Stewardship program for batteries establishment, rulemaking authorization, and appropriation

1.1 A bill for an act​ 1.2 relating to solid waste; establishing stewardship program for batteries; authorizing​ 1.3 rulemaking; appropriating money; amending Minnesota Statutes 2022, sections​ 1.4 115A.1310, subdivision 12c; 325E.125, subdivision 2; proposing coding for new​ 1.5 law in Minnesota Statutes, chapter 115A; repealing Minnesota Statutes 2022,​ 1.6 sections 115A.9155; 115A.9157, subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 325E.125,​ 1.7 subdivisions 3, 4, 5.​ 1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​ 1.9 Section 1. Minnesota Statutes 2022, section 115A.1310, subdivision 12c, is amended to​ 1.10 read:​ 1.11 Subd. 12c. Portable battery. "Portable battery" means a rechargeable battery as defined​ 1.12 in section 115A.9157 115A.9165.​ 1.13 Sec. 2. [115A.9165] STEWARDSHIP PROGRAM FOR BATTERIES.​ 1.14 Subdivision 1. Definitions. (a) As used in this section, the terms in this subdivision have​ 1.15 the meanings given.​ 1.16 (b) "Battery" means a device that contains one or more voltaic or galvanic cells​ 1.17 electrically connected to produce electric energy, together with any structural members,​ 1.18 casing surrounding the cells, and electrical connectors.​ 1.19 (c) "Brand" means a trademark, including both a registered and an unregistered trademark;​ 1.20 a logo; a name; a symbol; a word; an identifier; or a traceable mark that identifies a covered​ 1.21 battery or covered product and identifies the owner or licensee of the brand as the producer​ 1.22 of the battery or product.​ 1.23 (d) "Chemical of high concern" has the meaning given in section 116.9401.​ 1​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ SENATE​ STATE OF MINNESOTA​ S.F. No. 4711​NINETY-THIRD SESSION​ (SENATE AUTHORS: MORRISON)​ OFFICIAL STATUS​D-PG​DATE​ Introduction and first reading​03/07/2024​ Referred to Environment, Climate, and Legacy​ 2.1 (e) "Collection site" means a physical location where a collector collects covered batteries​ 2.2 or covered products from members of the public and businesses. Collection site includes a​ 2.3 location regardless of whether it is operated permanently, temporarily, or for purposes of a​ 2.4 collection event.​ 2.5 (f) "Collector" means a person that collects covered batteries or covered products on​ 2.6 behalf of an operator.​ 2.7 (g) "Covered battery":​ 2.8 (1) means:​ 2.9 (i) a primary lithium battery of any size or energy content;​ 2.10 (ii) a rechargeable battery of any size or energy content; or​ 2.11 (iii) a primary battery designated by rule adopted under subdivision 14; and​ 2.12 (2) does not include:​ 2.13 (i) a rechargeable battery intended to provide motive power to a motor vehicle, as defined​ 2.14 in section 168.27;​ 2.15 (ii) a battery used for a medical device meeting the definition of a device under United​ 2.16 States Code, title 21, section 321, except for such a device marketed for use in a household,​ 2.17 as defined in section 115A.96; or​ 2.18 (iii) a battery in which the electrolyte is intended to be a free liquid.​ 2.19 (h) "Covered product" means a product with which a covered battery is packaged or in​ 2.20 which a covered battery is contained. Covered product includes both a product with a covered​ 2.21 battery that is intended for removal or replacement by the end user and a product with a​ 2.22 battery not intended for removal or replacement by the end user.​ 2.23 (i) "Critical material" means a nonfuel mineral, element, substance, or material determined​ 2.24 to be a critical material by the United States Department of Energy under United States​ 2.25 Code, title 30, section 1606.​ 2.26 (j) "Critical mineral" means a nonfuel mineral or mineral material designated by the​ 2.27 United States Department of the Interior under United States Code, title 30, section 1606.​ 2.28 (k) "Independent auditor" means an independent and actively licensed certified public​ 2.29 accountant that is:​ 2.30 (1) retained by an operator;​ 2.31 (2) not otherwise employed by or affiliated with the operator; and​ 2​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 3.1 (3) qualified to conduct the audit under subdivision 12, paragraph (b), clause (4).​ 3.2 (l) "Operator" means a producer or stewardship organization that implements and​ 3.3 administers a stewardship program.​ 3.4 (m) "Participant" means a producer that meets obligations under subdivisions 4 to 12​ 3.5 by acting as an operator or by contracting with a stewardship organization that meets the​ 3.6 producer's obligations on the producer's behalf.​ 3.7 (n) "Primary battery" means a battery that is not designed or intended to be recharged.​ 3.8 (o) "Primary lithium battery" means a primary battery that uses lithium metal or lithium​ 3.9 alloys as the anode.​ 3.10 (p) "Producer" means, with respect to a covered battery or covered product that is sold,​ 3.11 including online sales; offered for sale or promotional purposes; or distributed in the state:​ 3.12 (1) a person that manufactured the covered battery or covered product and sells, including​ 3.13 online sales; offers for sale; or distributes the covered battery or covered product under a​ 3.14 brand that the person owns or controls;​ 3.15 (2) if there is no person to which clause (1) applies, any other person that owns or controls​ 3.16 or is licensed to use a brand under which the covered battery or covered product is sold,​ 3.17 including online sales; offered for sale; or distributed in the state; or​ 3.18 (3) if there is no person in the United States to which clause (1) or (2) applies, any person​ 3.19 who imported or imports the covered battery or covered product into the United States to​ 3.20 sell, including online sales; offer for sale; or distribute.​ 3.21 (q) "Rechargeable battery" means a battery that is designed and intended to be recharged​ 3.22 and reused.​ 3.23 (r) "Stewardship organization" means a nonprofit organization as described in section​ 3.24 501(c)(3) of the Internal Revenue Code that is appointed by one or more producers to draft,​ 3.25 submit a plan for, implement, and administer a stewardship program under this section on​ 3.26 the producers' behalf.​ 3.27 (s) "Stewardship plan" means a plan meeting the requirements of subdivision 4 that is​ 3.28 submitted to the commissioner by an operator.