Sen. Laura M. Murphy

Filed: 3/8/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 85

2    AMENDMENT NO. ______. Amend Senate Bill 85 by replacing
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    "Area of environmental justice concern" means a census
9block group that is designated by the Agency, by
10administrative rule, as a census block group in which the
11population of low-income or minority residents is twice the
12statewide average.
13    "Beverage" means any drinkable liquid intended for human
14oral consumption. "Beverage" does not include:
15        (1) a drug regulated under the Federal Food, Drug, and
16    Cosmetic Act (21 U.S.C. 301 et seq.);

 

 

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1        (2) 100% fluid cow milk;
2        (3) infant formula; or
3        (4) a meal replacement liquid.
4    "Beverage container" means any prepackaged container for
5beverages.
6    "Beverage container processing mechanism" means any manual
7or technological means by which empty beverage containers are
8properly identified and processed.
9    "Beverage producer" means a person who bottles, cans, or
10otherwise fills beverage containers to sell to distributors,
11importers, or retailers.
12    "Consumer" means a person who purchases a beverage
13container in the State for use or consumption.
14    "Covered beverage container" means a beverage container:
15        (1) made of 90% or more glass, polyethylene
16    terephthalate (PET), high-density polyethylene (HDPE)
17    plastic, or aluminum;
18        (2) designed to be used once before being recycled or
19    designed to be reused for multiple cycles before being
20    recycled; and
21        (3) with a volume of no more than one gallon.
22    "Distributor" means a person, including, but not limited
23to, a beverage producer, who engages in the sale of beverage
24containers to a retailer in the State.
25    "Drop-off facility" means a specific area where
26individuals may bring household recyclable materials to be

 

 

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1sorted into material-specific receptacles and is (i) located
2in the State or (ii) located outside the State and receives
3more than half of the material it collects from State
4residents.
5    "Importer" means a retailer or beverage producer who
6directly imports beverage containers into the State.
7    "Line defect" means a beverage container that becomes
8defective or damaged during manufacturing, is not meant for
9sale, and is not eligible for redemption.
10    "Material recovery facility" means a facility that
11receives, separates, and sells or otherwise distributes
12postconsumer materials for recycling and is (i) located in the
13State or (ii) located outside the State and receives more than
14half of the material it collects from State residents.
15    "Member" means a distributor or importer who has joined
16the Organization and paid all applicable fees.
17    "Non-covered beverage container" means a beverage
18container that is not included in the definition of covered
19beverage container.
20    "Nonprofit organization" means an organization established
21and operated as a nonprofit organization under Section
22501(c)(3) of the Internal Revenue Code.
23    "Organization" means the Distributor and Importer
24Responsibility Organization established under Section 50.
25    "Recycle" means the series of activities by which a
26beverage container is:

 

 

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1        (1) collected and processed;
2        (2) converted into raw material; and
3        (3) used in the production of a new product, including
4    the original product.
5    "Recycle" does not include:
6        (1) the use of material to produce a fuel or fuel
7    substitute;
8        (2) the use of material in a chemical conversion
9    process, such as solvolysis or depolymerization;
10        (3) the use of material in an incineration process,
11    such as a waste-to-energy process; or
12        (4) the use of material within the footprint of a
13    landfill.
14    "Recycling rate" means the percentage of covered beverage
15containers recycled out of all covered beverage containers
16sold in the State.
17    "Retailer" means a person or business in the State who
18engages in the sale of beverage containers to a consumer.
19    "Self-service kiosk" means a machine which a consumer can
20use to:
21        (1) create an account in order to participate in a
22    bag-drop program;
23        (2) conduct account activity, including viewing an
24    account balance;
25        (3) print vouchers redeemable for cash or store credit
26    for redeemed beverage containers; or

 

 

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1        (4) print labels to identify bags in the bag-drop
2    program with the consumer's account.
3    A self-service kiosk does not redeem beverage containers.
4    "Store" means an individual location where a retailer
5sells beverage containers.
 
6    Section 10. Beverage container recycling redemption refund
7program.
8    (a) Except as otherwise provided in this Section, each
9covered beverage container sold or offered for sale in the
10State shall have the following redemption refund value:
11        (1) 5 cents for a beverage container of 24 fluid
12    ounces or less; and
13        (2) 10 cents for a beverage container of more than 24
14    fluid ounces.
15    (b) Two years after covered beverage containers begin to
16be sold or offered for sale in the State with the refund value
17in paragraph (a), every covered beverage container sold or
18offered for sale in the State shall, except as otherwise
19provided by rule adopted in accordance with subsection (b),
20have the following refund value:
21        (1) 10 cents for a beverage container of 24 fluid
22    ounces or less; and
23        (2) 15 cents for a beverage container of more than 24
24    fluid ounces.
25    (c) The Agency may adopt rules providing a different

 

 

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1redemption refund value than the redemption refund value
2provided under subsection (b), so long as the modified
3redemption refund value is not based on the type of
4postconsumer material being recycled, but no more often than:
5        (1) once during any 10-year period in consultation
6    with the Organization; and
7        (2) once during any 5-year period and after receiving
8    a request from the Organization for a change to one or both
9    redemption refund amounts, if the Agency's change conforms
10    with the Organization's request.
11    (d) Prior to any change in the redemption refund value
12under subsection (c), the Agency must undergo a notice and
13comment review period with at least 60 days' notice to the
14public.
15    (e) Any moneys designated for redemption refunds but that
16are not claimed by consumers shall be used by the Organization
17only to support its administrative costs and to perform the
18activities required under this Act.
 
