HF 3320

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/20/2024 12:19pm

A bill for an act
relating to recycling; establishing product stewardship program for boat wrap;
appropriating money; 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.1416] BOAT WRAP PRODUCT STEWARDSHIP PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Boat" has the meaning given to watercraft under section 86B.005, subdivision 18.
new text end

new text begin (c) "Boat wrap" means low-density polyethylene plastic that is used to wrap around a
boat to protect it against moisture and damage from other potentially harmful elements
during storage.
new text end

new text begin (d) "Brand" means a name, symbol, word, or mark that identifies boat wrap and attributes
it to the boat wrap producer.
new text end

new text begin (e) "Producer" means:
new text end

new text begin (1) a manufacturer of boat wrap sold under the manufacturer's own brand; or
new text end

new text begin (2) the owner or licensee of a brand of boat wrap that is manufactured by others.
new text end

new text begin (f) "Recycle" or "recycling" means the process of transforming boat wrap through
mechanical processes into a finished product for use or into a new material capable of being
processed into a finished product. Recycle or recycling does not include:
new text end

new text begin (1) altering the chemical structure of boat wrap;
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new text begin (2) using boat wrap as or processing boat wrap into a feedstock to produce transportation
fuels or plastics; or
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new text begin (3) destroying boat wrap by incineration or other processes.
new text end

new text begin (g) "Retailer" means a person that offers boat wrap for sale at retail in or into this state.
new text end

new text begin (h) "Stewardship organization" means an organization designated by one or more
producers to act on their behalf as an agent to design, submit, and implement a product
stewardship plan under this section.
new text end

new text begin Subd. 2. new text end

new text begin Product stewardship program. new text end

new text begin A producer selling or offering boat wrap for
sale in or into this state must, through membership in a stewardship organization, implement
and finance a statewide product stewardship program to reduce the volume of boat wrap
disposed of in landfills by promoting and providing for the negotiation and execution of
agreements to collect, transport, and recycle boat wrap.
new text end

new text begin Subd. 3. new text end

new text begin Participation required to sell. new text end

new text begin (a) On and after July 1, 2025, or, for boat wrap
brands not sold in or into this state before that date, no later than three months after a
producer's stewardship plan is approved by the commissioner under this section, no producer,
wholesaler, or retailer may sell or offer boat wrap for sale in or into this state unless the
producer participates in an approved stewardship plan through a stewardship organization.
new text end

new text begin (b) Each producer must enter into an agreement with a stewardship organization to
operate, on the producer's behalf, a product stewardship program approved by the
commissioner.
new text end

new text begin (c) All producers offering boat wrap for sale in or into this state must become a member
of a single stewardship organization implementing a single stewardship plan.
new text end

new text begin Subd. 4. new text end

new text begin Stewardship plan required. new text end

new text begin On or before March 1, 2025, and before first
offering boat wrap for sale in or into this state, a producer must submit a stewardship plan
to the commissioner or must submit documentation to the commissioner demonstrating that
the producer has entered into an agreement with a stewardship organization to be an active
participant in a product stewardship program approved by the commissioner under
subdivision 7. A stewardship plan must include all elements required under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Plan content. new text end

new text begin A stewardship plan must contain:
new text end

new text begin (1) contact information for the individual and the entity submitting the plan, a list of all
producers participating in the product stewardship program, and the brands of boat wrap
included in the product stewardship program;
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new text begin (2) certification that the product stewardship program will accept all discarded boat wrap
regardless of who produced it;
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new text begin (3) a description of methods by which boat wrap will be collected in all areas of the state
without relying on end-of-life fees paid by boat wrap purchasers, including an explanation
of how the collection system will be convenient and adequate to serve the needs of boat
owners, marinas, and boat storage establishments in both urban and rural areas on an ongoing
basis and a discussion of how existing marinas, boat storage establishments, and sites
designated as recycling centers under section 115A.555 will be considered when selecting
collection sites;
new text end

new text begin (4) a description of how the performance of the collection and recycling program will
be measured, monitored, and maintained;
new text end

