Sen. Laura M. Murphy
Filed: 3/8/2024
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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 | "Area of environmental justice concern" means a census | ||||||
9 | block group that is designated by the Agency, by | ||||||
10 | administrative rule, as a census block group in which the | ||||||
11 | population of low-income or minority residents is twice the | ||||||
12 | statewide average. | ||||||
13 | "Beverage" means any drinkable liquid intended for human | ||||||
14 | oral consumption. "Beverage" does not include: | ||||||
15 | (1) a drug regulated under the Federal Food, Drug, and | ||||||
16 | Cosmetic Act (21 U.S.C. 301 et seq.); |
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1 | (2) 100% fluid cow milk; | ||||||
2 | (3) infant formula; or | ||||||
3 | (4) a meal replacement liquid. | ||||||
4 | "Beverage container" means any prepackaged container for | ||||||
5 | beverages. | ||||||
6 | "Beverage container processing mechanism" means any manual | ||||||
7 | or technological means by which empty beverage containers are | ||||||
8 | properly identified and processed. | ||||||
9 | "Beverage producer" means a person who bottles, cans, or | ||||||
10 | otherwise fills beverage containers to sell to distributors, | ||||||
11 | importers, or retailers. | ||||||
12 | "Consumer" means a person who purchases a beverage | ||||||
13 | container in the State for use or consumption. | ||||||
14 | "Covered beverage container" means a beverage container: | ||||||
15 | (1) made of 90% or more glass, polyethylene | ||||||
16 | terephthalate (PET), high-density polyethylene (HDPE) | ||||||
17 | plastic, or aluminum; | ||||||
18 | (2) designed to be used once before being recycled or | ||||||
19 | designed to be reused for multiple cycles before being | ||||||
20 | recycled; and | ||||||
21 | (3) with a volume of no more than one gallon. | ||||||
22 | "Distributor" means a person, including, but not limited | ||||||
23 | to, a beverage producer, who engages in the sale of beverage | ||||||
24 | containers to a retailer in the State. | ||||||
25 | "Drop-off facility" means a specific area where | ||||||
26 | individuals may bring household recyclable materials to be |
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1 | sorted into material-specific receptacles and is (i) located | ||||||
2 | in the State or (ii) located outside the State and receives | ||||||
3 | more than half of the material it collects from State | ||||||
4 | residents. | ||||||
5 | "Importer" means a retailer or beverage producer who | ||||||
6 | directly imports beverage containers into the State. | ||||||
7 | "Line defect" means a beverage container that becomes | ||||||
8 | defective or damaged during manufacturing, is not meant for | ||||||
9 | sale, and is not eligible for redemption. | ||||||
10 | "Material recovery facility" means a facility that | ||||||
11 | receives, separates, and sells or otherwise distributes | ||||||
12 | postconsumer materials for recycling and is (i) located in the | ||||||
13 | State or (ii) located outside the State and receives more than | ||||||
14 | half of the material it collects from State residents. | ||||||
15 | "Member" means a distributor or importer who has joined | ||||||
16 | the Organization and paid all applicable fees. | ||||||
17 | "Non-covered beverage container" means a beverage | ||||||
18 | container that is not included in the definition of covered | ||||||
19 | beverage container. | ||||||
20 | "Nonprofit organization" means an organization established | ||||||
21 | and operated as a nonprofit organization under Section | ||||||
22 | 501(c)(3) of the Internal Revenue Code. | ||||||
23 | "Organization" means the Distributor and Importer | ||||||
24 | Responsibility Organization established under Section 50. | ||||||
25 | "Recycle" means the series of activities by which a | ||||||
26 | beverage container is: |
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1 | (1) collected and processed; | ||||||
2 | (2) converted into raw material; and | ||||||
3 | (3) used in the production of a new product, including | ||||||
4 | the original product. | ||||||
5 | "Recycle" does not include: | ||||||
6 | (1) the use of material to produce a fuel or fuel | ||||||
7 | substitute; | ||||||
8 | (2) the use of material in a chemical conversion | ||||||
9 | process, such as solvolysis or depolymerization; | ||||||
10 | (3) the use of material in an incineration process, | ||||||
11 | such as a waste-to-energy process; or | ||||||
12 | (4) the use of material within the footprint of a | ||||||
13 | landfill. | ||||||
14 | "Recycling rate" means the percentage of covered beverage | ||||||
15 | containers recycled out of all covered beverage containers | ||||||
16 | sold in the State. | ||||||
17 | "Retailer" means a person or business in the State who | ||||||
18 | engages in the sale of beverage containers to a consumer. | ||||||
19 | "Self-service kiosk" means a machine which a consumer can | ||||||
20 | use to: | ||||||
21 | (1) create an account in order to participate in a | ||||||
22 | bag-drop program; | ||||||
23 | (2) conduct account activity, including viewing an | ||||||
24 | account balance; | ||||||
25 | (3) print vouchers redeemable for cash or store credit | ||||||
26 | for redeemed beverage containers; or |
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1 | (4) print labels to identify bags in the bag-drop | ||||||
2 | program with the consumer's account. | ||||||
3 | A self-service kiosk does not redeem beverage containers. | ||||||
4 | "Store" means an individual location where a retailer | ||||||
5 | sells beverage containers. | ||||||
6 | Section 10. Beverage container recycling redemption refund | ||||||
7 | program. | ||||||
8 | (a) Except as otherwise provided in this Section, each | ||||||
9 | covered beverage container sold or offered for sale in the | ||||||
10 | State shall have the following redemption refund value: | ||||||
11 | (1) 5 cents for a beverage container of 24 fluid | ||||||
12 | ounces or less; and | ||||||
13 | (2) 10 cents for a beverage container of more than 24 | ||||||
14 | fluid ounces. | ||||||
15 | (b) Two years after covered beverage containers begin to | ||||||
16 | be sold or offered for sale in the State with the refund value | ||||||
17 | in paragraph (a), every covered beverage container sold or | ||||||
18 | offered for sale in the State shall, except as otherwise | ||||||
19 | provided by rule adopted in accordance with subsection (b), | ||||||
20 | have the following refund value: | ||||||
21 | (1) 10 cents for a beverage container of 24 fluid | ||||||
22 | ounces or less; and | ||||||
23 | (2) 15 cents for a beverage container of more than 24 | ||||||
24 | fluid ounces. | ||||||
25 | (c) The Agency may adopt rules providing a different |
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1 | redemption refund value than the redemption refund value | ||||||
2 | provided under subsection (b), so long as the modified | ||||||
3 | redemption refund value is not based on the type of | ||||||
4 | postconsumer material being recycled, but no more often than: | ||||||
5 | (1) once during any 10-year period in consultation | ||||||
6 | with the Organization; and | ||||||
7 | (2) once during any 5-year period and after receiving | ||||||
8 | a request from the Organization for a change to one or both | ||||||
9 | redemption refund amounts, if the Agency's change conforms | ||||||
10 | with the Organization's request. | ||||||
11 | (d) Prior to any change in the redemption refund value | ||||||
12 | under subsection (c), the Agency must undergo a notice and | ||||||
13 | comment review period with at least 60 days' notice to the | ||||||
14 | public. | ||||||
15 | (e) Any moneys designated for redemption refunds but that | ||||||
16 | are not claimed by consumers shall be used by the Organization | ||||||
17 | only to support its administrative costs and to perform the | ||||||
18 | activities required under this Act. | ||||||
19 | Section 15. Material flows. | ||||||
20 | (a) When a consumer redeems a beverage container in | ||||||
21 | accordance with this Act, the Organization becomes the owner | ||||||
22 | of that beverage container and may: | ||||||
23 | (1) sell it to a buyer of its choosing after first | ||||||
24 | allowing a beverage producer or a company of its beverage | ||||||
25 | container supply chain to purchase the material at a fair |
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1 | market rate; or | ||||||
2 | (2) on its own or via a third party, process the | ||||||
3 | beverage container for refill if it is reusable or has an | ||||||
4 | agreement with one or more third parties that manage | ||||||
5 | reusable beverage containers in the recycling refund | ||||||
