Program for beverage container recycling refunds established, civil and criminal penalties provided, reports required, and money appropriated.

1.1 A bill for an act​ 1.2 relating to solid waste; establishing program for beverage container recycling​ 1.3 refunds; providing civil and criminal penalties; requiring reports; appropriating​ 1.4 money; proposing coding for new law in Minnesota Statutes, chapter 115A.​ 1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​ 1.6 Section 1. [115A.566] BEVERAGE CONTAINER RECYCLING REFUNDS;​ 1.7 DEFINITIONS.​ 1.8 For purposes of sections 115A.566 to 115A.5665, the following terms have the meanings​ 1.9 given:​ 1.10 (1) "applicable refund value" means the value established under section 115A.5661,​ 1.11 subdivision 1;​ 1.12 (2) "beverage" means a drinkable liquid intended for human oral consumption. Beverage​ 1.13 does not include:​ 1.14 (i) a drug regulated under the federal Food, Drug, and Cosmetic Act, United States Code,​ 1.15 title 21, section 301 et seq.;​ 1.16 (ii) infant formula; or​ 1.17 (iii) a meal replacement liquid;​ 1.18 (3) "beverage container" means a prepackaged container for beverages, including a​ 1.19 carton; a pouch; an aseptic package, such as a juice box; or other container:​ 1.20 (i) made of any material, including glass, plastic, metal, or multimaterial;​ 1​Section 1.​ REVISOR CKM/DG 25-01715​12/26/24 ​ State of Minnesota​ This Document can be made available​ in alternative formats upon request​ HOUSE OF REPRESENTATIVES​ H. F. No. 420​ NINETY-FOURTH SESSION​ Authored by Jordan​02/13/2025​ The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy​ 2.1 (ii) designed to be used once before being recycled or designed to be reused for multiple​ 2.2 cycles before being recycled; and​ 2.3 (iii) with a volume of no more than one gallon;​ 2.4 (4) "beverage container processing mechanism" means any method, manual or​ 2.5 technological, that properly identifies and processes empty beverage containers that are​ 2.6 eligible for redemption;​ 2.7 (5) "beverage producer" means a person bottling, canning, or otherwise filling beverage​ 2.8 containers for sale to distributors, importers, or retailers;​ 2.9 (6) "consumer" means an individual in the state who purchases a beverage in a beverage​ 2.10 container for use or consumption;​ 2.11 (7) "distributor" means a person who sells beverages in beverage containers to a retailer​ 2.12 in the state, including a beverage producer who engages in sales;​ 2.13 (8) "distributor and importer responsibility organization" or "organization" means the​ 2.14 distributor and importer responsibility organization established under section 115A.5663;​ 2.15 (9) "drop-off facility" means a specific area where individuals may bring household​ 2.16 recyclable materials to place into material-specific receptacles;​ 2.17 (10) "importer" means a retailer or beverage producer who directly imports beverage​ 2.18 containers into the state;​ 2.19 (11) "line breakage" means a beverage container that becomes defective or damaged​ 2.20 during manufacturing and that is not meant for sale and not eligible for redemption;​ 2.21 (12) "material recovery facility" means a facility that receives, separates, and sells or​ 2.22 otherwise distributes postconsumer materials for recycling;​ 2.23 (13) "member" means a distributor or importer that joins the organization and pays the​ 2.24 applicable fees;​ 2.25 (14) "retailer" means a person in the state that sells beverages in beverage containers to​ 2.26 a consumer; and​ 2.27 (15) "store" means an individual location where a retailer sells beverage containers.​ 2.28 Sec. 2. [115A.5661] BEVERAGE CONTAINER DEPOSIT PROGRAM.​ 2.29 Subdivision 1. Applicable refund value. (a) Every beverage container sold or offered​ 2.30 for sale in the state has the following refund value:​ 2​Sec. 2.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 3.1 (1) ten cents for beverage containers of 24 fluid ounces or less; and​ 3.2 (2) 15 cents for beverage containers of more than 24 fluid ounces.​ 3.3 (b) The commissioner may change the refund value:​ 3.4 (1) by deciding, in consultation with the distributor and importer responsibility​ 3.5 organization, to change one or both refund amounts in a material-neutral manner; or​ 3.6 (2) upon receiving a request from the organization for a change in the refund amount​ 3.7 and determining that a change in one or both refund amounts in a material-neutral way is​ 3.8 appropriate.​ 3.9 (c) The commissioner must not change the refund value under paragraph (b), clause (1),​ 3.10 more than once every ten years.​ 3.11 (d) The commissioner must not change the refund value under paragraph (b), clause (2),​ 3.12 more than once every five years.​ 3.13 (e) Before changing the refund value under paragraph (b), the commissioner must publish​ 3.14 a notice in the State Register and allow a 60-day comment period.