Establishing producer responsibility for textiles.

AN ACT Relating to establishing producer responsibility for 1 textiles; reenacting and amending RCW 43.21B.110 and 43.21B.300; 2 adding a new chapter to Title 70A RCW; and prescribing penalties.3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4 NEW SECTION. Sec. 1. The intent of this chapter is to establish 5 a statewide extended producer responsibility program for apparel and 6 textile articles that emphasizes repair and reuse, and minimizes 7 generation of hazardous waste, generation of greenhouse gases, 8 environmental impacts, environmental justice impacts, and public 9 health impacts.10 NEW SECTION. Sec. 2. The definitions in this section apply 11 throughout this chapter unless the context clearly requires 12 otherwise.13 (1)(a) "Apparel" means clothing and accessory items intended for 14 regular wear or formal occasions and outdoor activities.15 (b) "Apparel" includes undergarments, shirts, pants, skirts, 16 dresses, overalls, bodysuits, costumes, vests, dancewear, suits, 17 saris, scarves, tops, leggings, school uniforms, leisurewear, 18 athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, 19 footwear, handbags, backpacks, knitted and woven accessories, 20 H-0503.1 HOUSE BILL 1420 State of Washington 69th Legislature 2025 Regular Session By Representative Reeves p. 1 HB 1420 jackets, coats, snow pants, ski pants, and everyday uniforms for 1 workwear. 2 (c) "Apparel" does not include any of the following:3 (i) Personal protective equipment worn to protect the wearer from 4 health or environmental hazards; 5 (ii) Personal protective equipment or clothing items for use by 6 the United States military; or 7 (iii) Reusable products designed to collect and absorb urine and 8 feces, or reusable products regulated by the United States food and 9 drug administration that are designed to collect and absorb 10 menstruation or vaginal discharge. 11 (2) "Authorized collector" means a person or entity that has 12 entered into an agreement with a producer responsibility organization 13 to collect covered products. 14 (3) "Authorized sorter" means a person or entity that has entered 15 into an agreement with a producer responsibility organization to sort 16 covered products collected by authorized collectors.17 (4) "Brand" means a trademark, including both a registered 18 trademark and an unregistered trademark, a logo, a name, a symbol, a 19 word, an identifier, or a traceable mark that identifies a covered 20 product and identifies the owner or licensee of the brand.21 (5) "Collection box" means an unattended container, box, 22 receptacle, or similar device used for soliciting and collecting 23 donations of covered products, including apparel or textile articles.24 (6) "Collection site" means a permanent or temporary location 25 operated by an authorized collector at which covered products are 26 collected and prepared for transport in accordance with the 27 requirements of this chapter. 28 (7) "Consumer" means an owner of a covered product, including a 29 person, business, corporation, limited partnership, nonprofit 30 organization, or governmental entity, and includes the ultimate 31 purchaser, owner, or lessee of a covered product who is not, as to 32 that covered product, the distributor, importer, producer, recycler, 33 retailer, or producer responsibility organization.34 (8) "Covered product" means an apparel or textile article 35 introduced into the state. 36 (9) "Department" means the department of ecology.37 (10) "Distributor" means a company that has a contractual 38 relationship with one or more producers to market and sell covered 39 products to a retailer. 40 p. 2 HB 1420 (11) "Importer" means either: 1 (a) A person qualifying as an importer of record for purposes of 2 19 U.S.C. Sec. 1484 (a)(2)(B), as it existed as of January 1, 2025, 3 with regard to the import of a covered product that is sold, 4 distributed for sale, or offered for sale in or into the state that 5 was manufactured or assembled by a company outside of the United 6 States; or 7 (b) A person importing into the state for sale, distributing for 8 sale, or offering for sale in the state a covered product for use in 9 the state that was manufactured or assembled by a company physically 10 located outside of the state. 11 (12) "Introduce" means to sell, offer for sale, distribute, or 12 ship a product within or into this state. 13 (13) "Local jurisdiction" means a county, city, or other 14 political subdivision of the state that provides solid waste 15 collection services. 16 (14) "Mail-back program" means a method of collecting covered 17 products using prepaid, preaddressed, mailing envelopes, boxes, or 18 other means that are reusable, recyclable, or compostable.19 (15) "Needs assessment" means a needs assessment prepared under 20 section 5 of this act. 21 (16) "Online marketplace" means a consumer-directed, 22 electronically accessed platform for which all of the following are 23 true: 24 (a) The platform includes features that allow for, facilitate, or 25 enable third-party sellers to engage in the sale, purchase, payment, 26 storage, shipping, or delivery of a covered product in this state;27 (b) The features described in (a) of this subsection are used by 28 third-party sellers; and 29 (c) The platform has a contractual relationship with consumers 30 governing their use of the platform to purchase consumer products.31 (17)(a) "Producer" means: 32 (i) A person who manufactures a covered product and owns or is 33 the licensee of the brand or trademark under which that covered 34 product is introduced in or into the state; 35 (ii) If there is no person in Washington who is the producer for 36 purposes of (a)(i) of this subsection, the producer of the covered 37 product is the owner of a brand or trademark or, if the owner is not 38 in the state, the exclusive licensee of a brand or trademark under 39 which the covered product is sold, imported for sale, offered for 40 p. 3 HB 1420 sale, or distributed for sale in or into the state, regardless of 1 whether the trademark is registered. For purposes of this subsection, 2 an exclusive licensee is a person holding the exclusive right to use 3 a trademark or brand in the state in connection with the manufacture, 4 sale, or distribution for sale in or into the state of the covered 5 product; 6 (iii) If there is no person in the state who is the producer for 7 purposes of (a)(i) or (ii) of this subsection, then the producer of 8 the covered product is the person that imports the covered product 9 into the state for sale or distribution; 10 (iv) If there is no other person in the state who is the producer 11 for purposes of (a)(i), (ii), or (iii) of this subsection, the 12 producer of the covered product is the distributor, retailer, or 13 wholesaler who sells the product in or into the state; or14 (v) A person is the "producer" of a covered material introduced 15 in or into this state, as defined in (a)(i) through (iv) of this 16 subsection, except where another person has mutually signed an 17 agreement with a producer as defined in (a)(i) through (iv) of this 18 subsection that contractually assigns responsibility to the person as 19 the producer, and the person has joined a registered producer 20 responsibility organization as the responsible producer for that 21 covered material under this chapter. If another person is assigned 22 responsibility as the producer under this subsection, the producer 23 under (a)(i) through (v) of this subsection must provide written 24 certification of that contractual agreement to the producer 25 responsibility organization; (b) For purposes of this chapter, the 26 sale of a covered product must be deemed to occur in the state if the 27 covered product is delivered to the customer in the state;28 (c) "Producer" does not include: 29 (i) A seller that sells only secondhand covered products;30 (ii)(A) A seller with less than $1,000,000 in annual aggregate 31 global turnover as annually adjusted for inflation. The department 32 must use the consumer price index for urban wage earners to calculate 33 the annual rate of inflation adjustment effective January 1st of each 34 year. 35 (B) The aggregate global turnover of a producer must be 36 calculated by adding together the respective turnovers of all of the 37 following: 38 (I) The producer concerned; 39 p. 4 HB 1420 (II) Those entities in which the producer is concerned directly 1 or indirectly, through ownership of more than one-half of the capital 2 or business assets, through the power to exercise more than one-half 3 of the voting rights, through the power to appoint more than one-half 4 of the members of the supervisory board, the administrative board, or 5 bodies legally representing the undertakings, or through the right to 6 manage the entities' affairs; 7 (III) Those entities that have the rights or powers identified in 8 (c)(ii)(B)(II) of this subsection; 9 (IV) Those entities in which an entity referred to in 10 (c)(ii)(B)(III) of this subsection has the rights or powers listed in 11 (c)(ii)(B)(II) of this subsection; or 12 (V) Those entities in which two or more entities referred to in 13 (c)(ii)(B)(I) through (IV) of this subsection jointly have the rights 14 or powers listed in (c)(ii)(B) of this subsection.15 (18) "Producer responsibility organization" means:16 (a) An organization that is exempt from taxation under section 17 501(c)(3) of the federal internal revenue code of 1986, is formed for 18 the purpose of implementing a plan to meet the requirements of this 19 chapter, and is approved by the department; or 20 (b) A producer that registers with the department as a producer 21 responsibility organization and implements an individual plan 22 addressing the covered products of the producer. 23 (19) "Plan" means the plan developed by the producer 24 responsibility organization for the collection, transportation, 25 repair, recycling, and safe and proper management of covered products 26 under this chapter containing the contents specified in section 6 of 27 this act and submitted to the department for approval under section 7 28 of this act. 29 (20) "Repair" means any alteration or improvement of damaged 30 covered product deemed worth the cost of repair by criteria 31 established by the plan including, but not limited to:32 (a) Redesigning and repurposing; 33 (b) Mending rips, holes, seams, or hems; 34 (c) Removing and repairing surface damage, such as pilling, stain 35 removal, or abrasion; 36 (d) Securing and reattaching buttons and other fastenings;37 (e) Dyeing, redyeing, overdyeing, or printing of images on 38 covered products; or 39 (f) Preparation for reuse and resale. 