HF 3577

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/04/2024 03:45pm

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.1462 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.1462, 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.1444.
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 or distributed 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 or distributed 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
introduced into the state. Covered material does not include exempt materials.
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 De minimis producer. new text end

new text begin "De minimis producer" means a person that in the
most recent fiscal year:
new text end

new text begin (1) introduced less than one ton of covered material into this state; and
new text end

new text begin (2) earned global gross revenues of less than $2,000,000.
new text end

new text begin Subd. 12. new text end

new text begin Environmental impact. new text end

new text begin "Environmental impact" means the environmental
impact of a covered material from extraction and processing of the raw materials composing
the material through manufacturing; distribution; use; recovery for reuse, recycling, or
composting; and final disposal.
new text end

new text begin Subd. 13. new text end

new text begin Exempt materials. new text end

new text begin "Exempt materials" means materials, or any portion of
materials, that:
new text end

new text begin (1) are packaging for infant formula, as defined in United States Code, title 21, section
321(z);
new text end

new text begin (2) are packaging for medical food, as defined in United States Code, title 21, section
360ee(b)(3);
new text end

new text begin (3) are packaging for a fortified oral nutritional supplement used by persons who require
supplemental or sole source nutrition to meet nutritional needs due to special dietary needs
directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive,
as those terms are defined by the International Classification of Diseases, Tenth Revision;
or
new text end

new text begin (4) are not covered materials, as determined by the commissioner.
new text end

new text begin Subd. 14. new text end

new text begin Food packaging. new text end

new text begin "Food packaging" has the meaning given in section 325F.075.
new text end

new text begin Subd. 15. new text end

new text begin Independent auditor. new text end

new text begin "Independent auditor" means an independent and
actively licensed certified public accountant that is:
new text end

new text begin (1) retained by a producer responsibility organization;
new text end

new text begin (2) not otherwise employed by or affiliated with a producer responsibility organization;
and
new text end

new text begin (3) qualified to conduct an audit under state law.
new text end

new text begin Subd. 16. 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 reuse, recycling,
or composting;
new text end

new text begin (2) equipment or facilities used for reuse, recycling, or composting of covered materials;
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. 17. new text end

new text begin Introduce. new text end

new text begin "Introduce" means to sell, offer for sale, distribute, or use to ship
a product within or into this state.
new text end

new text begin Subd. 18. 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.
new text end

new text begin Subd. 19. new text end

new text begin Needs assessment. new text end

new text begin "Needs assessment" means an assessment conducted
according 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. 20. new text end

new text begin Nondisclosure agreement. new text end

new text begin "Nondisclosure agreement" means an agreement
that requires the parties to the agreement to treat private and nonpublic data submitted to
facilitate the completion of a needs assessment according to section 115A.06, subdivision
13.
new text end

new text begin Subd. 21. 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. 22. 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. 23. 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. 24. new text end

new text begin Producer. new text end

new text begin (a) "Producer" means the following person responsible for
compliance with requirements under this act for a covered material sold, offered for sale,
or distributed in or into this state:
new text end

new text begin (1) for items sold in or with packaging at a physical retail location in this state:
new text end

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

new text begin (ii) if there is no person to which item (i) applies, the producer is the person that is
licensed to manufacture and sell or offer for sale to consumers in this state an item with
packaging under the brand or trademark of another manufacturer or person;
new text end

new text begin (iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner
of the item;
new text end

new text begin (iv) if there is no person described in item (i), (ii), or (iii) within the United States, the
producer is the person who is the importer of record for the item into the United States for
use in a commercial enterprise that sells, offers for sale, or distributes the item in this state;
or
new text end

new text begin (v) if there is no person described in items (i) to (iv), the producer is the person that first
distributes the item in or into this state;
new text end

new text begin (2) for items sold or distributed in packaging in or into this state via e-commerce, remote
sale, or distribution:
new text end

new text begin (i) for packaging used to directly protect or contain the item, the producer of the packaging
is the same as the producer identified under clause (1); and
new text end

new text begin (ii) for packaging used to ship the item to a consumer, the producer of the packaging is
the person that packages the item to be shipped to the consumer;
new text end

new text begin (3) for packaging that is a covered material and is not included in clauses (1) and (2),
the producer of the packaging is the person that first distributes the item in or into this state;
new text end

new text begin (4) for paper products that are magazines, catalogs, telephone directories, or similar
publications, the producer is the publisher;
new text end