​ 3.29 (t) "Stewardship program" means a system implemented by an operator that provides​ 3.30 and pays for collecting, sorting, transporting, processing, and recycling covered batteries​ 3.31 and covered products and disposing of residual materials under a stewardship plan approved​ 3.32 by the commissioner under subdivision 10.​ 3​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 4.1 Subd. 2. Requirements; disposal, recycling, and collection. (a) A person may not​ 4.2 place a covered battery or a covered product from which all covered batteries have not been​ 4.3 removed into:​ 4.4 (1) solid waste; or​ 4.5 (2) a recycling container that a collector does not intend to use for collecting covered​ 4.6 batteries or covered products.​ 4.7 (b) A covered battery or a covered product from which all covered batteries have not​ 4.8 been removed and that is discarded must be managed by delivering the covered battery or​ 4.9 covered product to a recycling facility for covered batteries or covered products or to a​ 4.10 collection site.​ 4.11 (c) Until recycled, covered batteries and covered products that have been delivered to​ 4.12 a recycling facility or collected for subsequent delivery to a recycling facility must be​ 4.13 managed according to rules adopted under section 116.07 for managing hazardous waste.​ 4.14 This paragraph does not exempt covered batteries and covered products that would be​ 4.15 subject to those rules before collection or delivery to a recycling facility from any applicable​ 4.16 requirements under the rules.​ 4.17 (d) A collector must ensure that covered batteries and covered products are collected​ 4.18 only in appropriate containers that are:​ 4.19 (1) designed, constructed, and used in a manner to suppress battery fires in the container​ 4.20 or to prevent ignition of materials outside the container; and​ 4.21 (2) held in structures compliant with the local fire code.​ 4.22 Subd. 3. Requirements; labeling and sale. (a) A person may not sell, including online​ 4.23 sales; offer for sale or promotional purposes; or distribute in the state a covered battery or​ 4.24 covered product unless the covered battery or covered product is labeled to identify the​ 4.25 chemistry employed to store energy in the battery. Labeling under this paragraph must be​ 4.26 permanently marked on or affixed to the covered battery or covered product and must use​ 4.27 language or graphics sufficient to facilitate awareness by members of the public of the​ 4.28 chemistry employed. The commissioner may, by rule adopted under subdivision 14, specify​ 4.29 the manner of labeling if the commissioner determines, based on observations of or reports​ 4.30 to the agency, that labeling applied by producers is insufficient to facilitate awareness. This​ 4.31 paragraph is effective January 1, 2026.​ 4.32 (b) A person may not sell, including online sales; offer for sale or promotional purposes;​ 4.33 or distribute in the state a covered battery or covered product unless the producer of the​ 4​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 5.1 covered battery or covered product is named as a participant in a stewardship plan published​ 5.2 under subdivision 10, paragraph (f), or the brand is named as covered in a stewardship plan​ 5.3 published under subdivision 10, paragraph (f), and the stewardship plan has not been​ 5.4 terminated under subdivision 11. This paragraph is effective January 1, 2026.​ 5.5 (c) Paragraph (b) and subdivisions 4 to 13 do not apply to a covered battery or covered​ 5.6 product for which the producer or the person selling, offering for sale or promotional​ 5.7 purposes, or distributing the covered battery or covered product demonstrates to the​ 5.8 commissioner that collecting, sorting, transporting, processing, and recycling the covered​ 5.9 battery or covered product and disposing of residual materials is already fully provided and​ 5.10 paid for by the producer under other state law.​ 5.11 (d) This subdivision does not apply to isolated and occasional sales of a covered battery​ 5.12 or covered product by persons not made in the normal course of business, as exempted from​ 5.13 sales tax under section 297A.67, subdivision 23.​ 5.14 (e) This subdivision and subdivisions 4 to 13 do not apply to sales, offers for sale, or​ 5.15 distribution of a used covered battery or used covered product.​ 5.16 Subd. 4. Stewardship plans; submission and required content. (a) By January 1,​ 5.17 2026, each producer, individually or through a stewardship organization that has agreed to​ 5.18 act on the producer's behalf, must submit a stewardship plan or ensure a stewardship plan​ 5.19 has been submitted to the commissioner for review, approval, or rejection.​ 5.20 (b) A submitted stewardship plan must be accompanied by payment of the review fee​ 5.21 as provided in subdivision 13.​ 5.22 (c) A stewardship plan must include:​ 5.23 (1) identification of and contact information for the operator of the stewardship plan;​ 5.24 (2) identification of and contact information for all participants in the stewardship​ 5.25 program;​ 5.26 (3) identification of and contact information for each collector, person transporting​ 5.27 covered batteries or covered products, and facility to be used by the operator under the​ 5.28 stewardship program for storage, processing, recycling, and disposal;​ 5.29 (4) the address; county of location; and, in a form prescribed by the commissioner,​ 5.30 geolocation data for each collection site to be used by the operator under the stewardship​ 5.31 program;​ 5.32 (5) a list of the brands covered under the stewardship program;​ 5​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 6.1 (6) eligibility criteria for prospective collectors of covered batteries and covered products​ 6.2 under the stewardship program according to subdivision 8, paragraph (b);​ 6.3 (7) a description of how the stewardship program will accept and provide coverage under​ 6.4 the stewardship program to any household hazardous waste collection program established​ 6.5 under section 115A.96 if the operator of the household hazardous waste collection program​ 6.6 requests coverage;​ 6.7 (8) a description of how the stewardship program will provide convenient, statewide​ 6.8 collection according to subdivision 5;​ 6.9 (9) a description of how the operator will annually monitor