​ 3.15 (f) Notwithstanding paragraph (a), if the organization's publicly reported redemption​ 3.16 rate required under section 115A.5663, subdivision 6, shows that the redemption rate does​ 3.17 not reach 85 percent for three years in a row after being required to reach an 85 percent​ 3.18 redemption target under section 115A.5663, subdivision 5, then every beverage container​ 3.19 sold or offered for sale in the state has the following refund value:​ 3.20 (1) 15 cents for beverage containers of 24 fluid ounces or less; and​ 3.21 (2) 20 cents for beverage containers of more than 24 fluid ounces.​ 3.22 (g) The organization must use any refunds not claimed by the consumer for the​ 3.23 organization's administrative costs and duties under sections 115A.566 to 115A.5665.​ 3.24 Subd. 2. Disposition of redeemed containers. When a consumer redeems a beverage​ 3.25 container for the applicable refund value, the organization becomes the owner of the beverage​ 3.26 container and may:​ 3.27 (1) sell it to the buyer of the organization's choosing; or​ 3.28 (2) on its own or via a third party, process the reusable beverage container for refill.​ 3.29 Subd. 3. Retailer duties; methods of redeeming. (a) A retailer has no duties under​ 3.30 paragraphs (b) to (d) until the organization requests permission to install, maintain, and​ 3.31 service a beverage container processing mechanism inside or outside a store of the retailer.​ 3​Sec. 2.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 4.1 (b) For a store that is equal to or greater than 5,000 square feet, the retailer that operates​ 4.2 the store must:​ 4.3 (1) if the store has 30 or more parking spots for its customers, permit the organization​ 4.4 to:​ 4.5 (i) collect bags of redeemable beverage containers in a space of the retailer's choosing​ 4.6 in the store's parking lot; and​ 4.7 (ii) install, maintain, and service at least one other beverage container processing​ 4.8 mechanism inside or outside the store on property the retailer owns or leases;​ 4.9 (2) if the store has fewer than 30 parking spots for its customers, permit the organization​ 4.10 to install, service, and operate at least two beverage container processing mechanisms inside​ 4.11 or outside the store on property the retailer owns or leases; or​ 4.12 (3) accept beverage containers at the store and pay the applicable refund value for up to​ 4.13 250 beverage containers per person per day if the retailer does not, within 90 days of​ 4.14 receiving a written request from the organization, notify the organization that the retailer​ 4.15 will comply with clause (1) or (2) on property the retailer owns or leases.​ 4.16 (c) For a store that is more than 1,000 square feet and less than 5,000 square feet, the​ 4.17 retailer that operates the store must:​ 4.18 (1) if the store has 30 or more parking spots for its customers, permit the organization​ 4.19 to:​ 4.20 (i) collect bags of redeemable beverage containers in a space of the retailer's choosing​ 4.21 in the parking lot for the store; and​ 4.22 (ii) install, maintain, and service at least one other beverage container processing​ 4.23 mechanism inside or outside the store on property the retailer owns or leases; or​ 4.24 (2) if the store has fewer than 30 parking spots for its customers, permit the organization​ 4.25 to install, service, and operate at least one beverage container processing mechanism inside​ 4.26 or outside the store on property the retailer owns or leases; or​ 4.27 (3) accept beverage containers at the store and pay the applicable refund value for up to​ 4.28 50 beverage containers per person per day if the retailer does not, within 90 days of receiving​ 4.29 a written request from the organization, notify the organization that the retailer will comply​ 4.30 with clause (1) or (2) on property the retailer owns or leases.​ 4.31 (d) For a store that is 1,000 square feet or less and in which more than 1,000,000 beverage​ 4.32 containers per year are sold, the retailer that operates the store must:​ 4​Sec. 2.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 5.1 (1) if the store has 30 or more parking spots for its customers, permit the organization​ 5.2 to collect bags of redeemable beverage containers in a space of the retailer's choosing in​ 5.3 the parking lot for the store;​ 5.4 (2) if the store has fewer than 30 parking spots for its customers, permit the organization​ 5.5 to install, service, and operate at least one beverage container processing mechanism inside​ 5.6 or outside the store on property the retailer owns or leases; or​ 5.7 (3) accept beverage containers at the store and pay the applicable refund value for up to​ 5.8 25 beverage containers per person per day if the retailer does not, within 90 days of receiving​ 5.9 a written request from the organization, notify the organization that the retailer will comply​ 5.10 with clause (1) or (2) on property the retailer owns or leases.