SB0085sam004 103RD GENERAL ASSEMBLY

Sen. Laura M. Murphy

Filed: 3/8/2024

10300SB0085sam004 LRB103 05311 BDA 70842 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.

"Area of environmental justice concern" means a census block group that is designated by the Agency, by administrative rule, as a census block group in which the population of low-income or minority residents is twice the statewide average.

"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) 100% fluid cow milk;

(3) infant formula; or

(4) a meal replacement liquid.

"Beverage container" means any prepackaged container for beverages.

"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.

"Covered beverage container" means a beverage container:

(1) made of 90% or more glass, polyethylene terephthalate (PET), high-density polyethylene (HDPE) plastic, or aluminum;

(2) designed to be used once before being recycled or designed to be reused for multiple cycles before being recycled; and

(3) with a volume of no more than one gallon.

"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 and is (i) located in the State or (ii) located outside the State and receives more than half of the material it collects from State residents.

"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 and is (i) located in the State or (ii) located outside the State and receives more than half of the material it collects from State residents.

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

"Non-covered beverage container" means a beverage container that is not included in the definition of covered beverage container.

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

"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 a chemical conversion process, such as solvolysis or depolymerization;

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

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

"Recycling rate" means the percentage of covered beverage containers recycled out of all covered beverage containers sold in the State.

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

"Self-service kiosk" means a machine which a consumer can use to:

(1) create an account in order to participate in a bag-drop program;

(2) conduct account activity, including viewing an account balance;

(3) print vouchers redeemable for cash or store credit for redeemed beverage containers; or

(4) print labels to identify bags in the bag-drop program with the consumer's account.

A self-service kiosk does not redeem beverage containers.

"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 covered beverage container sold or offered for sale in the State shall have the following redemption refund value:

(1) 5 cents for a beverage container of 24 fluid ounces or less; and

(2) 10 cents for a beverage container of more than 24 fluid ounces.

(b) Two years after covered beverage containers begin to be sold or offered for sale in the State with the refund value in paragraph (a), every covered beverage container sold or offered for sale in the State shall, except as otherwise provided by rule adopted in accordance with subsection (b), have the following 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.

(c) The Agency may adopt rules providing a different redemption refund value than the redemption refund value provided under subsection (b), so long as the modified redemption refund value is not based on the type of postconsumer material being recycled, but no more often than:

(1) once during any 10-year period 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.

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

(e) Any moneys designated for redemption refunds but that are not claimed by consumers shall be used by the Organization only 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 or has an agreement with one or more third parties that manage reusable beverage containers in the recycling refund system.

(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 may 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 45.

Section 20. Means of redemption.

(a) At each store having a floor space that is greater than or equal to 10,000 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 beverage containers; and

(B) immediately receive the refund value.

(b) At each store having a floor space that is greater than or equal to 10,000 square feet, excluding only outdoor space, the Organization may, in consultation with the retailer and at its expense, install, operate, and maintain additional beverage container processing mechanisms beyond what is required in subsection (a) to meet the redemption option requirements per county in this Section and the performance targets in Section 55.

(c) At each of its stores having a floor space that is greater than or equal to 10,000 square feet, excluding only outdoor space, 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 of its stores having a floor space that is greater than or equal to 1,000 square feet but less than 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 necessary to meet the redemption option requirements per county in this Section and the performance targets in Section 55 on space of the retailer's choosing that it controls inside or outside the store.

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

(f) Notwithstanding subsections (a) through (e):

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

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

(3) a retailer at any of its stores with more than 1,000 square feet, upon request by the Organization regarding a particular store of the retailer, must offer for sale at that particular store of the retailer the standard bags that the Organization deems necessary to operate a bag-drop program.

(g) A retailer is exempt from the requirements of subsections (a) through (f) at stores the retailer operates that:

(1) sell beverage containers as an inconsequential amount of the store's annual revenue, meaning less than 5% of the store's annual revenue, through stand-alone vending machines, stand-alone refrigerator cases, or similar means; or

(2) primarily prepare food for sale.

(h) 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.