6 | system. | ||||||
7 | (b) If a consumer chooses to put a beverage container in | ||||||
8 | its curbside recycling receptacle or a drop-off receptacle, | ||||||
9 | the operator of the material recovery facility that sorts the | ||||||
10 | beverage container or the operator of the drop-off facility | ||||||
11 | that receives the beverage container may offer to sell the | ||||||
12 | material to the Organization, which then may be required to | ||||||
13 | pay a certain percent of the redemption value per beverage | ||||||
14 | container under Section 45. | ||||||
15 | Section 20. Means of redemption. | ||||||
16 | (a) At each store having a floor space that is greater than | ||||||
17 | or equal to 10,000 square feet, excluding only outdoor space, | ||||||
18 | the Organization shall, at its expense, install, operate, and | ||||||
19 | maintain: | ||||||
20 | (1) bulk bag drop-off for all redeemable beverage | ||||||
21 | containers; and | ||||||
22 | (2) one or more beverage container processing | ||||||
23 | mechanisms that allow the consumer to: | ||||||
24 | (A) redeem all redeemable beverage containers; and | ||||||
25 | (B) immediately receive the refund value. |
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1 | (b) At each store having a floor space that is greater than | ||||||
2 | or equal to 10,000 square feet, excluding only outdoor space, | ||||||
3 | the Organization may, in consultation with the retailer and at | ||||||
4 | its expense, install, operate, and maintain additional | ||||||
5 | beverage container processing mechanisms beyond what is | ||||||
6 | required in subsection (a) to meet the redemption option | ||||||
7 | requirements per county in this Section and the performance | ||||||
8 | targets in Section 55. | ||||||
9 | (c) At each of its stores having a floor space that is | ||||||
10 | greater than or equal to 10,000 square feet, excluding only | ||||||
11 | outdoor space, the retailer shall decide where in each store | ||||||
12 | the Organization will, on space the retailer controls inside | ||||||
13 | or outside the store, install, operate, and maintain beverage | ||||||
14 | container processing mechanisms. | ||||||
15 | (d) At each of its stores having a floor space that is | ||||||
16 | greater than or equal to 1,000 square feet but less than 10,000 | ||||||
17 | square feet, excluding only outdoor space, the retailer shall, | ||||||
18 | upon the Organization's request, allow the Organization to | ||||||
19 | install, operate, and maintain beverage container processing | ||||||
20 | mechanisms necessary to meet the redemption option | ||||||
21 | requirements per county in this Section and the performance | ||||||
22 | targets in Section 55 on space of the retailer's choosing that | ||||||
23 | it controls inside or outside the store. | ||||||
24 | (e) A retailer who operates a store having a floor space | ||||||
25 | that is less than 1,000 square feet, excluding outdoor space, | ||||||
26 | has no duty under this Act to host a beverage container |
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1 | processing mechanism. | ||||||
2 | (f) Notwithstanding subsections (a) through (e): | ||||||
3 | (1) the retailer may make available more than the | ||||||
4 | required space for beverage container processing | ||||||
5 | mechanisms; | ||||||
6 | (2) the Organization may install, operate, and | ||||||
7 | maintain more beverage container processing mechanisms on | ||||||
8 | the additional space made available under paragraph (1); | ||||||
9 | and | ||||||
10 | (3) a retailer at any of its stores with more than | ||||||
11 | 1,000 square feet, upon request by the Organization | ||||||
12 | regarding a particular store of the retailer, must offer | ||||||
13 | for sale at that particular store of the retailer the | ||||||
14 | standard bags that the Organization deems necessary to | ||||||
15 | operate a bag-drop program. | ||||||
16 | (g) A retailer is exempt from the requirements of | ||||||
17 | subsections (a) through (f) at stores the retailer operates | ||||||
18 | that: | ||||||
19 | (1) sell beverage containers as an inconsequential | ||||||
20 | amount of the store's annual revenue, meaning less than 5% | ||||||
21 | of the store's annual revenue, through stand-alone vending | ||||||
22 | machines, stand-alone refrigerator cases, or similar | ||||||
23 | means; or | ||||||
24 | (2) primarily prepare food for sale. | ||||||
25 | (h) The Agency, in consultation with the Organization and | ||||||
26 | retailers, shall develop a formula to determine how to fairly |
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1 | compensate annually the retailer for use of the space at each | ||||||
2 | store of the retailer that the retailer permits the | ||||||
3 | Organization to install, operate, and maintain beverage | ||||||
4 | container processing mechanisms. | ||||||
5 | (i) The Organization shall, at the request of a retailer | ||||||
6 | that owns a store at which it is operating beverage container | ||||||
7 | processing mechanisms, provide the consumer the option to | ||||||
8 | redeem its refund value for a credit at the retailer in | ||||||
9 | addition to any financial incentive beyond the refund value | ||||||
10 | that the retailer chooses to provide the consumer. | ||||||
11 | (j) Through the redemption mechanisms established at | ||||||
12 | retailers or at other locations, the Organization shall | ||||||
13 | install, service, and maintain at least the number of beverage | ||||||
14 | container processing mechanisms necessary to meet the minimum | ||||||
15 | number determined under subsection (k) for each of the | ||||||
16 | following classes of counties: | ||||||
17 | (1) counties with a population density that is less | ||||||
18 | than 250 individuals per square mile; | ||||||
19 | (2) counties with a population density that is greater | ||||||
20 | than or equal to 250 individuals per square mile but less | ||||||
21 | than 500 individuals per square mile; | ||||||
22 | (3) counties with a population density that is greater | ||||||
23 | than or equal to 500 individuals per square mile but less | ||||||
24 | than 750 individuals per square mile; | ||||||
25 | (4) counties with a population density that is greater | ||||||
26 | than or equal to 750 individuals per square mile but less |
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1 | than 1,000 individuals per square mile; | ||||||
2 | (5) counties with a population density that is greater | ||||||
3 | than or equal to 1,000 individuals per square mile but | ||||||
4 | less than 5,000 individuals per square mile; and | ||||||
5 | (6) counties with a population density that is greater | ||||||
6 | than or equal to 5,000 individuals per square mile. | ||||||
7 | (k) The Organization shall determine the minimum number of | ||||||
8 | each beverage container processing mechanism required in each | ||||||
9 | county based on the classification in subsection (j) and the | ||||||
10 | following criteria: | ||||||
11 | (1) the number of stores in the county that host | ||||||
12 | beverage container processing mechanisms; | ||||||
13 | (2) the number of stores in the county that must, upon | ||||||
14 | request by the Organization, host beverage container | ||||||
15 | processing mechanisms; | ||||||
16 | (3) the proximity between the stores in paragraphs (1) | ||||||
17 | and (2), their proximity to residents, and their proximity | ||||||
18 | to public transit; | ||||||
19 | (4) the size of the stores in paragraphs (1) and (2); | ||||||
20 | (5) the percentage of county residents with a car; and | ||||||
21 | (6) the percentage of county residents below the | ||||||
22 | federal poverty line. | ||||||
23 | (l) By no later than the date upon which covered beverage | ||||||
24 | containers are sold or offered for sale in the State with the | ||||||
25 | refund value specified in Section 10, the Organization shall | ||||||
26 | operate in each county that contains an area of environmental |
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1 | justice concern directly, in partnership or through contract | ||||||
2 | with another entity, at least one redemption site that: | ||||||
3 | (1) provides written information about the redemption | ||||||
4 | process in at least 3 languages other than English and a QR | ||||||
5 | code that provides information in additional non-English | ||||||
6 | languages spoken in the county; and | ||||||
7 | (2) is staffed by persons trained to communicate | ||||||
8 | appropriately and to deliver services effectively to | ||||||
9 | persons in culturally diverse and underserved communities. | ||||||
10 | (m) By no later than the date upon which covered beverage | ||||||
11 | containers are sold or offered for sale in the State with the | ||||||
