1.1 	A bill for an act
1.2 	relating to solid waste; establishing Packaging Waste and Cost Reduction Act; 
1.3 	authorizing rulemaking;proposing coding for new law in Minnesota Statutes, 
1.4 	chapter 115A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [115A.144] SHORT TITLE.
1.7 	Sections 115A.144 to 115A.1462 may be cited as the "Packaging Waste and Cost 
1.8 	Reduction Act."

1.9 	Sec. 2. [115A.1441] DEFINITIONS.
1.10 		Subdivision 1.Scope. For the purposes of sections 115A.144 to 115A.1462, the terms 
1.11 	in this section have the meanings given.
1.12 		Subd. 2.Advisory board. "Advisory board" or "board" means the Producer 
1.13 	Responsibility Advisory Board established under section 115A.1444.
1.14 		Subd. 3.Brand. "Brand" means a name, symbol, word, or mark that identifies a product 
1.15 	and attributes the product and its components, including packaging, to the brand owner.
1.16 		Subd. 4.Brand owner. "Brand owner" means a person that owns or licenses a brand or 
1.17 	that otherwise has rights to market a product under the brand, whether or not the brand's 
1.18 	trademark is registered.
1.19 		Subd. 5.Collection rate. "Collection rate" means the amount of a covered material by 
1.20 	covered materials type collected by service providers and transported for reuse, recycling, 
1.21 	or composting divided by the total amount of the type of a covered material by covered 
2.1 	materials type sold or distributed into the state by the relevant unit of measurement 
2.2 	established in section 115A.1451.
2.3 		Subd. 6.Compostable material. "Compostable material" means a covered material 
2.4 	that:
2.5 	(1) meets, and is labeled to reflect that it meets, the American Society for Testing and 
2.6 	Materials Standard Specification for Labeling of Plastics Designed to be Aerobically 
2.7 	Composted in Municipal or Industrial Facilities (D6400) or its successor;
2.8 	(2) meets, and is labeled to reflect that it meets, the American Society for Testing and 
2.9 	Materials Standard Specification for Labeling of End Items that Incorporate Plastics and 
2.10 	Polymers as Coatings or Additives with Paper and Other Substrates Designed to be 
2.11 	Aerobically Composted in Municipal or Industrial Facilities (D6868) or its successor;
2.12 	(3) is comprised of only wood without any coatings or additives; or
2.13 	(4) is comprised of only paper without any coatings or additives.
2.14 		Subd. 7.Composting. "Composting" means the controlled microbial degradation of 
2.15 	source-separated compostable materials to yield a humus-like product.
2.16 		Subd. 8.Composting rate. "Composting rate" means the amount of compostable covered 
2.17 	material that is managed through composting, divided by the total amount of compostable 
2.18 	covered material sold or distributed into the state by the relevant unit of measurement 
2.19 	established in section 115A.1451.
2.20 		Subd. 9.Covered material. "Covered material" means packaging and paper products 
2.21 	introduced into the state. Covered material does not include exempt materials.
2.22 		Subd. 10.Covered materials type. "Covered materials type" means a singular and 
2.23 	specific type of covered material that can be categorized based on distinguishing chemical 
2.24 	or physical properties, including properties that allow for a covered materials type to be 
2.25 	aggregated into a commonly defined discrete commodity category for purposes of reuse, 
2.26 	recycling, or composting, and based on similar uses in the form of a product or package.
2.27 		Subd. 11.De minimis producer. "De minimis producer" means a person that in the 
2.28 	most recent fiscal year:
2.29 	(1) introduced less than one ton of covered material into this state; and
2.30 	(2) earned global gross revenues of less than $2,000,000.
2.31 		Subd. 12.Environmental impact. "Environmental impact" means the environmental 
2.32 	impact of a covered material from extraction and processing of the raw materials composing 
3.1 	the material through manufacturing; distribution; use; recovery for reuse, recycling, or 
3.2 	composting; and final disposal.
3.3 		Subd. 13.Exempt materials. "Exempt materials" means materials, or any portion of 
3.4 	materials, that:
3.5 	(1) are packaging for infant formula, as defined in United States Code, title 21, section 
3.6 	321(z);
3.7 	(2) are packaging for medical food, as defined in United States Code, title 21, section 
3.8 	360ee(b)(3);
3.9 	(3) are packaging for a fortified oral nutritional supplement used by persons who require 
3.10 	supplemental or sole source nutrition to meet nutritional needs due to special dietary needs 
3.11 	directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, 
3.12 	as those terms are defined by the International Classification of Diseases, Tenth Revision; 
3.13 	or
3.14 	(4) are not covered materials, as determined by the commissioner.
3.15 		Subd. 14.Food packaging. "Food packaging" has the meaning given in section 325F.075.
3.16 		Subd. 15.Independent auditor. "Independent auditor" means an independent and 
3.17 	actively licensed certified public accountant that is:
3.18 	(1) retained by a producer responsibility organization;
3.19 	(2) not otherwise employed by or affiliated with a producer responsibility organization; 
3.20 	and
3.21 	(3) qualified to conduct an audit under state law.
3.22 		Subd. 16.Infrastructure investment. "Infrastructure investment" means an investment 
3.23 	by a producer responsibility organization that funds:
3.24 	(1) equipment or facilities in which covered materials are prepared for reuse, recycling, 
3.25 	or composting;
3.26 	(2) equipment or facilities used for reuse, recycling, or composting of covered materials; 
3.27 	or
3.28 	(3) the expansion or strengthening of demand for and use of covered materials by 
3.29 	responsible markets in the state or region.
3.30 		Subd. 17.Introduce. "Introduce" means to sell, offer for sale, distribute, or use to ship 
3.31 	a product within or into this state.
4.1 		Subd. 18.Living wage. "Living wage" means the minimum hourly wage necessary to 
4.2 	allow a person working 40 hours per week to afford basic needs.
4.3 		Subd. 19.Needs assessment. "Needs assessment" means an assessment conducted 
4.4 	according to section 115A.1450. Except where the context requires otherwise, needs 
4.5 	assessment means the most recently completed needs assessment.
4.6 		Subd. 20.Nondisclosure agreement. "Nondisclosure agreement" means an agreement 
4.7 	that requires the parties to the agreement to treat private and nonpublic data submitted to 
4.8 	facilitate the completion of a needs assessment according to section 115A.06, subdivision 
4.9 	13.
4.10 		Subd. 21.Packaging. "Packaging" has the meaning given in section 115A.03 and 
4.11 	includes food packaging.
4.12 		Subd. 22.Paper product. "Paper product" means a product made primarily from wood 
4.13 	pulp or other cellulosic fibers, except that paper product does not include bound books or 
4.14 	products that recycling or composting facilities will not accept because of the unsafe or 
4.15 	unsanitary nature of the paper product.
4.16 		Subd. 23.Postconsumer recycled content. "Postconsumer recycled content" means 
4.17 	the portion of a product composed of postconsumer material, expressed as a percentage of 
4.18 	the total weight of the product.
4.19 		Subd. 24.Producer. (a) "Producer" means the following person responsible for 
4.20 	compliance with requirements under this act for a covered material sold, offered for sale, 
4.21 	or distributed in or into this state:
4.22 	(1) for items sold in or with packaging at a physical retail location in this state:
4.23 	(i) if the item is sold in or with packaging under the brand of the item manufacturer or 
4.24 	is sold in packaging that lacks identification of a brand, the producer is the person that 
4.25 	manufactures the item;
4.26 	(ii) if there is no person to which item (i) applies, the producer is the person that is 
4.27 	licensed to manufacture and sell or offer for sale to consumers in this state an item with 
4.28 	packaging under the brand or trademark of another manufacturer or person;
4.29 	(iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner 
4.30 	of the item;
4.31 	(iv) if there is no person described in item (i), (ii), or (iii) within the United States, the 
4.32 	producer is the person who is the importer of record for the item into the United States for 
5.1 	use in a commercial enterprise that sells, offers for sale, or distributes the item in this state; 
5.2 	or
5.3 	(v) if there is no person described in items (i) to (iv), the producer is the person that first 
5.4 	distributes the item in or into this state;
5.5 	(2) for items sold or distributed in packaging in or into this state via e-commerce, remote 
5.6 	sale, or distribution:
5.7 	(i) for packaging used to directly protect or contain the item, the producer of the packaging 
5.8 	is the same as the producer identified under clause (1); and
5.9 	(ii) for packaging used to ship the item to a consumer, the producer of the packaging is 
5.10 	the person that packages the item to be shipped to the consumer;
5.11 	(3) for packaging that is a covered material and is not included in clauses (1) and (2), 
5.12 	the producer of the packaging is the person that first distributes the item in or into this state;
5.13 	(4) for paper products that are magazines, catalogs, telephone directories, or similar 
5.14 	publications, the producer is the publisher;
5.15 	(5) for paper products not described in clause (4):
5.16 	(i) if the paper product is sold under the manufacturer's own brand, the producer is the 
5.17 	person that manufactures the paper product;
5.18 	(ii) if there is no person to which item (i) applies, the producer is the person that is the 
5.19 	owner or licensee of a brand or trademark under which the paper product is used in a 
5.20 	commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or 
5.21 	not the trademark is registered in this state;
5.22 	(iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner 
5.23 	of the paper product;
5.24 	(iv) if there is no person described in item (i), (ii), or (iii) within the United States, the 
5.25 	producer is the person that imports the paper product into the United States for use in a 
5.26 	commercial enterprise that sells, offers for sale, or distributes the paper product in this state; 
5.27 	or
5.28 	(v) if there is no person described in items (i) to (iv), the producer is the person that first 
5.29 	distributes the paper product in or into this state; and
5.30 	(6) a person is the producer of a covered material sold, offered for sale, or distributed 
5.31 	in or into this state, as defined in clauses (1) to (5), except:
6.1 	(i) where another person has mutually signed an agreement with a producer as defined 
6.2 	in clauses (1) to (5) that contractually assigns responsibility to the person as the producer, 
6.3 	and the person has joined a registered producer responsibility organization as the responsible 
6.4 	producer for that covered material under this act. In the event that another person is assigned 
6.5 	responsibility as the producer under this subdivision, the producer under clauses (1) to (5) 
6.6 	must provide written certification of that contractual agreement to the producer responsibility 
6.7 	organization; and
6.8 	(ii) if the producer described in clauses (1) to (5) is a business operated wholly or in part 
6.9 	as a franchise, the producer is the franchisor if that franchisor has franchisees that have a 
6.10 	commercial presence within the state.
6.11 	(b) "Producer" does not include:
6.12 	(1) government agencies, municipalities, or other political subdivisions of the state;
6.13 	(2) registered 501(c)(3) charitable organizations and 501(c)(4) social welfare 
6.14 	organizations; or
6.15 	(3) de minimis producers.
6.16 		Subd. 25.Producer responsibility organization. "Producer responsibility organization" 
6.17 	means a nonprofit corporation that is tax exempt under chapter 501(c)(3) of the federal 
6.18 	Internal Revenue Code and that is created by a group of producers to implement activities 
6.19 	under this act.
6.20 		Subd. 26.Recycling. "Recycling" has the meaning given in section 115A.03 except that 
6.21 	recycling does not include reuse or composting.
6.22 		Subd. 27.Recycling rate. "Recycling rate" means the amount of covered material, in 
6.23 	aggregate or by individual covered materials type, managed through recycling in a calendar 
6.24 	year divided by the total amount of covered materials sold or distributed into the state by 
6.25 	the relevant unit of measurement established in section 115A.1451.
6.26 		Subd. 28.Responsible market. "Responsible market" means a materials market that:
6.27 	(1) reuses, recycles, composts, or otherwise recovers materials and disposes of 
6.28 	contaminants in a manner that protects the environment and minimizes risks to public health 
6.29 	and worker health and safety;
6.30 	(2) complies with all applicable federal, state, and local statutes and rules governing 
6.31 	environmental, health, safety, and financial responsibility;
6.32 	(3) possesses all requisite licenses and permits required by government agencies;
7.1 	(4) if the market operates in the state, manages waste according to the waste management 
7.2 	goal and priority order of waste management practices stated in section 115A.02; and
7.3 	(5) minimizes adverse impacts to environmental justice areas.
7.4 		Subd. 29.Reusable. "Reusable" means capable of reuse.
7.5 		Subd. 30.Reuse. "Reuse" means the return of a covered material to the marketplace and 
7.6 	the refilling or continued use of the covered material in the marketplace for its original 
7.7 	intended purpose without a change in form when the covered material is:
7.8 	(1) intentionally designed and marketed to be used multiple times;
7.9 	(2) designed for durability and maintenance to extend its useful life and reduce demand 
7.10 	for new production;
7.11 	(3) supported by adequate logistics and infrastructure at a retail location, by a service 
7.12 	provider, or on behalf of or by a producer, that provides convenient access for return for 
7.13 	the purpose of refilling or continued use; and
7.14 	(4) compliant with all applicable state and local statutes and rules governing health and 
7.15 	safety.
7.16 		Subd. 31.Reuse rate. "Reuse rate" means the share of units of a covered material sold  
7.17 	or distributed into the state in a calendar year that are deemed reusable by the commissioner 
7.18 	according to section 115A.1451.
7.19 		Subd. 32.Service provider. "Service provider" means an entity that collects, transfers, 
7.20 	sorts, processes, or otherwise prepares covered materials for reuse, recycling, or composting. 
7.21 	A political subdivision that provides or that contracts or otherwise arranges with another 
7.22 	party to provide reuse, collection, recycling, or composting services for covered materials 
7.23 	within its jurisdiction may be a service provider regardless of whether it provided, contracted 
7.24 	for, or otherwise arranged for similar services before the approval of the applicable 
7.25 	stewardship plan.
7.26 		Subd. 33.Third-party certification. "Third-party certification" means certification by 
7.27 	an accredited independent organization that a standard or process required by this act, or a 
7.28 	stewardship plan approved under this act, has been achieved.
7.29 		Subd. 34.This act. "This act" means sections 115A.144 to 115A.1462.
7.30 		Subd. 35.Toxic substance. "Toxic substance" means hazardous waste; a problem 
7.31 	material; a chemical or chemical class regulated under section 115A.965, 116.943, 325F.075, 
7.32 	or 325F.172 to 325F.179; or a chemical of high concern identified under section 116.9402.
8.1 		Subd. 36.Waste reduction or source reduction. "Waste reduction" or "source reduction" 
8.2 	has the meaning given in section 115A.03, except that waste reduction or source reduction 
8.3 	does not include reuse.

