SF 3561

4th Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/19/2024 09:57am

A bill for an act
relating to solid waste; establishing Packaging Waste and Cost Reduction Act;
authorizing rulemaking; proposing coding for new law in Minnesota Statutes,
chapter 115A.

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

Section 1.

[115A.144] SHORT TITLE.

Sections 115A.144 to 115A.1462 may be cited as the "Packaging Waste and Cost
Reduction Act."

Sec. 2.

[115A.1441] DEFINITIONS.

Subdivision 1.

Scope.

For the purposes of sections 115A.144 to 115A.1462, the terms
in this section have the meanings given.

Subd. 2.

Advisory board.

"Advisory board" or "board" means the Producer
Responsibility Advisory Board established under section 115A.1444.

Subd. 3.

Brand.

"Brand" means a name, symbol, word, or mark that identifies a product
and attributes the product and its components, including packaging, to the brand owner.

Subd. 4.

Brand owner.

"Brand owner" means a person that owns or licenses a brand or
that otherwise has rights to market a product under the brand, whether or not the brand's
trademark is registered.

Subd. 5.

Collection rate.

"Collection rate" means the amount of a covered material by
covered materials type collected by service providers and transported for recycling or
composting divided by the total amount of the type of a covered material by covered materials
type sold or distributed into the state by the relevant unit of measurement established in
section 115A.1451.

Subd. 6.

Compostable material.

"Compostable material" means a covered material
that:

(1) meets, and is labeled to reflect that it meets, the American Society for Testing and
Materials Standard Specification for Labeling of Plastics Designed to be Aerobically
Composted in Municipal or Industrial Facilities (D6400) or its successor;

(2) meets, and is labeled to reflect that it meets, the American Society for Testing and
Materials Standard Specification for Labeling of End Items that Incorporate Plastics and
Polymers as Coatings or Additives with Paper and Other Substrates Designed to be
Aerobically Composted in Municipal or Industrial Facilities (D6868) or its successor;

(3) is comprised of only wood without any coatings or additives; or

(4) is comprised of only paper without any coatings or additives.

Subd. 7.

Composting.

"Composting" means the controlled microbial degradation of
source-separated compostable materials to yield a humus-like product.

Subd. 8.

Composting rate.

"Composting rate" means the amount of compostable covered
material that is managed through composting, divided by the total amount of compostable
covered material sold or distributed into the state by the relevant unit of measurement
established in section 115A.1451.

Subd. 9.

Covered material.

"Covered material" means packaging and paper products
introduced into the state. Covered material does not include exempt materials.

Subd. 10.

Covered materials type.

"Covered materials type" means a singular and
specific type of covered material, such as paper, plastic, metal, or glass, that can be
categorized based on distinguishing chemical or physical properties, including properties
that allow for a covered materials type to be aggregated into a commonly defined discrete
commodity category for purposes of reuse, recycling, or composting, and based on similar
uses in the form of a product or package.

Subd. 11.

De minimis producer.

"De minimis producer" means a person that in the
most recent fiscal year:

(1) introduced less than one ton of covered material into this state; or

(2) earned global gross revenues of less than $2,000,000.

Subd. 12.

Drop-off collection site.

"Drop-off collection site" means a physical location
where covered materials are accepted from the public and that is open a minimum of 12
hours weekly throughout the year.

Subd. 13.

Environmental impact.

"Environmental impact" means the impact of a
covered material on human health and the environment from extraction and processing of
the raw materials composing the material through manufacturing; distribution; use; recovery
for reuse, recycling, or composting; and final disposal.

Subd. 14.

Exempt materials.

"Exempt materials" means materials, or any portion of
materials, that:

(1) are packaging for infant formula, as defined in United States Code, title 21, section
321(z);

(2) are packaging for medical food, as defined in United States Code, title 21, section
360ee(b)(3);

(3) are packaging for a fortified oral nutritional supplement used by persons who require
supplemental or sole source nutrition to meet nutritional needs due to special dietary needs
directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive,
as those terms are defined by the International Classification of Diseases, Tenth Revision;

(4) are a product, including its peripheral accessories, and the packaging or packaging
components for any investigational or approved product regulated as a drug or medical
device by the United States Food and Drug Administration;

