HF 3577

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/13/2024 04:47pm

A bill for an act
relating to solid waste; establishing Packaging Waste and Cost Reduction Act;
authorizing rulemaking; proposing coding for new law in Minnesota Statutes,
chapter 115A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [115A.144] SHORT TITLE.
new text end

new text begin Sections 115A.144 to 115A.1463 may be cited as the "Packaging Waste and Cost
Reduction Act."
new text end

Sec. 2.

new text begin [115A.1441] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 115A.144 to 115A.1463, the terms
in this section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Advisory board. new text end

new text begin "Advisory board" or "board" means the Producer
Responsibility Advisory Board established under section 115A.1446.
new text end

new text begin Subd. 3. new text end

new text begin Brand. new text end

new text begin "Brand" means a name, symbol, word, or mark that identifies a product
and attributes the product and its components, including packaging, to the brand owner.
new text end

new text begin Subd. 4. new text end

new text begin Brand owner. new text end

new text begin "Brand owner" means a person that owns or licenses a brand or
that otherwise has rights to market a product under the brand, whether or not the brand's
trademark is registered.
new text end

new text begin Subd. 5. new text end

new text begin Collection rate. new text end

new text begin "Collection rate" means the amount of a covered material by
covered materials type collected by service providers and transported for reuse, recycling,
or composting divided by the total amount of the type of a covered material by covered
materials type sold into the state by the relevant unit of measurement established in section
115A.1451.
new text end

new text begin Subd. 6. new text end

new text begin Compostable material. new text end

new text begin "Compostable material" means a covered material
that:
new text end

new text begin (1) meets, and is labeled to reflect that it meets, the American Society for Testing and
Materials Standard Specification for Labeling of Plastics Designed to be Aerobically
Composted in Municipal or Industrial Facilities (D6400) or its successor;
new text end

new text begin (2) meets, and is labeled to reflect that it meets, the American Society for Testing and
Materials Standard Specification for Labeling of End Items that Incorporate Plastics and
Polymers as Coatings or Additives with Paper and Other Substrates Designed to be
Aerobically Composted in Municipal or Industrial Facilities (D6868) or its successor;
new text end

new text begin (3) is comprised of only wood without any coatings or additives; or
new text end

new text begin (4) is comprised of only paper without any coatings or additives.
new text end

new text begin Subd. 7. new text end

new text begin Composting. new text end

new text begin "Composting" means the controlled microbial degradation of
source-separated compostable materials to yield a humus-like product.
new text end

new text begin Subd. 8. new text end

new text begin Composting rate. new text end

new text begin "Composting rate" means the amount of compostable covered
material that is managed through composting, divided by the total amount of compostable
covered material sold into the state by the relevant unit of measurement established in section
115A.1451.
new text end

new text begin Subd. 9. new text end

new text begin Covered material. new text end

new text begin "Covered material" means packaging and paper products
sold, offered for sale, or distributed in the state.
new text end

new text begin Subd. 10. new text end

new text begin Covered materials type. new text end

new text begin "Covered materials type" means a singular and
specific type of covered material that can be categorized based on distinguishing chemical
or physical properties, including properties that allow for a covered materials type to be
aggregated into a commonly defined discrete commodity category for purposes of reuse,
recycling, or composting, and based on similar uses in the form of a product or package.
new text end

new text begin Subd. 11. new text end

new text begin Food packaging. new text end

new text begin "Food packaging" means products supplied to or purchased
by a consumer for the express purpose of facilitating the storage, service, or consumption
of food or beverages, including plates, wraps, cups, bowls, boxes, utensils, straws, lids,
bags, foil, hinged or lidded containers, or similar containers that are sold to a retailer or a
food establishment, regardless of whether the item is used to prepackage food or beverages
for resale, filled on site with food or beverages ordered by a customer, or resold as is.
new text end

new text begin Subd. 12. new text end

new text begin Infrastructure investment. new text end

new text begin "Infrastructure investment" means an investment
by a producer responsibility organization that funds:
new text end

new text begin (1) equipment or facilities in which covered materials are prepared for recycling,
composting, or reuse;
new text end

new text begin (2) technical assistance to a producer to make changes in product design that reduce the
environmental impact of covered materials or that increase the recoverability or marketability
of covered materials for recycling, composting, or reuse; or
new text end

new text begin (3) the expansion or strengthening of demand for and use of covered materials by
responsible markets in the state or region.
new text end

new text begin Subd. 13. new text end

new text begin Living wage. new text end

new text begin "Living wage" means the minimum hourly wage necessary to
allow a person working 40 hours per week to afford basic needs as estimated by the
Department of Employment and Economic Development under section 116J.013.
new text end

new text begin Subd. 14. new text end

new text begin Material recovery facility. new text end

new text begin "Material recovery facility" means a facility that
receives, separates, and sells or otherwise distributes postconsumer materials for recycling
to responsible markets.
new text end

new text begin Subd. 15. new text end

new text begin Needs assessment. new text end

new text begin "Needs assessment" means an assessment conducted
pursuant to section 115A.1450. Except where the context requires otherwise, needs
assessment means the most recently completed needs assessment.
new text end

new text begin Subd. 16. new text end

new text begin Packaging. new text end

new text begin "Packaging" has the meaning given in section 115A.03 and
includes food packaging.
new text end

new text begin Subd. 17. new text end

new text begin Paper product. new text end

new text begin "Paper product" means a product made primarily from wood
pulp or other cellulosic fibers, except that paper product does not include bound books or
products that recycling or composting facilities will not accept because of the unsafe or
unsanitary nature of the paper product.
new text end

new text begin Subd. 18. new text end

new text begin Plastic. new text end

new text begin "Plastic" has the meaning given in section 115.01.
new text end

new text begin Subd. 19. new text end

new text begin Postconsumer recycled content. new text end

new text begin "Postconsumer recycled content" means
the portion of a product composed of postconsumer material, expressed as a percentage of
the total weight of the product.
new text end

new text begin Subd. 20. new text end

new text begin Producer. new text end

new text begin (a) "Producer" means the following:
new text end

new text begin (1) for paper products:
new text end

new text begin (i) that are magazines, newspapers, catalogs, telephone directories, or similar publications,
the producer is the publisher; and
new text end

new text begin (ii) that are other paper products, the producer is:
new text end

new text begin (A) the person that manufactures the paper product under the manufacturer's own brand;
new text end

new text begin (B) if the paper product is manufactured by a person other than the brand owner, the
producer of the paper product is the licensee of a brand or trademark under which the paper
product is used in a commercial enterprise, sold, offered for sale, or distributed in the state,
whether or not the trademark is registered in the state; or
new text end

new text begin (C) if there is no person described in subitem (A) or (B) located in the United States,
the producer is the person that imports the paper product into the United States for use in a
commercial enterprise that sells, offers for sale, or distributes the item in the state;
new text end

new text begin (2) for products other than paper products that are sold in packaging at a physical retail
location in this state:
new text end

new text begin (i) if the product is sold in packaging under the manufacturer's own brand, or is sold in
packaging that lacks identification of a brand, the producer is the person that manufactures
the product;
new text end

new text begin (ii) if the product is manufactured by a person other than the brand owner, the producer
is the licensee of a brand or trademark under which a packaged product is used in a
commercial enterprise, sold, offered for sale, or distributed in the state, whether or not the
trademark is registered in the state; or
new text end

new text begin (iii) if there is no person described in item (i) or (ii) located in the United States, the
producer is the person that imports the packaged product into the United States for use in
a commercial enterprise that sells, offers for sale, or distributes the product in the state;
new text end

new text begin (3) for products other than paper products sold or distributed in packaging in the state
via remote sale or distribution:
new text end

new text begin (i) if the packaging is used to directly protect or to indirectly contain the product, the
producer is the person that manufactures the packaged product;
new text end

new text begin (ii) if the packaging is used to ship the product or a group of products to a consumer,
the producer is the person that packages and ships the product or group of products; and
new text end

new text begin (iii) if the packaging is used to directly protect or to contain the product and no additional
packaging is used to ship the product, the producer is the person that manufactures the
packaged product; and
new text end

new text begin (4) for all other packaging, the producer is the person that first distributes the packaged
product in the state.
new text end

