SB0085sam001 103RD GENERAL ASSEMBLY

Sen. Laura M. Murphy

Filed: 4/26/2023

10300SB0085sam001 LRB103 05311 LNS 60705 a

AMENDMENT TO SENATE BILL 85

AMENDMENT NO. ______. Amend Senate Bill 85 by replacing everything after the enacting clause with the following:

"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 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 that:

(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 defect" 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.

"Recycle" means the series of activities by which a beverage container is:

(1) collected and processed;

(2) converted into raw material; and

(3) used in the production of a new product, including the original product. "Recycle" does not include:

(1) the use of material to produce a fuel or fuel substitute;

(2) the use of material in an incineration process, such as a waste-to-energy process; or

(3) the use of material within the footprint of a landfill.

"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) 10 cents for a beverage container of 24 fluid ounces or less; and

(2) 15 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 80% for 2 consecutive calendar years after being required to do so under paragraph (2) 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.

Section 15. Material flows.

(a) 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 after first allowing a beverage producer or a company of its beverage container supply chain to purchase the material at a fair market rate; or

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

(b) If a consumer chooses to put a beverage container in its curbside recycling receptacle or a drop-off receptacle, the operator of the material recovery facility that sorts the beverage container or the operator of the drop-off facility that receives the beverage container shall:

(1) offer to sell the material to the Organization, which then may be required to pay a certain percent of the redemption value per beverage container under Section 70;

(2) permit the Organization to pick up the material within a reasonable amount of time at the Organization's expense; and

(3) report to the Organization the weight in tons and the quality of the beverage containers it is transferring to the Organization.

Section 20. Means of redemption.

(a) At each store having a floor space that is greater than or equal to 25,000 square feet, excluding only outdoor space, the Organization shall, at its expense, install, operate, and maintain:

(1) bulk bag drop-off for all redeemable beverage containers; and

(2) one or more beverage container processing mechanisms that allow the consumer to:

(A) redeem all redeemable containers; and

(B) immediately receive the refund value.

(b) At each store having a floor space that is greater than or equal to 25,000 square feet, excluding only outdoor space, the Organization may, at its expense, install, operate, and maintain additional beverage container processing mechanisms beyond what is required in subsection (a).

(c) At each of its stores having a floor space that is greater than or equal to 25,000 square feet, excluding only outdoor space, the retailer shall make at most 1,000 square feet of floor space available for the Organization to meet the requirements of subsection (a) and the options provided in subsection (b), but the retailer shall decide where in each store the Organization will, on space the retailer controls inside or outside the store, install, operate, and maintain beverage container processing mechanisms.

(d) At each store having a floor space that is greater than 10,000 but less than 25,000 square feet, excluding only outdoor space, the Organization shall, at its expense, install, operate, and maintain beverage container processing mechanisms such that the consumer has:

(1) the ability to redeem all redeemable beverage containers; and

(2) the option to receive immediately the refund value.

(e) At each store having a floor space that is greater than 10,000 square feet but less than 25,000 square feet, excluding only outdoor space, the Organization may, at its expense, install, operate, and maintain additional beverage container processing mechanisms beyond what is required in subsection (d).

(f) At each of its stores having a floor space that is greater than 10,000 square feet but less than 25,000 square feet, excluding only outdoor space, the retailer shall make at most 500 square feet of floor space available for the Organization to meet the requirements of subsection (d) and the options provided in subsection (e), but the retailer shall decide where in each store the Organization will, on space it controls inside or outside the store, install, operate, and maintain beverage container processing mechanisms.

(g) At each of its stores having a floor space that is greater than 1,000 square feet but less than or equal to 10,000 square feet, excluding only outdoor space, the retailer shall, upon the Organization's request, allow the Organization to install, operate, and maintain beverage container processing mechanisms on no more than 250 square feet of space that it controls inside or outside the store.

(h) A retailer who operates a store having a floor space that is less than or equal to 1,000 square feet has no duty under this Act to host a beverage container processing mechanism.

(i) Notwithstanding subsections (a) through (g):

(1) the retailer may make available more than the required space for beverage container processing mechanisms; and

(2) the Organization may install, operate, and maintain more beverage container processing mechanisms on the additional space made available under paragraph (1) of this subsection.

(j) The Agency, in consultation with the Organization and retailers, shall develop a formula to determine how to fairly compensate annually the retailer for use of the space at each store of the retailer that the retailer permits the Organization to install, operate, and maintain beverage container processing mechanisms.

