Sen. Laura M. Murphy

Filed: 4/26/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 85

2    AMENDMENT NO. ______. Amend Senate Bill 85 by replacing
3everything after the enacting clause with the following:
 
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 Environmental Protection Agency.
8    "Beverage" means any drinkable liquid intended for human
9oral consumption. "Beverage" does not include:
10        (1) a drug regulated under the Federal Food, Drug, and
11    Cosmetic Act (21 U.S.C. 301 et seq.);
12        (2) infant formula; or
13        (3) a meal replacement liquid.
14    "Beverage container" means a prepackaged container, such
15as a carton, pouch, or aseptic packaging that:
16        (1) is made of any multimaterial or material,

 

 

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1    including, but not limited to, glass, plastic, or metal;
2        (2) is designed to be used for beverage storage one or
3    more times before being recycled; and
4        (3) has a volume of not more than one gallon.
5    "Beverage container processing mechanism" means any manual
6or technological means by which empty beverage containers are
7properly identified and processed.
8    "Beverage producer" means a person who bottles, cans, or
9otherwise fills beverage containers to sell to distributors,
10importers, or retailers.
11    "Consumer" means a person who purchases a beverage
12container in the State for use or consumption.
13    "Distributor" means a person, including, but not limited
14to, a beverage producer, who engages in the sale of beverage
15containers to a retailer in the State.
16    "Drop-off facility" means a specific area where
17individuals may bring household recyclable materials to be
18sorted into material-specific receptacles.
19    "Importer" means a retailer or beverage producer who
20directly imports beverage containers into the State.
21    "Line defect" means a beverage container that becomes
22defective or damaged during manufacturing, is not meant for
23sale, and is not eligible for redemption.
24    "Material recovery facility" means a facility that
25receives, separates, and sells or otherwise distributes
26postconsumer materials for recycling.

 

 

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1    "Member" means a distributor or importer who has joined
2the Organization and paid all applicable fees.
3    "Nonprofit organization" means an organization established
4and operated as a nonprofit organization under Section
5501(c)(3) of the Internal Revenue Code of 1986.
6    "Organization" means the Distributor and Importer
7Responsibility Organization established under Section 50.
8    "Recycle" means the series of activities by which a
9beverage container is:
10        (1) collected and processed;
11        (2) converted into raw material; and
12        (3) used in the production of a new product, including
13    the original product.
14"Recycle" does not include:
15        (1) the use of material to produce a fuel or fuel
16    substitute;
17        (2) the use of material in an incineration process,
18    such as a waste-to-energy process; or
19        (3) the use of material within the footprint of a
20    landfill.
21    "Retailer" means a person or business in the State who
22engages in the sale of beverage containers to a consumer.
23    "Store" means an individual location where a retailer
24sells beverage containers.
 
25    Section 10. Beverage container recycling redemption refund

 

 

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1program.
2    (a) Except as otherwise provided in this Section, each
3beverage container sold or offered for sale in the State shall
4have the following redemption refund value:
5        (1) 10 cents for a beverage container of 24 fluid
6    ounces or less; and
7        (2) 15 cents for a beverage container of more than 24
8    fluid ounces.
9    (b) The Agency may change each redemption refund value
10under subsection (a), by rule, so long as the changed refund
11value is not based on the type of postconsumer material being
12recycled, not more often than:
13        (1) once during any 10-year period and in consultation
14    with the Organization; and
15        (2) once during any 5-year period and after receiving
16    a request from the Organization for a change to one or both
17    redemption refund amounts, if the Agency's change conforms
18    with the Organization's request.
19    (c) Prior to any change in the redemption refund value
20under subsection (b), the Agency must undergo a notice and
21comment review period with at least 60 days' notice to the
22public.
23    (d) If the redemption rate publicly reported by the
24Organization under Section 60 does not reach 80% for 2
25consecutive calendar years after being required to do so under
26paragraph (2) of subsection (a) of Section 55, then each

 

 

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1beverage container sold or offered for sale in the State shall
2have the following redemption refund value:
3        (1) fifteen cents for a beverage container of 24 fluid
4    ounces or less; and
5        (2) twenty cents for a beverage container of more than
6    24 fluid ounces.
7    (e) Any moneys designated for redemption refunds but that
8are not claimed by consumers shall be used by the Organization
9to support its administrative costs and to perform the
10activities required under this Act.
 
11    Section 15. Material flows.
12    (a) When a consumer redeems a beverage container in
13accordance with this Act, the Organization becomes the owner
14of that beverage container and may:
15        (1) sell it to a buyer of its choosing after first
16    allowing a beverage producer or a company of its beverage
17    container supply chain to purchase the material at a fair
18    market rate; or
19        (2) on its own or via a third party, process the
20    beverage container for refill if it is reusable.
21    (b) If a consumer chooses to put a beverage container in
22its curbside recycling receptacle or a drop-off receptacle,
23the operator of the material recovery facility that sorts the
24beverage container or the operator of the drop-off facility
25that receives the beverage container shall:

 

 

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1        (1) offer to sell the material to the Organization,
2    which then may be required to pay a certain percent of the
3    redemption value per beverage container under Section 70;
4        (2) permit the Organization to pick up the material
5    within a reasonable amount of time at the Organization's
6    expense; and
7        (3) report to the Organization the weight in tons and
8    the quality of the beverage containers it is transferring
9    to the Organization.
 