new text begin (b) Producer does not include a person that:
new text end

new text begin (1) annually sells, offers for sale, distributes, or imports in or into the state less than one
ton of covered material; and
new text end

new text begin (2) has a global gross revenue of less than $2,000,000 for the person's most recent fiscal
year.
new text end

new text begin Subd. 21. new text end

new text begin Producer responsibility organization. new text end

new text begin "Producer responsibility organization"
means a nonprofit corporation that is tax exempt under chapter 501(c)(3) of the federal
Internal Revenue Code and that is created by a group of producers to implement activities
under this act.
new text end

new text begin Subd. 22. new text end

new text begin Recycling. new text end

new text begin "Recycling" has the meaning given in section 115A.03 except that
it does not include composting.
new text end

new text begin Subd. 23. new text end

new text begin Recycling rate. new text end

new text begin "Recycling rate" means the amount of covered material, in
aggregate or by individual covered materials type, managed through recycling in a calendar
year divided by the total amount of covered materials sold into the state by the relevant unit
of measurement established in section 115A.1451.
new text end

new text begin Subd. 24. new text end

new text begin Responsible market. new text end

new text begin "Responsible market" means a materials market that:
new text end

new text begin (1) recycles, composts, or otherwise recovers materials and disposes of contaminants in
a manner that protects the environment and minimizes risks to public health and worker
health and safety;
new text end

new text begin (2) complies with all applicable federal, state, and local statutes and rules governing
environmental, health, safety, and financial responsibility;
new text end

new text begin (3) possesses all requisite licenses and permits required by government agencies;
new text end

new text begin (4) if the market operates in the state, manages waste according to the waste management
goal and priority order of waste management practices stated in section 115A.02; and
new text end

new text begin (5) minimizes adverse impacts to environmental justice areas.
new text end

new text begin Subd. 25. new text end

new text begin Reuse. new text end

new text begin "Reuse" means the return of a covered material to the marketplace and
the refilling or continued use of the covered material in the marketplace for its original
intended purpose without a change in form when the covered material is:
new text end

new text begin (1) intentionally designed and marketed to be used multiple times;
new text end

new text begin (2) designed for durability and maintenance to extend its useful life and reduce demand
for new production;
new text end

new text begin (3) supported by adequate logistics and infrastructure that provides convenient access
for return for the purpose of refilling or continued use; and
new text end

new text begin (4) compliant with all applicable state and local statutes and rules governing health and
safety.
new text end

new text begin Subd. 26. new text end

new text begin Reuse rate. new text end

new text begin "Reuse rate" means the share of units of a covered material sold
into the state in a calendar year that are deemed reusable by the commissioner in accordance
with section 115A.1451.
new text end

new text begin Subd. 27. new text end

new text begin Reusable. new text end

new text begin "Reusable" means capable of reuse.
new text end

new text begin Subd. 28. new text end

new text begin Service provider. new text end

new text begin "Service provider" means an entity that collects, transfers,
sorts, processes, or otherwise prepares covered materials for recycling by a responsible
market, for composting, or for reuse. A political subdivision that provides or that contracts
or otherwise arranges with another party to provide reuse, collection, recycling, or composting
services for covered materials within its jurisdiction may be a service provider regardless
of whether it provided similar services prior to the approval of the applicable stewardship
plan.
new text end

new text begin Subd. 29. new text end

new text begin This act. new text end

new text begin "This act" means sections 115A.144 to 115A.1463.
new text end

new text begin Subd. 30. new text end

new text begin Waste reduction or source reduction. new text end

new text begin "Waste reduction" or "source reduction"
has the meaning given in section 115A.03, except that it does not include reuse.
new text end

Sec. 3.

new text begin [115A.1442] ESTABLISHMENT OF PROGRAM.
new text end

new text begin Producers must implement and finance a statewide stewardship program for packaging
and paper products in accordance with this act that encourages packaging redesign to reduce
risks to environmental and human health and that reduces generation of covered materials
waste through waste reduction, reuse, recycling, and composting and by providing for
negotiation and execution of agreements to collect, transport, and process used covered
materials for reuse, recycling, and composting.
new text end

Sec. 4.

new text begin [115A.1443] REGISTRATION OF PRODUCER RESPONSIBILITY
ORGANIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Annual registration. new text end

new text begin (a) By January 1, 2025, and annually thereafter, a
producer responsibility organization must register with the commissioner by submitting the
following:
new text end

new text begin (1) contact information for a person responsible for implementing approved stewardship
plans;
new text end

new text begin (2) a list of all member producers that will operate under the stewardship plan
administered by the producer responsibility organization and, for each producer, a list of
all brands of the producer's covered materials sold, offered for sale, or distributed in the
state;
new text end

new text begin (3) copies of written agreements with each producer stating that each producer agrees
to operate under an approved stewardship plan administered by the producer responsibility
organization;
new text end

new text begin (4) a list of current board members and the executive director if different than the person
responsible for implementing approved stewardship plans; and
new text end

new text begin (5) payment of the annual fee required under subdivision 2.
new text end

new text begin (b) If one or more producers elects to operate independently under section 115A.1463
or more than a single producer responsibility organization is established, the producers and
producer responsibility organizations must establish a coordinating body and process to
prevent redundancy of service contracts among service providers and to ensure the efficient
delivery of waste management services. The stewardship plans of all producers operating
independently and all producer responsibility organizations must be integrated into a single
stewardship plan that covers all requirements of section 115A.1451 and encompasses all
producers when submitted to the commissioner for approval.
new text end

new text begin Subd. 2. new text end

new text begin Registration fee. new text end

new text begin (a) As part of its annual registration with the commissioner,
a producer responsibility organization must submit to the commissioner an annual fee for
the following year, as determined by the commissioner. Beginning October 1, 2028, and
annually thereafter, the commissioner must notify registered producer responsibility
organizations in writing of the amount of the fee for the following year, which must be
equitably apportioned between registered producer responsibility organizations and which
must be set at an amount anticipated to in the aggregate meet but not exceed the
commissioner's estimate of the costs required to perform the commissioner's duties as
described in section 115A.1445 and to otherwise administer, implement, and enforce this
act.
new text end

new text begin (b) The commissioner must develop and implement a process to reconcile the fees paid
by a producer responsibility organization under this subdivision with the actual costs incurred
by the agency on an annual basis, by means of credits or refunds to or additional payments
required of producer responsibility organizations, as applicable.
new text end

new text begin Subd. 3. new text end

new text begin Initial producer responsibility organization registration; implementation
fee. new text end

new text begin (a) Notwithstanding the other provisions of this section, the commissioner may not
allow registration of more than one producer responsibility organization under this section
before the first stewardship plan approved by the commissioner expires. If more than one
producer responsibility organization applies to register under this section before the first
stewardship plan is approved by the commissioner, the commissioner must establish a
process to select the producer responsibility organization that will represent producers until
the first stewardship plan expires and must return the registration fee paid by applicants
who are not selected.
new text end

new text begin (b) By October 1, 2025, and annually until the first stewardship plan is approved, the
commissioner must provide written notice to the initial producer responsibility organization
registered under this section of the commissioner's estimate of the cost of conducting the
initial needs assessment and the commissioner's costs to administer this act during the period
prior to plan approval. The producer responsibility organization must remit payment in full
for these costs to the commissioner within 45 days of receipt of this notice. The producer
responsibility organization may charge each member producer to cover the cost of its
implementation fee according to each producer's unit-, weight-, volume-, or sales-based
market share or by another method it determines to be an equitable determination of each
producer's payment obligation.
new text end

Sec. 5.