(i) The Organization shall, at the request of a retailer that owns a store at which it is operating beverage container processing mechanisms, provide the consumer the option to redeem its refund value for a credit at the retailer in addition to any financial incentive beyond the refund value that the retailer chooses to provide the consumer.

(j) Through the redemption mechanisms established at retailers or at other locations, the Organization shall install, service, and maintain at least the number of beverage container processing mechanisms necessary to meet the minimum number determined under subsection (k) for each of the following classes of counties:

(1) counties with a population density that is less than 250 individuals per square mile;

(2) counties with a population density that is greater than or equal to 250 individuals per square mile but less than 500 individuals per square mile;

(3) counties with a population density that is greater than or equal to 500 individuals per square mile but less than 750 individuals per square mile;

(4) counties with a population density that is greater than or equal to 750 individuals per square mile but less than 1,000 individuals per square mile;

(5) counties with a population density that is greater than or equal to 1,000 individuals per square mile but less than 5,000 individuals per square mile; and

(6) counties with a population density that is greater than or equal to 5,000 individuals per square mile.

(k) The Organization shall determine the minimum number of each beverage container processing mechanism required in each county based on the classification in subsection (j) and the following criteria:

(1) the number of stores in the county that host beverage container processing mechanisms;

(2) the number of stores in the county that must, upon request by the Organization, host beverage container processing mechanisms;

(3) the proximity between the stores in paragraphs (1) and (2), their proximity to residents, and their proximity to public transit;

(4) the size of the stores in paragraphs (1) and (2);

(5) the percentage of county residents with a car; and

(6) the percentage of county residents below the federal poverty line.

(l) By no later than the date upon which covered beverage containers are sold or offered for sale in the State with the refund value specified in Section 10, the Organization shall operate in each county that contains an area of environmental justice concern directly, in partnership or through contract with another entity, at least one redemption site that:

(1) provides written information about the redemption process in at least 3 languages other than English and a QR code that provides information in additional non-English languages spoken in the county; and

(2) is staffed by persons trained to communicate appropriately and to deliver services effectively to persons in culturally diverse and underserved communities.

(m) By no later than the date upon which covered beverage containers are sold or offered for sale in the State with the refund value specified in Section 10, at least 5 of the redemption mechanisms the Organization operates directly, in partnership or through contracting with another entity, shall be mobile redemption sites that operate at least 40 hours per week, excluding local, State, or federal holidays, and shall be designed to:

(1) provide services to persons who redeem high volumes of beverage containers; and

(2) collect beverage containers for redemption from persons who are physically impaired or otherwise unable to transport beverage containers to a redemption center.

(n) The Organization may enter into an agreement to install, operate, and maintain additional beverage container processing mechanisms at any location in order to meet:

(1) the redemption option requirements under this Section for each county; and

(2) the performance targets required in Section 55.

(o) 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 and paid for by the Organization.

(p) The public shall have access to redeem beverage containers in accordance with this Section for not less than 10 hours each day:

(1) except on federal, State, or local holidays;

(2) except at a facility set up by the Organization to aggregate, sort, and process redeemed beverage containers; or

(3) unless restricted by the open hours of the store in which the beverage container processing mechanism is being operated.

(q) 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; and

(2) clearly visible signage at each beverage container processing mechanism that the Organization operates.

(r) 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 24 months after the effective date of this Act, covered beverage containers that are sold in the State must be redeemable for the applicable redemption refund value under Section 10.

(b) The Agency may permit:

(1) up to an additional 365 days to meet the deadline specified in subsection (a); or

(2) any delays needed to align the implementation timing of the recycling refund system in this Act with any broader extended producer responsibility system that has become law in the State for packaging or printed paper more generally.

(c) The Organization may choose at any time to make one or more non-covered beverage containers eligible for the same refund value as covered beverage containers and, once eligible, the Organization must still comply with all the requirements of this Act, including performance targets.

