HF 4868

as introduced - 92nd Legislature (2021 - 2022) Posted on 05/09/2022 04:02pm

A bill for an act
relating to solid waste; establishing program for beverage container deposits;
providing 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 DEPOSITS; 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 beverage carton; pouch; 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; and
new text end

new text begin (ii) the volume of which is not more than 1 gallon;
new text end

new text begin (4) "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 (5) "consumer" means a person in the state who purchases a beverage in a beverage
container for use or consumption;
new text end

new text begin (6) "distributor" means a person who sells beverages in beverage containers to a retailer
in the state, including a manufacturer who engages in sales;
new text end

new text begin (7) "importer" means a retailer or manufacturer who directly imports beverage containers
into the state;
new text end

new text begin (8) "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 (9) "member" means a distributor or importer that joins the organization and pays the
applicable fees;
new text end

new text begin (10) "producer responsibility organization" or "organization" means the producer
responsibility organization established under section 115A.5663;
new text end

new text begin (11) "retailer" means a person in the state that sells beverages in beverage containers to
a consumer; and
new text end

new text begin (12) "reverse vending machine" means a device designed to properly identify and process
empty beverage containers eligible for redemption and provide a means for a deposit refund
or retail voucher.
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 under 24 fluid ounces; and
new text end

new text begin (2) 15 cents for beverage containers of 24 fluid ounces or more.
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 producer responsibility organization, to change
the minimum refund amount 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 the change 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) If the organization's publicly reported redemption rate required under section
115A.5663, subdivision 5, shows that the redemption rate does not reach 85 percent for
three years in a row after being required to reach this performance target under section
115A.5663, subdivision 4, then every beverage container sold or offered for sale in the state
must have the following refund value:
new text end

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

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

new text begin (g) The organization must use deposits not redeemed by the consumer to support the
organization's administrative costs and to perform the duties required under section
115A.5663.
new text end

new text begin Subd. 2. new text end

new text begin Disposition of redeemed containers; dedicated account. new text end

new text begin (a) When a consumer
redeems a beverage container for the applicable refund value, the organization becomes the
owner of the beverage container and may sell it to the end-market of the organization's
choosing.
new text end

new text begin (b) Notwithstanding paragraph (a), for five years after the effective date of this section,
the organization must transfer ten percent of the scrap value to the commissioner to be
deposited in the state treasury and credited to the special revenue fund. The money is
appropriated to the commissioner and must be spent only to support collecting household
recyclables, including direct payments to household recycling collection operators, and
household recycling education efforts.
new text end

new text begin Subd. 3. new text end

new text begin Methods of redeeming. new text end

new text begin (a) A retailer whose retail area is equal to or greater
than 5,000 square feet must:
new text end

new text begin (1) accept a beverage container and pay the applicable refund value for up to 250 beverage
containers per person per day;
new text end

new text begin (2) permit the organization to operate a bag drop program in the retailer's parking lot by
providing space of the retailer's choosing within its parking lot sufficient to operate a bag
drop as described in section 115A.5663, subdivision 3; or
new text end

new text begin (3) if the retailer has fewer than 30 parking spots under the retailer's control, permit the
organization to install, maintain, and service at least two reverse vending machines.
new text end

new text begin (b) A retailer whose retail area is more than 1,000 square feet and less than 5,000 square
feet must:
new text end

new text begin (1) accept a beverage container and pay the applicable refund value for up to 50 beverage
containers per person per day;
new text end

new text begin (2) permit the organization to operate a bag drop program in the retailer's parking lot by
providing space of the retailer's choosing within its parking lot sufficient to operate a bag
drop as described in section 115A.5663, subdivision 3; or
new text end

new text begin (3) if the retailer has fewer than 30 parking spots under the retailer's control, permit the
organization to install, maintain, and service at least one reverse vending machine.
new text end

new text begin (c) A retailer whose retail area is 1,000 square feet or less and who sells more than
1,000,000 beverage containers per year must:
new text end

new text begin (1) accept a beverage container and pay the applicable refund value for up to 25 beverage
containers per person per day;
new text end

new text begin (2) permit the organization to operate a bag drop program in the retailer's parking lot by
providing space of the retailer's choosing within its parking lot sufficient to operate a bag
drop as described in section 115A.5663, subdivision 3; or
new text end