new text begin [115A.1444] ESTABLISHMENT OF PRODUCER RESPONSIBILITY
ADVISORY BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Producer Responsibility Advisory Board is established
to review all programs conducted by producer responsibility organizations under this act
and to advise the commissioner and producer responsibility organizations regarding the
implementation of this act.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The membership of the advisory board consists of persons
appointed by the commissioner as follows:
new text end

new text begin (1) two members representing manufacturers of covered materials or a statewide or
national trade association representing those manufacturers;
new text end

new text begin (2) two members representing materials recovery facilities that process covered materials,
one representing a privately owned facility and one representing a publicly owned facility;
new text end

new text begin (3) one member representing a waste hauler or a statewide association representing waste
haulers;
new text end

new text begin (4) one member representing retailers of covered materials or a statewide trade association
representing those retailers;
new text end

new text begin (5) one member representing a statewide nonprofit environmental organization;
new text end

new text begin (6) one member representing a community-based nonprofit environmental justice
organization;
new text end

new text begin (7) one member representing a waste facility that receives covered materials and transfers
them to another facility for reuse, recycling, or composting;
new text end

new text begin (8) one member representing a waste facility that receives source-separated compostable
materials for composting or a statewide trade association that represents such facilities;
new text end

new text begin (9) two members representing an entity that develops or offers for sale covered materials
that are designed for reuse and maintained through a reuse system or infrastructure or a
statewide or national trade association that represents such entities;
new text end

new text begin (10) three members representing organizations of political subdivisions;
new text end

new text begin (11) two members representing other stakeholders or additional members of interests
represented under clauses (1) to (10) as determined by the commissioner; and
new text end

new text begin (12) one member representing the commissioner.
new text end

new text begin (b) In making appointments under paragraph (a), the commissioner:
new text end

new text begin (1) may not appoint members who are state legislators or registered lobbyists; and
new text end

new text begin (2) must endeavor to appoint members from all regions of the state.
new text end

new text begin Subd. 3. new text end

new text begin Terms; removal. new text end

new text begin A member of the advisory board appointed under subdivision
2, paragraph (a), clause (12), serves at the pleasure of the commissioner. All other members
serve for a term of four years, except that the initial term for five of the initial appointees
must be two years so that membership terms are staggered. Members may be reappointed
but may not serve more than eight consecutive years. Removal of members and filling of
vacancies is governed by section 15.059, subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Members of the board must be compensated in accordance
with section 15.059, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Quorum. new text end

new text begin A majority of the voting board members constitutes a quorum. If
there is a vacancy in the membership of the board, a majority of the remaining voting
members of the board constitutes a quorum.
new text end

new text begin Subd. 6. new text end

new text begin Voting. new text end

new text begin Action by the advisory board requires a majority of those present and
voting. All members of the advisory board, except the member appointed under subdivision
2, paragraph (a), clause (12), are voting members of the board.
new text end

new text begin Subd. 7. new text end

new text begin Meetings. new text end

new text begin The advisory board must meet at least two times per year and may
meet more frequently upon ten days' written notice at the request of the chair or a majority
of its members.
new text end

new text begin Subd. 8. new text end

new text begin Open meetings. new text end

new text begin Meetings of the board must comply with chapter 13D.
new text end

new text begin Subd. 9. new text end

new text begin Chair. new text end

new text begin At its initial meeting, and every two years thereafter, the advisory board
must elect a chair and vice-chair from among its members.
new text end

new text begin Subd. 10. new text end

new text begin Administrative and operating support. new text end

new text begin The commissioner must provide
administrative and operating support to the advisory board and may contract with a third-party
facilitator to assist in administering the activities of the advisory board.
new text end

new text begin Subd. 11. new text end

new text begin Conflict of interest policies. new text end

new text begin The commissioner must assist the advisory board
in developing policies and procedures governing the disclosure of actual or perceived
conflicts of interest that advisory board members may have as a result of their employment
or financial holdings of themselves or of family members. Each advisory board member is
responsible for reviewing the conflict of interest policies and procedures. An advisory board
member must disclose any instance of actual or perceived conflicts of interest at each meeting
of the advisory board at which recommendations regarding stewardship plans, programs,
operations, or activities are made by the advisory board.
new text end

Sec. 6.

new text begin [115A.1445] COMMISSIONER RESPONSIBILITIES.
new text end

new text begin The commissioner has the following duties:
new text end

new text begin (1) to appoint the initial membership of the advisory board by January 1, 2025, in
accordance with section 115A.1444;
new text end

new text begin (2) to provide administrative and operating support to the advisory board, as required
by section 115A.1444, subdivision 10;
new text end

new text begin (3) to complete an initial needs assessment by December 31, 2026, and to update the
needs assessment every five years thereafter, in accordance with the requirements of section
115A.1450;
new text end

new text begin (4) to approve stewardship plans and amendments to stewardship plans in accordance
with section 115A.1451;
new text end

new text begin (5) to provide a list of covered materials that are deemed recyclable or compostable to
all producer responsibility organizations by March 1, 2027, and at least every three years
thereafter, in accordance with the requirements of section 115A.1453;
new text end

new text begin (6) to post on the agency's website:
new text end

new text begin (i) producer responsibility organizations' registration materials, including all information
submitted under section 115A.1443, subdivision 1;
new text end

new text begin (ii) the names of producers and brands that are not in compliance with section 115A.1448;
new text end

new text begin (iii) the most recent needs assessment and all past needs assessments;
new text end

new text begin (iv) any stewardship plan, amendment, or reports submitted by a producer responsibility
organization under sections 115A.1451 and 115A.1456 that are in draft form during the
public comment period;
new text end

new text begin (v) the list of recyclable or compostable covered materials developed by the commissioner
under section 115A.1453;
new text end

new text begin (vi) links to producer responsibility organization websites;
new text end

new text begin (vii) comments of the public, advisory board, and producer responsibility organizations
on the documents listed in items (ii), (iii), (iv), and (vii), and the responses of the
commissioner to those comments; and
new text end

new text begin (viii) links to proposed and adopted rules implementing this act;
new text end

new text begin (7) to require and select independent auditors to perform annual audits of each producer
responsibility organization;
new text end

new text begin (8) to consider and respond in writing to all written comments received from the advisory
board; and
new text end

new text begin (9) to facilitate a dispute resolution process for disputes related to reimbursements, as
provided for in section 115A.1455.
new text end

Sec. 7.

new text begin [115A.1446] PRODUCER RESPONSIBILITY ADVISORY BOARD
RESPONSIBILITIES.
new text end

new text begin The Producer Responsibility Advisory Board has the following duties:
new text end

new text begin (1) to convene its initial meeting by March 1, 2025;
new text end

new text begin (2) to consult with the commissioner regarding the scope of the needs assessment and
to provide written comments on needs assessments, in accordance with section 115A.1450,
subdivision 2;
new text end

new text begin (3) to advise on the development of stewardship plans and amendments to stewardship
plans under section 115A.1451;
new text end

new text begin (4) to submit comments to producer responsibility organizations and to the commissioner
on any matter relevant to the administration of this act; and
new text end

new text begin (5) to provide written comments to the commissioner during any rulemaking process
undertaken by the commissioner under section 115A.1459.
new text end

Sec. 8.

new text begin [115A.1447] PRODUCER RESPONSIBILITY ORGANIZATION
RESPONSIBILITIES.
new text end

new text begin A producer responsibility organization has the following duties:
new text end

new text begin (1) to annually register with the commissioner, in accordance with section 115A.1443;
new text end

new text begin (2) to submit a stewardship plan to the commissioner by March 1, 2028, and every five
years thereafter, in accordance with section 115A.1451;
new text end

new text begin (3) to implement stewardship plans approved by the commissioner under section
115A.1451 and to comply with the requirements of this act;
new text end

new text begin (4) to forward upon receipt from the commissioner the list of covered materials that are
deemed recyclable or compostable to all service providers that participate in a stewardship
plan administered by the producer responsibility organization;
new text end

new text begin (5) to collect producer fees in accordance with section 115A.1454;
new text end

new text begin (6) to submit the reports required by section 115A.1456;
new text end

new text begin (7) to ensure that producers operating under a stewardship plan administered by the
producer responsibility organization comply with the requirements of the stewardship plan
and with this act;
new text end

new text begin (8) to expel a producer from the producer responsibility organization if efforts to return
the producer to compliance with the plan or with the requirements of this act are unsuccessful.
The producer responsibility organization must notify the commissioner when a producer
has been expelled under this clause;
new text end

new text begin (9) to consider and respond in writing to comments received from the advisory board,
including justifications for not incorporating any recommendations;
new text end

new text begin (10) to provide producers with information regarding state and federal laws that prohibit
the presence of toxic substances in covered materials, including sections 115A.965, 116.943,
325F.075, 325F.172 to 325F.175, 325F.176 to 325F.179, and all laws prohibiting toxic
substances in covered materials;
new text end

new text begin (11) to maintain a website in accordance with section 115A.1457;
new text end

new text begin (12) to notify the commissioner within 30 days if a change is made to the contact
information for a person responsible for implementing the stewardship plan, a change to
the board members, or a change to the executive director;
new text end

new text begin (13) to assist service providers in identifying and using responsible markets;
new text end

new text begin (14) to ensure statewide coverage of and access to the program operated under this act,
including access to collection services for covered materials on the recyclable materials list
established pursuant to section 115A.1453, at no cost to all single-family residences,
multifamily residences, and political subdivisions arranging for collection of recyclable
materials from public places; and
new text end

new text begin (15) to reimburse materials recovery facilities and composting facilities for the costs of
processing covered materials generated from all single-family residences, multifamily
residences, public places, and commercial, industrial, and institutional facilities in the state.
new text end