40 p. 5 HB 1420 (21) "Responsible market" means an entity that:1 (a) First produces and sells, transfers, or uses recycled product 2 or recycled content feedstock that meets the quality standards 3 necessary to be used in the creation of new or reconstituted 4 products; 5 (b) Complies with all applicable federal, state, and local 6 statutes, rules, ordinances, and other laws governing environmental, 7 health, safety, and financial responsibility; 8 (c) If the market operates in the state, manages waste according 9 to the state's solid waste management hierarchy established in RCW 10 70A.205.005(8); and 11 (d) Meets the minimum operational standards adopted under a 12 producer responsibility organization plan to protect the environment, 13 public health, worker health and safety, and minimize adverse impacts 14 to socially vulnerable populations. 15 (22) "Responsible producer" means a producer that is not excluded 16 under subsection (16)(c) of this section. 17 (23) "Retailer" means a person who sells or offers for sale a 18 covered product in or into the state to a person through any means 19 including, but not limited to, sales outlets, catalogs, the 20 telephone, the internet, or any electronic means. 21 (24) "Reuse" means the resale of a collected covered product to a 22 consumer for its original intended use with or without repair.23 (25) "Secondhand covered product" means any covered product that 24 has previously been owned by a consumer. 25 (26) "Secondhand markets" means a retailer who sells secondhand 26 covered products including, but not limited to, thrift stores, 27 collection box operators, online resale platforms, and flea markets.28 (27) "Socially vulnerable population" includes:29 (a) Any person residing in a census tract that contains a high 30 overall social vulnerability index as measured using the United 31 States center for disease control's and the agency for toxic 32 substances and disease registry's social vulnerability index, as it 33 existed as of January 1, 2025, for the most recent year such data are 34 available; and 35 (b) Any person who has an income below the minimum necessary for 36 a household based on family composition in a given geography to 37 adequately meet their basic needs without public or private 38 assistance, as measured by the University of Washington's center for 39 women's welfare, for the most recent year such data are available.40 p. 6 HB 1420 (28)(a) "Textile article" means an item customarily used in 1 households or businesses that are made entirely or primarily from a 2 natural, artificial, or synthetic fiber, yarn, or fabric. For 3 purposes of this chapter, "textile article" includes blankets, 4 curtains, fabric window coverings, knitted and woven accessories, 5 towels, tapestries, bedding, tablecloths, napkins, linens, and 6 pillows. 7 (b) "Textile article" does not include single-use products 8 including paper towels, paper napkins, toilet paper, facial tissue, 9 or wet or dry wipes. 10 (29) "Third-party seller" means a person or entity, independent 11 of an online marketplace, who sells, offers to sell, or contracts 12 with an online marketplace to sell a consumer product in the state by 13 or through an online marketplace. 14 NEW SECTION. Sec. 3. (1) By January 1, 2027, each producer of a 15 covered product must register with the department as a producer 16 responsibility organization, or join a producer responsibility 17 organization that registers on behalf of its member producers with 18 the department. The application of a producer responsibility 19 organization must describe how the producer responsibility 20 organization meets the registration requirements of this section. If 21 registration applications for more than one producer responsibility 22 organization, other than individual producers registering as producer 23 responsibility organizations, are submitted to the department, the 24 department must determine and register the proposed producer 25 responsibility organization that can most effectively implement this 26 chapter. 27 (2) The department must, by March 1, 2027, approve a producer 28 responsibility organization that meets the requirements of this 29 chapter and: 30 (a) The producer responsibility organization has a governing 31 board consisting of producers that are diverse in size and type and 32 that represent the diversity of covered products placed in the market 33 by those entities. The governing board may include ex officio members 34 involved in the collection, sorting, repair, reuse, recycling, or 35 management of covered products; and 36 (b) The producer responsibility organization demonstrates that it 37 has adequate financial responsibility and financial controls in 38 p. 7 HB 1420 place, including fraud prevention measures and an audit schedule, to 1 ensure proper management of funds. 2 (3) After January 1, 2036, the department may determine that an 3 additional producer responsibility organization would be beneficial 4 in satisfying the requirements of this chapter, and may approve the 5 registration of additional producer responsibility organizations that 6 meet the requirements of this chapter and that: 7 (a) Submits to the department, and agrees to cover the 8 department's reasonable costs to review, a petition to establish a 9 new producer responsibility organization; 10 (b) Is composed of a sufficient number of producers to jointly 11 comply with the requirements of this chapter; and 12 (c) The proposed producer responsibility organization agrees to 13 cover the costs of all of the provisions of this chapter applicable 14 to the proposed producer responsibility organization and its 15 participant producers. 16 (4) The requirements of subsections (2)(a) and (b) and (3)(a), 17 (b), and (c) of this subsection do not apply to producers registering 18 with the department as a producer responsibility organization. The 19 department may require an individual producer registering with the 20 department as a producer responsibility organization to pay 21 incremental costs to the department under this chapter associated 22 with the registration of the individual producer as a producer 23 responsibility organization. 24 (5) Each producer covered under a producer responsibility 25 organization must register with that producer responsibility 26 organization in accordance with the procedures and requirements 27 established by that producer responsibility organization and must 28 comply with those procedures and requirements. 29 (6) Upon the approval of a plan under this chapter or by July 1, 30 2031, whichever is sooner, a producer is subject to penalties under 31 this chapter unless: 32 (a) The producer is a participant of a producer responsibility 33 organization whose registration has been approved by the department 34 or the producer has received registration approval from the 35 department as a producer responsibility organization; and36 (b)(i) For producers that have joined a producer responsibility 37 organization, all covered products are accounted for in the plan; or38 p. 8 HB 1420 (ii) For producers that are registered as a producer 1 responsibility organization, all covered products of the producer are 2 accounted for in the plan; and 3 (c) If an entity does not meet the definition of a producer and 4 is not subject to this chapter before January 1, 2031, but at any 5 point, after January 1, 2031, meets the definition of a producer, the 6 producer must, within 90 days, become a participant of the producer 7 responsibility organization or register with the department as a 8 producer responsibility organization, and comply with the 9 requirements of this chapter. 10 (7) A producer is not in compliance with this chapter and is 11 subject to penalties under section 14 of this act if a covered 12 product sold or offered for sale by the producer is not subject to an 13 approved producer responsibility organization plan.14 (8)(a) No later than 30 days after the effective date of rules 15 adopted by the department to implement this chapter, each producer or 16 the producer responsibility organization must provide the department, 17 in a form and manner established by the department, a list of brands 18 of covered products that each producer sells, distributes for sale, 19 imports for sale, or offers for sale in or into the state;20 (b) A producer or producer responsibility organization must 21 update the list described in (a) of this subsection and provide the 22 updated list to the department on or before January 15th of each 23 year, or upon request of the department. 24 NEW SECTION. Sec. 4. (1) Each producer responsibility 25 organization whose registration has been approved by the department 26 under section 3 of this act must, individually or collaboratively, 27 prepare and cover the costs of the needs assessments described in 28 section 5 of this act. 29 (2) Each producer responsibility organization must manage 30 collection sites consistent with section 9 of this act.31 (3) Each participant of a producer responsibility organization 32 with an approved plan must comply with the requirements of this 33 chapter. The producer responsibility organization must notify the 34 department within 30 calendar days of any of the following:35 (a) The end of any three-month period in which the producer 36 responsibility organization unsuccessfully attempted to obtain a fee, 37 records, or other information from a participant producer, or 38 received incomplete or incorrect records or information;39 p. 9 HB 1420 (b) The date a producer no longer participates in a producer 1 responsibility organization's plan; or 2 (c) Any instance of noncompliance by a producer.3 (4)(a) Producers and a producer responsibility organization, 4 acting on behalf of producers that prepare, submit, and implement a 5 plan pursuant to this chapter and who are thereby subject to 6 regulation by the department, are hereby granted immunity from state 7 laws relating to antitrust, restraint of trade, unfair trade 8 practices, and other regulation of trade and commerce, for the 9 limited purpose of planning, reporting, and operating the stewardship 10 program, including: 11 (i) The creation, implementation, or management of the producer 12 responsibility organization and any plan regardless of whether it is 13 submitted, denied, or approved; 14 (ii) The cost and structure of a plan; and 15 (iii) The types or quantities of covered products being managed 16 pursuant to this chapter. 