(5) are medical equipment or products or their components, including consumable
medical equipment or products and their components, and the packaging or packaging
components for any products used in health care settings, including hospitals and clinics
that are regulated by the United States Food and Drug Administration or used for infection
prevention and dispensing of medication;

(6) are medical equipment or products and the packaging or packaging components for
any product intended for Research Use Only as defined in the Federal Food, Drug, and
Cosmetic Act, United States Code, title 21, section 360 et seq.;

(7) are drugs, biological products, parasiticides, medical devices, or in vitro diagnostics
used to treat, or administered to, animals and regulated by the United States Food and Drug
Administration under the Federal Food, Drug, and Cosmetic Act, United States Code, title
21, section 301 et seq., by the United States Department of Agriculture under the federal
Virus-Serum-Toxin Act, United States Code, title 21, section 151 et seq.;

(8) are packaging for products regulated or by the United States Environmental Protection
Agency under the Federal Insecticide, Fungicide, and Rodenticide Act, United States Code,
title 7, section 136 et seq.;

(9) are packaging used to contain liquefied petroleum gas and are designed to be refilled;
or

(10) are paper products used for a print publication that primarily includes content derived
from primary sources related to news and current events.

Subd. 15.

Food packaging.

"Food packaging" has the meaning given in section 325F.075.

Subd. 16.

Independent auditor.

"Independent auditor" means an independent and
actively licensed certified public accountant that is:

(1) retained by a producer responsibility organization;

(2) not otherwise employed by or affiliated with a producer responsibility organization;
and

(3) qualified to conduct an audit under state law.

Subd. 17.

Infrastructure investment.

"Infrastructure investment" means an investment
by a producer responsibility organization that funds or reimburses service providers for:

(1) equipment or facilities in which covered materials are prepared for reuse, recycling,
or composting;

(2) equipment or facilities used for waste reduction, reuse, recycling, or composting of
covered materials; or

(3) the expansion or strengthening of demand for and use of covered materials by
responsible markets in the state or region.

Subd. 18.

Introduce.

"Introduce" means to sell, offer for sale, distribute, or use to ship
a product within or into this state.

Subd. 19.

Living wage.

"Living wage" means the minimum hourly wage necessary to
allow a person working 40 hours per week to afford basic needs.

Subd. 20.

Needs assessment.

"Needs assessment" means an assessment conducted
according to section 115A.1450. Except where the context requires otherwise, needs
assessment means the most recently completed needs assessment.

Subd. 21.

Nondisclosure agreement.

"Nondisclosure agreement" means an agreement
that requires the parties to the agreement to treat private and nonpublic data submitted to
facilitate completion of a needs assessment according to the definitions and requirements
established in section 115A.06, subdivision 13.

Subd. 22.

Packaging.

"Packaging" has the meaning given in section 115A.03 and
includes food packaging and only includes those materials that are supplied to a residential
consumer. Packaging does not include exempt materials.

Subd. 23.

Paper product.

"Paper product" means a product made primarily from wood
pulp or other cellulosic fibers, except that paper product does not include bound books or
products that recycling or composting facilities will not accept because of the unsafe or
unsanitary nature of the paper product.

Subd. 24.

Postconsumer recycled content.

"Postconsumer recycled content" means
the portion of a product composed of postconsumer material, expressed as a percentage of
the total weight of the product.

Subd. 25.

Producer.

(a) "Producer" means the following person responsible for
compliance with requirements under this act for a covered material sold, offered for sale,
or distributed in or into this state:

(1) for items sold in or with packaging at a physical retail location in this state:

(i) if the item is sold in or with packaging under the brand of the item manufacturer or
is sold in packaging that lacks identification of a brand, the producer is the person that
manufactures the item;

(ii) if there is no person to which item (i) applies, the producer is the person that is
licensed to manufacture and sell or offer for sale to consumers in this state an item with
packaging under the brand or trademark of another manufacturer or person;

(iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner
of the item;

(iv) if there is no person described in item (i), (ii), or (iii) within the United States, the
producer is the person who is the importer of record for the item into the United States for
use in a commercial enterprise that sells, offers for sale, or distributes the item in this state;
or

(v) if there is no person described in items (i) to (iv), the producer is the person that first
distributes the item in or into this state;

(2) for items sold or distributed in packaging in or into this state via e-commerce, remote
sale, or distribution:

(i) for packaging used to directly protect or contain the item, the producer of the packaging
is the same as the producer identified under clause (1); and