Sec. 9.

new text begin [115A.1448] PRODUCER RESPONSIBILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Registration required; prohibition of sale. new text end

new text begin (a) Once one or more
producer responsibility organizations have registered under section 115A.1443, a producer
must not operate unless it is a member of a producer responsibility organization.
new text end

new text begin (b) After January 1, 2029, no producer may sell, offer for sale, or distribute covered
materials in the state, either separately or when used to package another product, unless the
producer operates under a written agreement with a producer responsibility organization to
operate under an approved stewardship plan.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin A producer has the following duties:
new text end

new text begin (1) to ensure that all covered materials sold or offered for sale in the state after January
1, 2032, are:
new text end

new text begin (i) capable of being managed by a reuse system, are recyclable, or are compostable; and
new text end

new text begin (ii) included on the recyclables or compostables list established under section 115A.1453
or are included in an alternative collection system approved as part of a stewardship plan
under section 115A.1451;
new text end

new text begin (2) to implement the requirements of the stewardship plan under which the producer
operates and to comply with the requirements of this act; and
new text end

new text begin (3) to pay producer fees in accordance with section 115A.1454.
new text end

Sec. 10.

new text begin [115A.1449] SERVICE PROVIDER RESPONSIBILITIES.
new text end

new text begin A service provider has the following duties:
new text end

new text begin (1) to collect and manage covered materials in the state pursuant to contractual agreements
with a producer responsibility organization that are entered into under an approved
stewardship plan;
new text end

new text begin (2) if the service provider is a political subdivision, to provide at least a one-year advance
notice to the producer responsibility organization if the political subdivision plans to cease
acting as a service provider; and
new text end

new text begin (3) if a service provider manages covered materials on the compostable materials list
established pursuant to section 115A.1453, to complete annual sorts to estimate the level
of covered compostable materials compared to all incoming source-separated compostable
materials and to estimate the level of contamination of incoming covered materials before
processing for composting.
new text end

Sec. 11.

new text begin [115A.1450] NEEDS ASSESSMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Needs assessment required. new text end

new text begin By December 31, 2026, and every five
years thereafter, the commissioner must complete a statewide needs assessment in accordance
with this section.
new text end

new text begin Subd. 2. new text end

new text begin Input from interested parties. new text end

new text begin In conducting a needs assessment, the
commissioner must:
new text end

new text begin (1) 22 months prior to the date by which the needs assessment is due, initiate a
consultation process to obtain recommendations from the advisory board, political
subdivisions, service providers, producer responsibility organizations, and other interested
parties regarding the type and scope of information that should be collected and analyzed
in the statewide needs assessment required by this section;
new text end

new text begin (2) 18 months prior to the date by which the needs assessment is due, contract with an
independent third party to conduct the needs assessment; and
new text end

new text begin (3) 60 days prior to finalizing the needs assessment, make the draft needs assessment
available for comment by the advisory board, producer responsibility organizations, and
the public. The commissioner must respond in writing to the comments and recommendations
of the advisory board and producer responsibility organizations within 30 days.
new text end

new text begin Subd. 3. new text end

new text begin Content of needs assessment. new text end

new text begin A needs assessment must include at least the
following:
new text end

new text begin (1) an evaluation of the performance of:
new text end

new text begin (i) existing waste reduction, reuse, recycling, and composting efforts for each covered
materials type, as applicable, including collection rates, recycling rates, composting rates,
and reuse rates for each covered materials type;
new text end

new text begin (ii) overall rates of recycling and composting for all covered materials; and
new text end

new text begin (iii) the extent to which postconsumer recycled content is incorporated into each covered
materials type, as applicable;
new text end

new text begin (2) an evaluation of a representative sample of management of covered materials with
mixed municipal solid waste, as source-separated recyclable materials, and as
source-separated compostable materials as received by waste management, recycling, and
composting facilities in the state, and relevant findings from any publicly available waste
stream evaluations conducted within the previous year, to evaluate the amount and portion
of covered materials being disposed of that would otherwise be recyclable or compostable;
new text end

new text begin (3) proposals for a range of potential performance targets as applicable to each covered
materials type to be accomplished within a five-year time frame in multiple units of
measurement, including but not limited to unit-based, weight-based, and volume-based, for
each of the following:
new text end

new text begin (i) waste reduction;
new text end

new text begin (ii) reuse;
new text end

new text begin (iii) recycling;
new text end

new text begin (iv) composting; and
new text end

new text begin (v) postconsumer recycled content;
new text end

new text begin (4) information to be considered in determining whether a covered materials type is
reusable, recyclable, or compostable, including its potential use as a marketable feedstock;
new text end

new text begin (5) proposed plans and metrics for how to measure progress in achieving performance
targets and an evaluation of options for third-party verification of activities to meet
obligations of this act;
new text end

new text begin (6) an inventory of the current system including:
new text end

new text begin (i) infrastructure, capacity, performance, funding level, and method and sources of
financing for the existing reuse, collection, transportation, processing, recycling, and
composting systems for covered materials operating in the state; and
new text end

new text begin (ii) availability and cost of reuse, recycling, and composting services for covered materials
at single-family residences, multifamily residences, commercial facilities, industrial facilities,
institutional facilities, and public places, including identification of disparities in the
availability of these services in environmental justice areas compared with other areas and
proposals for reducing or eliminating those disparities;
new text end

new text begin (7) an evaluation of investments needed to increase waste reduction, reuse, recycling,
and composting rates of covered materials according to proposals for performance targets
in clause (3), including:
new text end

new text begin (i) to maintain or improve operations of existing infrastructure and accounts for reuse,
recycling, and composting of covered materials; and
new text end

new text begin (ii) to expand the availability and accessibility of recycling collection services for
recyclable covered materials to all residents of the state at the same or comparable level of
convenience as collection services for mixed municipal solid waste;
new text end

new text begin (8) an assessment of the viability and robustness of markets for recyclable covered
materials and the degree to which these markets can be considered responsible markets;
new text end

new text begin (9) an assessment of the level of contamination of source-separated recyclable materials
and source-separated compostable materials that include covered materials collected for
recycling and composting and the impacts of contamination on recycling and composting
facilities, including information about:
new text end

new text begin (i) the presence of toxic substances in covered materials;
new text end

new text begin (ii) their potential impacts on human and environmental health; and
new text end

new text begin (iii) whether it limits one or more covered materials type from being used as a marketable
feedstock; and
new text end

new text begin (10) an assessment of current best practices to increase public awareness, educate, and
complete outreach activities accounting for culturally responsive materials and methods
and an evaluation of the efficacy of these efforts including:
new text end

new text begin (i) product labels as a means of informing consumers about environmentally sound
management of covered materials;
new text end

new text begin (ii) how to manage covered materials in an environmentally sound manner and how to
access reuse, recycling, and composting services; and
new text end

new text begin (iii) encouraging behavior change to increase participation in reuse, recycling, and
composting programs.
new text end

new text begin Subd. 4. new text end

new text begin Needs assessment as baseline. new text end

new text begin When determining the extent to which any goal
or performance target under this act has been achieved, information contained in a needs
assessment must serve as the baseline for that determination, where applicable.
new text end