new text begin (3) if the retailer has fewer than 30 parking spots under its control, permit the organization
to install, maintain, and service at least one reverse vending machine.
new text end

new text begin (d) Notwithstanding paragraphs (a) to (c), a retailer must:
new text end

new text begin (1) upon request from the organization, offer for sale the standard bags that the
organization deems necessary to operate the bag drop programs;
new text end

new text begin (2) permit the organization to install, service, and operate a reverse vending machine in
space controlled by the retailer; and
new text end

new text begin (3) permit the organization to install, service, and operate a self-service kiosk that allows
for printing redemption vouchers.
new text end

new text begin (e) The following retailers are exempt from this subdivision:
new text end

new text begin (1) a business that primarily prepares food for sale;
new text end

new text begin (2) a business that sells beverage containers to consumers through stand-alone vending
machines or similar means; and
new text end

new text begin (3) a retailer whose retail area is 1,000 square feet or less and who sells less than
1,000,000 beverage containers per year, except that paragraph (d) applies.
new text end

new text begin (f) Notwithstanding paragraphs (a) to (e), for zip codes in the state with a population
density greater than 30,000 residents per square mile, the organization must ensure that all
residents in the applicable zip code are within two miles of a bag drop redemption location
and must build, service, and operate the organization's own bag drop redemption locations
as necessary.
new text end

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

new text begin (1) must accept unlimited amounts of beverage containers eligible for redemption
submitted in the standard bag from entities established and operated as described in section
501(c)(3) of the Internal Revenue Code of 1986 or from nonprofit organizations established
and operated under the tax law of any state; and
new text end

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

new text begin (h) 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.
new text end

new text begin (i) The organization must provide information according to clauses (1) to (3) on how
consumers can alert the organization to problems at redemption locations:
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 ten feet by ten 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 reverse vending machines.
new text end

new text begin Subd. 4. new text end

new text begin Labeling. new text end

new text begin (a) A manufacturer, importer, or distributor of a beverage container
that is sold in the state must clearly display on the top lid or side of the beverage container
the name or abbreviation of the state and the applicable refund value.
new text end

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

new text begin Subd. 5. new text end

new text begin Timing. new text end

new text begin (a) All beverage containers that are made of aluminum, glass, high
density polyethylene plastic, or polyethylene terephthalate and sold in the state must be
labeled according to subdivision 4 no later than two years after the effective date of this
section. All other beverage containers must be labeled according to subdivision 4 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. 6. new text end

new text begin Prohibitions. new text end

new text begin (a) It is unlawful to distribute, import, or sell beverage containers
in commerce in 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

Sec. 3.

new text begin [115A.5663] PRODUCER RESPONSIBILITY ORGANIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Formation. new text end

new text begin The producer responsibility organization must be established
and operated as a not-for-profit organization. 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; 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.
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 unredeemed deposits, container recycling fees, or any other
revenue sources that the organization may develop, 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 net cost of collecting, sorting, and processing each beverage container type after
revenue is generated from the sale of the container; and
new text end

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

new text begin (d) The organization must refund to members the proceeds of selling the redeemed
beverage containers based on the relative scrap value of the beverage containers each member
distributes or sells in the state.
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 pay for:
new text end

new text begin (1) installing, maintaining, and operating redemption in retailer parking lots according
to section 115A.5661 that permit consumers to drop off bags with beverage containers
eligible for redemption and get paid electronically the appropriate redemption value;
new text end

new text begin (2) installing, maintaining, and operating reverse vending machines at retailers according
to section 115A.5661;
new text end

new text begin (3) installing, maintaining, and operating self-service kiosks at retailers according to
section 115A.5661;
new text end

new text begin (4) building, servicing, and operating bag drop locations necessary to provide adequate
access to certain zip codes as described in section 115A.5661;
new text end

new text begin (5) any facilities in the state necessary to efficiently aggregate, sort, and process the
material collected at various redemption locations; and
new text end

new text begin (6) maintaining a list and map on the organization's website of all redemption locations
and what redemption options are available at each location.
new text end

