Packaging Waste and Cost Reduction Act

1.1 A bill for an act​ 1.2 relating to solid waste; establishing Packaging Waste and Cost Reduction Act;​ 1.3 authorizing rulemaking; proposing coding for new law in Minnesota Statutes,​ 1.4 chapter 115A.​ 1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​ 1.6 Section 1. [115A.144] SHORT TITLE.​ 1.7 Sections 115A.144 to 115A.1463 may be cited as the "Packaging Waste and Cost​ 1.8 Reduction Act."​ 1.9 Sec. 2. [115A.1441] DEFINITIONS.​ 1.10 Subdivision 1. Scope. For the purposes of sections 115A.144 to 115A.1463, the terms​ 1.11 in this section have the meanings given.​ 1.12 Subd. 2. Advisory board. "Advisory board" or "board" means the Producer​ 1.13 Responsibility Advisory Board established under section 115A.1446.​ 1.14 Subd. 3. Brand. "Brand" means a name, symbol, word, or mark that identifies a product​ 1.15 and attributes the product and its components, including packaging, to the brand owner.​ 1.16 Subd. 4. Brand owner. "Brand owner" means a person that owns or licenses a brand or​ 1.17 that otherwise has rights to market a product under the brand, whether or not the brand's​ 1.18 trademark is registered.​ 1.19 Subd. 5. Collection rate. "Collection rate" means the amount of a covered material by​ 1.20 covered materials type collected by service providers and transported for reuse, recycling,​ 1.21 or composting divided by the total amount of the type of a covered material by covered​ 1​Sec. 2.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ SENATE​ STATE OF MINNESOTA​ S.F. No. 3561​NINETY-THIRD SESSION​ (SENATE AUTHORS: MORRISON, Hawj, McEwen and Hoffman)​ OFFICIAL STATUS​D-PG​DATE​ Introduction and first reading​02/12/2024​ Referred to Environment, Climate, and Legacy​ 2.1 materials type sold into the state by the relevant unit of measurement established in section​ 2.2 115A.1451.​ 2.3 Subd. 6. Compostable material. "Compostable material" means a covered material​ 2.4 that:​ 2.5 (1) meets, and is labeled to reflect that it meets, the American Society for Testing and​ 2.6 Materials Standard Specification for Labeling of Plastics Designed to be Aerobically​ 2.7 Composted in Municipal or Industrial Facilities (D6400) or its successor;​ 2.8 (2) meets, and is labeled to reflect that it meets, the American Society for Testing and​ 2.9 Materials Standard Specification for Labeling of End Items that Incorporate Plastics and​ 2.10 Polymers as Coatings or Additives with Paper and Other Substrates Designed to be​ 2.11 Aerobically Composted in Municipal or Industrial Facilities (D6868) or its successor;​ 2.12 (3) is comprised of only wood without any coatings or additives; or​ 2.13 (4) is comprised of only paper without any coatings or additives.​ 2.14 Subd. 7. Composting. "Composting" means the controlled microbial degradation of​ 2.15 source-separated compostable materials to yield a humus-like product.​ 2.16 Subd. 8. Composting rate. "Composting rate" means the amount of compostable covered​ 2.17 material that is managed through composting, divided by the total amount of compostable​ 2.18 covered material sold into the state by the relevant unit of measurement established in section​ 2.19 115A.1451.​ 2.20 Subd. 9. Covered material. "Covered material" means packaging and paper products​ 2.21 sold, offered for sale, or distributed in the state.​ 2.22 Subd. 10. Covered materials type. "Covered materials type" means a singular and​ 2.23 specific type of covered material that can be categorized based on distinguishing chemical​ 2.24 or physical properties, including properties that allow for a covered materials type to be​ 2.25 aggregated into a commonly defined discrete commodity category for purposes of reuse,​ 2.26 recycling, or composting, and based on similar uses in the form of a product or package.​ 2.27 Subd. 11. Food packaging. "Food packaging" means products supplied to or purchased​ 2.28 by a consumer for the express purpose of facilitating the storage, service, or consumption​ 2.29 of food or beverages, including plates, wraps, cups, bowls, boxes, utensils, straws, lids,​ 2.30 bags, foil, hinged or lidded containers, or similar containers that are sold to a retailer or a​ 2.31 food establishment, regardless of whether the item is used to prepackage food or beverages​ 2.32 for resale, filled on site with food or beverages ordered by a customer, or resold as is.​ 2​Sec. 2.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 3.1 Subd. 12. Infrastructure investment. "Infrastructure investment" means an investment​ 3.2 by a producer responsibility organization that funds:​ 3.3 (1) equipment or facilities in which covered materials are prepared for recycling,​ 3.4 composting, or reuse;​ 3.5 (2) technical assistance to a producer to make changes in product design that reduce the​ 3.6 environmental impact of covered materials or that increase the recoverability or marketability​ 3.7 of covered materials for recycling, composting, or reuse; or​ 3.8 (3) the expansion or strengthening of demand for and use of covered materials by​ 3.9 responsible markets in the state or region.​ 3.10 Subd. 13. Living wage. "Living wage" means the minimum hourly wage necessary to​ 3.11 allow a person working 40 hours per week to afford basic needs as estimated by the​ 3.12 Department of Employment and Economic Development under section 116J.013.​ 3.13 Subd. 14. Material recovery facility. "Material recovery facility" means a facility that​ 3.14 receives, separates, and sells or otherwise distributes postconsumer materials for recycling​ 3.15 to responsible markets.​ 3.16 Subd. 15. Needs assessment. "Needs assessment" means an assessment conducted​ 3.17 pursuant to section 115A.1450. Except where the context requires otherwise, needs​ 3.18 assessment means the most recently completed needs assessment.​ 3.19 Subd. 16. Packaging. "Packaging" has the meaning given in section 115A.03 and​ 3.20 includes food packaging.​ 3.21 Subd. 17. Paper product. "Paper product" means a product made primarily from wood​ 3.22 pulp or other cellulosic fibers, except that paper product does not include bound books or​ 3.23 products that recycling or composting facilities will not accept because of the unsafe or​ 3.24 unsanitary nature of the paper product.​ 3.25 Subd. 18. Plastic. "Plastic" has the meaning given in section 115.01.​ 3.26 Subd. 19. Postconsumer recycled content. "Postconsumer recycled content" means​ 3.27 the portion of a product composed of postconsumer material, expressed as a percentage of​ 3.28 the total weight of the product.​ 3.29 Subd. 20. Producer. (a) "Producer" means the following:​ 3.30 (1) for paper products:​ 3.31 (i) that are magazines, newspapers, catalogs, telephone directories, or similar publications,​ 3.32 the producer is the publisher; and​ 3​Sec. 2.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 4.1 (ii) that are other paper products, the producer is:​ 4.2 (A) the person that manufactures the paper product under the manufacturer's own brand;​ 4.3 (B) if the paper product is manufactured by a person other than the brand owner, the​ 4.4 producer of the paper product is the licensee of a brand or trademark under which the paper​ 4.5 product is used in a commercial enterprise, sold, offered for sale, or distributed in the state,​ 4.6 whether or not the trademark is registered in the state; or​ 4.7 (C) if there is no person described in subitem (A) or (B) located in the United States,​ 4.8 the producer is the person that imports the paper product into the United States for use in a​ 4.9 commercial enterprise that sells, offers for sale, or distributes the item in the state;​ 4.10 (2) for products other than paper products that are sold in packaging at a physical retail​ 4.11 location in this state:​ 4.12 (i) if the product is sold in packaging under the manufacturer's own brand, or is sold in​ 4.13 packaging that lacks identification of a brand, the producer is the person that manufactures​ 4.14 the product;​ 4.15 (ii) if the product is manufactured by a person other than the brand owner, the producer​ 4.16 is the licensee of a brand or trademark under which a packaged product is used in a​ 4.17 commercial enterprise, sold, offered for sale, or distributed in the state, whether or not the​ 4.18 trademark is registered in the state; or​ 4.19 (iii) if there is no person described in item (i) or (ii) located in the United States, the​ 4.20 producer is the person that imports the packaged product into the United States for use in​ 4.21 a commercial enterprise that sells, offers for sale, or distributes the product in the state;​ 4.22 (3) for products other than paper products sold or distributed in packaging in the state​ 4.23 via remote sale or distribution:​ 4.24 (i) if the packaging is used to directly protect or to indirectly contain the product, the​ 4.25 producer is the person that manufactures the packaged product;​ 4.26 (ii) if the packaging is used to ship the product or a group of products to a consumer,​ 4.27 the producer is the person that packages and ships the product or group of products; and​ 4.28 (iii) if the packaging is used to directly protect or to contain the product and no additional​ 4.29 packaging is used to ship the product, the producer is the person that manufactures the​ 4.30 packaged product; and​ 4.31 (4) for all other packaging, the producer is the person that first distributes the packaged​ 4.32 product in the state.​ 4​Sec. 2.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 5.1 (b) Producer does not include a person that:​ 5.2 (1) annually sells, offers for sale, distributes, or imports in or into the state less than one​ 5.3 ton of covered material; and​ 5.4 (2) has a global gross revenue of less than $2,000,000 for the person's most recent fiscal​ 5.5 year.​ 5.6 Subd. 21. Producer responsibility organization. "Producer responsibility organization"​ 5.7 means a nonprofit corporation that is tax exempt under chapter 501(c)(3) of the federal​ 5.8 Internal Revenue Code and that is created by a group of producers to implement activities​ 5.9 under this act.​ 5.10 Subd. 22. Recycling. "Recycling" has the meaning given in section 115A.03 except that​ 5.11 it does not include composting.