new text begin (5) for paper products not described in clause (4):
new text end

new text begin (i) if the paper product is sold under the manufacturer's own brand, the producer is the
person that manufactures the paper product;
new text end

new text begin (ii) if there is no person to which item (i) applies, the producer is the person that is the
owner or licensee of a brand or trademark under which the paper product is used in a
commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or
not the trademark is registered in this state;
new text end

new text begin (iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner
of the paper product;
new text end

new text begin (iv) if there is no person described in item (i), (ii), or (iii) within 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 paper product in this state;
or
new text end

new text begin (v) if there is no person described in items (i) to (iv), the producer is the person that first
distributes the paper product in or into this state; and
new text end

new text begin (6) a person is the producer of a covered material sold, offered for sale, or distributed
in or into this state, as defined in clauses (1) to (5), except:
new text end

new text begin (i) where another person has mutually signed an agreement with a producer as defined
in clauses (1) to (5) that contractually assigns responsibility to the person as the producer,
and the person has joined a registered producer responsibility organization as the responsible
producer for that covered material under this act. In the event that another person is assigned
responsibility as the producer under this subdivision, the producer under clauses (1) to (5)
must provide written certification of that contractual agreement to the producer responsibility
organization; and
new text end

new text begin (ii) if the producer described in clauses (1) to (5) is a business operated wholly or in part
as a franchise, the producer is the franchisor if that franchisor has franchisees that have a
commercial presence within the state.
new text end

new text begin (b) "Producer" does not include:
new text end

new text begin (1) government agencies, municipalities, or other political subdivisions of the state;
new text end

new text begin (2) registered 501(c)(3) charitable organizations and 501(c)(4) social welfare
organizations; or
new text end

new text begin (3) de minimis producers.
new text end

new text begin Subd. 25. 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. 26. new text end

new text begin Recycling. new text end

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

new text begin Subd. 27. 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 or distributed into the state by
the relevant unit of measurement established in section 115A.1451.
new text end

new text begin Subd. 28. 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) reuses, 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. 29. 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. 30. 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 at a retail location, by a service
provider, or on behalf of or by a producer, 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. 31. 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
or distributed into the state in a calendar year that are deemed reusable by the commissioner
according to section 115A.1451.
new text end

new text begin Subd. 32. 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 reuse, recycling, or composting.
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, contracted
for, or otherwise arranged for similar services before the approval of the applicable
stewardship plan.
new text end

new text begin Subd. 33. new text end

new text begin Third-party certification. new text end

new text begin "Third-party certification" means certification by
an accredited independent organization that a standard or process required by this act, or a
stewardship plan approved under this act, has been achieved.
new text end

new text begin Subd. 34. new text end

new text begin This act. new text end

new text begin "This act" means sections 115A.144 to 115A.1462.
new text end

new text begin Subd. 35. new text end

new text begin Toxic substance. new text end

new text begin "Toxic substance" means hazardous waste; a problem
material; a chemical or chemical class regulated under section 115A.965, 116.943, 325F.075,
or 325F.172 to 325F.179; or a chemical of high concern identified under section 116.9402.
new text end

new text begin Subd. 36. 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 waste reduction or source reduction
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 program for packaging and paper
products in accordance with this act that encourages packaging redesign to reduce the
environmental impacts and human health impacts 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,
producers must appoint a producer responsibility organization and the 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 an approved
stewardship plan;
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 introduced in this 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 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 producer responsibility
organizations must be integrated into a single stewardship plan that covers all requirements
of this act and encompasses all producers when submitted to the commissioner for approval.
The annual reports of all producer responsibility organizations must be integrated into a
single annual report that covers all requirements of this act and encompasses all producers
when submitted to the commissioner.
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. If there is more
than one registered producer responsibility organization, the coordinating body described
in subdivision 1, paragraph (b), must equitably apportion payment of the annual fee between
all registered producer responsibility organizations. The annual fee 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 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 a producer
responsibility organization, 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 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. When
selecting a producer responsibility organization, the commissioner must consider whether
the producer responsibility organization:
new text end

new text begin (1) has a governing board consisting of producers that represent a diversity of covered
materials introduced in the state; and
new text end

new text begin (2) demonstrates adequate financial responsibility and financial controls to ensure proper
management of funds.
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

new text begin Subd. 4. new text end

new text begin Requirement for additional producer responsibility organizations. new text end