12 | refund value specified in Section 10, at least 5 of the | ||||||
13 | redemption mechanisms the Organization operates directly, in | ||||||
14 | partnership or through contracting with another entity, shall | ||||||
15 | be mobile redemption sites that operate at least 40 hours per | ||||||
16 | week, excluding local, State, or federal holidays, and shall | ||||||
17 | be designed to: | ||||||
18 | (1) provide services to persons who redeem high | ||||||
19 | volumes of beverage containers; and | ||||||
20 | (2) collect beverage containers for redemption from | ||||||
21 | persons who are physically impaired or otherwise unable to | ||||||
22 | transport beverage containers to a redemption center. | ||||||
23 | (n) The Organization may enter into an agreement to | ||||||
24 | install, operate, and maintain additional beverage container | ||||||
25 | processing mechanisms at any location in order to meet: | ||||||
26 | (1) the redemption option requirements under this |
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1 | Section for each county; and | ||||||
2 | (2) the performance targets required in Section 55. | ||||||
3 | (o) Any facility that the Organization sets up in the | ||||||
4 | State to aggregate, sort, and process the material collected | ||||||
5 | at various redemption locations under this Act may: | ||||||
6 | (1) accept, pursuant to a reasonable process the | ||||||
7 | Organization may establish, beverage containers that are | ||||||
8 | eligible for redemption and are submitted in the | ||||||
9 | Organization's standard redemption bag, as designated by | ||||||
10 | the Organization; and | ||||||
11 | (2) provide a nonprofit organization with a premium to | ||||||
12 | be determined and paid for by the Organization. | ||||||
13 | (p) The public shall have access to redeem beverage | ||||||
14 | containers in accordance with this Section for not less than | ||||||
15 | 10 hours each day: | ||||||
16 | (1) except on federal, State, or local holidays; | ||||||
17 | (2) except at a facility set up by the Organization to | ||||||
18 | aggregate, sort, and process redeemed beverage containers; | ||||||
19 | or | ||||||
20 | (3) unless restricted by the open hours of the store | ||||||
21 | in which the beverage container processing mechanism is | ||||||
22 | being operated. | ||||||
23 | (q) The Organization must provide information to the | ||||||
24 | public detailing how consumers can alert the Organization to | ||||||
25 | problems at beverage container processing mechanisms operated | ||||||
26 | by the Organization. The information shall be provided via: |
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1 | (1) the Organization's website; and | ||||||
2 | (2) clearly visible signage at each beverage container | ||||||
3 | processing mechanism that the Organization operates. | ||||||
4 | (r) The Organization may establish reasonable terms and | ||||||
5 | conditions for the use of a beverage container processing | ||||||
6 | mechanism. | ||||||
7 | Section 25. Labeling requirements. | ||||||
8 | (a) A beverage producer, distributor, or importer shall | ||||||
9 | include the abbreviation "RV" on a clearly visible portion of | ||||||
10 | the top or side of each beverage container that is sold by the | ||||||
11 | beverage producer, distributor, or importer in the State. | ||||||
12 | (b) The Organization may require that any beverage | ||||||
13 | producer, distributor, or importer include, on any space that | ||||||
14 | is on the top or side of each beverage container sold in the | ||||||
15 | State, the clearly visible abbreviation of the State and | ||||||
16 | applicable redemption refund value under Section 10. | ||||||
17 | (c) A beverage producer, distributor, or importer may | ||||||
18 | include a barcode or unique code verification on a beverage | ||||||
19 | container to automatically identify it. | ||||||
20 | Section 30. Timing. | ||||||
21 | (a) By no later than 24 months after the effective date of | ||||||
22 | this Act, covered beverage containers that are sold in the | ||||||
23 | State must be redeemable for the applicable redemption refund | ||||||
24 | value under Section 10. |
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1 | (b) The Agency may permit: | ||||||
2 | (1) up to an additional 365 days to meet the deadline | ||||||
3 | specified in subsection (a); or | ||||||
4 | (2) any delays needed to align the implementation | ||||||
5 | timing of the recycling refund system in this Act with any | ||||||
6 | broader extended producer responsibility system that has | ||||||
7 | become law in the State for packaging or printed paper | ||||||
8 | more generally. | ||||||
9 | (c) The Organization may choose at any time to make one or | ||||||
10 | more non-covered beverage containers eligible for the same | ||||||
11 | refund value as covered beverage containers and, once | ||||||
12 | eligible, the Organization must still comply with all the | ||||||
13 | requirements of this Act, including performance targets. | ||||||
14 | (d) If the market share of a non-covered beverage | ||||||
15 | container in any 2 full calendar years in a row grows to 5% | ||||||
16 | more than what it was over the average of 2 full calendar years | ||||||
17 | before the effective date of this Act, then the Organization | ||||||
18 | must: | ||||||
19 | (1) make that non-covered beverage container eligible | ||||||
20 | for the same refund value as covered beverage containers | ||||||
21 | and still comply with all the requirements of this Act, | ||||||
22 | including performance targets; or | ||||||
23 | (2) charge its members for each non-covered beverage | ||||||
24 | container sold in the State the amount of the refund value | ||||||
25 | for an equivalent in size covered beverage container and | ||||||
26 | use the revenue from this charge only to support the |
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1 | grants permitted under this Act to improve education, | ||||||
2 | outreach, or infrastructure to enhance the recycling or | ||||||
3 | reuse of beverage containers. | ||||||
4 | Section 35. Prohibitions. | ||||||
5 | (a) No person shall distribute, import, or sell beverage | ||||||
6 | containers in or into the State except in compliance with this | ||||||
7 | Act. | ||||||
8 | (b) No person shall redeem under this Act a beverage | ||||||
9 | container that was not sold in the State to a consumer in the | ||||||
10 | State. | ||||||
11 | Section 40. Agency duties. On or before October 1 of each | ||||||
12 | year after the effective date of this Act, the Agency shall | ||||||
13 | identify and communicate to the Organization the Agency's | ||||||
14 | total estimated annual cost to implement, administer, and | ||||||
15 | enforce this Act, including the cost of adopting rules under | ||||||
16 | this Act, in the next calendar year, after: | ||||||
17 | (1) subtracting the moneys that the Agency collected | ||||||
18 | from penalties assessed under this Act, which shall be | ||||||
19 | applied toward fulfilling the Agency's responsibilities | ||||||
20 | under this Act in the next calendar year; and | ||||||
21 | (2) adding any expenses incurred in fulfilling the | ||||||
22 | Agency's responsibilities under this Act that are not | ||||||
23 | covered by the annual cost from the previous year. |
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1 | Section 45. Drop-off facilities and material recovery | ||||||
2 | facilities. | ||||||
3 | (a) Each drop-off facility or material recovery facility | ||||||
4 | may submit the following information to the Organization: | ||||||
5 | (1) the number of tons of each beverage container type | ||||||
6 | eligible for a refund that it sold or transferred out of | ||||||
7 | its facility in the last full calendar year before a | ||||||
8 | beverage container was sold with an applicable refund | ||||||
9 | value; and | ||||||
10 | (2) an estimate of the tons under paragraph (1) that | ||||||
11 | were received from sources in the State. | ||||||
12 | (b) The optional information detailed in subsection (a) | ||||||
13 | shall be submitted on or before April 1 and shall pertain only | ||||||
14 | to the previous full calendar year. | ||||||
15 | (c) By July 1 of each calendar year, starting the first | ||||||
16 | full year and ending the fourth full year after covered | ||||||
17 | beverage containers are sold with the applicable refund value, | ||||||
18 | the Organization must make an annual payment directly to each | ||||||
19 | material recovery facility and drop-off facility operator that | ||||||
20 | submits data according to subsection (a) that: | ||||||
21 | (1) equals 5% of the scrap value of the material the | ||||||
22 | Organization sold in the preceding calendar year; and | ||||||