​ 5.12 Subd. 23. Recycling rate. "Recycling rate" means the amount of covered material, in​ 5.13 aggregate or by individual covered materials type, managed through recycling in a calendar​ 5.14 year divided by the total amount of covered materials sold into the state by the relevant unit​ 5.15 of measurement established in section 115A.1451.​ 5.16 Subd. 24. Responsible market. "Responsible market" means a materials market that:​ 5.17 (1) recycles, composts, or otherwise recovers materials and disposes of contaminants in​ 5.18 a manner that protects the environment and minimizes risks to public health and worker​ 5.19 health and safety;​ 5.20 (2) complies with all applicable federal, state, and local statutes and rules governing​ 5.21 environmental, health, safety, and financial responsibility;​ 5.22 (3) possesses all requisite licenses and permits required by government agencies;​ 5.23 (4) if the market operates in the state, manages waste according to the waste management​ 5.24 goal and priority order of waste management practices stated in section 115A.02; and​ 5.25 (5) minimizes adverse impacts to environmental justice areas.​ 5.26 Subd. 25. Reuse. "Reuse" means the return of a covered material to the marketplace and​ 5.27 the refilling or continued use of the covered material in the marketplace for its original​ 5.28 intended purpose without a change in form when the covered material is:​ 5.29 (1) intentionally designed and marketed to be used multiple times;​ 5.30 (2) designed for durability and maintenance to extend its useful life and reduce demand​ 5.31 for new production;​ 5​Sec. 2.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 6.1 (3) supported by adequate logistics and infrastructure that provides convenient access​ 6.2 for return for the purpose of refilling or continued use; and​ 6.3 (4) compliant with all applicable state and local statutes and rules governing health and​ 6.4 safety.​ 6.5 Subd. 26. Reuse rate. "Reuse rate" means the share of units of a covered material sold​ 6.6 into the state in a calendar year that are deemed reusable by the commissioner in accordance​ 6.7 with section 115A.1451.​ 6.8 Subd. 27. Reusable. "Reusable" means capable of reuse.​ 6.9 Subd. 28. Service provider. "Service provider" means an entity that collects, transfers,​ 6.10 sorts, processes, or otherwise prepares covered materials for recycling by a responsible​ 6.11 market, for composting, or for reuse. A political subdivision that provides or that contracts​ 6.12 or otherwise arranges with another party to provide reuse, collection, recycling, or composting​ 6.13 services for covered materials within its jurisdiction may be a service provider regardless​ 6.14 of whether it provided similar services prior to the approval of the applicable stewardship​ 6.15 plan.​ 6.16 Subd. 29. This act. "This act" means sections 115A.144 to 115A.1463.​ 6.17 Subd. 30. Waste reduction or source reduction. "Waste reduction" or "source reduction"​ 6.18 has the meaning given in section 115A.03, except that it does not include reuse.​ 6.19 Sec. 3. [115A.1442] ESTABLISHMENT OF PROGRAM.​ 6.20 Producers must implement and finance a statewide stewardship program for packaging​ 6.21 and paper products in accordance with this act that encourages packaging redesign to reduce​ 6.22 risks to environmental and human health and that reduces generation of covered materials​ 6.23 waste through waste reduction, reuse, recycling, and composting and by providing for​ 6.24 negotiation and execution of agreements to collect, transport, and process used covered​ 6.25 materials for reuse, recycling, and composting.​ 6.26 Sec. 4. [115A.1443] REGISTRATION OF PRODUCER RESPONSIBILITY​ 6.27 ORGANIZATIONS.​ 6.28 Subdivision 1. Annual registration. (a) By January 1, 2025, and annually thereafter, a​ 6.29 producer responsibility organization must register with the commissioner by submitting the​ 6.30 following:​ 6​Sec. 4.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 7.1 (1) contact information for a person responsible for implementing approved stewardship​ 7.2 plans;​ 7.3 (2) a list of all member producers that will operate under the stewardship plan​ 7.4 administered by the producer responsibility organization and, for each producer, a list of​ 7.5 all brands of the producer's covered materials sold, offered for sale, or distributed in the​ 7.6 state;​ 7.7 (3) copies of written agreements with each producer stating that each producer agrees​ 7.8 to operate under an approved stewardship plan administered by the producer responsibility​ 7.9 organization;​ 7.10 (4) a list of current board members and the executive director if different than the person​ 7.11 responsible for implementing approved stewardship plans; and​ 7.12 (5) payment of the annual fee required under subdivision 2.​ 7.13 (b) If one or more producers elects to operate independently under section 115A.1463​ 7.14 or more than a single producer responsibility organization is established, the producers and​ 7.15 producer responsibility organizations must establish a coordinating body and process to​ 7.16 prevent redundancy of service contracts among service providers and to ensure the efficient​ 7.17 delivery of waste management services. The stewardship plans of all producers operating​ 7.18 independently and all producer responsibility organizations must be integrated into a single​ 7.19 stewardship plan that covers all requirements of section 115A.1451 and encompasses all​ 7.20 producers when submitted to the commissioner for approval.​ 7.21 Subd. 2. Registration fee. (a) As part of its annual registration with the commissioner,​ 7.22 a producer responsibility organization must submit to the commissioner an annual fee for​ 7.23 the following year, as determined by the commissioner. Beginning October 1, 2028, and​ 7.24 annually thereafter, the commissioner must notify registered producer responsibility​ 7.25 organizations in writing of the amount of the fee for the following year, which must be​ 7.26 equitably apportioned between registered producer responsibility organizations and which​ 7.27 must be set at an amount anticipated to in the aggregate meet but not exceed the​ 7.28 commissioner's estimate of the costs required to perform the commissioner's duties as​ 7.29 described in section 115A.1445 and to otherwise administer, implement, and enforce this​ 7.30 act.​ 7.31 (b) The commissioner must develop and implement a process to reconcile the fees paid​ 7.32 by a producer responsibility organization under this subdivision with the actual costs incurred​ 7.33 by the agency on an annual basis, by means of credits or refunds to or additional payments​ 7.34 required of producer responsibility organizations, as applicable.​ 7​Sec. 4.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 8.1 Subd. 3. Initial producer responsibility organization registration; implementation​ 8.2 fee. (a) Notwithstanding the other provisions of this section, the commissioner may not​ 8.3 allow registration of more than one producer responsibility organization under this section​ 8.4 before the first stewardship plan approved by the commissioner expires. If more than one​ 8.5 producer responsibility organization applies to register under this section before the first​ 8.6 stewardship plan is approved by the commissioner, the commissioner must establish a​ 8.7 process to select the producer responsibility organization that will represent producers until​ 8.8 the first stewardship plan expires and must return the registration fee paid by applicants​ 8.9 who are not selected.​ 8.10 (b) By October 1, 2025, and annually until the first stewardship plan is approved, the​ 8.11 commissioner must provide written notice to the initial producer responsibility organization​ 8.12 registered under this section of the commissioner's estimate of the cost of conducting the​ 8.13 initial needs assessment and the commissioner's costs to administer this act during the period​ 8.14 prior to plan approval. The producer responsibility organization must remit payment in full​ 8.15 for these costs to the commissioner within 45 days of receipt of this notice. The producer​ 8.16 responsibility organization may charge each member producer to cover the cost of its​ 8.17 implementation fee according to each producer's unit-, weight-, volume-, or sales-based​ 8.18 market share or by another method it determines to be an equitable determination of each​ 8.19 producer's payment obligation.​ 8.20 Sec. 5. [115A.1444] ESTABLISHMENT OF PRODUCER RESPONSIBILITY​ 8.21 ADVISORY BOARD.​ 8.22 Subdivision 1. Establishment.The Producer Responsibility Advisory Board is established​ 8.23 to review all programs conducted by producer responsibility organizations under this act​ 8.24 and to advise the commissioner and producer responsibility organizations regarding the​ 8.25 implementation of this act.​ 8.26 Subd. 2. Membership. (a) The membership of the advisory board consists of persons​ 8.27 appointed by the commissioner as follows:​ 8.28 (1) two members representing manufacturers of covered materials or a statewide or​ 8.29 national trade association representing those manufacturers;​ 8.30 (2) two members representing materials recovery facilities that process covered materials,​ 8.31 one representing a privately owned facility and one representing a publicly owned facility;​ 8.32 (3) one member representing a waste hauler or a statewide association representing waste​ 8.33 haulers;​ 8​Sec. 5.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 9.1 (4) one member representing retailers of covered materials or a statewide trade association​ 9.2 representing those retailers;​ 9.3 (5) one member representing a statewide nonprofit environmental organization;​ 9.4 (6) one member representing a community-based nonprofit environmental justice​ 9.5 organization;​ 9.6 (7) one member representing a waste facility that receives covered materials and transfers​ 9.7 them to another facility for reuse, recycling, or composting;​ 9.8 (8) one member representing a waste facility that receives source-separated compostable​ 9.9 materials for composting or a statewide trade association that represents such facilities;​ 9.10 (9) two members representing an entity that develops or offers for sale covered materials​ 9.11 that are designed for reuse and maintained through a reuse system or infrastructure or a​ 9.12 statewide or national trade association that represents such entities;​ 9.13 (10) three members representing organizations of political subdivisions;​ 9.14 (11) two members representing other stakeholders or additional members of interests​ 9.15 represented under clauses (1) to (10) as determined by the commissioner; and​ 9.16 (12) one member representing the commissioner.