(ii) for packaging used to ship the item to a consumer, the producer of the packaging is
the person that packages the item to be shipped to the consumer;

(3) for packaging that is a covered material and is not included in clauses (1) and (2),
the producer of the packaging is the person that first distributes the item in or into this state;

(4) for paper products that are magazines, catalogs, telephone directories, or similar
publications, the producer is the publisher;

(5) for paper products not described in clause (4):

(i) if the paper product is sold under the manufacturer's own brand, the producer is the
person that manufactures the paper product;

(ii) if there is no person to which item (i) applies, the producer is the person that is the
owner or licensee of a brand or trademark under which the paper product is used in a
commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or
not the trademark is registered in this state;

(iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner
of the paper product;

(iv) if there is no person described in item (i), (ii), or (iii) within the United States, the
producer is the person that imports the paper product into the United States for use in a
commercial enterprise that sells, offers for sale, or distributes the paper product in this state;
or

(v) if there is no person described in items (i) to (iv), the producer is the person that first
distributes the paper product in or into this state; and

(6) a person is the producer of a covered material sold, offered for sale, or distributed
in or into this state, as defined in clauses (1) to (5), except:

(i) where another person has mutually signed an agreement with a producer as defined
in clauses (1) to (5) that contractually assigns responsibility to the person as the producer,
and the person has joined a registered producer responsibility organization as the responsible
producer for that covered material under this act. In the event that another person is assigned
responsibility as the producer under this subdivision, the producer under clauses (1) to (5)
must provide written certification of that contractual agreement to the producer responsibility
organization; and

(ii) if the producer described in clauses (1) to (5) is a business operated wholly or in part
as a franchise, the producer is the franchisor if that franchisor has franchisees that have a
commercial presence within the state.

(b) "Producer" does not include:

(1) government agencies, municipalities, or other political subdivisions of the state;

(2) registered 501(c)(3) charitable organizations and 501(c)(4) social welfare
organizations;

(3) de minimis producers; or

(4) a mill that uses any virgin wood fiber in the products it produces.

Subd. 26.

Producer responsibility organization.

"Producer responsibility organization"
means a nonprofit corporation that is tax exempt under chapter 501(c)(3) of the federal
Internal Revenue Code and that is created by a group of producers to implement activities
under this act.

Subd. 27.

Recycling.

"Recycling" has the meaning given in section 115A.03 except that
recycling does not include reuse or composting, as defined in this act.

Subd. 28.

Recycling rate.

"Recycling rate" means the amount of covered material, in
aggregate or by individual covered materials type, recycled in a calendar year divided by
the total amount of covered materials sold or distributed into the state by the relevant unit
of measurement established in section 115A.1451.

Subd. 29.

Refill.

"Refill" means the continued use of a covered material by a consumer
through a system that is:

(1) intentionally designed and marketed for repeated filling of a covered material to
reduce demand for new production of the covered material;

(2) supported by adequate logistics and infrastructure to provide convenient access for
consumers; and

(3) compliant with all applicable state and local statute, rule, ordinance, or other law
governing health and safety.

Subd. 30.

Responsible market.

"Responsible market" means a materials market that:

(1) reuses, recycles, composts, or otherwise recovers materials and disposes of
contaminants in a manner that protects the environment and minimizes risks to public health
and worker health and safety;

(2) complies with all applicable federal, state, and local statutes, rules, ordinances, or
other laws governing environmental, health, safety, and financial responsibility;

(3) possesses all requisite licenses and permits required by government agencies;

(4) if the market operates in the state, manages waste according to the waste management
goal and priority order of waste management practices stated in section 115A.02; and

(5) minimizes adverse impacts to environmental justice areas.

Subd. 31.

Return rate.

"Return rate" means the amount of reusable covered material in
aggregate or by individual covered materials type, collected for reuse by the producer or
service provider in a calendar year, divided by the total amount of reusable covered materials
sold or distributed into the state by the relevant unit of measurement established in section
115A.1451.

Subd. 32.

Reusable.

"Reusable" means capable of reuse.

Subd. 33.

Reuse.

