103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0085

 

Introduced 1/20/2023, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the State Beverage Container Recycling Refunds Act. Establishes the Distributor and Importer Responsibility Organization to implement a beverage container recycling redemption refund program to issue redemption refunds to consumers for beverage containers. Provides avenues for redeeming refunds under the Act. Contains labeling requirements. Sets forth performance targets for the Organization. Contains reporting requirements. Requires the Organization to establish an Operations Advisory Committee and an Equity and Access Advisory Committee. Contains provisions concerning reimbursement, enforcement, and administration and other provisions.


LRB103 05311 CPF 50329 b

 

 

A BILL FOR

 

SB0085LRB103 05311 CPF 50329 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the State
5Beverage Container Recycling Refunds Act.
 
6    Section 5. Definitions. In this Act:
7    "Agency" means the Illinois Environmental Protection
8Agency.
9    "Beverage" means any drinkable liquid intended for human
10oral consumption. "Beverage" does not include:
11        (1) a drug regulated under the Federal Food, Drug, and
12    Cosmetic Act (21 U.S.C. 301 et seq.);
13        (2) infant formula; or
14        (3) a meal replacement liquid.
15    "Beverage container" means a prepackaged container, such
16as a carton, pouch, or aseptic packaging which:
17        (1) is made of any multimaterial or material,
18    including, but not limited to, glass, plastic, or metal;
19        (2) is designed to be used for beverage storage one or
20    more times before being recycled; and
21        (3) has a volume of not more than one gallon.
22    "Beverage container processing mechanism" means any manual
23or technological means by which empty beverage containers are

 

 

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1properly identified and processed.
2    "Beverage producer" means a person who bottles, cans, or
3otherwise fills beverage containers to sell to distributors,
4importers, or retailers.
5    "Consumer" means a person who purchases a beverage
6container in the State for use or consumption.
7    "Distributor" means a person, including, but not limited
8to, a beverage producer, who engages in the sale of beverage
9containers to a retailer in the State.
10    "Drop-off facility" means a specific area where
11individuals may bring household recyclable materials to be
12sorted into material-specific receptacles.
13    "Importer" means a retailer or beverage producer who
14directly imports beverage containers into the State.
15    "Line breakage" means a beverage container that becomes
16defective or damaged during manufacturing, is not meant for
17sale, and is not eligible for redemption.
18    "Material recovery facility" means a facility that
19receives, separates, and sells or otherwise distributes
20postconsumer materials for recycling.
21    "Member" means a distributor or importer who has joined
22the Organization and paid all applicable fees.
23    "Nonprofit organization" means an organization established
24and operated as a nonprofit organization under Section
25501(c)(3) of the Internal Revenue Code of 1986.
26    "Organization" means the Distributor and Importer

 

 

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1Responsibility Organization established under Section 50.
2    "Retailer" means a person or business in the State who
3engages in the sale of beverage containers to a consumer.
4    "Store" means an individual location where a retailer
5sells beverage containers.
 
6    Section 10. Beverage container recycling redemption refund
7program.
8    (a) Except as otherwise provided in this Section, each
9beverage container sold or offered for sale in the State shall
10have the following redemption refund value:
11        (1) ten cents for a beverage container of 24 fluid
12    ounces or less; and
13        (2) fifteen cents for a beverage container of more
14    than 24 fluid ounces.
15    (b) The Agency may change each redemption refund value
16under subsection (a), by rule, so long as the changed refund
17value is not based on the type of postconsumer material being
18recycled, not more often than:
19        (1) once during any 10-year period and in consultation
20    with the Organization; and
21        (2) once during any 5-year period and after receiving
22    a request from the Organization for a change to one or both
23    redemption refund amounts, if the Agency's change conforms
24    with the Organization's request.
25    (c) Prior to any change in the redemption refund value

 

 

