as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
|Introduction||Posted on 03/19/1997|
1.1 A bill for an act 1.2 relating to the environment; regulating packaging; 1.3 setting mandatory recycled content for certain 1.4 products and packaging; regulating transport 1.5 packaging; regulating disposable packaging; requiring 1.6 use of reusable packaging for certain percentages of 1.7 beverages sold or, in the alternative, refundable 1.8 recycling deposits on nonreusable beverage packaging; 1.9 requiring a wood waste and wood products residue 1.10 marketing plan; providing civil and administrative 1.11 penalties; amending Minnesota Statutes 1996, sections 1.12 16B.122, subdivision 1, and by adding a subdivision; 1.13 and 297A.25, subdivision 2; proposing coding for new 1.14 law in Minnesota Statutes, chapters 16B; 115A; 116F; 1.15 and 325E; repealing Minnesota Statutes 1996, sections 1.16 116F.01; 116F.02; 116F.05; 116F.06; and 116F.08. 1.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.18 ARTICLE 1 1.19 Section 1. [115A.561] [RECYCLED CONTENT IN CERTAIN 1.20 PRODUCTS AND PACKAGING.] 1.21 Subdivision 1. [MINIMUM RECYCLED CONTENT.] (a) Newsprint 1.22 that is distributed for sale to or use by consumers in this 1.23 state must contain a minimum percentage of postconsumer material 1.24 of 25 percent by January 1, 1999, and 50 percent by January 1, 1.25 2003, unless the newsprint is consumed by a printer who prints 1.26 less than 10,000 copies each month of all publications printed 1.27 by that printer on newsprint, in which case, the newsprint must 1.28 contain a minimum percentage of postconsumer material of 15 1.29 percent by January 1, 1999, and 30 percent by January 1, 2003. 1.30 (b) Glass packaging that is distributed for sale or use, 1.31 including sale to or use by consumers of products contained in 2.1 the glass packaging who reside in this state, must contain a 2.2 minimum percentage of postconsumer material of 25 percent by 2.3 January 1, 1999, and 50 percent by January 1, 2003. 2.4 (c) A rigid plastic container that is distributed for sale 2.5 or use, including sale to or use by a consumer of a product 2.6 contained in the container who resides in this state, must 2.7 contain a minimum of ten percent postconsumer material by 2.8 January 1, 1999, and 25 percent by January 1, 2003. For the 2.9 purposes of this paragraph, "rigid plastic container" means a 2.10 formed or molded container composed predominantly of plastic 2.11 resin and having a relatively inflexible finite shape or form 2.12 intended primarily as a single-service container with a capacity 2.13 of eight ounces or more, but less than five gallons. 2.14 (d) Paperboard packaging, excluding corrugated paperboard 2.15 packaging, that is distributed for sale or use, including sale 2.16 to or use by a consumer of a product contained in the packaging 2.17 who resides in this state, must contain a minimum percentage of 2.18 postconsumer material of 25 percent by January 1, 1999, and 50 2.19 percent by January 1, 2003. 2.20 Subd. 2. [EXEMPTIONS.] A product or package is exempt from 2.21 the postconsumer material requirement of subdivision 1 if the 2.22 product or package cannot comply because of other direct federal 2.23 or state requirements, including those for packaging food, 2.24 beverages, drugs, medical supplies, medical devices, or cosmetic 2.25 products under the federal Food, Drug, and Cosmetics Act. 2.26 Subd. 3. [EXCLUSIONS.] (a) The manufacturer or packager of 2.27 a product or package may apply to the commissioner for exclusion 2.28 from the requirements of subdivision 1 if: 2.29 (1) the manufacturer or packager is unable to obtain a 2.30 sufficient supply of postconsumer material to meet those 2.31 requirements and cannot reasonably manufacture or use an 2.32 alternative product or material that does comply; and 2.33 (2) the manufacturer, packager, or another person has 2.34 sought approval by the federal Food and Drug Administration of 2.35 packaging that does comply, has received a letter of objection 2.36 or denial of approval from the administration, and the 3.1 manufacturer or packager has no reasonable access to alternative 3.2 packaging that does comply. 3.3 (b) The commissioner shall develop and distribute, on 3.4 request, an application form for exclusions allowed under this 3.5 subdivision. An application must include documentation 3.6 supporting the grounds for the exclusion and a certification, 3.7 signed by an officer of the company seeking the exclusion, of 3.8 the veracity of the information in the application. An 3.9 exclusion is effective 60 days after the commissioner receives 3.10 the application unless the commissioner denies the exclusion 3.11 within that time. A denial must be in writing, mailed within 60 3.12 days of receipt of the application, and contain reasons for the 3.13 denial. The commissioner may deny an application for exclusion 3.14 only if: 3.15 (1) the application or accompanying documentation is 3.16 insufficient to show grounds for an exclusion; or 3.17 (2) other manufacturers or packagers of similar items who 3.18 are similarly situated to the applicant do comply with the 3.19 requirements. 