8.4 	Sec. 3. [115A.1442] ESTABLISHMENT OF PROGRAM.
8.5 	Producers must implement and finance a statewide program for packaging and paper 
8.6 	products in accordance with this act that encourages packaging redesign to reduce the 
8.7 	environmental impacts and human health impacts and that reduces generation of covered 
8.8 	materials waste through waste reduction, reuse, recycling, and composting and by providing 
8.9 	for negotiation and execution of agreements to collect, transport, and process used covered 
8.10 	materials for reuse, recycling, and composting.

8.11 	Sec. 4. [115A.1443] REGISTRATION OF PRODUCER RESPONSIBILITY 
8.12 	ORGANIZATIONS.
8.13 		Subdivision 1.Annual registration. (a) By January 1, 2025, and annually thereafter, 
8.14 	producers must appoint a producer responsibility organization and the organization must 
8.15 	register with the commissioner by submitting the following:
8.16 	(1) contact information for a person responsible for implementing an approved 
8.17 	stewardship plan;
8.18 	(2) a list of all member producers that will operate under the stewardship plan 
8.19 	administered by the producer responsibility organization and, for each producer, a list of 
8.20 	all brands of the producer's covered materials introduced in this state;
8.21 	(3) copies of written agreements with each producer stating that each producer agrees 
8.22 	to operate under an approved stewardship plan administered by the producer responsibility 
8.23 	organization;
8.24 	(4) a list of current board members and the executive director if different than the person 
8.25 	responsible for implementing approved stewardship plans; and
8.26 	(5) payment of the annual fee required under subdivision 2.
8.27 	(b) If more than a single producer responsibility organization is established, the producers 
8.28 	and producer responsibility organizations must establish a coordinating body and process 
8.29 	to prevent redundancy of service contracts among service providers and to ensure the efficient 
8.30 	delivery of waste management services. The stewardship plans of all producer responsibility 
8.31 	organizations must be integrated into a single stewardship plan that covers all requirements 
8.32 	of this act and encompasses all producers when submitted to the commissioner for approval. 
9.1 	The annual reports of all producer responsibility organizations must be integrated into a 
9.2 	single annual report that covers all requirements of this act and encompasses all producers 
9.3 	when submitted to the commissioner.
9.4 		Subd. 2.Registration fee. (a) As part of its annual registration with the commissioner, 
9.5 	a producer responsibility organization must submit to the commissioner an annual fee for 
9.6 	the following year, as determined by the commissioner. Beginning October 1, 2028, and 
9.7 	annually thereafter, the commissioner must notify registered producer responsibility 
9.8 	organizations in writing of the amount of the fee for the following year. If there is more 
9.9 	than one registered producer responsibility organization, the coordinating body described 
9.10 	in subdivision 1, paragraph (b), must equitably apportion payment of the annual fee between 
9.11 	all registered producer responsibility organizations. The annual fee must be set at an amount 
9.12 	anticipated to in the aggregate meet but not exceed the commissioner's estimate of the costs 
9.13 	required to perform the commissioner's duties as described in section 115A.1445 and to 
9.14 	otherwise administer, implement, and enforce this act.
9.15 	(b) The commissioner must reconcile the fees paid by a producer responsibility 
9.16 	organization under this subdivision with the actual costs incurred by the agency on an annual 
9.17 	basis, by means of credits or refunds to or additional payments required of a producer 
9.18 	responsibility organization, as applicable.
9.19 		Subd. 3.Initial producer responsibility organization registration; implementation 
9.20 	fee. (a) Notwithstanding the other provisions of this section, the commissioner may not 
9.21 	allow registration of more than one producer responsibility organization under this section 
9.22 	before the first stewardship plan approved by the commissioner expires. If more than one 
9.23 	producer responsibility organization applies to register under this section before the first 
9.24 	stewardship plan is approved by the commissioner, the commissioner must select the producer 
9.25 	responsibility organization that will represent producers until the first stewardship plan 
9.26 	expires and must return the registration fee paid by applicants who are not selected. When 
9.27 	selecting a producer responsibility organization, the commissioner must consider whether 
9.28 	the producer responsibility organization:
9.29 	(1) has a governing board consisting of producers that represent a diversity of covered 
9.30 	materials introduced in the state; and
9.31 	(2) demonstrates adequate financial responsibility and financial controls to ensure proper 
9.32 	management of funds.
9.33 	(b) By October 1, 2025, and annually until the first stewardship plan is approved, the 
9.34 	commissioner must provide written notice to the initial producer responsibility organization 
10.1 	registered under this section of the commissioner's estimate of the cost of conducting the 
10.2 	initial needs assessment and the commissioner's costs to administer this act during the period 
10.3 	prior to plan approval. The producer responsibility organization must remit payment in full 
10.4 	for these costs to the commissioner within 45 days of receipt of this notice. The producer 
10.5 	responsibility organization may charge each member producer to cover the cost of its 
10.6 	implementation fee according to each producer's unit-, weight-, volume-, or sales-based 
10.7 	market share or by another method it determines to be an equitable determination of each 
10.8 	producer's payment obligation.
10.9 		Subd. 4.Requirement for additional producer responsibility organizations. The 
10.10 	commissioner may allow registration of more than one producer responsibility organization 
10.11 	if:
10.12 	(1) producers of a covered materials type or a specific covered material appoint a producer 
10.13 	responsibility organization; or
10.14 	(2) producers organize under additional producer responsibility organizations that meet 
10.15 	the criteria established in subdivision 3, paragraph (a).