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1under subsection (b), the Agency must undergo a notice and
2comment review period with at least 60 days' notice to the
3public.
4    (d) If the redemption rate publicly reported by the
5Organization under Section 60 does not reach 85% for 3
6consecutive calendar years after being required to do so under
7paragraph (3) of subsection (a) of Section 55, then each
8beverage container sold or offered for sale in the State shall
9have the following redemption refund value:
10        (1) fifteen cents for a beverage container of 24 fluid
11    ounces or less; and
12        (2) twenty cents for a beverage container of more than
13    24 fluid ounces.
14    (e) Any moneys designated for redemption refunds but that
15are not claimed by consumers shall be used by the Organization
16to support its administrative costs and to perform the
17activities required under this Act.
18    (f) A person may receive a redemption refund under this
19Act only for a beverage container submitted in a standard bag
20that is sold by the Organization and meets any requirements
21determined by the Organization.
 
22    Section 15. Material flows. When a consumer redeems a
23beverage container in accordance with this Act, the
24Organization becomes the owner of that beverage container and
25may:

 

 

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1        (1) sell it to a buyer of its choosing; or
2        (2) on its own or via a third party, process the
3    beverage container for refill if it is reusable.
 
4    Section 20. Means of redemption.
5    (a) A retailer who operates a store must:
6        (1) if the store has 30 or more parking spots
7    available for its customers' use, permit the Organization
8    to:
9            (A) collect bags of redeemable beverage containers
10        in a space of the retailer's choosing within the
11        available parking spots; and
12            (B) install, maintain, and service at least one
13        other beverage container processing mechanism inside
14        or immediately outside of the store on property that
15        the retailer owns or leases for operation of the
16        store; or
17        (2) if the store has fewer than 30 parking spots
18    available for its customers' use, permit the Organization
19    to install, maintain, and service at least 2 beverage
20    container processing mechanisms inside or immediately
21    outside of the store on property that the retailer owns or
22    leases for operation of the store; or
23        (3) if the retailer does not, within 90 days after
24    receiving a request in a reasonable manner from the
25    Organization, notify the Organization that the retailer

 

 

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1    will permit the Organization to perform an activity under
2    paragraph (1) or (2) or accept beverage containers at the
3    store, pay a civil penalty representing the applicable
4    redemption refund value described in Section 10 in the
5    following amounts:
6            (A) if the store has an area equal to or greater
7        than 5,000 square feet, the redemption refund value of
8        up to 250 beverage containers per day that the
9        Organization is unable to perform that activity
10        because of the retailer's failure to notify the
11        Organization;
12            (B) if the store has an area that is more than
13        1,000 square feet and less than 5,000 square feet, the
14        redemption refund value of up to 50 beverage
15        containers per day that the Organization is unable to
16        perform that activity because of the retailer's
17        failure to notify the Organization; and
18            (C) if the store has an area that is 1,000 square
19        feet or less and sells more than one million beverage
20        containers per year, the redemption refund value of up
21        to 25 beverage containers per day that the
22        Organization is unable to perform that activity
23        because of the retailer's failure to notify the
24        Organization.
25    (b) A retailer need not meet the requirements under
26subsection (a) until the Organization requests permission to

 

 

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1install, maintain, and service a beverage container processing
2mechanism inside or immediately outside of the store on
3property that the retailer owns or leases for operation of the
4store.
5    (c) Notwithstanding subsections (a) and (b), a retailer
6shall, upon request by the Organization regarding a particular
7store of the retailer:
8        (1) offer for sale at that particular store the
9    standard bags described under subsection (f) of Section
10    10;
11        (2) permit the Organization to install, service, and
12    operate at least one beverage container processing
13    mechanism in a space inside or immediately outside of that
14    store on property that the retailer owns or leases for
15    operation of the store; and
16        (3) permit the Organization to install, service, and
17    operate a self-service kiosk that prints redemption
18    vouchers inside or immediately outside of that particular
19    store.
20    (d) Except as provided under subsection (f), a retailer is
21exempt from the requirements of this Act for a store that the
22retailer operates, is 1,000 square feet or fewer, and at which
23less than one million beverage containers are sold per year.
24    (e) A retailer is exempt from the requirements of this
25Section for a store that the retailer operates and that:
26        (1) primarily prepares food for sale; or