17 (b) The immunity granted in (a) of this subsection does not apply 18 to: 19 (i) Fixing a price of or for covered products, except for an 20 agreement related to costs or charges associated with participation 21 in a plan approved by the department; 22 (ii) Fixing the output or production of covered products; or23 (iii) Restricting the geographic area in which, or customers to 24 whom, covered products will be sold. 25 NEW SECTION. Sec. 5. (1)(a) Each statewide needs assessment 26 carried out by a producer responsibility organization must be 27 designed to determine the necessary steps and investment needed for 28 covered products to achieve the requirements of this chapter. 29 (b) An initial needs assessment for covered products must be 30 completed prior to the completion and approval of a plan for covered 31 products under this chapter. The initial needs assessment must be 32 submitted to the department by March 1, 2028. The department must 33 review and approve, conditionally approve, or disapprove the needs 34 assessment as meeting the requirements of this section within 90 days 35 of submission. 36 (c) Needs assessments must be updated, in whole or in part, at 37 least every five years, and as necessary to ensure the requirements 38 of this chapter are met. 39 p. 10 HB 1420 (d) A producer responsibility organization may select an 1 independent third-party contractor to complete the needs assessment.2 (e) A producer responsibility organization may prepare more than 3 one needs assessment, with each assessment specific to one or more 4 covered products under this chapter, or may prepare one comprehensive 5 needs assessment that includes all covered products under this 6 chapter. 7 (2) Each needs assessment must comply with all of the following:8 (a) Be designed to inform the program budget and plan; and9 (b) Include an evaluation of all of the following with respect to 10 covered products and covered product categories: 11 (i) Existing scope and scale of annual covered products diverted 12 to landfill or incineration in the state by type of covered product, 13 material composition, and volume and annual covered product recovery 14 diverted to reuse, repair, or recycling in the state or from the 15 state by type of covered product, material composition, and volume;16 (ii) The current repair, reuse, recycling, collection, sorting, 17 and hauling system in the state and the expanded access and 18 additional repair, reuse, recycling, collection, sorting, 19 disassembly, and hauling options needed to meet the requirements of 20 this chapter; 21 (iii) Current market conditions and the need to create 22 responsible and economically viable end markets in the state, 23 regionally, and globally; 24 (iv) Existing state statutory provisions and funding sources 25 related to market development and financial incentives to help 26 achieve the state's goals related to repair, reuse, recycling, 27 collection, sorting, disassembly, and hauling; 28 (v) Consumer education needs and the methods by which the 29 producer responsibility organization can best reach customers with 30 educational messaging; 31 (vi) Consumer behaviors to drive repair, reuse, and recycling and 32 to achieve the requirements of this chapter; 33 (vii) Funding needs and incentive mechanisms necessary to achieve 34 the requirements of this chapter, including coverage of the operation 35 of the stewardship program; 36 (viii) Fee reduction or redistribution mechanism necessary to 37 achieve the requirements of this chapter, in a manner that equitably 38 distributes the costs among participating producers that reflects 39 production and sales volumes relevant to the Washington market. Fee 40 p. 11 HB 1420 reduction or redistribution mechanisms may consider existing producer 1 collection, repair, reuse, and recycling programs that help achieve 2 the purpose of this chapter; 3 (ix) Actions and investments necessary to provide sufficient 4 access to collection, recycling, composting, processing, and 5 transportation to responsible and economically viable end markets;6 (x) An assessment of the availability of existing nonprofit 7 organizations that repair and upcycle covered products;8 (xi) An evaluation of the availability or lack of availability of 9 responsible markets for recycled covered products, the need to 10 incentivize reused products or recycled material market development, 11 and the associated investments or actions needed to ensure that the 12 covered products are reused or recycled and have responsible and 13 economically viable and sufficient end markets; 14 (xii) The needs assessment must include an evaluation of the 15 factors contributing to the presence of perfluoroalkyl and 16 polyfluoroalkyl chemicals and other chemicals identified or regulated 17 under chapters 70A.350 and 70A.430 RCW, and the actions and 18 investments needed to avoid contamination related to recycling. This 19 must include available end markets for recycled material that cannot 20 be remanufactured into textiles or textile articles in Washington; 21 and 22 (xiii) Evaluate what factors will be important to successfully 23 implement the eco-modulated fee structure required by section 10 of 24 this act, and what associated data collection will be necessary as 25 part of the plan. 26 (3) The department must guide development of each needs 27 assessment. A producer responsibility organization must develop the 28 needs assessment in consultation with a broad diversity of local 29 jurisdictions, federally recognized Indian tribes, recycling service 30 providers, and processors that reflect the different needs and 31 challenges presented by managing different covered products through 32 final disposition. 33 NEW SECTION. Sec. 6. (1) Plans must be submitted, reviewed, and 34 approved consistent with section 7 of this act.35 (2) Plans for covered products must be designed to accept and 36 manage all postconsumer covered products and must include all of the 37 following: 38 p. 12 HB 1420 (a) The names and contact information, including email address, 1 phone number, and mailing and physical addresses, of producers and 2 brands of covered products under the plan; 3 (b)(i) A description of the method to establish and administer a 4 means for fully funding the producer responsibility organization, 5 consistent with section 10 of this act, including a proposed five-6 year budget; 7 (c) Quantifiable five-year and annual performance standards and 8 metrics unless or until the department publishes performance 9 standards under section 8 of this act. The producer responsibility 10 organization must amend its plan to meet or exceed the performance 11 standards published by the department; 12 (d) A description of how the producer responsibility organization 13 will provide for a free and convenient drop-off or collection system 14 for covered products consistent with section 9 of this act;15 (e) A description of how the collection sites will be authorized 16 and managed, including: 17 (i) How local jurisdictions and federally recognized Indian 18 tribes can request to be a collection site under section 10 of this 19 act; 20 (ii) How the producer responsibility organization will provide to 21 collection sites at no cost the appropriate containers for covered 22 products, training, signage, safety guidance, and educational 23 materials; 24 (iii) The process by which the producer responsibility 25 organization will provide for the transport of covered products at no 26 cost from collection sites to an authorized sorter, or directly to an 27 authorized repair business, nonprofit organization, or recycling 28 facility; 29 (iv) How collection sites will be allowed to divert covered 30 products to secondhand markets for reuse; 31 (v) A list of all proposed rules, conditions, and requirements 32 for authorized collectors, authorized sorters, and authorized repair 33 businesses, including a template proposed agreement for each of those 34 types of entities, as applicable; 35 (vi) How the producer responsibility organization will prioritize 36 the use of secondhand markets and nonprofit retail resellers of 37 covered products, when establishing collection sites to meet the 38 minimum requirements in section 9 (2) of this act; and39 p. 13 HB 1420 (vii) How collection sites will be instructed to identify and 1 reject counterfeit covered products. 