10.16 	Sec. 5. [115A.1444] ESTABLISHMENT OF PRODUCER RESPONSIBILITY 
10.17 	ADVISORY BOARD.
10.18 		Subdivision 1.Establishment. The Producer Responsibility Advisory Board is established 
10.19 	to review all programs conducted by producer responsibility organizations under this act 
10.20 	and to advise the commissioner and producer responsibility organizations regarding the 
10.21 	implementation of this act.
10.22 		Subd. 2.Membership. (a) The membership of the advisory board consists of persons 
10.23 	appointed by the commissioner by January 1, 2025, as follows:
10.24 	(1) two members representing manufacturers of covered materials or a statewide or 
10.25 	national trade association representing those manufacturers;
10.26 	(2) two members representing recycling facilities that manage covered materials;
10.27 	(3) one member representing a waste hauler or a statewide association representing waste 
10.28 	haulers;
10.29 	(4) one member representing retailers of covered materials or a statewide trade association 
10.30 	representing those retailers;
10.31 	(5) one member representing a statewide nonprofit environmental organization;
11.1 	(6) one member representing a community-based nonprofit environmental justice 
11.2 	organization;
11.3 	(7) one member representing a waste facility that receives covered materials and transfers 
11.4 	them to another facility for reuse, recycling, or composting;
11.5 	(8) one member representing a waste facility that receives source-separated compostable 
11.6 	materials for composting or a statewide trade association that represents such facilities;
11.7 	(9) two members representing an entity that develops or offers for sale covered materials 
11.8 	that are designed for reuse and maintained through a reuse system or infrastructure or a 
11.9 	statewide or national trade association that represents such entities;
11.10 	(10) three members representing organizations of political subdivisions;
11.11 	(11) two members representing other stakeholders or additional members of interests 
11.12 	represented under clauses (1) to (10) as determined by the commissioner; and
11.13 	(12) one member representing the commissioner.
11.14 	(b) In making appointments under paragraph (a), the commissioner:
11.15 	(1) may not appoint members who are state legislators or registered lobbyists;
11.16 	(2) may not appoint members who are employees of a producer required to be members 
11.17 	of a producer responsibility organization in this state under this act; and
11.18 	(3) must endeavor to appoint members from all regions of the state.
11.19 		Subd. 3.Terms; removal. A member of the advisory board appointed under subdivision 
11.20 	2, paragraph (a), clause (12), serves at the pleasure of the commissioner. All other members 
11.21 	serve for a term of four years, except that the initial term for nine of the initial appointees 
11.22 	must be two years so that membership terms are staggered. Members may be reappointed 
11.23 	but may not serve more than eight consecutive years. Removing members and filling of 
11.24 	vacancies is governed by section 15.059, subdivision 4. Except as otherwise provided, 
11.25 	chapter 15 does not apply to the board.
11.26 		Subd. 4.Compensation. Members of the board must be compensated according to 
11.27 	section 15.059, subdivision 3.
11.28 		Subd. 5.Quorum. A majority of the voting board members constitutes a quorum. If 
11.29 	there is a vacancy in the membership of the board, a majority of the remaining voting 
11.30 	members of the board constitutes a quorum.
12.1 		Subd. 6.Voting. Action by the advisory board requires a quorum and a majority of those 
12.2 	present and voting. All members of the advisory board, except the member appointed under 
12.3 	subdivision 2, paragraph (a), clause (12), are voting members of the board.
12.4 		Subd. 7.Meetings. The advisory board must meet at least two times per year and may 
12.5 	meet more frequently upon ten days' written notice at the request of the chair or a majority 
12.6 	of its members.
12.7 		Subd. 8.Open meetings. Meetings of the board must comply with chapter 13D.
12.8 		Subd. 9.Chair. At its initial meeting, and every two years thereafter, the advisory board 
12.9 	must elect a chair and vice-chair from among its members.
12.10 		Subd. 10.Administrative and operating support. The commissioner must provide 
12.11 	administrative and operating support to the advisory board and may contract with a third-party 
12.12 	facilitator to assist in administering the activities of the advisory board, including establishing 
12.13 	a website or landing page on the agency website.
12.14 		Subd. 11.Conflict of interest policies. The commissioner must assist the advisory board 
12.15 	in developing policies and procedures governing the disclosure of actual or perceived 
12.16 	conflicts of interest that advisory board members may have as a result of their employment 
12.17 	or financial holdings of themselves or of family members. Each advisory board member is 
12.18 	responsible for reviewing the conflict of interest policies and procedures. An advisory board 
12.19 	member must disclose any instance of actual or perceived conflicts of interest at each meeting 
12.20 	of the advisory board at which recommendations regarding stewardship plans, programs, 
12.21 	operations, or activities are made by the advisory board.

12.22 	Sec. 6. [115A.1445] COMMISSIONER RESPONSIBILITIES.
12.23 	The commissioner must:
12.24 	(1) appoint the initial membership of the advisory board by January 1, 2025, according 
12.25 	to section 115A.1444;
12.26 	(2) provide administrative and operating support to the advisory board, as required by 
12.27 	section 115A.1444, subdivision 10;
12.28 	(3) complete an initial needs assessment by December 31, 2026, and update the needs 
12.29 	assessment every five years thereafter, according to section 115A.1450;
12.30 	(4) approve stewardship plans and amendments to stewardship plans according to section 
12.31 	115A.1451;
13.1 	(5) provide a list of covered materials determined to be recyclable or compostable to all 
13.2 	producer responsibility organizations by March 1, 2027, and at least every three years 
13.3 	thereafter, according to the requirements of section 115A.1453;
13.4 	(6) post on the agency's website:
13.5 	(i) the most recent registration materials submitted by producer responsibility 
13.6 	organizations, including all information submitted under section 115A.1443, subdivision 
13.7 	1;
13.8 	(ii) the most recent needs assessment;
13.9 	(iii) any stewardship plan or amendment submitted by a producer responsibility 
13.10 	organization under section 115A.1451 that is in draft form during the public comment 
13.11 	period;
13.12 	(iv) the most recent list of recyclable or compostable covered materials developed by 
13.13 	the commissioner under section 115A.1453;
13.14 	(v) the most recent list of exempt materials approved by the commissioner under section 
13.15 	115A.1453;
13.16 	(vi) links to producer responsibility organization websites;
13.17 	(vii) comments of the public, advisory board, and producer responsibility organizations 
13.18 	on the documents listed in items (ii), (iii), (iv), and (viii), and the responses of the 
13.19 	commissioner to those comments; and
13.20 	(viii) links to adopted rules implementing this act;
13.21 	(7) require and approve independent auditors to perform an annual financial audit of 
13.22 	program operations of each producer responsibility organization; and
13.23 	(8) consider and respond in writing to all written comments received from the advisory 
13.24 	board.

13.25 	Sec. 7. [115A.1446] PRODUCER RESPONSIBILITY ADVISORY BOARD 
13.26 	RESPONSIBILITIES.
13.27 	The Producer Responsibility Advisory Board must:
13.28 	(1) convene its initial meeting by March 1, 2025;
13.29 	(2) consult with the commissioner regarding the scope of the needs assessment and to 
13.30 	provide written comments on needs assessments, according to section 115A.1450, subdivision 
13.31 	2;
14.1 	(3) advise on the development of stewardship plans and amendments to stewardship 
14.2 	plans under section 115A.1451;
14.3 	(4) submit comments to producer responsibility organizations and to the commissioner 
14.4 	on any matter relevant to the administration of this act; and
14.5 	(5) provide written comments to the commissioner during any rulemaking process 
14.6 	undertaken by the commissioner under section 115A.1459.