 

 

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1        (2) sells beverage containers to consumers primarily
2    through stand-alone vending machines or by similar means.
3    (f) Notwithstanding subsections (a) through (e), for zip
4codes in the State with a population density greater than
530,000 residents per square mile, the Organization must
6install, service, and operate enough beverage container
7processing mechanisms to ensure that there is one beverage
8container processing mechanism per 500 people.
9    (g) Any facility that the Organization sets up in the
10State to efficiently aggregate, sort, and process the material
11collected at various redemption locations under this Act:
12        (1) shall accept, pursuant to a reasonable process the
13    Organization may establish, beverage containers eligible
14    for redemption that are submitted in the Organization's
15    standard redemption bag, as designated by the
16    Organization, by a nonprofit organization; and
17        (2) may provide a nonprofit organization with a
18    premium to be determined by the Organization.
19    (h) The public shall have access to redeem beverage
20containers in accordance with this Section for not less than
2110 hours each day, except on federal, State, or local holidays
22and except at a facility set up by the Organization to
23aggregate, sort, and process redeemed beverage containers.
24    (i) The Organization must provide information to the
25public detailing how consumers can alert the Organization to
26problems at beverage container processing mechanisms operated

 

 

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1by the Organization. The information shall be provided via:
2        (1) the Organization's website;
3        (2) clearly visible signage at least 5 feet by 5 feet
4    at each redemption location required under this Section;
5    and
6        (3) clearly visible signage at least 2 feet by 2 feet
7    placed on or within 5 feet of each beverage container
8    processing mechanism.
9    (j) The Organization may establish reasonable terms and
10conditions for the use of a beverage container processing
11mechanism.
 
12    Section 25. Labeling requirements.
13    (a) A beverage producer, distributor, or importer shall
14include, anywhere that is clearly visible on the top or side of
15each beverage container sold by the beverage producer,
16distributor, or importer in the State, the abbreviation "RV".
17    (b) The Organization may require that any beverage
18producer, distributor, or importer include, on any space that
19is on the top or side of each beverage container sold in the
20State, the clearly visible abbreviation of the State and
21applicable redemption refund value under Section 10.
22    (c) A beverage producer, distributor, or importer may
23include a barcode or unique code verification on a beverage
24container to automatically identify it.
 

 

 

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1    Section 30. Timing.
2    (a) A beverage container that is at least 90% aluminum,
3glass, high density polyethylene plastic, or polyethylene
4terephthalate and that is sold in the State must be redeemable
5for the applicable redemption refund value under Section 10 by
6no later than 2 years after the effective date of this Act.
7    (b) A beverage container not described under subsection
8(a) and that is sold in the State must be redeemable for the
9applicable redemption refund value under Section 10 by no
10later than 3 years after the effective date of this Act.
11    (c) The Organization may permit up to an additional 365
12days to meet the deadlines under subsections (a) and (b).
 
13    Section 35. Prohibitions.
14    (a) No person shall distribute, import, or sell beverage
15containers in or into the State except in compliance with this
16Act.
17    (b) No person shall redeem a beverage container under this
18Act that was not sold in the State to a consumer in the State.
 
19    Section 40. Agency duties. On or before October 1 of each
20year after the effective date of this Act, the Agency shall
21identify and communicate to the Organization the Agency's
22total estimated annual cost to implement, administer, and
23enforce this Act, including the cost of adopting rules under
24this Act, in the next calendar year, after:

 

 

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1        (1) subtracting the moneys that the Agency collected
2    from penalties assessed under this Act, which shall be put
3    toward fulfilling the Agency's responsibilities under this
4    Act in the next calendar year; and
5        (2) adding any expenses incurred in fulfilling the
6    Agency's responsibilities under this Act that are not
7    covered by the annual cost from the previous year.
 