Sec. 12.

new text begin [115A.1451] STEWARDSHIP PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Stewardship plan required. new text end

new text begin By March 1, 2028, and every five years
thereafter, a producer responsibility organization must submit a stewardship plan to the
commissioner that describes the proposed operation by the organization of programs to
fulfill the requirements of this act and that takes into account the findings of needs
assessments.
new text end

new text begin Subd. 2. new text end

new text begin Input from interested parties. new text end

new text begin A producer responsibility organization must:
new text end

new text begin (1) submit a draft stewardship plan to the advisory board and to the commissioner;
new text end

new text begin (2) make the plan available for public comment at least 60 days before submitting the
plan to the commissioner; and
new text end

new text begin (3) consider the comments and recommendations received before submitting the final
plan to the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Content of stewardship plans. new text end

new text begin A proposed stewardship plan must include at
least the following:
new text end

new text begin (1) performance targets as applicable to each covered materials type to be accomplished
within a five-year time as established by the commissioner in subdivision 6, paragraph (a);
new text end

new text begin (2) a list of covered materials proposed for collection and the method of collection to
be used for each, including proposals for alternative collection of covered materials not
included in the list established by the commissioner under section 115A.1453;
new text end

new text begin (3) proposals for exemptions from performance targets for covered materials that cannot
be waste reduced or made reusable, recyclable, or compostable due to health and safety
concerns;
new text end

new text begin (4) a plan for how the producer responsibility organization will ensure measuring of
recycled materials and reuse according to subdivision 6, paragraphs (c) and (d), and a
description of how the organization will measure all other covered materials, including
measuring waste reduction, composting, and inclusion of postconsumer recycled content;
new text end

new text begin (5) a plan for adopting verifications by independent third parties, as applicable;
new text end

new text begin (6) a proposed budget and identification of funding needs for each of the five calendar
years covered by the plan, including:
new text end

new text begin (i) proposed producer fees and a description of the process used to calculate the proposed
fees, including an explanation of how the fees reflect the requirements of section 115A.1454;
and
new text end

new text begin (ii) a plan for proposed infrastructure investments, including a description of how the
process to offer and select opportunities will be conducted in an open, competitive, and fair
manner, how it will address gaps in the system not met by service providers, and a description
of the financial and legal instruments to be used;
new text end

new text begin (7) a description of activities to be undertaken during the next five calendar years, which
must at a minimum describe how the producer responsibility organization, acting on behalf
of producers, proposes to:
new text end

new text begin (i) minimize the environmental impacts and human health impacts of covered materials;
new text end

new text begin (ii) incorporate as program objectives the improved design of covered materials in
accordance with section 115A.1454, subdivision 1, clause (2);
new text end

new text begin (iii) expand and increase the convenience of reuse, collection, recycling, and composting
services with a preference given to the top of the waste management hierarchy defined in
section 115A.02;
new text end

new text begin (iv) provide collection of source-separated recyclable materials to single-family and
multifamily residences and public places in the state in jurisdictions where political
subdivisions do not provide these services; and
new text end

new text begin (v) ensure that postconsumer recycled materials are delivered to responsible markets;
new text end

new text begin (8) a description of how the program uses and interacts with existing collection, reuse,
recycling, and composting efforts and service providers;
new text end

new text begin (9) proposed reimbursement formulas and schedules of reimbursement rates for service
providers that elect to participate in the program and a description of how the formulas and
schedules were developed in accordance with section 115A.1455;
new text end

new text begin (10) proposed terms and conditions for service agreements, including proposed
performances standards; certification that the producer responsibility organization will treat
data submitted by service providers as nonpublic data with service providers electing to
participate in the program; and templates of service agreements;
new text end

new text begin (11) a description of how the producer responsibility organization will contract with the
following types of service providers, at a minimum, to conduct the services identified in
the stewardship plan:
new text end

new text begin (i) service providers that conduct collection services for single-family and multifamily
residences and public places; and
new text end

new text begin (ii) service providers that conduct reuse, recycling, and composting services to sort,
remove contamination from, and prepare covered materials for reuse or to send to responsible
markets;
new text end

new text begin (12) a description of how the producer responsibility organization will provide technical
assistance to service providers that deliver covered materials to responsible markets;
new text end

new text begin (13) a discussion of technical assistance provided to producers regarding toxic substances
in covered materials and actions taken by producers to reduce the presence of toxic substances
in covered materials through proof of testing or an analytical and scientifically demonstrated
methodology;
new text end

new text begin (14) a description of how the producer responsibility organization intends to increase
public awareness, educate, and complete outreach activities accounting for culturally
responsive materials and methods and evaluate the efficacy of these efforts including:
new text end

new text begin (i) assist producers in improving product labels as a means of informing consumers
about environmentally sound management of covered materials;
new text end

new text begin (ii) how to manage covered materials in an environmentally sound manner and how to
access reuse, recycling, and composting services; and
new text end

new text begin (iii) encourage behavior change to increase participation in reuse, recycling, and
composting programs;
new text end

new text begin (15) a summary of consultations held with the advisory board and other stakeholders to
provide input to the stewardship plan, a list of recommendations that were incorporated into
the stewardship plan as a result, and a list of rejected recommendations and the reasons for
rejection; and
new text end

new text begin (16) strategies to incorporate findings from any relevant studies required by the
legislature.
new text end

new text begin Subd. 4. new text end

new text begin Approval. new text end

new text begin (a) The commissioner must review a stewardship plan and approve,
propose modifications to, or reject it within 90 days of receipt, providing reasons for proposed
modifications or rejection in writing to the producer responsibility organization that submitted
it.
new text end

new text begin (b) The producer responsibility organization must submit a revised stewardship plan, if
necessary, within 60 days of receiving the commissioner's decision. The commissioner must
review a revised stewardship plan within 45 days of receipt. The commissioner may require
submission of additional revised stewardship plans until a revised stewardship plan is
approved.
new text end

new text begin (c) Once approved, a stewardship plan remains in effect for five years, as amended, or
until a subsequent stewardship plan is approved.
new text end

new text begin Subd. 5. new text end

new text begin Amendment. new text end

new text begin (a) A producer responsibility organization may file a proposed
amendment to a stewardship plan with the commissioner at any time but must submit the
proposed amendment to the advisory board for review at least 60 days prior to filing the
amendment request, and the commissioner must make the proposed amendment available
for public comment during that period. The commissioner must review an amendment and
approve, modify, or reject the proposed amendment within 45 days of receipt. A producer
responsibility organization may not change operations under an approved stewardship plan
without the commissioner's written approval.
new text end

new text begin (b) Upon recommendation by the advisory board, or upon the commissioner's own
initiative, the commissioner may require an amendment to a stewardship plan if the
commissioner determines that an amendment is necessary to ensure that the producer
responsibility organization maintains progress toward meeting annual performance targets
and other objectives of a stewardship plan.
new text end

new text begin Subd. 6. new text end

new text begin Performance targets. new text end

new text begin (a) The commissioner must establish performance targets
based on the needs assessment for any stewardship plan approved under this section.
Performance targets must include targets for waste reduction, reuse, recycling, composting,
and postconsumer recycled content by covered materials type that are to be achieved by the
end of the stewardship plan's term. The commissioner must select the unit that is most
appropriate to measure each performance target as informed by the needs assessment.
new text end

new text begin (b) Notwithstanding subdivision 3, clause (4), the commissioner may require that a
producer responsibility organization obtain third-party certification that certain recycling
and reuse standards have been met in lieu of establishing targets under paragraphs (c) and
(d). The commissioner must provide a producer responsibility organization with notice of
at least one year prior to requiring use of third-party certification under this paragraph.
new text end

new text begin (c) Recycling targets established in a stewardship plan must provide for measuring to
be the amount of recycled material to be at the point at which material leaves a material
recovery facility or, if it is source-separated and does not require processing at a material
recovery facility, at the point at which material arrives at a recycling facility to be sent to
or used at a responsible market. Measurement must remove an estimate of contamination
documented by the facility. Measuring must take into consideration:
new text end

new text begin (1) whether the material is a marketable commodity stream meeting industry
specifications for recycling and, if collected with other source-separated recyclable materials,
whether it can be sorted into defined marketable commodity streams that meet industry
specifications;
new text end