(d) If the market share of a non-covered beverage container in any 2 full calendar years in a row grows to 5% more than what it was over the average of 2 full calendar years before the effective date of this Act, then the Organization must:

(1) make that non-covered beverage container eligible for the same refund value as covered beverage containers and still comply with all the requirements of this Act, including performance targets; or

(2) charge its members for each non-covered beverage container sold in the State the amount of the refund value for an equivalent in size covered beverage container and use the revenue from this charge only to support the grants permitted under this Act to improve education, outreach, or infrastructure to enhance the recycling or reuse of beverage containers.

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 facilities and material recovery facilities.

(a) Each drop-off facility or material recovery facility may submit the following information to the Organization:

(1) the number of tons of each beverage container type eligible for a refund that it sold or transferred out of its facility in the last full calendar year before a beverage container was sold with an applicable refund value; and

(2) an estimate of the tons under paragraph (1) that were received from sources in 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.

(c) By July 1 of each calendar year, starting the first full year and ending the fourth full year after covered beverage containers are sold with the applicable refund value, the Organization must make an annual payment directly to each material recovery facility and drop-off facility operator that submits data according to subsection (a) that:

(1) equals 5% of the scrap value of the material the Organization sold in the preceding calendar year; and

(2) is based on the data submitted by the material recovery facility and drop-off facility operators under subsection (a).

(d) The operators of material recovery facilities or drop-off facilities shall use an industry-standard scale to measure the weight of all beverage containers that enter the facility.

(e) When the operator of a material recovery facility or drop-off facility chooses to offer for purchase to the Organization beverage containers purchased in the State and redeemable under this Act, the Organization shall buy those beverage containers at the amounts specified in this Section as long as the quality standards described in this Section are met.

(f) For the first 10 years after eligible beverage containers are sold with a refund value, the Organization shall pay material recovery facilities and drop-off facilities:

(1) 100% of the refund value for each covered beverage container:

(A) made of 90% or more aluminum, polyethylene terephthalate (PET), or high-density polyethylene (HDPE) that the material recovery facility or drop-off facility offers to the Organization:

(i) as a bale or loose; and

(ii) that meets the relevant and most recently published Institute of Scrap Recycling Industries specifications.

(B) made of 90% or more glass that the material recovery facility or drop-off facility offers to the organization:

(i) loose; and

(ii) as furnace-ready cullet;

(2) 50% for beverage containers made of 90% or more glass that the material recovery facility or drop-off facility offers to the organization and that contains 15% or less non-glass residuals or fines.

(g) Following the first 10 years after eligible beverage containers are sold with a refund value, the Organization shall pay material recovery facilities and drop-off facilities for each eligible beverage container it is offered as a bale or loose with the following structure based on each material type:

(1) for beverage containers made of 90% or more aluminum, operators of material recovery facilities and drop-off facilities receive 100% of the refund value if they meet the relevant and most recently published Institute of Scrap Recycling Industries specifications;

(2) for beverage containers made of 90% or more glass, operators of material recovery facilities and drop-off facilities receive:

(A) 100% of the refund value if the material recovery facility or drop-off facility provides furnace-ready cullet; and

(B) 50% of the refund value if the material recovery facility or drop-off facility provides glass that contains 15% or less non-glass residuals or fines;

(3) For beverage containers made of 90% or more polyethylene terephthalate (PET), operators of material recovery facilities and drop-off facilities receive:

(A) 100% of the refund value if they are third-party certified as meeting the Association of Plastic Recyclers Grade B model specification for PET bottle bales; and

(B) 50% of the refund value if they do not meet the Grade B specification; and

(4) For beverage containers made of 90% or more high-density polyethylene (HDPE), operators of material recovery facilities and drop-off facilities receive 100% of the refund value if they are third-party certified as meeting the applicable, natural or colored, Association of Plastic Recyclers HDPE model bale specification.

(h) The Agency, in consultation with the Organization and material recovery facilities and drop-off facilities and associations that represent material recovery facilities and drop-off facilities, shall develop and publish a methodology for how to determine the average amount of redeemable beverage containers that were purchased in the State per ton of material offered to the Organization.

(i) 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 percentage of that container type that consumers redeemed in the last calendar year and that were 24 ounces or less and more than 24 ounces.

(j) The Organization shall become the owner of the beverage containers for which it pays the amount under paragraphs (f) and (g) and may 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.

