HF 3200

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

A bill for an act
relating to solid waste; establishing program for beverage container recycling
refunds; providing civil and criminal penalties; requiring reports; appropriating
money; proposing coding for new law in Minnesota Statutes, chapter 115A.

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

Section 1.

new text begin [115A.566] BEVERAGE CONTAINER RECYCLING REFUNDS;
DEFINITIONS.
new text end

new text begin For purposes of sections 115A.566 to 115A.5665, the following terms have the meanings
given:
new text end

new text begin (1) "applicable refund value" means the value established under section 115A.5661,
subdivision 1;
new text end

new text begin (2) "beverage" means a drinkable liquid intended for human oral consumption. Beverage
does not include:
new text end

new text begin (i) a drug regulated under the federal Food, Drug, and Cosmetic Act, United States Code,
title 21, section 301 et seq.;
new text end

new text begin (ii) infant formula; or
new text end

new text begin (iii) a meal replacement liquid;
new text end

new text begin (3) "beverage container" means a prepackaged container for beverages, including a
carton; a pouch; an aseptic package, such as a juice box; or other container:
new text end

new text begin (i) made of any material, including glass, plastic, metal, or multimaterial;
new text end

new text begin (ii) designed to be used once before being recycled or designed to be reused for multiple
cycles before being recycled; and
new text end

new text begin (iii) with a volume of no more than one gallon;
new text end

new text begin (4) "beverage container processing mechanism" means any method, manual or
technological, that properly identifies and processes empty beverage containers that are
eligible for redemption;
new text end

new text begin (5) "beverage producer" means a person bottling, canning, or otherwise filling beverage
containers for sale to distributors, importers, or retailers;
new text end

new text begin (6) "consumer" means an individual in the state who purchases a beverage in a beverage
container for use or consumption;
new text end

new text begin (7) "distributor" means a person who sells beverages in beverage containers to a retailer
in the state, including a beverage producer who engages in sales;
new text end

new text begin (8) "distributor and importer responsibility organization" or "organization" means the
distributor and importer responsibility organization established under section 115A.5663;
new text end

new text begin (9) "drop-off facility" means a specific area where individuals may bring household
recyclable materials to place into material-specific receptacles;
new text end

new text begin (10) "importer" means a retailer or beverage producer who directly imports beverage
containers into the state;
new text end

new text begin (11) "line breakage" means a beverage container that becomes defective or damaged
during manufacturing and that is not meant for sale and not eligible for redemption;
new text end

new text begin (12) "material recovery facility" means a facility that receives, separates, and sells or
otherwise distributes postconsumer materials for recycling;
new text end

new text begin (13) "member" means a distributor or importer that joins the organization and pays the
applicable fees;
new text end

new text begin (14) "retailer" means a person in the state that sells beverages in beverage containers to
a consumer; and
new text end

new text begin (15) "store" means an individual location where a retailer sells beverage containers.
new text end

Sec. 2.

new text begin [115A.5661] BEVERAGE CONTAINER DEPOSIT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Applicable refund value. new text end

new text begin (a) Every beverage container sold or offered
for sale in the state has the following refund value:
new text end

new text begin (1) ten cents for beverage containers of 24 fluid ounces or less; and
new text end

new text begin (2) 15 cents for beverage containers of more than 24 fluid ounces.
new text end

new text begin (b) The commissioner may change the refund value:
new text end

new text begin (1) by deciding, in consultation with the distributor and importer responsibility
organization, to change one or both refund amounts in a material-neutral manner; or
new text end

new text begin (2) upon receiving a request from the organization for a change in the refund amount
and determining that a change in one or both refund amounts in a material-neutral way is
appropriate.
new text end

new text begin (c) The commissioner must not change the refund value under paragraph (b), clause (1),
more than once every ten years.
new text end

new text begin (d) The commissioner must not change the refund value under paragraph (b), clause (2),
more than once every five years.
new text end

new text begin (e) Before changing the refund value under paragraph (b), the commissioner must publish
a notice in the State Register and allow a 60-day comment period.
new text end