23 | (2) is based on the data submitted by the material | ||||||
24 | recovery facility and drop-off facility operators under | ||||||
25 | subsection (a). | ||||||
26 | (d) The operators of material recovery facilities or |
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1 | drop-off facilities shall use an industry-standard scale to | ||||||
2 | measure the weight of all beverage containers that enter the | ||||||
3 | facility. | ||||||
4 | (e) When the operator of a material recovery facility or | ||||||
5 | drop-off facility chooses to offer for purchase to the | ||||||
6 | Organization beverage containers purchased in the State and | ||||||
7 | redeemable under this Act, the Organization shall buy those | ||||||
8 | beverage containers at the amounts specified in this Section | ||||||
9 | as long as the quality standards described in this Section are | ||||||
10 | met. | ||||||
11 | (f) For the first 10 years after eligible beverage | ||||||
12 | containers are sold with a refund value, the Organization | ||||||
13 | shall pay material recovery facilities and drop-off | ||||||
14 | facilities: | ||||||
15 | (1) 100% of the refund value for each covered beverage | ||||||
16 | container: | ||||||
17 | (A) made of 90% or more aluminum, polyethylene | ||||||
18 | terephthalate (PET), or high-density polyethylene | ||||||
19 | (HDPE) that the material recovery facility or drop-off | ||||||
20 | facility offers to the Organization: | ||||||
21 | (i) as a bale or loose; and | ||||||
22 | (ii) that meets the relevant and most recently | ||||||
23 | published Institute of Scrap Recycling Industries | ||||||
24 | specifications. | ||||||
25 | (B) made of 90% or more glass that the material | ||||||
26 | recovery facility or drop-off facility offers to the |
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1 | organization: | ||||||
2 | (i) loose; and | ||||||
3 | (ii) as furnace-ready cullet; | ||||||
4 | (2) 50% for beverage containers made of 90% or more | ||||||
5 | glass that the material recovery facility or drop-off | ||||||
6 | facility offers to the organization and that contains 15% | ||||||
7 | or less non-glass residuals or fines. | ||||||
8 | (g) Following the first 10 years after eligible beverage | ||||||
9 | containers are sold with a refund value, the Organization | ||||||
10 | shall pay material recovery facilities and drop-off facilities | ||||||
11 | for each eligible beverage container it is offered as a bale or | ||||||
12 | loose with the following structure based on each material | ||||||
13 | type: | ||||||
14 | (1) for beverage containers made of 90% or more | ||||||
15 | aluminum, operators of material recovery facilities and | ||||||
16 | drop-off facilities receive 100% of the refund value if | ||||||
17 | they meet the relevant and most recently published | ||||||
18 | Institute of Scrap Recycling Industries specifications; | ||||||
19 | (2) for beverage containers made of 90% or more glass, | ||||||
20 | operators of material recovery facilities and drop-off | ||||||
21 | facilities receive: | ||||||
22 | (A) 100% of the refund value if the material | ||||||
23 | recovery facility or drop-off facility provides | ||||||
24 | furnace-ready cullet; and | ||||||
25 | (B) 50% of the refund value if the material | ||||||
26 | recovery facility or drop-off facility provides glass |
| |||||||
| |||||||
1 | that contains 15% or less non-glass residuals or | ||||||
2 | fines; | ||||||
3 | (3) For beverage containers made of 90% or more | ||||||
4 | polyethylene terephthalate (PET), operators of material | ||||||
5 | recovery facilities and drop-off facilities receive: | ||||||
6 | (A) 100% of the refund value if they are | ||||||
7 | third-party certified as meeting the Association of | ||||||
8 | Plastic Recyclers Grade B model specification for PET | ||||||
9 | bottle bales; and | ||||||
10 | (B) 50% of the refund value if they do not meet the | ||||||
11 | Grade B specification; and | ||||||
12 | (4) For beverage containers made of 90% or more | ||||||
13 | high-density polyethylene (HDPE), operators of material | ||||||
14 | recovery facilities and drop-off facilities receive 100% | ||||||
15 | of the refund value if they are third-party certified as | ||||||
16 | meeting the applicable, natural or colored, Association of | ||||||
17 | Plastic Recyclers HDPE model bale specification. | ||||||
18 | (h) The Agency, in consultation with the Organization and | ||||||
19 | material recovery facilities and drop-off facilities and | ||||||
20 | associations that represent material recovery facilities and | ||||||
21 | drop-off facilities, shall develop and publish a methodology | ||||||
22 | for how to determine the average amount of redeemable beverage | ||||||
23 | containers that were purchased in the State per ton of | ||||||
24 | material offered to the Organization. | ||||||
25 | (i) When the Organization pays the operators of the | ||||||
26 | material recovery facility and drop-off facility the |
| |||||||
| |||||||
1 | appropriate portion of the redemption value per beverage | ||||||
2 | container, it may do so with an assumption that the beverage | ||||||
3 | containers sold to it have a breakdown of containers that are | ||||||
4 | 24 ounces or less and more than 24 ounces equivalent to what | ||||||
5 | percentage of that container type that consumers redeemed in | ||||||
6 | the last calendar year and that were 24 ounces or less and more | ||||||
7 | than 24 ounces. | ||||||
8 | (j) The Organization shall become the owner of the | ||||||
9 | beverage containers for which it pays the amount under | ||||||
10 | paragraphs (f) and (g) and may sell the material to the buyer | ||||||
11 | of its choosing for revenue after first allowing a beverage | ||||||
12 | producer or a company in its beverage container supply chain | ||||||
13 | to purchase the material at a fair market rate. | ||||||
14 | (k) An operator of a material recovery facility or | ||||||
15 | drop-off facility shall pay for up to one independent audit | ||||||
16 | per calendar year on the quality and quantity of its material | ||||||
17 | upon request by the Organization and shall allow the | ||||||
18 | Organization to conduct 2 additional audits per calendar year | ||||||
19 | on the quality and quantity of its material upon request by the | ||||||
20 | Organization and at the Organization's expense. | ||||||
21 | (l) All thresholds in this Section tied to externally | ||||||
22 | referenced documents, such as the model bale specifications | ||||||
23 | from the Association of Plastic Recyclers and the Institute of | ||||||
24 | Scrap Recycling Industries, shall reflect the most current | ||||||
25 | version of the externally referenced documents, including any | ||||||
26 | updates made after the effective date of this Act. |
| |||||||
| |||||||
1 | Section 50. Distributor and Importer Responsibility | ||||||
2 | Organization. | ||||||
3 | (a) All distributors and importers shall join as members | ||||||
4 | of a Distributor and Importer Responsibility Organization. A | ||||||
5 | distributor or importer operating in violation of this | ||||||
6 | requirement is subject to penalties described in Section 85. | ||||||
7 | The Organization must be established and operated as a | ||||||
8 | nonprofit organization or a cooperative corporation. | ||||||
9 | (b) Only one Organization may operate in the State. The | ||||||
10 | Organization may decide to operate jointly with similar | ||||||
11 | organizations. The Organization shall elect a governing Board | ||||||
12 | of Directors of the Organization composed of Organization | ||||||
13 | members. The Organization shall be led by an Executive | ||||||
14 | Director elected by the Board of Directors of the | ||||||
15 | Organization. | ||||||
16 | (c) The Organization shall charge a membership fee that | ||||||
17 | funds the Organization's costs of operation to meet the | ||||||
18 | requirements of this Act minus the unclaimed redemption | ||||||
19 | refunds and the revenue from the sale of the redeemed beverage | ||||||
20 | containers, both of which must stay with the Organization to | ||||||
21 | fund its operations to meet the requirements of this Act. The | ||||||
22 | Organization may develop other revenue sources. The | ||||||
23 | Organization shall charge membership fees that vary by | ||||||
24 | material type and that reflect: | ||||||
25 | (1) the cost of collecting, transporting, sorting, and |
| |||||||
| |||||||
1 | processing each beverage container type, among other costs | ||||||
2 | that may vary by beverage container type; | ||||||
3 | (2) the monetary value of each beverage container | ||||||
4 | type; and | ||||||
5 | (3) the number of units of each beverage container | ||||||
