HF 4721

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2024 02:43pm

A bill for an act
relating to solid waste; establishing stewardship program for batteries; authorizing
rulemaking; appropriating money; amending Minnesota Statutes 2022, sections
115A.1310, subdivision 12c; 325E.125, subdivision 2; proposing coding for new
law in Minnesota Statutes, chapter 115A; repealing Minnesota Statutes 2022,
sections 115A.9155; 115A.9157, subdivisions 1, 2, 3, 5, 6, 7, 8, 9; 325E.125,
subdivisions 3, 4, 5.

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

Section 1.

Minnesota Statutes 2022, section 115A.1310, subdivision 12c, is amended to
read:

Subd. 12c.

Portable battery.

"Portable battery" means a rechargeable battery as defined
in section deleted text begin 115A.9157 deleted text end new text begin 115A.9165 new text end .

Sec. 2.

new text begin [115A.9165] STEWARDSHIP PROGRAM FOR BATTERIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the terms in this subdivision have
the meanings given.
new text end

new text begin (b) "Battery" means a device that contains one or more voltaic or galvanic cells
electrically connected to produce electric energy, together with any structural members,
casing surrounding the cells, and electrical connectors.
new text end

new text begin (c) "Brand" means a trademark, including both a registered and an unregistered trademark;
a logo; a name; a symbol; a word; an identifier; or a traceable mark that identifies a covered
battery or covered product and identifies the owner or licensee of the brand as the producer
of the battery or product.
new text end

new text begin (d) "Chemical of high concern" has the meaning given in section 116.9401.
new text end

new text begin (e) "Collection site" means a physical location where a collector collects covered batteries
or covered products from members of the public and businesses. Collection site includes a
location regardless of whether it is operated permanently, temporarily, or for purposes of a
collection event.
new text end

new text begin (f) "Collector" means a person that collects covered batteries or covered products on
behalf of an operator.
new text end

new text begin (g) "Covered battery":
new text end

new text begin (1) means:
new text end

new text begin (i) a primary lithium battery of any size or energy content;
new text end

new text begin (ii) a rechargeable battery of any size or energy content; or
new text end

new text begin (iii) a primary battery designated by rule adopted under subdivision 14; and
new text end

new text begin (2) does not include:
new text end

new text begin (i) a rechargeable battery intended to provide motive power to a motor vehicle, as defined
in section 168.27;
new text end

new text begin (ii) a battery used for a medical device meeting the definition of a device under United
States Code, title 21, section 321, except for such a device marketed for use in a household,
as defined in section 115A.96; or
new text end

new text begin (iii) a battery in which the electrolyte is intended to be a free liquid.
new text end

new text begin (h) "Covered product" means a product with which a covered battery is packaged or in
which a covered battery is contained. Covered product includes both a product with a covered
battery that is intended for removal or replacement by the end user and a product with a
battery not intended for removal or replacement by the end user.
new text end

new text begin (i) "Critical material" means a nonfuel mineral, element, substance, or material determined
to be a critical material by the United States Department of Energy under United States
Code, title 30, section 1606.
new text end

new text begin (j) "Critical mineral" means a nonfuel mineral or mineral material designated by the
United States Department of the Interior under United States Code, title 30, section 1606.
new text end

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

new text begin (1) retained by an operator;
new text end

new text begin (2) not otherwise employed by or affiliated with the operator; and
new text end

new text begin (3) qualified to conduct the audit under subdivision 12, paragraph (b), clause (4).
new text end

new text begin (l) "Operator" means a producer or stewardship organization that implements and
administers a stewardship program.
new text end

new text begin (m) "Participant" means a producer that meets obligations under subdivisions 4 to 12
by acting as an operator or by contracting with a stewardship organization that meets the
producer's obligations on the producer's behalf.
new text end

new text begin (n) "Primary battery" means a battery that is not designed or intended to be recharged.
new text end

new text begin (o) "Primary lithium battery" means a primary battery that uses lithium metal or lithium
alloys as the anode.
new text end

new text begin (p) "Producer" means, with respect to a covered battery or covered product that is sold,
including online sales; offered for sale or promotional purposes; or distributed in the state:
new text end

new text begin (1) a person that manufactured the covered battery or covered product and sells, including
online sales; offers for sale; or distributes the covered battery or covered product under a
brand that the person owns or controls;
new text end

new text begin (2) if there is no person to which clause (1) applies, any other person that owns or controls
or is licensed to use a brand under which the covered battery or covered product is sold,
including online sales; offered for sale; or distributed in the state; or
new text end

new text begin (3) if there is no person in the United States to which clause (1) or (2) applies, any person
who imported or imports the covered battery or covered product into the United States to
sell, including online sales; offer for sale; or distribute.
new text end

new text begin (q) "Rechargeable battery" means a battery that is designed and intended to be recharged
and reused.
new text end

new text begin (r) "Stewardship organization" means a nonprofit organization as described in section
501(c)(3) of the Internal Revenue Code that is appointed by one or more producers to draft,
submit a plan for, implement, and administer a stewardship program under this section on
the producers' behalf.
new text end