and ensure compliance with​ 6.10 the convenience standards under subdivision 5;​ 6.11 (10) a description of how the operator will provide each collection site served by the​ 6.12 stewardship program with the materials specified in subdivision 6, including specifications​ 6.13 for appropriate containers, signage templates, and a copy of all training and educational​ 6.14 materials to be provided;​ 6.15 (11) a description of how the stewardship program will be accessible according to​ 6.16 subdivision 7;​ 6.17 (12) the selection criteria for persons managing covered batteries and covered products,​ 6.18 and the oversight methods by which the operator will ensure compliance with subdivision​ 6.19 8;​ 6.20 (13) a description of methods by which the operator will ensure that covered batteries​ 6.21 and covered products managed under the stewardship program are accumulated and stored​ 6.22 in compliance with rules adopted under section 116.07 for managing hazardous waste by​ 6.23 each collector and each storage, processing, and recycling facility to be directly used or​ 6.24 funded under the stewardship program;​ 6.25 (14) a description of methods by which the operator will ensure that collection and​ 6.26 storage of covered batteries and covered products at collection sites in the state under the​ 6.27 stewardship program comply with safety and health requirements administered by the​ 6.28 Department of Labor and Industry and with fire protection requirements administered by​ 6.29 the Department of Public Safety;​ 6.30 (15) a description of methods by which the operator will ensure that covered batteries​ 6.31 and covered products managed under the stewardship program are transported in compliance​ 6.32 with regulations for managing hazardous materials, incorporated by reference under section​ 6​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 7.1 221.033, by each person transporting covered batteries or covered products under the​ 7.2 stewardship program;​ 7.3 (16) a statement of indemnification by the operator to collectors for potential liability​ 7.4 for improper downstream management of covered batteries and covered products or residual​ 7.5 materials by transporters or storage, processing, recycling, and disposal facilities that are​ 7.6 identified in the stewardship plan and that are used by collectors;​ 7.7 (17) a description of how the operator will determine the mass of covered batteries and​ 7.8 covered products collected, sorted, transported, processed, and recycled under the stewardship​ 7.9 program by county of collection and by battery chemistry;​ 7.10 (18) a description of the outreach and education methods and activities that the operator​ 7.11 will provide according to subdivision 9;​ 7.12 (19) a description of how the operator will provide at least one full-time operator​ 7.13 employee who is solely dedicated to implementing the stewardship program in this state​ 7.14 and serving as the primary contact between the operator and the agency;​ 7.15 (20) an anticipated annual budget for the stewardship program, broken down into​ 7.16 administrative, collection, sorting, transportation, storage, processing, recycling, disposal,​ 7.17 and communication costs, including the cost of fees under subdivision 13, but not including​ 7.18 costs for lobbying, costs associated with litigation against the state related to this section,​ 7.19 or penalties imposed for violating this section;​ 7.20 (21) a description of how the operator will provide:​ 7.21 (i) advance funding of or reimbursement to collectors for all costs of collecting covered​ 7.22 batteries and covered products and administering the collection program, including costs​ 7.23 of labor and overhead; transport performed by a collector; necessary collection and storage​ 7.24 structures and containers as provided in subdivision 2; employee training; necessary safety​ 7.25 equipment, including appropriate fire protection and suppression equipment and supplies;​ 7.26 and employee time to collect and process covered batteries and covered products received​ 7.27 by the collector; and​ 7.28 (ii) payment for all persons transporting covered batteries and covered products and for​ 7.29 all storage, processing, recycling, and disposal facilities to be directly used or funded under​ 7.30 the stewardship program;​ 7.31 (22) a description of how the stewardship program will be fully paid for by producers,​ 7.32 without any fee, charge, surcharge, or any other cost to:​ 7.33 (i) members of the public;​ 7​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 8.1 (ii) businesses other than a producer;​ 8.2 (iii) collectors; persons transporting, recycling, or disposing of a covered battery or​ 8.3 covered product; or any other person managing a covered battery or covered product;​ 8.4 (iv) the state or any political subdivision; or​ 8.5 (v) any other person who is not a producer;​ 8.6 (23) a description of how the stewardship program will ensure compliance with the​ 8.7 labeling requirements of subdivision 3, paragraph (a); and​ 8.8 (24) a description of how the operator will ensure that covered batteries and covered​ 8.9 products managed under the stewardship program are recycled to the maximum extent​ 8.10 practicable in accordance with section 115A.02, paragraph (b).​ 8.11 Subd. 5. Convenience standards. (a) A stewardship plan must provide convenient,​ 8.12 statewide collection for all covered batteries and covered products that are offered to​ 8.13 collectors by members of the public and businesses in the state, irrespective of:​ 8.14 (1) the brand, energy capacity, or chemistry;​ 8.15 (2) whether the producer of a covered battery or covered product is a participant in the​ 8.16 stewardship program; or​ 8.17 (3) whether the brand of a covered battery or covered product is covered under the​ 8.18 stewardship program.