6 | type that each member distributes or sells in the State. | ||||||
7 | (d) The Organization shall submit within 12 months of the | ||||||
8 | effective date of this Act and every 5 years thereafter a plan | ||||||
9 | to the Agency for approval that describes how the Organization | ||||||
10 | will meet its requirements under this Act over the next 5 | ||||||
11 | years. | ||||||
12 | (e) The Agency must review and approve, deny, or request | ||||||
13 | additional information for a draft plan by the Organization by | ||||||
14 | no later than 120 days after its receipt date. The Agency must | ||||||
15 | post the draft plan on the Agency's website and allow public | ||||||
16 | comment for no less than 45 days before approving, denying, or | ||||||
17 | requesting additional information on the draft plan. | ||||||
18 | (f) If the Agency denies or requests additional | ||||||
19 | information regarding a draft plan, the Agency must provide | ||||||
20 | the Organization the reasons, in writing, why the plan is not | ||||||
21 | sufficient. The organization must submit a revised draft plan | ||||||
22 | to the Agency within 60 days of receipt of the Agency's action. | ||||||
23 | The Agency shall review and approve or disapprove of the | ||||||
24 | revised draft plan within 60 days of receiving it. | ||||||
25 | (g) The Organization may revise and submit a draft plan to | ||||||
26 | the Agency not more than twice. If, after the second revised |
| |||||||
| |||||||
1 | plan is submitted, the Agency determines that the draft plan | ||||||
2 | does not meet the requirements of this Act, the Agency must | ||||||
3 | modify the draft plan as necessary for it to meet the | ||||||
4 | requirements of this Act and approve it. | ||||||
5 | (h) The Organization shall publish publicly on its | ||||||
6 | website: | ||||||
7 | (1) within 18 months after the effective date of this | ||||||
8 | Act, an Agency-approved initial plan for how the | ||||||
9 | Organization will meet its requirements under this Act | ||||||
10 | over the next 5 years, including the performance targets | ||||||
11 | specified in Section 55 and the minimum number of beverage | ||||||
12 | container processing mechanisms required in each county | ||||||
13 | under Section 20; and | ||||||
14 | (2) no later than every 5 years after publication of | ||||||
15 | the initial plan under paragraph (1), an updated plan on | ||||||
16 | how the Organization will continue to meet its | ||||||
17 | requirements under this Act, including the performance | ||||||
18 | targets specified in Section 55 and the minimum number of | ||||||
19 | beverage container processing mechanisms required in each | ||||||
20 | county under Section 20. | ||||||
21 | (i) The Organization shall pay: | ||||||
22 | (1) for any beverage container processing mechanism or | ||||||
23 | self-service kiosk that the Organization installs, | ||||||
24 | maintains, and operates at any location to meet or exceed: | ||||||
25 | (A) the performance targets under Section 55; or | ||||||
26 | (B) the redemption option requirements under |
| |||||||
| |||||||
1 | Section 20 for each county; | ||||||
2 | (2) for any facilities in the State necessary to | ||||||
3 | efficiently aggregate, sort, and process the beverage | ||||||
4 | containers collected at redemption locations under this | ||||||
5 | Act; | ||||||
6 | (3) to upkeep a list and map on its website of all | ||||||
7 | redemption locations and the redemption options available | ||||||
8 | at each redemption location; | ||||||
9 | (4) by December 31 of each year, an annual installment | ||||||
10 | to the Agency according to the formula under Section 40, | ||||||
11 | but not to exceed $500,000 per year; the installment shall | ||||||
12 | fund the Agency's anticipated costs in the following year | ||||||
13 | to implement, administer, and enforce this Act, including | ||||||
14 | adopting rules under this Act; | ||||||
15 | (5) by December 31 of each year, reimbursement for | ||||||
16 | enforcement costs that may result in a total reimbursement | ||||||
17 | by the Organization to the Agency more than $500,000 per | ||||||
18 | year as long as the funded enforcement activities | ||||||
19 | identified violations of this Act and resulted in | ||||||
20 | penalties under this Act; | ||||||
21 | (6) the cost of the standard bags described under | ||||||
22 | subsection (f) of Section 20; | ||||||
23 | (7) the material recovery facility and drop-off | ||||||
24 | facility payments under Section 45; | ||||||
25 | (8) a survey in each even-numbered year of consumers | ||||||
26 | for whom refunds paid under this Section constitute a |
| |||||||
| |||||||
1 | significant portion of their income to determine if their | ||||||
2 | needs are being met. | ||||||
3 | (j) If the standard bag the Organization sells to | ||||||
4 | consumers under subsection (f) of Section 20 is made of | ||||||
5 | plastic film, the Organization shall: | ||||||
6 | (1) ensure that the standard bag sold is composed of a | ||||||
7 | minimum of 50% recycled content; and | ||||||
8 | (2) demonstrate to the Agency that the plastic film | ||||||
9 | waste from the standard bags will be recycled in the best | ||||||
10 | commercially available manner. | ||||||
11 | (k) The Organization is not required to pay a redemption | ||||||
12 | refund under this Act for: | ||||||
13 | (1) any beverage container that visibly contains or is | ||||||
14 | visibly contaminated by a substance other than water, | ||||||
15 | residue of the beverage contained within the beverage | ||||||
16 | container as sold by a retailer to a consumer, or dust; | ||||||
17 | (2) any beverage container that is crushed, broken, or | ||||||
18 | damaged to the extent that the brand appearing on the | ||||||
19 | beverage container cannot be identified; | ||||||
20 | (3) any beverage container that the Organization has | ||||||
21 | reasonable grounds to believe was procured in another | ||||||
22 | state; or | ||||||
23 | (4) any beverage container for which the Organization | ||||||
24 | has reasonable grounds to believe a redemption refund has | ||||||
25 | already been issued under this Act or under any other | ||||||
26 | state's law, rule, or regulation. |
| |||||||
| |||||||
1 | (l) The Organization may: | ||||||
2 | (1) use, or award grants using, moneys received or | ||||||
3 | generated under this Act for: | ||||||
4 | (A) collecting litter that includes beverage | ||||||
5 | containers; and | ||||||
6 | (B) improving education, outreach, or | ||||||
7 | infrastructure to enhance the recycling or reuse of | ||||||
8 | beverage containers; | ||||||
9 | (2) use moneys received or generated under this Act to | ||||||
10 | directly, or in partnership with a nongovernmental | ||||||
11 | organization, provide services to or enhance the | ||||||
12 | redemption experience of minority or low-income consumers | ||||||
13 | who redeem a beverage container; and | ||||||
14 | (3) use moneys generated under this Act to pay members | ||||||
15 | or support the management and activities of an advisory | ||||||
16 | committee established under Section 65. | ||||||
17 | Section 55. Targets. | ||||||
18 | (a) The Organization shall meet the following redemption | ||||||
19 | targets: | ||||||
20 | (1) beginning with the second full calendar year after | ||||||
21 | eligible beverage containers are sold in the State with | ||||||
22 | the applicable redemption refund value under Section 10, | ||||||
23 | the annual redemption rate from consumers to a beverage | ||||||
24 | container processing mechanism for all redeemable beverage | ||||||
25 | containers is at least 70%; |
| |||||||
| |||||||
1 | (2) beginning with the fourth full calendar year after | ||||||
2 | all beverage containers are sold in the State with the | ||||||
3 | applicable redemption refund value under Section 10, the | ||||||
4 | annual redemption rate from consumers to a beverage | ||||||
5 | container processing mechanism for all redeemable beverage | ||||||
6 | containers is at least 75%; and | ||||||
7 | (3) beginning with the sixth full calendar year after | ||||||
8 | all beverage containers are sold in the State with the | ||||||
9 | applicable redemption refund value under Section 10, the | ||||||
10 | annual redemption rate from consumers to a beverage | ||||||
11 | container processing mechanism for all redeemable beverage | ||||||
12 | containers is at least 85%. | ||||||
13 | (b) The Organization shall meet the following recycling | ||||||
14 | rate targets through material consumers redeem through | ||||||
15 | beverage container processing mechanisms or through material | ||||||
16 | the Organization receives from drop-off facilities or material | ||||||
17 | recovery facilities: | ||||||
18 | (1) beginning with the second full calendar year after | ||||||