new text begin (f) Notwithstanding paragraph (a), if the organization's publicly reported redemption
rate required under section 115A.5663, subdivision 6, shows that the redemption rate does
not reach 85 percent for three years in a row after being required to reach an 85 percent
redemption target under section 115A.5663, subdivision 5, then every beverage container
sold or offered for sale in the state has the following refund value:
new text end

new text begin (1) 15 cents for beverage containers of 24 fluid ounces or less; and
new text end

new text begin (2) 20 cents for beverage containers of more than 24 fluid ounces.
new text end

new text begin (g) The organization must use any refunds not claimed by the consumer for the
organization's administrative costs and duties under sections 115A.566 to 115A.5665.
new text end

new text begin Subd. 2. new text end

new text begin Disposition of redeemed containers. new text end

new text begin When a consumer redeems a beverage
container for the applicable refund value, the organization becomes the owner of the beverage
container and may:
new text end

new text begin (1) sell it to the buyer of the organization's choosing; or
new text end

new text begin (2) on its own or via a third party, process the reusable beverage container for refill.
new text end

new text begin Subd. 3. new text end

new text begin Retailer duties; methods of redeeming. new text end

new text begin (a) A retailer has no duties under
paragraphs (b) to (d) until the organization requests permission to install, maintain, and
service a beverage container processing mechanism inside or outside a store of the retailer.
new text end

new text begin (b) For a store that is equal to or greater than 5,000 square feet, the retailer that operates
the store must:
new text end

new text begin (1) if the store has 30 or more parking spots for its customers, permit the organization
to:
new text end

new text begin (i) collect bags of redeemable beverage containers in a space of the retailer's choosing
in the store's parking lot; and
new text end

new text begin (ii) install, maintain, and service at least one other beverage container processing
mechanism inside or outside the store on property the retailer owns or leases;
new text end

new text begin (2) if the store has fewer than 30 parking spots for its customers, permit the organization
to install, service, and operate at least two beverage container processing mechanisms inside
or outside the store on property the retailer owns or leases; or
new text end

new text begin (3) accept beverage containers at the store and pay the applicable refund value for up to
250 beverage containers per person per day if the retailer does not, within 90 days of
receiving a written request from the organization, notify the organization that the retailer
will comply with clause (1) or (2) on property the retailer owns or leases.
new text end

new text begin (c) For a store that is more than 1,000 square feet and less than 5,000 square feet, the
retailer that operates the store must:
new text end

new text begin (1) if the store has 30 or more parking spots for its customers, permit the organization
to:
new text end

new text begin (i) collect bags of redeemable beverage containers in a space of the retailer's choosing
in the parking lot for the store; and
new text end

new text begin (ii) install, maintain, and service at least one other beverage container processing
mechanism inside or outside the store on property the retailer owns or leases; or
new text end

new text begin (2) if the store has fewer than 30 parking spots for its customers, permit the organization
to install, service, and operate at least one beverage container processing mechanism inside
or outside the store on property the retailer owns or leases; or
new text end

new text begin (3) accept beverage containers at the store and pay the applicable refund value for up to
50 beverage containers per person per day if the retailer does not, within 90 days of receiving
a written request from the organization, notify the organization that the retailer will comply
with clause (1) or (2) on property the retailer owns or leases.
new text end

new text begin (d) For a store that is 1,000 square feet or less and in which more than 1,000,000 beverage
containers per year are sold, the retailer that operates the store must:
new text end

new text begin (1) if the store has 30 or more parking spots for its customers, permit the organization
to collect bags of redeemable beverage containers in a space of the retailer's choosing in
the parking lot for the store;
new text end

new text begin (2) if the store has fewer than 30 parking spots for its customers, permit the organization
to install, service, and operate at least one beverage container processing mechanism inside
or outside the store on property the retailer owns or leases; or
new text end