10    Section 20. Means of redemption.
11    (a) At each store having a floor space that is greater than
12or equal to 25,000 square feet, excluding only outdoor space,
13the Organization shall, at its expense, install, operate, and
14maintain:
15        (1) bulk bag drop-off for all redeemable beverage
16    containers; and
17        (2) one or more beverage container processing
18    mechanisms that allow the consumer to:
19            (A) redeem all redeemable containers; and
20            (B) immediately receive the refund value.
21    (b) At each store having a floor space that is greater than
22or equal to 25,000 square feet, excluding only outdoor space,
23the Organization may, at its expense, install, operate, and
24maintain additional beverage container processing mechanisms
25beyond what is required in subsection (a).

 

 

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1    (c) At each of its stores having a floor space that is
2greater than or equal to 25,000 square feet, excluding only
3outdoor space, the retailer shall make at most 1,000 square
4feet of floor space available for the Organization to meet the
5requirements of subsection (a) and the options provided in
6subsection (b), but the retailer shall decide where in each
7store the Organization will, on space the retailer controls
8inside or outside the store, install, operate, and maintain
9beverage container processing mechanisms.
10    (d) At each store having a floor space that is greater than
1110,000 but less than 25,000 square feet, excluding only
12outdoor space, the Organization shall, at its expense,
13install, operate, and maintain beverage container processing
14mechanisms such that the consumer has:
15        (1) the ability to redeem all redeemable beverage
16    containers; and
17        (2) the option to receive immediately the refund
18    value.
19    (e) At each store having a floor space that is greater than
2010,000 square feet but less than 25,000 square feet, excluding
21only outdoor space, the Organization may, at its expense,
22install, operate, and maintain additional beverage container
23processing mechanisms beyond what is required in subsection
24(d).
25    (f) At each of its stores having a floor space that is
26greater than 10,000 square feet but less than 25,000 square

 

 

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1feet, excluding only outdoor space, the retailer shall make at
2most 500 square feet of floor space available for the
3Organization to meet the requirements of subsection (d) and
4the options provided in subsection (e), but the retailer shall
5decide where in each store the Organization will, on space it
6controls inside or outside the store, install, operate, and
7maintain beverage container processing mechanisms.
8    (g) At each of its stores having a floor space that is
9greater than 1,000 square feet but less than or equal to 10,000
10square feet, excluding only outdoor space, the retailer shall,
11upon the Organization's request, allow the Organization to
12install, operate, and maintain beverage container processing
13mechanisms on no more than 250 square feet of space that it
14controls inside or outside the store.
15    (h) A retailer who operates a store having a floor space
16that is less than or equal to 1,000 square feet has no duty
17under this Act to host a beverage container processing
18mechanism.
19    (i) Notwithstanding subsections (a) through (g):
20        (1) the retailer may make available more than the
21    required space for beverage container processing
22    mechanisms; and
23        (2) the Organization may install, operate, and
24    maintain more beverage container processing mechanisms on
25    the additional space made available under paragraph (1) of
26    this subsection.

 

 

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1    (j) The Agency, in consultation with the Organization and
2retailers, shall develop a formula to determine how to fairly
3compensate annually the retailer for use of the space at each
4store of the retailer that the retailer permits the
5Organization to install, operate, and maintain beverage
6container processing mechanisms.
7    (k) Notwithstanding subsections (a) through (i), a
8retailer shall, upon request by the Organization regarding a
9particular store of the retailer:
10        (1) offer for sale at that particular store the
11    standard bags that consumers must use to redeem containers
12    via the bulk bag drop-off redemption option; and
13        (2) permit the Organization to install, service, and
14    operate a self-service kiosk that prints redemption
15    vouchers inside or immediately outside of that particular
16    store.
17    (l) A retailer is exempt from the requirements of this
18Section at stores the retailer operates that primarily
19prepares food for sale.
20    (m) A retailer is exempt from the requirements of
21subsections (a) through (i) at stores the retailer operates
22that primarily sell beverage containers to consumers through
23stand-alone vending machines, stand-alone refrigerator cases,
24or similar means.
25    (n) The Agency shall develop convenience standards that
26the Organization shall follow to ensure that:

 

 

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1        (1) one or more beverage container processing
2    mechanisms that allow for convenient redemption of
3    redeemable beverage containers is located within a
4    reasonable distance of each resident of the State; and
5        (2) there are enough beverage container processing
6    mechanisms at each store or location the Organization
7    operates to enable quick and easy redemption of redeemable
8    beverage containers.
9    (o) The Organization may enter into an agreement to
10install, operate, and maintain an additional beverage
11container processing mechanism at any location that is not
12considered a store under this Act in order to provide
13additional convenient, quick, or easy redemption options and
14to meet the performance targets required in Section 55.
15    (p) Any facility that the Organization sets up in the
16State to aggregate, sort, and process the material collected
17at various redemption locations under this Act may:
18        (1) accept, pursuant to a reasonable process the
19    Organization may establish, beverage containers that are
20    eligible for redemption and are submitted in the
21    Organization's standard redemption bag, as designated by
22    the Organization; and
23        (2) provide a nonprofit organization with a premium to
24    be determined by the Organization.
25    (h) The public shall have access to redeem beverage
26containers in accordance with this Section for not less than