(k) Notwithstanding subsections (a) through (i), 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 that consumers must use to redeem containers via the bulk bag drop-off redemption option; and

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

(l) A retailer is exempt from the requirements of this Section at stores the retailer operates that primarily prepares food for sale.

(m) A retailer is exempt from the requirements of subsections (a) through (i) at stores the retailer operates that primarily sell beverage containers to consumers through stand-alone vending machines, stand-alone refrigerator cases, or similar means.

(n) The Agency shall develop convenience standards that the Organization shall follow to ensure that:

(1) one or more beverage container processing mechanisms that allow for convenient redemption of redeemable beverage containers is located within a reasonable distance of each resident of the State; and

(2) there are enough beverage container processing mechanisms at each store or location the Organization operates to enable quick and easy redemption of redeemable beverage containers.

(o) The Organization may enter into an agreement to install, operate, and maintain an additional beverage container processing mechanism at any location that is not considered a store under this Act in order to provide additional convenient, quick, or easy redemption options and to meet the performance targets required in Section 55.

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

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

(2) 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.

(r) 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.

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

(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) By no later than 18 months after the effective date of this Act, beverage containers that are at least 90% aluminum, glass, high-density polyethylene plastic, or polyethylene terephthalate and that are sold in the State must be redeemable for the applicable redemption refund value under Section 10.

(b) By no later than 3 years after the effective date of this Act, beverage containers that do not meet the standard described under subsection (a) and that are sold in the State must be redeemable for the applicable redemption refund value under Section 10.

(c) The Agency may permit up to an additional 365 days to meet either one or both of the deadlines specified in 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 under this Act a beverage container 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 applied 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 may submit the following information to the Organization if the majority of the material it processes comes from the State:

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

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

(b) The optional information detailed in subsection (a) shall be submitted on or before April 1 and shall pertain only 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 composed 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, transporting, 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 provide to members against the fees charged under this Act a credit from revenue generated from the sale of each beverage container type's scrap in an amount based on the percentage of each beverage container type that each member distributes or sells in the State.

(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 under 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;

(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) by December 31 of each year, reimbursement for enforcement costs that may result in a total reimbursement by the Organization to the Agency more than $500,000 per year as long as the funded enforcement activities identified violations of this Act and resulted in penalties under this Act;

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

(7) 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 5% 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 composed 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;

(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, the performance target shall be to have an annual redemption rate for all redeemable beverage containers of at least 70%;

(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, the performance target shall be to have an annual redemption rate for all redeemable beverage containers of at least 75%;

(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, the performance target shall be to have an annual redemption rate for all redeemable beverage containers of at least 85%; and

(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 and in each calendar year thereafter, the performance target shall be:

(A) to have an annual redemption rate for all redeemable beverage containers of at least 90%; or

(B) to have at least 90% of redeemable beverage containers collectively:

(i) redeemed via the redemption system implemented under this Act at an 85% redemption rate or higher, as required under paragraph (3);

(ii) collected under a curbside recycling program in the State and meet or exceed the quality standards described in Section 70 when sold by the material recovery facility; or

(iii) collected at a drop-off facility and then sold by the drop-off facility with quality standards that meet or exceed those described in Section 70.

(b) The Organization shall meet the following recycling rates targets for beverage containers redeemed through the system it operates:

(1) For beverage containers that are made of at least 90% aluminum, glass, high-density polyethylene plastic, or polyethylene terephthalate, the recycling rate target shall be:

(A) a 70% recycling rate beginning 2 years after the beverage containers are sold in the State with the applicable refund value under Section 10; and

(B) a 90% recycling rate beginning 5 years after the beverage containers are sold in the State with the applicable refund value under Section 10.

(2) For beverage containers not specified in paragraph (1) the recycling target rate shall be:

(A) a 50% recycling rate beginning 4 years after the beverage containers are sold in the State with the applicable refund value under Section 10; and

(B) a 70% recycling rate beginning 7 years after the beverage containers are sold in the State with the applicable refund value under Section 10.

(c) If the Organization does not meet a redemption rate target required under subsection (a) or a recycling rate target required under subsection (b), it must submit to the Agency a product stewardship plan no more than 365 days after the data required under Section 60 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.

(d) If the Organization does not meet a redemption rate target under subsection (a) or a recycling rate target under subsection (b) in any calendar year, the Agency shall assess a civil penalty against the Organization for each such violation

(1) If a redemption rate target was not met, the civil penalty shall be equal to one cent 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 redemption rate target.

(2) If a recycling rate target was not met, the civil penalty shall be equal to one cent for each beverage container comprising the difference between the number of beverage containers that were recycled and the total number of beverage containers that, if recycled, would have met the recycling rate target.