19 | eligible beverage containers are sold in the State with | ||||||
20 | the applicable redemption refund value under Section 10, | ||||||
21 | the annual recycling rate for all redeemable beverage | ||||||
22 | containers is at least 70%; | ||||||
23 | (2) beginning with the fourth full calendar year after | ||||||
24 | eligible beverage containers are sold in the State with | ||||||
25 | the applicable redemption refund value under Section 10, | ||||||
26 | the annual recycling rate for all redeemable beverage |
| |||||||
| |||||||
1 | containers is at least 75%; and | ||||||
2 | (3) beginning with the sixth full calendar year after | ||||||
3 | all eligible beverage containers are sold in the State | ||||||
4 | with the applicable redemption refund value under Section | ||||||
5 | 10, the annual recycling rate for all redeemable beverage | ||||||
6 | containers is at least 85%. | ||||||
7 | (c) At any point that a non-covered beverage container is | ||||||
8 | added to the system, the Agency may establish recycling rate | ||||||
9 | targets specific to the added beverage container or beverage | ||||||
10 | containers, and the added beverage container or beverage | ||||||
11 | containers may then not be considered in satisfying the | ||||||
12 | targets in subsection (b). | ||||||
13 | (d) If the Organization does not meet a performance rate | ||||||
14 | target required under subsections (a) through (c) in any | ||||||
15 | calendar year: | ||||||
16 | (1) it must submit to the Agency a revised product | ||||||
17 | stewardship plan no more than 365 days after the data | ||||||
18 | required under Section 60 has most recently been published | ||||||
19 | that showed a performance target required under | ||||||
20 | subsections (a) through (c) was not met, and the Agency | ||||||
21 | review of this revised plan must follow the same | ||||||
22 | guidelines as provided for the initial draft plan in | ||||||
23 | Section 50. The product stewardship plan shall detail the | ||||||
24 | reasons that the performance target was not met and any | ||||||
25 | action the Organization will take to meet the performance | ||||||
26 | target; and |
| |||||||
| |||||||
1 | (2) the Agency shall assess a civil penalty against | ||||||
2 | the Organization for each such violation that is equal to | ||||||
3 | 5 cents for each beverage container comprising the | ||||||
4 | difference between the number of beverage containers that | ||||||
5 | were redeemed or recycled and the total number of beverage | ||||||
6 | containers that, if redeemed or recycled, would have met | ||||||
7 | the applicable performance rate target. | ||||||
8 | (e) If the Organization does not meet all redemption and | ||||||
9 | recycling rate targets under subsections (a) through (c) | ||||||
10 | within 3 years after a product stewardship plan was submitted | ||||||
11 | to the Agency under subsection (d), the Agency shall: | ||||||
12 | (1) assess a civil penalty against the Organization | ||||||
13 | once per calendar year that is equal to 10 cents for each | ||||||
14 | beverage container comprising the difference between the | ||||||
15 | number of beverage containers that were redeemed and the | ||||||
16 | total number of beverage containers that, if redeemed, | ||||||
17 | would have met the performance targets; | ||||||
18 | (2) require the Organization to submit a revised | ||||||
19 | product stewardship plan within 365 days after the data | ||||||
20 | required under Section 60 has most recently been published | ||||||
21 | that showed a performance target required under | ||||||
22 | subsections (a) through (c) was not met within 3 years | ||||||
23 | after a product stewardship plan was submitted to the | ||||||
24 | Agency under subsection (d), and the Agency review of this | ||||||
25 | revised plan must follow the same guidelines as provided | ||||||
26 | for the initial draft plan in Section 50; |
| |||||||
| |||||||
1 | (3) require the Organization to hire a third party to | ||||||
2 | evaluate whether the minimum number of beverage container | ||||||
3 | processing mechanisms required in each county in | ||||||
4 | accordance with Section 20 is sufficient to meet the | ||||||
5 | performance targets; and | ||||||
6 | (4) if the third party evaluation under paragraph (3) | ||||||
7 | determines the minimum number of beverage container | ||||||
8 | processing mechanisms is not sufficient, the third party | ||||||
9 | must in its analysis provide a new minimum number of | ||||||
10 | beverage container processing mechanisms per county that | ||||||
11 | will be sufficient to meet the performance targets, and | ||||||
12 | the Organization shall be responsible for meeting the | ||||||
13 | third-party-determined minimum number in each county. | ||||||
14 | (f) If the Organization does not, within 5 years after a | ||||||
15 | product stewardship plan was submitted to the Agency under | ||||||
16 | subsection (d), meet all recycling and redemption rate targets | ||||||
17 | required under subsections (a) through (c), then: | ||||||
18 | (1) the Organization shall detail on the | ||||||
19 | Organization's website why a new Executive Director of the | ||||||
20 | Organization is not necessary if, at the end of the 5-year | ||||||
21 | period, the same person has acted as Executive Director of | ||||||
22 | the Organization for more than 365 days prior to the end of | ||||||
23 | the relevant 5-year period; | ||||||
24 | (2) the Agency may require certain changes to the | ||||||
25 | product stewardship plan; and | ||||||
26 | (3) the Agency shall assess against the Organization a |
| |||||||
| |||||||
1 | civil penalty once per calendar year equal to 15 cents for | ||||||
2 | each beverage container comprising the difference between | ||||||
3 | the number of beverage containers that were redeemed and | ||||||
4 | the total number of beverage containers that, if redeemed, | ||||||
5 | would have met the performance target. | ||||||
6 | (g) Notwithstanding subsections (d) through (f): | ||||||
7 | (1) the penalty for each performance target required | ||||||
8 | in subsection (d) is not in addition to the penalties | ||||||
9 | authorized in subsections (e) and (f); | ||||||
10 | (2) the Agency may, beyond the amounts required in | ||||||
11 | subsections (e) and (f), for the violations specified in | ||||||
12 | subsections (e) and (f) assess once per calendar year an | ||||||
13 | additional annual penalty of up to $50,000,000 if the | ||||||
14 | Organization does not in a particular year eliminate at | ||||||
15 | least 25% of the gap in the previous year from achieving | ||||||
16 | any performance rate target it failed to achieve; and | ||||||
17 | (3) the Agency shall retroactively assess penalties | ||||||
18 | against the Organization if the verification in Section 60 | ||||||
19 | finds that the Organization performed worse than initially | ||||||
20 | stated in its public disclosures, and these retroactive | ||||||
21 | penalties shall not result in the Organization paying in | ||||||
22 | total more than it would have paid in penalties with the | ||||||
23 | verified performance levels. | ||||||
24 | Section 60. Reporting. | ||||||
25 | (a) On or before July 1 of each calendar year, beginning |
| |||||||
| |||||||
1 | July 1 of the first full calendar year after covered beverage | ||||||
2 | containers have a redemption refund value under this Act, the | ||||||
3 | Organization shall submit to the Agency and make publicly | ||||||
4 | available on its website: | ||||||
5 | (1) the number of beverage containers sold in the | ||||||
6 | State by material type, as well as, for each quarter of the | ||||||
7 | year covered by the report and the quarters of each prior | ||||||
8 | year for at least the preceding 5 years, to the extent data | ||||||
9 | is available, the proportion of beverage containers sold | ||||||
10 | in the State that are capable of being recycled, refilled, | ||||||
11 | or reused; | ||||||
12 | (2) for each quarter of the year covered by the report | ||||||
13 | and the quarters of each prior year for at least the | ||||||
14 | preceding 5 years, and to the extent data is available, | ||||||
15 | the percentage of the total amount of beverage containers | ||||||
16 | sold in the State that each beverage container material | ||||||
17 | type represents; | ||||||
18 | (3) the percentage of the total amount of fees charged | ||||||
19 | to members that each beverage container material type | ||||||
20 | represents for each quarter of the year covered by the | ||||||
21 | report and the quarters of each prior year for at least the | ||||||
22 | preceding 5 years, to the extent data is available; | ||||||
23 | (4) the number of beverage containers, by material | ||||||