2 (f) A description of how covered products will be sorted, 3 transported, processed, reused, and recycled following collection at 4 collection sites, consistent with section 9 of this act;5 (g) A description of the comprehensive statewide education and 6 outreach program designed to educate consumers and promote 7 participation in the program offered by the producer responsibility 8 organization, consistent with section 11 of this act. This 9 description must include a description of the strategies, goals, and 10 metric the producer responsibility organization will use to annually 11 assess and evaluate the efficacy of the comprehensive statewide 12 education and outreach program required by section 11 of this act;13 (h) A description of how the producer responsibility organization 14 will coordinate with other producer responsibility organizations to 15 avoid confusion to the public regarding program activities including, 16 but not limited to, education and outreach, including establishing 17 point-of-sale messaging, a joint website, and toll-free telephone 18 number for purposes of providing information on the program;19 (i) Coordination with and compensation for, and description of 20 the efforts and methods used to coordinate activities with and 21 compensate for, entities who are responsive to a request from the 22 producer responsibility organization, including other producer 23 responsibility organizations, existing collection, reuse, and 24 recycling programs, and community-based organizations, including 25 nonprofit retail establishments that sell reused and repaired covered 26 products, and that contact the producer responsibility organization 27 and are qualified to run or support collection events;28 (j) A description of how the plan will address the presence of 29 perfluoroalkyl and polyfluoroalkyl chemicals and other chemicals 30 identified or regulated under chapters 70A.350 and 70A.430 RCW, 31 including but not limited to the actions and investments needed to 32 avoid contamination in the recycling process and available end 33 markets for recycled material that cannot be remanufactured into 34 textiles or textile articles in Washington; 35 (k) A description of how the producer responsibility organization 36 will minimize the negative environmental and human health impacts of 37 all operations associated with the plan, including impacts from 38 collected covered products exported outside of Washington; and39 p. 14 HB 1420 (l) A process by which the financial activities of the producer 1 responsibility organization or individual producers that are related 2 to implementation of the plan will be subject to an independent audit 3 consistent with generally accepted accounting principles.4 (3) Under the plan, a producer responsibility organization must:5 (a) Develop a program to support laundries for laundering covered 6 products that includes funding for technology that reduces water 7 consumption and improves microfiber and microplastic filtration; and8 (b) Develop strategies to address design challenges for covered 9 products including, but not limited to, compostability, reduction and 10 removal of harmful chemicals, microfiber and microplastic shedding, 11 and mixed material blends. 12 (4) Plans approved by the department are public records for 13 purposes of chapter 42.56 RCW, except that financial or sales data 14 reported to the department is not a public record consistent with RCW 15 42.56.270, and is not subject to inspection or copying under chapter 16 42.56 RCW . 17 (5)(a) The plan submitted under this section must be accompanied 18 by a contingency plan demonstrating how the activities in the plan 19 will continue to be carried out by some other entity, if needed, such 20 as a trustee: 21 (i) Until such time as a new plan is submitted and approved by 22 the department; 23 (ii) Upon the expiration of an approved plan; 24 (iii) If the producer responsibility organization notifies the 25 department that it will cease to implement an approved plan; or26 (iv) In any other event that the producer responsibility 27 organization can no longer carry out plan implementation.28 (b) The contingency plan must guarantee that the contracts, 29 financial data, and other necessary authority and assets to operate 30 the program will vest in a trustee or other entity approved by the 31 department. The trustee must operate the most recently approved plan, 32 subject to the direction of the department, until such time as a new 33 plan is approved. Upon plan expiration or revocation of the plan, the 34 balance of the producer responsibility organization's operating 35 reserves must be transferred to the control of the trustee within 36 five calendar days. All documents, digital records, contracts, and 37 files related to the operation of the plan must be transferred to the 38 control of the trustee within five calendar days. 39 p. 15 HB 1420 NEW SECTION. Sec. 7. (1)(a) By January 1, 2029, a producer 1 responsibility organization must develop and submit to the department 2 a complete plan, in a form and manner determined by the department, 3 in accordance with the requirements of this chapter, for the 4 collection, transportation, repair, sorting, recycling, and the safe 5 and proper management of covered products in Washington.6 (b)(i) The department must review each submitted plan for 7 compliance with this chapter and must approve, disapprove, or 8 conditionally approve the plan within 120 days of receipt.9 (ii) If the department disapproves of a plan submitted by a 10 producer responsibility organization, the department must explain how 11 the plan does not comply with this chapter and provide written notice 12 to the producer responsibility organization within 60 days of 13 disapproval. The producer responsibility organization may resubmit to 14 the department a revised plan within 30 days of the date the written 15 notice was issued, and the department must review the revised plan 16 within 60 days of resubmittal. 17 (iii) If the department disapproves a revised plan submitted by a 18 producer responsibility organization, the department must explain how 19 the plan does not comply with this chapter and provide written notice 20 to the producer responsibility organization within 60 days of 21 disapproval. The producer responsibility organization must then 22 revise and resubmit the plan consistent with the department's 23 direction within 30 days. A producer responsibility organization that 24 does not revise and resubmit the plan within 30 days consistent with 25 the department's direction is ineligible to submit further revisions 26 and is not in compliance with the requirements of this chapter, and 27 member producers are subject to penalties under this chapter.28 (2) A producer responsibility organization comprised of more than 29 one member producer may not limit its plan for covered products to 30 the covered products of the producer participating in that plan.31 (3)(a) By January 1, 2031, a producer responsibility organization 32 must have a complete plan approved by the department and each 33 producer must be subject to an approved plan in order to be in 34 compliance with this chapter. 35 (b) By April 1, 2031, each producer responsibility organization 36 must begin to implement its approved plan. By January 1, 2032, the 37 producer responsibility organization must fully implement its 38 approved plan. 39 p. 16 HB 1420 (c) A producer responsibility organization with an approved plan 1 must submit any proposed substantial change to the plan to the 2 department for approval following the process in subsection (1) of 3 this section. 4 (4)(a) A producer responsibility organization must review its 5 plan at least every five years after approved by the department and 6 determine whether revisions are necessary. 7 (b) If a producer responsibility organization determines that 8 revisions to the plan are necessary, the producer responsibility 9 organization must submit to the department a revised plan for review 10 and approval consistent with subsections (1) through (3) of this 11 section. The producer responsibility organization must submit the 12 revised plan to the department under this subsection at least 12 13 months prior to the review deadline identified in (a) of this 14 subsection. The revised plan must include a cover letter that 15 summarizes revisions to the plan within 90 days of the review 16 deadline outlined under this subsection. 17 (c) If a producer responsibility organization determines that 18 revisions to the plan are not necessary, the producer responsibility 19 organization must send a letter to the department 12 months prior to 20 the review deadline in (a) of this subsection, explaining that the 21 producer responsibility organization has reviewed the plan and 22 determined that revisions are not needed. The department may 23 disapprove of the producer responsibility organization's 24 determination within 30 days of receipt if the department concludes 25 that the producer responsibility organization cannot implement the 26 requirements of this chapter without revising the plan. If the 27 department disapproves the producer responsibility organization's 28 determination, the producer responsibility organization must submit 29 to the department a revised plan for review and approval consistent 30 with subsections (1) through (3) of this section. The producer 31 responsibility organization must submit the revised plan under this 32 subsection within 60 days of receipt of the department's disapproval, 33 unless the department determines that additional time is needed.34 NEW SECTION. Sec. 8. (1)(a) A producer of a covered product 35 introduced for use in this state must achieve the quantifiable five-36 year and annual performance standards and metrics performance 37 standards established in its plan.38 p. 17 HB 1420 (b) After March 1, 2033, a producer of a covered product 1 introduced for use in this state must achieve the performance 2 standards adopted by the department under subsection (2) of this 3 section. 4 (2) After March 1, 2033, the department may establish, review, 5 and adjust performance standards and the dates by which they are 6 required to be achieved based on information included in plans and 7 annual reports, other information provided by producer responsibility 8 organizations, department waste characterization studies, needs 9 assessments, and economic and any other relevant information, as 10 determined by the department. 11 NEW SECTION. Sec. 9. (1)(a) A producer responsibility 12 organization must approve collection sites under its program that 13 agree to comply with all applicable state, federal, or municipal 14 laws, regulations, and rules and conditions adopted by the producer 15 responsibility organization. 16 (b) A producer responsibility organization must include as a 17 collection site under its program any local jurisdiction or federally 18 recognized Indian tribe that offers in writing to participate in the 19 program and agrees to comply with any producer responsibility 20 organization requirements that are consistent with its approved plan, 21 even if the minimum thresholds described in subsection (2) of this 22 section have been achieved. A producer responsibility organization 23 must include the local jurisdiction or federally recognized Indian 24 tribe as a collection site in the program within 90 days of receiving 25 the written offer to participate. The producer responsibility 26 organization is not required to respond to offers to participate 27 until a plan has been approved by the department. 28 (c) A producer responsibility organization may suspend or 29 terminate a collection site that does not comply with all applicable 30 state, federal, or municipal laws and regulations or adhere to the 31 rules and conditions imposed by the producer responsibility 32 organization. 