SB0854sam001 98TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 2/20/2014

09800SB0854sam001 LRB098 05088 MGM 55905 a

AMENDMENT TO SENATE BILL 854

AMENDMENT NO. ______. Amend Senate Bill 854 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Plastic Bag and Film Recycling Act.

Section 5. Findings and purpose.

(a) The General Assembly finds all of the following:

(1) Senate Bill 303 of the 95th General Assembly, as amended, became law in August of 2007 (effective January 1, 2008) and was referred to as the Plastic Bag Recycling Act (P.A. 95-268).

(2) The Plastic Bag Recycling Act required a Task Force to be assembled to administer a pilot collection program for plastic bags and plastic film within the confines of Lake County, Illinois that would engage retail businesses that operated stores of 10,000 square feet or greater to voluntarily participate in the pilot program, and, in May of 2010, the Task Force submitted a report of the pilot program findings to the Governor and the leadership of the General Assembly.

(3) The Task Force findings referred to data contained in the Illinois Commodity Waste Generation and Characterization Study commissioned in 2008 by the Illinois Department of Commerce and Economic Opportunity which indicated that nearly 500,000 tons of plastic film material is generated each year in Illinois that has a potential market value of $100 million; however, 98.5% of this plastic film is landfilled. The Study also found that plastic grocery bags represent only about 15% of all plastic film disposed of in Illinois landfills, which led the Task Force to focus attention on not only the recovery of plastic grocery bags, but also the recovery of plastic film product wrap that is used to package numerous consumer products.

(4) The Task Force concluded that the disposal of plastic bags and film represents a tremendous waste of non-renewable resources that can be recycled, that Illinois lacked an adequate collection infrastructure, and that participating retailers responded favorably overall to the pilot program and intended to continue collecting plastic bags from their customers, with the majority of them indicating that their overall costs to operate the collection program were minimal and were built into daily operational procedures.

(5) Markets for plastic bags and film do exist, and, if this material can be successfully diverted from final disposal, it has the potential to conserve a non-renewable resource by reusing it as a feedstock for new plastic bags and plastic lumber, as well as for other beneficial uses. In addition to conserving resources, the recycling of plastic bags and film reduces air, land, and water pollution.

(6) The 2010 Recycling Economic Information Study Update for Illinois estimates that the plastics industry employs approximately 3,114 people in Illinois, generating an annual payroll of $98,887,000, and, based on this data, it is estimated that a statewide plastic bag and film recycling program would generate over 300 jobs with an estimated payroll of $9,500,000.

(7) The plastic bag industry has taken great strides in promoting increased recycling of plastic bags in the State, and this Act recognizes that continued and increased responsibility of industry to support increased plastic bag recycling is in the State's and the public's interests.

(b) The purpose of this Act is to set forth the procedures by which the collection and recycling of plastic bags and film will be accomplished in Illinois with the voluntary participation of the retail community.

Section 10. Definitions. As used in this Act:

"Agency" means the Illinois Environmental Protection Agency.

"Consumer" means any person who makes a purchase at retail.

"Distributor" or "wholesaler" means a person who buys or otherwise acquires plastic bags from another source and sells or offers to sell those plastic bags, either in bulk or otherwise, to retailers in Illinois.

"Manufacturer" means a manufacturer of plastic carryout bags used or distributed in Illinois.

"Percent post-consumer recycled content" means the percentage of recycled plastic carryout bags, plastic film product wrap, or both, that is present in a new plastic carryout bag following an original use of the bag or wrap by a consumer.

"Person" means any individual, partnership, co-partnership, firm, company, corporation, association, joint stock company, trust, estate, political subdivision, State agency, or any other legal entity, or their legal representative, agent, or assigns.

"Plastic carryout bag" means any polyethylene bag that is provided to a consumer by a retailer at checkout.

"Plastic film product wrap" means a polyethylene wrap used to cover, wrap, or otherwise package consumer goods, such as paper towels, bathroom tissue, dry cleaning bags, newspaper bags, cases of sodas, diapers, and other dry goods.