3.20 (c) An exclusion authorized under paragraph (a), clause 3.21 (1), expires one year after the date it takes effect. An 3.22 exclusion authorized under paragraph (a), clause (2), expires 3.23 three years after the date it takes effect. 3.24 Subd. 4. [RECYCLED CONTENT; STUDY AND RECOMMENDATIONS.] (a) 3.25 The office of environmental assistance shall, after consultation 3.26 with the commissioner, manufacturers, packagers, recyclers, 3.27 public and private solid waste managers, environmental groups, 3.28 and other interested persons, determine and recommend to the 3.29 legislature minimum standards for postconsumer material content 3.30 in the following materials: 3.31 (1) paper, classified by grade and application; 3.32 (2) plastic packaging not governed by subdivision 1, 3.33 classified by resin type or application or a combination of 3.34 resin types and applications; and 3.35 (3) other packaging materials, classified by constituent 3.36 materials and applications. 4.1 (b) In determining appropriate standards, the director 4.2 shall study the effects of minimum recycled content requirements 4.3 in other states and nations, the extent to which the state has 4.4 access to products and packaging containing a minimum of 25 4.5 percent postconsumer material under existing purchasing 4.6 constraints, available and developing technologies to produce 4.7 acceptable materials with postconsumer material content, and 4.8 direct and indirect costs of postconsumer material content in 4.9 relation to direct and indirect costs of virgin materials. The 4.10 director shall recommend minimum standards sufficient to 4.11 significantly increase market demand for recyclable materials 4.12 that are technologically and economically feasible and prudent. 4.13 (c) The director shall also study the minimum standards 4.14 established in subdivision 1 that take effect in 2000 and shall 4.15 recommend either that the standards remain unchanged, be further 4.16 studied, or be reduced, increased, or repealed as appropriate to 4.17 each standard. 4.18 (d) The director shall make initial recommendations to the 4.19 legislature under this subdivision by January 1, 1998, and 4.20 thereafter at intervals to be determined by the director as 4.21 necessary to implement reasonable postconsumer material content 4.22 standards for products and packaging. 4.23 Subd. 5. [ENFORCEMENT; CIVIL AND ADMINISTRATIVE 4.24 PENALTIES.] (a) A person who violates subdivision 1 is subject 4.25 to a minimum civil or administrative penalty of $100 per item 4.26 that is distributed in the state in violation of subdivision 1. 4.27 (b) A person who supplies false information in an 4.28 application or accompanying documentation for an exclusion from 4.29 the requirements of subdivision 1 is subject to a minimum civil 4.30 or administrative penalty of $5,000. 4.31 (c) If the commissioner determines that a product or type 4.32 of packaging subject to an exclusion that has taken effect does 4.33 not qualify for the exclusion under the criteria in subdivision 4.34 3 and that the application and accompanying documentation for 4.35 the exclusion did not contain false information, the 4.36 commissioner shall, under section 116.072, order the applicant 5.1 to comply with the requirements of subdivision 1 at the earliest 5.2 of the expiration date for the exclusion or one year after 5.3 issuance of the compliance order and impose an administrative 5.4 penalty in an amount to be determined by the commissioner. The 5.5 administrative penalty must be forgiven if the applicant for the 5.6 exclusion complies with the commissioner's order. 5.7 Sec. 2. [116F.10] [DEFINITIONS.] 5.8 Unless otherwise provided, the definitions in section 5.9 115A.03 apply to this chapter. 5.10 Sec. 3. [116F.12] [TRANSPORT PACKAGING.] 5.11 Subdivision 1. [DEFINITION.] "Transport packaging" means 5.12 packaging as defined in section 115A.03, subdivision 22b, that 5.13 is used primarily for transportation of products prior to final 5.14 sale or delivery, whichever occurs later, of the products to 5.15 their ultimate consumers. Transport packaging includes, but is 5.16 not limited to, crates, barrels, boxes, pallets, and packing 5.17 materials that are or may be removed prior to final sale or 5.18 delivery of a product to a consumer. 5.19 Subd. 2. [PROHIBITIONS.] (a) Beginning January 1, 1999, 5.20 for waste material generated in the metropolitan area and 5.21 beginning January 1, 2000, for waste material generated in the 5.22 nonmetropolitan area, a person may not place transport packaging 5.23 composed of wood or corrugated paper in: 5.24 (1) mixed municipal solid waste or construction debris; 5.25 (2) a resource recovery facility other than for reuse or 5.26 recycling; or 5.27 (3) a disposal facility. 5.28 (b) Beginning January 1, 2000, for waste material generated 5.29 in the metropolitan area and beginning January 1, 2001, for 5.30 waste material generated in the nonmetropolitan area, a person 5.31 may not place transport packaging composed of plastic stretch 5.32 wrap in: 5.33 (1) mixed municipal solid waste or construction debris; 5.34 (2) a resource recovery facility other than for reuse or 5.35 recycling; or 5.36 (3) a disposal facility. 