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

(l) 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.

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 85. 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 to meet the requirements of this Act minus the unclaimed redemption refunds and the revenue from the sale of the redeemed beverage containers, both of which must stay with the Organization to fund its operations to meet the requirements of this Act. The Organization may develop other revenue sources. 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, among other costs that may vary by beverage container type;

(2) the monetary value of each beverage container type; and

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

(d) The Organization shall submit within 12 months of the effective date of this Act and every 5 years thereafter a plan to the Agency for approval that describes how the Organization will meet its requirements under this Act over the next 5 years.

(e) The Agency must review and approve, deny, or request additional information for a draft plan by the Organization by no later than 120 days after its receipt date. The Agency must post the draft plan on the Agency's website and allow public comment for no less than 45 days before approving, denying, or requesting additional information on the draft plan.

(f) If the Agency denies or requests additional information regarding a draft plan, the Agency must provide the Organization the reasons, in writing, why the plan is not sufficient. The organization must submit a revised draft plan to the Agency within 60 days of receipt of the Agency's action. The Agency shall review and approve or disapprove of the revised draft plan within 60 days of receiving it.

(g) The Organization may revise and submit a draft plan to the Agency not more than twice. If, after the second revised plan is submitted, the Agency determines that the draft plan does not meet the requirements of this Act, the Agency must modify the draft plan as necessary for it to meet the requirements of this Act and approve it.

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

(1) within 18 months after the effective date of this Act, an Agency-approved 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 the minimum number of beverage container processing mechanisms required in each county under Section 20; 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 and the minimum number of beverage container processing mechanisms required in each county under Section 20.

(i) The Organization shall pay:

(1) for any beverage container processing mechanism or self-service kiosk that the Organization installs, maintains, and operates at any location to meet or exceed:

(A) the performance targets under Section 55; or

(B) the redemption option requirements under Section 20 for each county;

(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) the cost of the standard bags described under subsection (f) of Section 20;

(7) the material recovery facility and drop-off facility payments under Section 45;

(8) a survey in each even-numbered year of consumers for whom refunds paid under this Section constitute a significant portion of their income to determine if their needs are being met.

(j) If the standard bag the Organization sells to consumers under subsection (f) of Section 20 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.

(k) 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.

(l) The Organization may:

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

(A) collecting litter that includes beverage containers; and

(B) improving education, outreach, or infrastructure to enhance the recycling or reuse of 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; and

(3) 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. Targets.

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

(1) beginning with the second full calendar year after eligible beverage containers are sold in the State with the applicable redemption refund value under Section 10, the annual redemption rate from consumers to a beverage container processing mechanism for all redeemable beverage containers is 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 annual redemption rate from consumers to a beverage container processing mechanism for all redeemable beverage containers is at least 75%; and

(3) beginning with the sixth full calendar year after all beverage containers are sold in the State with the applicable redemption refund value under Section 10, the annual redemption rate from consumers to a beverage container processing mechanism for all redeemable beverage containers is at least 85%.

(b) The Organization shall meet the following recycling rate targets through material consumers redeem through beverage container processing mechanisms or through material the Organization receives from drop-off facilities or material recovery facilities:

(1) beginning with the second full calendar year after eligible beverage containers are sold in the State with the applicable redemption refund value under Section 10, the annual recycling rate for all redeemable beverage containers is at least 70%;

(2) beginning with the fourth full calendar year after eligible beverage containers are sold in the State with the applicable redemption refund value under Section 10, the annual recycling rate for all redeemable beverage containers is at least 75%; and

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

(c) At any point that a non-covered beverage container is added to the system, the Agency may establish recycling rate targets specific to the added beverage container or beverage containers, and the added beverage container or beverage containers may then not be considered in satisfying the targets in subsection (b).