​ 9.17 (b) In making appointments under paragraph (a), the commissioner:​ 9.18 (1) may not appoint members who are state legislators or registered lobbyists; and​ 9.19 (2) must endeavor to appoint members from all regions of the state.​ 9.20 Subd. 3. Terms; removal. A member of the advisory board appointed under subdivision​ 9.21 2, paragraph (a), clause (12), serves at the pleasure of the commissioner. All other members​ 9.22 serve for a term of four years, except that the initial term for five of the initial appointees​ 9.23 must be two years so that membership terms are staggered. Members may be reappointed​ 9.24 but may not serve more than eight consecutive years. Removal of members and filling of​ 9.25 vacancies is governed by section 15.059, subdivision 4.​ 9.26 Subd. 4. Compensation. Members of the board must be compensated in accordance​ 9.27 with section 15.059, subdivision 3.​ 9.28 Subd. 5. Quorum. A majority of the voting board members constitutes a quorum. If​ 9.29 there is a vacancy in the membership of the board, a majority of the remaining voting​ 9.30 members of the board constitutes a quorum.​ 9​Sec. 5.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 10.1 Subd. 6. Voting. Action by the advisory board requires a majority of those present and​ 10.2 voting. All members of the advisory board, except the member appointed under subdivision​ 10.3 2, paragraph (a), clause (12), are voting members of the board.​ 10.4 Subd. 7. Meetings. The advisory board must meet at least two times per year and may​ 10.5 meet more frequently upon ten days' written notice at the request of the chair or a majority​ 10.6 of its members.​ 10.7 Subd. 8. Open meetings. Meetings of the board must comply with chapter 13D.​ 10.8 Subd. 9. Chair. At its initial meeting, and every two years thereafter, the advisory board​ 10.9 must elect a chair and vice-chair from among its members.​ 10.10 Subd. 10. Administrative and operating support. The commissioner must provide​ 10.11 administrative and operating support to the advisory board and may contract with a third-party​ 10.12 facilitator to assist in administering the activities of the advisory board.​ 10.13 Subd. 11. Conflict of interest policies. The commissioner must assist the advisory board​ 10.14 in developing policies and procedures governing the disclosure of actual or perceived​ 10.15 conflicts of interest that advisory board members may have as a result of their employment​ 10.16 or financial holdings of themselves or of family members. Each advisory board member is​ 10.17 responsible for reviewing the conflict of interest policies and procedures. An advisory board​ 10.18 member must disclose any instance of actual or perceived conflicts of interest at each meeting​ 10.19 of the advisory board at which recommendations regarding stewardship plans, programs,​ 10.20 operations, or activities are made by the advisory board.​ 10.21 Sec. 6. [115A.1445] COMMISSIONER RESPONSIBILITIES.​ 10.22 The commissioner has the following duties:​ 10.23 (1) to appoint the initial membership of the advisory board by January 1, 2025, in​ 10.24 accordance with section 115A.1444;​ 10.25 (2) to provide administrative and operating support to the advisory board, as required​ 10.26 by section 115A.1444, subdivision 10;​ 10.27 (3) to complete an initial needs assessment by December 31, 2026, and to update the​ 10.28 needs assessment every five years thereafter, in accordance with the requirements of section​ 10.29 115A.1450;​ 10.30 (4) to approve stewardship plans and amendments to stewardship plans in accordance​ 10.31 with section 115A.1451;​ 10​Sec. 6.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 11.1 (5) to provide a list of covered materials that are deemed recyclable or compostable to​ 11.2 all producer responsibility organizations by March 1, 2027, and at least every three years​ 11.3 thereafter, in accordance with the requirements of section 115A.1453;​ 11.4 (6) to post on the agency's website:​ 11.5 (i) producer responsibility organizations' registration materials, including all information​ 11.6 submitted under section 115A.1443, subdivision 1;​ 11.7 (ii) the names of producers and brands that are not in compliance with section 115A.1448;​ 11.8 (iii) the most recent needs assessment and all past needs assessments;​ 11.9 (iv) any stewardship plan, amendment, or reports submitted by a producer responsibility​ 11.10 organization under sections 115A.1451 and 115A.1456 that are in draft form during the​ 11.11 public comment period;​ 11.12 (v) the list of recyclable or compostable covered materials developed by the commissioner​ 11.13 under section 115A.1453;​ 11.14 (vi) links to producer responsibility organization websites;​ 11.15 (vii) comments of the public, advisory board, and producer responsibility organizations​ 11.16 on the documents listed in items (ii), (iii), (iv), and (vii), and the responses of the​ 11.17 commissioner to those comments; and​ 11.18 (viii) links to proposed and adopted rules implementing this act;​ 11.19 (7) to require and select independent auditors to perform annual audits of each producer​ 11.20 responsibility organization;​ 11.21 (8) to consider and respond in writing to all written comments received from the advisory​ 11.22 board; and​ 11.23 (9) to facilitate a dispute resolution process for disputes related to reimbursements, as​ 11.24 provided for in section 115A.1455.​ 11.25 Sec. 7. [115A.1446] PRODUCER RESPONSIBILITY ADVISORY BOARD​ 11.26 RESPONSIBILITIES.​ 11.27 The Producer Responsibility Advisory Board has the following duties:​ 11.28 (1) to convene its initial meeting by March 1, 2025;​ 11​Sec. 7.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 12.1 (2) to consult with the commissioner regarding the scope of the needs assessment and​ 12.2 to provide written comments on needs assessments, in accordance with section 115A.1450,​ 12.3 subdivision 2;​ 12.4 (3) to advise on the development of stewardship plans and amendments to stewardship​ 12.5 plans under section 115A.1451;​ 12.6 (4) to submit comments to producer responsibility organizations and to the commissioner​ 12.7 on any matter relevant to the administration of this act; and​ 12.8 (5) to provide written comments to the commissioner during any rulemaking process​ 12.9 undertaken by the commissioner under section 115A.1459.​ 12.10 Sec. 8. [115A.1447] PRODUCER RESPONSIBILITY ORGANIZATION​ 12.11 RESPONSIBILITIES.​ 12.12 A producer responsibility organization has the following duties:​ 12.13 (1) to annually register with the commissioner, in accordance with section 115A.1443;​ 12.14 (2) to submit a stewardship plan to the commissioner by March 1, 2028, and every five​ 12.15 years thereafter, in accordance with section 115A.1451;​ 12.16 (3) to implement stewardship plans approved by the commissioner under section​ 12.17 115A.1451 and to comply with the requirements of this act;​ 12.18 (4) to forward upon receipt from the commissioner the list of covered materials that are​ 12.19 deemed recyclable or compostable to all service providers that participate in a stewardship​ 12.20 plan administered by the producer responsibility organization;​ 12.21 (5) to collect producer fees in accordance with section 115A.1454;​ 12.22 (6) to submit the reports required by section 115A.1456;​ 12.23 (7) to ensure that producers operating under a stewardship plan administered by the​ 12.24 producer responsibility organization comply with the requirements of the stewardship plan​ 12.25 and with this act;​ 12.26 (8) to expel a producer from the producer responsibility organization if efforts to return​ 12.27 the producer to compliance with the plan or with the requirements of this act are unsuccessful.​ 12.28 The producer responsibility organization must notify the commissioner when a producer​ 12.29 has been expelled under this clause;​ 12.30 (9) to consider and respond in writing to comments received from the advisory board,​ 12.31 including justifications for not incorporating any recommendations;​ 12​Sec. 8.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 13.1 (10) to provide producers with information regarding state and federal laws that prohibit​ 13.2 the presence of toxic substances in covered materials, including sections 115A.965, 116.943,​ 13.3 325F.075, 325F.172 to 325F.175, 325F.176 to 325F.179, and all laws prohibiting toxic​ 13.4 substances in covered materials;​ 13.5 (11) to maintain a website in accordance with section 115A.1457;​ 13.6 (12) to notify the commissioner within 30 days if a change is made to the contact​ 13.7 information for a person responsible for implementing the stewardship plan, a change to​ 13.8 the board members, or a change to the executive director;​ 13.9 (13) to assist service providers in identifying and using responsible markets;​ 13.10 (14) to ensure statewide coverage of and access to the program operated under this act,​ 13.11 including access to collection services for covered materials on the recyclable materials list​ 13.12 established pursuant to section 115A.1453, at no cost to all single-family residences,​ 13.13 multifamily residences, and political subdivisions arranging for collection of recyclable​ 13.14 materials from public places; and​ 13.15 (15) to reimburse materials recovery facilities and composting facilities for the costs of​ 13.16 processing covered materials generated from all single-family residences, multifamily​ 13.17 residences, public places, and commercial, industrial, and institutional facilities in the state.​ 13.18 Sec. 9. [115A.1448] PRODUCER RESPONSIBILITIES.