 

 

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110 hours each day, except on federal, State, or local holidays
2and except at a facility set up by the Organization to
3aggregate, sort, and process redeemed beverage containers.
4    (r) The Organization must provide information to the
5public detailing how consumers can alert the Organization to
6problems at beverage container processing mechanisms operated
7by the Organization. The information shall be provided via:
8        (1) the Organization's website;
9        (2) clearly visible signage at least 5 feet by 5 feet
10    at each redemption location required under this Section;
11    and
12        (3) clearly visible signage at least 2 feet by 2 feet
13    placed on or within 5 feet of each beverage container
14    processing mechanism.
15    (s) The Organization may establish reasonable terms and
16conditions for the use of a beverage container processing
17mechanism.
 
18    Section 25. Labeling requirements.
19    (a) A beverage producer, distributor, or importer shall
20include the abbreviation "RV" on a clearly visible portion of
21the top or side of each beverage container that is sold by the
22beverage producer, distributor, or importer in the State.
23    (b) The Organization may require that any beverage
24producer, distributor, or importer include, on any space that
25is on the top or side of each beverage container sold in the

 

 

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1State, the clearly visible abbreviation of the State and
2applicable redemption refund value under Section 10.
3    (c) A beverage producer, distributor, or importer may
4include a barcode or unique code verification on a beverage
5container to automatically identify it.
 
6    Section 30. Timing.
7    (a) By no later than 18 months after the effective date of
8this Act, beverage containers that are at least 90% aluminum,
9glass, high-density polyethylene plastic, or polyethylene
10terephthalate and that are sold in the State must be
11redeemable for the applicable redemption refund value under
12Section 10.
13    (b) By no later than 3 years after the effective date of
14this Act, beverage containers that do not meet the standard
15described under subsection (a) and that are sold in the State
16must be redeemable for the applicable redemption refund value
17under Section 10.
18    (c) The Agency may permit up to an additional 365 days to
19meet either one or both of the deadlines specified in
20subsections (a) and (b).
 
21    Section 35. Prohibitions.
22    (a) No person shall distribute, import, or sell beverage
23containers in or into the State except in compliance with this
24Act.

 

 

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1    (b) No person shall redeem under this Act a beverage
2container that was not sold in the State to a consumer in the
3State.
 
4    Section 40. Agency duties. On or before October 1 of each
5year after the effective date of this Act, the Agency shall
6identify and communicate to the Organization the Agency's
7total estimated annual cost to implement, administer, and
8enforce this Act, including the cost of adopting rules under
9this Act, in the next calendar year, after:
10        (1) subtracting the moneys that the Agency collected
11    from penalties assessed under this Act, which shall be
12    applied toward fulfilling the Agency's responsibilities
13    under this Act in the next calendar year; and
14        (2) adding any expenses incurred in fulfilling the
15    Agency's responsibilities under this Act that are not
16    covered by the annual cost from the previous year.
 
17    Section 45. Drop-off facility and material recovery
18facility duties.
19    (a) Each drop-off facility or material recovery facility
20operating in the State, or outside of the State may submit the
21following information to the Organization if the majority of
22the material it processes comes from the State:
23        (1) the amount in tons of residential recyclable
24    material that the facility sold in the previous calendar

 

 

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1    year; and
2        (2) an estimate of the amount in tons of residential
3    recyclable material that the facility sold that came from
4    the State.
5    (b) The optional information detailed in subsection (a)
6shall be submitted on or before April 1 and shall pertain only
7to the previous full calendar year.
 
8    Section 50. Distributor and Importer Responsibility
9Organization.
10    (a) All distributors and importers shall join as members
11of a Distributor and Importer Responsibility Organization. A
12distributor or importer operating in violation of this
13requirement is subject to penalties described in Section 75.
14The Organization must be established and operated as a
15nonprofit organization or a cooperative corporation.
16    (b) Only one Organization may operate in the State. The
17Organization may decide to operate jointly with similar
18organizations. The Organization shall elect a governing Board
19of Directors of the Organization composed of Organization
20members. The Organization shall be led by an Executive
21Director elected by the Board of Directors of the
22Organization.
23    (c) The Organization shall charge a membership fee that
24funds the Organization's costs of operation minus unclaimed
25redemption refunds or any other revenue sources that the

 

 