new text begin (3) accept beverage containers at the store and pay the applicable refund value for up to
25 beverage containers per person per day if the retailer does not, within 90 days of receiving
a written request from the organization, notify the organization that the retailer will comply
with clause (1) or (2) on property the retailer owns or leases.
new text end

new text begin (e) A retailer must comply with paragraph (f) at a store that is 1,000 square feet or less
and in which fewer than 1,000,000 beverage containers per year are sold.
new text end

new text begin (f) Notwithstanding paragraphs (b) to (d), a retailer, upon request by the organization
regarding a particular store of the retailer, must:
new text end

new text begin (1) offer for sale at that particular store of the retailer the standard bags that the
organization deems necessary to operate a bag-drop program;
new text end

new text begin (2) permit the organization to install, service, and operate at least one beverage container
processing mechanism in a space of the retailer's choosing inside or outside of that particular
store of the retailer; and
new text end

new text begin (3) permit the organization to install, service, and operate in a space of the retailer's
choosing inside or outside that particular store of the retailer a self-service kiosk that allows
for printing redemption vouchers.
new text end

new text begin (g) A retailer is exempt from this subdivision at a store the retailer operates that:
new text end

new text begin (1) primarily prepares food for sale; or
new text end

new text begin (2) sells beverage containers to consumers only through stand-alone vending machines
or similar means.
new text end

new text begin (h) Notwithstanding paragraphs (b) to (g), for zip codes in the state with a population
density greater than 30,000 residents per square mile, the organization must install, service,
and operate enough beverage container processing mechanisms to ensure that there is one
beverage container processing mechanism for every 500 residents.
new text end

new text begin (i) Any facilities that the organization establishes in the state to aggregate, sort, and
process the material collected at redemption locations:
new text end

new text begin (1) must accept, according to a reasonable process the organization may establish,
beverage containers that are eligible for redemption and that are submitted in the standard
bag from entities established and operated as described in section 501(c)(3) of the Internal
Revenue Code or established and operated as a nonprofit organization under the tax law of
any district, state, or territory; and
new text end

new text begin (2) may provide entities under clause (1) a premium as determined by the organization.
new text end

new text begin (j) The methods of redemption required under this section must be available to the public
for not less than ten hours each day except for a federal or local holiday. This paragraph
does not apply to facilities the organization established to aggregate, sort, and process
material.
new text end

new text begin (k) The organization must provide information according to clauses (1) to (3) on how
consumers can alert the organization to problems at beverage container processing
mechanisms the organization operates:
new text end

new text begin (1) on the organization's website;
new text end

new text begin (2) on clearly visible signs, measuring at least five feet by five feet, at the bag-drop
redemption locations described in this section; and
new text end

new text begin (3) on clearly visible signs, measuring at least two feet by two feet, on or within five
feet of beverage container processing mechanisms that are not bag-drop redemption locations.
new text end

new text begin (l) The organization may create reasonable terms and conditions for using the bag-drop
program and beverage container processing mechanisms that the organization operates for
consumers to redeem beverage containers.
new text end

new text begin Subd. 4. new text end

new text begin Nonredeemable material. new text end

new text begin The organization is not required to pay refunds on:
new text end

new text begin (1) a beverage container visibly containing or contaminated by a substance other than
water, residue of the original contents, or ordinary dust;
new text end

new text begin (2) a beverage container that is:
new text end

new text begin (i) crushed or broken; or
new text end

new text begin (ii) damaged to the extent that the brand appearing on the container cannot be identified;
new text end

new text begin (3) a beverage container that the organization has reasonable grounds to believe was
bought in another state; or
new text end

new text begin (4) a beverage container for which the organization has reasonable grounds to believe
a refund has already been given.
new text end

new text begin Subd. 5. new text end

new text begin Labeling. new text end

new text begin (a) A beverage producer, importer, or distributor of a beverage
container that is sold in the state must clearly display on the top or side of the beverage
container the abbreviation "RV," which indicates the container has a refund value.
new text end

new text begin (b) The organization may require that any beverage producer, importer, or distributor
of a beverage container that is sold in the state clearly display on the top or side of the
beverage container the abbreviation of the state and the applicable refund value.
new text end