(e) If the Organization does not meet all redemption rate targets under subsection (a) and recycling rate targets under subsection (b) within 3 years after a product stewardship plan was submitted to the Agency under subsection (c):

(1) The Agency shall assess a civil penalty against the Organization once per calendar year:

(A) If redemption rate targets were not met, the civil penalty shall be 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 targets.

(B) If recycling rate targets were not met, the civil penalty shall be up to 10 cents for each beverage container comprising the difference between the number of beverage containers that were recycled and the total number of beverage containers that were recycle and the total number of beverage containers that, if recycled, would have met the performance targets.

(2) The Agency shall require the Organization to submit a revised product stewardship plan within 365 days after the effective date of this Act.

(f) If the Organization does not, within 5 years after a product stewardship plan was submitted to the Agency under subsection (c), meet all redemption rate targets required under subsection (a) and recycling rate targets required 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 prior to the effective date of this Act;

(2) the Agency may require the Organization to remove an Executive Director of the Organization that has served in that position for more than 365 days prior to the effective date of this Act; and

(3) the Agency shall assess against the organization a civil penalty once per calendar year:

(A) If redemption rate targets were not met in the previous calendar year, the civil penalty shall be 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.

(B) If recycling rate targets were not met in the previous calendar year, the civil penalty shall be up to 15 cents for each beverage container comprising the difference between the number of beverage containers that were recycled and the total number of beverage containers that, if recycled, would have met the performance targets.

(g) Notwithstanding subsections (d) through (f), the penalty for each performance target required in subsection (d) is not in addition to the penalties authorized in subsections (e) and (f) as long as the penalty assessed against the Organization in subsections (e) and (f) is greater than that required in subsection (d).

(h) If the Organization does not meet all the redemption rate targets required under subsection (a) and the recycling rate targets under subsection (b) within 7 years after the product stewardship plan was submitted to the Agency under subsection (c), then the Agency may take over management of the Organization from the Executive Director of the Organization and charge the Organization members in accordance with Section 50 until:

(1) all of the performance targets are met, after which the members of the Organization shall take over management of the Organization again and choose a new Executive Director within 365 days after all of the performance targets are met; or

(2) five years after the Agency has taken over, after which, if all of the performance targets are not met in any 2 consecutive years, the members of the Organization shall take over management of the Organization again and choose a new Executive Director within 365 days of the effective date of this Act.

(i) If the Agency exercises the option described in subsection (h), then the requirements of subsections (c), (e), and (f) shall not apply to the Organization until 3 years after the new Executive Director is chosen.

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 percent of beverage containers redeemed that were recycled, by material type;

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

(7) the buyers by material type to whom the Organization sold beverage container materials;

(8) the end-product each beverage container type became or likely became;

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

(10) each redemption location in the State;

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

(12) the total expenses of the Organization;

(13) the total revenues of the Organization;

(14) the total reserves of the Organization;

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

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

(17) 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);

(18) 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;

(19) 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;

(20) 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;

(21) 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;

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

(23) 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) occur only 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) be 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 that rotates between the leading beverage container types;

(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 that contains:

(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;

(4) a nongovernmental organization with a focus on environmental justice; and

(5) 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 that contains:

(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. Additional drop-off facility and material recovery facility duties.

(a) The operator of a material recovery facility and drop-off facility shall use an industry-standard scale to measure the weight of all beverage containers that enter the facility.

(b) The operator of a material recovery facility and drop-off facility shall track the weight by U.S. ton of each beverage container type redeemable under this Act that enters the facility and the quality of each bale or ton of redeemable material.

(c) The Organization shall buy bales of beverage containers redeemable under this Act from the operator of a material recovery facility and drop-off facility for beverage containers that were made with individual containers received from household collection of recyclables and that meet the quality threshold described in subsection (d).

(d) The Organization shall pay the operator a material recovery facility and drop-off facility half of the redemption value under this Act for each beverage container if:

(1) the plastic PET bottle bale produced meets the Association of Plastic Recyclers Grade A model specification for plastic PET bottles;

(2) the aluminum beverage can bale produced meets one of the UBC scrap specifications in the latest scrap specifications from the Institute of Scrap Recycling Industries and has no more than 4% moisture and no more than 8% nonused beverage can material after the moisture is deducted;

(3) the glass bottle material produced has a glass purity of at least 95% per the glass purity measurement instructions from the Glass Recycling Coalition;

(4) the plastic HDPE natural bottle bale produced meets the HDPE natural bottle model bale specification from the Association of Plastic Recyclers;

(5) the plastic HDPE colored bottle bale produced meets the HDPE colored bottle model bale specification from the Association of Plastic Recyclers;

(6) the aseptic packaging and gable-top carton bale meets the latest aseptic packaging and gable-top carton specification from the Institute of Scrap Recycling Industries; or

(7) the quality of the other redeemable beverage container types not specified in this subsection meets thresholds set by the Agency, in consultation with the Organization and operators of a material recovery facility and drop-off facility.