​ 5.11 (e) A retailer must comply with paragraph (f) at a store that is 1,000 square feet or less​ 5.12 and in which fewer than 1,000,000 beverage containers per year are sold.​ 5.13 (f) Notwithstanding paragraphs (b) to (d), a retailer, upon request by the organization​ 5.14 regarding a particular store of the retailer, must:​ 5.15 (1) offer for sale at that particular store of the retailer the standard bags that the​ 5.16 organization deems necessary to operate a bag-drop program;​ 5.17 (2) permit the organization to install, service, and operate at least one beverage container​ 5.18 processing mechanism in a space of the retailer's choosing inside or outside of that particular​ 5.19 store of the retailer; and​ 5.20 (3) permit the organization to install, service, and operate in a space of the retailer's​ 5.21 choosing inside or outside that particular store of the retailer a self-service kiosk that allows​ 5.22 for printing redemption vouchers.​ 5.23 (g) A retailer is exempt from this subdivision at a store the retailer operates that:​ 5.24 (1) primarily prepares food for sale; or​ 5.25 (2) sells beverage containers to consumers only through stand-alone vending machines​ 5.26 or similar means.​ 5.27 (h) Notwithstanding paragraphs (b) to (g), for zip codes in the state with a population​ 5.28 density greater than 30,000 residents per square mile, the organization must install, service,​ 5.29 and operate enough beverage container processing mechanisms to ensure that there is one​ 5.30 beverage container processing mechanism for every 500 residents.​ 5.31 (i) Any facilities that the organization establishes in the state to aggregate, sort, and​ 5.32 process the material collected at redemption locations:​ 5​Sec. 2.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 6.1 (1) must accept, according to a reasonable process the organization may establish,​ 6.2 beverage containers that are eligible for redemption and that are submitted in the standard​ 6.3 bag from entities established and operated as described in section 501(c)(3) of the Internal​ 6.4 Revenue Code or established and operated as a nonprofit organization under the tax law of​ 6.5 any district, state, or territory; and​ 6.6 (2) may provide entities under clause (1) a premium as determined by the organization.​ 6.7 (j) The methods of redemption required under this section must be available to the public​ 6.8 for not less than ten hours each day except for a federal or local holiday. This paragraph​ 6.9 does not apply to facilities the organization established to aggregate, sort, and process​ 6.10 material.​ 6.11 (k) The organization must provide information according to clauses (1) to (3) on how​ 6.12 consumers can alert the organization to problems at beverage container processing​ 6.13 mechanisms the organization operates:​ 6.14 (1) on the organization's website;​ 6.15 (2) on clearly visible signs, measuring at least five feet by five feet, at the bag-drop​ 6.16 redemption locations described in this section; and​ 6.17 (3) on clearly visible signs, measuring at least two feet by two feet, on or within five​ 6.18 feet of beverage container processing mechanisms that are not bag-drop redemption locations.​ 6.19 (l) The organization may create reasonable terms and conditions for using the bag-drop​ 6.20 program and beverage container processing mechanisms that the organization operates for​ 6.21 consumers to redeem beverage containers.​ 6.22 Subd. 4. Nonredeemable material. The organization is not required to pay refunds on:​ 6.23 (1) a beverage container visibly containing or contaminated by a substance other than​ 6.24 water, residue of the original contents, or ordinary dust;​ 6.25 (2) a beverage container that is:​ 6.26 (i) crushed or broken; or​ 6.27 (ii) damaged to the extent that the brand appearing on the container cannot be identified;​ 6.28 (3) a beverage container that the organization has reasonable grounds to believe was​ 6.29 bought in another state; or​ 6.30 (4) a beverage container for which the organization has reasonable grounds to believe​ 6.31 a refund has already been given.​ 6​Sec. 2.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 7.1 Subd. 5. Labeling. (a) A beverage producer, importer, or distributor of a beverage​ 7.2 container that is sold in the state must clearly display on the top or side of the beverage​ 7.3 container the abbreviation "RV," which indicates the container has a refund value.​ 7.4 (b) The organization may require that any beverage producer, importer, or distributor​ 7.5 of a beverage container that is sold in the state clearly display on the top or side of the​ 7.6 beverage container the abbreviation of the state and the applicable refund value.