new text begin (s) "Stewardship plan" means a plan meeting the requirements of subdivision 4 that is
submitted to the commissioner by an operator.
new text end

new text begin (t) "Stewardship program" means a system implemented by an operator that provides
and pays for collecting, sorting, transporting, processing, and recycling covered batteries
and covered products and disposing of residual materials under a stewardship plan approved
by the commissioner under subdivision 10.
new text end

new text begin Subd. 2. new text end

new text begin Requirements; disposal, recycling, and collection. new text end

new text begin (a) A person may not
place a covered battery or a covered product from which all covered batteries have not been
removed into:
new text end

new text begin (1) solid waste; or
new text end

new text begin (2) a recycling container that a collector does not intend to use for collecting covered
batteries or covered products.
new text end

new text begin (b) A covered battery or a covered product from which all covered batteries have not
been removed and that is discarded must be managed by delivering the covered battery or
covered product to a recycling facility for covered batteries or covered products or to a
collection site.
new text end

new text begin (c) Until recycled, covered batteries and covered products that have been delivered to
a recycling facility or collected for subsequent delivery to a recycling facility must be
managed according to rules adopted under section 116.07 for managing hazardous waste.
This paragraph does not exempt covered batteries and covered products that would be
subject to those rules before collection or delivery to a recycling facility from any applicable
requirements under the rules.
new text end

new text begin (d) A collector must ensure that covered batteries and covered products are collected
only in appropriate containers that are:
new text end

new text begin (1) designed, constructed, and used in a manner to suppress battery fires in the container
or to prevent ignition of materials outside the container; and
new text end

new text begin (2) held in structures compliant with the local fire code.
new text end

new text begin Subd. 3. new text end

new text begin Requirements; labeling and sale. new text end

new text begin (a) A person may not sell, including online
sales; offer for sale or promotional purposes; or distribute in the state a covered battery or
covered product unless the covered battery or covered product is labeled to identify the
chemistry employed to store energy in the battery. Labeling under this paragraph must be
permanently marked on or affixed to the covered battery or covered product and must use
language or graphics sufficient to facilitate awareness by members of the public of the
chemistry employed. The commissioner may, by rule adopted under subdivision 14, specify
the manner of labeling if the commissioner determines, based on observations of or reports
to the agency, that labeling applied by producers is insufficient to facilitate awareness. This
paragraph is effective January 1, 2026.
new text end

new text begin (b) A person may not sell, including online sales; offer for sale or promotional purposes;
or distribute in the state a covered battery or covered product unless the producer of the
covered battery or covered product is named as a participant in a stewardship plan published
under subdivision 10, paragraph (f), or the brand is named as covered in a stewardship plan
published under subdivision 10, paragraph (f), and the stewardship plan has not been
terminated under subdivision 11. This paragraph is effective January 1, 2026.
new text end

new text begin (c) Paragraph (b) and subdivisions 4 to 13 do not apply to a covered battery or covered
product for which the producer or the person selling, offering for sale or promotional
purposes, or distributing the covered battery or covered product demonstrates to the
commissioner that collecting, sorting, transporting, processing, and recycling the covered
battery or covered product and disposing of residual materials is already fully provided and
paid for by the producer under other state law.
new text end

new text begin (d) This subdivision does not apply to isolated and occasional sales of a covered battery
or covered product by persons not made in the normal course of business, as exempted from
sales tax under section 297A.67, subdivision 23.
new text end

new text begin (e) This subdivision and subdivisions 4 to 13 do not apply to sales, offers for sale, or
distribution of a used covered battery or used covered product.
new text end

new text begin Subd. 4. new text end

new text begin Stewardship plans; submission and required content. new text end

new text begin (a) By January 1,
2026, each producer, individually or through a stewardship organization that has agreed to
act on the producer's behalf, must submit a stewardship plan or ensure a stewardship plan
has been submitted to the commissioner for review, approval, or rejection.
new text end

new text begin (b) A submitted stewardship plan must be accompanied by payment of the review fee
as provided in subdivision 13.
new text end

new text begin (c) A stewardship plan must include:
new text end

new text begin (1) identification of and contact information for the operator of the stewardship plan;
new text end

new text begin (2) identification of and contact information for all participants in the stewardship
program;
new text end

new text begin (3) identification of and contact information for each collector, person transporting
covered batteries or covered products, and facility to be used by the operator under the
stewardship program for storage, processing, recycling, and disposal;
new text end

new text begin (4) the address; county of location; and, in a form prescribed by the commissioner,
geolocation data for each collection site to be used by the operator under the stewardship
program;
new text end

new text begin (5) a list of the brands covered under the stewardship program;
new text end

new text begin (6) eligibility criteria for prospective collectors of covered batteries and covered products
under the stewardship program according to subdivision 8, paragraph (b);
new text end