new text begin (c) A beverage producer, importer, or distributor of a beverage container that is sold in
the state may include a barcode or unique code verification on the beverage container to
allow for automated identification.
new text end

new text begin Subd. 6. new text end

new text begin Timing. new text end

new text begin (a) All beverage containers that are made of 90 percent or more
aluminum, glass, high density polyethylene plastic, or polyethylene terephthalate and sold
in the state must have the applicable refund value no later than two years after the effective
date of this section. All other beverage containers that are sold in the state must have the
applicable refund value no later than three years after the effective date of this section.
new text end

new text begin (b) The commissioner may extend the deadlines under paragraph (a) for up to an
additional 365 days.
new text end

new text begin Subd. 7. new text end

new text begin Drop-off facilities and material recovery facilities; reporting data. new text end

new text begin (a) The
operator of a material recovery facility or drop-off facility operating in the state, or outside
the state where the majority of the material the facility processes originates in Minnesota,
may annually submit the following information to the organization:
new text end

new text begin (1) the number of tons of residential recyclable material the facility received for
processing in the previous calendar year; and
new text end

new text begin (2) an estimate of the number of tons under clause (1) that were received from households
in this state.
new text end

new text begin (b) The optional data under paragraph (a) must be submitted by April 1 for data from
the previous full calendar year.
new text end

new text begin Subd. 8. new text end

new text begin Prohibitions. new text end

new text begin (a) It is unlawful to distribute or sell beverage containers in the
state or import beverage containers in or into the state except in compliance with this section.
new text end

new text begin (b) It is unlawful to redeem a beverage container in the state that was not sold to a
consumer in the state.
new text end

new text begin Subd. 9. new text end

new text begin Commissioner's report. new text end

new text begin By April 1 each odd-numbered year, the commissioner
must estimate and report to the organization the cost to administer and enforce sections
115A.566 to 115A.5665 for the following two fiscal years after:
new text end

new text begin (1) subtracting the amount that the commissioner collected from penalties assessed under
section 115A.5665 and that will be used to administer and enforce sections 115A.566 to
115A.5665 in the next two fiscal years; and
new text end

new text begin (2) adding any costs to administer and enforce sections 115A.566 to 115A.5665 that
were not covered by the estimated annual cost from the previous two fiscal years.
new text end

Sec. 3.

new text begin [115A.5663] DISTRIBUTOR AND IMPORTER RESPONSIBILITY
ORGANIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Formation. new text end

new text begin The distributor and importer responsibility organization must
be established and operated as a nonprofit or cooperative corporation. Only one producer
responsibility organization is permitted to operate in the state. The organization may decide
to operate jointly with organizations in one or more other states.
new text end

new text begin Subd. 2. new text end

new text begin Members; penalty; fees. new text end

new text begin (a) All distributors and importers of a beverage in or
into the state must join the organization as members. A distributor or importer that operates
in violation of this subdivision is subject to penalties under section 115A.5665.
new text end

new text begin (b) The organization must charge a fee to members. The fee must be established in an
amount that, together with unclaimed refunds and any other revenue sources that the
organization may develop and that are not refunded under paragraph (d), covers the
organization's cost of operations.
new text end

new text begin (c) The organization must charge member fees that vary by material type reflecting:
new text end

new text begin (1) the cost of collecting, sorting, and processing each beverage container type; and
new text end

new text begin (2) the number of units of each beverage container type that the member distributes or
sells in the state.
new text end

new text begin (d) The organization must:
new text end

new text begin (1) refund to members the revenue generated from selling the scrap of each beverage
container type based on the percentage of each beverage container type that a member
distributes or sells in the state; or
new text end

new text begin (2) if refunds under clause (1) are not legally permitted, credit each member against the
fee charged under paragraph (c) the amount of the applicable refund under clause (1).
new text end