new text begin The
commissioner may allow registration of more than one producer responsibility organization
if:
new text end

new text begin (1) producers of a covered materials type or a specific covered material appoint a producer
responsibility organization; or
new text end

new text begin (2) producers organize under additional producer responsibility organizations that meet
the criteria established in subdivision 3, paragraph (a).
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 by January 1, 2025, 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 recycling facilities that manage covered materials;
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;
new text end

new text begin (2) may not appoint members who are employees of a producer required to be members
of a producer responsibility organization in this state under this act; and
new text end

new text begin (3) 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 nine 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. Removing members and filling of
vacancies is governed by section 15.059, subdivision 4. Except as otherwise provided,
chapter 15 does not apply to the board.
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 according to
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 quorum and 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, including establishing
a website or landing page on the agency website.
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 must:
new text end

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

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

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

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

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

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

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

new text begin (ii) the most recent needs assessment;
new text end

new text begin (iii) any stewardship plan or amendment submitted by a producer responsibility
organization under section 115A.1451 that is in draft form during the public comment
period;
new text end

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

new text begin (v) the most recent list of exempt materials approved 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 (viii), and the responses of the
commissioner to those comments; and
new text end

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

new text begin (7) require and approve independent auditors to perform an annual financial audit of
program operations of each producer responsibility organization; and
new text end

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

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

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

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

new text begin (4) 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) 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 must:
new text end

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

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

new text begin (3) 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) 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) collect producer fees according to section 115A.1454;
new text end

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

new text begin (7) 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) 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) 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) provide producers with information regarding state and federal laws that prohibit
substances in covered materials, including sections 115A.965, 116.943, 325F.075, and
325F.172 to 325F.179 and all laws prohibiting toxic substances in covered materials;
new text end

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

new text begin (12) 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; and
new text end

new text begin (13) assist service providers in identifying and using responsible markets.
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) After January 1, 2025,
a producer must be a member of a producer responsibility organization registered in this
state.
new text end

new text begin (b) After January 1, 2029, no producer may introduce covered materials, 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 (c) After January 1, 2032, no producer may introduce covered materials into the state
unless the covered materials are:
new text end

new text begin (1) reusable and included in an established reuse system that meets the rate required
under this act;
new text end

new text begin (2) included on the recyclables or compostables list established under section 115A.1453;
or
new text end

new text begin (3) included in an alternative collection system approved as part of a stewardship plan
under section 115A.1451.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin A producer must:
new text end

new text begin (1) 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 (2) pay producer fees according to 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 participating in an approved stewardship plan must:
new text end

new text begin (1) provide for the collection and management of covered materials generated in the
state pursuant to contractual agreements with a producer responsibility organization or
arrangements with other service providers that are entered into under an approved stewardship
plan; and
new text end

new text begin (2) if the service provider is a political subdivision, 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.
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 according
to 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) 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) contract with a third party who is not a producer or a producer responsibility
organization to conduct the needs assessment; and
new text end

new text begin (3) 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.
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 to meet statewide requirements
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 statewide requirements;
new text end

new text begin (6) an evaluation of options for third-party certification of activities to meet obligations
of this act;
new text end

new text begin (7) 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 (8) an evaluation of investments needed to:
new text end

new text begin (i) increase waste reduction, reuse, recycling, and composting rates of covered materials
in order to achieve performance targets proposed in clause (3);
new text end

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

new text begin (iii) 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; and
new text end

new text begin (iv) establish and expand the availability and accessibility of reuse services for reusable
covered materials;
new text end

new text begin (9) 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 (10) an assessment of the level and causes of contamination of source-separated recyclable
materials, source-separated compostable materials and collected reusables, and the impacts
of contamination on service providers, including the cost to manage this contamination;
new text end

new text begin (11) an assessment of toxic substances intentionally added to covered materials, their
potential environmental impacts and human health impacts, and whether this limits one or
more covered materials types from being used as a marketable feedstock;
new text end

new text begin (12) 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 impact of these practices on:
new text end