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1Organization may develop. The Organization shall charge
2membership fees that vary by material type and that reflect:
3        (1) the cost of collecting, transporting, sorting, and
4    processing each beverage container type; and
5        (2) the number of units of each beverage container
6    type that each member distributes or sells in the State.
7    (d) The Organization shall provide to members against the
8fees charged under this Act a credit from revenue generated
9from the sale of each beverage container type's scrap in an
10amount based on the percentage of each beverage container type
11that each member distributes or sells in the State.
12    (e) The Organization shall publish publicly on its
13website:
14        (1) within 18 months after the effective date of this
15    Act, an initial plan for how the Organization will meet
16    its requirements under this Act over the next 5 years,
17    including the performance targets specified in Section 55;
18    and
19        (2) no later than every 5 years after publication of
20    the initial plan under paragraph (1), an updated plan on
21    how the Organization will continue to meet its
22    requirements under this Act, including the performance
23    targets specified in Section 55.
24    (f) The Organization shall pay:
25        (1) for any beverage container processing mechanism or
26    self-service kiosk that the Organization chooses to

 

 

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1    install, maintain, and operate:
2            (A) with retailer permission granted under Section
3        20; or
4            (B) at any location to meet or exceed:
5                (i) the performance targets under Section 55;
6            or
7                (ii) the beverage container processing
8            mechanism requirement under subsection (f) of
9            Section 20;
10        (2) for any facilities in the State necessary to
11    efficiently aggregate, sort, and process the beverage
12    containers collected at redemption locations under this
13    Act;
14        (3) to upkeep a list and map on its website of all
15    redemption locations and the redemption options available
16    at each redemption location;
17        (4) by December 31 of each year, an annual installment
18    to the Agency according to the formula under Section 40,
19    but not to exceed $500,000 per year; the installment shall
20    fund the Agency's anticipated costs in the following year
21    to implement, administer, and enforce this Act, including
22    adopting rules under this Act;
23        (5) by December 31 of each year, reimbursement for
24    enforcement costs that may result in a total reimbursement
25    by the Organization to the Agency more than $500,000 per
26    year as long as the funded enforcement activities

 

 

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1    identified violations of this Act and resulted in
2    penalties under this Act;
3        (6) a credit to consumers for the cost of the standard
4    bags described under subsection (f) of Section 10; and
5        (7) beginning during the first full year and ending
6    the fifth full year after one or more beverage container
7    types is sold with a redemption refund value under this
8    Act, direct annual payments by July 1 of each calendar
9    year to drop-off facility operators and material recovery
10    facility operators who choose to submit information under
11    Section 45. Each payment shall:
12            (A) equal 5% of the scrap value from the beverage
13        container material the Organization sold in the
14        preceding calendar year; and
15            (B) be based on the data submitted by drop-off
16        facility operators or material recovery facility
17        operators under Section 45.
18    (g) If the standard bag the Organization sells to
19consumers under subsection (f) of Section 10 is made of
20plastic film, the Organization shall:
21        (1) ensure that the standard bag sold is composed of a
22    minimum of 50% recycled content; and
23        (2) demonstrate to the Agency that the plastic film
24    waste from the standard bags will be recycled in the best
25    commercially available manner.
26    (h) The Organization is not required to pay a redemption

 

 

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1refund under this Act for:
2        (1) any beverage container that visibly contains or is
3    visibly contaminated by a substance other than water,
4    residue of the beverage contained within the beverage
5    container as sold by a retailer to a consumer, or dust;
6        (2) any beverage container that is crushed, broken, or
7    damaged to the extent that the brand appearing on the
8    beverage container cannot be identified;
9        (3) any beverage container that the Organization has
10    reasonable grounds to believe was procured in another
11    state; or
12        (4) any beverage container for which the Organization
13    has reasonable grounds to believe a redemption refund has
14    already been issued under this Act or under any other
15    state's law, rule, or regulation.
16    (i) The Organization may:
17        (1) use, or award grants using, moneys received or
18    generated under this Act for:
19            (A) litter clean-up; and
20            (B) education and outreach on recycling beverage
21        containers;
22        (2) use moneys received or generated under this Act to
23    directly, or in partnership with a nongovernmental
24    organization, provide services to or enhance the
25    redemption experience of minority or low-income consumers
26    who redeem a beverage container;

 

 

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1        (3) to the extent allowed by law, distribute to its
2    members moneys received or generated under this Act during
3    a fiscal year if:
4            (A) the Organization's revenues under this Act
5        exceeded the costs of carrying out the Organization's
6        requirements under this Act by more than 10%; and
7            (B) after distributing the moneys to members, the
8        Organization's nondistributed revenues comprise at
9        least 110% of the costs of carrying out the
10        Organization's requirements under this Act; and
11        (4) use moneys generated under this Act to pay members
12    or support the management and activities of an advisory
13    committee established under Section 65.
 