6.1 (c) Beginning January 1, 2001, for waste material generated 6.2 in the metropolitan area and beginning January 1, 2002, for 6.3 waste material generated in the nonmetropolitan area, a person 6.4 may not place any other transport packaging not governed by 6.5 paragraphs (a) and (b) in: 6.6 (1) mixed municipal solid waste or construction debris; 6.7 (2) a resource recovery facility other than for reuse or 6.8 recycling; or 6.9 (3) a disposal facility. 6.10 (d) The commissioner may allow an exception to paragraph 6.11 (a) or (c) for a composting facility and for waste delivered to 6.12 the facility if the commissioner determines that reuse of the 6.13 material is impractical, recycling of the material is 6.14 unavailable at a cost reasonably similar to the cost of 6.15 composting, and composting the material will have no adverse 6.16 impact on existing recycling programs and opportunities or on 6.17 human health and the environment. 6.18 (e) The commissioner may allow an exception from paragraph 6.19 (c) for a specific material for which a manufacturer, packager, 6.20 wholesaler, or retailer shows that: 6.21 (1) it is not feasible or prudent to establish a reuse or 6.22 recycling system; 6.23 (2) there is no reasonable substitute for which a reuse or 6.24 recycling system can be established; and 6.25 (3) the person requesting the exception submits a plan for 6.26 replacing the material or for establishing a reuse or recycling 6.27 system within three years of submitting the request. 6.28 (f) For the purposes of paragraph (e), failure of 6.29 manufacturers, packagers, wholesalers, retailers, or political 6.30 subdivisions to establish or to fund the establishment of reuse 6.31 or recycling systems is insufficient to show that a reuse or 6.32 recycling system is not feasible or prudent. 6.33 Subd. 3. [ENFORCEMENT.] For violation of subdivision 2, 6.34 the commissioner shall impose a forgivable administrative 6.35 penalty of not less than $500 for the first violation and $1,000 6.36 for each subsequent violation, unless the violator is a 7.1 manufacturer of transport packaging or a packager who uses 7.2 transport packaging, in which case the minimum penalty is $2,000 7.3 for the first violation and $5,000 for each subsequent violation. 7.4 An administrative penalty imposed for a second or 7.5 subsequent violation of subdivision 2 is not forgivable. 7.6 Sec. 4. [116F.13] [DISCARDABLE PACKAGING; REQUIREMENTS.] 7.7 Subdivision 1. [DEFINITIONS.] For the purposes of this 7.8 section: 7.9 (1) "discardable packaging" means packaging that is not 7.10 transport packaging as defined in section 116F.12 or reusable 7.11 packaging; 7.12 (2) "recyclable packaging" means packaging made of a 7.13 material that is collected either: 7.14 (i) through recycling collection programs available to 75 7.15 percent of the state's residents; or 7.16 (ii) by a collection program established by a manufacturer 7.17 or distributor of the product contained in the packaging that is 7.18 designed to collect and recycle a minimum of 60 percent of the 7.19 packaging; and 7.20 (3) "reusable packaging" means packaging that is designed 7.21 to be reused for its original purpose at least five times and 7.22 for which systems for return and reuse are in operation 7.23 statewide. 7.24 Subd. 2. [REQUIREMENTS; EXEMPTION.] (a) For a consumer 7.25 product sold or otherwise distributed for use in this state, the 7.26 person who packages the product shall: 7.27 (1) use the minimal amount of packaging necessary to 7.28 protect the product; 7.29 (2) use recyclable packaging; 7.30 (3) use packaging that, all layers taken together, contains 7.31 at least 25 percent postconsumer recycled material; and 7.32 (4) label the outermost layer of packaging to clearly 7.33 inform the consumer prior to purchase of the amount of 7.34 postconsumer recycled material content in all of the packaging 7.35 for the product as a whole and that the packaging is recyclable. 7.36 (b) Packaging is exempt from the requirements of paragraph 8.1 (a), clauses (2) and (3), only if: 8.2 (1) it cannot comply because of other direct federal or 8.3 state requirements, including requirements for packaging food, 8.4 beverages, drugs, medical supplies, medical devices, or cosmetic 8.5 products under the federal Food, Drug, and Cosmetics Act; 8.6 (2) it cannot comply because of a certifiable lack of 8.7 sufficient quantities of postconsumer material in the market; or 8.8 (3) the manufacturer, packager, or another person has 8.9 sought approval by the federal Food and Drug Administration of 8.10 packaging that does comply, has received a letter of objection 8.11 or denial of approval from the administration, and the 8.12 manufacturer or packager has no reasonable access to alternative 8.13 packaging that does comply. 8.14 Subd. 3. [REPORT; RECOMMENDATION.] As part of the report 8.15 that is due by July 1, 1999, on whether the 25 percent packaging 8.16 reduction goal has been met under section 115A.5501, subdivision 8.17 4, the director shall also report on the extent to which 8.18 packagers have complied with subdivision 2 as of December 31, 8.19 1998. 