new text begin (2) that measurement excludes uses for fuel or energy capture;
new text end

new text begin (3) the extent to which the covered material is technically and economically feasible to
collect and recycle;
new text end

new text begin (4) that the covered material must comply with sections 115A.965, 116.943, 325F.075,
325F.172 to 325F.179, and all other laws pertaining to toxic substances in covered materials;
and
new text end

new text begin (5) other criteria determined by the commissioner.
new text end

new text begin (d) Source reduction targets established in a stewardship plan must provide for the
measurement of the amount of source reduction of covered materials in a manner that:
new text end

new text begin (1) is sufficient to determine the extent to which the amount of material used for a covered
material is eliminated beyond what is necessary to efficiently deliver a product without
damage or spoilage, or other means of covered material redesign to reduce overall material
use, without compromising the ability for the covered material to be reused, recycled or
composted;
new text end

new text begin (2) excludes applications when a nonplastic material is to be replaced by a plastic material,
unless that plastic material is a compostable covered material;
new text end

new text begin (3) excludes light-weighting packaging to a point where it interferes with its recyclability;
and
new text end

new text begin (4) meets other criteria as determined by the commissioner.
new text end

new text begin (e) Reuse targets established in a stewardship plan must provide for measuring to be the
amount of reusable covered materials to be at the point at which reusable covered materials
meet the following criteria as demonstrated by the producer and approved by the
commissioner:
new text end

new text begin (1) the average minimum number of cycles of reuses within a recognized reuse system
or the number of times an item must be reused for it to have lower life cycle impacts than
nonreusable alternatives is reached;
new text end

new text begin (2) the demonstrated or research-based anticipated return rate of the covered material
to the reuse system is achieved; and
new text end

new text begin (3) other criteria demonstrated by the commissioner.
new text end

new text begin (f) For other targets, the producer responsibility organization must propose a calculation
point for review and approval as part of the stewardship plan based on findings from the
needs assessment.
new text end

new text begin Subd. 7. new text end

new text begin Statewide goals. new text end

new text begin (a) The commissioner must ensure that performance targets
incorporated into stewardship plans approved under subdivision 6 will, in the aggregate,
result in achievement of the following goals by the end of the year indicated:
new text end

new text begin (1) by 2033:
new text end

new text begin (i) 65 percent of covered materials by weight sold into the state must be recycled or
composted;
new text end

new text begin (ii) ten percent of the number of units of packaging sold into the state must be returned
to an established reuse system;
new text end

new text begin (iii) the weight of covered materials sold in the state must be source reduced by 15
percent, compared to levels identified in the initial needs estimate; and
new text end

new text begin (iv) all covered materials sold, offered for sale, or distributed for sale in this state must
contain at least ten percent postconsumer recycled content, with all covered materials
containing an overall average of at least 30 percent; and
new text end

new text begin (2) by 2038:
new text end

new text begin (i) 75 percent of covered materials by weight sold into the state must be recycled or
composted;
new text end

new text begin (ii) 20 percent of the number of units of packaging sold into the state must be returned
to an established reuse system;
new text end

new text begin (iii) the weight of covered materials sold in the state must be source reduced by 25
percent, compared to levels identified in the initial needs estimate; and
new text end

new text begin (iv) all covered materials sold, offered for sale, or distributed for sale in this state must
contain at least 30 percent postconsumer recycled content, with all covered products
containing an overall average of at least 50 percent.
new text end

new text begin (b) The commissioner may adjust any goal set forth in paragraph (a) by no more than
five percent but must submit the proposed adjustment to the advisory board and consider
the board's recommendations before making the adjustment.
new text end

Sec. 13.

new text begin [115A.1453] RECYCLABLE OR COMPOSTABLE COVERED
MATERIALS LISTS.
new text end

new text begin Subdivision 1. new text end

new text begin List required. new text end

new text begin By March 1, 2027, and at least every three years thereafter,
the commissioner must complete a list of covered materials determined to be recyclable or
compostable through a curbside or equivalent collection system where covered materials
are commingled into a recyclables stream and a separate compostables stream in accordance
with this section and must provide the list to all producer responsibility organizations.
new text end

new text begin Subd. 2. new text end

new text begin Input from interested parties; development of criteria. new text end

new text begin The commissioner
must consult with the advisory board, producer responsibility organizations, service providers,
political subdivisions, and other interested parties to develop criteria for determining which
covered materials are recyclable and compostable through a curbside or equivalent collection
system where covered materials are commingled into a recyclables stream and a separate
compostables stream. For recycling, the covered material must meet the criteria in section
115A.1451, subdivision 6, paragraph (c). The criteria must include:
new text end

new text begin (1) the technical and economic feasibility of recycling or composting each covered
material;
new text end

new text begin (2) the need for and cost of any specialized equipment required as part of the recycling
or composting process;
new text end

new text begin (3) a requirement that the recycling or composting technology is available to no less
than 60 percent of the population in the metropolitan area and no less than 60 percent of
the population outside the metropolitan area;
new text end

new text begin (4) a requirement that if a covered material is collected for recycling, the material type
and form is regularly sorted and aggregated into defined streams for recycling processes or
the package format falls into a relevant Institution of Scrap Recycling Industries specification;
new text end

new text begin (5) 75 percent of covered materials type by unit is in a similar format as other covered
materials in that category and can be managed by recycling or managed by composting;
new text end

new text begin (6) a requirement that if a covered material collected for recycling is made of plastic,
the covered material must be designed to ensure it is recyclable or compostable and does
not include any components, inks, adhesives, or labels that interfere with the recycling or
composting process;
new text end

new text begin (7) a requirement that a covered material complies with sections 115A.965, 116.943,
325F.075, 325F.172 to 325F.179, and all other laws pertaining to toxic substances in covered
materials; and
new text end

new text begin (8) other criteria determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Amendment. new text end

new text begin The commissioner may amend a list completed under this section
at any time and must provide amended lists to producer responsibility organizations as soon
as possible after adopting an amendment. Producer responsibility organizations must provide
amended lists to service providers as soon as possible after receiving the amendment and
work to incorporate changes in relevant service provider agreements and operations within
a year.
new text end

Sec. 14.

new text begin [115A.1454] PRODUCER FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Annual fee. new text end

new text begin A producer responsibility organization must annually collect
a fee from each producer that must:
new text end

new text begin (1) be based on the total amount of covered materials each producer sells, offers for sale,
or distributes in the state in the prior year calculated on a per-unit basis, such as per ton, per
item, or another unit of measurement;
new text end

new text begin (2) incentivize using materials and design attributes that reduce the environmental impacts
and human health impacts of covered materials by the following methods:
new text end

new text begin (i) eliminating the presence of toxic substances;
new text end

new text begin (ii) reducing the amount of packaging per individual covered material that is necessary
to efficiently deliver a product without damage or spoilage without reducing its ability to
be recycled or reducing the amount of paper used to manufacture individual paper products;
new text end

new text begin (iii) increasing covered materials managed in a reuse system;
new text end

new text begin (iv) enhancing recyclability or compostability of a covered material;
new text end

new text begin (v) increasing the proportion of postconsumer recycled content in covered materials;
and
new text end

new text begin (vi) increasing the amount of inputs derived from renewable and sustainable sources;
new text end

new text begin (3) discourage using materials and design attributes in a producer's covered materials
whose environmental impacts and human health impacts, as determined by the commissioner,
can be reduced by the methods listed under clause (2);
new text end

new text begin (4) prioritize reuse by charging covered materials that are managed through a reuse
system only once, upon initial entry into the marketplace, and by applying the lowest fee
to these covered materials; and
new text end

new text begin (5) generate revenue sufficient to pay in full:
new text end

new text begin (i) the annual registration fee required under section 115A.1443;
new text end

new text begin (ii) financial obligations to complete activities described in an approved stewardship
plan and to reimburse service providers under agreements in section 115A.1455;
new text end

new text begin (iii) the operating costs of the producer responsibility organization; and
new text end

new text begin (iv) for the establishment and maintenance of a financial reserve that is sufficient to
operate the program in a fiscally prudent and responsible manner.
new text end

new text begin Subd. 2. new text end

new text begin Overcollections. new text end

new text begin Revenue collected under this section that exceeds the amount
needed to pay the costs described in subdivision 1, clause (5), must be used to improve or
enhance program outcomes or to reduce producer fees in accordance with provisions of an
approved stewardship plan.
new text end

new text begin Subd. 3. new text end

new text begin Prohibited conduct. new text end

new text begin (a) Fees collected under this section may not be used for
lobbying, as defined in section 3.084, subdivision 1.
new text end

new text begin (b) A person may not charge a point-of-sale or point-of-collection fee for services that
are provided under an approved stewardship plan, except that this paragraph does not prohibit
charging a fee that is:
new text end

new text begin (1) a deposit made in connection with a product's reuse or recycling that can be redeemed
by the consumer; or
new text end

new text begin (2) required by a political subdivision to encourage waste reduction, reuse, recycling,
or composting.
new text end

