SB0085 103RD GENERAL ASSEMBLY

LRB103 05311 CPF 50329 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0085

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

SYNOPSIS AS INTRODUCED:

New Act

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

A BILL FOR

AN ACT concerning safety.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the State Beverage Container Recycling Refunds Act.

Section 5. Definitions. In this Act:

"Agency" means the Illinois Environmental Protection Agency.

"Beverage" means any drinkable liquid intended for human oral consumption. "Beverage" does not include:

(1) a drug regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.);

(2) infant formula; or

(3) a meal replacement liquid.

"Beverage container" means a prepackaged container, such as a carton, pouch, or aseptic packaging which:

(1) is made of any multimaterial or material, including, but not limited to, glass, plastic, or metal;

(2) is designed to be used for beverage storage one or more times before being recycled; and

(3) has a volume of not more than one gallon.

"Beverage container processing mechanism" means any manual or technological means by which empty beverage containers are properly identified and processed.

"Beverage producer" means a person who bottles, cans, or otherwise fills beverage containers to sell to distributors, importers, or retailers.

"Consumer" means a person who purchases a beverage container in the State for use or consumption.

"Distributor" means a person, including, but not limited to, a beverage producer, who engages in the sale of beverage containers to a retailer in the State.

"Drop-off facility" means a specific area where individuals may bring household recyclable materials to be sorted into material-specific receptacles.

"Importer" means a retailer or beverage producer who directly imports beverage containers into the State.

"Line breakage" means a beverage container that becomes defective or damaged during manufacturing, is not meant for sale, and is not eligible for redemption.

"Material recovery facility" means a facility that receives, separates, and sells or otherwise distributes postconsumer materials for recycling.

"Member" means a distributor or importer who has joined the Organization and paid all applicable fees.

"Nonprofit organization" means an organization established and operated as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code of 1986.

"Organization" means the Distributor and Importer Responsibility Organization established under Section 50.

"Retailer" means a person or business in the State who engages in the sale of beverage containers to a consumer.

"Store" means an individual location where a retailer sells beverage containers.

Section 10. Beverage container recycling redemption refund program.

(a) Except as otherwise provided in this Section, each beverage container sold or offered for sale in the State shall have the following redemption refund value:

(1) ten cents for a beverage container of 24 fluid ounces or less; and

(2) fifteen cents for a beverage container of more than 24 fluid ounces.

(b) The Agency may change each redemption refund value under subsection (a), by rule, so long as the changed refund value is not based on the type of postconsumer material being recycled, not more often than:

(1) once during any 10-year period and in consultation with the Organization; and

(2) once during any 5-year period and after receiving a request from the Organization for a change to one or both redemption refund amounts, if the Agency's change conforms with the Organization's request.

(c) Prior to any change in the redemption refund value under subsection (b), the Agency must undergo a notice and comment review period with at least 60 days' notice to the public.

(d) If the redemption rate publicly reported by the Organization under Section 60 does not reach 85% for 3 consecutive calendar years after being required to do so under paragraph (3) of subsection (a) of Section 55, then each beverage container sold or offered for sale in the State shall have the following redemption refund value:

(1) fifteen cents for a beverage container of 24 fluid ounces or less; and

(2) twenty cents for a beverage container of more than 24 fluid ounces.

(e) Any moneys designated for redemption refunds but that are not claimed by consumers shall be used by the Organization to support its administrative costs and to perform the activities required under this Act.

(f) A person may receive a redemption refund under this Act only for a beverage container submitted in a standard bag that is sold by the Organization and meets any requirements determined by the Organization.

Section 15. Material flows. When a consumer redeems a beverage container in accordance with this Act, the Organization becomes the owner of that beverage container and may:

(1) sell it to a buyer of its choosing; or

(2) on its own or via a third party, process the beverage container for refill if it is reusable.

Section 20. Means of redemption.