8    Section 45. Drop-off facility and material recovery
9facility duties.
10    (a) Each drop-off facility or material recovery facility
11operating in the State, or outside of the State if the majority
12of the material it processes comes from the State, may submit
13the following information to the Organization:
14        (1) the amount in tons of residential recyclable
15    material that the facility received for processing in the
16    previous calendar year; and
17        (2) an estimate of the amount in tons of residential
18    recyclable material that the facility received from the
19    State.
20    (b) The optional information detailed in subsection (a)
21shall be submitted on or before April 1 and shall only pertain
22to the previous full calendar year.
 
23    Section 50. Distributor and Importer Responsibility
24Organization.

 

 

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1    (a) All distributors and importers shall join as members
2of a Distributor and Importer Responsibility Organization. A
3distributor or importer operating in violation of this
4requirement is subject to penalties described in Section 75.
5The Organization must be established and operated as a
6nonprofit organization or a cooperative corporation.
7    (b) Only one Organization may operate in the State. The
8Organization may decide to operate jointly with similar
9organizations. The Organization shall elect a governing Board
10of Directors of the Organization comprised of Organization
11members. The Organization shall be led by an Executive
12Director elected by the Board of Directors of the
13Organization.
14    (c) The Organization shall charge a membership fee that
15funds the Organization's costs of operation minus unclaimed
16redemption refunds or any other revenue sources that the
17Organization may develop. The Organization shall charge
18membership fees that vary by material type and that reflect:
19        (1) the cost of collecting, sorting, and processing
20    each beverage container type; and
21        (2) the number of units of each beverage container
22    type that each member distributes or sells in the State.
23    (d) The Organization shall refund members the moneys from
24revenue generated from the sale of each beverage container
25type's scrap based on the percentage of each beverage
26container type that each member distributes or sells in the

 

 

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1State. However, if such refunds are not feasible, the
2Organization shall provide a credit to members against the
3fees charged under this Act in an amount equal to that which
4each member would have received as a refund.
5    (e) The Organization shall publish publicly on its
6website:
7        (1) within 18 months after the effective date of this
8    Act, an initial plan for how the Organization will meet
9    its requirements under this Act over the next 5 years,
10    including the performance targets specified in Section 55;
11    and
12        (2) no later than every 5 years after publication of
13    the initial plan under paragraph (1), an updated plan on
14    how the Organization will continue to meet its
15    requirements under this Act, including the performance
16    targets specified in Section 55.
17    (f) The Organization shall pay:
18        (1) for any beverage container processing mechanism or
19    self-service kiosk that the Organization chooses to
20    install, maintain, and operate:
21            (A) with retailer permission granted pursuant to
22        Section 20; or
23            (B) at any location to meet or exceed:
24                (i) the performance targets under Section 55;
25            or
26                (ii) the beverage container processing

 

 

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1            mechanism requirement under subsection (f) of
2            Section 20; and
3        (2) for any facilities in the State necessary to
4    efficiently aggregate, sort, and process the beverage
5    containers collected at redemption locations under this
6    Act;
7        (3) to upkeep a list and map on its website of all
8    redemption locations and the redemption options available
9    at each redemption location;
10        (4) by December 31 of each year, an annual installment
11    to the Agency according to the formula under Section 40,
12    but not to exceed $500,000 per year; the installment shall
13    fund the Agency's anticipated costs in the following year
14    to implement, administer, and enforce this Act, including
15    adopting rules under this Act;
16        (5) a credit to consumers for the cost of the standard
17    bags described under subsection (f) of Section 10; and
18        (6) beginning during the first full year and ending
19    the fifth full year after one or more beverage container
20    types is sold with a redemption refund value under this
21    Act, direct annual payments by July 1 of each calendar
22    year to drop-off facility operators and material recovery
23    facility operators who choose to submit information under
24    Section 45; each payment shall:
25            (A) equal 10% of the scrap value from the beverage
26        container material the Organization sold in the

 

 