​ 8.19 (b) A stewardship plan must meet the following convenience standards:​ 8.20 (1) for each county with a population of 10,000 or less, at least two permanent year-round​ 8.21 collection sites;​ 8.22 (2) for each county with a population greater than 10,000 but less than or equal to​ 8.23 100,000, at least two permanent year-round collection sites and at least one additional​ 8.24 permanent year-round collection site for each additional 10,000 in population above a​ 8.25 population of 10,000;​ 8.26 (3) for each county with a population greater than 100,000, at least 11 permanent​ 8.27 year-round collection sites and at least one additional permanent year-round collection site​ 8.28 for each additional 50,000 in population above a population of 100,000;​ 8.29 (4) a permanent year-round collection site located within ten miles of the household of​ 8.30 at least 95 percent of the residents of the state; and​ 8​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 9.1 (5) additional convenience standards that the commissioner determines are necessary​ 9.2 to provide convenient, statewide collection for covered batteries and covered products. The​ 9.3 commissioner may consider data submitted according to subdivision 12, the amount of​ 9.4 covered batteries and covered products collected, the estimated amount of covered batteries​ 9.5 and covered products sold or disposed of in the state, and other information related to the​ 9.6 effectiveness of the stewardship program.​ 9.7 Subd. 6. Duties to collectors. The operator must provide each collection site served by​ 9.8 the stewardship program with:​ 9.9 (1) appropriate containers as described in subdivision 2;​ 9.10 (2) consistent signage identifying a collection site;​ 9.11 (3) training for collection site employees on identifying and safely handling and storing​ 9.12 covered batteries and covered products, including damaged, defective, or recalled batteries,​ 9.13 also known as DDR batteries; and​ 9.14 (4) educational materials regarding covered batteries and covered products for distribution​ 9.15 to members of the public and businesses in Minnesota that address the information described​ 9.16 in subdivision 9, paragraph (a), clause (3). The educational materials must be made available​ 9.17 in at least English, Spanish, Somali, and Hmong.​ 9.18 Subd. 7. Accessibility. (a) An operator must provide convenient, equitable, and accessible​ 9.19 service to all Minnesotans, including but not limited to people of color; Minnesota Tribal​ 9.20 governments as defined in section 10.65, subdivision 2; those that are non-English speaking;​ 9.21 immigrant and refugee communities; those with limited access to transportation; and those​ 9.22 in environmental justice areas.​ 9.23 (b) The operator must include collection opportunities beyond those required under​ 9.24 subdivision 5 to better serve populations under paragraph (a), such as individual pickup​ 9.25 from households and temporary events to provide enhanced collection availability.​ 9.26 (c) The description under subdivision 4, paragraph (c), clause (11), must address the​ 9.27 location of collection sites and storage, processing, and recycling facilities, including​ 9.28 accessing collection sites from public transit.​ 9.29 Subd. 8. Oversight; collector eligibility. (a) The operator must ensure that covered​ 9.30 batteries and covered products managed under the stewardship program are recycled to the​ 9.31 maximum extent practicable in accordance with section 115A.02, paragraph (b), and that​ 9.32 residual materials are managed in compliance with applicable hazardous waste or solid​ 9.33 waste requirements by each person transporting covered batteries or covered products and​ 9​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 10.1 by each storage, processing, recycling, and disposal facility to be directly used or funded​ 10.2 under the stewardship program.​ 10.3 (b) The operator must allow any person meeting the eligibility criteria to serve as a​ 10.4 collector but may terminate a collector and cease covering the collector's costs for good​ 10.5 cause. The eligibility criteria must include agreement by collectors to accept any brand of​ 10.6 covered battery or covered product, but no collector may be required to accept any covered​ 10.7 battery or covered product that the collector determines cannot be safely collected for any​ 10.8 reason. The operator must provide a method for collecting any such covered battery or​ 10.9 covered product by another collector that meets the convenience standards of subdivision​ 10.10 5.​ 10.11 (c) If the commissioner determines that it is necessary to ensure that covered batteries​ 10.12 and covered products are managed to the maximum extent practicable in accordance with​ 10.13 section 115A.02, paragraph (b), the commissioner may require selection criteria and oversight​ 10.14 methods in lieu of or in addition to the selection criteria and oversight methods used by an​ 10.15 operator under paragraph (a) for persons managing covered batteries and covered products.​ 10.16 The commissioner may consider data submitted according to subdivision 12; the availability​ 10.17 and feasibility of technology, processes, and methods for managing covered batteries and​ 10.18 covered products; and other information related to the effectiveness of the stewardship​ 10.19 program.​ 10.20 Subd. 9. Outreach and education activities; website. (a) An operator must provide​ 10.21 outreach and education to:​ 10.22 (1) persons that might sell, offer for sale, or distribute covered batteries or covered​ 10.23 products in the state, to inform the persons of the requirements of subdivision 3;​ 10.24 (2) potential collectors and collectors that the operator will use to recruit, train, and​ 10.25 monitor other collectors, to include instructions for collectors that are operating before the​ 10.26 effective date of this section on how to request coverage by the stewardship program and​ 10.27 material to encourage increased collection of covered batteries and covered products; and​ 10.28 (3) members of the public to raise awareness of:​ 10.29 (i) public health and safety and environmental risks caused by improperly charging,​ 10.30 storing, and disposing of covered batteries and covered products;​ 10.31 (ii) methods to safely charge and store covered batteries and covered products; and​ 10.32 (iii) the location and convenience of collection sites in the state.​ 10​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 11.1 (b) The operator must maintain a publicly accessible website to locate collection sites​ 11.2 through map-based and text-based searches.​ 11.3 (c) Every third year after a stewardship plan is approved by the commissioner under​ 11.4 subdivision 10, the operator must engage a qualified independent party to assess the​ 11.5 effectiveness of the outreach and education activities implemented by the operator. The​ 11.6 independent party must prepare a written assessment that must be included in the annual​ 11.7 report under subdivision 12.