14    Section 55. Performance targets.
15    (a) The Organization shall meet the following performance
16targets:
17        (1) beginning during the second full calendar year
18    after all beverage containers are sold in the State with
19    the applicable redemption refund value under Section 10,
20    the performance target shall be to have an annual
21    redemption rate for all redeemable beverage containers of
22    at least 70%;
23        (2) beginning with the fourth full calendar year after
24    all beverage containers are sold in the State with the
25    applicable redemption refund value under Section 10, the

 

 

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1    performance target shall be to have an annual redemption
2    rate for all redeemable beverage containers of at least
3    75%;
4        (3) beginning during the sixth full calendar year
5    after all beverage containers are sold in the State with
6    the applicable redemption refund value under Section 10,
7    the performance target shall be to have an annual
8    redemption rate for all redeemable beverage containers of
9    at least 85%; and
10        (4) beginning during the eighth full calendar year
11    after all beverage containers are sold in the State with
12    the applicable redemption refund value under Section 10
13    and in each calendar year thereafter, the performance
14    target shall be:
15            (A) to have an annual redemption rate for all
16        redeemable beverage containers of at least 90%; or
17            (B) to have at least 90% of redeemable beverage
18        containers collectively:
19                (i) redeemed via the redemption system
20            implemented under this Act at an 85% redemption
21            rate or higher, as required under paragraph (3);
22                (ii) collected under a curbside recycling
23            program in the State and meet or exceed the
24            quality standards described in Section 70 when
25            sold by the material recovery facility; or
26                (iii) collected at a drop-off facility and

 

 

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1            then sold by the drop-off facility with quality
2            standards that meet or exceed those described in
3            Section 70.
4    (b) The Organization shall meet the following recycling
5rates targets for beverage containers redeemed through the
6system it operates:
7        (1) For beverage containers that are made of at least
8    90% aluminum, glass, high-density polyethylene plastic, or
9    polyethylene terephthalate, the recycling rate target
10    shall be:
11            (A) a 70% recycling rate beginning 2 years after
12        the beverage containers are sold in the State with the
13        applicable refund value under Section 10; and
14            (B) a 90% recycling rate beginning 5 years after
15        the beverage containers are sold in the State with the
16        applicable refund value under Section 10.
17        (2) For beverage containers not specified in paragraph
18    (1) the recycling target rate shall be:
19            (A) a 50% recycling rate beginning 4 years after
20        the beverage containers are sold in the State with the
21        applicable refund value under Section 10; and
22            (B) a 70% recycling rate beginning 7 years after
23        the beverage containers are sold in the State with the
24        applicable refund value under Section 10.
25    (c) If the Organization does not meet a redemption rate
26target required under subsection (a) or a recycling rate

 

 

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1target required under subsection (b), it must submit to the
2Agency a product stewardship plan no more than 365 days after
3the data required under Section 60 has most recently been
4published. 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    (d) If the Organization does not meet a redemption rate
8target under subsection (a) or a recycling rate target under
9subsection (b) in any calendar year, the Agency shall assess a
10civil penalty against the Organization for each such violation
11        (1) If a redemption rate target was not met, the civil
12    penalty shall be equal to one cent for each beverage
13    container comprising the difference between the number of
14    beverage containers that were redeemed and the total
15    number of beverage containers that, if redeemed, would
16    have met the redemption rate target.
17        (2) If a recycling rate target was not met, the civil
18    penalty shall be equal to one cent for each beverage
19    container comprising the difference between the number of
20    beverage containers that were recycled and the total
21    number of beverage containers that, if recycled, would
22    have met the recycling rate target.
23    (e) If the Organization does not meet all redemption rate
24targets under subsection (a) and recycling rate targets under
25subsection (b) within 3 years after a product stewardship plan
26was submitted to the Agency under subsection (c):

 

 

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1        (1) The Agency shall assess a civil penalty against
2    the Organization once per calendar year:
3            (A) If redemption rate targets were not met, the
4        civil penalty shall be up to 10 cents for each beverage
5        container comprising the difference between the number
6        of beverage containers that were redeemed and the
7        total number of beverage containers that, if redeemed,
8        would have met the performance targets.
9            (B) If recycling rate targets were not met, the
10        civil penalty shall be up to 10 cents for each beverage
11        container comprising the difference between the number
12        of beverage containers that were recycled and the
13        total number of beverage containers that were recycle
14        and the total number of beverage containers that, if
15        recycled, would have met the performance targets.
16        (2) The Agency shall require the Organization to
17    submit a revised product stewardship plan within 365 days
18    after the effective date of this Act.
19    (f) If the Organization does not, within 5 years after a
20product stewardship plan was submitted to the Agency under
21subsection (c), meet all redemption rate targets required
22under subsection (a) and recycling rate targets required under
23subsection (b), then:
24        (1) the Organization shall detail on the
25    Organization's website why a new Executive Director of the
26    Organization is not necessary if, at the end of the 5-year

 

 

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1    period, the same person has acted as Executive Director of
2    the Organization for more than 365 days prior to the
3    effective date of this Act;
4        (2) the Agency may require the Organization to remove
5    an Executive Director of the Organization that has served
6    in that position for more than 365 days prior to the
7    effective date of this Act; and
8        (3) the Agency shall assess against the organization a
9    civil penalty once per calendar year:
10            (A) If redemption rate targets were not met in the
11        previous calendar year, the civil penalty shall be up
12        to 15 cents for each beverage container comprising the
13        difference between the number of beverage containers
14        that were redeemed and the total number of beverage
15        containers that, if redeemed, would have met the
16        performance target.
17            (B) If recycling rate targets were not met in the
18        previous calendar year, the civil penalty shall be up
19        to 15 cents for each beverage container comprising the
20        difference between the number of beverage containers
21        that were recycled and the total number of beverage
22        containers that, if recycled, would have met the
23        performance targets.
24    (g) Notwithstanding subsections (d) through (f), the
25penalty for each performance target required in subsection (d)
26is not in addition to the penalties authorized in subsections