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1        preceding calendar year; and
2            (B) be based on the data submitted by drop-off
3        facility operators or material recovery facility
4        operators under Section 45.
5    (g) If the standard bag the Organization sells to
6consumers under subsection (f) of Section 10 is made of
7plastic film, the Organization shall:
8        (1) ensure that the standard bag sold is comprised of
9    a minimum of 50% recycled content; and
10        (2) demonstrate to the Agency that the plastic film
11    waste from the standard bags will be recycled in the best
12    commercially available manner.
13    (h) The Organization is not required to pay a redemption
14refund under this Act for:
15        (1) any beverage container that visibly contains or is
16    visibly contaminated by a substance other than water,
17    residue of the beverage contained within the beverage
18    container as sold by a retailer to a consumer, or dust;
19        (2) any beverage container that is crushed, broken, or
20    damaged to the extent that the brand appearing on the
21    beverage container cannot be identified;
22        (3) any beverage container that the Organization has
23    reasonable grounds to believe was procured in another
24    state; or
25        (4) any beverage container for which the Organization
26    has reasonable grounds to believe a redemption refund has

 

 

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1    already been issued under this Act or under any other
2    state's law, rule, or regulation.
3    (i) The Organization may:
4        (1) use, or award grants using, moneys received or
5    generated under this Act for:
6            (A) litter clean-up; and
7            (B) education and outreach on recycling beverage
8        containers; and
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;
14        (3) to the extent allowed by law, distribute to its
15    members moneys received or generated under this Act during
16    a fiscal year if:
17            (A) the Organization's revenues under this Act
18        exceeded the costs of carrying out the Organization's
19        requirements under this Act by more than 10%; and
20            (B) after distributing the moneys to members, the
21        Organization's nondistributed revenues comprise at
22        least 110% of the costs of carrying out the
23        Organization's requirements under this Act; and
24        (4) 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. Performance targets.
2    (a) The Organization shall meet the following performance
3targets:
4        (1) Beginning during the second full calendar year
5    after all beverage containers are sold in the State with
6    the applicable redemption refund value under Section 10,
7    at least a 70% annual redemption rate for all beverage
8    containers.
9        (2) Beginning with the fourth full calendar year after
10    all beverage containers are sold in the State with the
11    applicable redemption refund value under Section 10, at
12    least a 75% annual redemption rate for all beverage
13    containers.
14        (3) Beginning during the sixth full calendar year
15    after all beverage containers are sold in the State with
16    the applicable redemption refund value under Section 10,
17    at least an 85% annual redemption rate for all beverage
18    containers.
19        (4) Beginning during the eighth full calendar year
20    after all beverage containers are sold in the State with
21    the applicable redemption refund value under Section 10,
22    at least an 90% annual redemption rate for all beverage
23    containers, including all beverage containers recycled
24    under a curbside recycling program in the State.
25    (b) If the Organization does not meet a performance target

 

 

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1required under subsection (a), it must submit to the Agency a
2product stewardship plan no more than 365 days after the data
3required under subsection (e) of Section 50 has most recently
4been published. The product stewardship plan shall detail the
5reason that the performance target was not met and any action
6the Organization will take to meet the performance target.
7    (c) The product stewardship plan described in subsection
8(b) must be modified each year in which a performance target
9required under subsection (a) is not met by the Organization.
10If the Organization does not meet a performance target
11required under subsection (a) during a period of 3 years after
12a product stewardship plan was submitted to the Agency under
13subsection (b), a new product stewardship plan must be
14submitted by the Organization.
15    (d) If the Organization does not meet a performance target
16under subsection (a) during a period of 3 years after a product
17stewardship plan was submitted to the Agency under subsection
18(b), the Agency may:
19        (1) assess a penalty against the Organization once per
20    calendar year of up to 10 cents for each beverage
21    container comprising the difference between the number of
22    beverage containers that were redeemed and the total
23    number of beverage containers that, if redeemed, would
24    have met the performance target; and
25        (2) require the Organization to submit a revised
26    product stewardship plan.