8.20 If the director finds, based on a statistically reliable 8.21 sampling of retail outlets in the state, that less than 75 8.22 percent of the discardable packaging associated with consumer 8.23 products complies with subdivision 2 or that the 25 percent 8.24 packaging reduction goal in section 115A.5501 has not been 8.25 achieved, the director, after consultation with interested 8.26 persons, including, but not limited to, packagers, wholesalers, 8.27 retailers, consumers, and public interest groups, shall 8.28 recommend how to best achieve significant reduction in the use 8.29 of discardable packaging and in the presence of discardable 8.30 packaging in solid waste. The director shall consider all means 8.31 of achieving reduction in both the quantity and toxicity of 8.32 discardable packaging in use and in the solid waste stream, 8.33 including requirements for and/or prohibitions on the use of 8.34 certain materials in the manufacture of disposable packaging; 8.35 prohibitions on the use of discardable packaging when 8.36 appropriate; requirements for manufacturers, wholesalers, and 9.1 retailers to collect discardable packaging; advance disposal or 9.2 recycling fees on discardable packaging; mandatory recycling of 9.3 discardable packaging; and any other means of achieving 9.4 reduction proposed by any interested person. At a minimum, the 9.5 recommendations must include: 9.6 (1) how, by 2003, to reduce by at least 50 percent over 9.7 1996 levels the amount of discardable packaging in solid waste 9.8 delivered to solid waste composting, incineration, 9.9 refuse-derived fuel, and disposal facilities; 9.10 (2) how to reduce, to the greatest extent technically 9.11 feasible, the presence of any materials or combinations of 9.12 materials in discardable packaging that are toxic, may combine 9.13 with other materials during a waste management process to become 9.14 toxic, or make the packaging impossible, difficult, or costly to 9.15 recycle; and 9.16 (3) how to ensure that any additional costs incurred to 9.17 redesign packaging, recycle increased quantities or types of 9.18 materials, and administer any necessary government programs to 9.19 oversee production, use, sale, and management of discardable 9.20 packaging will be recovered from the manufacture, use, and sale 9.21 of the packaging, and not from state or local revenue or from 9.22 the solid waste management system itself. 9.23 Sec. 5. [325E.043] [PLASTICS; LABEL TO STATE PERCENT OF 9.24 PRICE ATTRIBUTABLE TO PACKAGING.] 9.25 For all goods produced for retail sale and packaged with 9.26 plastic material, the label on the product must state the 9.27 percentage of the amount of the manufacturer's suggested retail 9.28 price that is attributable to the cost of the packaging of the 9.29 product. 9.30 Sec. 6. [WOOD WASTE AND WOOD PRODUCTS RESIDUE; MARKETING 9.31 PLAN.] 9.32 By January 1, 1999, the director of the office of 9.33 environmental assistance, in consultation with wood products 9.34 manufacturers, users of transport packaging made of wood or wood 9.35 products, consumers including reusers and recyclers of wood 9.36 waste and wood products residue, the commissioners of the 10.1 departments of trade and economic development, public service, 10.2 and natural resources, the Minnesota technical assistance 10.3 program, the University of Minnesota extension service, and 10.4 other interested persons, shall develop a statewide wood waste 10.5 and wood products residue marketing plan. The plan must: 10.6 (1) identify generators of wood waste and wood products 10.7 residue; 10.8 (2) identify existing and potential markets for wood waste 10.9 and wood products residue; 10.10 (3) provide guidelines for the collection, transportation, 10.11 storage, processing, and reuse or recycling of wood waste and 10.12 wood products residue; and 10.13 (4) recommend to the legislature any legislation necessary 10.14 to encourage development of greater capacity in the state to 10.15 reuse and recycle wood waste and wood products residue to ensure 10.16 that those items are managed to maximize their environmental and 10.17 economic benefits to society. 10.18 The director shall develop the marketing plan in light of 10.19 the prohibition on placing transport packaging made of wood or 10.20 wood products in solid waste or in a solid waste facility under 10.21 Minnesota Statutes, section 116F.12. The director may include 10.22 in the marketing plan a recommendation to adjust that 10.23 prohibition if necessary to implement a sound marketing system 10.24 for wood waste and wood products residue. 10.25 Sec. 7. [REPEALER.] 10.26 Minnesota Statutes 1996, sections 116F.01; 116F.02; 10.27 116F.05; 116F.06; and 116F.08, are repealed. 10.28 ARTICLE 2 10.29 Section 1. Minnesota Statutes 1996, section 16B.122, 10.30 subdivision 1, is amended to read: 10.31 Subdivision 1. [DEFINITIONS.] The definitions in this 10.32 subdivision apply to this section. 