(a) A retailer who operates a store must:

(1) if the store has 30 or more parking spots available for its customers' use, permit the Organization to:

(A) collect bags of redeemable beverage containers in a space of the retailer's choosing within the available parking spots; and

(B) install, maintain, and service at least one other beverage container processing mechanism inside or immediately outside of the store on property that the retailer owns or leases for operation of the store; or

(2) if the store has fewer than 30 parking spots available for its customers' use, permit the Organization to install, maintain, and service at least 2 beverage container processing mechanisms inside or immediately outside of the store on property that the retailer owns or leases for operation of the store; or

(3) if the retailer does not, within 90 days after receiving a request in a reasonable manner from the Organization, notify the Organization that the retailer will permit the Organization to perform an activity under paragraph (1) or (2) or accept beverage containers at the store, pay a civil penalty representing the applicable redemption refund value described in Section 10 in the following amounts:

(A) if the store has an area equal to or greater than 5,000 square feet, the redemption refund value of up to 250 beverage containers per day that the Organization is unable to perform that activity because of the retailer's failure to notify the Organization;

(B) if the store has an area that is more than 1,000 square feet and less than 5,000 square feet, the redemption refund value of up to 50 beverage containers per day that the Organization is unable to perform that activity because of the retailer's failure to notify the Organization; and

(C) if the store has an area that is 1,000 square feet or less and sells more than one million beverage containers per year, the redemption refund value of up to 25 beverage containers per day that the Organization is unable to perform that activity because of the retailer's failure to notify the Organization.

(b) A retailer need not meet the requirements under subsection (a) until the Organization requests permission to install, maintain, and service a beverage container processing mechanism inside or immediately outside of the store on property that the retailer owns or leases for operation of the store.

(c) Notwithstanding subsections (a) and (b), a retailer shall, upon request by the Organization regarding a particular store of the retailer:

(1) offer for sale at that particular store the standard bags described under subsection (f) of Section 10;

(2) permit the Organization to install, service, and operate at least one beverage container processing mechanism in a space inside or immediately outside of that store on property that the retailer owns or leases for operation of the store; and

(3) permit the Organization to install, service, and operate a self-service kiosk that prints redemption vouchers inside or immediately outside of that particular store.

(d) Except as provided under subsection (f), a retailer is exempt from the requirements of this Act for a store that the retailer operates, is 1,000 square feet or fewer, and at which less than one million beverage containers are sold per year.

(e) A retailer is exempt from the requirements of this Section for a store that the retailer operates and that:

(1) primarily prepares food for sale; or

(2) sells beverage containers to consumers primarily through stand-alone vending machines or by similar means.

(f) Notwithstanding subsections (a) through (e), for zip codes in the State with a population density greater than 30,000 residents per square mile, the Organization must install, service, and operate enough beverage container processing mechanisms to ensure that there is one beverage container processing mechanism per 500 people.

(g) Any facility that the Organization sets up in the State to efficiently aggregate, sort, and process the material collected at various redemption locations under this Act:

(1) shall accept, pursuant to a reasonable process the Organization may establish, beverage containers eligible for redemption that are submitted in the Organization's standard redemption bag, as designated by the Organization, by a nonprofit organization; and

(2) may provide a nonprofit organization with a premium to be determined by the Organization.

(h) The public shall have access to redeem beverage containers in accordance with this Section for not less than 10 hours each day, except on federal, State, or local holidays and except at a facility set up by the Organization to aggregate, sort, and process redeemed beverage containers.

(i) The Organization must provide information to the public detailing how consumers can alert the Organization to problems at beverage container processing mechanisms operated by the Organization. The information shall be provided via:

(1) the Organization's website;

(2) clearly visible signage at least 5 feet by 5 feet at each redemption location required under this Section; and

(3) clearly visible signage at least 2 feet by 2 feet placed on or within 5 feet of each beverage container processing mechanism.

(j) The Organization may establish reasonable terms and conditions for the use of a beverage container processing mechanism.

Section 25. Labeling requirements.

(a) A beverage producer, distributor, or importer shall include, anywhere that is clearly visible on the top or side of each beverage container sold by the beverage producer, distributor, or importer in the State, the abbreviation "RV".

(b) The Organization may require that any beverage producer, distributor, or importer include, on any space that is on the top or side of each beverage container sold in the State, the clearly visible abbreviation of the State and applicable redemption refund value under Section 10.

(c) A beverage producer, distributor, or importer may include a barcode or unique code verification on a beverage container to automatically identify it.

Section 30. Timing.

(a) A beverage container that is at least 90% aluminum, glass, high density polyethylene plastic, or polyethylene terephthalate and that is sold in the State must be redeemable for the applicable redemption refund value under Section 10 by no later than 2 years after the effective date of this Act.

(b) A beverage container not described under subsection (a) and that is sold in the State must be redeemable for the applicable redemption refund value under Section 10 by no later than 3 years after the effective date of this Act.

(c) The Organization may permit up to an additional 365 days to meet the deadlines under subsections (a) and (b).

Section 35. Prohibitions.