 

 

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1    (e) If the Organization does not meet a performance target
2required under subsection (a) during a period of 5 years after
3a product stewardship plan was submitted to the Agency under
4subsection (b), 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; and
10        (2) the Agency may assess a penalty against the
11    Organization once per calendar year of up to 15 cents for
12    each beverage container comprising the difference between
13    the number of beverage containers that were redeemed and
14    the total number of beverage containers that, if redeemed,
15    would have met the performance target.
16    (f) If a performance target required under subsection (a)
17has not been met during each of the 7 consecutive calendar
18years immediately after the calendar year of the submission of
19the product stewardship plan described in subsection (b), then
20the Agency may take over the Organization's operations and
21charge its members in accordance with Section 50 until:
22        (1) the performance target is met, after which the
23    Organization's operations shall be taken over again by the
24    Organization within 180 days after the performance target
25    is met; or
26        (2) 5 years after the Agency has taken over, after

 

 

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1    which, if the performance target is not met for at least 2
2    consecutive years, the members of the Organization shall
3    choose a new Executive Director and the Organization's
4    operations shall be taken over again by the Organization.
5    If the Agency utilizes paragraph (2), then the
6requirements of subsections (b), (c), and (d) shall not apply
7to the Organization until 3 years after the new Executive
8Director is chosen under paragraph (2).
 
9    Section 60. Reporting.
10    (a) On or before July 1 of each calendar year, beginning
11July 1 of the first full calendar year after a beverage
12container has a redemption refund value under this Act, the
13Organization shall make publicly available on its website:
14        (1) the number of beverage containers sold in the
15    State by material type, as well as, for each quarter of the
16    year covered by the report and the quarters of each prior
17    year for at least the preceding 5 years, to the extent the
18    data is available under this Act, the proportion of
19    beverage containers sold in the State that are capable of
20    being recycled, refilled, or reused;
21        (2) for each quarter of the year covered by the report
22    and the quarters of each prior year for at least the
23    preceding 5 years, and to the extent data is available
24    under this Act, the percentage of the total amount of
25    beverage containers sold in the State that each beverage

 

 

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1    container material type represents;
2        (3) the percentage of the total amount of fees charged
3    to members that each beverage container material type
4    represents for each quarter of the year covered by the
5    report and the quarters of each prior year for at least the
6    preceding 5 years, to the extent data is available;
7        (4) the number of beverage containers, by material
8    type, redeemed for each quarter of the year covered by the
9    report and the quarter of each prior year for at least the
10    preceding 5 years, to the extent data is available;
11        (5) the number of beverage containers redeemed at each
12    beverage container processing mechanism provided by the
13    Organization under this Act;
14        (6) the buyers to whom the Organization sold beverage
15    container materials and an indication of the beverage
16    container's material type;
17        (7) the percentage of the total amount of moneys
18    redeemed for each beverage container material type;
19        (8) each redemption location in the State;
20        (9) the means of redemption at each redemption
21    location in the State;
22        (10) the total expenses of the Organization;
23        (11) the total revenues of the Organization;
24        (12) the total reserves of the Organization;
25        (13) the cost to the Organization per beverage
26    container redeemed;

 

 

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1        (14) the number of redemption locations that provide
2    services or an enhanced redemption experience for minority
3    or low-income consumers;
4        (15) aggregated demographic information, including, at
5    a minimum, the race, ethnicity, and gender identity of:
6            (A) employees working on-site at redemption
7        locations or at facilities the Organization
8        establishes to aggregate, sort, and process the
9        beverage containers collected at redemption locations;
10        and
11            (B) any Organization employees not described in
12        subparagraph (A); and
13        (16) the number of consumer complaints per month, by
14    redemption location, during the previous calendar year and
15    each prior year for at least the preceding 5 years, to the
16    extent data is available;
17        (17) the total number of individual consumers per
18    month who filed complaints, by redemption location, during
19    the previous calendar year and each prior year for at
20    least the preceding 5 years, to the extent data is
21    available;
22        (18) a list of all members, their brands of beverage
23    containers, and a breakdown of each member's beverage
24    container packaging mix by beverage container type during
25    the previous calendar year and each prior year for at
26    least the preceding 5 years, to the extent data is