new text begin Subd. 3. new text end

new text begin Duties; authorities. new text end

new text begin (a) The organization must publish on its website:
new text end

new text begin (1) within 18 months after the effective date of this section, an initial plan for how the
organization will, over the next five years, meet the requirements of sections 115A.566 to
115A.5665, including the performance targets under subdivision 5;
new text end

new text begin (2) an updated plan, at least every five years after the initial plan is published, for how
the organization will continue to meet the requirements of sections 115A.566 to 115A.5665,
including the performance targets under subdivision 5; and
new text end

new text begin (3) a list and map of all redemption locations and what redemption options are available
at each location.
new text end

new text begin (b) The organization must pay for:
new text end

new text begin (1) any beverage container processing mechanism or self-service kiosk that the
organization installs, services, and operates:
new text end

new text begin (i) with a retailer's permission under section 115A.5661, subdivision 3, or at any other
location;
new text end

new text begin (ii) to meet or exceed a performance target under subdivision 5; or
new text end

new text begin (iii) to meet or exceed the per capita requirement under section 115A.5661, subdivision
3, paragraph (g);
new text end

new text begin (2) any facilities in the state necessary to efficiently aggregate, sort, and process the
material collected at redemption locations;
new text end

new text begin (3) a credit to consumers for the cost of the bags that are processed at the organization's
bag-drop locations; and
new text end

new text begin (4) by July 1 of each calendar year, starting the first full year and ending the fifth full
year after one or more beverage container types is sold with the applicable refund value, an
annual payment directly to each material recovery facility and drop-off facility operator
that submits data according to section 115A.5661, subdivision 7, that:
new text end

new text begin (i) equals a pro rata portion of ten percent of the scrap value of the material the
organization sold in the preceding calendar year; and
new text end

new text begin (ii) is based on the data submitted by the material recovery facility and drop-off facility
operators under section 115A.5661, subdivision 7.
new text end

new text begin (c) The organization may use money generated under this section and section 115A.5661
or other sources of revenue to:
new text end

new text begin (1) give grants for litter cleanup and for education and outreach on recycling beverage
containers;
new text end

new text begin (2) directly or in partnership with a nongovernmental organization provide services to
or enhance the redemption experience of diverse or low-income consumers redeeming
beverage containers; and
new text end

new text begin (3) pay advisory committee members under subdivision 7 or pay for the administration
and activities of the advisory committee.
new text end

new text begin (d) To the extent allowed under law, the organization may refund money to organization
members in a fiscal year in which the organization's revenues exceed the organization's
costs under this section by more than ten percent. Money refunded to members must not
cause revenue to go below 110 percent of the organization's costs.
new text end

new text begin (e) The organization must use refunds not claimed by the consumer to support the
organization's administrative costs and to perform the duties required under this section.
new text end

new text begin Subd. 4. new text end

new text begin Bag requirements. new text end

new text begin If the standard bags sold at retailers for the bag-drop program
are made of plastic film, the organization must:
new text end

new text begin (1) ensure that the bags have a minimum of 50 percent recycled content; and
new text end

new text begin (2) demonstrate, upon request of the commissioner, that the waste film from the bags is
being recycled in the best commercially available manner.
new text end

new text begin Subd. 5. new text end

new text begin Performance targets. new text end

new text begin (a) The organization must meet the following performance
targets:
new text end

new text begin (1) beginning two years after all beverage containers are sold in the state with the
applicable refund value, at least 70 percent annual redemption for all beverage containers;
new text end

new text begin (2) beginning four years after all beverage containers are sold in the state with the
applicable refund value, at least 75 percent annual redemption for all beverage containers;
new text end

new text begin (3) beginning six years after all beverage containers are sold in the state with the
applicable refund value, at least 85 percent annual redemption for all beverage containers;
and
new text end

new text begin (4) beginning eight years after all beverage containers are sold in the state with the
applicable refund value, at least 90 percent annually of all beverage containers are redeemed
under sections 115A.566 to 115A.5665 or recycled through a curbside recycling program.
new text end