19    Section 15. Material flows.
20    (a) When a consumer redeems a beverage container in
21accordance with this Act, the Organization becomes the owner
22of that beverage container and may:
23        (1) sell it to a buyer of its choosing after first
24    allowing a beverage producer or a company of its beverage
25    container supply chain to purchase the material at a fair

 

 

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1    market rate; or
2        (2) on its own or via a third party, process the
3    beverage container for refill if it is reusable or has an
4    agreement with one or more third parties that manage
5    reusable beverage containers in the recycling refund
6    system.
7    (b) If a consumer chooses to put a beverage container in
8its curbside recycling receptacle or a drop-off receptacle,
9the operator of the material recovery facility that sorts the
10beverage container or the operator of the drop-off facility
11that receives the beverage container may offer to sell the
12material to the Organization, which then may be required to
13pay a certain percent of the redemption value per beverage
14container under Section 45.
 
15    Section 20. Means of redemption.
16    (a) At each store having a floor space that is greater than
17or equal to 10,000 square feet, excluding only outdoor space,
18the Organization shall, at its expense, install, operate, and
19maintain:
20        (1) bulk bag drop-off for all redeemable beverage
21    containers; and
22        (2) one or more beverage container processing
23    mechanisms that allow the consumer to:
24            (A) redeem all redeemable beverage containers; and
25            (B) immediately receive the refund value.

 

 

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1    (b) At each store having a floor space that is greater than
2or equal to 10,000 square feet, excluding only outdoor space,
3the Organization may, in consultation with the retailer and at
4its expense, install, operate, and maintain additional
5beverage container processing mechanisms beyond what is
6required in subsection (a) to meet the redemption option
7requirements per county in this Section and the performance
8targets in Section 55.
9    (c) At each of its stores having a floor space that is
10greater than or equal to 10,000 square feet, excluding only
11outdoor space, the retailer shall decide where in each store
12the Organization will, on space the retailer controls inside
13or outside the store, install, operate, and maintain beverage
14container processing mechanisms.
15    (d) At each of its stores having a floor space that is
16greater than or equal to 1,000 square feet but less than 10,000
17square feet, excluding only outdoor space, the retailer shall,
18upon the Organization's request, allow the Organization to
19install, operate, and maintain beverage container processing
20mechanisms necessary to meet the redemption option
21requirements per county in this Section and the performance
22targets in Section 55 on space of the retailer's choosing that
23it controls inside or outside the store.
24    (e) A retailer who operates a store having a floor space
25that is less than 1,000 square feet, excluding outdoor space,
26has no duty under this Act to host a beverage container

 

 

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1processing mechanism.
2    (f) Notwithstanding subsections (a) through (e):
3        (1) the retailer may make available more than the
4    required space for beverage container processing
5    mechanisms;
6        (2) the Organization may install, operate, and
7    maintain more beverage container processing mechanisms on
8    the additional space made available under paragraph (1);
9    and
10        (3) a retailer at any of its stores with more than
11    1,000 square feet, upon request by the Organization
12    regarding a particular store of the retailer, must offer
13    for sale at that particular store of the retailer the
14    standard bags that the Organization deems necessary to
15    operate a bag-drop program.
16    (g) A retailer is exempt from the requirements of
17subsections (a) through (f) at stores the retailer operates
18that:
19        (1) sell beverage containers as an inconsequential
20    amount of the store's annual revenue, meaning less than 5%
21    of the store's annual revenue, through stand-alone vending
22    machines, stand-alone refrigerator cases, or similar
23    means; or
24        (2) primarily prepare food for sale.
25    (h) The Agency, in consultation with the Organization and
26retailers, shall develop a formula to determine how to fairly

 

 

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1compensate annually the retailer for use of the space at each
2store of the retailer that the retailer permits the
3Organization to install, operate, and maintain beverage
4container processing mechanisms.
5    (i) The Organization shall, at the request of a retailer
6that owns a store at which it is operating beverage container
7processing mechanisms, provide the consumer the option to
8redeem its refund value for a credit at the retailer in
9addition to any financial incentive beyond the refund value
10that the retailer chooses to provide the consumer.
11    (j) Through the redemption mechanisms established at
12retailers or at other locations, the Organization shall
13install, service, and maintain at least the number of beverage
14container processing mechanisms necessary to meet the minimum
15number determined under subsection (k) for each of the
16following classes of counties:
17        (1) counties with a population density that is less
18    than 250 individuals per square mile;
19        (2) counties with a population density that is greater
20    than or equal to 250 individuals per square mile but less
21    than 500 individuals per square mile;
22        (3) counties with a population density that is greater
23    than or equal to 500 individuals per square mile but less
24    than 750 individuals per square mile;
25        (4) counties with a population density that is greater
26    than or equal to 750 individuals per square mile but less

 

 

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1    than 1,000 individuals per square mile;
2        (5) counties with a population density that is greater
3    than or equal to 1,000 individuals per square mile but
4    less than 5,000 individuals per square mile; and
5        (6) counties with a population density that is greater
6    than or equal to 5,000 individuals per square mile.
7    (k) The Organization shall determine the minimum number of
8each beverage container processing mechanism required in each
9county based on the classification in subsection (j) and the
10following criteria:
11        (1) the number of stores in the county that host
12    beverage container processing mechanisms;
13        (2) the number of stores in the county that must, upon
14    request by the Organization, host beverage container
15    processing mechanisms;
16        (3) the proximity between the stores in paragraphs (1)
17    and (2), their proximity to residents, and their proximity
18    to public transit;
19        (4) the size of the stores in paragraphs (1) and (2);
20        (5) the percentage of county residents with a car; and
21        (6) the percentage of county residents below the
22    federal poverty line.
23    (l) By no later than the date upon which covered beverage
24containers are sold or offered for sale in the State with the
25refund value specified in Section 10, the Organization shall
26operate in each county that contains an area of environmental