24 | type, redeemed for each quarter of the year covered by the | ||||||
25 | report and the quarter of each prior year for at least the | ||||||
26 | preceding 5 years, to the extent data is available; |
| |||||||
| |||||||
1 | (5) the percentage of beverage containers redeemed | ||||||
2 | that were recycled, by material type, and that were | ||||||
3 | reused, by material type, for each quarter of the report | ||||||
4 | year and for the quarters of each of at least the last 5 | ||||||
5 | prior years, to the extent data is available; | ||||||
6 | (6) the number of beverage containers redeemed at each | ||||||
7 | beverage container processing mechanism provided by the | ||||||
8 | Organization under this Act; | ||||||
9 | (7) the buyers by material type to whom the | ||||||
10 | Organization sold beverage container materials; | ||||||
11 | (8) the end-product each beverage container type | ||||||
12 | became or likely became; | ||||||
13 | (9) the percentage of the total amount of moneys | ||||||
14 | redeemed for each beverage container material type; | ||||||
15 | (10) each redemption location in the State; | ||||||
16 | (11) the means of redemption at each redemption | ||||||
17 | location in the State; | ||||||
18 | (12) the total expenses of the Organization; | ||||||
19 | (13) the total revenues of the Organization; | ||||||
20 | (14) the total reserves of the Organization; | ||||||
21 | (15) the actual or estimated cost to the Organization | ||||||
22 | per beverage container redeemed; | ||||||
23 | (16) the number of redemption locations that provide | ||||||
24 | services or an enhanced redemption experience for minority | ||||||
25 | or low-income consumers; | ||||||
26 | (17) aggregated Organization employee demographic |
| |||||||
| |||||||
1 | information, including information that can legally be | ||||||
2 | disclosed and that provides insight into the | ||||||
3 | Organization's performance on diversity, equity, and | ||||||
4 | inclusion; | ||||||
5 | (18) the number of consumer complaints per month, by | ||||||
6 | redemption location, during the previous calendar year and | ||||||
7 | each prior year for at least the preceding 5 years, to the | ||||||
8 | extent data is available; | ||||||
9 | (19) the total number of individual consumers per | ||||||
10 | month who filed complaints, by redemption location, during | ||||||
11 | the previous calendar year and each prior year for at | ||||||
12 | least the preceding 5 years, to the extent data is | ||||||
13 | available; | ||||||
14 | (20) a list of all members, their brands of beverage | ||||||
15 | containers, and a breakdown of each member's beverage | ||||||
16 | container packaging mix by beverage container type during | ||||||
17 | the previous calendar year and each prior year for at | ||||||
18 | least the preceding 5 years, to the extent data is | ||||||
19 | available; | ||||||
20 | (21) the buyers of the plastic film waste, if any, | ||||||
21 | generated from the standard bag sold by the Organization | ||||||
22 | to consumers for redemption and how buyers may recycle the | ||||||
23 | plastic film waste; | ||||||
24 | (22) the number of individuals and entities registered | ||||||
25 | to receive electronic deposits of redemption refunds under | ||||||
26 | this Act; |
| |||||||
| |||||||
1 | (23) the results of the survey of consumers for whom | ||||||
2 | refunds paid under this Section constitute a significant | ||||||
3 | portion of their income; and | ||||||
4 | (24) the name of each member of the Organization's | ||||||
5 | Board of Directors. | ||||||
6 | (b) The Organization may rely on reporting by members for | ||||||
7 | information used to comply with the reporting requirements of | ||||||
8 | this Act, but shall note in its annual report which of the | ||||||
9 | metrics described in subsection (a) are based on member | ||||||
10 | reporting. | ||||||
11 | (c) The Organization shall hire by June 1 of even-numbered | ||||||
12 | years an independent third-party organization to verify within | ||||||
13 | 6 months of its hiring the previous 2 calendar years of data | ||||||
14 | publicly disclosed under subsection (a). | ||||||
15 | (d) Once per calendar year, the Agency may require | ||||||
16 | verification of information disclosed during the previous | ||||||
17 | calendar year by the Organization under this Act. The | ||||||
18 | verification shall: | ||||||
19 | (1) occur only after being notified by the | ||||||
20 | Organization on or before August 1 of that calendar year | ||||||
21 | that the Agency is requiring independent third-party | ||||||
22 | verification; | ||||||
23 | (2) be performed by an independent third party; | ||||||
24 | (3) be limited in scope to information that: | ||||||
25 | (A) the Organization is required to report under | ||||||
26 | this Act; |
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1 | (B) the Agency specifies for third-party | ||||||
2 | verification under this subsection; and | ||||||
3 | (C) appeared, or should have appeared, in the | ||||||
4 | Organization's annual report for the previous calendar | ||||||
5 | year; and | ||||||
6 | (4) be conducted on or before December 31 of the | ||||||
7 | calendar year in which it is required by the Agency. | ||||||
8 | (e) With the data verification activities under | ||||||
9 | subsections (c) and (d), the Organization shall: | ||||||
10 | (1) pay the full cost of the third-party verification; | ||||||
11 | and | ||||||
12 | (2) provide the independent third party with full | ||||||
13 | access to the underlying data supporting the disclosure in | ||||||
14 | subsection (a)that is being verified. | ||||||
15 | (f) The Organization must establish safeguards to ensure | ||||||
16 | members do not have access to information regarding: | ||||||
17 | (1) the price paid by any individual buyer for | ||||||
18 | beverage container material sold by the Organization under | ||||||
19 | this Act; and | ||||||
20 | (2) the amount of each beverage container material | ||||||
21 | sold by the Organization to each individual buyer. | ||||||
22 | (g) On or before the last day of February of each calendar | ||||||
23 | year, each member of the Organization must report to the | ||||||
24 | Organization all data necessary to satisfy the disclosure | ||||||
25 | requirements of this Section. The Organization shall ensure | ||||||
26 | that data provided by members under this subsection is |
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1 | confidential. | ||||||
2 | Section 65. Operations Advisory Committee; Equity and | ||||||
3 | Access Advisory Committee. | ||||||
4 | (a) The Organization shall establish an Operations | ||||||
5 | Advisory Committee that represents a range of interested and | ||||||
6 | engaged persons and entities, including, at a minimum, one of | ||||||
7 | each of the following: | ||||||
8 | (1) a beverage container manufacturer or a beverage | ||||||
9 | container manufacturer's trade association that rotates | ||||||
10 | between the leading beverage container types; | ||||||
11 | (2) a beverage producer or a beverage producer's trade | ||||||
12 | association; | ||||||
13 | (3) a unit of local government or group of units of | ||||||
14 | local government; | ||||||
15 | (4) the State; | ||||||
16 | (5) an environmental nonprofit organization; | ||||||
17 | (6) an entity that buys beverage containers from, or | ||||||
18 | recycles them for, the Organization; and | ||||||
19 | (7) a retailer or a retailer's trade association. | ||||||
20 | (b) The Operations Advisory Committee may: | ||||||
21 | (1) provide written or oral comments directly to the | ||||||
22 | Board of Directors and the Executive Director no more than | ||||||
23 | 4 times a year; and | ||||||
24 | (2) every even-numbered calendar year, submit to the | ||||||
25 | Organization a written report that the Organization must |
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1 | publish on its website upon request by the Operations | ||||||
2 | Advisory Committee and that contains: | ||||||
3 | (A) the Operations Advisory Committee's feedback | ||||||
4 | on the operation of the Organization; and | ||||||
5 | (B) the Operations Advisory Committee's feedback | ||||||
6 | on the redemption refund system established under this | ||||||
7 | Act. | ||||||
8 | (c) The Organization shall establish an Equity and Access | ||||||
9 | Advisory Committee that represents persons who can help ensure | ||||||
10 | the Organization's operations appropriately consider the | ||||||
11 | diverse needs and cultures of people who redeem beverage | ||||||
12 | containers, including, at a minimum, one of each of the | ||||||
13 | following: | ||||||
14 | (1) an advocate for homeless persons; | ||||||
15 | (2) a governmental social services office; | ||||||