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

new text begin (ii) increasing public awareness of 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 (13) identification of the covered materials with the most significant environmental
impact; and
new text end

new text begin (14) other items identified by the commissioner that would aid the creation of the
stewardship plan, its administration, and the enforcement of this act.
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
statewide requirement or performance target under this act has been achieved, information
contained in a needs assessment must serve as the baseline for that determination, when
applicable.
new text end

new text begin Subd. 5. new text end

new text begin Participation required. new text end

new text begin A service provider or other person with data or
information necessary to complete a needs assessment must provide the data or information
to the commissioner in a timely fashion upon request. A service provider or other person
who does not want to be identified with information submitted to the commissioner under
this subdivision may request to proceed under a nondisclosure agreement. Once a request
is made, the requestor, the commissioner, and all third parties participating in the completion
of the needs assessment in whatever capacity must enter into a nondisclosure agreement.
Once these parties have entered into a nondisclosure agreement, the requestor must submit
the necessary data or information to the contractor selected by the commissioner. The
contractor must aggregate and anonymize the data or information received from all parties
proceeding under a nondisclosure agreement under this subdivision and must then submit
the aggregated anonymized information to the commissioner or to the party or parties
contracted to complete the needs assessment.
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 incorporates the findings and results of needs
assessments. 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. 2. new text end

new text begin Advisory board review of draft plan and amendments. new text end

new text begin A producer
responsibility organization must submit a draft stewardship plan or draft amendment to the
advisory board at least 60 days before submitting the draft plan or draft amendment to the
commissioner to allow the advisory board to submit comments and must address advisory
board comments and recommendations before submitting the draft plan or draft amendment
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 applicable to each covered materials type to be accomplished
within a five-year period, established in subdivision 5, paragraph (a);
new text end

new text begin (2) a description of the method of collection to be used for each covered materials type,
including proposals for alternative collection programs for 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 federal or state health
and safety requirements. The producer responsibility organization must identify the specific
requirements and the impact of covered materials;
new text end

new text begin (4) a plan for how the producer responsibility organization will measure recycling, source
reduction, and reuse according to subdivision 6 and a description of how the organization
will measure composting and inclusion of postconsumer recycled content;
new text end

new text begin (5) third-party certifications as required by the commissioner or voluntarily undertaken;
new text end

new text begin (6) a 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) producer fees and a description of the process used to calculate the fees, including
an explanation of how the fees meet the requirements of section 115A.1454; and
new text end

new text begin (ii) a plan for 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 the financial and
legal instruments to be used;
new text end

new text begin (7) an explanation of how the program will be fully paid for by producers, without any
fee, charge, surcharge, or other cost to members of the public, businesses, service providers,
the state or any political subdivision, or any other person who is not a producer. For purposes
of this requirement, a deposit made in connection with a product's reuse or recycling that
can be redeemed by a consumer is not a fee, charge, surcharge, or other cost;
new text end

new text begin (8) 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, will:
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 according
to 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 in conformance with the waste management hierarchy under section 115A.02;
new text end

new text begin (iv) ensure statewide collection of covered materials on the recyclable materials list
developed under section 115A.1453 at no cost to single-family and multifamily residences
and political subdivisions that arrange for the collection of recyclable materials from public
places; and
new text end

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

new text begin (9) a description of how the program uses and interacts with existing collection, reuse,
recycling, and composting efforts and service providers and how the producer responsibility
organization will reimburse service providers for the cost of:
new text end

new text begin (i) collecting covered materials generated from all single-family residences, multifamily
residences, and public places in the state; and
new text end

new text begin (ii) managing covered materials generated from all single-family residences; multifamily
residences; public places; and commercial, industrial, and institutional facilities in the state;
new text end

new text begin (10) 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 according to section 115A.1455;
new text end

new text begin (11) terms and conditions for service agreements, including:
new text end

new text begin (i) an agreement that the producer responsibility organization will treat nonpublic data
submitted by service providers electing to participate in the program as nonpublic data;
new text end

new text begin (ii) a requirement that service providers accept all covered materials on the recyclable
or compostable materials lists established by the commissioner under section 115A.1453;
and
new text end

new text begin (iii) performance standards for service providers that include a requirement that service
providers sorting commingled recyclable materials meet minimum material standards and
bale quality standards, minimum capture rates, and maximum processing residual rates and
demonstrate materials have been sent to a responsible market;
new text end

new text begin (12) a description of how the producer responsibility organization will provide technical
assistance to:
new text end

new text begin (i) service providers in order to deliver covered materials to responsible markets;
new text end

new text begin (ii) producers regarding toxic substances in covered materials and actions producers can
take to reduce intentionally added toxic substances in covered materials through proof of
testing or an analytical and scientifically demonstrated methodology; and
new text end