new text begin (7) a description of how the stewardship program will accept and provide coverage under
the stewardship program to any household hazardous waste collection program established
under section 115A.96 if the operator of the household hazardous waste collection program
requests coverage;
new text end

new text begin (8) a description of how the stewardship program will provide convenient, statewide
collection according to subdivision 5;
new text end

new text begin (9) a description of how the operator will annually monitor and ensure compliance with
the convenience standards under subdivision 5;
new text end

new text begin (10) a description of how the operator will provide each collection site served by the
stewardship program with the materials specified in subdivision 6, including specifications
for appropriate containers, signage templates, and a copy of all training and educational
materials to be provided;
new text end

new text begin (11) a description of how the stewardship program will be accessible according to
subdivision 7;
new text end

new text begin (12) the selection criteria for persons managing covered batteries and covered products,
and the oversight methods by which the operator will ensure compliance with subdivision
8;
new text end

new text begin (13) a description of methods by which the operator will ensure that covered batteries
and covered products managed under the stewardship program are accumulated and stored
in compliance with rules adopted under section 116.07 for managing hazardous waste by
each collector and each storage, processing, and recycling facility to be directly used or
funded under the stewardship program;
new text end

new text begin (14) a description of methods by which the operator will ensure that collection and
storage of covered batteries and covered products at collection sites in the state under the
stewardship program comply with safety and health requirements administered by the
Department of Labor and Industry and with fire protection requirements administered by
the Department of Public Safety;
new text end

new text begin (15) a description of methods by which the operator will ensure that covered batteries
and covered products managed under the stewardship program are transported in compliance
with regulations for managing hazardous materials, incorporated by reference under section
221.033, by each person transporting covered batteries or covered products under the
stewardship program;
new text end

new text begin (16) a statement of indemnification by the operator to collectors for potential liability
for improper downstream management of covered batteries and covered products or residual
materials by transporters or storage, processing, recycling, and disposal facilities that are
identified in the stewardship plan and that are used by collectors;
new text end

new text begin (17) a description of how the operator will determine the mass of covered batteries and
covered products collected, sorted, transported, processed, and recycled under the stewardship
program by county of collection and by battery chemistry;
new text end

new text begin (18) a description of the outreach and education methods and activities that the operator
will provide according to subdivision 9;
new text end

new text begin (19) a description of how the operator will provide at least one full-time operator
employee who is solely dedicated to implementing the stewardship program in this state
and serving as the primary contact between the operator and the agency;
new text end

new text begin (20) an anticipated annual budget for the stewardship program, broken down into
administrative, collection, sorting, transportation, storage, processing, recycling, disposal,
and communication costs, including the cost of fees under subdivision 13, but not including
costs for lobbying, costs associated with litigation against the state related to this section,
or penalties imposed for violating this section;
new text end

new text begin (21) a description of how the operator will provide:
new text end

new text begin (i) advance funding of or reimbursement to collectors for all costs of collecting covered
batteries and covered products and administering the collection program, including costs
of labor and overhead; transport performed by a collector; necessary collection and storage
structures and containers as provided in subdivision 2; employee training; necessary safety
equipment, including appropriate fire protection and suppression equipment and supplies;
and employee time to collect and process covered batteries and covered products received
by the collector; and
new text end

new text begin (ii) payment for all persons transporting covered batteries and covered products and for
all storage, processing, recycling, and disposal facilities to be directly used or funded under
the stewardship program;
new text end

new text begin (22) a description of how the stewardship program will be fully paid for by producers,
without any fee, charge, surcharge, or any other cost to:
new text end

new text begin (i) members of the public;
new text end

new text begin (ii) businesses other than a producer;
new text end

new text begin (iii) collectors; persons transporting, recycling, or disposing of a covered battery or
covered product; or any other person managing a covered battery or covered product;
new text end

new text begin (iv) the state or any political subdivision; or
new text end

new text begin (v) any other person who is not a producer;
new text end

new text begin (23) a description of how the stewardship program will ensure compliance with the
labeling requirements of subdivision 3, paragraph (a); and
new text end

new text begin (24) a description of how the operator will ensure that covered batteries and covered
products managed under the stewardship program are recycled to the maximum extent
practicable in accordance with section 115A.02, paragraph (b).
new text end

new text begin Subd. 5. new text end

new text begin Convenience standards. new text end

new text begin (a) A stewardship plan must provide convenient,
statewide collection for all covered batteries and covered products that are offered to
collectors by members of the public and businesses in the state, irrespective of:
new text end

new text begin (1) the brand, energy capacity, or chemistry;
new text end

new text begin (2) whether the producer of a covered battery or covered product is a participant in the
stewardship program; or
new text end

new text begin (3) whether the brand of a covered battery or covered product is covered under the
stewardship program.
new text end

new text begin (b) A stewardship plan must meet the following convenience standards:
new text end

new text begin (1) for each county with a population of 10,000 or less, at least two permanent year-round
collection sites;
new text end