 

 

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1(e) and (f) as long as the penalty assessed against the
2Organization in subsections (e) and (f) is greater than that
3required in subsection (d).
4    (h) If the Organization does not meet all the redemption
5rate targets required under subsection (a) and the recycling
6rate targets under subsection (b) within 7 years after the
7product stewardship plan was submitted to the Agency under
8subsection (c), then the Agency may take over management of
9the Organization from the Executive Director of the
10Organization and charge the Organization members in accordance
11with Section 50 until:
12        (1) all of the performance targets are met, after
13    which the members of the Organization shall take over
14    management of the Organization again and choose a new
15    Executive Director within 365 days after all of the
16    performance targets are met; or
17        (2) five years after the Agency has taken over, after
18    which, if all of the performance targets are not met in any
19    2 consecutive years, the members of the Organization shall
20    take over management of the Organization again and choose
21    a new Executive Director within 365 days of the effective
22    date of this Act.
23    (i) If the Agency exercises the option described in
24subsection (h), then the requirements of subsections (c), (e),
25and (f) shall not apply to the Organization until 3 years after
26the new Executive Director is chosen.
 

 

 

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1    Section 60. Reporting.
2    (a) On or before July 1 of each calendar year, beginning
3July 1 of the first full calendar year after a beverage
4container has a redemption refund value under this Act, the
5Organization shall make publicly available on its website:
6        (1) the number of beverage containers sold in the
7    State by material type, as well as, for each quarter of the
8    year covered by the report and the quarters of each prior
9    year for at least the preceding 5 years, to the extent the
10    data is available under this Act, the proportion of
11    beverage containers sold in the State that are capable of
12    being recycled, refilled, or reused;
13        (2) for each quarter of the year covered by the report
14    and the quarters of each prior year for at least the
15    preceding 5 years, and to the extent data is available
16    under this Act, the percentage of the total amount of
17    beverage containers sold in the State that each beverage
18    container material type represents;
19        (3) the percentage of the total amount of fees charged
20    to members that each beverage container material type
21    represents for each quarter of the year covered by the
22    report and the quarters of each prior year for at least the
23    preceding 5 years, to the extent data is available;
24        (4) the number of beverage containers, by material
25    type, redeemed for each quarter of the year covered by the

 

 

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1    report and the quarter of each prior year for at least the
2    preceding 5 years, to the extent data is available;
3        (5) the percent of beverage containers redeemed that
4    were recycled, by material type;
5        (6) the number of beverage containers redeemed at each
6    beverage container processing mechanism provided by the
7    Organization under this Act;
8        (7) the buyers by material type to whom the
9    Organization sold beverage container materials;
10        (8) the end-product each beverage container type
11    became or likely became;
12        (9) the percentage of the total amount of moneys
13    redeemed for each beverage container material type;
14        (10) each redemption location in the State;
15        (11) the means of redemption at each redemption
16    location in the State;
17        (12) the total expenses of the Organization;
18        (13) the total revenues of the Organization;
19        (14) the total reserves of the Organization;
20        (15) the cost to the Organization per beverage
21    container redeemed;
22        (16) the number of redemption locations that provide
23    services or an enhanced redemption experience for minority
24    or low-income consumers;
25        (17) aggregated demographic information, including, at
26    a minimum, the race, ethnicity, and gender identity of:

 

 

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1            (A) employees working on-site at redemption
2        locations or at facilities the Organization
3        establishes to aggregate, sort, and process the
4        beverage containers collected at redemption locations;
5        and
6            (B) any Organization employees not described in
7        subparagraph (A);
8        (18) the number of consumer complaints per month, by
9    redemption location, during the previous calendar year and
10    each prior year for at least the preceding 5 years, to the
11    extent data is available;
12        (19) the total number of individual consumers per
13    month who filed complaints, by redemption location, during
14    the previous calendar year and each prior year for at
15    least the preceding 5 years, to the extent data is
16    available;
17        (20) a list of all members, their brands of beverage
18    containers, and a breakdown of each member's beverage
19    container packaging mix by beverage container type during
20    the previous calendar year and each prior year for at
21    least the preceding 5 years, to the extent data is
22    available;
23        (21) the buyers of the plastic film waste, if any,
24    generated from the standard bag sold by the Organization
25    to consumers for redemption and how buyers may recycle the
26    plastic film waste;

 

 

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

 

 

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

 

 