(a) No person shall distribute, import, or sell beverage containers in or into the State except in compliance with this Act.

(b) No person shall redeem a beverage container under this Act that was not sold in the State to a consumer in the State.

Section 40. Agency duties. On or before October 1 of each year after the effective date of this Act, the Agency shall identify and communicate to the Organization the Agency's total estimated annual cost to implement, administer, and enforce this Act, including the cost of adopting rules under this Act, in the next calendar year, after:

(1) subtracting the moneys that the Agency collected from penalties assessed under this Act, which shall be put toward fulfilling the Agency's responsibilities under this Act in the next calendar year; and

(2) adding any expenses incurred in fulfilling the Agency's responsibilities under this Act that are not covered by the annual cost from the previous year.

Section 45. Drop-off facility and material recovery facility duties.

(a) Each drop-off facility or material recovery facility operating in the State, or outside of the State if the majority of the material it processes comes from the State, may submit the following information to the Organization:

(1) the amount in tons of residential recyclable material that the facility received for processing in the previous calendar year; and

(2) an estimate of the amount in tons of residential recyclable material that the facility received from the State.

(b) The optional information detailed in subsection (a) shall be submitted on or before April 1 and shall only pertain to the previous full calendar year.

Section 50. Distributor and Importer Responsibility Organization.

(a) All distributors and importers shall join as members of a Distributor and Importer Responsibility Organization. A distributor or importer operating in violation of this requirement is subject to penalties described in Section 75. The Organization must be established and operated as a nonprofit organization or a cooperative corporation.

(b) Only one Organization may operate in the State. The Organization may decide to operate jointly with similar organizations. The Organization shall elect a governing Board of Directors of the Organization comprised of Organization members. The Organization shall be led by an Executive Director elected by the Board of Directors of the Organization.

(c) The Organization shall charge a membership fee that funds the Organization's costs of operation minus unclaimed redemption refunds or any other revenue sources that the Organization may develop. The Organization shall charge membership fees that vary by material type and that reflect:

(1) the cost of collecting, sorting, and processing each beverage container type; and

(2) the number of units of each beverage container type that each member distributes or sells in the State.

(d) The Organization shall refund members the moneys from revenue generated from the sale of each beverage container type's scrap based on the percentage of each beverage container type that each member distributes or sells in the State. However, if such refunds are not feasible, the Organization shall provide a credit to members against the fees charged under this Act in an amount equal to that which each member would have received as a refund.

(e) The Organization shall publish publicly on its website:

(1) within 18 months after the effective date of this Act, an initial plan for how the Organization will meet its requirements under this Act over the next 5 years, including the performance targets specified in Section 55; and

(2) no later than every 5 years after publication of the initial plan under paragraph (1), an updated plan on how the Organization will continue to meet its requirements under this Act, including the performance targets specified in Section 55.

(f) The Organization shall pay:

(1) for any beverage container processing mechanism or self-service kiosk that the Organization chooses to install, maintain, and operate:

(A) with retailer permission granted pursuant to Section 20; or

(B) at any location to meet or exceed:

(i) the performance targets under Section 55; or

(ii) the beverage container processing mechanism requirement under subsection (f) of Section 20; and

(2) for any facilities in the State necessary to efficiently aggregate, sort, and process the beverage containers collected at redemption locations under this Act;

(3) to upkeep a list and map on its website of all redemption locations and the redemption options available at each redemption location;

(4) by December 31 of each year, an annual installment to the Agency according to the formula under Section 40, but not to exceed $500,000 per year; the installment shall fund the Agency's anticipated costs in the following year to implement, administer, and enforce this Act, including adopting rules under this Act;

(5) a credit to consumers for the cost of the standard bags described under subsection (f) of Section 10; and

(6) beginning during the first full year and ending the fifth full year after one or more beverage container types is sold with a redemption refund value under this Act, direct annual payments by July 1 of each calendar year to drop-off facility operators and material recovery facility operators who choose to submit information under Section 45; each payment shall:

(A) equal 10% of the scrap value from the beverage container material the Organization sold in the preceding calendar year; and

(B) be based on the data submitted by drop-off facility operators or material recovery facility operators under Section 45.

(g) If the standard bag the Organization sells to consumers under subsection (f) of Section 10 is made of plastic film, the Organization shall:

(1) ensure that the standard bag sold is comprised of a minimum of 50% recycled content; and

(2) demonstrate to the Agency that the plastic film waste from the standard bags will be recycled in the best commercially available manner.