new text begin (2) for each county with a population greater than 10,000 but less than or equal to
100,000, at least two permanent year-round collection sites and at least one additional
permanent year-round collection site for each additional 10,000 in population above a
population of 10,000;
new text end

new text begin (3) for each county with a population greater than 100,000, at least 11 permanent
year-round collection sites and at least one additional permanent year-round collection site
for each additional 50,000 in population above a population of 100,000;
new text end

new text begin (4) a permanent year-round collection site located within ten miles of the household of
at least 95 percent of the residents of the state; and
new text end

new text begin (5) additional convenience standards that the commissioner determines are necessary
to provide convenient, statewide collection for covered batteries and covered products. The
commissioner may consider data submitted according to subdivision 12, the amount of
covered batteries and covered products collected, the estimated amount of covered batteries
and covered products sold or disposed of in the state, and other information related to the
effectiveness of the stewardship program.
new text end

new text begin Subd. 6. new text end

new text begin Duties to collectors. new text end

new text begin The operator must provide each collection site served by
the stewardship program with:
new text end

new text begin (1) appropriate containers as described in subdivision 2;
new text end

new text begin (2) consistent signage identifying a collection site;
new text end

new text begin (3) training for collection site employees on identifying and safely handling and storing
covered batteries and covered products, including damaged, defective, or recalled batteries,
also known as DDR batteries; and
new text end

new text begin (4) educational materials regarding covered batteries and covered products for distribution
to members of the public and businesses in Minnesota that address the information described
in subdivision 9, paragraph (a), clause (3). The educational materials must be made available
in at least English, Spanish, Somali, and Hmong.
new text end

new text begin Subd. 7. new text end

new text begin Accessibility. new text end

new text begin (a) An operator must provide convenient, equitable, and accessible
service to all Minnesotans, including but not limited to people of color; Minnesota Tribal
governments as defined in section 10.65, subdivision 2; those that are non-English speaking;
immigrant and refugee communities; those with limited access to transportation; and those
in environmental justice areas.
new text end

new text begin (b) The operator must include collection opportunities beyond those required under
subdivision 5 to better serve populations under paragraph (a), such as individual pickup
from households and temporary events to provide enhanced collection availability.
new text end

new text begin (c) The description under subdivision 4, paragraph (c), clause (11), must address the
location of collection sites and storage, processing, and recycling facilities, including
accessing collection sites from public transit.
new text end

new text begin Subd. 8. new text end

new text begin Oversight; collector eligibility. new text end

new text begin (a) The operator must ensure that covered
batteries and covered products managed under the stewardship program are recycled to the
maximum extent practicable in accordance with section 115A.02, paragraph (b), and that
residual materials are managed in compliance with applicable hazardous waste or solid
waste requirements by each person transporting covered batteries or covered products and
by each storage, processing, recycling, and disposal facility to be directly used or funded
under the stewardship program.
new text end

new text begin (b) The operator must allow any person meeting the eligibility criteria to serve as a
collector but may terminate a collector and cease covering the collector's costs for good
cause. The eligibility criteria must include agreement by collectors to accept any brand of
covered battery or covered product, but no collector may be required to accept any covered
battery or covered product that the collector determines cannot be safely collected for any
reason. The operator must provide a method for collecting any such covered battery or
covered product by another collector that meets the convenience standards of subdivision
5.
new text end

new text begin (c) If the commissioner determines that it is necessary to ensure that covered batteries
and covered products are managed to the maximum extent practicable in accordance with
section 115A.02, paragraph (b), the commissioner may require selection criteria and oversight
methods in lieu of or in addition to the selection criteria and oversight methods used by an
operator under paragraph (a) for persons managing covered batteries and covered products.
The commissioner may consider data submitted according to subdivision 12; the availability
and feasibility of technology, processes, and methods for managing covered batteries and
covered products; and other information related to the effectiveness of the stewardship
program.
new text end

new text begin Subd. 9. new text end

new text begin Outreach and education activities; website. new text end

new text begin (a) An operator must provide
outreach and education to:
new text end

new text begin (1) persons that might sell, offer for sale, or distribute covered batteries or covered
products in the state, to inform the persons of the requirements of subdivision 3;
new text end

new text begin (2) potential collectors and collectors that the operator will use to recruit, train, and
monitor other collectors, to include instructions for collectors that are operating before the
effective date of this section on how to request coverage by the stewardship program and
material to encourage increased collection of covered batteries and covered products; and
new text end

new text begin (3) members of the public to raise awareness of:
new text end

new text begin (i) public health and safety and environmental risks caused by improperly charging,
storing, and disposing of covered batteries and covered products;
new text end

new text begin (ii) methods to safely charge and store covered batteries and covered products; and
new text end

new text begin (iii) the location and convenience of collection sites in the state.
new text end

new text begin (b) The operator must maintain a publicly accessible website to locate collection sites
through map-based and text-based searches.
new text end

new text begin (c) Every third year after a stewardship plan is approved by the commissioner under
subdivision 10, the operator must engage a qualified independent party to assess the
effectiveness of the outreach and education activities implemented by the operator. The
independent party must prepare a written assessment that must be included in the annual
report under subdivision 12.
new text end