 

 

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1    available;
2        (19) the buyers of the plastic film waste, if any,
3    generated from the standard bag sold by the Organization
4    to consumers for redemption and how buyers may recycle the
5    plastic film waste;
6        (20) the number of individuals and entities registered
7    to receive electronic deposits of redemption refunds under
8    this Act; and
9        (21) the name of each member of the Organization's
10    Board of Directors.
11    (b) The Organization may rely on reporting by members for
12information used to comply with the reporting requirements of
13this Act, but shall note in its annual report which of the
14metrics described in subsection (a) are based on member
15reporting.
16    (c) Once per calendar year, the Agency may require
17verification of information disclosed during that calendar
18year by the Organization under this Act. The verification
19shall:
20        (1) only occur after being notified by the
21    Organization on or before August 1 of that calendar year
22    that the Agency is requiring independent third-party
23    verification;
24        (2) be performed by an independent third party;
25        (3) be limited in scope to information that:
26            (A) the Organization is required to report under

 

 

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1        this Act;
2            (B) the Agency specifies for third-party
3        verification under this subsection; and
4            (C) appeared, or should have appeared, in the
5        Organization's annual report for that calendar year;
6        and
7        (4) conducted on or before December 31 of the calendar
8    year in which it is required by the Agency.
9     The Organization must pay the full cost of the
10third-party verification.
11    (d) The Organization must establish safeguards to ensure
12members do not have access to information regarding:
13        (1) the price paid by any individual buyer for
14    beverage container material sold by the Organization under
15    this Act; and
16        (2) the amount of each beverage container material
17    sold by the Organization to each individual buyer.
18    (e) On or before the last day of February of each calendar
19year, each member of the Organization must report to the
20Organization all data necessary to satisfy the disclosure
21requirements of this Section. The Organization shall ensure
22that data provided by members under this subsection is
23confidential.
 
24    Section 65. Operations Advisory Committee; Equity and
25Access Advisory Committee.

 

 

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1    (a) The Organization shall establish an Operations
2Advisory Committee that represents a range of interested and
3engaged persons and entities, including, at a minimum, one of
4each of the following:
5        (1) a beverage container manufacturer or a beverage
6    container manufacturer's trade association;
7        (2) a beverage producer or a beverage producer's trade
8    association;
9        (3) a unit of local government or group of units of
10    local government;
11        (4) the State;
12        (5) an environmental nonprofit organization;
13        (6) an entity that buys beverage containers from, or
14    recycles them for, the Organization; and
15        (7) a retailer or a retailer's trade association.
16    (b) The Operations Advisory Committee may:
17        (1) provide written or oral comments directly to the
18    Board of Directors and the Executive Director no more than
19    4 times a year; and
20        (2) every even-numbered calendar year, submit to the
21    Organization a written report that the Organization must
22    publish on its website upon request by the Operations
23    Advisory Committee and containing:
24            (A) the Operations Advisory Committee's feedback
25        on the operation of the Organization; and
26            (B) the Operations Advisory Committee's feedback

 

 

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1        on the redemption refund system established under this
2        Act.
3    (c) The Organization shall establish an Equity and Access
4Advisory Committee that represents persons who can help ensure
5the Organization's operations appropriately consider the
6diverse needs and cultures of people who redeem beverage
7containers, including, at a minimum, one of each of the
8following:
9        (1) an advocate for homeless persons;
10        (2) a governmental social services office;
11        (3) a nongovernmental organization that advocates on
12    behalf of one or more cultural groups; and
13        (4) a specialist in diversity and inclusion.
14    (d) The Equity and Access Advisory Committee may:
15        (1) provide written or oral comments directly to the
16    Board of Directors and the Executive Director no more than
17    4 times a year; and
18        (2) every even-numbered calendar year, submit to the
19    Organization a written report that the Organization must
20    publish on its website upon request by the Equity and
21    Access Advisory Committee and containing:
22            (A) the Equity and Access Advisory Committee's
23        feedback on whether the Organization is appropriately
24        considering the diverse needs and cultures of people
25        who redeem beverage containers under this Act; and
26            (B) the Equity and Access Advisory Committee's

 

 

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1        suggestions on how the Organization can improve in
2        terms of equity and access.
 