14.7 	Sec. 8. [115A.1447] PRODUCER RESPONSIBILITY ORGANIZATION 
14.8 	RESPONSIBILITIES.
14.9 	A producer responsibility organization must:
14.10 	(1) annually register with the commissioner, according to section 115A.1443;
14.11 	(2) submit a stewardship plan to the commissioner by March 1, 2028, and every five 
14.12 	years thereafter, according to section 115A.1451;
14.13 	(3) implement stewardship plans approved by the commissioner under section 115A.1451 
14.14 	and to comply with the requirements of this act;
14.15 	(4) forward upon receipt from the commissioner the list of covered materials that are 
14.16 	deemed recyclable or compostable to all service providers that participate in a stewardship 
14.17 	plan administered by the producer responsibility organization;
14.18 	(5) collect producer fees according to section 115A.1454;
14.19 	(6) submit the reports required by section 115A.1456;
14.20 	(7) ensure that producers operating under a stewardship plan administered by the producer 
14.21 	responsibility organization comply with the requirements of the stewardship plan and with 
14.22 	this act;
14.23 	(8) expel a producer from the producer responsibility organization if efforts to return 
14.24 	the producer to compliance with the plan or with the requirements of this act are unsuccessful. 
14.25 	The producer responsibility organization must notify the commissioner when a producer 
14.26 	has been expelled under this clause;
14.27 	(9) consider and respond in writing to comments received from the advisory board, 
14.28 	including justifications for not incorporating any recommendations;
14.29 	(10) provide producers with information regarding state and federal laws that prohibit 
14.30 	substances in covered materials, including sections 115A.965, 116.943, 325F.075, and 
14.31 	325F.172 to 325F.179 and all laws prohibiting toxic substances in covered materials;
15.1 	(11) maintain a website according to section 115A.1457;
15.2 	(12) notify the commissioner within 30 days if a change is made to the contact information 
15.3 	for a person responsible for implementing the stewardship plan, a change to the board 
15.4 	members, or a change to the executive director; and
15.5 	(13) assist service providers in identifying and using responsible markets.

15.6 	Sec. 9. [115A.1448] PRODUCER RESPONSIBILITIES.
15.7 		Subdivision 1.Registration required; prohibition of sale. (a) After January 1, 2025, 
15.8 	a producer must be a member of a producer responsibility organization registered in this 
15.9 	state.
15.10 	(b) After January 1, 2029, no producer may introduce covered materials, either separately 
15.11 	or when used to package another product, unless the producer operates under a written 
15.12 	agreement with a producer responsibility organization to operate under an approved 
15.13 	stewardship plan.
15.14 	(c) After January 1, 2032, no producer may introduce covered materials into the state 
15.15 	unless the covered materials are:
15.16 	(1) reusable and included in an established reuse system that meets the rate required 
15.17 	under this act;
15.18 	(2) included on the recyclables or compostables list established under section 115A.1453; 
15.19 	or
15.20 	(3) included in an alternative collection system approved as part of a stewardship plan 
15.21 	under section 115A.1451.
15.22 		Subd. 2.Duties. A producer must:
15.23 	(1) implement the requirements of the stewardship plan under which the producer operates 
15.24 	and to comply with the requirements of this act; and
15.25 	(2) pay producer fees according to section 115A.1454.

15.26 	Sec. 10. [115A.1449] SERVICE PROVIDER RESPONSIBILITIES.
15.27 	A service provider participating in an approved stewardship plan must:
15.28 	(1) provide for the collection and management of covered materials generated in the 
15.29 	state pursuant to contractual agreements with a producer responsibility organization or 
16.1 	arrangements with other service providers that are entered into under an approved stewardship 
16.2 	plan; and
16.3 	(2) if the service provider is a political subdivision, provide at least a one-year advance 
16.4 	notice to the producer responsibility organization if the political subdivision plans to cease 
16.5 	acting as a service provider.

16.6 	Sec. 11. [115A.1450] NEEDS ASSESSMENT.
16.7 		Subdivision 1.Needs assessment required. By December 31, 2026, and every five 
16.8 	years thereafter, the commissioner must complete a statewide needs assessment according 
16.9 	to this section.
16.10 		Subd. 2.Input from interested parties. In conducting a needs assessment, the 
16.11 	commissioner must:
16.12 	(1) initiate a consultation process to obtain recommendations from the advisory board, 
16.13 	political subdivisions, service providers, producer responsibility organizations, and other 
16.14 	interested parties regarding the type and scope of information that should be collected and 
16.15 	analyzed in the statewide needs assessment required by this section;
16.16 	(2) contract with a third party who is not a producer or a producer responsibility 
16.17 	organization to conduct the needs assessment; and
16.18 	(3) prior to finalizing the needs assessment, make the draft needs assessment available 
16.19 	for comment by the advisory board, producer responsibility organizations, and the public. 
16.20 	The commissioner must respond in writing to the comments and recommendations of the 
16.21 	advisory board and producer responsibility organizations.
16.22 		Subd. 3.Content of needs assessment. A needs assessment must include at least the 
16.23 	following:
16.24 	(1) an evaluation of the performance of:
16.25 	(i) existing waste reduction, reuse, recycling, and composting efforts for each covered 
16.26 	materials type, as applicable, including collection rates, recycling rates, composting rates, 
16.27 	and reuse rates for each covered materials type;
16.28 	(ii) overall rates of recycling and composting for all covered materials; and
16.29 	(iii) the extent to which postconsumer recycled content is incorporated into each covered 
16.30 	materials type, as applicable;
17.1 	(2) an evaluation of a representative sample of management of covered materials with 
17.2 	mixed municipal solid waste, as source-separated recyclable materials, and as 
17.3 	source-separated compostable materials as received by waste management, recycling, and 
17.4 	composting facilities in the state, and relevant findings from any publicly available waste 
17.5 	stream evaluations conducted within the previous year, to evaluate the amount and portion 
17.6 	of covered materials being disposed of that would otherwise be recyclable or compostable;
17.7 	(3) proposals for a range of potential performance targets to meet statewide requirements 
17.8 	as applicable to each covered materials type to be accomplished within a five-year time 
17.9 	frame in multiple units of measurement, including but not limited to unit-based, weight-based, 
17.10 	and volume-based, for each of the following:
17.11 	(i) waste reduction;
17.12 	(ii) reuse;
17.13 	(iii) recycling;
17.14 	(iv) composting; and
17.15 	(v) postconsumer recycled content;
17.16 	(4) information to be considered in determining whether a covered materials type is 
17.17 	reusable, recyclable, or compostable, including its potential use as a marketable feedstock;
17.18 	(5) proposed plans and metrics for how to measure progress in achieving performance 
17.19 	targets and statewide requirements;
17.20 	(6) an evaluation of options for third-party certification of activities to meet obligations 
17.21 	of this act;
17.22 	(7) an inventory of the current system, including:
17.23 	(i) infrastructure, capacity, performance, funding level, and method and sources of 
17.24 	financing for the existing reuse, collection, transportation, processing, recycling, and 
17.25 	composting systems for covered materials operating in the state; and
17.26 	(ii) availability and cost of reuse, recycling, and composting services for covered materials 
17.27 	at single-family residences, multifamily residences, commercial facilities, industrial facilities, 
17.28 	institutional facilities, and public places, including identification of disparities in the 
17.29 	availability of these services in environmental justice areas compared with other areas and 
17.30 	proposals for reducing or eliminating those disparities;
17.31 	(8) an evaluation of investments needed to:
18.1 	(i) increase waste reduction, reuse, recycling, and composting rates of covered materials 
18.2 	in order to achieve performance targets proposed in clause (3);
18.3 	(ii) maintain or improve operations of existing infrastructure and accounts for reuse, 
18.4 	recycling, and composting of covered materials;
18.5 	(iii) expand the availability and accessibility of recycling collection services for recyclable 
18.6 	covered materials to all residents of the state at the same or comparable level of convenience 
18.7 	as collection services for mixed municipal solid waste; and
18.8 	(iv) establish and expand the availability and accessibility of reuse services for reusable 
18.9 	covered materials;
18.10 	(9) an assessment of the viability and robustness of markets for recyclable covered 
18.11 	materials and the degree to which these markets can be considered responsible markets;
18.12 	(10) an assessment of the level and causes of contamination of source-separated recyclable 
18.13 	materials, source-separated compostable materials and collected reusables, and the impacts 
18.14 	of contamination on service providers, including the cost to manage this contamination;
18.15 	(11) an assessment of toxic substances intentionally added to covered materials, their 
18.16 	potential environmental impacts and human health impacts, and whether this limits one or 
18.17 	more covered materials types from being used as a marketable feedstock;
18.18 	(12) an assessment of current best practices to increase public awareness, educate, and 
18.19 	complete outreach activities accounting for culturally responsive materials and methods 
18.20 	and an evaluation of the impact of these practices on:
18.21 	(i) using product labels as a means of informing consumers about environmentally sound 
18.22 	management of covered materials;
18.23 	(ii) increasing public awareness of how to manage covered materials in an 
18.24 	environmentally sound manner and how to access reuse, recycling, and composting services; 
18.25 	and
18.26 	(iii) encouraging behavior change to increase participation in reuse, recycling, and 
18.27 	composting programs;
18.28 	(13) identification of the covered materials with the most significant environmental 
18.29 	impact; and
18.30 	(14) other items identified by the commissioner that would aid the creation of the 
18.31 	stewardship plan, its administration, and the enforcement of this act.
19.1 		Subd. 4.Needs assessment as baseline. When determining the extent to which any 
19.2 	statewide requirement or performance target under this act has been achieved, information 
19.3 	contained in a needs assessment must serve as the baseline for that determination, when 
19.4 	applicable.
19.5 		Subd. 5.Participation required. A service provider or other person with data or 
19.6 	information necessary to complete a needs assessment must provide the data or information 
19.7 	to the commissioner in a timely fashion upon request. A service provider or other person 
19.8 	who does not want to be identified with information submitted to the commissioner under 
19.9 	this subdivision may request to proceed under a nondisclosure agreement. Once a request 
19.10 	is made, the requestor, the commissioner, and all third parties participating in the completion 
19.11 	of the needs assessment in whatever capacity must enter into a nondisclosure agreement. 
19.12 	Once these parties have entered into a nondisclosure agreement, the requestor must submit 
19.13 	the necessary data or information to the contractor selected by the commissioner. The 
19.14 	contractor must aggregate and anonymize the data or information received from all parties 
19.15 	proceeding under a nondisclosure agreement under this subdivision and must then submit 
19.16 	the aggregated anonymized information to the commissioner or to the party or parties 
19.17 	contracted to complete the needs assessment.