(h) The Organization is not required to pay a redemption refund under this Act for:

(1) any beverage container that visibly contains or is visibly contaminated by a substance other than water, residue of the beverage contained within the beverage container as sold by a retailer to a consumer, or dust;

(2) any beverage container that is crushed, broken, or damaged to the extent that the brand appearing on the beverage container cannot be identified;

(3) any beverage container that the Organization has reasonable grounds to believe was procured in another state; or

(4) any beverage container for which the Organization has reasonable grounds to believe a redemption refund has already been issued under this Act or under any other state's law, rule, or regulation.

(i) The Organization may:

(1) use, or award grants using, moneys received or generated under this Act for:

(A) litter clean-up; and

(B) education and outreach on recycling beverage containers; and

(2) use moneys received or generated under this Act to directly, or in partnership with a nongovernmental organization, provide services to or enhance the redemption experience of minority or low-income consumers who redeem a beverage container;

(3) to the extent allowed by law, distribute to its members moneys received or generated under this Act during a fiscal year if:

(A) the Organization's revenues under this Act exceeded the costs of carrying out the Organization's requirements under this Act by more than 10%; and

(B) after distributing the moneys to members, the Organization's nondistributed revenues comprise at least 110% of the costs of carrying out the Organization's requirements under this Act; and

(4) use moneys generated under this Act to pay members or support the management and activities of an advisory committee established under Section 65.

Section 55. Performance targets.

(a) The Organization shall meet the following performance targets:

(1) Beginning during the second full calendar year after all beverage containers are sold in the State with the applicable redemption refund value under Section 10, at least a 70% annual redemption rate for all beverage containers.

(2) Beginning with the fourth full calendar year after all beverage containers are sold in the State with the applicable redemption refund value under Section 10, at least a 75% annual redemption rate for all beverage containers.

(3) Beginning during the sixth full calendar year after all beverage containers are sold in the State with the applicable redemption refund value under Section 10, at least an 85% annual redemption rate for all beverage containers.

(4) Beginning during the eighth full calendar year after all beverage containers are sold in the State with the applicable redemption refund value under Section 10, at least an 90% annual redemption rate for all beverage containers, including all beverage containers recycled under a curbside recycling program in the State.

(b) If the Organization does not meet a performance target required under subsection (a), it must submit to the Agency a product stewardship plan no more than 365 days after the data required under subsection (e) of Section 50 has most recently been published. The product stewardship plan shall detail the reason that the performance target was not met and any action the Organization will take to meet the performance target.

(c) The product stewardship plan described in subsection (b) must be modified each year in which a performance target required under subsection (a) is not met by the Organization. If the Organization does not meet a performance target required under subsection (a) during a period of 3 years after a product stewardship plan was submitted to the Agency under subsection (b), a new product stewardship plan must be submitted by the Organization.

(d) If the Organization does not meet a performance target under subsection (a) during a period of 3 years after a product stewardship plan was submitted to the Agency under subsection (b), the Agency may:

(1) assess a penalty against the Organization once per calendar year of up to 10 cents for each beverage container comprising the difference between the number of beverage containers that were redeemed and the total number of beverage containers that, if redeemed, would have met the performance target; and

(2) require the Organization to submit a revised product stewardship plan.

(e) If the Organization does not meet a performance target required under subsection (a) during a period of 5 years after a product stewardship plan was submitted to the Agency under subsection (b), then:

(1) the Organization shall detail on the Organization's website why a new Executive Director of the Organization is not necessary if, at the end of the 5-year period, the same person has acted as Executive Director of the Organization for more than 365 days; and

(2) the Agency may assess a penalty against the Organization once per calendar year of up to 15 cents for each beverage container comprising the difference between the number of beverage containers that were redeemed and the total number of beverage containers that, if redeemed, would have met the performance target.

(f) If a performance target required under subsection (a) has not been met during each of the 7 consecutive calendar years immediately after the calendar year of the submission of the product stewardship plan described in subsection (b), then the Agency may take over the Organization's operations and charge its members in accordance with Section 50 until:

(1) the performance target is met, after which the Organization's operations shall be taken over again by the Organization within 180 days after the performance target is met; or

(2) 5 years after the Agency has taken over, after which, if the performance target is not met for at least 2 consecutive years, the members of the Organization shall choose a new Executive Director and the Organization's operations shall be taken over again by the Organization.