new text begin (iii) producers 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 reuse, recycling, or composting;
new text end

new text begin (13) a description of how the producer responsibility organization will 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 reusing, recycling, composting, and other environmentally sound methods of managing
covered materials;
new text end

new text begin (ii) increase public awareness of 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 (14) 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 (15) 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 Plan and amendment review and approval procedure. new text end

new text begin (a) The commissioner
must review and approve, deny, or request additional information for a draft stewardship
plan or a draft plan amendment no later than 120 days after the date the commissioner
receives it from a producer responsibility organization. The commissioner must post the
draft plan or draft amendment on the agency's website and allow public comment for no
less than 45 days before approving, denying, or requesting additional information on the
draft plan or draft amendment.
new text end

new text begin (b) If the commissioner denies or requests additional information for a draft plan or draft
amendment, the commissioner must provide the producer responsibility organization with
the reasons, in writing, that the plan or plan amendment does not meet the plan requirements
of subdivision 3. The producer responsibility organization has 60 days from the date that
the rejection or request for additional information is received to submit to the commissioner
any additional information necessary for the approval of the draft plan or draft amendment.
The commissioner must review and approve or disapprove the revised draft plan or draft
amendment no later than 60 days after the date the commissioner receives it.
new text end

new text begin (c) A producer responsibility organization may resubmit a draft plan or draft amendment
to the commissioner on not more than two occasions. If, after the second resubmission, the
commissioner determines that the draft plan or draft amendment does not meet the plan
requirements of this act, the commissioner must modify the draft plan or draft amendment
as necessary for it to meet the requirements of this act and approve it.
new text end

new text begin (d) 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 compliance with this act.
new text end

new text begin Subd. 5. new text end

new text begin Performance targets. new text end

new text begin (a) The producer responsibility organization must propose
performance targets based on the needs assessment that meet the statewide requirements in
subdivision 7 that must be included in a 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 producer responsibility organization 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) The commissioner may require that a producer responsibility organization obtain
third-party certification of any activity or achievement of any standard required by this act.
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) The performance targets proposed under this subdivision must demonstrate continuous
improvement in reducing the environmental and human health impacts of covered materials
over time.
new text end

new text begin Subd. 6. new text end

new text begin Measurement criteria for performance targets. new text end

new text begin (a) For purposes of
determining whether recycling performance targets are being met, except as modified by
the commissioner, a stewardship plan must stipulate that the amount of recycled material
must be measured at the point at which material leaves a recycling facility and must account
for:
new text end

new text begin (1) levels of estimated contamination documented by the facility;
new text end

new text begin (2) any exclusions for fuel or energy capture; and
new text end

new text begin (3) compliance with sections 115A.965, 116.943, 325F.075, and 325F.172 to 325F.179
and all other laws pertaining to toxic substances in covered materials.
new text end

new text begin (b) For purposes of determining whether source reduction performance targets are being
met, a stewardship plan must ensure that the amount of source reduction of covered materials
is measured in a manner that can 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
use and environmental impacts.
new text end

new text begin (c) For purposes of determining whether reuse targets are being met, 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) whether the average minimum number of cycles of reuses within a recognized reuse
system has been met based on the number of times an item must be reused for it to have
lower environmental impacts; and
new text end

new text begin (2) whether the demonstrated or research-based anticipated return rate of the covered
material to the reuse system has been met.
new text end

new text begin (d) 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 requirements. new text end

new text begin (a) The producer responsibility organization must
ensure that the following requirements are met 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 introduced 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 introduced 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 requirement established 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

new text begin (c) After 2038, the commissioner may establish additional statewide requirements for:
new text end

new text begin (1) the amount of covered materials that must be recycled or composted;
new text end

new text begin (2) the number of units of packaging sold into the state that must be returned to an
established reuse system;
new text end

new text begin (3) the weight of covered materials sold into the state that must be source reduced; and
new text end

new text begin (4) the percent of postconsumer recycled content that must be used in covered materials
introduced into this state.
new text end

new text begin These statewide requirements must not be less than those listed in this subdivision.
new text end

Sec. 13.