Sec. 15.

new text begin [115A.1455] SERVICE PROVIDER AGREEMENTS; REIMBURSEMENT
RATES.
new text end

new text begin Subdivision 1. new text end

new text begin Service provider agreements required. new text end

new text begin (a) The terms and conditions
of the provision of reuse, collection, recycling, or composting services under an approved
stewardship plan must be established under a service agreement between a producer
responsibility organization and a service provider. Each agreement must:
new text end

new text begin (1) establish strong labor standards and work safety practices, including but not limited
to safety programs, health benefits, and living wages; and
new text end

new text begin (2) require the service provider to meet established performance standards.
new text end

new text begin (b) For service providers collecting recyclable covered materials and compostable covered
materials, agreements must also include the following:
new text end

new text begin (1) a requirement to maintain or increase the level of convenience or service quality that
was provided by service providers before this act was enacted; and
new text end

new text begin (2) a requirement that the service provider accept all the materials on the list of recyclable
or compostable materials established by the commissioner under section 115A.1453.
new text end

new text begin (c) For service providers sorting recyclable covered materials, agreements must also
include the following:
new text end

new text begin (1) minimum capture rates, maximum processing residual rates, and minimum bale
quality;
new text end

new text begin (2) demonstrations that materials have been sent to responsible markets; and
new text end

new text begin (3) a requirement that the service provider collect all the materials on the list of recyclable
materials established by the commissioner under section 115A.1453.
new text end

new text begin (d) For service providers managing compostable covered materials, agreements must
ensure that service providers accept all the materials on the list of compostable materials
established by the commissioner under section 115A.1453.
new text end

new text begin Subd. 2. new text end

new text begin Collection of recyclables. new text end

new text begin If a political subdivision operates as a service provider
to households or public spaces in its jurisdiction for the collection of all recyclable materials
identified on the list established under 115A.1453, the producer responsibility organization
must offer a service provider agreement to that political subdivision. The political subdivision
may or may not choose to become party to a service agreement. If a household does not
have access to services for collection of all recyclable materials on the list established under
115A.1453, the producer responsibility organization must ensure that collection service is
available to the household through another service provider. The producer responsibility
organization may enter into a service agreement with a service provider to ensure service
or otherwise document that the service is available from a service provider that opts not to
enter into a service agreement.
new text end

new text begin Subd. 3. new text end

new text begin Bidding processes. new text end

new text begin (a) A producer responsibility organization must use open,
competitive, and fair procurement practices when entering into agreements with service
providers that are not political subdivisions, except that preference must be given to existing
facilities, providers of services, and accounts in the state for reuse, collection, recycling,
and composting of covered materials.
new text end

new text begin (b) Agreements between a producer responsibility organization and a political subdivision
that acts as a service provider within its jurisdiction must include requirements that the
political subdivision use open, competitive, and fair procurement practices to obtain those
services, or otherwise follow state law regarding authorities allowed in the procurement of
such services.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement rates. new text end

new text begin Each service agreement must include reimbursement
rates for services that are based on formulas that:
new text end

new text begin (1) incorporate relevant cost information identified by the needs assessment;
new text end

new text begin (2) reflect conditions that affect reuse, collection, recycling, and composting costs in
the region or jurisdiction in which the services are provided, including but not limited to:
new text end

new text begin (i) the number and size of households;
new text end

new text begin (ii) population density;
new text end

new text begin (iii) collections methods employed;
new text end

new text begin (iv) distance to consolidation or transfer facilities, reuse, recycling, or composting
facilities, or to responsible markets; and
new text end

new text begin (v) other factors that may contribute to regional or jurisdictional cost differences;
new text end

new text begin (3) reflect administrative costs of service providers, including education, public awareness
campaigns, and outreach program costs as applicable;
new text end

new text begin (4) reflect planned capital improvements to facilities and equipment costs;
new text end

new text begin (5) reflect the cost of managing contamination present in source-separated recyclable
materials and source-separated compostable materials; and
new text end

new text begin (6) reflect the proportion of covered compostable materials within all source-separated
compostable materials collected or managed through composting.
new text end

new text begin Subd. 5. new text end

new text begin Section does not affect local government authority. new text end

new text begin Nothing in this section
shall be construed to require a political subdivision to agree to operate under a stewardship
plan, nor does it restrict the authority of a political subdivision to provide waste management
services to residents or to contract with any entity to provide waste management services.
new text end

Sec. 16.

new text begin [115A.1456] REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Producer responsibility organization annual report. new text end

new text begin (a) By July 1,
2031, and each May 1 thereafter, a producer responsibility organization must submit a
written report to the commissioner that contains, at a minimum, the following information
for the previous calendar year:
new text end

new text begin (1) the amount of covered materials sold, offered for sale, or distributed in the state, by
each covered materials type, reported in the same units used to establish fees under section
115A.1454, subdivision 1, clause (1);
new text end

new text begin (2) progress toward the performance targets reported in the same units used to establish
producer fees under section 115A.1454, subdivision 1, clause (1), and reported statewide
and for each county including:
new text end

new text begin (i) the amount of covered materials successfully waste reduced, reused, recycled, and
composted by covered materials type and collection method; and
new text end

new text begin (ii) verification by an independent third party, if available, of activities to meet obligations
of this act;
new text end

new text begin (3) the total cost to implement the program and a detailed description of program
expenditures including:
new text end

new text begin (i) the total amount of producer fees collected in the current calendar year; and
new text end

new text begin (ii) a description of infrastructure investments made during the previous year;
new text end

new text begin (4) a copy of a financial audit of program operations conducted by an independent third
party approved by the commissioner;
new text end

new text begin (5) a description of program performance problems that emerged in specific locations
and efforts taken or proposed by the producer responsibility organization to address them;
new text end

new text begin (6) a discussion of technical assistance provided to producers regarding toxic substances
in covered materials and actions taken by producers to reduce the presence of toxic substances
in covered materials through proof of testing or an analytical and scientifically demonstrated
methodology;
new text end

new text begin (7) a description of public awareness, education, and outreach activities undertaken
including any evaluations conducted of their efficacy, plans for next calendar year's activities,
and an evaluation of the process established by the producer responsibility organization to
answer questions from consumers regarding collection, recycling, composting, and reuse
activities;
new text end

new text begin (8) a summary of consultations held with the advisory board and how any feedback was
incorporated into the report as a result of the consultations, together with a list of rejected
recommendations and the reasons for rejection;
new text end

new text begin (9) a list of any producers found to be out of compliance with this act, and actions taken
by the producer responsibility organization to return the producer to compliance, and
notification of any producers that are no longer participating in the producer responsibility
organization or have been expelled due to their lack of compliance; and
new text end

new text begin (10) any proposed amendments to the stewardship plan to improve program performance
or reduce costs, including changes to producer fees, infrastructure investments, or
reimbursement formula and rates.
new text end

new text begin Subd. 2. new text end

new text begin Report following unmet target. new text end

new text begin A producer responsibility organization that
fails to meet a performance target established in an approved stewardship plan must, within
90 days of filing an annual report under this section, file with the commissioner an
explanation of the factors contributing to the failure and propose an amendment to the
stewardship plan specifying changes in operations that the producer responsibility
organization will make that are designed to achieve the following year's targets. An
amendment filed under this subdivision must be reviewed and approved by the commissioner
in the manner specified in section 115A.1451, subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner's report. new text end

new text begin By October 15, 2034, and every five years thereafter,
the commissioner must submit a report to the governor and to the chairs and ranking minority
members of the legislative committees with jurisdiction over solid waste. The report must
contain a summary of the operations of the Packaging Waste and Cost Reduction Act during
the previous five years, a summary of the needs assessment, a summary of information
gleaned from reports filed under subdivisions 1 and 2, recommendations for policy, statutory,
or regulatory changes to the program, a list of efforts undertaken by the commissioner to
enforce and secure compliance with this act, and any other information the commissioner
deems to be relevant.
new text end

new text begin Subd. 4. new text end

new text begin Duty to cooperate. new text end

new text begin Service providers must provide producer responsibility
organizations with data necessary to complete the reports required by this section upon
request. Data provided under this paragraph is nonpublic data.
new text end