(e) All thresholds in this Section tied to externally referenced documents such as the model bale specifications from the Association of Plastic Recyclers and the Institute of Scrap Recycling Industries shall reflect the most current version of the externally referenced documents including any updates made after the effective date of this Act.

(f) The Agency, in consultation with the Organization and operators of a material recovery facility and drop-off facility, may set thresholds for material quality that require the Organization to pay some amount other than 50% of the redemption amount under this Act.

(g) The Organization shall buy bales of beverage containers redeemable under this Act from an operator of a material recovery facility and drop-off facility for beverage containers that were made with individual beverage containers received from a household collection of recyclables and that meet quality requirements established under subsection (f).

(h) The Organization may buy bales of beverage containers redeemable under this Act from an operator of a material recovery facility and drop-off facility for beverage containers that were made with individual beverage containers received from a household collection of recyclables and do not meet quality requirements established under subsection (d) or (f).

(i) The Organization shall become the owner of the beverage containers once the appropriate portion of the redemption value per beverage container is paid to the operator of the material recovery facility and drop-off facility and as such, is free to sell the material to the buyer of its choosing for revenue after first allowing a beverage producer or a company in its beverage container supply chain to purchase the material at a fair market rate.

(j) When the Organization pays the operators of the material recovery facility and drop-off facility the appropriate portion of the redemption value per beverage container, it may do so with an assumption that the beverage containers sold to it have a breakdown of containers that are 24 ounces or less and more than 24 ounces equivalent to what percent of that container type that consumers redeemed in the last calendar year were 24 ounces or less and more than 24 ounces.

(k) An operator of a material recovery facility and drop-off facility shall permit the Organization to tour its facility without notice up to 4 times each calendar year.

(l) An operator of a material recovery facility and drop-off facility shall pay for up to one independent audit per calendar year on the quality of its material upon request by the Organization and shall allow the Organization to conduct 2 additional audits per calendar year on the quality of its material upon request by the Organization and at the Organization's expense.

Section 75. Reuse study.

(a) The Agency shall conduct a study on the infrastructure that is needed in the State to support a robust system for refillable beverage containers and on any changes that would be required in order to ensure effective integration of refillable beverage containers in the deposit return system.

(b) The study required in subsection (a) shall be published on the Agency's website and filed with the General Assembly no later than 2 years after the effective date of this Act.

(c) The cost of the study shall be included in a reimbursement request to the Organization under Section 85.

Section 80. Beverage container grant program.

(a) The Organization shall transfer 5% of the revenue from unclaimed redemption refunds in the previous calendar year to the Agency by July 1 of each calendar year starting the first full calendar year after one or more beverage container types is sold with a redemption refund value under this Act to fund a beverage container grant program.

(b) The Agency with the money available in the beverage container grant program shall annually fund with a competitive grant process education, infrastructure, or litter clean-up activities that increase the reuse or recycling of beverage containers or reduce the litter from beverage containers in the State.

(c) The Agency shall not give grants such that any one beverage container type receives more than 25% of the benefits from the activities funded.

(d) The following entities are eligible for a grant under the beverage container grant program:

(1) a school or an institution of higher education;

(2) a nonprofit organization;

(3) a county or municipal corporation;

(4) a federally recognized tribe;

(5) a for-profit organization; and

(6) a public-private partnership.

(e) The cost to administer the beverage container grant program shall be included in a reimbursement request to the Organization under Section 85.

Section 85. Reimbursement to the Agency.

(a) 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.

(b) The Organization shall reimburse the Agency for enforcement costs incurred by the Agency under this Act, in accordance with paragraph (5) of subsection (f) of Section 50, that may take the total amount reimbursed by the Organization to the Agency beyond $500,000 per year as long as the funded enforcement activities identified violations of this Act and resulted in penalties under this Act.

Section 90. 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, as may be defined by subsequent rulemaking, occurs that is:

(1) $100 for the first violation of any requirement under this Act; and

(2) 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 defects, 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 defects 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 State 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 put toward the beverage container grant program created in Section 80.

Section 95. Administration. The Agency shall administer and enforce the provisions of this Act not otherwise allocated to another person or entity under this Act.".