new text begin [115A.1453] RECYCLABLE OR COMPOSTABLE COVERED
MATERIALS LISTS; EXEMPT MATERIALS LIST.
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 statewide through systems where covered materials are commingled into a
recyclables stream and a separate compostables stream.
new text end

new text begin Subd. 2. new text end

new text begin Input from interested parties. 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 the recyclable or compostable covered
materials lists.
new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin To be included on the recyclable or compostable covered
materials lists:
new text end

new text begin (1) recycling or composting of the covered material type must be 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 (2) if collected for recycling, the covered material type and form must be one that is
regularly sorted and aggregated into defined streams for recycling processes, or the packaging
format must fall into a relevant Institution of Scrap Recycling Industries specification;
new text end

new text begin (3) at least 75 percent of that covered material type by unit must be in a similar format
as other covered materials in that type and must be either able to be managed by recycling
or managed by composting;
new text end

new text begin (4) the covered material must not include any components, features, inks, adhesives, or
labels that are detrimental to the recycling or composting process;
new text end

new text begin (5) the covered material must comply with sections 115A.965, 116.943, 325F.075, and
325F.172 to 325F.179 and all other laws pertaining to toxic substances in covered materials;
and
new text end

new text begin (6) the covered material must satisfy any other requirements determined by the
commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Exempt materials list. new text end

new text begin (a) A producer may request the commissioner, on a
form prescribed by the commissioner, to classify as an exempt material one or more types
of packaging. The commissioner must submit the request to the advisory board for review
and comment before approving or denying the request.
new text end

new text begin (b) The commissioner may approve the request only if the commissioner determines
that a specific federal or state health and safety requirement prevents the packaging from
being waste reduced or made reusable, recyclable, or compostable.
new text end

new text begin (c) The commissioner must review and approve, deny, or request additional information
for a request for classification of packaging as an exempt material no later than 120 days
after the date the commissioner receives the request from a producer.
new text end

new text begin (d) The commissioner must post on the agency website a list of materials exempted
under this subdivision.
new text end

new text begin (e) An exemption granted under this section is valid for two years, after which a producer
must reapply according to this subdivision.
new text end

new text begin Subd. 5. 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 introduces 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, as determined by the commissioner, of covered materials by the
following methods:
new text end

new text begin (i) eliminating intentionally added toxic substances in covered materials;
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) increasing the proportion of postconsumer material in covered materials;
new text end

new text begin (v) enhancing recyclability or compostability of a covered material; 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 according to 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 Fees collected under this section may not be used for
lobbying, as defined in section 3.084, subdivision 1.
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 and reimbursement required. new text end

new text begin 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. In addition to the terms and
conditions established in an approved stewardship plan, 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;
new text end

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

new text begin (3) prohibit the service provider from charging a fee to any person for the services
provided under the service agreement; and
new text end

new text begin (4) establish clear and reasonable timelines for reimbursement.
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 household does not have access to collection
services at a comparable level of convenience as collection services for mixed municipal
solid waste for covered materials on the recyclable covered materials list established under
section 115A.1453, the producer responsibility organization must ensure that collection
service is available to the household through a service provider.
new text end

new text begin Subd. 3. new text end

new text begin Bidding processes. new text end

new text begin (a) For procurement of services for management of covered
materials and for infrastructure investments included under an approved stewardship plan,
a producer responsibility organization must use the competitive bidding processes established
in section 16C.28, subdivision 1, and publicly post bid opportunities 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) No producer or producer responsibility organization may own or partially own
infrastructure unless, after a bidding process described in paragraph (a), no service provider
bids on the contract, in which case the producer responsibility organization may make
infrastructure investments identified under an approved stewardship plan to implement the
requirements in this act.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement rates. new text end

new text begin (a) 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, including disposal of contamination
and residuals;
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; and
new text end

new text begin (7) reflect the cost of managing contamination and cleaning or sanitation needed for
reuse systems.
new text end

new text begin (b) Each service agreement with a service provider that is also a political subdivision
must include reimbursement rates that use a rate established in a contract between a political
subdivision and one or more service providers in place of paragraph (a), clauses (1) and
(2).
new text end

new text begin Subd. 5. new text end

new text begin Local government authority. new text end

new text begin (a) Nothing in this act shall be construed to
require a political subdivision to agree to operate under a stewardship plan or enter into a
service agreement with a producer responsibility organization. A political subdivision
entering into a service agreement with a producer responsibility organization may choose
to include services that are implemented as a result of exercising its authority under section
115A.94 or otherwise resulting from a competitive procurement process, regardless of
whether the services were established before or after the approval of any stewardship plan.
new text end

