cultures of people | ||||||
16 | who redeem beverage containers under this Act; and | ||||||
17 | (B) the Equity and Access Advisory Committee's | ||||||
18 | suggestions on how the Organization can improve in | ||||||
19 | terms of equity and access. | ||||||
20 | Section 70. Reuse study. | ||||||
21 | (a) The Agency shall conduct a study on the infrastructure | ||||||
22 | that is needed in the State to support a robust system for | ||||||
23 | refillable beverage containers and on any changes that would | ||||||
24 | be required in order to ensure effective integration of | ||||||
25 | refillable beverage containers in the deposit return system. |
| |||||||
| |||||||
1 | (b) The study required in subsection (a) shall be | ||||||
2 | published on the Agency's website and filed with the General | ||||||
3 | Assembly no later than 2 years after the effective date of this | ||||||
4 | Act. | ||||||
5 | (c) The cost of the study shall be included in a | ||||||
6 | reimbursement request to the Organization under Section 80. | ||||||
7 | Section 75. Beverage container grant program. | ||||||
8 | (a) The Organization shall transfer 5% of the revenue from | ||||||
9 | unclaimed redemption refunds in the previous calendar year to | ||||||
10 | the Agency by July 1 of each calendar year starting the first | ||||||
11 | full calendar year after one or more beverage container types | ||||||
12 | is sold with a redemption refund value under this Act to fund a | ||||||
13 | beverage container grant program. | ||||||
14 | (b) The Agency, with the money available in the beverage | ||||||
15 | container grant program, shall annually fund with a | ||||||
16 | competitive grant process education, infrastructure, or litter | ||||||
17 | clean-up activities that increase the reuse or recycling of | ||||||
18 | beverage containers or reduce the litter from beverage | ||||||
19 | containers in the State. | ||||||
20 | (c) The Agency shall not give grants such that any one | ||||||
21 | beverage container type receives more than 25% of the benefits | ||||||
22 | from the activities funded. | ||||||
23 | (d) The following entities are eligible for a grant under | ||||||
24 | the beverage container grant program: | ||||||
25 | (1) a school or an institution of higher education; |
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1 | (2) a nonprofit organization; | ||||||
2 | (3) a county or municipal corporation; | ||||||
3 | (4) a federally recognized tribe; | ||||||
4 | (5) a for-profit organization; and | ||||||
5 | (6) a public-private partnership. | ||||||
6 | (e) The cost to administer the beverage container grant | ||||||
7 | program shall be included in a reimbursement request to the | ||||||
8 | Organization under Section 80. | ||||||
9 | Section 80. Reimbursement to the Agency. | ||||||
10 | (a) The Organization shall reimburse the Agency for costs | ||||||
11 | incurred by the Agency under this Act, not to exceed $500,000 | ||||||
12 | per year, in accordance with paragraph (4) of subsection (f) | ||||||
13 | of Section 50. | ||||||
14 | (b) The Organization shall reimburse the Agency for | ||||||
15 | enforcement costs incurred by the Agency under this Act, in | ||||||
16 | accordance with paragraph (5) of subsection (f) of Section 50, | ||||||
17 | that may take the total amount reimbursed by the Organization | ||||||
18 | to the Agency beyond $500,000 per year as long as the funded | ||||||
19 | enforcement activities identified violations of this Act and | ||||||
20 | resulted in penalties under this Act. | ||||||
21 | Section 85. Enforcement. | ||||||
22 | (a) In addition to any other applicable civil penalties or | ||||||
23 | criminal fines, the Agency may impose a civil penalty for each | ||||||
24 | day that a violation of this Act, as may be defined by |
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1 | subsequent rulemaking, occurs that is: | ||||||
2 | (1) $100 for the first violation of any requirement | ||||||
3 | under this Act; and | ||||||
4 | (2) not more than $1,000 for each subsequent violation | ||||||
5 | of that requirement. | ||||||
6 | (b) A person who takes any of the following actions with | ||||||
7 | the intent to knowingly defraud is subject to subsection (c), | ||||||
8 | along with any other federal, State, or local enforcement | ||||||
9 | action arising from the action: | ||||||
10 | (1) redeeming out-of-state beverage containers, | ||||||
11 | rejected beverage containers, line defects, or beverage | ||||||
12 | containers that have already been redeemed; | ||||||
13 | (2) seeking a redemption refund under this Act by | ||||||
14 | returning an already-redeemed beverage container at a | ||||||
15 | redemption location; | ||||||
16 | (3) bringing out-of-state beverage containers, | ||||||
17 | rejected beverage containers, or line defects to the State | ||||||
18 | marketplace for redemption; or | ||||||
19 | (4) selling beverage containers not distributed or | ||||||
20 | imported into the State by a member of the Organization. | ||||||
21 | (c) A violation of subsection (b) resulting in financial | ||||||
22 | gain by the violator shall subject the violator to the | ||||||
23 | following: | ||||||
24 | (1) If the amount of moneys gained is equal to or less | ||||||
25 | than $950, the violator is subject to: | ||||||
26 | (A) imprisonment in a county jail for not more |
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1 | than 6 months; | ||||||
2 | (B) a criminal fine not exceeding $1,000; or | ||||||
3 | (C) both the fine and imprisonment described in | ||||||
4 | subparagraphs (A) and (B). | ||||||
5 | (2) If the amount of moneys gained is more than $950, | ||||||
6 | the violator is subject to: | ||||||
7 | (A) imprisonment in a county jail for not more | ||||||
8 | than one year; | ||||||
9 | (B) a criminal fine not exceeding $10,000; or | ||||||
10 | (C) both the fine and imprisonment described in | ||||||
11 | subparagraphs (A) and (B). | ||||||
12 | (d) The Agency may bring a civil action to enjoin the | ||||||
13 | distribution, importation, or sale in the State of a beverage | ||||||
14 | container in violation of this Act. | ||||||
15 | (e) The Agency may assess a penalty of up to $30,000 in a | ||||||
16 | calendar year against the Organization for each redemption | ||||||
17 | location at which the Organization receives more than an | ||||||
18 | average of 100 individuals' complaints per month, according to | ||||||
19 | the public reporting required under Section 60. | ||||||
20 | (f) After notification from the Agency of noncompliance | ||||||
21 | with this Act and a 60-day cure period, the Agency may | ||||||
22 | administratively impose a civil penalty once per year to any | ||||||
23 | distributor or importer who fails to participate as an | ||||||
24 | Organization member as required under Section 10. The civil | ||||||
25 | penalty shall be the greater of $10,000 or 10 cents per | ||||||
26 | beverage container sold by the distributor or importer in the |
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1 | State while not a member. Any distributor or importer who | ||||||
2 | incurs a penalty under this Section may appeal the penalty to | ||||||
3 | the Agency. | ||||||
4 | (g) All penalties the State recovers under this Act: | ||||||
5 | (1) up to the first $5,000,000 per calendar year, | ||||||
6 | shall only be used to administer this Act; | ||||||
7 | (2) beyond the first $5,000,000 per calendar year, | ||||||
8 | shall only put toward the beverage container grant program | ||||||
9 | created in Section 75. | ||||||
10 | Section 90. Administration. The Agency shall administer | ||||||
11 | and enforce the provisions of this Act not otherwise allocated | ||||||
12 | to another person or entity under this Act.". |