19.18 	Sec. 12. [115A.1451] STEWARDSHIP PLAN.
19.19 		Subdivision 1.Stewardship plan required. By March 1, 2028, and every five years 
19.20 	thereafter, a producer responsibility organization must submit a stewardship plan to the 
19.21 	commissioner that describes the proposed operation by the organization of programs to 
19.22 	fulfill the requirements of this act and that incorporates the findings and results of needs 
19.23 	assessments. Once approved, a stewardship plan remains in effect for five years, as amended, 
19.24 	or until a subsequent stewardship plan is approved.
19.25 		Subd. 2.Advisory board review of draft plan and amendments. A producer 
19.26 	responsibility organization must submit a draft stewardship plan or draft amendment to the 
19.27 	advisory board at least 60 days before submitting the draft plan or draft amendment to the 
19.28 	commissioner to allow the advisory board to submit comments and must address advisory 
19.29 	board comments and recommendations before submitting the draft plan or draft amendment 
19.30 	to the commissioner.
19.31 		Subd. 3.Content of stewardship plans. A proposed stewardship plan must include at 
19.32 	least the following:
19.33 	(1) performance targets applicable to each covered materials type to be accomplished 
19.34 	within a five-year period, established in subdivision 5, paragraph (a);
20.1 	(2) a description of the method of collection to be used for each covered materials type, 
20.2 	including proposals for alternative collection programs for covered materials not included 
20.3 	in the list established by the commissioner under section 115A.1453;
20.4 	(3) proposals for exemptions from performance targets for covered materials that cannot 
20.5 	be waste reduced or made reusable, recyclable, or compostable due to federal or state health 
20.6 	and safety requirements. The producer responsibility organization must identify the specific 
20.7 	requirements and the impact of covered materials;
20.8 	(4) a plan for how the producer responsibility organization will measure recycling, source 
20.9 	reduction, and reuse according to subdivision 6 and a description of how the organization 
20.10 	will measure composting and inclusion of postconsumer recycled content;
20.11 	(5) third-party certifications as required by the commissioner or voluntarily undertaken;
20.12 	(6) a budget and identification of funding needs for each of the five calendar years 
20.13 	covered by the plan, including:
20.14 	(i) producer fees and a description of the process used to calculate the fees, including 
20.15 	an explanation of how the fees meet the requirements of section 115A.1454; and
20.16 	(ii) a plan for infrastructure investments, including a description of how the process to 
20.17 	offer and select opportunities will be conducted in an open, competitive, and fair manner; 
20.18 	how it will address gaps in the system not met by service providers; and the financial and 
20.19 	legal instruments to be used;
20.20 	(7) an explanation of how the program will be fully paid for by producers, without any 
20.21 	fee, charge, surcharge, or other cost to members of the public, businesses, service providers, 
20.22 	the state or any political subdivision, or any other person who is not a producer. For purposes 
20.23 	of this requirement, a deposit made in connection with a product's reuse or recycling that 
20.24 	can be redeemed by a consumer is not a fee, charge, surcharge, or other cost;
20.25 	(8) a description of activities to be undertaken during the next five calendar years, which 
20.26 	must at a minimum describe how the producer responsibility organization, acting on behalf 
20.27 	of producers, will:
20.28 	(i) minimize the environmental impacts and human health impacts of covered materials;
20.29 	(ii) incorporate as program objectives the improved design of covered materials according 
20.30 	to section 115A.1454, subdivision 1, clause (2);
20.31 	(iii) expand and increase the convenience of reuse, collection, recycling, and composting 
20.32 	services in conformance with the waste management hierarchy under section 115A.02;
21.1 	(iv) ensure statewide collection of covered materials on the recyclable materials list 
21.2 	developed under section 115A.1453 at no cost to single-family and multifamily residences 
21.3 	and political subdivisions that arrange for the collection of recyclable materials from public 
21.4 	places; and
21.5 	(v) ensure that postconsumer recycled materials are delivered to responsible markets;
21.6 	(9) a description of how the program uses and interacts with existing collection, reuse, 
21.7 	recycling, and composting efforts and service providers and how the producer responsibility 
21.8 	organization will reimburse service providers for the cost of:
21.9 	(i) collecting covered materials generated from all single-family residences, multifamily 
21.10 	residences, and public places in the state; and
21.11 	(ii) managing covered materials generated from all single-family residences; multifamily 
21.12 	residences; public places; and commercial, industrial, and institutional facilities in the state;
21.13 	(10) reimbursement formulas and schedules of reimbursement rates for service providers 
21.14 	that elect to participate in the program and a description of how the formulas and schedules 
21.15 	were developed according to section 115A.1455;
21.16 	(11) terms and conditions for service agreements, including:
21.17 	(i) an agreement that the producer responsibility organization will treat nonpublic data  
21.18 	submitted by service providers electing to participate in the program as nonpublic data;
21.19 	(ii) a requirement that service providers accept all covered materials on the recyclable 
21.20 	or compostable materials lists established by the commissioner under section 115A.1453; 
21.21 	and
21.22 	(iii) performance standards for service providers that include a requirement that service 
21.23 	providers sorting commingled recyclable materials meet minimum material standards and 
21.24 	bale quality standards, minimum capture rates, and maximum processing residual rates and 
21.25 	demonstrate materials have been sent to a responsible market;
21.26 	(12) a description of how the producer responsibility organization will provide technical 
21.27 	assistance to:
21.28 	(i) service providers in order to deliver covered materials to responsible markets;
21.29 	(ii) producers regarding toxic substances in covered materials and actions producers can 
21.30 	take to reduce intentionally added toxic substances in covered materials through proof of 
21.31 	testing or an analytical and scientifically demonstrated methodology; and
22.1 	(iii) producers to make changes in product design that reduce the environmental impact 
22.2 	of covered materials or that increase the recoverability or marketability of covered materials 
22.3 	for reuse, recycling, or composting;
22.4 	(13) a description of how the producer responsibility organization will increase public 
22.5 	awareness, educate, and complete outreach activities accounting for culturally responsive 
22.6 	materials and methods and evaluate the efficacy of these efforts, including:
22.7 	(i) assist producers in improving product labels as a means of informing consumers 
22.8 	about reusing, recycling, composting, and other environmentally sound methods of managing 
22.9 	covered materials;
22.10 	(ii) increase public awareness of how to manage covered materials in an environmentally 
22.11 	sound manner and how to access reuse, recycling, and composting services; and
22.12 	(iii) encourage behavior change to increase participation in reuse, recycling, and 
22.13 	composting programs;
22.14 	(14) a summary of consultations held with the advisory board and other stakeholders to 
22.15 	provide input to the stewardship plan, a list of recommendations that were incorporated into 
22.16 	the stewardship plan as a result, and a list of rejected recommendations and the reasons for 
22.17 	rejection; and
22.18 	(15) strategies to incorporate findings from any relevant studies required by the 
22.19 	legislature.
22.20 		Subd. 4.Plan and amendment review and approval procedure. (a) The commissioner 
22.21 	must review and approve, deny, or request additional information for a draft stewardship 
22.22 	plan or a draft plan amendment no later than 120 days after the date the commissioner 
22.23 	receives it from a producer responsibility organization. The commissioner must post the 
22.24 	draft plan or draft amendment on the agency's website and allow public comment for no 
22.25 	less than 45 days before approving, denying, or requesting additional information on the 
22.26 	draft plan or draft amendment.
22.27 	(b) If the commissioner denies or requests additional information for a draft plan or draft 
22.28 	amendment, the commissioner must provide the producer responsibility organization with 
22.29 	the reasons, in writing, that the plan or plan amendment does not meet the plan requirements 
22.30 	of subdivision 3. The producer responsibility organization has 60 days from the date that 
22.31 	the rejection or request for additional information is received to submit to the commissioner 
22.32 	any additional information necessary for the approval of the draft plan or draft amendment. 
23.1 	The commissioner must review and approve or disapprove the revised draft plan or draft 
23.2 	amendment no later than 60 days after the date the commissioner receives it.
23.3 	(c) A producer responsibility organization may resubmit a draft plan or draft amendment 
23.4 	to the commissioner on not more than two occasions. If, after the second resubmission, the 
23.5 	commissioner determines that the draft plan or draft amendment does not meet the plan 
23.6 	requirements of this act, the commissioner must modify the draft plan or draft amendment 
23.7 	as necessary for it to meet the requirements of this act and approve it.
23.8 	(d) Upon recommendation by the advisory board, or upon the commissioner's own 
23.9 	initiative, the commissioner may require an amendment to a stewardship plan if the 
23.10 	commissioner determines that an amendment is necessary to ensure that the producer 
23.11 	responsibility organization maintains compliance with this act.
23.12 		Subd. 5.Performance targets. (a) The producer responsibility organization must propose 
23.13 	performance targets based on the needs assessment that meet the statewide requirements in 
23.14 	subdivision 7 that must be included in a stewardship plan approved under this section. 
23.15 	Performance targets must include targets for waste reduction, reuse, recycling, composting, 
23.16 	and postconsumer recycled content by covered materials type that are to be achieved by the 
23.17 	end of the stewardship plan's term. The producer responsibility organization must select 
23.18 	the unit that is most appropriate to measure each performance target as informed by the 
23.19 	needs assessment.
23.20 	(b) The commissioner may require that a producer responsibility organization obtain 
23.21 	third-party certification of any activity or achievement of any standard required by this act. 
23.22 	The commissioner must provide a producer responsibility organization with notice of at 
23.23 	least one year prior to requiring use of third-party certification under this paragraph.
23.24 	(c) The performance targets proposed under this subdivision must demonstrate continuous 
23.25 	improvement in reducing the environmental and human health impacts of covered materials 
23.26 	over time.
23.27 		Subd. 6.Measurement criteria for performance targets. (a) For purposes of 
23.28 	determining whether recycling performance targets are being met, except as modified by 
23.29 	the commissioner, a stewardship plan must stipulate that the amount of recycled material 
23.30 	must be measured at the point at which material leaves a recycling facility and must account 
23.31 	for:
23.32 	(1) levels of estimated contamination documented by the facility;
23.33 	(2) any exclusions for fuel or energy capture; and
24.1 	(3) compliance with sections 115A.965, 116.943, 325F.075, and 325F.172 to 325F.179 
24.2 	and all other laws pertaining to toxic substances in covered materials.
24.3 	(b) For purposes of determining whether source reduction performance targets are being 
24.4 	met, a stewardship plan must ensure that the amount of source reduction of covered materials 
24.5 	is measured in a manner that can determine the extent to which the amount of material used 
24.6 	for a covered material is eliminated beyond what is necessary to efficiently deliver a product 
24.7 	without damage or spoilage or other means of covered material redesign to reduce overall 
24.8 	use and environmental impacts.
24.9 	(c) For purposes of determining whether reuse targets are being met, a stewardship plan 
24.10 	must provide for measuring to be the amount of reusable covered materials to be at the point 
24.11 	at which reusable covered materials meet the following criteria as demonstrated by the 
24.12 	producer and approved by the commissioner:
24.13 	(1) whether the average minimum number of cycles of reuses within a recognized reuse 
24.14 	system has been met based on the number of times an item must be reused for it to have 
24.15 	lower environmental impacts; and
24.16 	(2) whether the demonstrated or research-based anticipated return rate of the covered 
24.17 	material to the reuse system has been met.
24.18 	(d) For other targets, the producer responsibility organization must propose a calculation 
24.19 	point for review and approval as part of the stewardship plan based on findings from the 
24.20 	needs assessment.
24.21 		Subd. 7.Statewide requirements. (a) The producer responsibility organization must 
24.22 	ensure that the following requirements are met by the end of the year indicated:
24.23 	(1) by 2033:
24.24 	(i) 65 percent of covered materials by weight sold into the state must be recycled or 
24.25 	composted;
24.26 	(ii) ten percent of the number of units of packaging sold into the state must be returned 
24.27 	to an established reuse system;
24.28 	(iii) the weight of covered materials introduced in the state must be source reduced by 
24.29 	15 percent, compared to levels identified in the initial needs estimate; and
24.30 	(iv) all covered materials sold, offered for sale, or distributed for sale in this state must 
24.31 	contain at least ten percent postconsumer recycled content, with all covered materials 
24.32 	containing an overall average of at least 30 percent; and
25.1 	(2) by 2038:
25.2 	(i) 75 percent of covered materials by weight sold into the state must be recycled or 
25.3 	composted;
25.4 	(ii) 20 percent of the number of units of packaging sold into the state must be returned 
25.5 	to an established reuse system;
25.6 	(iii) the weight of covered materials introduced in the state must be source reduced by 
25.7 	25 percent, compared to levels identified in the initial needs estimate; and
25.8 	(iv) all covered materials sold, offered for sale, or distributed for sale in this state must 
25.9 	contain at least 30 percent postconsumer recycled content, with all covered products 
25.10 	containing an overall average of at least 50 percent.
25.11 	(b) The commissioner may adjust any requirement established in paragraph (a) by no 
25.12 	more than five percent but must submit the proposed adjustment to the advisory board and 
25.13 	consider the board's recommendations before making the adjustment.
25.14 	(c) After 2038, the commissioner may establish additional statewide requirements for:
25.15 	(1) the amount of covered materials that must be recycled or composted;
25.16 	(2) the number of units of packaging sold into the state that must be returned to an 
25.17 	established reuse system;
25.18 	(3) the weight of covered materials sold into the state that must be source reduced; and
25.19 	(4) the percent of postconsumer recycled content that must be used in covered materials 
25.20 	introduced into this state.
25.21 	These statewide requirements must not be less than those listed in this subdivision.