​ 13.19 Subdivision 1. Registration required; prohibition of sale. (a) Once one or more​ 13.20 producer responsibility organizations have registered under section 115A.1443, a producer​ 13.21 must not operate unless it is a member of a producer responsibility organization.​ 13.22 (b) After January 1, 2029, no producer may sell, offer for sale, or distribute covered​ 13.23 materials in the state, either separately or when used to package another product, unless the​ 13.24 producer operates under a written agreement with a producer responsibility organization to​ 13.25 operate under an approved stewardship plan.​ 13.26 Subd. 2. Duties. A producer has the following duties:​ 13.27 (1) to ensure that all covered materials sold or offered for sale in the state after January​ 13.28 1, 2032, are:​ 13.29 (i) capable of being managed by a reuse system, are recyclable, or are compostable; and​ 13.30 (ii) included on the recyclables or compostables list established under section 115A.1453​ 13.31 or are included in an alternative collection system approved as part of a stewardship plan​ 13.32 under section 115A.1451;​ 13​Sec. 9.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 14.1 (2) to implement the requirements of the stewardship plan under which the producer​ 14.2 operates and to comply with the requirements of this act; and​ 14.3 (3) to pay producer fees in accordance with section 115A.1454.​ 14.4 Sec. 10. [115A.1449] SERVICE PROVIDER RESPONSIBILITIES.​ 14.5 A service provider has the following duties:​ 14.6 (1) to collect and manage covered materials in the state pursuant to contractual agreements​ 14.7 with a producer responsibility organization that are entered into under an approved​ 14.8 stewardship plan;​ 14.9 (2) if the service provider is a political subdivision, to provide at least a one-year advance​ 14.10 notice to the producer responsibility organization if the political subdivision plans to cease​ 14.11 acting as a service provider; and​ 14.12 (3) if a service provider manages covered materials on the compostable materials list​ 14.13 established pursuant to section 115A.1453, to complete annual sorts to estimate the level​ 14.14 of covered compostable materials compared to all incoming source-separated compostable​ 14.15 materials and to estimate the level of contamination of incoming covered materials before​ 14.16 processing for composting.​ 14.17 Sec. 11. [115A.1450] NEEDS ASSESSMENT.​ 14.18 Subdivision 1. Needs assessment required. By December 31, 2026, and every five​ 14.19 years thereafter, the commissioner must complete a statewide needs assessment in accordance​ 14.20 with this section.​ 14.21 Subd. 2. Input from interested parties. In conducting a needs assessment, the​ 14.22 commissioner must:​ 14.23 (1) 22 months prior to the date by which the needs assessment is due, initiate a​ 14.24 consultation process to obtain recommendations from the advisory board, political​ 14.25 subdivisions, service providers, producer responsibility organizations, and other interested​ 14.26 parties regarding the type and scope of information that should be collected and analyzed​ 14.27 in the statewide needs assessment required by this section;​ 14.28 (2) 18 months prior to the date by which the needs assessment is due, contract with an​ 14.29 independent third party to conduct the needs assessment; and​ 14.30 (3) 60 days prior to finalizing the needs assessment, make the draft needs assessment​ 14.31 available for comment by the advisory board, producer responsibility organizations, and​ 14​Sec. 11.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 15.1 the public. The commissioner must respond in writing to the comments and recommendations​ 15.2 of the advisory board and producer responsibility organizations within 30 days.​ 15.3 Subd. 3. Content of needs assessment. A needs assessment must include at least the​ 15.4 following:​ 15.5 (1) an evaluation of the performance of:​ 15.6 (i) existing waste reduction, reuse, recycling, and composting efforts for each covered​ 15.7 materials type, as applicable, including collection rates, recycling rates, composting rates,​ 15.8 and reuse rates for each covered materials type;​ 15.9 (ii) overall rates of recycling and composting for all covered materials; and​ 15.10 (iii) the extent to which postconsumer recycled content is incorporated into each covered​ 15.11 materials type, as applicable;​ 15.12 (2) an evaluation of a representative sample of management of covered materials with​ 15.13 mixed municipal solid waste, as source-separated recyclable materials, and as​ 15.14 source-separated compostable materials as received by waste management, recycling, and​ 15.15 composting facilities in the state, and relevant findings from any publicly available waste​ 15.16 stream evaluations conducted within the previous year, to evaluate the amount and portion​ 15.17 of covered materials being disposed of that would otherwise be recyclable or compostable;​ 15.18 (3) proposals for a range of potential performance targets as applicable to each covered​ 15.19 materials type to be accomplished within a five-year time frame in multiple units of​ 15.20 measurement, including but not limited to unit-based, weight-based, and volume-based, for​ 15.21 each of the following:​ 15.22 (i) waste reduction;​ 15.23 (ii) reuse;​ 15.24 (iii) recycling;​ 15.25 (iv) composting; and​ 15.26 (v) postconsumer recycled content;​ 15.27 (4) information to be considered in determining whether a covered materials type is​ 15.28 reusable, recyclable, or compostable, including its potential use as a marketable feedstock;​ 15.29 (5) proposed plans and metrics for how to measure progress in achieving performance​ 15.30 targets and an evaluation of options for third-party verification of activities to meet​ 15.31 obligations of this act;​ 15​Sec. 11.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 16.1 (6) an inventory of the current system including:​ 16.2 (i) infrastructure, capacity, performance, funding level, and method and sources of​ 16.3 financing for the existing reuse, collection, transportation, processing, recycling, and​ 16.4 composting systems for covered materials operating in the state; and​ 16.5 (ii) availability and cost of reuse, recycling, and composting services for covered materials​ 16.6 at single-family residences, multifamily residences, commercial facilities, industrial facilities,​ 16.7 institutional facilities, and public places, including identification of disparities in the​ 16.8 availability of these services in environmental justice areas compared with other areas and​ 16.9 proposals for reducing or eliminating those disparities;​ 16.10 (7) an evaluation of investments needed to increase waste reduction, reuse, recycling,​ 16.11 and composting rates of covered materials according to proposals for performance targets​ 16.12 in clause (3), including:​ 16.13 (i) to maintain or improve operations of existing infrastructure and accounts for reuse,​ 16.14 recycling, and composting of covered materials; and​ 16.15 (ii) to expand the availability and accessibility of recycling collection services for​ 16.16 recyclable covered materials to all residents of the state at the same or comparable level of​ 16.17 convenience as collection services for mixed municipal solid waste;​ 16.18 (8) an assessment of the viability and robustness of markets for recyclable covered​ 16.19 materials and the degree to which these markets can be considered responsible markets;​ 16.20 (9) an assessment of the level of contamination of source-separated recyclable materials​ 16.21 and source-separated compostable materials that include covered materials collected for​ 16.22 recycling and composting and the impacts of contamination on recycling and composting​ 16.23 facilities, including information about:​ 16.24 (i) the presence of toxic substances in covered materials;​ 16.25 (ii) their potential impacts on human and environmental health; and​ 16.26 (iii) whether it limits one or more covered materials type from being used as a marketable​ 16.27 feedstock; and​ 16.28 (10) an assessment of current best practices to increase public awareness, educate, and​ 16.29 complete outreach activities accounting for culturally responsive materials and methods​ 16.30 and an evaluation of the efficacy of these efforts including:​ 16.31 (i) product labels as a means of informing consumers about environmentally sound​ 16.32 management of covered materials;​ 16​Sec. 11.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 17.1 (ii) how to manage covered materials in an environmentally sound manner and how to​ 17.2 access reuse, recycling, and composting services; and​ 17.3 (iii) encouraging behavior change to increase participation in reuse, recycling, and​ 17.4 composting programs.​ 17.5 Subd. 4. Needs assessment as baseline. When determining the extent to which any goal​ 17.6 or performance target under this act has been achieved, information contained in a needs​ 17.7 assessment must serve as the baseline for that determination, where applicable.​ 17.8 Sec. 12. [115A.1451] STEWARDSHIP PLAN.​ 17.9 Subdivision 1. Stewardship plan required. By March 1, 2028, and every five years​ 17.10 thereafter, a producer responsibility organization must submit a stewardship plan to the​ 17.11 commissioner that describes the proposed operation by the organization of programs to​ 17.12 fulfill the requirements of this act and that takes into account the findings of needs​ 17.13 assessments.​ 17.14 Subd. 2. Input from interested parties. A producer responsibility organization must:​ 17.15 (1) submit a draft stewardship plan to the advisory board and to the commissioner;​ 17.16 (2) make the plan available for public comment at least 60 days before submitting the​ 17.17 plan to the commissioner; and​ 17.18 (3) consider the comments and recommendations received before submitting the final​ 17.19 plan to the commissioner.