10.33 (a) "Copier paper" means paper purchased for use in copying 10.34 machines. 10.35 (b) "Office paper" means notepads, loose-leaf fillers, 10.36 tablets, and other paper commonly used in offices. 11.1 (c) "Postconsumer material" means a finished material that 11.2 would normally be discarded as a solid waste, having completed 11.3 its life cycle as a consumer item. For purposes of this 11.4 subdivision, paper upon which ink has been placed by a printing 11.5 process has completed its life cycle as a consumer item when a 11.6 printer places the paper into the recycling stream. 11.7 (d) "Practicable" means capable of being used, consistent 11.8 with performance, in accordance with applicable specifications, 11.9 and availability within a reasonable time. 11.10 (e) "Printing paper" means paper designed for printing, 11.11 other than newsprint, such as offset and publication paper. 11.12 (f) "Public entity" means the state, an office, agency, or 11.13 institution of the state, the metropolitan council, a 11.14 metropolitan agency, the metropolitan mosquito control district, 11.15 the legislature, the courts, a county, a statutory or home rule 11.16 charter city, a town, a school district, another special taxing 11.17 district, a university or college that receives state funding, 11.18 or any contractor acting pursuant to a contract with a public 11.19 entity. 11.20 (g) "Soy-based ink" means printing ink made from soy oil. 11.21 (h) "Uncoated" means not coated with plastic, clay, or 11.22 other material used to create a glossy finish. 11.23 Sec. 2. Minnesota Statutes 1996, section 16B.122, is 11.24 amended by adding a subdivision to read: 11.25 Subd. 4. [ADOPTION OF FEDERAL STANDARDS.] A public entity 11.26 shall comply with the minimum content standards for printing and 11.27 writing paper contained in Executive Order No. 12873, section 11.28 504, Federal Register, volume 58, page 54916 (1993). 11.29 Specifically, a public entity shall purchase or cause the 11.30 purchase of: 11.31 (1) high speed copier paper, offset paper, forms bond, 11.32 computer printout paper, carbonless paper, file folders, and 11.33 white woven envelopes with postconsumer material content of at 11.34 least 20 percent beginning December 31, 1997, and at least 30 11.35 percent beginning December 31, 2001; and 11.36 (2) other uncoated printing and writing paper, such as 12.1 writing and office paper, book paper, cotton fiber paper, and 12.2 cover stock, with a recycled content of at least 50 percent, 12.3 including a postconsumer material content of at least 20 percent 12.4 beginning December 31, 1997, and at least 30 percent beginning 12.5 December 31, 2001. 12.6 Sec. 3. [16B.1221] [PUBLIC ENTITY; MILK CONTAINERS.] 12.7 Beginning August 1, 1999, a public entity, as defined in 12.8 section 16B.122, shall dispense or sell milk only through bulk 12.9 dispensers or in refillable containers that the public entity 12.10 collects and returns for reuse to the milk processor or bottler. 12.11 ARTICLE 3 12.12 Section 1. [116F.20] [REUSABLE BEVERAGE PACKAGING.] 12.13 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 12.14 subdivision apply to this section. 12.15 (b) "Beverage" means a soft drink, soda water, carbonated 12.16 natural or mineral water, or other nonalcoholic carbonated 12.17 drink; beer, ale, or other malt drink; or a mixed wine or mixed 12.18 spirit drink or milk. 12.19 (c) "Beverage container" means an individual hermetically 12.20 sealed bottle, can, jar, or milk bottle composed of at least 50 12.21 percent glass, metal, or plastic by weight and used to contain 12.22 beverages in liquid form intended for human consumption and 12.23 which, when sold, contains one gallon or less of a beverage. 12.24 (d) "Beverage distributor" means a person who sells filled 12.25 beverage containers to retailers in this state. 12.26 (e) "Mixed wine drink" means a drink containing eight 12.27 percent or less alcohol by volume, consisting of (1) wine mixed 12.28 with nonalcoholic beverages or flavoring or coloring materials, 12.29 and which may also contain water, fruit juices, fruit adjuncts, 12.30 sugar, carbon dioxide, or preservatives; or (2) other similar 12.31 product marketed as a wine cooler. 12.32 (f) "Mixed spirit drink" means (1) a drink containing ten 12.33 percent or less alcohol by volume consisting of distilled 12.34 spirits mixed with nonalcoholic beverages or flavoring or 12.35 coloring materials and which may also contain water, fruit 12.36 juices, fruit adjuncts, sugar, carbon dioxide, or preservatives; 13.1 or (2) any spirits based beverage, regardless of the percent of 13.2 alcohol by volume, that is manufactured for sale in a 13.3 nonrefillable container. 13.4 (g) "Reusable beverage container" means a beverage 13.5 container that is designed to be and actually is reused at least 13.6 five times for its original purpose by a person who is in the 13.7 business of placing beverages in containers. 