​ 7.7 (c) A beverage producer, importer, or distributor of a beverage container that is sold in​ 7.8 the state may include a barcode or unique code verification on the beverage container to​ 7.9 allow for automated identification.​ 7.10 Subd. 6. Timing. (a) All beverage containers that are made of 90 percent or more​ 7.11 aluminum, glass, high density polyethylene plastic, or polyethylene terephthalate and sold​ 7.12 in the state must have the applicable refund value no later than two years after the effective​ 7.13 date of this section. All other beverage containers that are sold in the state must have the​ 7.14 applicable refund value no later than three years after the effective date of this section.​ 7.15 (b) The commissioner may extend the deadlines under paragraph (a) for up to an​ 7.16 additional 365 days.​ 7.17 Subd. 7. Drop-off facilities and material recovery facilities; reporting data. (a) The​ 7.18 operator of a material recovery facility or drop-off facility operating in the state, or outside​ 7.19 the state where the majority of the material the facility processes originates in Minnesota,​ 7.20 may annually submit the following information to the organization:​ 7.21 (1) the number of tons of residential recyclable material the facility received for​ 7.22 processing in the previous calendar year; and​ 7.23 (2) an estimate of the number of tons under clause (1) that were received from households​ 7.24 in this state.​ 7.25 (b) The optional data under paragraph (a) must be submitted by April 1 for data from​ 7.26 the previous full calendar year.​ 7.27 Subd. 8. Prohibitions. (a) It is unlawful to distribute or sell beverage containers in the​ 7.28 state or import beverage containers in or into the state except in compliance with this section.​ 7.29 (b) It is unlawful to redeem a beverage container in the state that was not sold to a​ 7.30 consumer in the state.​ 7​Sec. 2.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 8.1 Subd. 9. Commissioner's report. By April 1 each odd-numbered year, the commissioner​ 8.2 must estimate and report to the organization the cost to administer and enforce sections​ 8.3 115A.566 to 115A.5665 for the following two fiscal years after:​ 8.4 (1) subtracting the amount that the commissioner collected from penalties assessed under​ 8.5 section 115A.5665 and that will be used to administer and enforce sections 115A.566 to​ 8.6 115A.5665 in the next two fiscal years; and​ 8.7 (2) adding any costs to administer and enforce sections 115A.566 to 115A.5665 that​ 8.8 were not covered by the estimated annual cost from the previous two fiscal years.​ 8.9 Sec. 3. [115A.5663] DISTRIBUTOR AND IMPORTER RESPONSIBILITY​ 8.10 ORGANIZATION.​ 8.11 Subdivision 1. Formation. The distributor and importer responsibility organization must​ 8.12 be established and operated as a nonprofit or cooperative corporation. Only one producer​ 8.13 responsibility organization is permitted to operate in the state. The organization may decide​ 8.14 to operate jointly with organizations in one or more other states.​ 8.15 Subd. 2. Members; penalty; fees. (a) All distributors and importers of a beverage in or​ 8.16 into the state must join the organization as members. A distributor or importer that operates​ 8.17 in violation of this subdivision is subject to penalties under section 115A.5665.​ 8.18 (b) The organization must charge a fee to members. The fee must be established in an​ 8.19 amount that, together with unclaimed refunds and any other revenue sources that the​ 8.20 organization may develop and that are not refunded under paragraph (d), covers the​ 8.21 organization's cost of operations.​ 8.22 (c) The organization must charge member fees that vary by material type reflecting:​ 8.23 (1) the cost of collecting, sorting, and processing each beverage container type; and​ 8.24 (2) the number of units of each beverage container type that the member distributes or​ 8.25 sells in the state.​ 8.26 (d) The organization must:​ 8.27 (1) refund to members the revenue generated from selling the scrap of each beverage​ 8.28 container type based on the percentage of each beverage container type that a member​ 8.29 distributes or sells in the state; or​ 8.30 (2) if refunds under clause (1) are not legally permitted, credit each member against the​ 8.31 fee charged under paragraph (c) the amount of the applicable refund under clause (1).​ 8​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 9.1 Subd. 3. Duties; authorities. (a) The organization must publish on its website:​ 9.2 (1) within 18 months after the effective date of this section, an initial plan for how the​ 9.3 organization will, over the next five years, meet the requirements of sections 115A.566 to​ 9.4 115A.5665, including the performance targets under subdivision 5;​ 9.5 (2) an updated plan, at least every five years after the initial plan is published, for how​ 9.6 the organization will continue to meet the requirements of sections 115A.566 to 115A.5665,​ 9.7 including the performance targets under subdivision 5; and​ 9.8 (3) a list and map of all redemption locations and what redemption options are available​ 9.9 at each location.