16 | (3) a nongovernmental organization that advocates on | ||||||
17 | behalf of one or more cultural groups; | ||||||
18 | (4) a nongovernmental organization with a focus on | ||||||
19 | environmental justice; and | ||||||
20 | (5) a specialist in diversity and inclusion. | ||||||
21 | (d) The Equity and Access Advisory Committee may: | ||||||
22 | (1) provide written or oral comments directly to the | ||||||
23 | Board of Directors and the Executive Director no more than | ||||||
24 | 4 times a year; and | ||||||
25 | (2) every even-numbered calendar year, submit to the | ||||||
26 | Organization a written report that the Organization must |
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1 | publish on its website upon request by the Equity and | ||||||
2 | Access Advisory Committee and that contains: | ||||||
3 | (A) the Equity and Access Advisory Committee's | ||||||
4 | feedback on whether the Organization is appropriately | ||||||
5 | considering the diverse needs and cultures of people | ||||||
6 | who redeem beverage containers under this Act; and | ||||||
7 | (B) the Equity and Access Advisory Committee's | ||||||
8 | suggestions on how the Organization can improve in | ||||||
9 | terms of equity and access. | ||||||
10 | Section 70. Reuse study. | ||||||
11 | (a) The Agency shall conduct a study on the infrastructure | ||||||
12 | that is needed in the State to support a robust system for | ||||||
13 | reusable beverage containers and on any changes that would be | ||||||
14 | required in order to ensure effective integration of reusable | ||||||
15 | beverage containers in the deposit return system. | ||||||
16 | (b) The study required in subsection (a) shall be | ||||||
17 | published on the Agency's website and filed with the General | ||||||
18 | Assembly no later than 2 years after the effective date of this | ||||||
19 | Act. | ||||||
20 | (c) The cost of the study shall be included in a | ||||||
21 | reimbursement request to the Organization under Section 80. | ||||||
22 | Section 75. Beverage container grant program. | ||||||
23 | (a) The Organization shall transfer 5% of the revenue from | ||||||
24 | unclaimed redemption refunds in the previous calendar year to |
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1 | the Agency by July 1 of each calendar year, starting with the | ||||||
2 | first full calendar year after one or more beverage container | ||||||
3 | types is sold with a redemption refund value under this Act, to | ||||||
4 | fund a beverage container grant program. | ||||||
5 | (b) The Agency, with the money available in the beverage | ||||||
6 | container grant program, shall annually fund, through a | ||||||
7 | competitive grant process, education, infrastructure, or | ||||||
8 | litter clean-up activities that increase the reuse or | ||||||
9 | recycling of beverage containers or reduce the litter from | ||||||
10 | beverage containers in the State. | ||||||
11 | (c) The Agency shall not give grants such that any one | ||||||
12 | beverage container type receives more than 25% of the benefits | ||||||
13 | from the activities funded. | ||||||
14 | (d) The following entities are eligible for a grant under | ||||||
15 | the beverage container grant program: | ||||||
16 | (1) a school or an institution of higher education; | ||||||
17 | (2) a nonprofit organization; | ||||||
18 | (3) a county or municipal corporation; | ||||||
19 | (4) a federally recognized tribe; | ||||||
20 | (5) a for-profit organization; and | ||||||
21 | (6) a public-private partnership. | ||||||
22 | (e) The cost to administer the beverage container grant | ||||||
23 | program shall be included in a reimbursement request to the | ||||||
24 | Organization under Section 80. | ||||||
25 | Section 80. Reimbursement to the Agency. |
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1 | (a) The Organization shall reimburse the Agency for costs | ||||||
2 | incurred by the Agency under this Act, not to exceed $500,000 | ||||||
3 | per year, in accordance with paragraph (4) of subsection (i) | ||||||
4 | of Section 50. | ||||||
5 | (b) The Organization shall reimburse the Agency for | ||||||
6 | enforcement costs incurred by the Agency under this Act, in | ||||||
7 | accordance with paragraph (5) of subsection (i) of Section 50, | ||||||
8 | that may take the total amount reimbursed by the Organization | ||||||
9 | to the Agency beyond $500,000 per year as long as the funded | ||||||
10 | enforcement activities identified violations of this Act and | ||||||
11 | resulted in penalties under this Act. | ||||||
12 | Section 85. Enforcement. | ||||||
13 | (a) In addition to any other applicable civil penalties or | ||||||
14 | criminal fines, the Agency may impose a civil penalty for each | ||||||
15 | day that a violation of this Act, as may be defined by | ||||||
16 | subsequent rulemaking, occurs that is: | ||||||
17 | (1) $100 for the first violation of any requirement | ||||||
18 | under this Act; and | ||||||
19 | (2) not more than $1,000 for each subsequent violation | ||||||
20 | of that requirement. | ||||||
21 | (b) A person who takes any of the following actions with | ||||||
22 | the intent to knowingly defraud is subject to subsection (c), | ||||||
23 | along with any other federal, State, or local enforcement | ||||||
24 | action arising from the action: | ||||||
25 | (1) redeeming out-of-state beverage containers, |
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| |||||||
1 | rejected beverage containers, line defects, or beverage | ||||||
2 | containers that have already been redeemed; | ||||||
3 | (2) seeking a redemption refund under this Act by | ||||||
4 | returning an already-redeemed beverage container at a | ||||||
5 | redemption location; | ||||||
6 | (3) bringing out-of-state beverage containers, | ||||||
7 | rejected beverage containers, or line defects to the State | ||||||
8 | marketplace for redemption; or | ||||||
9 | (4) selling beverage containers not distributed or | ||||||
10 | imported into the State by a member of the Organization. | ||||||
11 | (c) A violation of subsection (b) resulting in financial | ||||||
12 | gain by the violator shall subject the violator to the | ||||||
13 | following: | ||||||
14 | (1) If the amount of moneys gained is equal to or less | ||||||
15 | than $950, the violator is subject to: | ||||||
16 | (A) imprisonment in a county jail for not more | ||||||
17 | than 6 months; | ||||||
18 | (B) a criminal fine not exceeding $1,000; or | ||||||
19 | (C) both the fine and imprisonment described in | ||||||
20 | subparagraphs (A) and (B). | ||||||
21 | (2) If the amount of moneys gained is more than $950, | ||||||
22 | the violator is subject to: | ||||||
23 | (A) imprisonment in a county jail for not more | ||||||
24 | than one year; | ||||||
25 | (B) a criminal fine not exceeding $10,000; or | ||||||
26 | (C) both the fine and imprisonment described in |
| |||||||
| |||||||
1 | subparagraphs (A) and (B). | ||||||
2 | (d) The Agency may bring a civil action to enjoin the | ||||||
3 | distribution, importation, or sale in the State of a beverage | ||||||
4 | container in violation of this Act. | ||||||
5 | (e) The Agency may assess a penalty of up to $30,000 in a | ||||||
6 | calendar year against the Organization for each redemption | ||||||
7 | location at which the Organization receives more than an | ||||||
8 | average of 100 individuals' complaints per month, according to | ||||||
9 | the public reporting required under Section 60. | ||||||
10 | (f) After notification from the Agency of noncompliance | ||||||
11 | with this Act and a 60-day cure period, the Agency may | ||||||
12 | administratively impose a civil penalty per day to any | ||||||
13 | distributor or importer who fails to participate as an | ||||||
14 | Organization member as required under Section 10. The civil | ||||||
15 | penalty per day shall be the greater of $10,000 or 10 cents per | ||||||
16 | beverage container sold by the distributor or importer in the | ||||||
17 | State while not a member. Any distributor or importer who | ||||||
18 | incurs a penalty under this Section may appeal the penalty to | ||||||
19 | the Agency. | ||||||
20 | (g) All penalties the State recovers under this Act: | ||||||
21 | (1) up to the first $5,000,000 per calendar year, | ||||||
22 | shall only be used to administer this Act; and | ||||||
23 | (2) beyond the first $5,000,000 per calendar year, | ||||||
24 | shall only be put toward the beverage container grant | ||||||
25 | program created in Section 75. |
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| |||||||
1 | Section 90. Administration. The Agency shall administer | ||||||
2 | and enforce the provisions of this Act not otherwise allocated | ||||||
3 | to another person or entity under this Act.". |