new text begin (5) the names and locations of collectors, transporters, and recyclers that will manage
discarded boat wrap;
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new text begin (6) a description of how discarded boat wrap will be safely and securely transported,
tracked, and handled from collection through final recycling and disposal;
new text end

new text begin (7) a description of the methods that will be used to separate and manage nonrecyclable
materials attached to boat wrap and to recycle discarded boat wrap;
new text end

new text begin (8) a description of:
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new text begin (i) the promotion and outreach activities that will be undertaken to encourage participation
in the boat wrap collection and recycling programs and how their effectiveness will be
evaluated; and
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new text begin (ii) the process that will be followed to modify the program, when necessary;
new text end

new text begin (9) the annual performance goals established by the commissioner under subdivision
12;
new text end

new text begin (10) evidence of adequate insurance and financial assurance that may be required for
collection, handling, and disposal operations; and
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new text begin (11) a discussion of the status of end markets for collected boat wrap and what, if any,
additional end markets are needed to improve the functioning of the program.
new text end

new text begin Subd. 6. new text end

new text begin Consultation required. new text end

new text begin In developing a stewardship plan, a stewardship
organization or individual producer submitting a stewardship plan must consult with
stakeholders, including boat owners, owners of marinas and boat storage establishments,
contractors, collectors, recyclers, and local units of government.
new text end

new text begin Subd. 7. new text end

new text begin Agency review and approval. new text end

new text begin (a) Within 90 days after receiving a proposed
stewardship plan, the commissioner must determine whether the plan complies with
subdivision 5. If the commissioner approves a plan, the commissioner must notify the
applicant of the plan approval in writing. If the commissioner rejects a plan, the commissioner
must notify the applicant in writing of the reasons for rejection. An applicant whose plan
is rejected by the commissioner must submit a revised plan to the commissioner within 60
days after receiving notice of rejection. If a revised plan is rejected by the commissioner,
the commissioner may elect to write a plan that the applicant must implement.
new text end

new text begin (b) A stewardship organization is responsible for notifying the commissioner of any
proposed changes or modifications to the plan or its implementation. A written plan revision
must be submitted to the commissioner for review and may not be implemented without
written approval from the commissioner.
new text end

new text begin (c) A stewardship organization may operate under an approved stewardship plan for
five years.
new text end

new text begin (d) Six months before an approved stewardship plan expires, a stewardship organization
must submit a new plan for commissioner approval that meets the requirements of this
section. The commissioner must review the new plan according to this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Plan availability. new text end

new text begin The commissioner must make a draft stewardship plan
available on the agency's website and at the agency's headquarters for public review and
comment at least 30 days before the commissioner's decision regarding plan approval. The
commissioner must make an approved stewardship plan available on the agency's website
and at the agency's headquarters.
new text end

new text begin Subd. 9. new text end

new text begin Conduct authorized. new text end

new text begin A stewardship organization that organizes collection,
transport, and recycling of boat wrap under this section is immune from liability for conduct
under state laws relating to antitrust, restraint of trade, unfair trade practices, and other
regulation of trade or commerce only to the extent that the conduct is necessary to plan and
implement the producer's or organization's chosen organized collection or recycling program.
new text end

new text begin Subd. 10. new text end

new text begin Stewardship organization responsibilities. new text end

new text begin A stewardship organization must
provide boat wrap purchasers with educational materials regarding the product stewardship
program. The materials must include, but are not limited to, information regarding available
end-of-life management options for boat wrap offered through the product stewardship
program.
new text end

new text begin Subd. 11. new text end

new text begin Retailer responsibilities. new text end

new text begin (a) A retailer is responsible for reviewing the list
of compliant producers on the agency's website, maintained under subdivision 12, to
determine whether a producer is compliant with this section.
new text end

new text begin (b) A retailer or wholesaler of boat wrap is not in violation of this subdivision if, on the
date the boat wrap was ordered from a producer or wholesaler, the producer was listed as
compliant on the agency's website.
new text end

new text begin (c) A retailer may elect to participate as a designated point where boat wrap is collected
as part of a product stewardship program approved under this section and in accordance
with applicable law.
new text end