new text begin (b) 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 clean up and for education and outreach on recycling beverage
containers or other containers; and
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.
new text end

new text begin (c) 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 50 percent. Money refunded to members must not
cause revenue to go below 150 percent of the organization's costs.
new text end

new text begin Subd. 4. 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 sold in the state are labeled with
the applicable deposit value, at least 75 percent redemption for all beverage containers;
new text end

new text begin (2) beginning four years after all beverage containers sold in the state are labeled with
the applicable deposit value, at least 85 percent redemption target for all beverage containers;
and
new text end

new text begin (3) beginning six years after all beverage containers sold in the state are labeled with
the applicable deposit value, at least 90 percent redemption for all beverage containers.
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 public
data required under subdivision 5 showed 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 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 up to $250 per day that the targets are not met; 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 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 governing
board must appoint a new director; and
new text end

new text begin (2) the commissioner may fine the organization up to $350 per day that the targets are
not met.
new text end

new text begin (e) If the performance targets under paragraph (a) have not been met 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 organization's governing board within
180 days after achieving the performance targets. The organization must reimburse the
commissioner for costs that the commissioner incurs under this paragraph and that are not
otherwise reimbursed.
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. 5. new text end

new text begin Reporting. new text end

new text begin (a) By July 1, 2026, and each year thereafter, the organization must
make the information in clauses (1) to (17) for the preceding calendar year publicly available
on the organization's website. The organization must keep an archive of the annual reports
under this paragraph 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 for each quarter
of the year;
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 year;
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 year;
new text end

new text begin (4) the number of beverage containers redeemed by material type for each quarter of
the year;
new text end

new text begin (5) the redemption rate for all beverage containers;
new text end

new text begin (6) the number of beverage containers redeemed at each bag drop location, reverse
vending machine, or other redemption location that the organization operates;
new text end

new text begin (7) the end markets to which the organization sold beverage containers with an indication
of what material type each end market bought from the organization;
new text end

new text begin (8) the percent of the total amount sold of each material type that went to each end
market;
new text end

new text begin (9) all redemption locations in the state;
new text end

new text begin (10) the methods of redemption at each location in the state;
new text end

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

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

new text begin (13) the organization's total reserves;
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 age
and gender 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; and
new text end

new text begin (17) the total number of individual consumers per month that filed complaints by
redemption location.
new text end

new text begin (b) The commissioner may require the organization to have an independent third party
verify the information disclosed under paragraph (a). The commissioner must notify the
organization no later than August 1 that an independent third-party review is required, and
the organization must conduct the independent third-party review by December 31 of the
year notified.
new text end

new text begin (c) 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 Subd. 6. 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) environmental nonprofit organizations;
new text end

new text begin (5) end markets that buy or recycle beverage containers from the organization; and
new text end

new text begin (6) retailers or retailer trade associations.
new text end

new text begin (b) At least twice a year, the organization must give the operations advisory committee
the opportunity to provide written or oral comments directly to the organization's president
and board of directors. The operations advisory committee must annually submit to the
legislature a written report with the committee's feedback on:
new text end

new text begin (1) the organization's operation; and
new text end

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

new text begin (3) 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) At least twice a year, the organization must give the equity and access committee
the opportunity to provide written or oral comments directly to the organization's president
and board of directors. The equity and access committee must annually submit to the
legislature a written report with:
new text end

new text begin (1) 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 (2) recommendations on how the organization can improve in terms of equity and access.
new text end

new text begin (e) The organization must publish the written reports to the legislature under paragraphs
(b) and (c) on the organization's website
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 the state marketplace for redemption;
new text end

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

new text begin (4) sells beverage containers not distributed 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;
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.
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 per redemption location that receives complaints from more than 50 individuals
per month according to the public reporting required in section 115A.5663, subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Disposition of proceeds. new text end

new text begin All monetary penalties 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 for:
new text end

new text begin (1) administering sections 115A.566 to 115A.5665;
new text end

new text begin (2) building infrastructure that enhances recycling in the state;
new text end

new text begin (3) conducting outreach and education activities focused on recycling in the state;
new text end

new text begin (4) cleaning up litter in the state; or
new text end

new text begin (5) supporting collection of recyclable material from the households or 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, 2023.
new text end