Sec. 17.

new text begin [115A.1457] PRODUCER RESPONSIBILITY ORGANIZATION
WEBSITES.
new text end

new text begin A producer responsibility organization must maintain a website that uses best practices
for accessibility that contains at least:
new text end

new text begin (1) information regarding a process that members of the public can use to contact the
producer responsibility organization with questions;
new text end

new text begin (2) a directory of all service providers operating under the stewardship plan administered
by the producer responsibility organization, grouped by location or political subdivision,
and information about how to request service;
new text end

new text begin (3) registration materials submitted to the commissioner under section 115A.1443;
new text end

new text begin (4) the draft and approved stewardship plan and any draft and approved amendments;
new text end

new text begin (5) the list of recyclable and compostable materials developed by the commissioner
under section 115A.1453;
new text end

new text begin (6) the most recent needs assessment and all past needs assessments;
new text end

new text begin (7) annual reports filed by the producer responsibility organization;
new text end

new text begin (8) a link to administrative rules implementing this act; and
new text end

new text begin (9) comments of the advisory board on the documents listed in clauses (4) and (7), and
the responses of the producer responsibility organization to those comments.
new text end

Sec. 18.

new text begin [115A.1458] ANTICOMPETITIVE CONDUCT.
new text end

new text begin A producer responsibility organization that arranges collection, recycling, composting,
or reuse services under this act may engage in anticompetitive conduct to the extent necessary
to plan and implement collection, recycling, composting, or reuse systems to meet the
obligations under this act, and is immune from liability under state laws relating to antitrust,
restraint of trade, and unfair trade practices.
new text end

Sec. 19.

new text begin [115A.1459] RULEMAKING.
new text end

new text begin The commissioner may adopt rules to implement this act. The 18-month time limit under
section 14.125 does not apply to the commissioner's rulemaking authority under this section.
new text end

Sec. 20.

new text begin [115A.1460] PROVIDING INFORMATION.
new text end

new text begin Upon request of the commissioner for purposes of determining compliance with this
act, a person must furnish to the commissioner any information that the person has or may
reasonably obtain.
new text end

Sec. 21.

new text begin [115A.1461] DEPOSIT RETURN SYSTEM.
new text end

new text begin It is the intent of the legislature that if a bottle deposit return system is enacted in the
future, it will be harmonized with this act in a manner that ensures that:
new text end

new text begin (1) materials covered in that system are exempt from this act or related financial
obligations are reduced;
new text end

new text begin (2) co-location of drop-off facilities and alternative collection sites is maximized; and
new text end

new text begin (3) education and outreach is integrated between the two programs.
new text end

Sec. 22.

new text begin [115A.1462] ENFORCEMENT.
new text end

new text begin (a) The commissioner must enforce this act as provided under this section and sections
115.071 and 116.072. The commissioner or attorney general must first issue a corrective
order in the manner provided under section 116.072, subdivision 4, before pursuing other
enforcement actions. The commissioner may revoke a registration of a producer responsibility
organization or producer found to have violated this act.
new text end

new text begin (b) Except as otherwise provided in paragraph (c), a person that violates or fails to
perform a duty imposed by this act or any rule adopted thereunder or a term or condition
of any registration or permit issued is liable for a civil penalty not to exceed $25,000 per
violation for each day during which the violation continues.
new text end

new text begin (c) A producer responsibility organization or producer that violates a provision of or
fails to perform a duty imposed by this act, a rule adopted thereunder, or a term or condition
of a registration or permit issued, including requirements of a stewardship plan approved
by the commissioner and performance targets, is liable for a civil penalty not to exceed
$25,000 per violation for each day during which the violation continues. For a second
violation occurring within 12 months of a first violation, a producer responsibility
organization or producer is liable for a civil penalty not to exceed $50,000 per violation for
each day during which the violation continues. For a third or subsequent violation occurring
within 12 months of a prior violation, a producer responsibility organization or producer is
liable for a civil penalty not to exceed $100,000 per violation for each day during which
the violation continues.
new text end

Sec. 23.

new text begin [115A.1463] ELECTION OF CERTAIN INDIVIDUAL PRODUCERS TO
OPERATE INDEPENDENTLY.
new text end

new text begin Notwithstanding any provision of this act to the contrary, an individual producer who
represents at least five percent of the market share of covered materials sold into this state
by weight, or by the relevant unit of measurement established under section 115A.1451,
may elect to operate independently under this act instead of pursuant to a written agreement
with a producer responsibility organization. A producer that elects to operate independently
under this section must perform all of the duties of both a producer and a producer
responsibility organization under this act, as determined by the commissioner.
new text end

Sec. 24. new text begin WORKPLACE CONDITIONS AND EQUITY STUDY.
new text end

new text begin (a) By January 1, 2032, the commissioner must contract with an independent third party
to conduct a study of the recycling, composting, and reuse facilities operating in the state.
The study must analyze, at a minimum information about:
new text end

new text begin (1) working conditions, wage and benefit levels, and employment levels of minorities
and women at those facilities;
new text end

new text begin (2) barriers to ownership of recycling, composting, and reuse operations faced by women
and minorities;
new text end

new text begin (3) the degree to which residents of multifamily buildings have less convenient access
to recycling, composting, and reuse opportunities than those living in single-family homes;
new text end

new text begin (4) the degree to which environmental justice areas have access to fewer recycling,
composting, and reuse opportunities compared to other parts of the state;
new text end

new text begin (5) the degree to which programs to increase access, convenience, and education are
successful in raising reuse, recycling, and composting rates in areas where participation in
these activities is low;
new text end

new text begin (6) strategies to increase participation in reuse, recycling, and composting; and
new text end

new text begin (7) the degree to which residents and workers in environmental justice areas are impacted
by emissions, toxic substances, and other pollutants from solid waste facilities in comparison
to other areas of the state and provide recommendations to mitigate those impacts.
new text end

new text begin (b) The initial producer responsibility organization registered by the commissioner must
cover the cost of conducting the study through its annual registration fee and recommended
actions identified in the study must be incorporated into the future stewardship plans as
required under Minnesota Statutes, section 115A.1451, including adjustments to service
provider agreements and reimbursements as established under Minnesota Statutes, section
115A.1455.
new text end

Sec. 25. new text begin COVERED MATERIALS POLLUTION AND CLEANUP STUDY.
new text end

new text begin (a) By January 1, 2032, the commissioner, in consultation with the commissioners of
health and natural resources, must contract with an independent third party to conduct a
study to identify the contribution of covered products to litter and water pollution in
Minnesota. The report must at a minimum:
new text end

new text begin (1) analyze historical and current environmental and human health impacts of littered
covered materials and their associated toxic substances in the environment;
new text end

new text begin (2) estimate the cost of cleanup and prevention; and
new text end

new text begin (3) provide recommendations for how to reduce and mitigate the impacts of litter in the
state.
new text end

new text begin (b) The contracted third party must consult with units of local government, the
commissioners of health and natural resources, and environmental justice organizations.
new text end

new text begin (c) The initial producer responsibility organization registered by the commissioner must
cover the cost of conducting the study through its annual registration fee and recommended
actions identified in the study must be incorporated into future stewardship plans, as required
under Minnesota Statutes, section 115A.1451.
new text end