​ 9.10 (b) The organization must pay for:​ 9.11 (1) any beverage container processing mechanism or self-service kiosk that the​ 9.12 organization installs, services, and operates:​ 9.13 (i) with a retailer's permission under section 115A.5661, subdivision 3, or at any other​ 9.14 location;​ 9.15 (ii) to meet or exceed a performance target under subdivision 5; or​ 9.16 (iii) to meet or exceed the per capita requirement under section 115A.5661, subdivision​ 9.17 3, paragraph (g);​ 9.18 (2) any facilities in the state necessary to efficiently aggregate, sort, and process the​ 9.19 material collected at redemption locations;​ 9.20 (3) a credit to consumers for the cost of the bags that are processed at the organization's​ 9.21 bag-drop locations; and​ 9.22 (4) by July 1 of each calendar year, starting the first full year and ending the fifth full​ 9.23 year after one or more beverage container types is sold with the applicable refund value, an​ 9.24 annual payment directly to each material recovery facility and drop-off facility operator​ 9.25 that submits data according to section 115A.5661, subdivision 7, that:​ 9.26 (i) equals a pro rata portion of ten percent of the scrap value of the material the​ 9.27 organization sold in the preceding calendar year; and​ 9.28 (ii) is based on the data submitted by the material recovery facility and drop-off facility​ 9.29 operators under section 115A.5661, subdivision 7.​ 9.30 (c) The organization may use money generated under this section and section 115A.5661​ 9.31 or other sources of revenue to:​ 9​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 10.1 (1) give grants for litter cleanup and for education and outreach on recycling beverage​ 10.2 containers;​ 10.3 (2) directly or in partnership with a nongovernmental organization provide services to​ 10.4 or enhance the redemption experience of diverse or low-income consumers redeeming​ 10.5 beverage containers; and​ 10.6 (3) pay advisory committee members under subdivision 7 or pay for the administration​ 10.7 and activities of the advisory committee.​ 10.8 (d) To the extent allowed under law, the organization may refund money to organization​ 10.9 members in a fiscal year in which the organization's revenues exceed the organization's​ 10.10 costs under this section by more than ten percent. Money refunded to members must not​ 10.11 cause revenue to go below 110 percent of the organization's costs.​ 10.12 (e) The organization must use refunds not claimed by the consumer to support the​ 10.13 organization's administrative costs and to perform the duties required under this section.​ 10.14 Subd. 4. Bag requirements. If the standard bags sold at retailers for the bag-drop program​ 10.15 are made of plastic film, the organization must:​ 10.16 (1) ensure that the bags have a minimum of 50 percent recycled content; and​ 10.17 (2) demonstrate, upon request of the commissioner, that the waste film from the bags is​ 10.18 being recycled in the best commercially available manner.​ 10.19 Subd. 5. Performance targets. (a) The organization must meet the following performance​ 10.20 targets:​ 10.21 (1) beginning two years after all beverage containers are sold in the state with the​ 10.22 applicable refund value, at least 70 percent annual redemption for all beverage containers;​ 10.23 (2) beginning four years after all beverage containers are sold in the state with the​ 10.24 applicable refund value, at least 75 percent annual redemption for all beverage containers;​ 10.25 (3) beginning six years after all beverage containers are sold in the state with the​ 10.26 applicable refund value, at least 85 percent annual redemption for all beverage containers;​ 10.27 and​ 10.28 (4) beginning eight years after all beverage containers are sold in the state with the​ 10.29 applicable refund value, at least 90 percent annually of all beverage containers are redeemed​ 10.30 under sections 115A.566 to 115A.5665 or recycled through a curbside recycling program.​ 10.31 (b) If the organization does not meet an applicable performance target under paragraph​ 10.32 (a), the organization must submit a product stewardship plan to the commissioner. The plan​ 10​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 11.1 must be submitted to the commissioner no more than 365 days after publication of the data​ 11.2 required under subdivision 6 shows that the applicable performance target in paragraph (a)​ 11.3 was not met. The plan must detail the actions the organization will take to meet the​ 11.4 performance targets.