33 (d) A collection site must be operated and managed to ensure that 34 covered products are collected safely and handled in accordance with 35 all applicable state, federal, and municipal laws and regulations and 36 the rules and conditions of the plan. A producer responsibility 37 organization must allow authorized collectors and authorized sorters 38 to divert reusable covered products for sale in secondhand markets, 39 p. 18 HB 1420 in a manner consistent with rules established by the producer 1 responsibility organization in an approved plan. 2 (e) A producer responsibility organization must require all 3 contractors to pay at least the Washington minimum wage.4 (2) A producer responsibility organization must provide for a 5 free and convenient drop-off or collection system for covered 6 products that may include temporary collection sites and mail-back 7 options, and that must include permanent collection sites in each 8 county that: 9 (a) Provides for a minimum of 10 permanent collection sites or 10 one permanent collection site per 25,000 people, whichever is 11 greater, except that: 12 (i) A county with a population of 18,000 and under, as reported 13 annually by the office of financial management, must have a minimum 14 of three collection locations; 15 (ii) A county with a population of between 18,001 and 50,000, 16 inclusive, as reported annually by the office of financial 17 management, must have a minimum of four collection locations; and18 (iii) A county with a population of between 50,001 and 100,000, 19 inclusive, as reported annually by the office of financial 20 management, must have a minimum of eight collection locations;21 (b) Provides for a reasonable geographic spread of permanent 22 collection sites, as justified by a description in the plan.23 (3) Following collection at a collection site, covered products 24 must: 25 (a) Be handled and managed consistent with the waste management 26 hierarchy established in RCW 70A.205.005(8), including prioritization 27 of reuse, including repair, of collected covered products;28 (b) Include incentive payments, grants, and market development 29 investments to encourage reuse over recycling and other methods and 30 to support the infrastructure necessary to implement the plan, which 31 must include incentive payments, grants, and market development 32 investments that prioritize infrastructure closer to the point of 33 generation under (e) of this subsection and ensure that covered 34 products are reused or recycled and have responsible and economically 35 viable end markets; 36 (c) Be sorted by authorized sorters and the flow of covered 37 products to and from authorized collectors, authorized sorters, 38 authorized repair businesses, and recyclers must be tracked through 39 final disposition; 40 p. 19 HB 1420 (d) Be managed by the producer responsibility organization to 1 maximize the reuse and recycling of all covered products, and to 2 minimize disposal of covered products collected by the producer 3 responsibility organization; and 4 (e) Be managed by the producer responsibility organization in a 5 manner that prioritizes, to the extent feasible, the use and 6 development of sorting, repair, and recycling facilities located 7 closer to the point of collection to minimize transportation-related 8 emissions and increase accountability for the ultimate disposition of 9 covered products. 10 (4) The producer responsibility organization must conduct an 11 annual assessment, using metrics described in its plan, to determine 12 how collection, sorting, and transportation outcomes aligned with 13 projections. 14 (5) Products designed by use for infants and children under 12 15 years of age with components that pose a risk of detachment, thus 16 creating choking hazards, or containing components subject to 16 17 C.F.R. Part 1303 and 1307, including, but not limited to, metallic, 18 vinyl, or plastic snaps, zippers, grommets, closures, or appliques, 19 may be excluded from the reuse and repair under subsection (3)(a) of 20 this section by a producer responsibility organization.21 (6) Nothing in this chapter limits the authority of the utilities 22 and transportation commission to regulate collection of solid waste, 23 including curbside collection of residential recyclable materials, in 24 accordance with chapter 81.77 RCW . 25 NEW SECTION. Sec. 10. (1) Each producer responsibility 26 organization must pay all administrative and operational costs 27 associated with establishing and implementing the program including, 28 but not limited to, the cost of collection, transportation, sorting, 29 repairing, recycling, and the safe and proper management of covered 30 products. 31 (2)(a) A producer responsibility organization must establish a 32 method for fully funding the producer responsibility organization in 33 a manner that distributes the program's costs among participating 34 producers. Upon plan approval, the funding mechanism approved in the 35 plan must reflect: 36 (i) Sales volumes; and 37 (ii) A per-unit eco-modulated fee that reflects Washington sales 38 volume, existing producer collection, repair, reuse, and recycling 39 p. 20 HB 1420 programs that help achieve the purposes of this chapter, and the cost 1 of reusing, repairing, recycling, or otherwise managing covered 2 products under this chapter. The intent of the eco-modulated fee is 3 to incentivize design choices that facilitate the achievement of 4 goals outlined in the plan, including reuse, repair, and recycling 5 through reduced fees, while using malus fees to disincentivize 6 practices and materials incongruent with the plan. The producer 7 responsibility organization must consider existing producer 8 collection, repair, reuse, and recycling programs in developing the 9 eco-modulated fee structure. 10 (b) The funding mechanism must demonstrate adequate funding for 11 all administrative and operational costs of the program, to be borne 12 by participating producers, and must distribute participating 13 producers costs in consideration of the cost of managing their 14 specific covered products under the approved plan.15 (3)(a) A producer responsibility organization must propose in its 16 plan a five-year budget that establishes a funding level sufficient 17 to operate the producer responsibility organization in a prudent and 18 responsible manner. The budget must demonstrate how estimated 19 revenues will cover all budgeted costs for each cost category, and 20 the plan must describe the types of activities related to each line 21 item cost category. 22 (b) Budgeted costs categories must include, but are not limited 23 to: 24 (i) Administrative costs, which include the department's actual 25 and reasonable regulatory costs, which include full personnel costs 26 to implement and enforce this chapter and actual regulatory 27 development costs and other startup costs incurred prior to plan 28 submittal and approval; 29 (ii) Education and outreach costs; 30 (iii) Operational costs; 31 (iv) Capital costs; and 32 (v) A reserve to operate the producer responsibility organization 33 should there be unexpected events, such as losses of income, and 34 large unbudgeted expenses in order to protect the recycling 35 infrastructure the producer responsibility organization relies upon 36 in its plan, during any lapse in producer participating during the 37 life of the program. This cost category must include a reserve level 38 amount that is justified by a description in the plan. The producer 39 responsibility organization must maintain reserve funds sufficient to 40 p. 21 HB 1420 operate the plan for no less than six months. If a new plan submitted 1 by a producer responsibility organization is approved by the 2 department, the producer responsibility organization must establish 3 its reserve and maintain the required reserve fund balance by the end 4 of the second year of plan operation. 5 (4) Retailers, producers, or producer responsibility 6 organizations may not charge a specific point-of-sale fee to 7 consumers to cover the administrative or operational costs of the 8 producer responsibility organization or the program.9 NEW SECTION. Sec. 11. (1) A producer responsibility 10 organization must develop and implement a comprehensive statewide 11 education and outreach program that, at minimum, includes:12 (a) An education and communications strategy to effectively 13 promote participation in the program and provide the information 14 necessary for effective participation by consumers, retailers, 15 distributors, wholesalers, local jurisdictions, federally recognized 16 Indian tribes, and others; 17 (b) A joint internet website, in coordination with all other 18 producer responsibility organizations registered with the department, 19 that publicizes the location of collection sites and provides 20 information to consumers on how to drop off covered products at the 21 free and convenient network of collection sites offered by the 22 producer responsibility organization, including any information 23 reasonably necessary to safely and conveniently access the 24 collection, repair, and recycling services offered by the producer 25 responsibility organization; 26 (c) Signage that is prominently displayed and easily visible;27 (d) Signage and materials that are required by the producer 28 responsibility organization for collection sites, and a method for 29 collection sites to access replacement materials at no cost to the 30 collection site; 31 (e) A strategy to support participation by all Washington 32 communities, including a strategy to communicate with consumers in 33 languages other than English; 34 (f) Promotional materials and activities, or both, that explain 35 the purpose of the producer responsibility organization and the means 36 by which the program is being carried out; 37 (g) A strategy to encourage users to separate products that are 38 not covered products from covered products, when appropriate, before 39 p. 22 HB 1420 submitting the covered products to an authorized collection site or 1 mail-back program; 2 (h) Materials designed to inform third-party sellers on online 3 platforms of their duty to comply with this chapter and how to join 4 the producer responsibility organization; and 5 (i) Information for the public on secondhand markets and the 6 benefits of reuse, including repair. 