13.8 Subd. 2. [REQUIREMENTS.] (a) A retailer that sells 13.9 beverages shall make display or shelf space available for 13.10 reusable beverage containers in the following percentages of the 13.11 total amount of shelf space available for beverages: 13.12 (1) five percent by January 1, 1999; 13.13 (2) ten percent by January 1, 2001; 13.14 (3) 15 percent by January 1, 2003; and 13.15 (4) 20 percent by January 1, 2005, and thereafter. 13.16 (b) A small business retailer may apply to the commissioner 13.17 of the pollution control agency for a temporary waiver of the 13.18 requirements of this subdivision. The commissioner may grant a 13.19 temporary waiver for up to one year upon a showing by the small 13.20 business retailer of extraordinary hardship in complying with 13.21 these requirements, and a willingness on the part of the 13.22 retailer to implement such other measures as the commissioner 13.23 and the retailer agree upon to further the intent and purpose of 13.24 this section. For the purposes of this section, "small 13.25 business" has the meaning given to it in section 645.445, except 13.26 that the small business may not have more than five full-time 13.27 employees or more than $250,000 in annual gross revenues in the 13.28 preceding fiscal year. 13.29 (c) A beverage distributor that does business in this state 13.30 shall distribute beverages in reusable containers in sufficient 13.31 quantity to supply retailers' demand based on paragraph (a). 13.32 (d) For those beverages otherwise subject to sales tax, a 13.33 retailer shall post a notice on the shelf at the space reserved 13.34 for beverages in reusable containers to clearly inform customers 13.35 that beverages sold in reusable containers are not subject to 13.36 sales tax. 14.1 Subd. 3. [CLASSIFICATION OF BEVERAGES.] For the purposes 14.2 of this section, beverages are classified as: 14.3 (1) water, including soda water, carbonated water, and 14.4 mineral water; 14.5 (2) carbonated soft drinks, including all nonalcoholic 14.6 carbonated drinks, except water; 14.7 (3) all other soft drinks; 14.8 (4) milk; 14.9 (5) beer, ale, and other alcoholic malt drinks; and 14.10 (6) mixed wine and mixed spirit drinks. 14.11 Subd. 4. [MONITORING.] To determine compliance with this 14.12 section, the commissioner of the agency shall conduct statewide 14.13 site inspections of a statistically reliable percentage of 14.14 large, medium, and small retailers of each classification of 14.15 beverages between January 1 of 1999, 2001, 2003, and 2005 and 14.16 June 1 of those years. By July 1 of those years, the 14.17 commissioner shall send notification of the percentage of 14.18 beverages available for sale in reusable containers for each 14.19 classification of beverages and for all beverages as one group 14.20 to the commissioner of revenue and the director of the office of 14.21 environmental assistance. If all beverage retailers as a group 14.22 fail to achieve the requirements of subdivision 2 in two 14.23 consecutive reporting years, the commissioners of the agency and 14.24 of revenue and the director of the office shall implement 14.25 sections 116F.20 to 116F.255, effective for only those 14.26 classifications of beverages for which compliance was not 14.27 achieved in both years for beverages sold beginning one year 14.28 after the second consecutive notification of noncompliance. 14.29 Sec. 2. [116F.25] [APPLICATION; EXPIRATION.] 14.30 Sections 116F.251 to 116F.255 apply only if the 14.31 commissioner of the agency notifies the commissioner of revenue 14.32 and the director of the office of environmental assistance that 14.33 the requirements of section 116F.20 have not been met. If all 14.34 the requirements of section 116F.20 have been met as of July 1, 14.35 2005, sections 116F.25 to 116F.255 expire July 1, 2006. If at 14.36 any point sections 116F.251 to 116F.255 are implemented, those 15.1 sections remain in effect until replaced or repealed by the 15.2 legislature. 15.3 Sec. 3. [116F.251] [DEFINITIONS.] 15.4 Subdivision 1. [APPLICABILITY.] The definitions in this 15.5 section and section 116F.20 apply to sections 116F.251 to 15.6 116F.255. 15.7 Subd. 2. [COMMISSIONER.] "Commissioner" means the 15.8 commissioner of revenue. 15.9 Subd. 3. [CONSUMER.] "Consumer" means a person who buys a 15.10 filled nonreusable beverage container from a retailer. 15.11 Subd. 4. [RETAILER.] "Retailer" means a person who engages 15.12 in the sale of beverages in or from nonreusable beverage 15.13 containers to consumers. 15.14 Subd. 5. [REVERSE VENDING MACHINE.] "Reverse vending 15.15 machine" means a mechanical device that accepts one or more 15.16 types of empty beverage containers and issues a cash refund or 15.17 redeemable credit slip with a value not less than the 15.18 containers' redemption value. 15.19 Sec. 4. [116F.252] [RECYCLING DEPOSIT AND REFUND.] 15.20 Subdivision 1. [DEPOSIT.] The price of a filled 15.21 nonreusable beverage container sold or offered for off-sale at 15.22 retail stores and through vending machines must include a refund 15.23 value of ten cents for a container with a volume of less than 15.24 one quart and 30 cents for a container with a volume of one 15.25 quart or more. Containers sold aboard commercial airlines, 15.26 passenger trains, or passenger buses crossing state borders and 15.27 containers whose contents are consumed on the premises of the 15.28 retail store are exempt from the requirements of this 15.29 subdivision. 