​ 11.5 (c) If the applicable performance targets under paragraph (a) have not been met in each​ 11.6 of the three years after the organization submitted a product stewardship plan under paragraph​ 11.7 (b), then the commissioner may:​ 11.8 (1) fine the organization once per calendar year in an amount equal to the difference​ 11.9 between the amount of redeemed beverage containers and the amount of beverage containers​ 11.10 that should have been redeemed under the applicable performance target, multiplied by up​ 11.11 to ten cents per beverage container; and​ 11.12 (2) require the organization to submit a revised product stewardship plan.​ 11.13 (d) If the performance targets under paragraph (a) have not been met in each of the five​ 11.14 years after the organization submitted a product stewardship plan under paragraph (b), then:​ 11.15 (1) if the organization's director has held office for more than 365 days, the organization​ 11.16 must explain on its website why a new director is not necessary; and​ 11.17 (2) the commissioner may fine the organization once per calendar year in an amount​ 11.18 equal to the difference between the amount of redeemed beverage containers and the amount​ 11.19 of beverage containers that should have been redeemed under the applicable performance​ 11.20 target, multiplied by up to 15 cents per beverage container.​ 11.21 (e) If the performance targets under paragraph (a) have not been met in each of the seven​ 11.22 years after the organization submitted a product stewardship plan under paragraph (b), then​ 11.23 the commissioner may assume the organization's operations and charge the member fees​ 11.24 according to subdivision 2 until the performance targets are met. The commissioner must​ 11.25 then transfer leadership of the organization back to the organization's governing board within​ 11.26 180 days after achieving the performance targets.​ 11.27 (f) If the performance targets are not met for at least two years in a row within five years​ 11.28 after the commissioner assumes operations under paragraph (e), the commissioner must​ 11.29 allow the members of the organization to choose a new organization director, in which case​ 11.30 paragraphs (b) to (e) apply anew beginning three years after the new director is chosen.​ 11.31 Subd. 6. Reporting. (a) By July 1 beginning the first full year after one or more beverage​ 11.32 container types have a refund value, the organization must make the information in clauses​ 11.33 (1) to (21) for the preceding calendar year publicly available on the organization's website:​ 11​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 12.1 (1) the number of beverage containers sold in the state by material type and the portion​ 12.2 of the total sold that was refillable or reusable for each quarter of the report year and for​ 12.3 the quarters of each of at least the last five prior years, to the extent the data is available​ 12.4 under sections 115A.566 to 115A.5665;​ 12.5 (2) the percent of the total amount of beverage containers sold in the state that each​ 12.6 material type represents for each quarter of the report year and for the quarters of each of​ 12.7 at least the last five prior years, to the extent the data is available under sections 115A.566​ 12.8 to 115A.5665;​ 12.9 (3) the percent of the total amount of fees charged to the members that each material​ 12.10 type represents for each quarter of the report year and for the quarters of each of at least the​ 12.11 last five prior years, to the extent the data is available under sections 115A.566 to 115A.5665;​ 12.12 (4) the number of beverage containers redeemed by material type for each quarter of​ 12.13 the report year and for the quarters of each of at least the last five prior years, to the extent​ 12.14 the data is available under sections 115A.566 to 115A.5665;​ 12.15 (5) the number of beverage containers redeemed at each bag-drop location, reverse​ 12.16 vending machine, or other beverage container processing mechanism that the organization​ 12.17 operates;​ 12.18 (6) the buyers to which the organization sold beverage containers, including what material​ 12.19 type each buyer bought from the organization;​ 12.20 (7) the percent of the total amount sold of each material type that went to each buyer;​ 12.21 (8) all redemption locations in the state;​ 12.22 (9) the methods of redemption at each location in the state;​ 12.23 (10) the organization's total annual expenses;​ 12.24 (11) the organization's total annual revenue;​ 12.25 (12) the organization's total reserves;​ 12.26 (13) the total cost to the organization for each beverage container returned;​ 12.27 (14) the number of redemption locations that provide services or an enhanced redemption​ 12.28 experience for diverse or low-income consumers;​ 12.29 (15) aggregated employee demographic information