new text begin Subd. 10. new text end

new text begin Review and approval of stewardship plans; implementation. new text end

new text begin (a) Within
30 days after receiving a stewardship plan submitted under subdivision 4, the commissioner
must place the stewardship plan on the agency's publicly accessible website for at least 30
days for public review and comment.
new text end

new text begin (b) Within 120 days after receiving a stewardship plan submitted under subdivision 4,
the commissioner must determine whether the stewardship plan complies with the
requirements of this section and provide a written notice of determination according to this
subdivision.
new text end

new text begin (c) In conducting a review of a submitted stewardship plan, the commissioner may
consult with the public or other stakeholders.
new text end

new text begin (d) If the commissioner determines that a submitted stewardship plan fails to meet the
requirements of subdivision 4, the commissioner must reject the stewardship plan. The
commissioner must provide a written notice of determination describing the reasons for the
rejection to the submitting operator.
new text end

new text begin (e) If the commissioner determines that a submitted stewardship plan meets the
requirements of subdivision 4, the commissioner must approve the stewardship plan. The
commissioner must provide a written notice of determination to the submitting operator.
new text end

new text begin (f) The operator must publish an approved stewardship plan on its publicly accessible
website within 30 days after receiving written notice of approval, but is not required to
publish any portion of the stewardship plan that is nonpublic data under chapter 13. The
agency must also publish the approved stewardship plan on its publicly accessible website
within 30 days of the commissioner's approval, but must not publish any portion of the
stewardship plan that is nonpublic data under chapter 13.
new text end

new text begin (g) The operator must implement an approved stewardship plan within 60 days after
receiving written notice of approval.
new text end

new text begin (h) For each stewardship plan or amendment submitted to the commissioner for review
and approval, the commissioner may consider the data submitted according to subdivision
12 and other relevant information to establish requirements to improve the effectiveness,
performance, and awareness of the stewardship program.
new text end

new text begin (i) An operator must comply with its approved stewardship plan and any approved
amendments to the plan.
new text end

new text begin Subd. 11. new text end

new text begin Amending or terminating stewardship plans. new text end

new text begin (a) An operator may amend
a stewardship plan approved under subdivision 10 without review or approval by the
commissioner according to this paragraph. Within 30 days after making an amendment
under this paragraph, the operator must notify the commissioner of the amendment and
must publish the amended stewardship plan on the operator's publicly accessible website.
An operator may:
new text end

new text begin (1) add, terminate, or replace a collector, collection site, person transporting covered
batteries or covered products, or facility used for storage, processing, recycling, or disposal;
new text end

new text begin (2) add or remove participants or brands covered under the stewardship plan; or
new text end

new text begin (3) change contact staff or associated contact staff information for the operator,
participants, collectors, persons transporting covered batteries or covered products, or
facilities to be used for storage, processing, recycling, or disposal.
new text end

new text begin (b) Except for an amendment under paragraph (a), a proposed amendment to a
stewardship plan approved under subdivision 10 must be submitted to and reviewed and
approved by the commissioner before it may be implemented by the operator. The
commissioner must review and approve or deny the proposed amendment according to
subdivision 10.
new text end

new text begin (c) An operator with an approved stewardship plan must submit an amended stewardship
plan for review and approval at least every five years according to this subdivision and
subdivision 4 if the operator has not during that time submitted amendments for review and
approval under paragraph (b).
new text end

new text begin (d) An operator may terminate a stewardship plan by providing at least 90 days' written
notice to the commissioner and to all participants in the stewardship program. Before the
stewardship plan is terminated, each participant must meet the requirements of subdivisions
4 to 9.
new text end

new text begin (e) The commissioner may terminate a stewardship plan for good cause, including
significant noncompliance with this section or failure to timely submit a stewardship plan
for review and approval under subdivision 10. If the commissioner terminates a stewardship
program, the commissioner must provide the operator with written notice of termination
describing the good cause for termination. The commissioner must also notify all participants
in the stewardship program in writing using the contact information for the participants
provided in the stewardship plan.
new text end

new text begin Subd. 12. new text end

new text begin Reporting. new text end

new text begin (a) An operator must report to the commissioner within 30 days
of making an amendment to the stewardship plan made under subdivision 11, paragraph
(a).
new text end

new text begin (b) By April 1 each year, an operator must report to the commissioner on the stewardship
organization's activities during the preceding calendar year. The report must include:
new text end

new text begin (1) the address; county of location; and, in a form prescribed by the commissioner,
geolocation data for each collection site used by the operator under the stewardship program
during the preceding calendar year;
new text end

new text begin (2) the number and mass of covered batteries and covered products managed under the
stewardship program during the preceding calendar year, categorized by county of collection
and by battery chemistry;
new text end