If the Agency utilizes paragraph (2), then the requirements of subsections (b), (c), and (d) shall not apply to the Organization until 3 years after the new Executive Director is chosen under paragraph (2).

Section 60. Reporting.

(a) On or before July 1 of each calendar year, beginning July 1 of the first full calendar year after a beverage container has a redemption refund value under this Act, the Organization shall make publicly available on its website:

(1) the number of beverage containers sold in the State by material type, as well as, for each quarter of the year covered by the report and the quarters of each prior year for at least the preceding 5 years, to the extent the data is available under this Act, the proportion of beverage containers sold in the State that are capable of being recycled, refilled, or reused;

(2) for each quarter of the year covered by the report and the quarters of each prior year for at least the preceding 5 years, and to the extent data is available under this Act, the percentage of the total amount of beverage containers sold in the State that each beverage container material type represents;

(3) the percentage of the total amount of fees charged to members that each beverage container material type represents for each quarter of the year covered by the report and the quarters of each prior year for at least the preceding 5 years, to the extent data is available;

(4) the number of beverage containers, by material type, redeemed for each quarter of the year covered by the report and the quarter of each prior year for at least the preceding 5 years, to the extent data is available;

(5) the number of beverage containers redeemed at each beverage container processing mechanism provided by the Organization under this Act;

(6) the buyers to whom the Organization sold beverage container materials and an indication of the beverage container's material type;

(7) the percentage of the total amount of moneys redeemed for each beverage container material type;

(8) each redemption location in the State;

(9) the means of redemption at each redemption location in the State;

(10) the total expenses of the Organization;

(11) the total revenues of the Organization;

(12) the total reserves of the Organization;

(13) the cost to the Organization per beverage container redeemed;

(14) the number of redemption locations that provide services or an enhanced redemption experience for minority or low-income consumers;

(15) aggregated demographic information, including, at a minimum, the race, ethnicity, and gender identity of:

(A) employees working on-site at redemption locations or at facilities the Organization establishes to aggregate, sort, and process the beverage containers collected at redemption locations; and

(B) any Organization employees not described in subparagraph (A); and

(16) the number of consumer complaints per month, by redemption location, during the previous calendar year and each prior year for at least the preceding 5 years, to the extent data is available;

(17) the total number of individual consumers per month who filed complaints, by redemption location, during the previous calendar year and each prior year for at least the preceding 5 years, to the extent data is available;

(18) a list of all members, their brands of beverage containers, and a breakdown of each member's beverage container packaging mix by beverage container type during the previous calendar year and each prior year for at least the preceding 5 years, to the extent data is available;

(19) the buyers of the plastic film waste, if any, generated from the standard bag sold by the Organization to consumers for redemption and how buyers may recycle the plastic film waste;

(20) the number of individuals and entities registered to receive electronic deposits of redemption refunds under this Act; and

(21) the name of each member of the Organization's Board of Directors.

(b) The Organization may rely on reporting by members for information used to comply with the reporting requirements of this Act, but shall note in its annual report which of the metrics described in subsection (a) are based on member reporting.

(c) Once per calendar year, the Agency may require verification of information disclosed during that calendar year by the Organization under this Act. The verification shall:

(1) only occur after being notified by the Organization on or before August 1 of that calendar year that the Agency is requiring independent third-party verification;

(2) be performed by an independent third party;

(3) be limited in scope to information that:

(A) the Organization is required to report under this Act;

(B) the Agency specifies for third-party verification under this subsection; and

(C) appeared, or should have appeared, in the Organization's annual report for that calendar year; and

(4) conducted on or before December 31 of the calendar year in which it is required by the Agency.

The Organization must pay the full cost of the third-party verification.

(d) The Organization must establish safeguards to ensure members do not have access to information regarding:

(1) the price paid by any individual buyer for beverage container material sold by the Organization under this Act; and

(2) the amount of each beverage container material sold by the Organization to each individual buyer.

(e) On or before the last day of February of each calendar year, each member of the Organization must report to the Organization all data necessary to satisfy the disclosure requirements of this Section. The Organization shall ensure that data provided by members under this subsection is confidential.

Section 65. Operations Advisory Committee; Equity and Access Advisory Committee.

(a) The Organization shall establish an Operations Advisory Committee that represents a range of interested and engaged persons and entities, including, at a minimum, one of each of the following:

(1) a beverage container manufacturer or a beverage container manufacturer's trade association;

(2) a beverage producer or a beverage producer's trade association;

(3) a unit of local government or group of units of local government;

(4) the State;

(5) an environmental nonprofit organization;

(6) an entity that buys beverage containers from, or recycles them for, the Organization; and

(7) a retailer or a retailer's trade association.