​ 17.20 Subd. 3. Content of stewardship plans. A proposed stewardship plan must include at​ 17.21 least the following:​ 17.22 (1) performance targets as applicable to each covered materials type to be accomplished​ 17.23 within a five-year time as established by the commissioner in subdivision 6, paragraph (a);​ 17.24 (2) a list of covered materials proposed for collection and the method of collection to​ 17.25 be used for each, including proposals for alternative collection of covered materials not​ 17.26 included in the list established by the commissioner under section 115A.1453;​ 17.27 (3) proposals for exemptions from performance targets for covered materials that cannot​ 17.28 be waste reduced or made reusable, recyclable, or compostable due to health and safety​ 17.29 concerns;​ 17.30 (4) a plan for how the producer responsibility organization will ensure measuring of​ 17.31 recycled materials and reuse according to subdivision 6, paragraphs (c) and (d), and a​ 17​Sec. 12.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 18.1 description of how the organization will measure all other covered materials, including​ 18.2 measuring waste reduction, composting, and inclusion of postconsumer recycled content;​ 18.3 (5) a plan for adopting verifications by independent third parties, as applicable;​ 18.4 (6) a proposed budget and identification of funding needs for each of the five calendar​ 18.5 years covered by the plan, including:​ 18.6 (i) proposed producer fees and a description of the process used to calculate the proposed​ 18.7 fees, including an explanation of how the fees reflect the requirements of section 115A.1454;​ 18.8 and​ 18.9 (ii) a plan for proposed infrastructure investments, including a description of how the​ 18.10 process to offer and select opportunities will be conducted in an open, competitive, and fair​ 18.11 manner, how it will address gaps in the system not met by service providers, and a description​ 18.12 of the financial and legal instruments to be used;​ 18.13 (7) a description of activities to be undertaken during the next five calendar years, which​ 18.14 must at a minimum describe how the producer responsibility organization, acting on behalf​ 18.15 of producers, proposes to:​ 18.16 (i) minimize the environmental impacts and human health impacts of covered materials;​ 18.17 (ii) incorporate as program objectives the improved design of covered materials in​ 18.18 accordance with section 115A.1454, subdivision 1, clause (2);​ 18.19 (iii) expand and increase the convenience of reuse, collection, recycling, and composting​ 18.20 services with a preference given to the top of the waste management hierarchy defined in​ 18.21 section 115A.02;​ 18.22 (iv) provide collection of source-separated recyclable materials to single-family and​ 18.23 multifamily residences and public places in the state in jurisdictions where political​ 18.24 subdivisions do not provide these services; and​ 18.25 (v) ensure that postconsumer recycled materials are delivered to responsible markets;​ 18.26 (8) a description of how the program uses and interacts with existing collection, reuse,​ 18.27 recycling, and composting efforts and service providers;​ 18.28 (9) proposed reimbursement formulas and schedules of reimbursement rates for service​ 18.29 providers that elect to participate in the program and a description of how the formulas and​ 18.30 schedules were developed in accordance with section 115A.1455;​ 18.31 (10) proposed terms and conditions for service agreements, including proposed​ 18.32 performances standards; certification that the producer responsibility organization will treat​ 18​Sec. 12.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 19.1 data submitted by service providers as nonpublic data with service providers electing to​ 19.2 participate in the program; and templates of service agreements;​ 19.3 (11) a description of how the producer responsibility organization will contract with the​ 19.4 following types of service providers, at a minimum, to conduct the services identified in​ 19.5 the stewardship plan:​ 19.6 (i) service providers that conduct collection services for single-family and multifamily​ 19.7 residences and public places; and​ 19.8 (ii) service providers that conduct reuse, recycling, and composting services to sort,​ 19.9 remove contamination from, and prepare covered materials for reuse or to send to responsible​ 19.10 markets;​ 19.11 (12) a description of how the producer responsibility organization will provide technical​ 19.12 assistance to service providers that deliver covered materials to responsible markets;​ 19.13 (13) a discussion of technical assistance provided to producers regarding toxic substances​ 19.14 in covered materials and actions taken by producers to reduce the presence of toxic substances​ 19.15 in covered materials through proof of testing or an analytical and scientifically demonstrated​ 19.16 methodology;​ 19.17 (14) a description of how the producer responsibility organization intends to increase​ 19.18 public awareness, educate, and complete outreach activities accounting for culturally​ 19.19 responsive materials and methods and evaluate the efficacy of these efforts including:​ 19.20 (i) assist producers in improving product labels as a means of informing consumers​ 19.21 about environmentally sound management of covered materials;​ 19.22 (ii) how to manage covered materials in an environmentally sound manner and how to​ 19.23 access reuse, recycling, and composting services; and​ 19.24 (iii) encourage behavior change to increase participation in reuse, recycling, and​ 19.25 composting programs;​ 19.26 (15) a summary of consultations held with the advisory board and other stakeholders to​ 19.27 provide input to the stewardship plan, a list of recommendations that were incorporated into​ 19.28 the stewardship plan as a result, and a list of rejected recommendations and the reasons for​ 19.29 rejection; and​ 19.30 (16) strategies to incorporate findings from any relevant studies required by the​ 19.31 legislature.​ 19​Sec. 12.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 20.1 Subd. 4. Approval. (a) The commissioner must review a stewardship plan and approve,​ 20.2 propose modifications to, or reject it within 90 days of receipt, providing reasons for proposed​ 20.3 modifications or rejection in writing to the producer responsibility organization that submitted​ 20.4 it.​ 20.5 (b) The producer responsibility organization must submit a revised stewardship plan, if​ 20.6 necessary, within 60 days of receiving the commissioner's decision. The commissioner must​ 20.7 review a revised stewardship plan within 45 days of receipt. The commissioner may require​ 20.8 submission of additional revised stewardship plans until a revised stewardship plan is​ 20.9 approved.​ 20.10 (c) Once approved, a stewardship plan remains in effect for five years, as amended, or​ 20.11 until a subsequent stewardship plan is approved.​ 20.12 Subd. 5. Amendment. (a) A producer responsibility organization may file a proposed​ 20.13 amendment to a stewardship plan with the commissioner at any time but must submit the​ 20.14 proposed amendment to the advisory board for review at least 60 days prior to filing the​ 20.15 amendment request, and the commissioner must make the proposed amendment available​ 20.16 for public comment during that period. The commissioner must review an amendment and​ 20.17 approve, modify, or reject the proposed amendment within 45 days of receipt. A producer​ 20.18 responsibility organization may not change operations under an approved stewardship plan​ 20.19 without the commissioner's written approval.​ 20.20 (b) Upon recommendation by the advisory board, or upon the commissioner's own​ 20.21 initiative, the commissioner may require an amendment to a stewardship plan if the​ 20.22 commissioner determines that an amendment is necessary to ensure that the producer​ 20.23 responsibility organization maintains progress toward meeting annual performance targets​ 20.24 and other objectives of a stewardship plan.​ 20.25 Subd. 6. Performance targets. (a) The commissioner must establish performance targets​ 20.26 based on the needs assessment for any stewardship plan approved under this section.​ 20.27 Performance targets must include targets for waste reduction, reuse, recycling, composting,​ 20.28 and postconsumer recycled content by covered materials type that are to be achieved by the​ 20.29 end of the stewardship plan's term. The commissioner must select the unit that is most​ 20.30 appropriate to measure each performance target as informed by the needs assessment.​ 20.31 (b) Notwithstanding subdivision 3, clause (4), the commissioner may require that a​ 20.32 producer responsibility organization obtain third-party certification that certain recycling​ 20.33 and reuse standards have been met in lieu of establishing targets under paragraphs (c) and​ 20​Sec. 12.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 21.1 (d). The commissioner must provide a producer responsibility organization with notice of​ 21.2 at least one year prior to requiring use of third-party certification under this paragraph.​ 21.3 (c) Recycling targets established in a stewardship plan must provide for measuring to​ 21.4 be the amount of recycled material to be at the point at which material leaves a material​ 21.5 recovery facility or, if it is source-separated and does not require processing at a material​ 21.6 recovery facility, at the point at which material arrives at a recycling facility to be sent to​ 21.7 or used at a responsible market. Measurement must remove an estimate of contamination​ 21.8 documented by the facility. Measuring must take into consideration:​ 21.9 (1) whether the material is a marketable commodity stream meeting industry​ 21.10 specifications for recycling and, if collected with other source-separated recyclable materials,​ 21.11 whether it can be sorted into defined marketable commodity streams that meet industry​ 21.12 specifications;​ 21.13 (2) that measurement excludes uses for fuel or energy capture;​ 21.14 (3) the extent to which the covered material is technically and economically feasible to​ 21.15 collect and recycle;​ 21.16 (4) that the covered material must comply with sections 115A.965, 116.943, 325F.075,​ 21.17 325F.172 to 325F.179, and all other laws pertaining to toxic substances in covered materials;​ 21.18 and​ 21.19 (5) other criteria determined by the commissioner.