​ 11.8 Subd. 10. Review and approval of stewardship plans; implementation. (a) Within​ 11.9 30 days after receiving a stewardship plan submitted under subdivision 4, the commissioner​ 11.10 must place the stewardship plan on the agency's publicly accessible website for at least 30​ 11.11 days for public review and comment.​ 11.12 (b) Within 120 days after receiving a stewardship plan submitted under subdivision 4,​ 11.13 the commissioner must determine whether the stewardship plan complies with the​ 11.14 requirements of this section and provide a written notice of determination according to this​ 11.15 subdivision.​ 11.16 (c) In conducting a review of a submitted stewardship plan, the commissioner may​ 11.17 consult with the public or other stakeholders.​ 11.18 (d) If the commissioner determines that a submitted stewardship plan fails to meet the​ 11.19 requirements of subdivision 4, the commissioner must reject the stewardship plan. The​ 11.20 commissioner must provide a written notice of determination describing the reasons for the​ 11.21 rejection to the submitting operator.​ 11.22 (e) If the commissioner determines that a submitted stewardship plan meets the​ 11.23 requirements of subdivision 4, the commissioner must approve the stewardship plan. The​ 11.24 commissioner must provide a written notice of determination to the submitting operator.​ 11.25 (f) The operator must publish an approved stewardship plan on its publicly accessible​ 11.26 website within 30 days after receiving written notice of approval, but is not required to​ 11.27 publish any portion of the stewardship plan that is nonpublic data under chapter 13. The​ 11.28 agency must also publish the approved stewardship plan on its publicly accessible website​ 11.29 within 30 days of the commissioner's approval, but must not publish any portion of the​ 11.30 stewardship plan that is nonpublic data under chapter 13.​ 11.31 (g) The operator must implement an approved stewardship plan within 60 days after​ 11.32 receiving written notice of approval.​ 11​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 12.1 (h) For each stewardship plan or amendment submitted to the commissioner for review​ 12.2 and approval, the commissioner may consider the data submitted according to subdivision​ 12.3 12 and other relevant information to establish requirements to improve the effectiveness,​ 12.4 performance, and awareness of the stewardship program.​ 12.5 (i) An operator must comply with its approved stewardship plan and any approved​ 12.6 amendments to the plan.​ 12.7 Subd. 11. Amending or terminating stewardship plans. (a) An operator may amend​ 12.8 a stewardship plan approved under subdivision 10 without review or approval by the​ 12.9 commissioner according to this paragraph. Within 30 days after making an amendment​ 12.10 under this paragraph, the operator must notify the commissioner of the amendment and​ 12.11 must publish the amended stewardship plan on the operator's publicly accessible website.​ 12.12 An operator may:​ 12.13 (1) add, terminate, or replace a collector, collection site, person transporting covered​ 12.14 batteries or covered products, or facility used for storage, processing, recycling, or disposal;​ 12.15 (2) add or remove participants or brands covered under the stewardship plan; or​ 12.16 (3) change contact staff or associated contact staff information for the operator,​ 12.17 participants, collectors, persons transporting covered batteries or covered products, or​ 12.18 facilities to be used for storage, processing, recycling, or disposal.​ 12.19 (b) Except for an amendment under paragraph (a), a proposed amendment to a​ 12.20 stewardship plan approved under subdivision 10 must be submitted to and reviewed and​ 12.21 approved by the commissioner before it may be implemented by the operator. The​ 12.22 commissioner must review and approve or deny the proposed amendment according to​ 12.23 subdivision 10.​ 12.24 (c) An operator with an approved stewardship plan must submit an amended stewardship​ 12.25 plan for review and approval at least every five years according to this subdivision and​ 12.26 subdivision 4 if the operator has not during that time submitted amendments for review and​ 12.27 approval under paragraph (b).​ 12.28 (d) An operator may terminate a stewardship plan by providing at least 90 days' written​ 12.29 notice to the commissioner and to all participants in the stewardship program. Before the​ 12.30 stewardship plan is terminated, each participant must meet the requirements of subdivisions​ 12.31 4 to 9.​ 12.32 (e) The commissioner may terminate a stewardship plan for good cause, including​ 12.33 significant noncompliance with this section or failure to timely submit a stewardship plan​ 12​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 13.1 for review and approval under subdivision 10. If the commissioner terminates a stewardship​ 13.2 program, the commissioner must provide the operator with written notice of termination​ 13.3 describing the good cause for termination. The commissioner must also notify all participants​ 13.4 in the stewardship program in writing using the contact information for the participants​ 13.5 provided in the stewardship plan.​ 13.6 Subd. 12. Reporting. (a) An operator must report to the commissioner within 30 days​ 13.7 of making an amendment to the stewardship plan made under subdivision 11, paragraph​ 13.8 (a).