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1    container manufacturer's trade association that rotates
2    between the leading beverage container types;
3        (2) a beverage producer or a beverage producer's trade
4    association;
5        (3) a unit of local government or group of units of
6    local government;
7        (4) the State;
8        (5) an environmental nonprofit organization;
9        (6) an entity that buys beverage containers from, or
10    recycles them for, the Organization; and
11        (7) a retailer or a retailer's trade association.
12    (b) The Operations Advisory Committee may:
13        (1) provide written or oral comments directly to the
14    Board of Directors and the Executive Director no more than
15    4 times a year; and
16        (2) every even-numbered calendar year, submit to the
17    Organization a written report that the Organization must
18    publish on its website upon request by the Operations
19    Advisory Committee and that contains:
20            (A) the Operations Advisory Committee's feedback
21        on the operation of the Organization; and
22            (B) the Operations Advisory Committee's feedback
23        on the redemption refund system established under this
24        Act.
25    (c) The Organization shall establish an Equity and Access
26Advisory Committee that represents persons who can help ensure

 

 

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

 

 

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1    Section 70. Additional drop-off facility and material
2recovery facility duties.
3    (a) The operator of a material recovery facility and
4drop-off facility shall use an industry-standard scale to
5measure the weight of all beverage containers that enter the
6facility.
7    (b) The operator of a material recovery facility and
8drop-off facility shall track the weight by U.S. ton of each
9beverage container type redeemable under this Act that enters
10the facility and the quality of each bale or ton of redeemable
11material.
12    (c) The Organization shall buy bales of beverage
13containers redeemable under this Act from the operator of a
14material recovery facility and drop-off facility for beverage
15containers that were made with individual containers received
16from household collection of recyclables and that meet the
17quality threshold described in subsection (d).
18    (d) The Organization shall pay the operator a material
19recovery facility and drop-off facility half of the redemption
20value under this Act for each beverage container if:
21        (1) the plastic PET bottle bale produced meets the
22    Association of Plastic Recyclers Grade A model
23    specification for plastic PET bottles;
24        (2) the aluminum beverage can bale produced meets one
25    of the UBC scrap specifications in the latest scrap

 

 

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1    specifications from the Institute of Scrap Recycling
2    Industries and has no more than 4% moisture and no more
3    than 8% nonused beverage can material after the moisture
4    is deducted;
5        (3) the glass bottle material produced has a glass
6    purity of at least 95% per the glass purity measurement
7    instructions from the Glass Recycling Coalition;
8        (4) the plastic HDPE natural bottle bale produced
9    meets the HDPE natural bottle model bale specification
10    from the Association of Plastic Recyclers;
11        (5) the plastic HDPE colored bottle bale produced
12    meets the HDPE colored bottle model bale specification
13    from the Association of Plastic Recyclers;
14        (6) the aseptic packaging and gable-top carton bale
15    meets the latest aseptic packaging and gable-top carton
16    specification from the Institute of Scrap Recycling
17    Industries; or
18        (7) the quality of the other redeemable beverage
19    container types not specified in this subsection meets
20    thresholds set by the Agency, in consultation with the
21    Organization and operators of a material recovery facility
22    and drop-off facility.
23    (e) All thresholds in this Section tied to externally
24referenced documents such as the model bale specifications
25from the Association of Plastic Recyclers and the Institute of
26Scrap Recycling Industries shall reflect the most current

 

 

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1version of the externally referenced documents including any
2updates made after the effective date of this Act.
3    (f) The Agency, in consultation with the Organization and
4operators of a material recovery facility and drop-off
5facility, may set thresholds for material quality that require
6the Organization to pay some amount other than 50% of the
7redemption amount under this Act.
8    (g) The Organization shall buy bales of beverage
9containers redeemable under this Act from an operator of a
10material recovery facility and drop-off facility for beverage
11containers that were made with individual beverage containers
12received from a household collection of recyclables and that
13meet quality requirements established under subsection (f).
14    (h) The Organization may buy bales of beverage containers
15redeemable under this Act from an operator of a material
16recovery facility and drop-off facility for beverage
17containers that were made with individual beverage containers
18received from a household collection of recyclables and do not
19meet quality requirements established under subsection (d) or
20(f).
21    (i) The Organization shall become the owner of the
22beverage containers once the appropriate portion of the
23redemption value per beverage container is paid to the
24operator of the material recovery facility and drop-off
25facility and as such, is free to sell the material to the buyer
26of its choosing for revenue after first allowing a beverage

 

 

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1producer or a company in its beverage container supply chain
2to purchase the material at a fair market rate.
3    (j) When the Organization pays the operators of the
4material recovery facility and drop-off facility the
5appropriate portion of the redemption value per beverage
6container, it may do so with an assumption that the beverage
7containers sold to it have a breakdown of containers that are
824 ounces or less and more than 24 ounces equivalent to what
9percent of that container type that consumers redeemed in the
10last calendar year were 24 ounces or less and more than 24
11ounces.
12    (k) An operator of a material recovery facility and
13drop-off facility shall permit the Organization to tour its
14facility without notice up to 4 times each calendar year.
15    (l) An operator of a material recovery facility and
16drop-off facility shall pay for up to one independent audit
17per calendar year on the quality of its material upon request
18by the Organization and shall allow the Organization to
19conduct 2 additional audits per calendar year on the quality
20of its material upon request by the Organization and at the
21Organization's expense.
 