15.30 Subd. 2. [REFUND PAYMENT REQUIRED.] Each retailer shall 15.31 accept an empty nonreusable beverage container of the kind, 15.32 size, and brand sold by the retailer and shall pay the refund 15.33 value to the person returning the container. Each off-sale 15.34 retailer shall prominently display on its premises the kinds, 15.35 sizes, and brand names of nonreusable beverage containers 15.36 accepted. Each beverage distributor or its designee shall 16.1 accept from a retailer nonreusable beverage containers of the 16.2 kind, size, and brand sold by the beverage distributor and shall 16.3 pay the retailer the refund value specified in subdivision 1 16.4 plus a handling allowance of two cents per container upon 16.5 receipt. 16.6 A retailer may refuse to accept from a consumer, and a 16.7 beverage distributor or its designee may refuse to accept from a 16.8 retailer, any nonreusable beverage container that is not 16.9 properly labeled according to subdivision 3, or is broken, 16.10 unclean, or not empty. A reverse vending machine may be used to 16.11 fulfill the requirements of this subdivision. 16.12 Subd. 3. [CONTAINER; PACKAGE DESIGN.] Each filled 16.13 nonreusable beverage container sold or offered for sale in this 16.14 state by a retailer or distributor must clearly indicate by 16.15 embossing, stamp, label, or other permanent method of display, 16.16 the name or abbreviation of this state, the refund value of the 16.17 container, and the words "Return For Deposit." Each container 16.18 must also be printed, embossed, stamped, labeled, or otherwise 16.19 marked with a universal code or similar machine-readable code. 16.20 Nothing in this subdivision prohibits inclusion of the name on 16.21 the label of other states that have container deposit laws. 16.22 Sec. 5. [116F.253] [REPORTS; PAYMENT OF UNREDEEMED 16.23 DEPOSITS.] 16.24 Subdivision 1. [REPORTS.] Every beverage distributor doing 16.25 business in this state shall file with the commissioner of 16.26 revenue a quarterly and annual report, on a form prescribed by 16.27 the commissioner, specifying the total number of nonreusable 16.28 beverage containers sold to and redeemed from retailers in the 16.29 state and the amount of unredeemed deposits during the reporting 16.30 period. The unredeemed deposit amount may not be offset by the 16.31 handling allowance paid to retailers or others. 16.32 The quarterly reports are due on or before the 15th day 16.33 following the end of the calendar quarter. The annual reports 16.34 must accompany the reports for the fourth calendar quarter and 16.35 are due on or before January 15 following the end of the 16.36 calendar year. 17.1 Subd. 2. [RECORDS.] The commissioner may by rule require 17.2 any person subject to subdivision 1 to keep books, papers, 17.3 documents, and records as the commissioner determines necessary 17.4 for the enforcement of sections 116F.251 to 116F.255. The 17.5 commissioner may examine, or have examined, any books, papers, 17.6 records, or other documents relevant to making a determination, 17.7 whether they are in the possession of a reporter or another 17.8 person or corporation. The commissioner may require the 17.9 attendance of any persons having knowledge or information in the 17.10 premises, to compel the production of books, papers, records, or 17.11 memoranda by persons so required to attend, to take testimony on 17.12 matters material to a determination, and to administer oaths or 17.13 affirmations. 17.14 Subd. 3. [INFORMATION CONFIDENTIAL.] Neither the 17.15 commissioner nor any other public official or employee may 17.16 divulge or otherwise make known in any manner any particulars 17.17 disclosed in any report required by this section, or any 17.18 information concerning the affairs of the person making the 17.19 report acquired from its records, officers, or employees while 17.20 examining or auditing under the authority of sections 116F.251 17.21 to 116F.255, except in connection with a proceeding involving 17.22 unredeemed deposits due under sections 116F.251 to 116F.255. 17.23 Nothing in this section prohibits the commissioner from 17.24 publishing statistics classified in a manner that does not 17.25 disclose the identity of particular records or reports and their 17.26 contents. Notwithstanding the provisions of this subdivision, 17.27 the commissioner may provide the commissioner of the agency with 17.28 information necessary for implementation and administration of 17.29 sections 116F.251 to 116F.255. 17.30 Subd. 4. [TIME FOR PAYMENT; REFUND.] Unredeemed deposits 17.31 held during a calendar quarter must be paid to the commissioner 17.32 on or before the 15th day following the end of the quarter. The 17.33 payment due for the fourth calendar quarter must be adjusted to 17.34 reflect any underpayment or overpayment that is shown on the 17.35 annual report. Any overpayment of unredeemed recycling deposits 17.36 shown on the annual report must be refunded by the commissioner 18.1 and may not be entered as a credit against future liabilities 18.2 unless requested by the person required to pay the unredeemed 18.3 deposit. 