new text begin (3) a description of outreach and education activities performed by the operator during
the preceding calendar year to educate members of the public and businesses in the state
about the availability of the battery stewardship program and location of collectors and a
copy of the independent review under subdivision 9, paragraph (d), if required;
new text end

new text begin (4) a financial report on the stewardship program, including actual costs and funding
compared to the budget for the year contained in the stewardship plan. The financial report
must include an audit report of the stewardship program by an independent auditor. The
independent auditor must be selected by the operator and approved or rejected by the
commissioner. If the commissioner rejects an independent auditor, the operator must select
a different independent auditor for approval or rejection by the commissioner. The
independent audit must meet the requirements of Accounting Standards Update 2018-08,
Not-for-Profit Entities (Topic 958), Financial Accounting Standards Board, as amended;
new text end

new text begin (5) the proposed and actual budget for the year in which the report is submitted; and
new text end

new text begin (6) every fourth year after a stewardship plan is approved by the commissioner, a
performance audit of the program. The performance audit must conform to audit standards
established by the United States Government Accountability Office; the National Association
of State Auditors, Comptrollers and Treasurers; or another nationally recognized organization
approved by the commissioner.
new text end

new text begin Subd. 13. new text end

new text begin Fees. new text end

new text begin (a) Notwithstanding section 16A.1283, the commissioner must charge
a reasonable review fee to be paid by an operator for review of the operator's initial
stewardship plan. Fees established under this paragraph must be based on the expected costs
to the agency for reviewing a stewardship plan.
new text end

new text begin (b) By January 1, 2026, and by July 1 each year thereafter, the commissioner must
calculate the annual costs that the agency incurs under this section. Notwithstanding section
16A.1283, the commissioner must then set an annual fee at an amount that, when paid by
every operator, is adequate to reimburse the agency's full costs of administering this section.
The total amount of annual fees and review fees collected under this subdivision must not
exceed the amount necessary to reimburse costs incurred by the agency to administer this
section. Each operator must pay the annual fee.
new text end

new text begin (c) All fees received under this section must be deposited in the state treasury and credited
to a product stewardship account in the special revenue fund. The amount collected under
this section is annually appropriated to the commissioner to implement and enforce this
section.
new text end

new text begin Subd. 14. new text end

new text begin Rules. new text end

new text begin (a) The commissioner may adopt rules to implement this section. The
18-month time limit under section 14.125 does not apply to rulemaking under this section.
new text end

new text begin (b) The commissioner may adopt rules to designate additional types of primary batteries
as covered batteries subject to this section if the commissioner determines that the type of
primary battery would be a hazardous waste or problem material when disposed of or that
the battery contains a chemical of high concern, critical material, or critical mineral.
new text end

new text begin Subd. 15. new text end

new text begin Limited private right of action. new text end

new text begin (a) Except as provided in paragraph (d), an
operator that spent at least $250,000 managing covered batteries or covered products in the
state in the previous calendar year may maintain a civil action against one or more producers
or operators to recover a portion of the operator's costs and additional amounts according
to this subdivision.
new text end

new text begin (b) Damages recoverable under this subdivision may not exceed a fair share of the actual
costs incurred by the plaintiff operator in managing covered batteries or covered products
of a defendant producer or defendant operator subject to subdivision 3, paragraph (b).
Additional amounts recoverable under this subdivision may include an award of reasonable
attorney fees and court costs, including expert witness fees. If a defendant producer did not
implement or participate in a stewardship program established under this section during the
period in which covered batteries or covered products of the defendant producer were
managed by the plaintiff, a punitive sum of up to three times the damages awarded may be
assessed.
new text end

new text begin (c) A plaintiff operator may establish a defendant producer's or defendant operator's fair
share of the plaintiff's actual costs by providing the court with data establishing the relative
weight of covered batteries and covered products collected by the plaintiff for which the
defendant was required under this section to manage under a stewardship program compared
to the weight of other covered batteries and covered products collected by the plaintiff. This
data may include:
new text end

new text begin (1) data generated from sorts of covered batteries or covered products involving a
minimum of 500 pounds of covered batteries and covered products collected at each of
three or more collection sites in the state that are found by the court to have been collected
in an unbiased manner and to be reasonably representative of collection sites in the state;
new text end

new text begin (2) an analysis of collections by the plaintiff that are found by the court to be reasonably
representative of total collections in the state;
new text end

new text begin (3) market share data that the court finds reasonably represents the percentage of sales
by the defendant producer in the state; and
new text end

new text begin (4) any other data or method that the court finds reliable in establishing the defendant's
fair share of the plaintiff's actual costs.
new text end

new text begin (d) An action may not be commenced under this subdivision against a potential defendant
producer or defendant operator until 60 days after the plaintiff operator provides to all
potential defendants a written notice of the claim setting forth the amount of the claim and
the basis for the calculation of the amount.
new text end

new text begin (e) No action may be brought under this subdivision against a person other than a producer
or operator.
new text end

new text begin (f) The commissioner may not be a party to or be required to provide assistance or
otherwise participate in a civil action authorized under this subdivision unless subject to a
subpoena before a court of jurisdiction.
new text end