 

 

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1justice concern directly, in partnership or through contract
2with another entity, at least one redemption site that:
3        (1) provides written information about the redemption
4    process in at least 3 languages other than English and a QR
5    code that provides information in additional non-English
6    languages spoken in the county; and
7        (2) is staffed by persons trained to communicate
8    appropriately and to deliver services effectively to
9    persons in culturally diverse and underserved communities.
10    (m) By no later than the date upon which covered beverage
11containers are sold or offered for sale in the State with the
12refund value specified in Section 10, at least 5 of the
13redemption mechanisms the Organization operates directly, in
14partnership or through contracting with another entity, shall
15be mobile redemption sites that operate at least 40 hours per
16week, excluding local, State, or federal holidays, and shall
17be designed to:
18        (1) provide services to persons who redeem high
19    volumes of beverage containers; and
20        (2) collect beverage containers for redemption from
21    persons who are physically impaired or otherwise unable to
22    transport beverage containers to a redemption center.
23    (n) The Organization may enter into an agreement to
24install, operate, and maintain additional beverage container
25processing mechanisms at any location in order to meet:
26        (1) the redemption option requirements under this

 

 

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1    Section for each county; and
2        (2) the performance targets required in Section 55.
3    (o) Any facility that the Organization sets up in the
4State to aggregate, sort, and process the material collected
5at various redemption locations under this Act may:
6        (1) accept, pursuant to a reasonable process the
7    Organization may establish, beverage containers that are
8    eligible for redemption and are submitted in the
9    Organization's standard redemption bag, as designated by
10    the Organization; and
11        (2) provide a nonprofit organization with a premium to
12    be determined and paid for by the Organization.
13    (p) The public shall have access to redeem beverage
14containers in accordance with this Section for not less than
1510 hours each day:
16        (1) except on federal, State, or local holidays;
17        (2) except at a facility set up by the Organization to
18    aggregate, sort, and process redeemed beverage containers;
19    or
20        (3) unless restricted by the open hours of the store
21    in which the beverage container processing mechanism is
22    being operated.
23    (q) The Organization must provide information to the
24public detailing how consumers can alert the Organization to
25problems at beverage container processing mechanisms operated
26by the Organization. The information shall be provided via:

 

 

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1        (1) the Organization's website; and
2        (2) clearly visible signage at each beverage container
3    processing mechanism that the Organization operates.
4    (r) The Organization may establish reasonable terms and
5conditions for the use of a beverage container processing
6mechanism.
 
7    Section 25. Labeling requirements.
8    (a) A beverage producer, distributor, or importer shall
9include the abbreviation "RV" on a clearly visible portion of
10the top or side of each beverage container that is sold by the
11beverage producer, distributor, or importer in the State.
12    (b) The Organization may require that any beverage
13producer, distributor, or importer include, on any space that
14is on the top or side of each beverage container sold in the
15State, the clearly visible abbreviation of the State and
16applicable redemption refund value under Section 10.
17    (c) A beverage producer, distributor, or importer may
18include a barcode or unique code verification on a beverage
19container to automatically identify it.
 
20    Section 30. Timing.
21    (a) By no later than 24 months after the effective date of
22this Act, covered beverage containers that are sold in the
23State must be redeemable for the applicable redemption refund
24value under Section 10.

 

 

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1    (b) The Agency may permit:
2        (1) up to an additional 365 days to meet the deadline
3    specified in subsection (a); or
4        (2) any delays needed to align the implementation
5    timing of the recycling refund system in this Act with any
6    broader extended producer responsibility system that has
7    become law in the State for packaging or printed paper
8    more generally.
9    (c) The Organization may choose at any time to make one or
10more non-covered beverage containers eligible for the same
11refund value as covered beverage containers and, once
12eligible, the Organization must still comply with all the
13requirements of this Act, including performance targets.
14    (d) If the market share of a non-covered beverage
15container in any 2 full calendar years in a row grows to 5%
16more than what it was over the average of 2 full calendar years
17before the effective date of this Act, then the Organization
18must:
19        (1) make that non-covered beverage container eligible
20    for the same refund value as covered beverage containers
21    and still comply with all the requirements of this Act,
22    including performance targets; or
23        (2) charge its members for each non-covered beverage
24    container sold in the State the amount of the refund value
25    for an equivalent in size covered beverage container and
26    use the revenue from this charge only to support the

 

 

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1    grants permitted under this Act to improve education,
2    outreach, or infrastructure to enhance the recycling or
3    reuse of beverage containers.
 
4    Section 35. Prohibitions.
5    (a) No person shall distribute, import, or sell beverage
6containers in or into the State except in compliance with this
7Act.
8    (b) No person shall redeem under this Act a beverage
9container that was not sold in the State to a consumer in the
10State.
 
11    Section 40. Agency duties. On or before October 1 of each
12year after the effective date of this Act, the Agency shall
13identify and communicate to the Organization the Agency's
14total estimated annual cost to implement, administer, and
15enforce this Act, including the cost of adopting rules under
16this Act, in the next calendar year, after:
17        (1) subtracting the moneys that the Agency collected
18    from penalties assessed under this Act, which shall be
19    applied toward fulfilling the Agency's responsibilities
20    under this Act in the next calendar year; and
21        (2) adding any expenses incurred in fulfilling the
22    Agency's responsibilities under this Act that are not
23    covered by the annual cost from the previous year.
 