​ 13.9 (b) By April 1 each year, an operator must report to the commissioner on the stewardship​ 13.10 organization's activities during the preceding calendar year. The report must include:​ 13.11 (1) the address; county of location; and, in a form prescribed by the commissioner,​ 13.12 geolocation data for each collection site used by the operator under the stewardship program​ 13.13 during the preceding calendar year;​ 13.14 (2) the number and mass of covered batteries and covered products managed under the​ 13.15 stewardship program during the preceding calendar year, categorized by county of collection​ 13.16 and by battery chemistry;​ 13.17 (3) a description of outreach and education activities performed by the operator during​ 13.18 the preceding calendar year to educate members of the public and businesses in the state​ 13.19 about the availability of the battery stewardship program and location of collectors and a​ 13.20 copy of the independent review under subdivision 9, paragraph (d), if required;​ 13.21 (4) a financial report on the stewardship program, including actual costs and funding​ 13.22 compared to the budget for the year contained in the stewardship plan. The financial report​ 13.23 must include an audit report of the stewardship program by an independent auditor. The​ 13.24 independent auditor must be selected by the operator and approved or rejected by the​ 13.25 commissioner. If the commissioner rejects an independent auditor, the operator must select​ 13.26 a different independent auditor for approval or rejection by the commissioner. The​ 13.27 independent audit must meet the requirements of Accounting Standards Update 2018-08,​ 13.28 Not-for-Profit Entities (Topic 958), Financial Accounting Standards Board, as amended;​ 13.29 (5) the proposed and actual budget for the year in which the report is submitted; and​ 13.30 (6) every fourth year after a stewardship plan is approved by the commissioner, a​ 13.31 performance audit of the program. The performance audit must conform to audit standards​ 13.32 established by the United States Government Accountability Office; the National Association​ 13​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 14.1 of State Auditors, Comptrollers and Treasurers; or another nationally recognized organization​ 14.2 approved by the commissioner.​ 14.3 Subd. 13. Fees. (a) Notwithstanding section 16A.1283, the commissioner must charge​ 14.4 a reasonable review fee to be paid by an operator for review of the operator's initial​ 14.5 stewardship plan. Fees established under this paragraph must be based on the expected costs​ 14.6 to the agency for reviewing a stewardship plan.​ 14.7 (b) By January 1, 2026, and by July 1 each year thereafter, the commissioner must​ 14.8 calculate the annual costs that the agency incurs under this section. Notwithstanding section​ 14.9 16A.1283, the commissioner must then set an annual fee at an amount that, when paid by​ 14.10 every operator, is adequate to reimburse the agency's full costs of administering this section.​ 14.11 The total amount of annual fees and review fees collected under this subdivision must not​ 14.12 exceed the amount necessary to reimburse costs incurred by the agency to administer this​ 14.13 section. Each operator must pay the annual fee.​ 14.14 (c) All fees received under this section must be deposited in the state treasury and credited​ 14.15 to a product stewardship account in the special revenue fund. The amount collected under​ 14.16 this section is annually appropriated to the commissioner to implement and enforce this​ 14.17 section.​ 14.18 Subd. 14. Rules. (a) The commissioner may adopt rules to implement this section. The​ 14.19 18-month time limit under section 14.125 does not apply to rulemaking under this section.​ 14.20 (b) The commissioner may adopt rules to designate additional types of primary batteries​ 14.21 as covered batteries subject to this section if the commissioner determines that the type of​ 14.22 primary battery would be a hazardous waste or problem material when disposed of or that​ 14.23 the battery contains a chemical of high concern, critical material, or critical mineral.​ 14.24 Subd. 15. Limited private right of action. (a) Except as provided in paragraph (d), an​ 14.25 operator that spent at least $250,000 managing covered batteries or covered products in the​ 14.26 state in the previous calendar year may maintain a civil action against one or more producers​ 14.27 or operators to recover a portion of the operator's costs and additional amounts according​ 14.28 to this subdivision.​ 14.29 (b) Damages recoverable under this subdivision may not exceed a fair share of the actual​ 14.30 costs incurred by the plaintiff operator in managing covered batteries or covered products​ 14.31 of a defendant producer or defendant operator subject to subdivision 3, paragraph (b).​ 14.32 Additional amounts recoverable under this subdivision may include an award of reasonable​ 14.33 attorney fees and court costs, including expert witness fees. If a defendant producer did not​ 14.34 implement or participate in a stewardship program established under this section during the​ 14​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 15.1 period in which covered batteries or covered products of the defendant producer were​ 15.2 managed by the plaintiff, a punitive sum of up to three times the damages awarded may be​ 15.3 assessed.​ 15.4 (c) A plaintiff operator may establish a defendant producer's or defendant operator's fair​ 15.5 share of the plaintiff's actual costs by providing the court with data establishing the relative​ 15.6 weight of covered batteries and covered products collected by the plaintiff for which the​ 15.7 defendant was required under this section to manage under a stewardship program compared​ 15.8 to the weight of other covered batteries and covered products collected by the plaintiff. This​ 15.9 data may include:​ 15.10 (1) data generated from sorts of covered batteries or covered products involving a​ 15.11 minimum of 500 pounds of covered batteries and covered products collected at each of​ 15.12 three or more collection sites in the state that are found by the court to have been collected​ 15.13 in an unbiased manner and to be reasonably representative of collection sites in the state;​ 15.14 (2) an analysis of collections by the plaintiff that are found by the court to be reasonably​ 15.15 representative of total collections in the state;​ 15.16 (3) market share data that the court finds reasonably represents the percentage of sales​ 15.17 by the defendant producer in the state; and​ 15.18 (4) any other data or method that the court finds reliable in establishing the defendant's​ 15.19 fair share of the plaintiff's actual costs.​ 15.20 (d) An action may not be commenced under this subdivision against a potential defendant​ 15.21 producer or defendant operator until 60 days after the plaintiff operator provides to all​ 15.22 potential defendants a written notice of the claim setting forth the amount of the claim and​ 15.23 the basis for the calculation of the amount.