7 (2) The statewide education and outreach program must:8 (a) Promote the safe and proper management of covered products, 9 including information on where customers can purchase repaired and 10 reused covered products. This must include education and training for 11 authorized collectors to incentivize domestic resale of usable 12 covered products; 13 (b) Not promote the disposal of covered products in a manner 14 inconsistent with the services offered by the plan; and15 (c) Include information for consumers about how to avoid improper 16 disposal of covered products. 17 NEW SECTION. Sec. 12. (1)(a) A producer responsibility 18 organization must keep board minutes books, and records that clearly 19 reflect the activities and transactions of the producer 20 responsibility organization.21 (b) A producer responsibility organization must include in its 22 plan a process by which the financial activities of the organization 23 or individual producers that are related to implementation of the 24 plan will be subject to an independent audit consistent with 25 generally accepted accounting principles. 26 (c) The failure of a producer responsibility organization or 27 producer, or their respective agent who holds records, to produce 28 documents or data requested by the department, required to be 29 collected or generated to carry out operation of the plan in the form 30 and manner determined by the department, as part of a department 31 audit, or review of a third-party audit, constitutes a violation of 32 this chapter. 33 (d) A producer responsibility organization must retain an 34 independent public accountant, certified in the United States, to 35 annually audit the accounting books of the producer responsibility 36 organization. The department must review the independent certified 37 public accountant audit for compliance with this chapter and 38 consistency with the producer responsibility organization's plan and 39 p. 23 HB 1420 annual report. After the department conducts its own audit, the 1 department must notify the producer responsibility organization of 2 any conduct or practice that does not comply with this chapter or of 3 any inconsistencies identified in the audit. The producer 4 responsibility organization may obtain copies of the department's 5 audit, including proprietary information contained in the 6 department's audit, upon request and may petition the department to 7 withhold from disclosure confidential proprietary information under 8 chapter 42.56 RCW. The items submitted to the department as part of 9 the independent audit must include: 10 (i) Financial statements audited in accordance with generally 11 accepted accounting principles; 12 (ii) An audit of the producer responsibility organization's 13 compliance with this chapter; and 14 (iii) An audit of the producer responsibility organization's 15 adherence to, execution of, and consistency with its plan.16 (2) A producer responsibility organization must annually submit 17 to the department, in the form and manner and by the date determined 18 by the department, an annual report and make that report publicly 19 available on the producer responsibility organization's website. The 20 report must include, at minimum, all of the following information for 21 the preceding calendar year unless otherwise specified:22 (a) The independent audit required under subsection (1)(d) of 23 this section; 24 (b) The producer responsibility organization's costs, according 25 to the cost categories established in the plan, and revenues;26 (c) A summary of any anticipated changes to allocations in cost 27 categories for the next calendar year; 28 (d) Any changes to the distribution of a participating producer's 29 costs; 30 (e) The amounts of the eco-modulated fees based on the criteria 31 established under section 10 (2) of this act and the producer 32 responsibility organization's evaluation of the effectiveness of the 33 eco-modulated fees; 34 (f) An updated list of producers participating in the plan and an 35 updated list of the names and contact information, including email 36 address, telephone number, and physical and mailing addresses of 37 producer and brands of covered products covered under the plan;38 (g) A list of the producer responsibility organization's 39 collection sites by name, location, and type; 40 p. 24 HB 1420 (h)(i) The amount of covered products sold in or into the state 1 by the producers covered by the producer responsibility 2 organization's plan; 3 (ii) The amount described in (h)(i) of this subsection must be 4 broken down by fiber type category and harmonized tariff schedule of 5 the United States (HTS) number; 6 (i) The total weight of covered products, respectively, that were 7 collected, broken down by fiber type categories; 8 (j) The total weight of covered products, by category, that were 9 collected and deemed reusable by each respective authorized collector 10 and authorized sorter; 11 (k) A list of each authorized sorter, authorized repair business, 12 and covered product recycling facility used by the producer 13 responsibility organization, including name and location and the 14 total weight of covered products handled by each location;15 (l) The total weight and number of covered products sold in or 16 into the state attributed to a producer, who is a registered 17 participant of the producer responsibility organization's plan, which 18 are collected in the state and reused or recycled by the producer 19 responsibility organization, including a description of the 20 methodology and information used to determine and calculate these 21 values; 22 (m) A complete accounting of the ultimate disposition of all 23 covered products collected by the producer responsibility 24 organization, including the total weight of covered products that 25 were repaired or recycled; 26 (n) Metrics and a description of the progress towards attaining 27 the performance standards included in the plan; 28 (o) A description of the methods used to collect, transport, 29 repair, and recycle covered products by the producer responsibility 30 organization, including a description of: 31 (i) How the producer responsibility organization handled and 32 managed covered products according to the waste hierarchy in RCW 33 70A.205.005(8); 34 (ii) How the producer responsibility organization maximized reuse 35 and recycling of all covered products; 36 (iii) How the producer responsibility organization minimized 37 disposal of all covered products collected by the producer 38 responsibility organization; and 39 p. 25 HB 1420 (iv) Results of the producer responsibility organization's 1 assessment of the efficacy of the collection, sorting, and 2 transportation process; 3 (p) A description of how the producer responsibility organization 4 provided incentive payments, grants, and market development 5 investments to support the infrastructure necessary to effectively 6 implement the plan, including how incentive payments, grants, and 7 market development investments prioritized infrastructure closer to 8 the point of generation; 9 (q) A description of outreach efforts and education including, 10 but not limited to, the producer responsibility organization's 11 evaluation of the efficacy of the comprehensive statewide education 12 and outreach program in section 11 of this act; 13 (r) A description of how the producer responsibility organization 14 coordinated with producer responsibility organizations;15 (s) A report on activities the producer responsibility 16 organization has undertaken to prioritize the use of sorting and 17 recycling facilities located closer to the point of generation to 18 minimize transportation emissions and increase accountability for the 19 ultimate disposition of collected covered products;20 (t) An analysis of whether producer responsibility organization 21 met performance standards established by the producer responsibility 22 organization or by the department under section 8 of this act;23 (u) A description of how the producer responsibility organization 24 addressed the presence of perfluoroalkyl and polyfluoroalkyl 25 chemicals and other chemicals identified or regulated under chapters 26 70A.350 and 70A.430 RCW, including but not limited to the actions 27 taken and investments made to avoid contamination in the recycling 28 process, and the availability of end markets for recycled material 29 that could not be remanufactured into textiles or textile articles in 30 Washington; 31 (v) Any other information deemed relevant by the producer 32 responsibility organization for the department to determine 33 compliance with the approved plan; and 34 (w) Other information required by rules adopted by the 35 department. 36 (3)(a) No later than 120 days after the date the department 37 receives the annual report submitted by a producer responsibility 38 organization under subsection (2) of this section, the department 39 p. 26 HB 1420 must notify the producer responsibility organization if the annual 1 report is compliant or noncompliant. 2 (b) If the department determines that the annual report is 3 noncompliant due to failure to meet the requirements of this chapter, 4 the department may require the resubmittal of the annual report or 5 take enforcement action. 6 NEW SECTION. Sec. 13. (1)(a) The department must implement, 7 administer, and enforce this chapter. By December 31, 2027, the 8 department shall adopt rules as necessary to implement, administer, 9 and enforce this chapter.10 (b) To the extent feasible, registration, recordkeeping, 11 reporting, and other logistical requirements adopted by the 12 department under this chapter must be harmonized with similar 13 requirements applicable to producers in other jurisdictions.14 (c) The rules adopted by the department must encourage recycling 15 that minimizes generation of hazardous waste, generation of 16 greenhouse gases, environmental impacts, environmental justice 17 impacts, and public health impacts. 