 

 

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1    Section 45. Drop-off facilities and material recovery
2facilities.
3    (a) Each drop-off facility or material recovery facility
4may submit the following information to the Organization:
5        (1) the number of tons of each beverage container type
6    eligible for a refund that it sold or transferred out of
7    its facility in the last full calendar year before a
8    beverage container was sold with an applicable refund
9    value; and
10        (2) an estimate of the tons under paragraph (1) that
11    were received from sources in the State.
12    (b) The optional information detailed in subsection (a)
13shall be submitted on or before April 1 and shall pertain only
14to the previous full calendar year.
15    (c) By July 1 of each calendar year, starting the first
16full year and ending the fourth full year after covered
17beverage containers are sold with the applicable refund value,
18the Organization must make an annual payment directly to each
19material recovery facility and drop-off facility operator that
20submits data according to subsection (a) that:
21        (1) equals 5% of the scrap value of the material the
22    Organization sold in the preceding calendar year; and
23        (2) is based on the data submitted by the material
24    recovery facility and drop-off facility operators under
25    subsection (a).
26    (d) The operators of material recovery facilities or

 

 

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1drop-off facilities shall use an industry-standard scale to
2measure the weight of all beverage containers that enter the
3facility.
4    (e) When the operator of a material recovery facility or
5drop-off facility chooses to offer for purchase to the
6Organization beverage containers purchased in the State and
7redeemable under this Act, the Organization shall buy those
8beverage containers at the amounts specified in this Section
9as long as the quality standards described in this Section are
10met.
11    (f) For the first 10 years after eligible beverage
12containers are sold with a refund value, the Organization
13shall pay material recovery facilities and drop-off
14facilities:
15        (1) 100% of the refund value for each covered beverage
16    container:
17            (A) made of 90% or more aluminum, polyethylene
18        terephthalate (PET), or high-density polyethylene
19        (HDPE) that the material recovery facility or drop-off
20        facility offers to the Organization:
21                (i) as a bale or loose; and
22                (ii) that meets the relevant and most recently
23            published Institute of Scrap Recycling Industries
24            specifications.
25            (B) made of 90% or more glass that the material
26        recovery facility or drop-off facility offers to the

 

 

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1        organization:
2                (i) loose; and
3                (ii) as furnace-ready cullet;
4        (2) 50% for beverage containers made of 90% or more
5    glass that the material recovery facility or drop-off
6    facility offers to the organization and that contains 15%
7    or less non-glass residuals or fines.
8    (g) Following the first 10 years after eligible beverage
9containers are sold with a refund value, the Organization
10shall pay material recovery facilities and drop-off facilities
11for each eligible beverage container it is offered as a bale or
12loose with the following structure based on each material
13type:
14        (1) for beverage containers made of 90% or more
15    aluminum, operators of material recovery facilities and
16    drop-off facilities receive 100% of the refund value if
17    they meet the relevant and most recently published
18    Institute of Scrap Recycling Industries specifications;
19        (2) for beverage containers made of 90% or more glass,
20    operators of material recovery facilities and drop-off
21    facilities receive:
22            (A) 100% of the refund value if the material
23        recovery facility or drop-off facility provides
24        furnace-ready cullet; and
25            (B) 50% of the refund value if the material
26        recovery facility or drop-off facility provides glass

 

 

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1        that contains 15% or less non-glass residuals or
2        fines;
3        (3) For beverage containers made of 90% or more
4    polyethylene terephthalate (PET), operators of material
5    recovery facilities and drop-off facilities receive:
6            (A) 100% of the refund value if they are
7        third-party certified as meeting the Association of
8        Plastic Recyclers Grade B model specification for PET
9        bottle bales; and
10            (B) 50% of the refund value if they do not meet the
11        Grade B specification; and
12        (4) For beverage containers made of 90% or more
13    high-density polyethylene (HDPE), operators of material
14    recovery facilities and drop-off facilities receive 100%
15    of the refund value if they are third-party certified as
16    meeting the applicable, natural or colored, Association of
17    Plastic Recyclers HDPE model bale specification.
18    (h) The Agency, in consultation with the Organization and
19material recovery facilities and drop-off facilities and
20associations that represent material recovery facilities and
21drop-off facilities, shall develop and publish a methodology
22for how to determine the average amount of redeemable beverage
23containers that were purchased in the State per ton of
24material offered to the Organization.
25    (i) When the Organization pays the operators of the
26material recovery facility and drop-off facility the

 

 

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1appropriate portion of the redemption value per beverage
2container, it may do so with an assumption that the beverage
3containers sold to it have a breakdown of containers that are
424 ounces or less and more than 24 ounces equivalent to what
5percentage of that container type that consumers redeemed in
6the last calendar year and that were 24 ounces or less and more
7than 24 ounces.
8    (j) The Organization shall become the owner of the
9beverage containers for which it pays the amount under
10paragraphs (f) and (g) and may sell the material to the buyer
11of its choosing for revenue after first allowing a beverage
12producer or a company in its beverage container supply chain
13to purchase the material at a fair market rate.
14    (k) An operator of a material recovery facility or
15drop-off facility shall pay for up to one independent audit
16per calendar year on the quality and quantity of its material
17upon request by the Organization and shall allow the
18Organization to conduct 2 additional audits per calendar year
19on the quality and quantity of its material upon request by the
20Organization and at the Organization's expense.
21    (l) All thresholds in this Section tied to externally
22referenced documents, such as the model bale specifications
23from the Association of Plastic Recyclers and the Institute of
24Scrap Recycling Industries, shall reflect the most current
25version of the externally referenced documents, including any
26updates made after the effective date of this Act.
 