new text begin (b) If the organization does not meet an applicable performance target under paragraph
(a), the organization must submit a product stewardship plan to the commissioner. The plan
must be submitted to the commissioner no more than 365 days after publication of the data
required under subdivision 6 shows that the applicable performance target in paragraph (a)
was not met. The plan must detail the actions the organization will take to meet the
performance targets.
new text end

new text begin (c) If the applicable performance targets under paragraph (a) have not been met in each
of the three years after the organization submitted a product stewardship plan under paragraph
(b), then the commissioner may:
new text end

new text begin (1) fine the organization once per calendar year in an amount equal to the difference
between the amount of redeemed beverage containers and the amount of beverage containers
that should have been redeemed under the applicable performance target, multiplied by up
to ten cents per beverage container; and
new text end

new text begin (2) require the organization to submit a revised product stewardship plan.
new text end

new text begin (d) If the performance targets under paragraph (a) have not been met in each of the five
years after the organization submitted a product stewardship plan under paragraph (b), then:
new text end

new text begin (1) if the organization's director has held office for more than 365 days, the organization
must explain on its website why a new director is not necessary; and
new text end

new text begin (2) the commissioner may fine the organization once per calendar year in an amount
equal to the difference between the amount of redeemed beverage containers and the amount
of beverage containers that should have been redeemed under the applicable performance
target, multiplied by up to 15 cents per beverage container.
new text end

new text begin (e) If the performance targets under paragraph (a) have not been met in each of the seven
years after the organization submitted a product stewardship plan under paragraph (b), then
the commissioner may assume the organization's operations and charge the member fees
according to subdivision 2 until the performance targets are met. The commissioner must
then transfer leadership of the organization back to the organization's governing board within
180 days after achieving the performance targets.
new text end

new text begin (f) If the performance targets are not met for at least two years in a row within five years
after the commissioner assumes operations under paragraph (e), the commissioner must
allow the members of the organization to choose a new organization director, in which case
paragraphs (b) to (e) apply anew beginning three years after the new director is chosen.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin (a) By July 1 beginning the first full year after one or more beverage
container types have a refund value, the organization must make the information in clauses
(1) to (21) for the preceding calendar year publicly available on the organization's website:
new text end

new text begin (1) the number of beverage containers sold in the state by material type and the portion
of the total sold that was refillable or reusable for each quarter of the report year and for
the quarters of each of at least the last five prior years, to the extent the data is available
under sections 115A.566 to 115A.5665;
new text end

new text begin (2) the percent of the total amount of beverage containers sold in the state that each
material type represents for each quarter of the report year and for the quarters of each of
at least the last five prior years, to the extent the data is available under sections 115A.566
to 115A.5665;
new text end

new text begin (3) the percent of the total amount of fees charged to the members that each material
type represents for each quarter of the report year and for the quarters of each of at least the
last five prior years, to the extent the data is available under sections 115A.566 to 115A.5665;
new text end

new text begin (4) the number of beverage containers redeemed by material type for each quarter of
the report year and for the quarters of each of at least the last five prior years, to the extent
the data is available under sections 115A.566 to 115A.5665;
new text end

new text begin (5) the number of beverage containers redeemed at each bag-drop location, reverse
vending machine, or other beverage container processing mechanism that the organization
operates;
new text end

new text begin (6) the buyers to which the organization sold beverage containers, including what material
type each buyer bought from the organization;
new text end

new text begin (7) the percent of the total amount sold of each material type that went to each buyer;
new text end

new text begin (8) all redemption locations in the state;
new text end

new text begin (9) the methods of redemption at each location in the state;
new text end

new text begin (10) the organization's total annual expenses;
new text end

new text begin (11) the organization's total annual revenue;
new text end

new text begin (12) the organization's total reserves;
new text end

new text begin (13) the total cost to the organization for each beverage container returned;
new text end

new text begin (14) the number of redemption locations that provide services or an enhanced redemption
experience for diverse or low-income consumers;
new text end