(d) If the Organization does not meet a performance rate target required under subsections (a) through (c) in any calendar year:

(1) it must submit to the Agency a revised product stewardship plan no more than 365 days after the data required under Section 60 has most recently been published that showed a performance target required under subsections (a) through (c) was not met, and the Agency review of this revised plan must follow the same guidelines as provided for the initial draft plan in Section 50. The product stewardship plan shall detail the reasons that the performance target was not met and any action the Organization will take to meet the performance target; and

(2) the Agency shall assess a civil penalty against the Organization for each such violation that is equal to 5 cents for each beverage container comprising the difference between the number of beverage containers that were redeemed or recycled and the total number of beverage containers that, if redeemed or recycled, would have met the applicable performance rate target.

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

(1) assess a civil penalty against the Organization once per calendar year that is equal 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;

(2) require the Organization to submit a revised product stewardship plan within 365 days after the data required under Section 60 has most recently been published that showed a performance target required under subsections (a) through (c) was not met within 3 years after a product stewardship plan was submitted to the Agency under subsection (d), and the Agency review of this revised plan must follow the same guidelines as provided for the initial draft plan in Section 50;

(3) require the Organization to hire a third party to evaluate whether the minimum number of beverage container processing mechanisms required in each county in accordance with Section 20 is sufficient to meet the performance targets; and

(4) if the third party evaluation under paragraph (3) determines the minimum number of beverage container processing mechanisms is not sufficient, the third party must in its analysis provide a new minimum number of beverage container processing mechanisms per county that will be sufficient to meet the performance targets, and the Organization shall be responsible for meeting the third-party-determined minimum number in each county.

(f) If the Organization does not, within 5 years after a product stewardship plan was submitted to the Agency under subsection (d), meet all recycling and redemption rate targets required under subsections (a) through (c), 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 end of the relevant 5-year period;

(2) the Agency may require certain changes to the product stewardship plan; and

(3) the Agency shall assess against the Organization a civil penalty once per calendar year equal 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.

(g) Notwithstanding subsections (d) through (f):

(1) the penalty for each performance target required in subsection (d) is not in addition to the penalties authorized in subsections (e) and (f);

(2) the Agency may, beyond the amounts required in subsections (e) and (f), for the violations specified in subsections (e) and (f) assess once per calendar year an additional annual penalty of up to $50,000 if the Organization does not in a particular year eliminate at least 25% of the gap in the previous year from achieving any performance rate target it failed to achieve; and

(3) the Agency shall retroactively assess penalties against the Organization if the verification in Section 60 finds that the Organization performed worse than initially stated in its public disclosures, and these retroactive penalties shall not result in the Organization paying in total more than it would have paid in penalties with the verified performance levels.

Section 60. Reporting.

(a) On or before July 1 of each calendar year, beginning July 1 of the first full calendar year after covered beverage containers have a redemption refund value under this Act, the Organization shall submit to the Agency and 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 data is available, 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, 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 percentage of beverage containers redeemed that were recycled, by material type, and that were reused, by material type, for each quarter of the report year and for the quarters of each of at least the last 5 prior years, to the extent data is available;

(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 actual or estimated 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 Organization employee demographic information, including information that can legally be disclosed and that provides insight into the Organization's performance on diversity, equity, and inclusion;

(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;

(23) the results of the survey of consumers for whom refunds paid under this Section constitute a significant portion of their income; and

(24) 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) The Organization shall hire by June 1 of even-numbered years an independent third-party organization to verify within 6 months of its hiring the previous 2 calendar years of data publicly disclosed under subsection (a).

(d) Once per calendar year, the Agency may require verification of information disclosed during the previous 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 the previous calendar year; and

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

(e) With the data verification activities under subsections (c) and (d), the Organization shall:

(1) pay the full cost of the third-party verification; and

(2) provide the independent third party with full access to the underlying data supporting the disclosure in subsection (a)that is being verified.

(f) 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.

(g) 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. Reuse study.

(a) The Agency shall conduct a study on the infrastructure that is needed in the State to support a robust system for reusable beverage containers and on any changes that would be required in order to ensure effective integration of reusable 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 80.

Section 75. 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 with 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, through 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 80.

Section 80. 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 (i) 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 (i) 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 85. 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 per day to any distributor or importer who fails to participate as an Organization member as required under Section 10. The civil penalty per day 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; and

(2) beyond the first $5,000,000 per calendar year, shall only be put toward the beverage container grant program created in Section 75.

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