"Reuse" means the return of a covered material to the marketplace and
the continued use of the covered material by a producer or service provider when the covered
material is:

(1) intentionally designed and marketed to be used multiple times for its original intended
purpose without a change in form;

(2) designed for durability and maintenance to extend its useful life and reduce demand
for new production of the covered material;

(3) supported by adequate logistics and infrastructure at a retail location, by a service
provider, or on behalf of or by a producer, that provides convenient access for consumers;
and

(4) compliant with all applicable state and local statutes, rules, ordinances, or other laws
governing health and safety.

Subd. 34.

Reuse rate.

"Reuse rate" means the share of units of a covered material sold
or distributed into the state in a calendar year that are deemed reusable by the commissioner
according to section 115A.1451.

Subd. 35.

Service provider.

"Service provider" means an entity that collects, transfers,
sorts, processes, recovers, or otherwise prepares covered materials for reuse, recycling, or
composting. A political subdivision that provides or that contracts or otherwise arranges
with another party to provide reuse, collection, recycling, or composting services for covered
materials within its jurisdiction may be a service provider regardless of whether it provided,
contracted for, or otherwise arranged for similar services before the approval of the applicable
stewardship plan.

Subd. 36.

Third-party certification.

"Third-party certification" means certification by
an accredited independent organization that a standard or process required by this act, or a
stewardship plan approved under this act, has been achieved.

Subd. 37.

This act.

"This act" means sections 115A.144 to 115A.1462.

Subd. 38.

Toxic substance.

"Toxic substance" means hazardous waste, a problem
material, a chemical or chemical class regulated under section 115A.965, 116.943, 325F.075,
or 325F.172 to 325F.179, or a chemical of high concern identified under section 116.9402.

Subd. 39.

Waste reduction or source reduction.

"Waste reduction" or "source reduction"
has the meaning given in section 115A.03, except that waste reduction or source reduction
does not include reuse, but does include refill, as defined in this act.

Sec. 3.

[115A.1442] ESTABLISHMENT OF PROGRAM.

Producers must implement and finance a statewide program for packaging and paper
products in accordance with this act that encourages packaging redesign to reduce the
environmental impacts and human health impacts and that reduces generation of covered
materials waste through waste reduction, reuse, recycling, and composting and by providing
for negotiation and execution of agreements to collect, transport, and process used covered
materials for reuse, recycling, and composting.

Sec. 4.

[115A.1443] REGISTRATION OF PRODUCER RESPONSIBILITY
ORGANIZATIONS AND SERVICE PROVIDERS.

Subdivision 1.

Annual registration.

(a) By July 1, 2025, and each January 1 thereafter,
producers must appoint a producer responsibility organization. The producer responsibility
organization must register with the commissioner by July 1, 2026, and each January 1
thereafter by submitting the following:

(1) contact information for a person responsible for implementing an approved
stewardship plan;

(2) a list of all member producers that will operate under the stewardship plan
administered by the producer responsibility organization and, for each producer, a list of
all brands of the producer's covered materials introduced;

(3) copies of written agreements with each producer stating that each producer agrees
to operate under an approved stewardship plan administered by the producer responsibility
organization;

(4) a list of current board members and the executive director if different than the person
responsible for implementing approved stewardship plans; and

(5) documentation demonstrating adequate financial responsibility and financial controls
to ensure proper management of funds and payment of the annual fee required under
subdivision 2.

(b) Following the approval of the initial producer responsibility organization and the
initial stewardship plan, if more than a single producer responsibility organization is
established, the producers and producer responsibility organizations must establish a
coordinating body and process to prevent redundancy. The stewardship plans of all producer
responsibility organizations must be integrated into a single stewardship plan that covers
all requirements of this act and encompasses all producers when submitted to the
commissioner for approval. The annual reports of all producer responsibility organizations
must be integrated into a single annual report that covers all requirements of this act and
encompasses all producers when submitted to the commissioner.

Subd. 2.

Registration fee.

(a) As part of its annual registration with the commissioner,
a producer responsibility organization must submit to the commissioner an annual fee for
the following year, as determined by the commissioner. Beginning October 1, 2026, and
annually thereafter, the commissioner must notify registered producer responsibility
organizations in writing of the amount of the fee for the following year. If there is more
than one registered producer responsibility organization, the coordinating body described
in subdivision 1, paragraph (b), must equitably apportion payment of the annual fee between
all registered producer responsibility organizations. The annual fee must be set at an amount
anticipated to in the aggregate meet but not exceed the commissioner's estimate of the costs
required to perform the commissioner's duties as described in section 115A.1445 and to
otherwise administer, implement, and enforce this act.