18.4 Subd. 5. [ENFORCEMENT.] The penalty, interest, and 18.5 enforcement provisions under chapters 270, 289A, and 297A apply 18.6 to the reports and amounts due the commissioner under this 18.7 section. 18.8 Subd. 6. [COORDINATION WITH EXISTING RECYCLING 18.9 PROGRAMS.] A distributor may contract with a county or the 18.10 county's designee for collection of containers from retailers 18.11 and management of returned containers. If a distributor chooses 18.12 to contract with a county or the county's designee, the 18.13 distributor must comply with subdivision 1 and must pay the 18.14 county an amount equal to the deposits the county must return to 18.15 retailers, the two cents per container handling fee for 18.16 retailers, and the incremental cost to the county or its 18.17 designee to collect, transport, store, process, and market the 18.18 containers, but may retain the amount of the unredeemed deposits 18.19 left after payment to the county under the contract. 18.20 Subd. 7. [DEPOSIT AND USE OF REVENUE.] The commissioner 18.21 shall deposit revenue received under subdivision 4 in a special 18.22 revenue fund in the state treasury. Revenue received under 18.23 subdivision 4 must be clearly identified by source. Revenue in 18.24 the special revenue fund shall be appropriated to the 18.25 commissioner of children, families, and learning to be used for 18.26 grants to school districts in which retailers with unredeemed 18.27 deposits were located. The grants shall be in same amounts as 18.28 the unredeemed deposits collected from retailers in that 18.29 district. 18.30 Sec. 6. [116F.254] [AGENCY AND DIRECTOR AUTHORITY; DUTIES; 18.31 REPORTS.] 18.32 Subdivision 1. [PUBLIC EDUCATION.] The director of the 18.33 office of environmental assistance may prepare, publish, and 18.34 issue printed or educational materials necessary for the 18.35 dissemination of information to the public and the regulated 18.36 community for effective implementation of sections 116F.251 to 19.1 116F.255. 19.2 Subd. 2. [INFORMATION GATHERING.] The commissioner of the 19.3 agency may require any business or local government unit subject 19.4 to sections 116F.251 to 116F.255 to provide information 19.5 necessary for the preparation of any reports required by this 19.6 section. 19.7 Sec. 7. [116F.255] [PENALTIES; PROCEDURES; RULES.] 19.8 Subdivision 1. [CIVIL PENALTY.] In addition to any other 19.9 penalty imposed by law, a person who violates any provision of 19.10 section 116F.252 or 116F.253 shall forfeit and pay to the state 19.11 a penalty, in an amount to be determined by the court, of not 19.12 more than $1,000 per day of violation. The penalty may be 19.13 recovered by a civil action brought by the attorney general in 19.14 the name of the state. 19.15 Subd. 2. [INJUNCTIONS.] The attorney general may bring an 19.16 action to enjoin any violation of sections 116F.251 to 116F.255 19.17 or an action to compel performance of those sections. 19.18 Subd. 3. [ADMINISTRATIVE PENALTY.] In lieu of a civil 19.19 penalty authorized in subdivision 1, the commissioner of the 19.20 agency may impose an administrative penalty under section 19.21 116.072 on any person who violates sections 116F.251 to 116F.255. 19.22 Subd. 4. [COSTS; FEES.] In any action under subdivision 1 19.23 or 2, the attorney general may also recover costs and attorney 19.24 fees. 19.25 Subd. 5. [RULES.] The agency, director, metropolitan 19.26 council, and commissioner may adopt emergency and permanent 19.27 rules to implement sections 116F.251 to 116F.255. 19.28 Sec. 8. [116F.256] [ENFORCEMENT.] 19.29 This chapter may be enforced under section 115.071 or 19.30 116.072. 19.31 ARTICLE 4 19.32 Section 1. Minnesota Statutes 1996, section 297A.25, 19.33 subdivision 2, is amended to read: 19.34 Subd. 2. [FOOD PRODUCTS.] The gross receipts from the sale 19.35 of food products including but not limited to cereal and cereal 19.36 products, butter, cheese, milk and milk products, oleomargarine, 20.1 meat and meat products, fish and fish products, eggs and egg 20.2 products, vegetables and vegetable products, fruit and fruit 20.3 products, spices and salt, sugar and sugar products, coffee and 20.4 coffee substitutes, tea, cocoa and cocoa products, and food 20.5 products which are not taxable pursuant to section 297A.01, 20.6 subdivision 3, clause (c) are exempt. This exemption does not 20.7 include the following: 20.8 (1) candy and candy products, except when sold for 20.9 fundraising purposes by a nonprofit organization that provides 20.10 educational and social activities for young people primarily 20.11 aged 18 and under; 20.12 (2) carbonated beverages, beverages commonly referred to as 20.13 soft drinks containing less than 15 percent fruit juice, or 20.14 bottled water other than noncarbonated and noneffervescent 20.15 bottled water sold in individual containers of one-half gallon 20.16 or more in size when those beverages or water are sold in 20.17 nonrefillable containers.