that includes at a minimum the race​ 12.30 or ethnicity and gender identity of employees working on-site at redemption locations or​ 12​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 13.1 at facilities the organization establishes to aggregate, sort, and process the material collected​ 13.2 at redemption locations and of other organization employees;​ 13.3 (16) the number of consumer complaints per month by redemption location for the report​ 13.4 year and for at least the last five prior years, to the extent the data is available under sections​ 13.5 115A.566 to 115A.5665;​ 13.6 (17) the total number of individual consumers per month that filed complaints by​ 13.7 redemption location for the report year and for at least the last five prior years;​ 13.8 (18) a list of all organization members and each member's beverage brands and a​ 13.9 breakdown of each member's beverage packaging mix by beverage container type for the​ 13.10 report year and for at least the last five prior years, to the extent the data is available under​ 13.11 sections 115A.566 to 115A.5665;​ 13.12 (19) a list of the buyers of waste film from the standard bag sold to consumers for the​ 13.13 bag-drop program and a description of the products that are produced from the waste film;​ 13.14 (20) the number of individuals and organizations with a registered account to receive​ 13.15 electronic deposits of refunds; and​ 13.16 (21) the names of the governing board members of the organization.​ 13.17 (b) The organization may rely on member reporting when compiling information to be​ 13.18 reported under paragraph (a), but must note in the annual report which data in paragraph​ 13.19 (a) are based on member reporting.​ 13.20 (c) Once per calendar year, the commissioner may require the organization to have an​ 13.21 independent third party verify the data disclosed under paragraph (a). The scope of the​ 13.22 review is limited to the data that the organization is required to report under paragraph (a),​ 13.23 and the commissioner must specify the data to be reviewed. The commissioner must notify​ 13.24 the organization no later than August 1 that an independent third-party review is required,​ 13.25 and the organization must complete the independent third-party review by December 31 of​ 13.26 the year notified. The organization must pay for the cost of the third-party review.​ 13.27 (d) The organization must establish safeguards to ensure its members do not have access​ 13.28 to information regarding:​ 13.29 (1) the price paid by any individual buyer for the material sold; or​ 13.30 (2) how much of each material went to each individual recycler.​ 13​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 14.1 (e) By February 28 each year, each organization member must report to the organization​ 14.2 all data necessary to satisfy the disclosure requirements under paragraph (a). The organization​ 14.3 must establish a process for the data to be confidentially submitted.​ 14.4 Subd. 7. Advisory committees. (a) The organization must establish an operations​ 14.5 advisory committee that represents a range of stakeholders. The committee must include,​ 14.6 at a minimum, a representative of:​ 14.7 (1) beverage container manufacturers or manufacturer trade associations;​ 14.8 (2) beverage producers or producer trade associations;​ 14.9 (3) local governments;​ 14.10 (4) state government;​ 14.11 (5) environmental nonprofit organizations;​ 14.12 (6) entities that buy or recycle beverage containers from the organization; and​ 14.13 (7) retailers or retailer trade associations.​ 14.14 (b) The operations advisory committee may:​ 14.15 (1) provide written or oral comments directly to the organization's president and board​ 14.16 of directors no more than four times each year; and​ 14.17 (2) submit to the organization every even-numbered year a written report, which the​ 14.18 organization must publish on its website if the committee requests it, containing the​ 14.19 committee's feedback on:​ 14.20 (i) the organization's operation; and​ 14.21 (ii) the deposit return system generally.​ 14.22 (c) The organization must establish an equity and access advisory committee that helps​ 14.23 to ensure that the organization's operations appropriately consider the diverse needs and​ 14.24 cultures of individuals who redeem beverage containers. The committee must include, at a​ 14.25 minimum:​ 14.26 (1) a homeless advocate;​ 14.27 (2) a representative of a government social services office;​ 14.28 (3) a representative of a nongovernmental organization that advocates on behalf of one​ 14.29 or more cultural groups; and​ 14.30 (4) a specialist in diversity and inclusion.​ 14​Sec. 3.