​ 15.24 (e) No action may be brought under this subdivision against a person other than a producer​ 15.25 or operator.​ 15.26 (f) The commissioner may not be a party to or be required to provide assistance or​ 15.27 otherwise participate in a civil action authorized under this subdivision unless subject to a​ 15.28 subpoena before a court of jurisdiction.​ 15.29 Subd. 16. Conduct authorized. A producer or stewardship organization that organizes​ 15.30 collecting, sorting, transporting, storing, processing, recycling, or disposing of covered​ 15.31 batteries or covered products under this section is immune from liability for the conduct​ 15.32 under state laws relating to antitrust, restraint of trade, unfair trade practices, and other​ 15.33 regulation of trade or commerce only to the extent that the conduct is necessary to plan and​ 15​Sec. 2.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 16.1 implement the producer's or stewardship organization's chosen organized collection, sorting,​ 16.2 transport, storage, processing, recycling, and disposal system.​ 16.3 Subd. 17. Duty to provide information. Upon request of the commissioner for purposes​ 16.4 of determining compliance with this section, a person must furnish to the commissioner​ 16.5 any information that the person has or may reasonably obtain.​ 16.6 Sec. 3. Minnesota Statutes 2022, section 325E.125, subdivision 2, is amended to read:​ 16.7 Subd. 2. Mercury content. (a) Except as provided in paragraph (c), a manufacturer may​ 16.8 not sell, distribute, or offer for sale in this state an alkaline manganese battery that contains​ 16.9 more than 0.025 percent mercury by weight.​ 16.10 (b) On application, the commissioner of the Pollution Control Agency may exempt a​ 16.11 specific type of battery from the requirements of paragraph (a) or (d) if there is no battery​ 16.12 meeting the requirements that can be reasonably substituted for the battery for which the​ 16.13 exemption is sought. A battery exempted by the commissioner under this paragraph is​ 16.14 subject to the requirements of section 115A.9155, subdivision 2 115A.9165.​ 16.15 (c) Notwithstanding paragraph (a), a manufacturer may not sell, distribute, or offer for​ 16.16 sale in this state a button cell nonrechargeable battery not subject to paragraph (a) that​ 16.17 contains more than 25 milligrams of mercury.​ 16.18 (d) A manufacturer may not sell, distribute, or offer for sale in this state a dry cell battery​ 16.19 containing a mercuric oxide electrode.​ 16.20 (e) After January 1, 1996, a manufacturer may not sell, distribute, or offer for sale in​ 16.21 this state an alkaline manganese battery, except an alkaline manganese button cell, that​ 16.22 contains mercury unless the commissioner of the Pollution Control Agency determines that​ 16.23 compliance with this requirement is not technically and commercially feasible.​ 16.24 Sec. 4. REPEALER.​ 16.25 Minnesota Statutes 2022, sections 115A.9155; 115A.9157, subdivisions 1, 2, 3, 5, 6, 7,​ 16.26 8, and 9; and 325E.125, subdivisions 3, 4, and 5, are repealed.​ 16.27 EFFECTIVE DATE. This section is effective January 1, 2026.​ 16​Sec. 4.​ 24-07502 as introduced​02/29/24 REVISOR CKM/KR​ 115A.9155 DISPOSING OF CERTAIN DRY CELL BATTERIES.​ Subdivision 1. Prohibition. A person may not place in mixed municipal solid waste a dry cell​ battery containing mercuric oxide electrode, silver oxide electrode, nickel-cadmium, or sealed​ lead-acid that was purchased for use or used by a government agency, or an industrial,​ communications, or medical facility.​ Subd. 2. Manufacturer responsibility. (a) A manufacturer of batteries subject to subdivision​ 1 shall:​ (1) ensure that a system for the proper collection, transportation, and processing of waste batteries​ exists for purchasers in Minnesota; and​ (2) clearly inform each final purchaser of the prohibition on disposal of waste batteries and of​ the system or systems for proper collection, transportation, and processing of waste batteries available​ to the purchaser.​ (b) To ensure that a system for the proper collection, transportation, and processing of waste​ batteries exists, a manufacturer shall:​ (1) identify collectors, transporters, and processors for the waste batteries and contract or​ otherwise expressly agree with a person or persons for the proper collection, transportation, and​ processing of the waste batteries; or​ (2) accept waste batteries returned to its manufacturing facility.​ (c) At the time of sale of a battery subject to subdivision 1, a manufacturer shall provide in a​ clear and conspicuous manner a telephone number that the final consumer of the battery can call​ to obtain information on specific procedures to follow in returning the battery for recycling or​ proper disposal. The manufacturer may include the telephone number and notice of return procedures​ on an invoice or other transaction document held by the purchaser. The manufacturer shall provide​ the telephone number to the commissioner of the agency.​ (d) A manufacturer shall ensure that the cost of proper collection, transportation, and processing​ of the waste batteries is included in the sales transaction or agreement between the manufacturer​ and any purchaser.​ (e) A manufacturer that has complied with this subdivision is not liable under subdivision 1 for​ improper disposal by a person other than the manufacturer of waste batteries.​ 115A.9157 RECHARGEABLE BATTERIES AND PRODUCTS.​ Subdivision 1. Definition. For the purpose of this section, "rechargeable battery" means a sealed​ nickel-cadmium battery, a sealed lead acid battery, or any other rechargeable battery, except a​ rechargeable battery governed by section 115A.9155 or exempted by the commissioner under​ subdivision 9.​ Subd. 2. Prohibition. Effective August 1, 1991, a person may not place in mixed municipal​ solid waste a rechargeable battery, a rechargeable battery pack, a product with a nonremovable​ rechargeable battery, or a product powered by rechargeable batteries or rechargeable battery pack,​ from which all batteries or battery packs have not been removed.​ Subd. 3. Collection and management costs. A manufacturer of rechargeable batteries or​ products powered by rechargeable batteries is responsible for the costs of collecting and managing​ its waste rechargeable batteries and waste products to ensure that the batteries are not part of the​ solid waste stream.