18 (2)(a) By October 1, 2026, the department must notify each 19 registered producer responsibility organization of its estimated 20 regulatory costs to implement the program, including full personnel 21 costs, related to implementing and enforcing this chapter and the 22 actual reasonable costs associated with adopting rules and other 23 startup activities prior to plan submittal and approval.24 (b) The producer responsibility organization must, on a schedule 25 determined by the department, pay the department fees to cover the 26 department's incurred costs. The fees must not exceed the 27 department's actual and reasonable regulatory costs to implement and 28 enforce this chapter. 29 (c) The department must deposit all moneys received from a 30 producer responsibility organization under this subsection in the 31 textile extended producer responsibility account created in section 32 17 of this act. 33 (3) The department may audit the producer responsibility 34 organization or an individual producer annually with respect to the 35 requirements of this chapter. 36 (4)(a) Within 12 months of the effective date of the rules 37 adopted under this chapter, and on or before July 1st of each year 38 thereafter, the department must post on its internet website a list 39 p. 27 HB 1420 of producers that are in compliance with this chapter. The department 1 must list, as appropriate, the reported brands of covered products 2 for each producer. 3 (b) A producer that is not listed on the department's internet 4 website under (a) of this subsection that demonstrates compliance 5 with this chapter before the next list is posted by the department 6 may either be added to the internet website or provided a 7 certification letter from the department stating that the producer of 8 a covered product is in compliance with this chapter. The 9 department's list of compliant entities must be available on the 10 department's website in a machine-readable format.11 (c) If the department determines that a producer is not in 12 compliance with this chapter, the department must remove the 13 producer, along with its brands and covered products, from the list 14 of compliant producers posted on the department's website. The 15 department must list on its internet website a producer, along with 16 its brands and covered products, if the department subsequently 17 determines that the producer is in compliance with this chapter.18 NEW SECTION. Sec. 14. (1)(a) The department may 19 administratively impose a civil penalty of up to $1,000 per violation 20 per day on any producer who violates this chapter and up to $10,000 21 per violation per day for the second and each subsequent violation.22 (b) For a producer out of compliance with the requirements of 23 this chapter, the department shall provide written notification and 24 offer information. For the purposes of this section, written 25 notification serves as notice of the violation. The department must 26 issue at least one notice of violation by certified mail prior to 27 assessing a penalty and the department may only impose a penalty on a 28 producer that has not met the requirements of this chapter 60 days 29 following the date the written notification of the violation was 30 sent. 31 (2)(a) The department may administratively impose a civil penalty 32 of up to $10,000 per violation per day on any producer responsibility 33 organization that violates this chapter and up to $50,000 per 34 violation per day for the second and each subsequent violation.35 (b) The department may, in addition to assessing the penalties 36 provided in (a) of this subsection, take any combination of the 37 following actions: 38 p. 28 HB 1420 (i) Issue a corrective action order to a producer responsibility 1 organization; 2 (ii) Issue an order to a producer responsibility organization to 3 provide for the continued implementation of the program in the 4 absence of an approved plan; 5 (iii) Revoke the producer responsibility organization's plan 6 approval and require implementation of the contingency plan; or7 (iv) Require a producer responsibility organization to revise or 8 resubmit a plan within a specified time frame. 9 (c) Prior to taking an action described in this subsection, the 10 department must provide the producer responsibility organization an 11 opportunity to respond to or rebut the written finding upon which the 12 action is predicated. 13 (3)(a) The department may require a producer, producer 14 responsibility organization, manufacturer, distributor, retailer, or 15 importer to: 16 (i) Provide the department with reasonable and timely access, as 17 determined by the department, to its facilities and operations, as 18 necessary to determine compliance with this chapter; or19 (ii) Require additional reporting to determine compliance with 20 this chapter. 21 (b) Records required by this chapter must be maintained and 22 accessible for five years. All reports and records provided to the 23 department under this chapter must be provided under penalty of 24 perjury. 25 (4) A person may not sell or distribute in or into the state a 26 covered product of a producer that is not participating in a producer 27 responsibility organization or that is not in compliance with the 28 requirements of this chapter or rules adopted under this chapter.29 (a) The department shall serve, or send with delivery 30 confirmation, a written warning explaining the violation to a person 31 distributing or selling covered products of a producer that is not in 32 compliance with this chapter. 33 (b) The department may assess a penalty on a person that 34 continues to sell or distribute covered products of a producer that 35 is in violation of this chapter 60 days after receipt of the written 36 warning under this subsection. The amount of the penalty that the 37 department may assess under this subsection is twice the value of the 38 covered products sold in violation of this chapter or $500, whichever 39 is greater. The department must waive the penalty upon verification 40 p. 29 HB 1420 that the person has discontinued distribution or sales of the covered 1 product within 30 days of the date the penalty is assessed.2 (5) Any person who incurs a penalty or receives an order may 3 appeal the penalty or order to the pollution control hearings board 4 created in chapter 43.21B RCW . 5 (6) Penalties levied under this section must be deposited in the 6 model toxics control operating account created in RCW 70A.305.180.7 NEW SECTION. Sec. 15. (1) Retailers, importers, distributors, 8 and online marketplaces for covered products must monitor the 9 department's internet website where compliant producers are posted 10 under section 13 (4) of this act, to determine if a producer, brand, 11 or covered product is in compliance with this chapter for that 12 producer of covered products.13 (2)(a) Except as provided in (b) of this subsection, on and after 14 the date a plan is approved by the department, a retailer, importer, 15 distributor, or online marketplace is prohibited from introducing a 16 covered product for use in the state unless the producer of the 17 covered product is listed as in compliance for that brand and covered 18 product. 19 (b) A retailer, importer, distributor, or online marketplace may 20 introduce a covered product: 21 (i) If the retailer, importer, distributor, or online marketplace 22 has fulfilled the obligations for those covered products which the 23 retailer, importer, distributor, or online marketplace sells, offers 24 for sale, imports, or distributes; 25 (ii) If, on the date the retailer or distributor sells or offers 26 for sale the covered product in or into the state, the producer, 27 brand, or covered product was listed as compliant on the department's 28 internet website; and 29 (iii) Any existing stock of a retailer or distributor before the 30 initial list was posted by the department on the department's 31 internet website. 32 (3) An online marketplace must annually do the following 33 consistent with rules adopted by the department: 34 (a) Notify the department and the producer responsibility 35 organization of all third-party sellers with sales of covered 36 products over $1,000,000 sold on their online marketplace in the 37 preceding year and provide all required information. If a third-party 38 seller does not have any sales in Washington during the preceding 39 p. 30 HB 1420 year, then the online marketplace must not provide their information 1 to the department. The amount of the sales described in this 2 subsection includes only those transactions through the online 3 marketplace for which payment is processed by the online marketplace 4 directly or through its payment processor; 5 (b) Provide all third-party sellers described in (a) of this 6 subsection with the information requirements of law as provided by 7 the producer responsibility organization consistent with the 8 requirements of section 11 of this act. 9 NEW SECTION. Sec. 16. A producer responsibility organization 10 may not use funds collected for purposes of implementing a plan 11 required under this chapter associated with:12 (1) The payment of an administrative penalty levied;13 (2) Administrative appeals of orders or penalties;14 (3) Litigation between the refrigerant stewardship organization 15 and the state; 16 (4) Compensation of a person whose position is primarily 17 representing the refrigerant stewardship organization relative to the 18 passage, defeat, approval, or modification of legislation that is 19 being considered by a governmental entity; or 20 (5) Paid advertisements related to encouraging the passage, 21 defeat, approval, or modification of legislation that is being 22 considered during an upcoming or current legislative session or was 23 considered during the previous legislative session.24 NEW SECTION. Sec. 17. The textile extended producer 25 responsibility account is created in the custody of the state 26 treasurer. All receipts received by the department under this chapter 27 must be deposited in the account. Only the director of the department 28 or the director's designee may authorize expenditures from the 29 account. The account is subject to the allotment procedures under 30 chapter 43.88 RCW, but an appropriation is not required for 31 expenditures. Expenditures from the account may be used by the 32 department only for implementing, administering, and enforcing the 33 requirements of this chapter.34 Sec. 18. RCW 43.21B.110 and 2024 c 347 s 5, 2024 c 340 s 4, and 35 2024 c 339 s 16 are each reenacted and amended to read as follows:36 p. 31 HB 1420 (1) The hearings board shall only have jurisdiction to hear and 1 decide appeals from the following decisions of the department, the 2 director, local conservation districts, the air pollution control 3 boards or authorities as established pursuant to chapter 70A.15 RCW, 4 local health departments, the department of natural resources, the 5 department of fish and wildlife, the parks and recreation commission, 6 and authorized public entities described in chapter 79.100 RCW :7 (a) Civil penalties imposed pursuant to chapter 70A.230 RCW and 8 RCW 18.104.155, 70A.15.3160, 70A.300.090, 70A.20.050, 70A.230.020, 9 70A.205.280, 70A.355.070, 70A.430.070, 70A.500.260, 70A.505.100, 10 70A.505.110, 70A.530.040, 70A.350.070, 70A.515.060, 70A.245.040, 11 70A.245.050, 70A.245.070, 70A.245.080, 70A.245.130, 70A.245.140, 12 70A.65.200, 70A.455.090, 70A.550.030, 70A.555.110, 70A.560.020, 13 70A.565.030, section 14 of this act, 76.09.170, 77.55.440, 78.44.250, 14 88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 90.56.330, and 15 90.64.102. 