22    Section 75. Reuse study.
23    (a) The Agency shall conduct a study on the infrastructure
24that is needed in the State to support a robust system for
25refillable beverage containers and on any changes that would

 

 

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1be required in order to ensure effective integration of
2refillable beverage containers in the deposit return system.
3    (b) The study required in subsection (a) shall be
4published on the Agency's website and filed with the General
5Assembly no later than 2 years after the effective date of this
6Act.
7    (c) The cost of the study shall be included in a
8reimbursement request to the Organization under Section 85.
 
9    Section 80. Beverage container grant program.
10    (a) The Organization shall transfer 5% of the revenue from
11unclaimed redemption refunds in the previous calendar year to
12the Agency by July 1 of each calendar year starting the first
13full calendar year after one or more beverage container types
14is sold with a redemption refund value under this Act to fund a
15beverage container grant program.
16    (b) The Agency with the money available in the beverage
17container grant program shall annually fund with a competitive
18grant process education, infrastructure, or litter clean-up
19activities that increase the reuse or recycling of beverage
20containers or reduce the litter from beverage containers in
21the State.
22    (c) The Agency shall not give grants such that any one
23beverage container type receives more than 25% of the benefits
24from the activities funded.
25    (d) The following entities are eligible for a grant under

 

 

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1the beverage container grant program:
2        (1) a school or an institution of higher education;
3        (2) a nonprofit organization;
4        (3) a county or municipal corporation;
5        (4) a federally recognized tribe;
6        (5) a for-profit organization; and
7        (6) a public-private partnership.
8    (e) The cost to administer the beverage container grant
9program shall be included in a reimbursement request to the
10Organization under Section 85.
 
11    Section 85. Reimbursement to the Agency.
12    (a) The Organization shall reimburse the Agency for costs
13incurred by the Agency under this Act, not to exceed $500,000
14per year, in accordance with paragraph (4) of subsection (f)
15of Section 50.
16    (b) The Organization shall reimburse the Agency for
17enforcement costs incurred by the Agency under this Act, in
18accordance with paragraph (5) of subsection (f) of Section 50,
19that may take the total amount reimbursed by the Organization
20to the Agency beyond $500,000 per year as long as the funded
21enforcement activities identified violations of this Act and
22resulted in penalties under this Act.
 
23    Section 90. Enforcement.
24    (a) In addition to any other applicable civil penalties or

 

 

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1criminal fines, the Agency may impose a civil penalty for each
2day that a violation of this Act, as may be defined by
3subsequent rulemaking, occurs that is:
4        (1) $100 for the first violation of any requirement
5    under this Act; and
6        (2) not more than $1,000 for each subsequent violation
7    of that requirement.
8    (b) A person who takes any of the following actions with
9the intent to knowingly defraud is subject to subsection (c),
10along with any other federal, State, or local enforcement
11action arising from the action:
12        (1) redeeming out-of-state beverage containers,
13    rejected beverage containers, line defects, or beverage
14    containers that have already been redeemed;
15        (2) seeking a redemption refund under this Act by
16    returning an already-redeemed beverage container at a
17    redemption location;
18        (3) bringing out-of-state beverage containers,
19    rejected beverage containers, or line defects to the State
20    marketplace for redemption; or
21        (4) selling beverage containers not distributed or
22    imported into the State by a member of the Organization.
23    (c) A violation of subsection (b) resulting in financial
24gain by the violator shall subject the violator to the
25following:
26        (1) If the amount of moneys gained is equal to or less

 

 

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1    than $950, the violator is subject to:
2            (A) imprisonment in a county jail for not more
3        than 6 months;
4            (B) a criminal fine not exceeding $1,000; or
5            (C) both the fine and imprisonment described in
6        subparagraphs (A) and (B).
7        (2) If the amount of moneys gained is more than $950,
8    the violator is subject to:
9            (A) imprisonment in a county jail for not more
10        than one year;
11            (B) a criminal fine not exceeding $10,000; or
12            (C) both the fine and imprisonment described in
13        subparagraphs (A) and (B).
14    (d) The Agency may bring a civil action to enjoin the
15distribution, importation, or sale in the State of a beverage
16container in violation of this Act.
17    (e) The Agency may assess a penalty of up to $30,000 in a
18calendar year against the Organization for each redemption
19location at which the Organization receives more than an
20average of 100 individuals' complaints per month, according to
21the public reporting required under Section 60.
22    (f) After notification from the Agency of noncompliance
23with this Act and a 60-day cure period, the Agency may
24administratively impose a civil penalty once per year to any
25distributor or importer who fails to participate as an
26Organization member as required under Section 10. The civil

 

 

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1penalty shall be the greater of $10,000 or 10 cents per
2beverage container sold by the distributor or importer in the
3State while not a member. Any distributor or importer who
4incurs a penalty under this Section may appeal the penalty to
5the Agency.
6    (g) All penalties the State recovers under this Act:
7        (1) up to the first $5,000,000 per calendar year shall
8    only be used to administer this Act;
9        (2) beyond the first $5,000,000 per calendar year
10    shall only put toward the beverage container grant program
11    created in Section 80.
 
12    Section 95. Administration. The Agency shall administer
13and enforce the provisions of this Act not otherwise allocated
14to another person or entity under this Act.".