25.22 	Sec. 13. [115A.1453] RECYCLABLE OR COMPOSTABLE COVERED 
25.23 	MATERIALS LISTS; EXEMPT MATERIALS LIST.
25.24 		Subdivision 1.List required. By March 1, 2027, and at least every three years thereafter, 
25.25 	the commissioner must complete a list of covered materials determined to be recyclable or 
25.26 	compostable statewide through systems where covered materials are commingled into a 
25.27 	recyclables stream and a separate compostables stream.
25.28 		Subd. 2.Input from interested parties. The commissioner must consult with the 
25.29 	advisory board, producer responsibility organizations, service providers, political 
25.30 	subdivisions, and other interested parties to develop the recyclable or compostable covered 
25.31 	materials lists.
26.1 		Subd. 3.Requirements. To be included on the recyclable or compostable covered 
26.2 	materials lists:
26.3 	(1) recycling or composting of the covered material type must be available to no less 
26.4 	than 60 percent of the population in the metropolitan area and no less than 60 percent of 
26.5 	the population outside the metropolitan area;
26.6 	(2) if collected for recycling, the covered material type and form must be one that is 
26.7 	regularly sorted and aggregated into defined streams for recycling processes, or the packaging 
26.8 	format must fall into a relevant Institution of Scrap Recycling Industries specification;
26.9 	(3) at least 75 percent of that covered material type by unit must be in a similar format 
26.10 	as other covered materials in that type and must be either able to be managed by recycling 
26.11 	or managed by composting;
26.12 	(4) the covered material must not include any components, features, inks, adhesives, or 
26.13 	labels that are detrimental to the recycling or composting process;
26.14 	(5) the covered material must comply with sections 115A.965, 116.943, 325F.075, and 
26.15 	325F.172 to 325F.179 and all other laws pertaining to toxic substances in covered materials; 
26.16 	and
26.17 	(6) the covered material must satisfy any other requirements determined by the 
26.18 	commissioner.
26.19 		Subd. 4.Exempt materials list. (a) A producer may request the commissioner, on a 
26.20 	form prescribed by the commissioner, to classify as an exempt material one or more types 
26.21 	of packaging. The commissioner must submit the request to the advisory board for review 
26.22 	and comment before approving or denying the request.
26.23 	(b) The commissioner may approve the request only if the commissioner determines 
26.24 	that a specific federal or state health and safety requirement prevents the packaging from 
26.25 	being waste reduced or made reusable, recyclable, or compostable.
26.26 	(c) The commissioner must review and approve, deny, or request additional information 
26.27 	for a request for classification of packaging as an exempt material no later than 120 days 
26.28 	after the date the commissioner receives the request from a producer.
26.29 	(d) The commissioner must post on the agency website a list of materials exempted 
26.30 	under this subdivision.
26.31 	(e) An exemption granted under this section is valid for two years, after which a producer 
26.32 	must reapply according to this subdivision.
27.1 		Subd. 5.Amendment. The commissioner may amend a list completed under this section 
27.2 	at any time and must provide amended lists to producer responsibility organizations as soon 
27.3 	as possible after adopting an amendment. Producer responsibility organizations must provide 
27.4 	amended lists to service providers as soon as possible after receiving the amendment and 
27.5 	work to incorporate changes in relevant service provider agreements and operations within 
27.6 	a year.

27.7 	Sec. 14. [115A.1454] PRODUCER FEES.
27.8 		Subdivision 1.Annual fee. A producer responsibility organization must annually collect 
27.9 	a fee from each producer that must:
27.10 	(1) be based on the total amount of covered materials each producer introduces in the 
27.11 	prior year calculated on a per-unit basis, such as per ton, per item, or another unit of 
27.12 	measurement;
27.13 	(2) incentivize using materials and design attributes that reduce the environmental impacts 
27.14 	and human health impacts, as determined by the commissioner, of covered materials by the 
27.15 	following methods:
27.16 	(i) eliminating intentionally added toxic substances in covered materials;
27.17 	(ii) reducing the amount of packaging per individual covered material that is necessary 
27.18 	to efficiently deliver a product without damage or spoilage without reducing its ability to 
27.19 	be recycled or reducing the amount of paper used to manufacture individual paper products;
27.20 	(iii) increasing covered materials managed in a reuse system;
27.21 	(iv) increasing the proportion of postconsumer material in covered materials;
27.22 	(v) enhancing recyclability or compostability of a covered material; and
27.23 	(vi) increasing the amount of inputs derived from renewable and sustainable sources;
27.24 	(3) discourage using materials and design attributes in a producer's covered materials 
27.25 	whose environmental impacts and human health impacts, as determined by the commissioner, 
27.26 	can be reduced by the methods listed under clause (2);
27.27 	(4) prioritize reuse by charging covered materials that are managed through a reuse 
27.28 	system only once, upon initial entry into the marketplace, and by applying the lowest fee 
27.29 	to these covered materials; and
27.30 	(5) generate revenue sufficient to pay in full:
27.31 	(i) the annual registration fee required under section 115A.1443;
28.1 	(ii) financial obligations to complete activities described in an approved stewardship 
28.2 	plan and to reimburse service providers under agreements in section 115A.1455;
28.3 	(iii) the operating costs of the producer responsibility organization; and
28.4 	(iv) for the establishment and maintenance of a financial reserve that is sufficient to 
28.5 	operate the program in a fiscally prudent and responsible manner.
28.6 		Subd. 2.Overcollections. Revenue collected under this section that exceeds the amount 
28.7 	needed to pay the costs described in subdivision 1, clause (5), must be used to improve or 
28.8 	enhance program outcomes or to reduce producer fees according to provisions of an approved 
28.9 	stewardship plan.
28.10 		Subd. 3.Prohibited conduct. Fees collected under this section may not be used for 
28.11 	lobbying, as defined in section 3.084, subdivision 1.