"Recycling" means any process by which plastic carryout bags, plastic film product wrap, or both, are collected and processed and returned to the economic mainstream in the form of raw materials or products. "Recycling" does not include energy recovery or energy generation by means of combusting plastic carryout bags and plastic film product wrap, and it does not include any use within the permitted boundaries of a municipal solid waste landfill unit.

"Retailer" means a person engaged in the business of making sales at retail that generates occupation or use tax revenue.

Section 15. Registration and fee required.

(a) Beginning July 1, 2013, each manufacturer shall register with the Agency annually and, at the time of registration, shall pay an annual registration fee of $500 to the Agency. Registrations and registration fees are due by July 1 of the year for which they are submitted and shall remain valid until July 1 of the following year. A manufacturer shall not be considered registered until the Agency receives a complete registration form, the required registration fee, and the recycling plan. Registrations must be submitted on forms and in a format prescribed by the Agency. The Agency shall deposit all registration fees collected under this Section into the Environmental Protection Permit and Inspection Fund.

(b) No manufacturer shall sell or offer to sell plastic carryout bags for use or distribution in Illinois unless the manufacturer is registered with the Agency and has paid the required registration fee in accordance with subsection (a) of this Section.

(c) After registering a manufacturer, the Agency shall immediately assign to that manufacturer a unique vendor number.

Section 20. Manufacturer label required. Beginning July 1, 2013, no manufacturer shall sell or offer to sell plastic carryout bags in Illinois unless the name of the manufacturer or the manufacturer's unique vendor number assigned by the Agency pursuant to Section 15 is printed on the bag so that the manufacturer's identity is readily identifiable.

Section 25. Plastic carryout bag and plastic film product wrap recycling plan.

(a) No later than July 1, 2013, each manufacturer shall develop and thereafter maintain a plan for supporting the collection and recycling of plastic carryout bags and plastic film product wrap and shall submit a copy of the plan to the Agency for posting to the Agency's website. Manufacturers may develop and implement the plan individually, or jointly with other manufacturers or units of local government, retail establishments, solid waste agencies, or any other entity they deem appropriate. The plan shall:

(1) describe the recycling program to be implemented throughout the State, including collection locations, events, or both;

(2) include a detailed description as to how the plan will be implemented;

(3) describe the performance measures that will be used to document collection efforts for plastic carryout bags and plastic film product wrap;

(4) include a public education plan on the reuse and recycling of plastic carryout bags and plastic film product wrap; and

(5) include the mailing address or email address of the manufacturer for the submission of comments regarding the plan.

(b) No later than August 1, 2013 or 30 days after receiving the plan, whichever is later, the Agency shall post the plan on its website. Within 30 days after the plan is posted on the Agency's website, a person may provide written comments to the manufacturer regarding the plan. The manufacturer whose plan is commented on shall respond in writing to the person making the comments within 30 days after receipt of the comments, and may make revisions to the plan if appropriate. If a plan receives no comments within the 30-day comment period, it shall be considered final after the comment period ends. If comments are received on a plan, it shall be considered final after the comments have been responded to in writing by the manufacturer and a revised plan, if applicable, has been submitted, no later than October 1, 2013, to the Agency for posting on its website no later than November 1, 2013.

(c) A manufacturer may prepare a revised plan and submit it to the Agency, for posting on the Agency's website no later than 30 days after receipt by the Agency, in response to changed circumstances or needs.

(d) Each manufacturer is responsible for all costs associated with the development and implementation of its plan.