new text begin (b) Nothing in this act restricts the authority of a political subdivision to provide waste
management services to residents, to contract with any entity to provide waste management
services, or to exercise its authority granted under section 115A.94. A producer responsibility
organization may not conduct activities that would conflict, compete, or otherwise interfere
with a political subdivision exercising its authority under section 115A.94 to organize
collection of solid waste, including materials collected for recycling or composting, or to
extend, renew, or otherwise manage any contracts entered into as a result of exercising such
authority or otherwise resulting from a competitive procurement process.
new text end

new text begin Subd. 6. new text end

new text begin Dispute. new text end

new text begin There must be a dispute resolution process using third-party mediators
to resolve disputes related to reimbursements and service agreements.
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 introduced 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 the strategies or collection method used; and
new text end

new text begin (ii) information about third-party certifications obtained;
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 auditor
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 intentionally added toxic
substances in covered materials beyond compliance with prohibitions already established
in law 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;
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; and
new text end

new text begin (11) any information requested by the commissioner to assist with determining
compliance with this act.
new text end

new text begin (b) Every fourth year after a stewardship plan is approved by the commissioner, a
performance audit of the program must be completed. The performance audit must conform
to audit standards established by the United States Government Accountability Office; the
National Association of State Auditors, Comptrollers, and Treasurers; or another nationally
recognized organization approved by the commissioner.
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 approved in a 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 by the advisory board and reviewed and approved by the
commissioner in the manner specified in section 115A.1451, subdivisions 2 and 4.
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 link to 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.
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 a minimum:
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) information on how to manage materials, including the list of recyclable and
compostable materials developed by the commissioner under section 115A.1453 and any
alternative collection programs;
new text end

new text begin (6) the most recent list of exempt materials approved by the commissioner under section
115A.1453;
new text end

new text begin (7) the most recent needs assessment and all past needs assessments;
new text end

new text begin (8) annual reports filed by the producer responsibility organization;
new text end

new text begin (9) a link to administrative rules implementing this act;
new text end

new text begin (10) comments of the advisory board on the documents listed in clauses (4) and (8), and
the responses of the producer responsibility organization to those comments;
new text end

new text begin (11) the names of producers and brands that are not in compliance with section
115A.1448;
new text end

new text begin (12) a list, that is updated at least monthly, 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 introduced in the
state; and
new text end

new text begin (13) education materials on waste reduction, reuse, recycling, and composting for
producers and the general public.
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, or for purposes of implementing 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) colocation of drop-off facilities and alternative collection sites is maximized;
new text end

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

new text begin (4) waste reduction and reuse strategies are prioritized 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 may revoke a registration of a producer
responsibility organization or producer found to have violated this act.
new text end

new text begin (b) Notwithstanding the penalty limits contained in section 115.071, subdivision 3, and
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 is liable for a civil penalty not to
exceed $25,000 per day of violation.
new text end

new text begin (c) Notwithstanding the penalty limits contained in section 115.071, subdivision 3, 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 requirements of a
stewardship plan approved by the commissioner, is liable for a civil penalty not to exceed
$25,000 per day of violation. For a second violation occurring within five years after the
approval of a stewardship plan, a producer responsibility organization or producer is liable
for a civil penalty not to exceed $50,000 per day of violation. For a third or subsequent
violation occurring within five years after the approval of a stewardship plan, a producer
responsibility organization or producer is liable for a civil penalty not to exceed $100,000
per day of violation.
new text end

Sec. 23. new text begin WORKPLACE CONDITIONS AND EQUITY STUDY.
new text end

new text begin (a) By January 1, 2032, the commissioner of the Pollution Control Agency must contract
with a third party that is not a producer or a producer responsibility organization 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 under
Minnesota Statutes, sections 115A.144 to 115A.1462, must cover the cost of conducting
the study through its annual registration fee and recommended actions identified in the study
must be considered as part of 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. 24. new text begin COVERED MATERIALS POLLUTION AND CLEANUP STUDY.
new text end

new text begin (a) By January 1, 2032, the commissioner of the Pollution Control Agency, in consultation
with the commissioners of health and natural resources, must contract with a third party
that is not a producer or a producer responsibility organization 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 under
Minnesota Statutes, sections 115A.144 to 115A.1462, must cover the cost of conducting
the study through its annual registration fee and recommended actions identified in the study
must be considered as part of future stewardship plans, as required under Minnesota Statutes,
section 115A.1451.
new text end