new text begin Subd. 16. new text end

new text begin Conduct authorized. new text end

new text begin A producer or stewardship organization that organizes
collecting, sorting, transporting, storing, processing, recycling, or disposing of covered
batteries or covered products under this section is immune from liability for the conduct
under state laws relating to antitrust, restraint of trade, unfair trade practices, and other
regulation of trade or commerce only to the extent that the conduct is necessary to plan and
implement the producer's or stewardship organization's chosen organized collection, sorting,
transport, storage, processing, recycling, and disposal system.
new text end

new text begin Subd. 17. new text end

new text begin Duty to provide information. new text end

new text begin Upon request of the commissioner for purposes
of determining compliance with this section, a person must furnish to the commissioner
any information that the person has or may reasonably obtain.
new text end

Sec. 3.

Minnesota Statutes 2022, section 325E.125, subdivision 2, is amended to read:

Subd. 2.

Mercury content.

(a) Except as provided in paragraph (c), a manufacturer may
not sell, distribute, or offer for sale in this state an alkaline manganese battery that contains
more than 0.025 percent mercury by weight.

(b) On application, the commissioner of the Pollution Control Agency may exempt a
specific type of battery from the requirements of paragraph (a) or (d) if there is no battery
meeting the requirements that can be reasonably substituted for the battery for which the
exemption is sought. A battery exempted by the commissioner under this paragraph is
subject to the requirements of section deleted text begin 115A.9155, subdivision 2 deleted text end new text begin 115A.9165 new text end .

(c) Notwithstanding paragraph (a), a manufacturer may not sell, distribute, or offer for
sale in this state a button cell nonrechargeable battery not subject to paragraph (a) that
contains more than 25 milligrams of mercury.

(d) A manufacturer may not sell, distribute, or offer for sale in this state a dry cell battery
containing a mercuric oxide electrode.

(e) After January 1, 1996, a manufacturer may not sell, distribute, or offer for sale in
this state an alkaline manganese battery, except an alkaline manganese button cell, that
contains mercury unless the commissioner of the Pollution Control Agency determines that
compliance with this requirement is not technically and commercially feasible.

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 115A.9155; 115A.9157, subdivisions 1, 2, 3, 5, 6, 7,
8, and 9; and 325E.125, subdivisions 3, 4, and 5, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

APPENDIX

Repealed Minnesota Statutes: 24-07502

115A.9155 DISPOSING OF CERTAIN DRY CELL BATTERIES.

Subdivision 1.

Prohibition.

A person may not place in mixed municipal solid waste a dry cell battery containing mercuric oxide electrode, silver oxide electrode, nickel-cadmium, or sealed lead-acid that was purchased for use or used by a government agency, or an industrial, communications, or medical facility.

Subd. 2.

Manufacturer responsibility.

(a) A manufacturer of batteries subject to subdivision 1 shall:

(1) ensure that a system for the proper collection, transportation, and processing of waste batteries exists for purchasers in Minnesota; and

(2) clearly inform each final purchaser of the prohibition on disposal of waste batteries and of the system or systems for proper collection, transportation, and processing of waste batteries available to the purchaser.

(b) To ensure that a system for the proper collection, transportation, and processing of waste batteries exists, a manufacturer shall:

(1) identify collectors, transporters, and processors for the waste batteries and contract or otherwise expressly agree with a person or persons for the proper collection, transportation, and processing of the waste batteries; or

(2) accept waste batteries returned to its manufacturing facility.

(c) At the time of sale of a battery subject to subdivision 1, a manufacturer shall provide in a clear and conspicuous manner a telephone number that the final consumer of the battery can call to obtain information on specific procedures to follow in returning the battery for recycling or proper disposal. The manufacturer may include the telephone number and notice of return procedures on an invoice or other transaction document held by the purchaser. The manufacturer shall provide the telephone number to the commissioner of the agency.

(d) A manufacturer shall ensure that the cost of proper collection, transportation, and processing of the waste batteries is included in the sales transaction or agreement between the manufacturer and any purchaser.

(e) A manufacturer that has complied with this subdivision is not liable under subdivision 1 for improper disposal by a person other than the manufacturer of waste batteries.

115A.9157 RECHARGEABLE BATTERIES AND PRODUCTS.

Subdivision 1.

Definition.

For the purpose of this section, "rechargeable battery" means a sealed nickel-cadmium battery, a sealed lead acid battery, or any other rechargeable battery, except a rechargeable battery governed by section 115A.9155 or exempted by the commissioner under subdivision 9.

Subd. 2.

Prohibition.

Effective August 1, 1991, a person may not place in mixed municipal solid waste a rechargeable battery, a rechargeable battery pack, a product with a nonremovable rechargeable battery, or a product powered by rechargeable batteries or rechargeable battery pack, from which all batteries or battery packs have not been removed.

Subd. 3.

Collection and management costs.