(e) By April 1, 2014, and by April 1 of each year thereafter, each manufacturer shall submit a report to the Agency that includes, for the previous calendar year, a description of the manufacturer's collection and recycling program, including, but not limited to, the collection locations for plastic carryout bags and plastic film product wrap, the processing locations for the collected plastic carryout bags and plastic film product wrap, the weight in pounds of plastic carryout bags and plastic film product wrap collected and processed for recycling, the weight in pounds of plastic carryout bags the manufacturer sold for use or distribution in Illinois, the percentage of plastic carryout bags and plastic film product wrap collected and processed for recycling based on the weight in pounds of plastic carryout bags and plastic film product wrap collected and processed for recycling and the weight in pounds of plastic carryout bags sold for use or distribution in Illinois, and samples of the education materials provided to consumers. Beginning with the annual report due April 1, 2014, the report shall also state the amounts of pre-consumer recycled content and post-consumer recycled content in the plastic carryout bags the manufacturer sold for use or distribution in Illinois. Additional requirements for specific annual reports include:

(1) a demonstration in the annual report for calendar year 2014 that 75% of the population in Illinois resides within 10 miles of a plastic carryout bag and plastic film product wrap collection site, and that collection sites are located in at least 90% of Illinois counties;

(2) a demonstration in the annual report for calendar year 2015 that 80% of the population in Illinois resides within 10 miles of a plastic carryout bag and plastic film product wrap collection site; and

(3) a demonstration in the annual report for calendar year 2015 that the percentage of plastic carryout bags and plastic film product wrap recycled increased by at least 12% from the recycling rate calculated in the annual report for calendar year 2014. Notwithstanding the required recycling rate increase specified in this item (3), manufacturers are encouraged to work with units of local government, retail establishments, solid waste agencies, or other entities they deem appropriate to try to reach a recycling rate increase of 20%.

If these additional requirements specified in items (1) through (3) of this subsection (e) cannot be demonstrated in the appropriate annual reports, the penalties under Section 50 of this Act shall be applicable.

(f) A manufacturer shall conduct and document due diligence assessments of any person with whom the manufacturer contracts or arranges for any one or more of the following: a recycling collection location; collection, processing or transportation of plastic carryout bags or plastic film product wrap; or recycling of plastic carryout bags and plastic film product wrap.

(g) A manufacturer may fulfill the requirements of this Section either individually or in participation with other manufacturers.

Section 30. Requirements applicable to retailers.

(a) Beginning January 1, 2014, no retailer shall purchase plastic carryout bags directly from a manufacturer for use or distribution in Illinois unless the manufacturer of the bags is registered with the Agency in accordance with Section 15.

(b) Beginning January 1, 2014, no retailer shall purchase plastic carryout bags for use or distribution in Illinois directly from a bag manufacturer unless the manufacturer's plan is posted on the Agency's website in accordance with Section 25.

(c) Beginning January 1, 2014, no retailer shall purchase plastic carryout bags for use or distribution in Illinois directly from a bag manufacturer unless the name of the manufacturer or the manufacturer's unique vendor number assigned by the Agency pursuant to Section 15 is printed on the bag so that the manufacturer's identity is readily identifiable in accordance with Section 20.

(d) Retailers that have implemented a recycling program independent of this Act which allows consumers to bring their plastic bags and film product wrap to the store for recycling shall be allowed to continue to operate their programs independent of this Act. Such retailers can report their recycling status to the Agency for inclusion in the list posted on its website of retailers who are recycling in Illinois. In addition, manufacturers can include these retailers in their recycling plans submitted to the Agency pursuant to an agreement between the retailer and the manufacturer.

Section 31. Requirements applicable to distributors and wholesalers. Beginning January 1, 2014, a distributor or wholesaler shall not purchase plastic carryout bags from a manufacturer for use or distribution to a retailer as defined in this Act in Illinois unless the bag manufacturer is registered with the Agency in accordance with Section 15 and complies with Sections 20 and 25.

Section 35. Responsibilities of the Agency.

(a) Beginning September 1, 2013, for the benefit of assisting consumers who wish to find collection locations for recycling plastic bags, the Agency shall post on its website the location of all collection sites identified to the Agency by manufacturers in their plans and annual reports.

(b) Beginning September 1, 2013, the Agency shall post on its website the list of manufacturers that are registered in accordance with Section 15.

(c) Beginning September 1, 2013, the Agency shall post on its website the list of manufacturers for which the Agency has received a plan in accordance with Section 25.