​ 21.20 (d) Source reduction targets established in a stewardship plan must provide for the​ 21.21 measurement of the amount of source reduction of covered materials in a manner that:​ 21.22 (1) is sufficient to determine the extent to which the amount of material used for a covered​ 21.23 material is eliminated beyond what is necessary to efficiently deliver a product without​ 21.24 damage or spoilage, or other means of covered material redesign to reduce overall material​ 21.25 use, without compromising the ability for the covered material to be reused, recycled or​ 21.26 composted;​ 21.27 (2) excludes applications when a nonplastic material is to be replaced by a plastic material,​ 21.28 unless that plastic material is a compostable covered material;​ 21.29 (3) excludes light-weighting packaging to a point where it interferes with its recyclability;​ 21.30 and​ 21.31 (4) meets other criteria as determined by the commissioner.​ 21​Sec. 12.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 22.1 (e) Reuse targets established in a stewardship plan must provide for measuring to be the​ 22.2 amount of reusable covered materials to be at the point at which reusable covered materials​ 22.3 meet the following criteria as demonstrated by the producer and approved by the​ 22.4 commissioner:​ 22.5 (1) the average minimum number of cycles of reuses within a recognized reuse system​ 22.6 or the number of times an item must be reused for it to have lower life cycle impacts than​ 22.7 nonreusable alternatives is reached;​ 22.8 (2) the demonstrated or research-based anticipated return rate of the covered material​ 22.9 to the reuse system is achieved; and​ 22.10 (3) other criteria demonstrated by the commissioner.​ 22.11 (f) For other targets, the producer responsibility organization must propose a calculation​ 22.12 point for review and approval as part of the stewardship plan based on findings from the​ 22.13 needs assessment.​ 22.14 Subd. 7. Statewide goals. (a) The commissioner must ensure that performance targets​ 22.15 incorporated into stewardship plans approved under subdivision 6 will, in the aggregate,​ 22.16 result in achievement of the following goals by the end of the year indicated:​ 22.17 (1) by 2033:​ 22.18 (i) 65 percent of covered materials by weight sold into the state must be recycled or​ 22.19 composted;​ 22.20 (ii) ten percent of the number of units of packaging sold into the state must be returned​ 22.21 to an established reuse system;​ 22.22 (iii) the weight of covered materials sold in the state must be source reduced by 15​ 22.23 percent, compared to levels identified in the initial needs estimate; and​ 22.24 (iv) all covered materials sold, offered for sale, or distributed for sale in this state must​ 22.25 contain at least ten percent postconsumer recycled content, with all covered materials​ 22.26 containing an overall average of at least 30 percent; and​ 22.27 (2) by 2038:​ 22.28 (i) 75 percent of covered materials by weight sold into the state must be recycled or​ 22.29 composted;​ 22.30 (ii) 20 percent of the number of units of packaging sold into the state must be returned​ 22.31 to an established reuse system;​ 22​Sec. 12.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 23.1 (iii) the weight of covered materials sold in the state must be source reduced by 25​ 23.2 percent, compared to levels identified in the initial needs estimate; and​ 23.3 (iv) all covered materials sold, offered for sale, or distributed for sale in this state must​ 23.4 contain at least 30 percent postconsumer recycled content, with all covered products​ 23.5 containing an overall average of at least 50 percent.​ 23.6 (b) The commissioner may adjust any goal set forth in paragraph (a) by no more than​ 23.7 five percent but must submit the proposed adjustment to the advisory board and consider​ 23.8 the board's recommendations before making the adjustment.​ 23.9 Sec. 13. [115A.1453] RECYCLABLE OR COMPOSTABLE COVERED​ 23.10 MATERIALS LISTS.​ 23.11 Subdivision 1. List required. By March 1, 2027, and at least every three years thereafter,​ 23.12 the commissioner must complete a list of covered materials determined to be recyclable or​ 23.13 compostable through a curbside or equivalent collection system where covered materials​ 23.14 are commingled into a recyclables stream and a separate compostables stream in accordance​ 23.15 with this section and must provide the list to all producer responsibility organizations.​ 23.16 Subd. 2. Input from interested parties; development of criteria. The commissioner​ 23.17 must consult with the advisory board, producer responsibility organizations, service providers,​ 23.18 political subdivisions, and other interested parties to develop criteria for determining which​ 23.19 covered materials are recyclable and compostable through a curbside or equivalent collection​ 23.20 system where covered materials are commingled into a recyclables stream and a separate​ 23.21 compostables stream. For recycling, the covered material must meet the criteria in section​ 23.22 115A.1451, subdivision 6, paragraph (c). The criteria must include:​ 23.23 (1) the technical and economic feasibility of recycling or composting each covered​ 23.24 material;​ 23.25 (2) the need for and cost of any specialized equipment required as part of the recycling​ 23.26 or composting process;​ 23.27 (3) a requirement that the recycling or composting technology is available to no less​ 23.28 than 60 percent of the population in the metropolitan area and no less than 60 percent of​ 23.29 the population outside the metropolitan area;​ 23.30 (4) a requirement that if a covered material is collected for recycling, the material type​ 23.31 and form is regularly sorted and aggregated into defined streams for recycling processes or​ 23.32 the package format falls into a relevant Institution of Scrap Recycling Industries specification;​ 23​Sec. 13.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 24.1 (5) 75 percent of covered materials type by unit is in a similar format as other covered​ 24.2 materials in that category and can be managed by recycling or managed by composting;​ 24.3 (6) a requirement that if a covered material collected for recycling is made of plastic,​ 24.4 the covered material must be designed to ensure it is recyclable or compostable and does​ 24.5 not include any components, inks, adhesives, or labels that interfere with the recycling or​ 24.6 composting process;​ 24.7 (7) a requirement that a covered material complies with sections 115A.965, 116.943,​ 24.8 325F.075, 325F.172 to 325F.179, and all other laws pertaining to toxic substances in covered​ 24.9 materials; and​ 24.10 (8) other criteria determined by the commissioner.​ 24.11 Subd. 3. Amendment. The commissioner may amend a list completed under this section​ 24.12 at any time and must provide amended lists to producer responsibility organizations as soon​ 24.13 as possible after adopting an amendment. Producer responsibility organizations must provide​ 24.14 amended lists to service providers as soon as possible after receiving the amendment and​ 24.15 work to incorporate changes in relevant service provider agreements and operations within​ 24.16 a year.​ 24.17 Sec. 14. [115A.1454] PRODUCER FEES.​ 24.18 Subdivision 1. Annual fee. A producer responsibility organization must annually collect​ 24.19 a fee from each producer that must:​ 24.20 (1) be based on the total amount of covered materials each producer sells, offers for sale,​ 24.21 or distributes in the state in the prior year calculated on a per-unit basis, such as per ton, per​ 24.22 item, or another unit of measurement;​ 24.23 (2) incentivize using materials and design attributes that reduce the environmental impacts​ 24.24 and human health impacts of covered materials by the following methods:​ 24.25 (i) eliminating the presence of toxic substances;​ 24.26 (ii) reducing the amount of packaging per individual covered material that is necessary​ 24.27 to efficiently deliver a product without damage or spoilage without reducing its ability to​ 24.28 be recycled or reducing the amount of paper used to manufacture individual paper products;​ 24.29 (iii) increasing covered materials managed in a reuse system;​ 24.30 (iv) enhancing recyclability or compostability of a covered material;​ 24​Sec. 14.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 25.1 (v) increasing the proportion of postconsumer recycled content in covered materials;​ 25.2 and​ 25.3 (vi) increasing the amount of inputs derived from renewable and sustainable sources;​ 25.4 (3) discourage using materials and design attributes in a producer's covered materials​ 25.5 whose environmental impacts and human health impacts, as determined by the commissioner,​ 25.6 can be reduced by the methods listed under clause (2);​ 25.7 (4) prioritize reuse by charging covered materials that are managed through a reuse​ 25.8 system only once, upon initial entry into the marketplace, and by applying the lowest fee​ 25.9 to these covered materials; and​ 25.10 (5) generate revenue sufficient to pay in full:​ 25.11 (i) the annual registration fee required under section 115A.1443;​ 25.12 (ii) financial obligations to complete activities described in an approved stewardship​ 25.13 plan and to reimburse service providers under agreements in section 115A.1455;​ 25.14 (iii) the operating costs of the producer responsibility organization; and​ 25.15 (iv) for the establishment and maintenance of a financial reserve that is sufficient to​ 25.16 operate the program in a fiscally prudent and responsible manner.​ 25.17 Subd. 2. Overcollections. Revenue collected under this section that exceeds the amount​ 25.18 needed to pay the costs described in subdivision 1, clause (5), must be used to improve or​ 25.19 enhance program outcomes or to reduce producer fees in accordance with provisions of an​ 25.20 approved stewardship plan.​ 25.21 Subd. 3. Prohibited conduct. (a) Fees collected under this section may not be used for​ 25.22 lobbying, as defined in section 3.084, subdivision 1.