Full Text of SB0085 103rd General Assembly
SB0085sam002 103RD GENERAL ASSEMBLY | Sen. Laura M. Murphy Filed: 11/15/2023 | | 10300SB0085sam002 | | LRB103 05311 LNS 65224 a |
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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 |
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| 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 |
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| 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 |
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| 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; |
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| 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. |
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| 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 |
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| 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 |
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| 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. |
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| 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 |
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| 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 |
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| 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 |
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| 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; |
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| 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 |
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| 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: |
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| 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; |
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| 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 |
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| 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. |
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| 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.". |
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