(d) Beginning May 1, 2014, the Agency shall post on its website (i) the list of manufacturers for which the Agency has received an annual report in accordance with Section 25 and (ii) copies of the annual reports within 30 days after receipt.

Section 40. Recycled content goal.

(a) Beginning January 1, 2014, manufacturers selling plastic carryout bags for use or distribution in Illinois may label each bag to identify the recycled content in the bag.

(b) Beginning January 1, 2015, manufacturers of plastic carryout bags shall strive to manufacture the bag to include at least 30% total recycled content.

Section 50. Penalties.

(a) Any manufacturer, distributor, or wholesaler who violates any provision of this Act or fails to perform any duty under this Act shall be liable for a civil penalty not to exceed $1,000, as determined by the Agency.

(b) For a first offense, a retailer found to be in violation of Section 30 shall be given 30 days to come into compliance. For a second or subsequent offense, the penalty specified in subsection (a) of this Section shall apply.

(c) The penalties provided for in this Section may be recovered in a civil action brought in the county in which the violation occurred and in the name of the People of the State of Illinois by either the State's Attorney of the county in which the violation occurred or the Attorney General. Any funds collected under this Section in an action in which the Attorney General has prevailed shall be deposited in the Environmental Protection Trust Fund, to be used in accordance with the provisions of the Environmental Protection Trust Fund Act.

Section 55. Report to the General Assembly. No later than October 1, 2016, the Director of the Agency shall submit a report to the General Assembly describing the results of the plastic carryout bag and plastic film wrap collection and recycling program on a statewide basis. The report shall also contain recommendations regarding whether the program shall be made permanent and any modifications to improve its function and efficiency.

Section 60. Applicability.

(a) The provisions of this Act do not apply within the jurisdiction of a unit of local government with a population of over 2,000,000.

(b) In the event of a conflict between this Act and any other law, this Act shall control.

Section 65. Home rule.

(a) Except in a home rule unit with a population of over 2,000,000 or in a home rule municipality to which subsection (c) of this Section applies, the regulation of the collection, recycling, sale, and use of plastic carryout bags and film, including any effort to regulate through the imposition of a ban on those items, is an exclusive power and function of the State. A home rule unit, other than a home rule unit with a population of over 2,000,000 and other than a home rule unit to which subsection (c) of this Section applies, may not regulate the collection, recycling, sale, or use of plastic carryout bags and film. This subsection (a) is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(b) A home rule unit, other than a home rule unit with a population of over 2,000,000, may not impose a fee or tax on the collection, recycling, sale, or use of plastic carryout bags and film. This subsection (b) is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(c) A home rule municipality that had a plastic bag and film take-back ordinance in effect on January 1, 2012 may continue the program created by that ordinance, as in effect on that date. However, that home rule unit municipality shall not regulate the collection, recycling, sale, or use of plastic carryout bags or film in a manner that is more restrictive than is provided in that ordinance, as of January 1, 2012, or this Act. This subsection (c) is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by that home rule unit of powers and functions exercised by the State.

Section 70. The Regulatory Sunset Act is amended by changing Section 4.27 as follows:

(5 ILCS 80/4.27)

Sec. 4.27. Acts repealed on January 1, 2017 and October 1, 2017.

(a) The following Acts are repealed on January 1, 2017:

The Illinois Optometric Practice Act of 1987.

The Clinical Psychologist Licensing Act.

The Boiler and Pressure Vessel Repairer Regulation Act.

Articles II, III, IV, V, V 1/2, VI, VIIA, VIIB, VIIC, XVII, XXXI, XXXI 1/4, and XXXI 3/4 of the Illinois Insurance Code.

(b) The following Act is repealed on October 1, 2017:

The Plastic Bag and Film Recycling Act.

(Source: P.A. 94-787, eff. 5-19-06; 94-870, eff. 6-16-06; 94-956, eff. 6-27-06; 94-1076, eff. 12-29-06; 95-331, eff. 8-21-07; 95-876, eff. 8-21-08.)

Section 99. Effective date. This Act takes effect upon becoming law.".