​ 25.23 (b) A person may not charge a point-of-sale or point-of-collection fee for services that​ 25.24 are provided under an approved stewardship plan, except that this paragraph does not prohibit​ 25.25 charging a fee that is:​ 25.26 (1) a deposit made in connection with a product's reuse or recycling that can be redeemed​ 25.27 by the consumer; or​ 25.28 (2) required by a political subdivision to encourage waste reduction, reuse, recycling,​ 25.29 or composting.​ 25​Sec. 14.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 26.1 Sec. 15. [115A.1455] SERVICE PROVIDER AGREEMENTS; REIMBURSEMENT​ 26.2 RATES.​ 26.3 Subdivision 1. Service provider agreements required. (a) The terms and conditions​ 26.4 of the provision of reuse, collection, recycling, or composting services under an approved​ 26.5 stewardship plan must be established under a service agreement between a producer​ 26.6 responsibility organization and a service provider. Each agreement must:​ 26.7 (1) establish strong labor standards and work safety practices, including but not limited​ 26.8 to safety programs, health benefits, and living wages; and​ 26.9 (2) require the service provider to meet established performance standards.​ 26.10 (b) For service providers collecting recyclable covered materials and compostable covered​ 26.11 materials, agreements must also include the following:​ 26.12 (1) a requirement to maintain or increase the level of convenience or service quality that​ 26.13 was provided by service providers before this act was enacted; and​ 26.14 (2) a requirement that the service provider accept all the materials on the list of recyclable​ 26.15 or compostable materials established by the commissioner under section 115A.1453.​ 26.16 (c) For service providers sorting recyclable covered materials, agreements must also​ 26.17 include the following:​ 26.18 (1) minimum capture rates, maximum processing residual rates, and minimum bale​ 26.19 quality;​ 26.20 (2) demonstrations that materials have been sent to responsible markets; and​ 26.21 (3) a requirement that the service provider collect all the materials on the list of recyclable​ 26.22 materials established by the commissioner under section 115A.1453.​ 26.23 (d) For service providers managing compostable covered materials, agreements must​ 26.24 ensure that service providers accept all the materials on the list of compostable materials​ 26.25 established by the commissioner under section 115A.1453.​ 26.26 Subd. 2. Collection of recyclables.If a political subdivision operates as a service provider​ 26.27 to households or public spaces in its jurisdiction for the collection of all recyclable materials​ 26.28 identified on the list established under 115A.1453, the producer responsibility organization​ 26.29 must offer a service provider agreement to that political subdivision. The political subdivision​ 26.30 may or may not choose to become party to a service agreement. If a household does not​ 26.31 have access to services for collection of all recyclable materials on the list established under​ 26.32 115A.1453, the producer responsibility organization must ensure that collection service is​ 26​Sec. 15.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 27.1 available to the household through another service provider. The producer responsibility​ 27.2 organization may enter into a service agreement with a service provider to ensure service​ 27.3 or otherwise document that the service is available from a service provider that opts not to​ 27.4 enter into a service agreement.​ 27.5 Subd. 3. Bidding processes. (a) A producer responsibility organization must use open,​ 27.6 competitive, and fair procurement practices when entering into agreements with service​ 27.7 providers that are not political subdivisions, except that preference must be given to existing​ 27.8 facilities, providers of services, and accounts in the state for reuse, collection, recycling,​ 27.9 and composting of covered materials.​ 27.10 (b) Agreements between a producer responsibility organization and a political subdivision​ 27.11 that acts as a service provider within its jurisdiction must include requirements that the​ 27.12 political subdivision use open, competitive, and fair procurement practices to obtain those​ 27.13 services, or otherwise follow state law regarding authorities allowed in the procurement of​ 27.14 such services.​ 27.15 Subd. 4. Reimbursement rates. Each service agreement must include reimbursement​ 27.16 rates for services that are based on formulas that:​ 27.17 (1) incorporate relevant cost information identified by the needs assessment;​ 27.18 (2) reflect conditions that affect reuse, collection, recycling, and composting costs in​ 27.19 the region or jurisdiction in which the services are provided, including but not limited to:​ 27.20 (i) the number and size of households;​ 27.21 (ii) population density;​ 27.22 (iii) collections methods employed;​ 27.23 (iv) distance to consolidation or transfer facilities, reuse, recycling, or composting​ 27.24 facilities, or to responsible markets; and​ 27.25 (v) other factors that may contribute to regional or jurisdictional cost differences;​ 27.26 (3) reflect administrative costs of service providers, including education, public awareness​ 27.27 campaigns, and outreach program costs as applicable;​ 27.28 (4) reflect planned capital improvements to facilities and equipment costs;​ 27.29 (5) reflect the cost of managing contamination present in source-separated recyclable​ 27.30 materials and source-separated compostable materials; and​ 27​Sec. 15.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 28.1 (6) reflect the proportion of covered compostable materials within all source-separated​ 28.2 compostable materials collected or managed through composting.​ 28.3 Subd. 5. Section does not affect local government authority. Nothing in this section​ 28.4 shall be construed to require a political subdivision to agree to operate under a stewardship​ 28.5 plan, nor does it restrict the authority of a political subdivision to provide waste management​ 28.6 services to residents or to contract with any entity to provide waste management services.​ 28.7 Sec. 16. [115A.1456] REPORTING.​ 28.8 Subdivision 1. Producer responsibility organization annual report. (a) By July 1,​ 28.9 2031, and each May 1 thereafter, a producer responsibility organization must submit a​ 28.10 written report to the commissioner that contains, at a minimum, the following information​ 28.11 for the previous calendar year:​ 28.12 (1) the amount of covered materials sold, offered for sale, or distributed in the state, by​ 28.13 each covered materials type, reported in the same units used to establish fees under section​ 28.14 115A.1454, subdivision 1, clause (1);​ 28.15 (2) progress toward the performance targets reported in the same units used to establish​ 28.16 producer fees under section 115A.1454, subdivision 1, clause (1), and reported statewide​ 28.17 and for each county including:​ 28.18 (i) the amount of covered materials successfully waste reduced, reused, recycled, and​ 28.19 composted by covered materials type and collection method; and​ 28.20 (ii) verification by an independent third party, if available, of activities to meet obligations​ 28.21 of this act;​ 28.22 (3) the total cost to implement the program and a detailed description of program​ 28.23 expenditures including:​ 28.24 (i) the total amount of producer fees collected in the current calendar year; and​ 28.25 (ii) a description of infrastructure investments made during the previous year;​ 28.26 (4) a copy of a financial audit of program operations conducted by an independent third​ 28.27 party approved by the commissioner;​ 28.28 (5) a description of program performance problems that emerged in specific locations​ 28.29 and efforts taken or proposed by the producer responsibility organization to address them;​ 28.30 (6) a discussion of technical assistance provided to producers regarding toxic substances​ 28.31 in covered materials and actions taken by producers to reduce the presence of toxic substances​ 28​Sec. 16.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 29.1 in covered materials through proof of testing or an analytical and scientifically demonstrated​ 29.2 methodology;​ 29.3 (7) a description of public awareness, education, and outreach activities undertaken​ 29.4 including any evaluations conducted of their efficacy, plans for next calendar year's activities,​ 29.5 and an evaluation of the process established by the producer responsibility organization to​ 29.6 answer questions from consumers regarding collection, recycling, composting, and reuse​ 29.7 activities;​ 29.8 (8) a summary of consultations held with the advisory board and how any feedback was​ 29.9 incorporated into the report as a result of the consultations, together with a list of rejected​ 29.10 recommendations and the reasons for rejection;​ 29.11 (9) a list of any producers found to be out of compliance with this act, and actions taken​ 29.12 by the producer responsibility organization to return the producer to compliance, and​ 29.13 notification of any producers that are no longer participating in the producer responsibility​ 29.14 organization or have been expelled due to their lack of compliance; and​ 29.15 (10) any proposed amendments to the stewardship plan to improve program performance​ 29.16 or reduce costs, including changes to producer fees, infrastructure investments, or​ 29.17 reimbursement formula and rates.​ 29.18 Subd. 2. Report following unmet target. A producer responsibility organization that​ 29.19 fails to meet a performance target established in an approved stewardship plan must, within​ 29.20 90 days of filing an annual report under this section, file with the commissioner an​ 29.21 explanation of the factors contributing to the failure and propose an amendment to the​ 29.22 stewardship plan specifying changes in operations that the producer responsibility​ 29.23 organization will make that are designed to achieve the following year's targets. An​ 29.24 amendment filed under this subdivision must be reviewed and approved by the commissioner​ 29.25 in the manner specified in section 115A.1451, subdivision 5.