 

 

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1    Section 50. Distributor and Importer Responsibility
2Organization.
3    (a) All distributors and importers shall join as members
4of a Distributor and Importer Responsibility Organization. A
5distributor or importer operating in violation of this
6requirement is subject to penalties described in Section 85.
7The Organization must be established and operated as a
8nonprofit organization or a cooperative corporation.
9    (b) Only one Organization may operate in the State. The
10Organization may decide to operate jointly with similar
11organizations. The Organization shall elect a governing Board
12of Directors of the Organization composed of Organization
13members. The Organization shall be led by an Executive
14Director elected by the Board of Directors of the
15Organization.
16    (c) The Organization shall charge a membership fee that
17funds the Organization's costs of operation to meet the
18requirements of this Act minus the unclaimed redemption
19refunds and the revenue from the sale of the redeemed beverage
20containers, both of which must stay with the Organization to
21fund its operations to meet the requirements of this Act. The
22Organization may develop other revenue sources. The
23Organization shall charge membership fees that vary by
24material type and that reflect:
25        (1) the cost of collecting, transporting, sorting, and

 

 

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1    processing each beverage container type, among other costs
2    that may vary by beverage container type;
3        (2) the monetary value of each beverage container
4    type; and
5        (3) the number of units of each beverage container
6    type that each member distributes or sells in the State.
7    (d) The Organization shall submit within 12 months of the
8effective date of this Act and every 5 years thereafter a plan
9to the Agency for approval that describes how the Organization
10will meet its requirements under this Act over the next 5
11years.
12    (e) The Agency must review and approve, deny, or request
13additional information for a draft plan by the Organization by
14no later than 120 days after its receipt date. The Agency must
15post the draft plan on the Agency's website and allow public
16comment for no less than 45 days before approving, denying, or
17requesting additional information on the draft plan.
18    (f) If the Agency denies or requests additional
19information regarding a draft plan, the Agency must provide
20the Organization the reasons, in writing, why the plan is not
21sufficient. The organization must submit a revised draft plan
22to the Agency within 60 days of receipt of the Agency's action.
23The Agency shall review and approve or disapprove of the
24revised draft plan within 60 days of receiving it.
25    (g) The Organization may revise and submit a draft plan to
26the Agency not more than twice. If, after the second revised

 

 

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1plan is submitted, the Agency determines that the draft plan
2does not meet the requirements of this Act, the Agency must
3modify the draft plan as necessary for it to meet the
4requirements of this Act and approve it.
5    (h) The Organization shall publish publicly on its
6website:
7        (1) within 18 months after the effective date of this
8    Act, an Agency-approved initial plan for how the
9    Organization will meet its requirements under this Act
10    over the next 5 years, including the performance targets
11    specified in Section 55 and the minimum number of beverage
12    container processing mechanisms required in each county
13    under Section 20; and
14        (2) no later than every 5 years after publication of
15    the initial plan under paragraph (1), an updated plan on
16    how the Organization will continue to meet its
17    requirements under this Act, including the performance
18    targets specified in Section 55 and the minimum number of
19    beverage container processing mechanisms required in each
20    county under Section 20.
21    (i) The Organization shall pay:
22        (1) for any beverage container processing mechanism or
23    self-service kiosk that the Organization installs,
24    maintains, and operates at any location to meet or exceed:
25            (A) the performance targets under Section 55; or
26            (B) the redemption option requirements under

 

 

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1        Section 20 for each county;
2        (2) for any facilities in the State necessary to
3    efficiently aggregate, sort, and process the beverage
4    containers collected at redemption locations under this
5    Act;
6        (3) to upkeep a list and map on its website of all
7    redemption locations and the redemption options available
8    at each redemption location;
9        (4) by December 31 of each year, an annual installment
10    to the Agency according to the formula under Section 40,
11    but not to exceed $500,000 per year; the installment shall
12    fund the Agency's anticipated costs in the following year
13    to implement, administer, and enforce this Act, including
14    adopting rules under this Act;
15        (5) by December 31 of each year, reimbursement for
16    enforcement costs that may result in a total reimbursement
17    by the Organization to the Agency more than $500,000 per
18    year as long as the funded enforcement activities
19    identified violations of this Act and resulted in
20    penalties under this Act;
21        (6) the cost of the standard bags described under
22    subsection (f) of Section 20;
23        (7) the material recovery facility and drop-off
24    facility payments under Section 45;
25        (8) a survey in each even-numbered year of consumers
26    for whom refunds paid under this Section constitute a

 

 

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1    significant portion of their income to determine if their
2    needs are being met.
3    (j) If the standard bag the Organization sells to
4consumers under subsection (f) of Section 20 is made of
5plastic film, the Organization shall:
6        (1) ensure that the standard bag sold is composed of a
7    minimum of 50% recycled content; and
8        (2) demonstrate to the Agency that the plastic film
9    waste from the standard bags will be recycled in the best
10    commercially available manner.
11    (k) The Organization is not required to pay a redemption
12refund under this Act for:
13        (1) any beverage container that visibly contains or is
14    visibly contaminated by a substance other than water,
15    residue of the beverage contained within the beverage
16    container as sold by a retailer to a consumer, or dust;
17        (2) any beverage container that is crushed, broken, or
18    damaged to the extent that the brand appearing on the
19    beverage container cannot be identified;
20        (3) any beverage container that the Organization has
21    reasonable grounds to believe was procured in another
22    state; or
23        (4) any beverage container for which the Organization
24    has reasonable grounds to believe a redemption refund has
25    already been issued under this Act or under any other
26    state's law, rule, or regulation.