A manufacturer of rechargeable batteries or products powered by rechargeable batteries is responsible for the costs of collecting and managing its waste rechargeable batteries and waste products to ensure that the batteries are not part of the solid waste stream.

Subd. 5.

Collection and management programs.

(a) By September 20, 1995, the manufacturers or their representative organization shall implement permanent programs, based on the results of the pilot projects required in Minnesota Statutes 1994, section 115A.9157, subdivision 4, that may be reasonably expected to collect 90 percent of the waste rechargeable batteries and the participating manufacturers' products powered by rechargeable batteries that are generated in the state. The batteries and products collected must be recycled or otherwise managed or disposed of properly.

(b) In every odd-numbered year after 1995, each manufacturer or a representative organization shall provide information to the senate and house of representatives committees having jurisdiction over environment and natural resources and environment and natural resources finance that specifies at least the estimated amount of rechargeable batteries subject to this section sold in the state by each manufacturer and the amount of batteries each collected during the previous two years. A representative organization may report the amounts in aggregate for all the members of the organization.

Subd. 6.

List of participants.

A manufacturer or its representative organization shall inform the committees listed in subdivision 5 when they begin participating in the projects and programs and immediately if they withdraw participation.

Subd. 7.

Contracts.

A manufacturer or a representative organization of manufacturers may contract with the state or a political subdivision to provide collection services under this section. The manufacturer or organization shall fully reimburse the state or political subdivision for the value of any contractual services rendered under this subdivision.

Subd. 8.

Anticompetitive conduct.

A manufacturer or organization of manufacturers and its officers, members, employees, and agents who participate in projects or programs to collect and properly manage waste rechargeable batteries or products powered by rechargeable batteries are immune from liability under state law relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or commerce for activities related to the collection and management of batteries and products required under this section.

Subd. 9.

Exemptions.

To ensure that new types of batteries do not add additional hazardous or toxic materials to the mixed municipal solid waste stream, the commissioner of the agency may exempt a new type of rechargeable battery from the requirements of this section if it poses no unreasonable hazard when placed in and processed or disposed of as part of a mixed municipal solid waste.

325E.125 GENERAL AND SPECIAL PURPOSE BATTERY REQUIREMENTS.

Subd. 3.

Rechargeable tools and appliances.

(a) A manufacturer may not sell, distribute, or offer for sale in this state a rechargeable consumer product unless:

(1) the battery can be easily removed by the consumer or is contained in a battery pack that is separate from the product and can be easily removed; and

(2) the product and the battery are both labeled in a manner that is clearly visible to the consumer indicating that the battery must be recycled or disposed of properly and the battery must be clearly identifiable as to the type of electrode used in the battery.

(b) "Rechargeable consumer product" as used in this subdivision means any product that contains a rechargeable battery and is primarily used or purchased to be used for personal, family, or household purposes.

(c) On application by a manufacturer, the commissioner of the Pollution Control Agency may exempt a rechargeable consumer product from the requirements of paragraph (a) if:

(1) the product cannot be reasonably redesigned and manufactured to comply with the requirements prior to the effective date of Laws 1990, chapter 409, section 2;

(2) the redesign of the product to comply with the requirements would result in significant danger to public health and safety; or

(3) the type of electrode used in the battery poses no unreasonable hazards when placed in and processed or disposed of as part of mixed municipal solid waste.

(d) An exemption granted by the commissioner of the Pollution Control Agency under paragraph (c), clause (1), must be limited to a maximum of two years and may be renewed.

Subd. 4.

Rechargeable batteries and products; notice.

(a) A person who sells rechargeable batteries or products powered by rechargeable batteries governed by section 115A.9157 at retail shall post the notice in paragraph (b) in a manner clearly visible to a consumer making purchasing decisions.

(b) The notice must be at least four inches by six inches and state:

"ATTENTION USERS OF RECHARGEABLE BATTERIES AND CORDLESS PRODUCTS:

Under Minnesota law, manufacturers of rechargeable batteries, rechargeable battery packs, and products powered by nonremovable rechargeable batteries will provide a special collection system for these items by April 15, 1994. It is illegal to put rechargeable batteries in the garbage. Use the special collection system that will be provided in your area. Take care of our environment.

DO NOT PUT RECHARGEABLE BATTERIES OR PRODUCTS POWERED BY NONREMOVABLE RECHARGEABLE BATTERIES IN THE GARBAGE."

(c) Notice is not required for home solicitation sales, as defined in section 325G.06, or for catalogue sales.

Subd. 5.

Prohibitions.

A manufacturer of rechargeable batteries or products powered by rechargeable batteries that does not participate in the pilot projects and programs required in section 115A.9157 may not sell, distribute, or offer for sale in this state rechargeable batteries or products powered by rechargeable batteries after January 1, 1992.

After January 1, 1992, a person who first purchases rechargeable batteries or products powered by rechargeable batteries for importation into the state for resale may not purchase rechargeable batteries or products powered by rechargeable batteries made by any person other than a manufacturer that participates in the projects and programs required under section 115A.9157.