​ 29.26 Subd. 3. Commissioner's report. By October 15, 2034, and every five years thereafter,​ 29.27 the commissioner must submit a report to the governor and to the chairs and ranking minority​ 29.28 members of the legislative committees with jurisdiction over solid waste. The report must​ 29.29 contain a summary of the operations of the Packaging Waste and Cost Reduction Act during​ 29.30 the previous five years, a summary of the needs assessment, a summary of information​ 29.31 gleaned from reports filed under subdivisions 1 and 2, recommendations for policy, statutory,​ 29.32 or regulatory changes to the program, a list of efforts undertaken by the commissioner to​ 29.33 enforce and secure compliance with this act, and any other information the commissioner​ 29.34 deems to be relevant.​ 29​Sec. 16.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 30.1 Subd. 4. Duty to cooperate. Service providers must provide producer responsibility​ 30.2 organizations with data necessary to complete the reports required by this section upon​ 30.3 request. Data provided under this paragraph is nonpublic data.​ 30.4 Sec. 17. [115A.1457] PRODUCER RESPONSIBILITY ORGANIZATION​ 30.5 WEBSITES.​ 30.6 A producer responsibility organization must maintain a website that uses best practices​ 30.7 for accessibility that contains at least:​ 30.8 (1) information regarding a process that members of the public can use to contact the​ 30.9 producer responsibility organization with questions;​ 30.10 (2) a directory of all service providers operating under the stewardship plan administered​ 30.11 by the producer responsibility organization, grouped by location or political subdivision,​ 30.12 and information about how to request service;​ 30.13 (3) registration materials submitted to the commissioner under section 115A.1443;​ 30.14 (4) the draft and approved stewardship plan and any draft and approved amendments;​ 30.15 (5) the list of recyclable and compostable materials developed by the commissioner​ 30.16 under section 115A.1453;​ 30.17 (6) the most recent needs assessment and all past needs assessments;​ 30.18 (7) annual reports filed by the producer responsibility organization;​ 30.19 (8) a link to administrative rules implementing this act; and​ 30.20 (9) comments of the advisory board on the documents listed in clauses (4) and (7), and​ 30.21 the responses of the producer responsibility organization to those comments.​ 30.22 Sec. 18. [115A.1458] ANTICOMPETITIVE CONDUCT.​ 30.23 A producer responsibility organization that arranges collection, recycling, composting,​ 30.24 or reuse services under this act may engage in anticompetitive conduct to the extent necessary​ 30.25 to plan and implement collection, recycling, composting, or reuse systems to meet the​ 30.26 obligations under this act, and is immune from liability under state laws relating to antitrust,​ 30.27 restraint of trade, and unfair trade practices.​ 30.28 Sec. 19. [115A.1459] RULEMAKING.​ 30.29 The commissioner may adopt rules to implement this act. The 18-month time limit under​ 30.30 section 14.125 does not apply to the commissioner's rulemaking authority under this section.​ 30​Sec. 19.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 31.1 Sec. 20. [115A.1460] PROVIDING INFORMATION.​ 31.2 Upon request of the commissioner for purposes of determining compliance with this​ 31.3 act, a person must furnish to the commissioner any information that the person has or may​ 31.4 reasonably obtain.​ 31.5 Sec. 21. [115A.1461] DEPOSIT RETURN SYSTEM.​ 31.6 It is the intent of the legislature that if a bottle deposit return system is enacted in the​ 31.7 future, it will be harmonized with this act in a manner that ensures that:​ 31.8 (1) materials covered in that system are exempt from this act or related financial​ 31.9 obligations are reduced;​ 31.10 (2) co-location of drop-off facilities and alternative collection sites is maximized; and​ 31.11 (3) education and outreach is integrated between the two programs.​ 31.12 Sec. 22. [115A.1462] ENFORCEMENT.​ 31.13 (a) The commissioner must enforce this act as provided under this section and sections​ 31.14 115.071 and 116.072. The commissioner or attorney general must first issue a corrective​ 31.15 order in the manner provided under section 116.072, subdivision 4, before pursuing other​ 31.16 enforcement actions. The commissioner may revoke a registration of a producer responsibility​ 31.17 organization or producer found to have violated this act.​ 31.18 (b) Except as otherwise provided in paragraph (c), a person that violates or fails to​ 31.19 perform a duty imposed by this act or any rule adopted thereunder or a term or condition​ 31.20 of any registration or permit issued is liable for a civil penalty not to exceed $25,000 per​ 31.21 violation for each day during which the violation continues.​ 31.22 (c) A producer responsibility organization or producer that violates a provision of or​ 31.23 fails to perform a duty imposed by this act, a rule adopted thereunder, or a term or condition​ 31.24 of a registration or permit issued, including requirements of a stewardship plan approved​ 31.25 by the commissioner and performance targets, is liable for a civil penalty not to exceed​ 31.26 $25,000 per violation for each day during which the violation continues. For a second​ 31.27 violation occurring within 12 months of a first violation, a producer responsibility​ 31.28 organization or producer is liable for a civil penalty not to exceed $50,000 per violation for​ 31.29 each day during which the violation continues. For a third or subsequent violation occurring​ 31.30 within 12 months of a prior violation, a producer responsibility organization or producer is​ 31.31 liable for a civil penalty not to exceed $100,000 per violation for each day during which​ 31.32 the violation continues.​ 31​Sec. 22.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 32.1 Sec. 23. [115A.1463] ELECTION OF CERTAIN INDIVIDUAL PRODUCERS TO​ 32.2 OPERATE INDEPENDENTLY.​ 32.3 Notwithstanding any provision of this act to the contrary, an individual producer who​ 32.4 represents at least five percent of the market share of covered materials sold into this state​ 32.5 by weight, or by the relevant unit of measurement established under section 115A.1451,​ 32.6 may elect to operate independently under this act instead of pursuant to a written agreement​ 32.7 with a producer responsibility organization. A producer that elects to operate independently​ 32.8 under this section must perform all of the duties of both a producer and a producer​ 32.9 responsibility organization under this act, as determined by the commissioner.​ 32.10 Sec. 24. WORKPLACE CONDITIONS AND EQUITY STUDY.​ 32.11 (a) By January 1, 2032, the commissioner must contract with an independent third party​ 32.12 to conduct a study of the recycling, composting, and reuse facilities operating in the state.​ 32.13 The study must analyze, at a minimum information about:​ 32.14 (1) working conditions, wage and benefit levels, and employment levels of minorities​ 32.15 and women at those facilities;​ 32.16 (2) barriers to ownership of recycling, composting, and reuse operations faced by women​ 32.17 and minorities;​ 32.18 (3) the degree to which residents of multifamily buildings have less convenient access​ 32.19 to recycling, composting, and reuse opportunities than those living in single-family homes;​ 32.20 (4) the degree to which environmental justice areas have access to fewer recycling,​ 32.21 composting, and reuse opportunities compared to other parts of the state;​ 32.22 (5) the degree to which programs to increase access, convenience, and education are​ 32.23 successful in raising reuse, recycling, and composting rates in areas where participation in​ 32.24 these activities is low;​ 32.25 (6) strategies to increase participation in reuse, recycling, and composting; and​ 32.26 (7) the degree to which residents and workers in environmental justice areas are impacted​ 32.27 by emissions, toxic substances, and other pollutants from solid waste facilities in comparison​ 32.28 to other areas of the state and provide recommendations to mitigate those impacts.​ 32.29 (b) The initial producer responsibility organization registered by the commissioner must​ 32.30 cover the cost of conducting the study through its annual registration fee and recommended​ 32.31 actions identified in the study must be incorporated into the future stewardship plans as​ 32.32 required under Minnesota Statutes, section 115A.1451, including adjustments to service​ 32​Sec. 24.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​ 33.1 provider agreements and reimbursements as established under Minnesota Statutes, section​ 33.2 115A.1455.​ 33.3 Sec. 25. COVERED MATERIALS POLLUTION AND CLEANUP STUDY.​ 33.4 (a) By January 1, 2032, the commissioner, in consultation with the commissioners of​ 33.5 health and natural resources, must contract with an independent third party to conduct a​ 33.6 study to identify the contribution of covered products to litter and water pollution in​ 33.7 Minnesota. The report must at a minimum:​ 33.8 (1) analyze historical and current environmental and human health impacts of littered​ 33.9 covered materials and their associated toxic substances in the environment;​ 33.10 (2) estimate the cost of cleanup and prevention; and​ 33.11 (3) provide recommendations for how to reduce and mitigate the impacts of litter in the​ 33.12 state.​ 33.13 (b) The contracted third party must consult with units of local government, the​ 33.14 commissioners of health and natural resources, and environmental justice organizations.​ 33.15 (c) The initial producer responsibility organization registered by the commissioner must​ 33.16 cover the cost of conducting the study through its annual registration fee and recommended​ 33.17 actions identified in the study must be incorporated into future stewardship plans, as required​ 33.18 under Minnesota Statutes, section 115A.1451.​ 33​Sec. 25.​ 24-06516 as introduced​02/02/24 REVISOR CKM/NS​