(b) The Operations Advisory Committee may:

(1) provide written or oral comments directly to the Board of Directors and the Executive Director no more than 4 times a year; and

(2) every even-numbered calendar year, submit to the Organization a written report that the Organization must publish on its website upon request by the Operations Advisory Committee and containing:

(A) the Operations Advisory Committee's feedback on the operation of the Organization; and

(B) the Operations Advisory Committee's feedback on the redemption refund system established under this Act.

(c) The Organization shall establish an Equity and Access Advisory Committee that represents persons who can help ensure the Organization's operations appropriately consider the diverse needs and cultures of people who redeem beverage containers, including, at a minimum, one of each of the following:

(1) an advocate for homeless persons;

(2) a governmental social services office;

(3) a nongovernmental organization that advocates on behalf of one or more cultural groups; and

(4) a specialist in diversity and inclusion.

(d) The Equity and Access Advisory Committee may:

(1) provide written or oral comments directly to the Board of Directors and the Executive Director no more than 4 times a year; and

(2) every even-numbered calendar year, submit to the Organization a written report that the Organization must publish on its website upon request by the Equity and Access Advisory Committee and containing:

(A) the Equity and Access Advisory Committee's feedback on whether the Organization is appropriately considering the diverse needs and cultures of people who redeem beverage containers under this Act; and

(B) the Equity and Access Advisory Committee's suggestions on how the Organization can improve in terms of equity and access.

Section 70. Reimbursement to the Agency. The Organization shall reimburse the Agency for costs incurred by the Agency under this Act, not to exceed $500,000 per year, in accordance with paragraph (4) of subsection (f) of Section 50.

Section 75. Enforcement.

(a) In addition to any other applicable civil penalties or criminal fines, the Agency may impose a civil penalty for each day that a violation of this Act occurs. The penalty shall be $100 for the first violation of any requirement under this Act and not more than $1,000 for each subsequent violation of that requirement.

(b) A person who takes any of the following actions with the intent to knowingly defraud is subject to subsection (c), along with any other federal, State, or local enforcement action arising from the action:

(1) redeeming out-of-state beverage containers, rejected beverage containers, line breakages, or beverage containers that have already been redeemed;

(2) seeking a redemption refund under this Act by returning an already-redeemed beverage container at a redemption location;

(3) bringing out-of-state beverage containers, rejected beverage containers, or line breakages to the State marketplace for redemption; or

(4) selling beverage containers not distributed or imported into the State by a member of the Organization.

(c) A violation of subsection (b) resulting in financial gain by the violator shall subject the violator to the following:

(1) If the amount of moneys gained is equal to or less than $950, the violator is subject to:

(A) imprisonment in a county jail for not more than 6 months;

(B) a criminal fine not exceeding $1,000; or

(C) both the fine and imprisonment described in subparagraphs (A) and (B).

(2) If the amount of moneys gained is more than $950, the violator is subject to:

(A) imprisonment in a county jail for not more than one year;

(B) a criminal fine not exceeding $10,000; or

(C) both the fine and imprisonment described in subparagraphs (A) and (B).

(d) The Agency may bring a civil action to enjoin the distribution, importation, or sale in the State of a beverage container in violation of this Act.

(e) The Agency may assess a penalty of up to $30,000 in a calendar year against the Organization for each redemption location at which the Organization receives more than an average of 100 individuals' complaints per month, according to the public reporting required under Section 60.

(f) After notification from the Agency of noncompliance with this Act and a 60-day cure period, the Agency may administratively impose a civil penalty once per year to any distributor or importer who fails to participate as an Organization member as required under Section 10. The civil penalty shall be the greater of $10,000 or 10 cents per beverage container sold by the distributor or importer in the State while not a member. Any distributor or importer who incurs a penalty under this Section may appeal the penalty to the Agency.

(g) All penalties the Agency recovers under this Act:

(1) up to the first $5,000,000 per calendar year shall only be used to administer this Act;

(2) beyond the first $5,000,000 per calendar year shall only be used to:

(A) conduct educational activities in the State that are focused on the beverage container redemption refund system established under this Act;

(B) perform litter clean-up in the State; or

(C) support the collection of recyclable material in public spaces in the State; and

(3) shall be deposited in a separate, dedicated account and shall not be spent until the following calendar year.

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