 

 

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1    (l) The Organization may:
2        (1) use, or award grants using, moneys received or
3    generated under this Act for:
4            (A) collecting litter that includes beverage
5        containers; and
6            (B) improving education, outreach, or
7        infrastructure to enhance the recycling or reuse of
8        beverage containers;
9        (2) use moneys received or generated under this Act to
10    directly, or in partnership with a nongovernmental
11    organization, provide services to or enhance the
12    redemption experience of minority or low-income consumers
13    who redeem a beverage container; and
14        (3) use moneys generated under this Act to pay members
15    or support the management and activities of an advisory
16    committee established under Section 65.
 
17    Section 55. Targets.
18    (a) The Organization shall meet the following redemption
19targets:
20        (1) beginning with the second full calendar year after
21    eligible beverage containers are sold in the State with
22    the applicable redemption refund value under Section 10,
23    the annual redemption rate from consumers to a beverage
24    container processing mechanism for all redeemable beverage
25    containers is at least 70%;

 

 

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1        (2) beginning with the fourth full calendar year after
2    all beverage containers are sold in the State with the
3    applicable redemption refund value under Section 10, the
4    annual redemption rate from consumers to a beverage
5    container processing mechanism for all redeemable beverage
6    containers is at least 75%; and
7        (3) beginning with the sixth full calendar year after
8    all beverage containers are sold in the State with the
9    applicable redemption refund value under Section 10, the
10    annual redemption rate from consumers to a beverage
11    container processing mechanism for all redeemable beverage
12    containers is at least 85%.
13    (b) The Organization shall meet the following recycling
14rate targets through material consumers redeem through
15beverage container processing mechanisms or through material
16the Organization receives from drop-off facilities or material
17recovery facilities:
18        (1) beginning with the second full calendar year after
19    eligible beverage containers are sold in the State with
20    the applicable redemption refund value under Section 10,
21    the annual recycling rate for all redeemable beverage
22    containers is at least 70%;
23        (2) beginning with the fourth full calendar year after
24    eligible beverage containers are sold in the State with
25    the applicable redemption refund value under Section 10,
26    the annual recycling rate for all redeemable beverage

 

 

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1    containers is at least 75%; and
2        (3) beginning with the sixth full calendar year after
3    all eligible beverage containers are sold in the State
4    with the applicable redemption refund value under Section
5    10, the annual recycling rate for all redeemable beverage
6    containers is at least 85%.
7    (c) At any point that a non-covered beverage container is
8added to the system, the Agency may establish recycling rate
9targets specific to the added beverage container or beverage
10containers, and the added beverage container or beverage
11containers may then not be considered in satisfying the
12targets in subsection (b).
13    (d) If the Organization does not meet a performance rate
14target required under subsections (a) through (c) in any
15calendar year:
16        (1) it must submit to the Agency a revised product
17    stewardship plan no more than 365 days after the data
18    required under Section 60 has most recently been published
19    that showed a performance target required under
20    subsections (a) through (c) was not met, and the Agency
21    review of this revised plan must follow the same
22    guidelines as provided for the initial draft plan in
23    Section 50. The product stewardship plan shall detail the
24    reasons that the performance target was not met and any
25    action the Organization will take to meet the performance
26    target; and

 

 

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1        (2) the Agency shall assess a civil penalty against
2    the Organization for each such violation that is equal to
3    5 cents for each beverage container comprising the
4    difference between the number of beverage containers that
5    were redeemed or recycled and the total number of beverage
6    containers that, if redeemed or recycled, would have met
7    the applicable performance rate target.
8    (e) If the Organization does not meet all redemption and
9recycling rate targets under subsections (a) through (c)
10within 3 years after a product stewardship plan was submitted
11to the Agency under subsection (d), the Agency shall:
12        (1) assess a civil penalty against the Organization
13    once per calendar year that is equal to 10 cents for each
14    beverage container comprising the difference between the
15    number of beverage containers that were redeemed and the
16    total number of beverage containers that, if redeemed,
17    would have met the performance targets;
18        (2) require the Organization to submit a revised
19    product stewardship plan within 365 days after the data
20    required under Section 60 has most recently been published
21    that showed a performance target required under
22    subsections (a) through (c) was not met within 3 years
23    after a product stewardship plan was submitted to the
24    Agency under subsection (d), and the Agency review of this
25    revised plan must follow the same guidelines as provided
26    for the initial draft plan in Section 50;

 

 

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1        (3) require the Organization to hire a third party to
2    evaluate whether the minimum number of beverage container
3    processing mechanisms required in each county in
4    accordance with Section 20 is sufficient to meet the
5    performance targets; and
6        (4) if the third party evaluation under paragraph (3)
7    determines the minimum number of beverage container
8    processing mechanisms is not sufficient, the third party
9    must in its analysis provide a new minimum number of
10    beverage container processing mechanisms per county that
11    will be sufficient to meet the performance targets, and
12    the Organization shall be responsible for meeting the
13    third-party-determined minimum number in each county.
14    (f) If the Organization does not, within 5 years after a
15product stewardship plan was submitted to the Agency under
16subsection (d), meet all recycling and redemption rate targets
17required under subsections (a) through (c), then:
18        (1) the Organization shall detail on the
19    Organization's website why a new Executive Director of the
20    Organization is not necessary if, at the end of the 5-year
21    period, the same person has acted as Executive Director of
22    the Organization for more than 365 days prior to the end of
23    the relevant 5-year period;
24        (2) the Agency may require certain changes to the
25    product stewardship plan; and
26        (3) the Agency shall assess against the Organization a