28.12 	Sec. 15. [115A.1455] SERVICE PROVIDER AGREEMENTS; REIMBURSEMENT 
28.13 	RATES.
28.14 		Subdivision 1.Service provider agreements and reimbursement required.  The terms 
28.15 	and conditions of the provision of reuse, collection, recycling, or composting services under 
28.16 	an approved stewardship plan must be established under a service agreement between a 
28.17 	producer responsibility organization and a service provider. In addition to the terms and 
28.18 	conditions established in an approved stewardship plan, each agreement must:
28.19 	(1) establish strong labor standards and work safety practices, including but not limited 
28.20 	to safety programs, health benefits, and living wages;
28.21 	(2) require the service provider to meet established performance standards;
28.22 	(3) prohibit the service provider from charging a fee to any person for the services 
28.23 	provided under the service agreement; and
28.24 	(4) establish clear and reasonable timelines for reimbursement.
28.25 		Subd. 2.Collection of recyclables. If a household does not have access to collection 
28.26 	services at a comparable level of convenience as collection services for mixed municipal 
28.27 	solid waste for covered materials on the recyclable covered materials list established under 
28.28 	section 115A.1453, the producer responsibility organization must ensure that collection 
28.29 	service is available to the household through a service provider.
28.30 		Subd. 3.Bidding processes. (a) For procurement of services for management of covered 
28.31 	materials and for infrastructure investments included under an approved stewardship plan, 
28.32 	a producer responsibility organization must use the competitive bidding processes established 
29.1 	in section 16C.28, subdivision 1, and publicly post bid opportunities when entering into 
29.2 	agreements with service providers that are not political subdivisions, except that preference 
29.3 	must be given to existing facilities, providers of services, and accounts in the state for reuse, 
29.4 	collection, recycling, and composting of covered materials.
29.5 	(b) No producer or producer responsibility organization may own or partially own 
29.6 	infrastructure unless, after a bidding process described in paragraph (a), no service provider 
29.7 	bids on the contract, in which case the producer responsibility organization may make 
29.8 	infrastructure investments identified under an approved stewardship plan to implement the 
29.9 	requirements in this act.
29.10 		Subd. 4.Reimbursement rates. (a) Each service agreement must include reimbursement 
29.11 	rates for services that are based on formulas that:
29.12 	(1) incorporate relevant cost information identified by the needs assessment;
29.13 	(2) reflect conditions that affect reuse, collection, recycling, and composting costs in 
29.14 	the region or jurisdiction in which the services are provided, including but not limited to:
29.15 	(i) the number and size of households;
29.16 	(ii) population density;
29.17 	(iii) collections methods employed;
29.18 	(iv) distance to consolidation or transfer facilities, reuse, recycling, or composting 
29.19 	facilities, or to responsible markets; and
29.20 	(v) other factors that may contribute to regional or jurisdictional cost differences;
29.21 	(3) reflect administrative costs of service providers, including education, public awareness 
29.22 	campaigns, and outreach program costs as applicable;
29.23 	(4) reflect planned capital improvements to facilities and equipment costs;
29.24 	(5) reflect the cost of managing contamination present in source-separated recyclable 
29.25 	materials and source-separated compostable materials, including disposal of contamination 
29.26 	and residuals;
29.27 	(6) reflect the proportion of covered compostable materials within all source-separated 
29.28 	compostable materials collected or managed through composting; and
29.29 	(7) reflect the cost of managing contamination and cleaning or sanitation needed for 
29.30 	reuse systems.
30.1 	(b) Each service agreement with a service provider that is also a political subdivision 
30.2 	must include reimbursement rates that use a rate established in a contract between a political 
30.3 	subdivision and one or more service providers in place of paragraph (a), clauses (1) and 
30.4 	(2).
30.5 		Subd. 5.Local government authority. (a) Nothing in this act shall be construed to 
30.6 	require a political subdivision to agree to operate under a stewardship plan or enter into a 
30.7 	service agreement with a producer responsibility organization. A political subdivision 
30.8 	entering into a service agreement with a producer responsibility organization may choose 
30.9 	to include services that are implemented as a result of exercising its authority under section 
30.10 	115A.94 or otherwise resulting from a competitive procurement process, regardless of 
30.11 	whether the services were established before or after the approval of any stewardship plan.
30.12 	(b) Nothing in this act restricts the authority of a political subdivision to provide waste 
30.13 	management services to residents, to contract with any entity to provide waste management 
30.14 	services, or to exercise its authority granted under section 115A.94. A producer responsibility 
30.15 	organization may not conduct activities that would conflict, compete, or otherwise interfere 
30.16 	with a political subdivision exercising its authority under section 115A.94 to organize 
30.17 	collection of solid waste, including materials collected for recycling or composting, or to 
30.18 	extend, renew, or otherwise manage any contracts entered into as a result of exercising such 
30.19 	authority or otherwise resulting from a competitive procurement process.
30.20 		Subd. 6.Dispute. There must be a dispute resolution process using third-party mediators 
30.21 	to resolve disputes related to reimbursements and service agreements.

30.22 	Sec. 16. [115A.1456] REPORTING.
30.23 		Subdivision 1.Producer responsibility organization annual report. (a) By July 1, 
30.24 	2031, and each May 1 thereafter, a producer responsibility organization must submit a 
30.25 	written report to the commissioner that contains, at a minimum, the following information 
30.26 	for the previous calendar year:
30.27 	(1) the amount of covered materials introduced by each covered materials type, reported 
30.28 	in the same units used to establish fees under section 115A.1454, subdivision 1, clause (1);
30.29 	(2) progress toward the performance targets reported in the same units used to establish 
30.30 	producer fees under section 115A.1454, subdivision 1, clause (1), and reported statewide 
30.31 	and for each county, including:
30.32 	(i) the amount of covered materials successfully waste reduced, reused, recycled, and 
30.33 	composted by covered materials type and the strategies or collection method used; and
31.1 	(ii) information about third-party certifications obtained;
31.2 	(3) the total cost to implement the program and a detailed description of program 
31.3 	expenditures, including:
31.4 	(i) the total amount of producer fees collected in the current calendar year; and
31.5 	(ii) a description of infrastructure investments made during the previous year;
31.6 	(4) a copy of a financial audit of program operations conducted by an independent auditor 
31.7 	approved by the commissioner;
31.8 	(5) a description of program performance problems that emerged in specific locations 
31.9 	and efforts taken or proposed by the producer responsibility organization to address them;
31.10 	(6) a discussion of technical assistance provided to producers regarding toxic substances 
31.11 	in covered materials and actions taken by producers to reduce intentionally added toxic 
31.12 	substances in covered materials beyond compliance with prohibitions already established 
31.13 	in law through proof of testing or an analytical and scientifically demonstrated methodology;
31.14 	(7) a description of public awareness, education, and outreach activities undertaken, 
31.15 	including any evaluations conducted of their efficacy, plans for next calendar year's activities, 
31.16 	and an evaluation of the process established by the producer responsibility organization to 
31.17 	answer questions from consumers regarding collection, recycling, composting, and reuse 
31.18 	activities;
31.19 	(8) a summary of consultations held with the advisory board and how any feedback was 
31.20 	incorporated into the report as a result of the consultations, together with a list of rejected 
31.21 	recommendations and the reasons for rejection;
31.22 	(9) a list of any producers found to be out of compliance with this act, and actions taken 
31.23 	by the producer responsibility organization to return the producer to compliance, and 
31.24 	notification of any producers that are no longer participating in the producer responsibility 
31.25 	organization or have been expelled due to their lack of compliance;
31.26 	(10) any proposed amendments to the stewardship plan to improve program performance 
31.27 	or reduce costs, including changes to producer fees, infrastructure investments, or 
31.28 	reimbursement formula and rates; and
31.29 	(11) any information requested by the commissioner to assist with determining 
31.30 	compliance with this act.
31.31 	(b) Every fourth year after a stewardship plan is approved by the commissioner, a 
31.32 	performance audit of the program must be completed. The performance audit must conform 
32.1 	to audit standards established by the United States Government Accountability Office; the 
32.2 	National Association of State Auditors, Comptrollers, and Treasurers; or another nationally 
32.3 	recognized organization approved by the commissioner.
32.4 		Subd. 2.Report following unmet target. A producer responsibility organization that 
32.5 	fails to meet a performance target approved in a stewardship plan must, within 90 days of 
32.6 	filing an annual report under this section, file with the commissioner an explanation of the 
32.7 	factors contributing to the failure and propose an amendment to the stewardship plan 
32.8 	specifying changes in operations that the producer responsibility organization will make 
32.9 	that are designed to achieve the following year's targets. An amendment filed under this 
32.10 	subdivision must be reviewed by the advisory board and reviewed and approved by the 
32.11 	commissioner in the manner specified in section 115A.1451, subdivisions 2 and 4.
32.12 		Subd. 3.Commissioner's report. By October 15, 2034, and every five years thereafter, 
32.13 	the commissioner must submit a report to the governor and to the chairs and ranking minority 
32.14 	members of the legislative committees with jurisdiction over solid waste. The report must 
32.15 	contain a summary of the operations of the Packaging Waste and Cost Reduction Act during 
32.16 	the previous five years, a summary of the needs assessment, a link to reports filed under 
32.17 	subdivisions 1 and 2, recommendations for policy, statutory, or regulatory changes to the 
32.18 	program, a list of efforts undertaken by the commissioner to enforce and secure compliance 
32.19 	with this act, and any other information the commissioner deems to be relevant.
32.20 		Subd. 4.Duty to cooperate. Service providers must provide producer responsibility 
32.21 	organizations with data necessary to complete the reports required by this section upon 
32.22 	request.