3    Section 70. Reimbursement to the Agency. The Organization
4shall reimburse the Agency for costs incurred by the Agency
5under this Act, not to exceed $500,000 per year, in accordance
6with paragraph (4) of subsection (f) of Section 50.
 
7    Section 75. Enforcement.
8    (a) In addition to any other applicable civil penalties or
9criminal fines, the Agency may impose a civil penalty for each
10day that a violation of this Act occurs. The penalty shall be
11$100 for the first violation of any requirement under this Act
12and not more than $1,000 for each subsequent violation of that
13requirement.
14    (b) A person who takes any of the following actions with
15the intent to knowingly defraud is subject to subsection (c),
16along with any other federal, State, or local enforcement
17action arising from the action:
18        (1) redeeming out-of-state beverage containers,
19    rejected beverage containers, line breakages, or beverage
20    containers that have already been redeemed;
21        (2) seeking a redemption refund under this Act by
22    returning an already-redeemed beverage container at a
23    redemption location;
24        (3) bringing out-of-state beverage containers,

 

 

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1    rejected beverage containers, or line breakages to the
2    State marketplace for redemption; or
3        (4) selling beverage containers not distributed or
4    imported into the State by a member of the Organization.
5    (c) A violation of subsection (b) resulting in financial
6gain by the violator shall subject the violator to the
7following:
8        (1) If the amount of moneys gained is equal to or less
9    than $950, the violator is subject to:
10            (A) imprisonment in a county jail for not more
11        than 6 months;
12            (B) a criminal fine not exceeding $1,000; or
13            (C) both the fine and imprisonment described in
14        subparagraphs (A) and (B).
15        (2) If the amount of moneys gained is more than $950,
16    the violator is subject to:
17            (A) imprisonment in a county jail for not more
18        than one year;
19            (B) a criminal fine not exceeding $10,000; or
20            (C) both the fine and imprisonment described in
21        subparagraphs (A) and (B).
22    (d) The Agency may bring a civil action to enjoin the
23distribution, importation, or sale in the State of a beverage
24container in violation of this Act.
25    (e) The Agency may assess a penalty of up to $30,000 in a
26calendar year against the Organization for each redemption

 

 

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1location at which the Organization receives more than an
2average of 100 individuals' complaints per month, according to
3the public reporting required under Section 60.
4    (f) After notification from the Agency of noncompliance
5with this Act and a 60-day cure period, the Agency may
6administratively impose a civil penalty once per year to any
7distributor or importer who fails to participate as an
8Organization member as required under Section 10. The civil
9penalty shall be the greater of $10,000 or 10 cents per
10beverage container sold by the distributor or importer in the
11State while not a member. Any distributor or importer who
12incurs a penalty under this Section may appeal the penalty to
13the Agency.
14    (g) All penalties the Agency recovers under this Act:
15        (1) up to the first $5,000,000 per calendar year shall
16    only be used to administer this Act;
17        (2) beyond the first $5,000,000 per calendar year
18    shall only be used to:
19            (A) conduct educational activities in the State
20        that are focused on the beverage container redemption
21        refund system established under this Act;
22            (B) perform litter clean-up in the State; or
23            (C) support the collection of recyclable material
24        in public spaces in the State; and
25        (3) shall be deposited in a separate, dedicated
26    account and shall not be spent until the following

 

 

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1    calendar year.
 
2    Section 80. Administration. The Agency shall administer
3and enforce the provisions of this Act not otherwise allocated
4to another person or entity under this Act.