new text begin (15) aggregated employee demographic information that includes at a minimum the race
or ethnicity and gender identity of employees working on-site at redemption locations or
at facilities the organization establishes to aggregate, sort, and process the material collected
at redemption locations and of other organization employees;
new text end

new text begin (16) the number of consumer complaints per month by redemption location for the report
year and for at least the last five prior years, to the extent the data is available under sections
115A.566 to 115A.5665;
new text end

new text begin (17) the total number of individual consumers per month that filed complaints by
redemption location for the report year and for at least the last five prior years;
new text end

new text begin (18) a list of all organization members and each member's beverage brands and a
breakdown of each member's beverage packaging mix by beverage container type for the
report year and for at least the last five prior years, to the extent the data is available under
sections 115A.566 to 115A.5665;
new text end

new text begin (19) a list of the buyers of waste film from the standard bag sold to consumers for the
bag-drop program and a description of the products that are produced from the waste film;
new text end

new text begin (20) the number of individuals and organizations with a registered account to receive
electronic deposits of refunds; and
new text end

new text begin (21) the names of the governing board members of the organization.
new text end

new text begin (b) The organization may rely on member reporting when compiling information to be
reported under paragraph (a), but must note in the annual report which data in paragraph
(a) are based on member reporting.
new text end

new text begin (c) Once per calendar year, the commissioner may require the organization to have an
independent third party verify the data disclosed under paragraph (a). The scope of the
review is limited to the data that the organization is required to report under paragraph (a),
and the commissioner must specify the data to be reviewed. The commissioner must notify
the organization no later than August 1 that an independent third-party review is required,
and the organization must complete the independent third-party review by December 31 of
the year notified. The organization must pay for the cost of the third-party review.
new text end

new text begin (d) The organization must establish safeguards to ensure its members do not have access
to information regarding:
new text end

new text begin (1) the price paid by any individual buyer for the material sold; or
new text end

new text begin (2) how much of each material went to each individual recycler.
new text end

new text begin (e) By February 28 each year, each organization member must report to the organization
all data necessary to satisfy the disclosure requirements under paragraph (a). The organization
must establish a process for the data to be confidentially submitted.
new text end

new text begin Subd. 7. new text end

new text begin Advisory committees. new text end

new text begin (a) The organization must establish an operations
advisory committee that represents a range of stakeholders. The committee must include,
at a minimum, a representative of:
new text end

new text begin (1) beverage container manufacturers or manufacturer trade associations;
new text end

new text begin (2) beverage producers or producer trade associations;
new text end

new text begin (3) local governments;
new text end

new text begin (4) state government;
new text end

new text begin (5) environmental nonprofit organizations;
new text end

new text begin (6) entities that buy or recycle beverage containers from the organization; and
new text end

new text begin (7) retailers or retailer trade associations.
new text end

new text begin (b) The operations advisory committee may:
new text end

new text begin (1) provide written or oral comments directly to the organization's president and board
of directors no more than four times each year; and
new text end

new text begin (2) submit to the organization every even-numbered year a written report, which the
organization must publish on its website if the committee requests it, containing the
committee's feedback on:
new text end

new text begin (i) the organization's operation; and
new text end

new text begin (ii) the deposit return system generally.
new text end

new text begin (c) The organization must establish an equity and access advisory committee that helps
to ensure that the organization's operations appropriately consider the diverse needs and
cultures of individuals who redeem beverage containers. The committee must include, at a
minimum:
new text end

new text begin (1) a homeless advocate;
new text end

new text begin (2) a representative of a government social services office;
new text end

new text begin (3) a representative of a nongovernmental organization that advocates on behalf of one
or more cultural groups; and
new text end

new text begin (4) a specialist in diversity and inclusion.
new text end

new text begin (d) The equity and access committee may:
new text end

new text begin (1) provide written or oral comments directly to the organization's president and board
of directors no more than four times each year; and
new text end

new text begin (2) submit to the organization every odd-numbered year a written report, which the
organization must publish on its website if the committee requests it, containing:
new text end