16 (b) Orders issued pursuant to RCW 18.104.043, 18.104.060, 17 18.104.130, 43.27A.190, 70A.15.2520, 70A.15.3010, 70A.15.4530, 18 70A.15.6010, 70A.205.280, 70A.214.140, 70A.300.120, 70A.350.070, 19 70A.245.020, 70A.65.200, 70A.505.100, 70A.555.110, 70A.560.020, 20 70A.565.030, section 14 of this act, 86.16.020, 88.46.070, 90.03.665, 21 90.14.130, 90.46.250, 90.48.120, 90.48.240, 90.56.330, and 90.64.040.22 (c) Except as provided in RCW 90.03.210(2), the issuance, 23 modification, or termination of any permit, certificate, or license 24 by the department or any air authority in the exercise of its 25 jurisdiction, including the issuance or termination of a waste 26 disposal permit, the denial of an application for a waste disposal 27 permit, the modification of the conditions or the terms of a waste 28 disposal permit, a decision to approve or deny a solid waste 29 management plan under RCW 70A.205.055, approval or denial of an 30 application for a beneficial use determination under RCW 70A.205.260, 31 an application for a change under RCW 90.03.383, or a permit to 32 distribute reclaimed water under RCW 90.46.220. 33 (d) Decisions of local health departments regarding the granting 34 or denial of solid waste permits pursuant to chapter 70A.205 RCW, 35 including appeals by the department as provided in RCW 70A.205.130.36 (e) Decisions of local health departments regarding the issuance 37 and enforcement of permits to use or dispose of biosolids under RCW 38 70A.226.090. 39 p. 32 HB 1420 (f) Decisions of the department regarding waste-derived 1 fertilizer or micronutrient fertilizer under RCW 15.54.820.2 (g) Decisions of local conservation districts related to the 3 denial of approval or denial of certification of a dairy nutrient 4 management plan; conditions contained in a plan; application of any 5 dairy nutrient management practices, standards, methods, and 6 technologies to a particular dairy farm; and failure to adhere to the 7 plan review and approval timelines in RCW 90.64.026 as provided in 8 RCW 90.64.028. 9 (h) Any other decision by the department or an air authority 10 which pursuant to law must be decided as an adjudicative proceeding 11 under chapter 34.05 RCW . 12 (i) Decisions of the department of natural resources, the 13 department of fish and wildlife, and the department that are 14 reviewable under chapter 76.09 RCW, and the department of natural 15 resources' appeals of county, city, or town objections under RCW 16 76.09.050(7). 17 (j) Forest health hazard orders issued by the commissioner of 18 public lands under RCW 76.06.180. 19 (k) Decisions of the department of fish and wildlife to issue, 20 deny, condition, or modify a hydraulic project approval permit under 21 chapter 77.55 RCW, to issue a stop work order, to issue a notice to 22 comply, to issue a civil penalty, or to issue a notice of intent to 23 disapprove applications. 24 (l) Decisions of the department of natural resources that are 25 reviewable under RCW 78.44.270. 26 (m) Decisions of an authorized public entity under RCW 79.100.010 27 to take temporary possession or custody of a vessel or to contest the 28 amount of reimbursement owed that are reviewable by the hearings 29 board under RCW 79.100.120. 30 (n) Decisions of the department of ecology that are appealable 31 under RCW 70A.245.020 to set recycled minimum postconsumer content 32 for covered products or to temporarily exclude types of covered 33 products in plastic containers from minimum postconsumer recycled 34 content requirements. 35 (o) Orders by the department of ecology under RCW 70A.455.080.36 (2) The following hearings shall not be conducted by the hearings 37 board: 38 (a) Hearings required by law to be conducted by the shorelines 39 hearings board pursuant to chapter 90.58 RCW, except where appeals to 40 p. 33 HB 1420 the pollution control hearings board and appeals to the shorelines 1 hearings board have been consolidated pursuant to RCW 43.21B.340.2 (b) Hearings conducted by the department pursuant to RCW 3 70A.15.3010, 70A.15.3070, 70A.15.3080, 70A.15.3090, 70A.15.3100, 4 70A.15.3110, and 90.44.180. 5 (c) Appeals of decisions by the department under RCW 90.03.110 6 and 90.44.220. 7 (d) Hearings conducted by the department to adopt, modify, or 8 repeal rules. 9 (3) Review of rules and regulations adopted by the hearings board 10 shall be subject to review in accordance with the provisions of the 11 administrative procedure act, chapter 34.05 RCW . 12 Sec. 19. RCW 43.21B.300 and 2024 c 347 s 6 and 2024 c 340 s 5 13 are each reenacted and amended to read as follows:14 (1) Any civil penalty provided in RCW 18.104.155, 70A.15.3160, 15 70A.205.280, 70A.230.080, 70A.300.090, 70A.20.050, 70A.245.040, 16 70A.245.050, 70A.245.070, 70A.245.080, 70A.245.130, 70A.245.140, 17 70A.65.200, 70A.430.070, 70A.455.090, 70A.500.260, 70A.505.110, 18 70A.555.110, 70A.560.020, 70A.565.030, section 14 of this act, 19 86.16.081, 88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 20 90.56.330, and 90.64.102 and chapter 70A.355 RCW shall be imposed by 21 a notice in writing, either by certified mail with return receipt 22 requested or by personal service, to the person incurring the penalty 23 from the department or the local air authority, describing the 24 violation with reasonable particularity. For penalties issued by 25 local air authorities, within 30 days after the notice is received, 26 the person incurring the penalty may apply in writing to the 27 authority for the remission or mitigation of the penalty. Upon 28 receipt of the application, the authority may remit or mitigate the 29 penalty upon whatever terms the authority in its discretion deems 30 proper. The authority may ascertain the facts regarding all such 31 applications in such reasonable manner and under such rules as it may 32 deem proper and shall remit or mitigate the penalty only upon a 33 demonstration of extraordinary circumstances such as the presence of 34 information or factors not considered in setting the original 35 penalty. 36 (2) Any penalty imposed under this section may be appealed to the 37 pollution control hearings board in accordance with this chapter if 38 the appeal is filed with the hearings board and served on the 39 p. 34 HB 1420 department or authority 30 days after the date of receipt by the 1 person penalized of the notice imposing the penalty or 30 days after 2 the date of receipt of the notice of disposition by a local air 3 authority of the application for relief from penalty.4 (3) A penalty shall become due and payable on the later of:5 (a) 30 days after receipt of the notice imposing the penalty;6 (b) 30 days after receipt of the notice of disposition by a local 7 air authority on application for relief from penalty, if such an 8 application is made; or 9 (c) 30 days after receipt of the notice of decision of the 10 hearings board if the penalty is appealed. 11 (4) If the amount of any penalty is not paid to the department 12 within 30 days after it becomes due and payable, the attorney 13 general, upon request of the department, shall bring an action in the 14 name of the state of Washington in the superior court of Thurston 15 county, or of any county in which the violator does business, to 16 recover the penalty. If the amount of the penalty is not paid to the 17 authority within 30 days after it becomes due and payable, the 18 authority may bring an action to recover the penalty in the superior 19 court of the county of the authority's main office or of any county 20 in which the violator does business. In these actions, the procedures 21 and rules of evidence shall be the same as in an ordinary civil 22 action. 23 (5) All penalties recovered shall be paid into the state treasury 24 and credited to the general fund except the following:25 (a) Penalties imposed pursuant to RCW 18.104.155 must be credited 26 to the reclamation account as provided in RCW 18.104.155(7);27 (b) Penalties imposed pursuant to RCW 70A.15.3160 must be 28 disposed of pursuant to RCW 70A.15.3160; 29 (c) Penalties imposed pursuant to RCW 70A.230.080, 70A.300.090, 30 70A.430.070, 70A.555.110, 70A.560.020, and 70A.565.030 must be 31 credited to the model toxics control operating account created in RCW 32 70A.305.180; 33 (d) Penalties imposed pursuant to RCW 70A.245.040 and 70A.245.050 34 must be credited to the recycling enhancement account created in RCW 35 70A.245.100; 36 (e) Penalties imposed pursuant to RCW 70A.500.260 must be 37 deposited into the electronic products recycling account created in 38 RCW 70A.500.130; 39 p. 35 HB 1420 (f) Penalties imposed pursuant to RCW 70A.65.200 must be credited 1 to the climate investment account created in RCW 70A.65.250;2 (g) Penalties imposed pursuant to RCW 90.56.330 must be credited 3 to the coastal protection fund established in RCW 90.48.390; and4 (h) Penalties imposed pursuant to RCW 70A.355.070 must be 5 credited to the underground storage tank account created in RCW 6 70A.355.090. 7 NEW SECTION. Sec. 20. Sections 1 through 17 of this act 8 constitute a new chapter in Title 70A RCW.9 NEW SECTION. Sec. 21. If any provision of this act or its 10 application to any person or circumstance is held invalid, the 11 remainder of the act or the application of the provision to other 12 persons or circumstances is not affected.13 --- END --- p. 36 HB 1420