Full Text of SB0085 103rd General Assembly
SB0085sam003 103RD GENERAL ASSEMBLY | Sen. Laura M. Murphy Filed: 3/8/2024 | | 10300SB0085sam003 | | LRB103 05311 BDA 70608 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 | | "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 |
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| 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 |
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| 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. |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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. |
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| 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%; |
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| 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 |
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| 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 |
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| 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; |
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| 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 |
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| 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 |
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| 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; |
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| 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 |
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| 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; |
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| 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 |
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| 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.". |
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