32.23 	Sec. 17. [115A.1457] PRODUCER RESPONSIBILITY ORGANIZATION 
32.24 	WEBSITES.
32.25 	A producer responsibility organization must maintain a website that uses best practices 
32.26 	for accessibility that contains, at a minimum:
32.27 	(1) information regarding a process that members of the public can use to contact the 
32.28 	producer responsibility organization with questions;
32.29 	(2) a directory of all service providers operating under the stewardship plan administered 
32.30 	by the producer responsibility organization, grouped by location or political subdivision, 
32.31 	and information about how to request service;
32.32 	(3) registration materials submitted to the commissioner under section 115A.1443;
32.33 	(4) the draft and approved stewardship plan and any draft and approved amendments;
33.1 	(5) information on how to manage materials, including the list of recyclable and 
33.2 	compostable materials developed by the commissioner under section 115A.1453 and any 
33.3 	alternative collection programs;
33.4 	(6) the most recent list of exempt materials approved by the commissioner under section 
33.5 	115A.1453;
33.6 	(7) the most recent needs assessment and all past needs assessments;
33.7 	(8) annual reports filed by the producer responsibility organization;
33.8 	(9) a link to administrative rules implementing this act;
33.9 	(10) comments of the advisory board on the documents listed in clauses (4) and (8), and 
33.10 	the responses of the producer responsibility organization to those comments;
33.11 	(11) the names of producers and brands that are not in compliance with section 
33.12 	115A.1448;
33.13 	(12) a list, that is updated at least monthly, of all member producers that will operate 
33.14 	under the stewardship plan administered by the producer responsibility organization and, 
33.15 	for each producer, a list of all brands of the producer's covered materials introduced in the 
33.16 	state; and
33.17 	(13) education materials on waste reduction, reuse, recycling, and composting for 
33.18 	producers and the general public.

33.19 	Sec. 18. [115A.1458] ANTICOMPETITIVE CONDUCT.
33.20 	A producer responsibility organization that arranges collection, recycling, composting, 
33.21 	or reuse services under this act may engage in anticompetitive conduct to the extent necessary 
33.22 	to plan and implement collection, recycling, composting, or reuse systems to meet the 
33.23 	obligations under this act, and is immune from liability under state laws relating to antitrust, 
33.24 	restraint of trade, and unfair trade practices.

33.25 	Sec. 19. [115A.1459] RULEMAKING.
33.26 	The commissioner may adopt rules to implement this act. The 18-month time limit under 
33.27 	section 14.125 does not apply to the commissioner's rulemaking authority under this section.

34.1 	Sec. 20. [115A.1460] PROVIDING INFORMATION.
34.2 	Upon request of the commissioner for purposes of determining compliance with this 
34.3 	act, or for purposes of implementing this act, a person must furnish to the commissioner 
34.4 	any information that the person has or may reasonably obtain.

34.5 	Sec. 21. [115A.1461] DEPOSIT RETURN SYSTEM.
34.6 	It is the intent of the legislature that if a bottle deposit return system is enacted in the 
34.7 	future, it will be harmonized with this act in a manner that ensures that:
34.8 	(1) materials covered in that system are exempt from this act or related financial 
34.9 	obligations are reduced;
34.10 	(2) colocation of drop-off facilities and alternative collection sites is maximized;
34.11 	(3) education and outreach is integrated between the two programs; and
34.12 	(4) waste reduction and reuse strategies are prioritized between the two programs.

34.13 	Sec. 22. [115A.1462] ENFORCEMENT.
34.14 	(a) The commissioner must enforce this act as provided under this section and sections 
34.15 	115.071 and 116.072. The commissioner may revoke a registration of a producer 
34.16 	responsibility organization or producer found to have violated this act.
34.17 	(b) Notwithstanding the penalty limits contained in section 115.071, subdivision 3, and 
34.18 	except as otherwise provided in paragraph (c), a person that violates or fails to perform a 
34.19 	duty imposed by this act or any rule adopted thereunder is liable for a civil penalty not to 
34.20 	exceed $25,000 per day of violation.
34.21 	(c) Notwithstanding the penalty limits contained in section 115.071, subdivision 3, a 
34.22 	producer responsibility organization or producer that violates a provision of or fails to 
34.23 	perform a duty imposed by this act, a rule adopted thereunder, or requirements of a 
34.24 	stewardship plan approved by the commissioner, is liable for a civil penalty not to exceed 
34.25 	$25,000 per day of violation. For a second violation occurring within five years after the 
34.26 	approval of a stewardship plan, a producer responsibility organization or producer is liable 
34.27 	for a civil penalty not to exceed $50,000 per day of violation. For a third or subsequent 
34.28 	violation occurring within five years after the approval of a stewardship plan, a producer 
34.29 	responsibility organization or producer is liable for a civil penalty not to exceed $100,000 
34.30 	per day of violation.

35.1 	Sec. 23. WORKPLACE CONDITIONS AND EQUITY STUDY.
 35.2 	(a) By January 1, 2032, the commissioner of the Pollution Control Agency must contract 
35.3 	with a third party that is not a producer or a producer responsibility organization to conduct 
35.4 	a study of the recycling, composting, and reuse facilities operating in the state. The study 
35.5 	must analyze, at a minimum, information about:
35.6 	(1) working conditions, wage and benefit levels, and employment levels of minorities 
35.7 	and women at those facilities;
35.8 	(2) barriers to ownership of recycling, composting, and reuse operations faced by women 
35.9 	and minorities;
35.10 	(3) the degree to which residents of multifamily buildings have less convenient access 
35.11 	to recycling, composting, and reuse opportunities than those living in single-family homes;
35.12 	(4) the degree to which environmental justice areas have access to fewer recycling, 
35.13 	composting, and reuse opportunities compared to other parts of the state;
35.14 	(5) the degree to which programs to increase access, convenience, and education are 
35.15 	successful in raising reuse, recycling, and composting rates in areas where participation in 
35.16 	these activities is low;
35.17 	(6) strategies to increase participation in reuse, recycling, and composting; and
35.18 	(7) the degree to which residents and workers in environmental justice areas are impacted 
35.19 	by emissions, toxic substances, and other pollutants from solid waste facilities in comparison 
35.20 	to other areas of the state and provide recommendations to mitigate those impacts.
35.21 	(b) The initial producer responsibility organization registered by the commissioner under 
35.22 	Minnesota Statutes, sections 115A.144 to 115A.1462, must cover the cost of conducting 
35.23 	the study through its annual registration fee and recommended actions identified in the study 
35.24 	must be considered as part of future stewardship plans as required under Minnesota Statutes, 
35.25 	section 115A.1451, including adjustments to service provider agreements and reimbursements 
35.26 	as established under Minnesota Statutes, section 115A.1455.

35.27 	Sec. 24. COVERED MATERIALS POLLUTION AND CLEANUP STUDY.
 35.28 	(a) By January 1, 2032, the commissioner of the Pollution Control Agency, in consultation 
35.29 	with the commissioners of health and natural resources, must contract with a third party 
35.30 	that is not a producer or a producer responsibility organization to conduct a study to identify 
35.31 	the contribution of covered products to litter and water pollution in Minnesota. The report 
35.32 	must at a minimum:
36.1 	(1) analyze historical and current environmental and human health impacts of littered 
36.2 	covered materials and their associated toxic substances in the environment;
36.3 	(2) estimate the cost of cleanup and prevention; and
36.4 	(3) provide recommendations for how to reduce and mitigate the impacts of litter in the 
36.5 	state.
36.6 	(b) The contracted third party must consult with units of local government, the 
36.7 	commissioners of health and natural resources, and environmental justice organizations.
36.8 	(c) The initial producer responsibility organization registered by the commissioner under 
36.9 	Minnesota Statutes, sections 115A.144 to 115A.1462, must cover the cost of conducting 
36.10 	the study through its annual registration fee and recommended actions identified in the study 
36.11 	must be considered as part of future stewardship plans, as required under Minnesota Statutes, 
36.12 	section 115A.1451.