 

 

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1    civil penalty once per calendar year equal to 15 cents for
2    each beverage container comprising the difference between
3    the number of beverage containers that were redeemed and
4    the total number of beverage containers that, if redeemed,
5    would have met the performance target.
6    (g) Notwithstanding subsections (d) through (f):
7        (1) the penalty for each performance target required
8    in subsection (d) is not in addition to the penalties
9    authorized in subsections (e) and (f);
10        (2) the Agency may, beyond the amounts required in
11    subsections (e) and (f), for the violations specified in
12    subsections (e) and (f) assess once per calendar year an
13    additional annual penalty of up to $50,000,000 if the
14    Organization does not in a particular year eliminate at
15    least 25% of the gap in the previous year from achieving
16    any performance rate target it failed to achieve; and
17        (3) the Agency shall retroactively assess penalties
18    against the Organization if the verification in Section 60
19    finds that the Organization performed worse than initially
20    stated in its public disclosures, and these retroactive
21    penalties shall not result in the Organization paying in
22    total more than it would have paid in penalties with the
23    verified performance levels.
 
24    Section 60. Reporting.
25    (a) On or before July 1 of each calendar year, beginning

 

 

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

 

 

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

 

 

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1    information, including information that can legally be
2    disclosed and that provides insight into the
3    Organization's performance on diversity, equity, and
4    inclusion;
5        (18) the number of consumer complaints per month, by
6    redemption location, during the previous calendar year and
7    each prior year for at least the preceding 5 years, to the
8    extent data is available;
9        (19) the total number of individual consumers per
10    month who filed complaints, by redemption location, during
11    the previous calendar year and each prior year for at
12    least the preceding 5 years, to the extent data is
13    available;
14        (20) a list of all members, their brands of beverage
15    containers, and a breakdown of each member's beverage
16    container packaging mix by beverage container type during
17    the previous calendar year and each prior year for at
18    least the preceding 5 years, to the extent data is
19    available;
20        (21) the buyers of the plastic film waste, if any,
21    generated from the standard bag sold by the Organization
22    to consumers for redemption and how buyers may recycle the
23    plastic film waste;
24        (22) the number of individuals and entities registered
25    to receive electronic deposits of redemption refunds under
26    this Act;

 

 

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1        (23) the results of the survey of consumers for whom
2    refunds paid under this Section constitute a significant
3    portion of their income; and
4        (24) the name of each member of the Organization's
5    Board of Directors.
6    (b) The Organization may rely on reporting by members for
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) The Organization shall hire by June 1 of even-numbered
12years an independent third-party organization to verify within
136 months of its hiring the previous 2 calendar years of data
14publicly disclosed under subsection (a).
15    (d) Once per calendar year, the Agency may require
16verification of information disclosed during the previous
17calendar year by the Organization under this Act. The
18verification shall:
19        (1) occur only after being notified by the
20    Organization on or before August 1 of that calendar year
21    that the Agency is requiring independent third-party
22    verification;
23        (2) be performed by an independent third party;
24        (3) be limited in scope to information that:
25            (A) the Organization is required to report under
26        this Act;

 

 

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1            (B) the Agency specifies for third-party
2        verification under this subsection; and
3            (C) appeared, or should have appeared, in the
4        Organization's annual report for the previous calendar
5        year; and
6        (4) be conducted on or before December 31 of the
7    calendar year in which it is required by the Agency.
8    (e) With the data verification activities under
9subsections (c) and (d), the Organization shall:
10        (1) pay the full cost of the third-party verification;
11    and
12        (2) provide the independent third party with full
13    access to the underlying data supporting the disclosure in
14    subsection (a)that is being verified.
15    (f) The Organization must establish safeguards to ensure
16members do not have access to information regarding:
17        (1) the price paid by any individual buyer for
18    beverage container material sold by the Organization under
19    this Act; and
20        (2) the amount of each beverage container material
21    sold by the Organization to each individual buyer.
22    (g) On or before the last day of February of each calendar
23year, each member of the Organization must report to the
24Organization all data necessary to satisfy the disclosure
25requirements of this Section. The Organization shall ensure
26that data provided by members under this subsection is

 

 

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1confidential.
 
2    Section 65. Operations Advisory Committee; Equity and
3Access Advisory Committee.
4    (a) The Organization shall establish an Operations
5Advisory Committee that represents a range of interested and
6engaged persons and entities, including, at a minimum, one of
7each of the following:
8        (1) a beverage container manufacturer or a beverage
9    container manufacturer's trade association that rotates
10    between the leading beverage container types;
11        (2) a beverage producer or a beverage producer's trade
12    association;
13        (3) a unit of local government or group of units of
14    local government;
15        (4) the State;
16        (5) an environmental nonprofit organization;
17        (6) an entity that buys beverage containers from, or
18    recycles them for, the Organization; and
19        (7) a retailer or a retailer's trade association.
20    (b) The Operations Advisory Committee may:
21        (1) provide written or oral comments directly to the
22    Board of Directors and the Executive Director no more than
23    4 times a year; and
24        (2) every even-numbered calendar year, submit to the
25    Organization a written report that the Organization must

 

 

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

 

 

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1    publish on its website upon request by the Equity and
2    Access Advisory Committee and that contains:
3            (A) the Equity and Access Advisory Committee's
4        feedback on whether the Organization is appropriately
5        considering the diverse needs and cultures of people
6        who redeem beverage containers under this Act; and
7            (B) the Equity and Access Advisory Committee's
8        suggestions on how the Organization can improve in
9        terms of equity and access.
 