new text begin (i) the committee's feedback on whether organization operations are appropriately
considering the diverse needs and cultures of individuals who redeem beverage containers;
and
new text end

new text begin (ii) recommendations on how the organization can improve in terms of equity and access.
new text end

new text begin Subd. 8. new text end

new text begin Reimbursement. new text end

new text begin By June 30 each odd-numbered year, the organization must
transfer to the commissioner an amount, not to exceed $500,000 for each of the next two
fiscal years, to be deposited in the state treasury and credited to the special revenue fund to
pay for the estimated program cost reported under section 115A.5661, subdivision 8. The
money is appropriated to the commissioner for the specified purposes.
new text end

Sec. 4.

new text begin [115A.5665] ENFORCEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Civil penalty. new text end

new text begin In addition to any other applicable civil or criminal
penalties, the commissioner may impose a civil penalty for violating sections 115A.566 to
115A.5663 of $100 per day for each initial separate violation and not more than $1,000 per
day for each subsequent separate violation.
new text end

new text begin Subd. 2. new text end

new text begin Criminal penalty. new text end

new text begin (a) A person who, with intent to defraud, knowingly takes
any of the following actions is guilty of a crime:
new text end

new text begin (1) redeems out-of-state containers, rejected containers, line breakage, or containers that
have already been redeemed;
new text end

new text begin (2) returns redeemed containers to a redemption location seeking a refund;
new text end

new text begin (3) brings out-of-state containers, rejected containers, or line breakage to the state for
redemption; or
new text end

new text begin (4) sells beverage containers not distributed in or imported into the state by a member
of the organization.
new text end

new text begin (b) If the money obtained from a criminal act under paragraph (a):
new text end

new text begin (1) is less than or equal to $950, the person convicted is subject to imprisonment in a
county jail for not more than six months, a fine not exceeding $1,000, or both imprisonment
and a fine; or
new text end

new text begin (2) exceeds $950, the person convicted is subject to imprisonment in a county jail for
not more than one year, a fine not exceeding $10,000, or both imprisonment and a fine.
new text end

new text begin Subd. 3. new text end

new text begin Injunction. new text end

new text begin The commissioner may bring a civil action to enjoin the distribution,
importation, or sale into the state of a beverage sold in a beverage container in violation of
section 115A.5661.
new text end

new text begin Subd. 4. new text end

new text begin Organization fines. new text end

new text begin The commissioner may fine the organization up to $30,000
annually for each redemption location that receives complaints from more than an average
of 100 individuals per month in a calendar year according to the public reporting required
in section 115A.5663, subdivision 6.
new text end

new text begin Subd. 5. new text end

new text begin Distributor and importer fines. new text end

new text begin The commissioner may administratively
impose a civil penalty once each year on a distributor or importer who fails to participate
in the organization as required under section 115A.5663, subdivision 2. The commissioner
must first notify the distributor or importer of the noncompliance and allow 60 days for the
distributor or importer to comply before imposing the penalty. The penalty must be the
greater of ten cents per beverage container sold by the distributor or importer in the state
or $10,000. A distributor or importer that incurs a penalty under this subdivision may appeal
the penalty as a contested case under chapter 14.
new text end

new text begin Subd. 6. new text end

new text begin Disposition of proceeds. new text end

new text begin All monetary penalties that the commissioner recovers
under this section must be deposited in the state treasury and credited to the special revenue
fund. The money is appropriated to the commissioner to be used only in the fiscal year
following the fiscal year the money is received as follows:
new text end

new text begin (1) up to $5,000,000 available each fiscal year must be used only to administer sections
115A.566 to 115A.5665; and
new text end

new text begin (2) any available amount in excess of $5,000,000 each fiscal year may be used:
new text end

new text begin (i) for the purposes described in clause (1);
new text end

new text begin (ii) to conduct outreach and educational activities focused on the beverage container
recycling refund system;
new text end

new text begin (iii) to clean up litter in the state; or
new text end

new text begin (iv) to support collection of recyclable material in public spaces.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective July 1, 2024.
new text end