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 15.1 (d) The equity and access committee may:​ 15.2 (1) provide written or oral comments directly to the organization's president and board​ 15.3 of directors no more than four times each year; and​ 15.4 (2) submit to the organization every odd-numbered year a written report, which the​ 15.5 organization must publish on its website if the committee requests it, containing:​ 15.6 (i) the committee's feedback on whether organization operations are appropriately​ 15.7 considering the diverse needs and cultures of individuals who redeem beverage containers;​ 15.8 and​ 15.9 (ii) recommendations on how the organization can improve in terms of equity and access.​ 15.10 Subd. 8. Reimbursement. By June 30 each odd-numbered year, the organization must​ 15.11 transfer to the commissioner an amount, not to exceed $500,000 for each of the next two​ 15.12 fiscal years, to be deposited in the state treasury and credited to the special revenue fund to​ 15.13 pay for the estimated program cost reported under section 115A.5661, subdivision 8. The​ 15.14 money is appropriated to the commissioner for the specified purposes.​ 15.15 Sec. 4. [115A.5665] ENFORCEMENT.​ 15.16 Subdivision 1. Civil penalty. In addition to any other applicable civil or criminal​ 15.17 penalties, the commissioner may impose a civil penalty for violating sections 115A.566 to​ 15.18 115A.5663 of $100 per day for each initial separate violation and not more than $1,000 per​ 15.19 day for each subsequent separate violation.​ 15.20 Subd. 2. Criminal penalty. (a) A person who, with intent to defraud, knowingly takes​ 15.21 any of the following actions is guilty of a crime:​ 15.22 (1) redeems out-of-state containers, rejected containers, line breakage, or containers that​ 15.23 have already been redeemed;​ 15.24 (2) returns redeemed containers to a redemption location seeking a refund;​ 15.25 (3) brings out-of-state containers, rejected containers, or line breakage to the state for​ 15.26 redemption; or​ 15.27 (4) sells beverage containers not distributed in or imported into the state by a member​ 15.28 of the organization.​ 15.29 (b) If the money obtained from a criminal act under paragraph (a):​ 15​Sec. 4.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 16.1 (1) is less than or equal to $950, the person convicted is subject to imprisonment in a​ 16.2 county jail for not more than six months, a fine not exceeding $1,000, or both imprisonment​ 16.3 and a fine; or​ 16.4 (2) exceeds $950, the person convicted is subject to imprisonment in a county jail for​ 16.5 not more than one year, a fine not exceeding $10,000, or both imprisonment and a fine.​ 16.6 Subd. 3. Injunction. The commissioner may bring a civil action to enjoin the distribution,​ 16.7 importation, or sale into the state of a beverage sold in a beverage container in violation of​ 16.8 section 115A.5661.​ 16.9 Subd. 4. Organization fines. The commissioner may fine the organization up to $30,000​ 16.10 annually for each redemption location that receives complaints from more than an average​ 16.11 of 100 individuals per month in a calendar year according to the public reporting required​ 16.12 in section 115A.5663, subdivision 6.​ 16.13 Subd. 5. Distributor and importer fines. The commissioner may administratively​ 16.14 impose a civil penalty once each year on a distributor or importer who fails to participate​ 16.15 in the organization as required under section 115A.5663, subdivision 2. The commissioner​ 16.16 must first notify the distributor or importer of the noncompliance and allow 60 days for the​ 16.17 distributor or importer to comply before imposing the penalty. The penalty must be the​ 16.18 greater of ten cents per beverage container sold by the distributor or importer in the state​ 16.19 or $10,000. A distributor or importer that incurs a penalty under this subdivision may appeal​ 16.20 the penalty as a contested case under chapter 14.​ 16.21 Subd. 6. Disposition of proceeds. All monetary penalties that the commissioner recovers​ 16.22 under this section must be deposited in the state treasury and credited to the special revenue​ 16.23 fund. The money is appropriated to the commissioner to be used only in the fiscal year​ 16.24 following the fiscal year the money is received as follows:​ 16.25 (1) up to $5,000,000 available each fiscal year must be used only to administer sections​ 16.26 115A.566 to 115A.5665; and​ 16.27 (2) any available amount in excess of $5,000,000 each fiscal year may be used:​ 16.28 (i) for the purposes described in clause (1);​ 16.29 (ii) to conduct outreach and educational activities focused on the beverage container​ 16.30 recycling refund system;​ 16.31 (iii) to clean up litter in the state; or​ 16.32 (iv) to support collection of recyclable material in public spaces.​ 16​Sec. 4.​ REVISOR CKM/DG 25-01715​12/26/24 ​ 17.1 Sec. 5. EFFECTIVE DATE.​ 17.2 Sections 1 to 4 are effective July 1, 2026.​ 17​Sec. 5.​ REVISOR CKM/DG 25-01715​12/26/24 ​