10    Section 70. Reuse study.
11    (a) The Agency shall conduct a study on the infrastructure
12that is needed in the State to support a robust system for
13reusable beverage containers and on any changes that would be
14required in order to ensure effective integration of reusable
15beverage containers in the deposit return system.
16    (b) The study required in subsection (a) shall be
17published on the Agency's website and filed with the General
18Assembly no later than 2 years after the effective date of this
19Act.
20    (c) The cost of the study shall be included in a
21reimbursement request to the Organization under Section 80.
 
22    Section 75. Beverage container grant program.
23    (a) The Organization shall transfer 5% of the revenue from
24unclaimed redemption refunds in the previous calendar year to

 

 

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1the Agency by July 1 of each calendar year, starting with the
2first full calendar year after one or more beverage container
3types is sold with a redemption refund value under this Act, to
4fund a beverage container grant program.
5    (b) The Agency, with the money available in the beverage
6container grant program, shall annually fund, through a
7competitive grant process, education, infrastructure, or
8litter clean-up activities that increase the reuse or
9recycling of beverage containers or reduce the litter from
10beverage containers in the State.
11    (c) The Agency shall not give grants such that any one
12beverage container type receives more than 25% of the benefits
13from the activities funded.
14    (d) The following entities are eligible for a grant under
15the beverage container grant program:
16        (1) a school or an institution of higher education;
17        (2) a nonprofit organization;
18        (3) a county or municipal corporation;
19        (4) a federally recognized tribe;
20        (5) a for-profit organization; and
21        (6) a public-private partnership.
22    (e) The cost to administer the beverage container grant
23program shall be included in a reimbursement request to the
24Organization under Section 80.
 
25    Section 80. Reimbursement to the Agency.

 

 

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1    (a) The Organization shall reimburse the Agency for costs
2incurred by the Agency under this Act, not to exceed $500,000
3per year, in accordance with paragraph (4) of subsection (i)
4of Section 50.
5    (b) The Organization shall reimburse the Agency for
6enforcement costs incurred by the Agency under this Act, in
7accordance with paragraph (5) of subsection (i) of Section 50,
8that may take the total amount reimbursed by the Organization
9to the Agency beyond $500,000 per year as long as the funded
10enforcement activities identified violations of this Act and
11resulted in penalties under this Act.
 
12    Section 85. Enforcement.
13    (a) In addition to any other applicable civil penalties or
14criminal fines, the Agency may impose a civil penalty for each
15day that a violation of this Act, as may be defined by
16subsequent rulemaking, occurs that is:
17        (1) $100 for the first violation of any requirement
18    under this Act; and
19        (2) not more than $1,000 for each subsequent violation
20    of that requirement.
21    (b) A person who takes any of the following actions with
22the intent to knowingly defraud is subject to subsection (c),
23along with any other federal, State, or local enforcement
24action arising from the action:
25        (1) redeeming out-of-state beverage containers,

 

 

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1    rejected beverage containers, line defects, or beverage
2    containers that have already been redeemed;
3        (2) seeking a redemption refund under this Act by
4    returning an already-redeemed beverage container at a
5    redemption location;
6        (3) bringing out-of-state beverage containers,
7    rejected beverage containers, or line defects to the State
8    marketplace for redemption; or
9        (4) selling beverage containers not distributed or
10    imported into the State by a member of the Organization.
11    (c) A violation of subsection (b) resulting in financial
12gain by the violator shall subject the violator to the
13following:
14        (1) If the amount of moneys gained is equal to or less
15    than $950, the violator is subject to:
16            (A) imprisonment in a county jail for not more
17        than 6 months;
18            (B) a criminal fine not exceeding $1,000; or
19            (C) both the fine and imprisonment described in
20        subparagraphs (A) and (B).
21        (2) If the amount of moneys gained is more than $950,
22    the violator is subject to:
23            (A) imprisonment in a county jail for not more
24        than one year;
25            (B) a criminal fine not exceeding $10,000; or
26            (C) both the fine and imprisonment described in

 

 

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1        subparagraphs (A) and (B).
2    (d) The Agency may bring a civil action to enjoin the
3distribution, importation, or sale in the State of a beverage
4container in violation of this Act.
5    (e) The Agency may assess a penalty of up to $30,000 in a
6calendar year against the Organization for each redemption
7location at which the Organization receives more than an
8average of 100 individuals' complaints per month, according to
9the public reporting required under Section 60.
10    (f) After notification from the Agency of noncompliance
11with this Act and a 60-day cure period, the Agency may
12administratively impose a civil penalty per day to any
13distributor or importer who fails to participate as an
14Organization member as required under Section 10. The civil
15penalty per day shall be the greater of $10,000 or 10 cents per
16beverage container sold by the distributor or importer in the
17State while not a member. Any distributor or importer who
18incurs a penalty under this Section may appeal the penalty to
19the Agency.
20    (g) All penalties the State recovers under this Act:
21        (1) up to the first $5,000,000 per calendar year,
22    shall only be used to administer this Act; and
23        (2) beyond the first $5,000,000 per calendar year,
24    shall only be put toward the beverage container grant
25    program created in Section 75.
 

 

 

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1    Section 90. Administration. The Agency shall administer
2and enforce the provisions of this Act not otherwise allocated
3to another person or entity under this Act.".