​ Subd. 5. Collection and management programs. (a) By September 20, 1995, the manufacturers​ or their representative organization shall implement permanent programs, based on the results of​ the pilot projects required in Minnesota Statutes 1994, section 115A.9157, subdivision 4, that may​ be reasonably expected to collect 90 percent of the waste rechargeable batteries and the participating​ manufacturers' products powered by rechargeable batteries that are generated in the state. The​ batteries and products collected must be recycled or otherwise managed or disposed of properly.​ (b) In every odd-numbered year after 1995, each manufacturer or a representative organization​ shall provide information to the senate and house of representatives committees having jurisdiction​ over environment and natural resources and environment and natural resources finance that specifies​ at least the estimated amount of rechargeable batteries subject to this section sold in the state by​ each manufacturer and the amount of batteries each collected during the previous two years. A​ 1R​ APPENDIX​ Repealed Minnesota Statutes: 24-07502​ representative organization may report the amounts in aggregate for all the members of the​ organization.​ Subd. 6. List of participants. A manufacturer or its representative organization shall inform​ the committees listed in subdivision 5 when they begin participating in the projects and programs​ and immediately if they withdraw participation.​ Subd. 7. Contracts. A manufacturer or a representative organization of manufacturers may​ contract with the state or a political subdivision to provide collection services under this section.​ The manufacturer or organization shall fully reimburse the state or political subdivision for the​ value of any contractual services rendered under this subdivision.​ Subd. 8. Anticompetitive conduct. A manufacturer or organization of manufacturers and its​ officers, members, employees, and agents who participate in projects or programs to collect and​ properly manage waste rechargeable batteries or products powered by rechargeable batteries are​ immune from liability under state law relating to antitrust, restraint of trade, unfair trade practices,​ and other regulation of trade or commerce for activities related to the collection and management​ of batteries and products required under this section.​ Subd. 9. Exemptions. To ensure that new types of batteries do not add additional hazardous or​ toxic materials to the mixed municipal solid waste stream, the commissioner of the agency may​ exempt a new type of rechargeable battery from the requirements of this section if it poses no​ unreasonable hazard when placed in and processed or disposed of as part of a mixed municipal​ solid waste.​ 325E.125 GENERAL AND SPECIAL PURPOSE BATTERY REQUIREMENTS.​ Subd. 3. Rechargeable tools and appliances. (a) A manufacturer may not sell, distribute, or​ offer for sale in this state a rechargeable consumer product unless:​ (1) the battery can be easily removed by the consumer or is contained in a battery pack that is​ separate from the product and can be easily removed; and​ (2) the product and the battery are both labeled in a manner that is clearly visible to the consumer​ indicating that the battery must be recycled or disposed of properly and the battery must be clearly​ identifiable as to the type of electrode used in the battery.​ (b) "Rechargeable consumer product" as used in this subdivision means any product that contains​ a rechargeable battery and is primarily used or purchased to be used for personal, family, or​ household purposes.​ (c) On application by a manufacturer, the commissioner of the Pollution Control Agency may​ exempt a rechargeable consumer product from the requirements of paragraph (a) if:​ (1) the product cannot be reasonably redesigned and manufactured to comply with the​ requirements prior to the effective date of Laws 1990, chapter 409, section 2;​ (2) the redesign of the product to comply with the requirements would result in significant​ danger to public health and safety; or​ (3) the type of electrode used in the battery poses no unreasonable hazards when placed in and​ processed or disposed of as part of mixed municipal solid waste.​ (d) An exemption granted by the commissioner of the Pollution Control Agency under paragraph​ (c), clause (1), must be limited to a maximum of two years and may be renewed.​ Subd. 4. Rechargeable batteries and products; notice. (a) A person who sells rechargeable​ batteries or products powered by rechargeable batteries governed by section 115A.9157 at retail​ shall post the notice in paragraph (b) in a manner clearly visible to a consumer making purchasing​ decisions.​ (b) The notice must be at least four inches by six inches and state:​ "ATTENTION USERS OF RECHARGEABLE BATTERIES AND CORDLESS PRODUCTS:​ Under Minnesota law, manufacturers of rechargeable batteries, rechargeable battery packs, and​ products powered by nonremovable rechargeable batteries will provide a special collection system​ for these items by April 15, 1994. It is illegal to put rechargeable batteries in the garbage. Use the​ special collection system that will be provided in your area. Take care of our environment.​ 2R​ APPENDIX​ Repealed Minnesota Statutes: 24-07502​ DO NOT PUT RECHARGEABLE BATTERIES OR PRODUCTS POWERED BY​ NONREMOVABLE RECHARGEABLE BATTERIES IN THE GARBAGE."​ (c) Notice is not required for home solicitation sales, as defined in section 325G.06, or for​ catalogue sales.​ Subd. 5. Prohibitions. A manufacturer of rechargeable batteries or products powered by​ rechargeable batteries that does not participate in the pilot projects and programs required in section​ 115A.9157 may not sell, distribute, or offer for sale in this state rechargeable batteries or products​ powered by rechargeable batteries after January 1, 1992.​ After January 1, 1992, a person who first purchases rechargeable batteries or products powered​ by rechargeable batteries for importation into the state for resale may not purchase rechargeable​ batteries or products powered by rechargeable batteries made by any person other than a manufacturer​ that participates in the projects and programs required under section 115A.9157.​ 3R​ APPENDIX​ Repealed Minnesota Statutes: 24-07502​