new text begin Subd. 12. new text end

new text begin Agency responsibilities. new text end

new text begin (a) The commissioner must maintain on the agency
website a list of all compliant producers and brands participating in stewardship plans that
the commissioner has approved and a list of all producers and brands the commissioner has
identified as noncompliant with this section.
new text end

new text begin (b) The commissioner must, in consultation with the stewardship organization, establish
annual performance goals regarding the percentage and weight of boat wrap collected and
recycled that the stewardship organization must incorporate into its stewardship plan and
meet annually. The goals must increase each year. By the end of the fifth year of the initial
product stewardship plan approved by the commissioner, no less than 50 percent of the total
weight of boat wrap sold in this state must be collected and recycled, and by the end of the
fifth year of the second product stewardship plan, no less than 80 percent of the total weight
of boat wrap sold in this state must be collected and recycled. The performance goals, whose
derivation must be described, must be based on:
new text end

new text begin (1) the most recent collection data available for the state;
new text end

new text begin (2) the estimated weight of boat wrap discarded annually; and
new text end

new text begin (3) actual collection data from boat wrap recycling or stewardship programs operating
in other states.
new text end

new text begin Subd. 13. new text end

new text begin Administrative fee. new text end

new text begin (a) A stewardship organization must pay an annual
administrative fee to the commissioner. Before June 1, 2025, and before each June 1
thereafter, the commissioner must identify the costs the agency incurs to administer and
enforce this section. The commissioner must set the fee at an amount that, when paid by
the stewardship organization, is sufficient to reimburse the agency's full costs of administering
and enforcing this section but does not exceed those costs.
new text end

new text begin (b) A stewardship organization must pay the administrative fee required under this
subdivision on or before July 1, 2025, and annually thereafter, on a schedule and in a manner
prescribed by the commissioner.
new text end

new text begin (c) The commissioner must deposit all fees received under this subdivision in the account
established in subdivision 15.
new text end

new text begin Subd. 14. new text end

new text begin User fees prohibited. new text end

new text begin A stewardship organization or retailer may not charge
a fee to a person for providing boat wrap for collection and recycling under a stewardship
program approved by the commissioner under this section.
new text end

new text begin Subd. 15. new text end

new text begin Account established. new text end

new text begin (a) A boat wrap stewardship account is established in
the special revenue fund in the state treasury. The account consists of money received from
the administrative fee established in subdivision 13. The commissioner must manage the
account.
new text end

new text begin (b) Money in the account is appropriated annually to the commissioner for administering
and enforcing this section.
new text end

new text begin Subd. 16. new text end

new text begin Stewardship reports. new text end

new text begin Beginning March 1, 2026, and each March 1 thereafter,
a stewardship organization operating under this section must submit an annual report to the
commissioner describing the program operations of the stewardship plan during the previous
calendar year. At a minimum, the report must contain:
new text end

new text begin (1) a description of the methods used to collect, transport, and process discarded boat
wrap in all regions of the state;
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new text begin (2) the weight of all boat wrap collected in each separate region of the state;
new text end

new text begin (3) a comparison of the amount of boat wrap collected with the performance goals
established in the stewardship plan and, if the goals have not been met, a discussion of
actions the stewardship organization will take to ensure that they are achieved in the future;
new text end

new text begin (4) the weight of discarded boat wrap collected in the state by method of disposition,
including recycling and other methods of processing;
new text end

new text begin (5) a comparison of program performance with the performance goals established by
the commissioner under subdivision 12 and, if applicable, a discussion of why the
performance goals were not met and proposed modifications to the collection program the
stewardship organization will implement to ensure that future performance goals will be
met;
new text end

new text begin (6) samples of educational materials provided to boat wrap consumers, marinas, and
boat storage establishments and an evaluation of the effectiveness of the materials and the
methods used to disseminate the materials; and
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new text begin (7) an independent financial audit of stewardship organization activities.
new text end

new text begin Subd. 17. new text end

new text begin Data classification. new text end

new text begin Trade secret and sales information, as defined under
section 13.37, submitted to the commissioner under this section are private or nonpublic
data under section 13.37.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end