(b) The commissioner must reconcile the fees paid by a producer responsibility
organization under this subdivision with the actual costs incurred by the agency on an annual
basis, by means of credits or refunds to or additional payments required of a producer
responsibility organization, as applicable.

Subd. 3.

Initial producer responsibility organization registration; implementation
fee.

(a) By January 1, 2025, producers must appoint a producer responsibility organization.
The producer responsibility organization must register with the commissioner by submitting
the following:

(1) contact information for a person responsible for implementing an approved
stewardship plan;

(2) a list of current member producers and their written agreements confirming producers
will operate under an approved stewardship plan administered by the producer responsibility
organization;

(3) a plan for recruiting additional member producers and executing written agreements
confirming producers will operate under an approved stewardship plan administered by the
producer responsibility organization;

(4) a list of current board members and the executive director if different than the person
responsible for implementing approved stewardship plans; and

(5) documentation demonstrating adequate financial responsibility and financial controls
to ensure proper management of funds and payment of the annual fee required under
subdivision 2.

(b) Notwithstanding the other provisions of this section, the commissioner may not allow
registration of more than one producer responsibility organization under this section before
the first stewardship plan approved by the commissioner expires. If more than one producer
responsibility organization applies to register under this section before the first stewardship
plan is approved by the commissioner, the commissioner must select the producer
responsibility organization that will represent producers until the first stewardship plan
expires and must return the registration fee paid by applicants who are not selected. When
selecting a producer responsibility organization, the commissioner must consider whether
the producer responsibility organization:

(1) has a governing board consisting of producers that represent a diversity of covered
materials introduced; and

(2) demonstrates adequate financial responsibility and financial controls to ensure proper
management of funds.

(c) By January 1, 2025, and annually until the first stewardship plan is approved, the
commissioner must provide written notice to the initial producer responsibility organization
appointed by producers of the commissioner's estimate of the cost of conducting the
preliminary needs assessment, initial needs assessment, and the commissioner's costs to
administer this act during the period prior to plan approval. The producer responsibility
organization must remit payment in full for these costs to the commissioner within 45 days
of receipt of this notice. The producer responsibility organization may charge each member
producer to cover the cost of its implementation fee according to each producer's unit-,
weight-, volume-, or sales-based market share or by another method it determines to be an
equitable determination of each producer's payment obligation.

Subd. 4.

Requirement for additional producer responsibility organizations.

After
the first stewardship plan approved by the commissioner expires, the commissioner may
allow registration of more than one producer responsibility organization if:

(1) producers of a covered materials type or a specific covered material appoint a producer
responsibility organization; or

(2) producers organize under additional producer responsibility organizations that meet
the criteria established in subdivision 3, paragraph (a).

Subd. 5.

Registration of service providers.

(a) By January 1, 2027, and annually
thereafter, a service provider seeking reimbursement for services provided under an approved
stewardship plan according to section 115A.1451 may elect to register with the commissioner
by submitting the following information:

(1) contact information for a person representing the service provider; and

(2) address of the service provider.

(b) A service provider may register at any time.

Sec. 5.

[115A.1444] ESTABLISHMENT OF PRODUCER RESPONSIBILITY
ADVISORY BOARD.

Subdivision 1.

Establishment.

The Producer Responsibility Advisory Board is established
to review all activities conducted by producer responsibility organizations under this act
and to advise the commissioner and producer responsibility organizations regarding the
implementation of this act.

Subd. 2.

Membership.

(a) The membership of the advisory board consists of persons
appointed by the commissioner by January 1, 2025, as follows:

(1) two members representing manufacturers of covered materials or a statewide or
national trade association representing those manufacturers;

(2) two members representing recycling facilities that manage covered materials;

(3) one member representing a waste hauler or a statewide association representing waste
haulers;

(4) one member representing retailers of covered materials or a statewide trade association
representing those retailers;

(5) one member representing a statewide nonprofit environmental organization;

(6) one member representing a community-based nonprofit environmental justice
organization;

(7) one member representing a waste facility that receives and sorts covered materials
and transfers them to another facility for reuse, recycling, or composting;

(8) one member representing a waste facility that receives compostable materials for
composting or a statewide trade association that represents such facilities;

(9) two members representing an entity that develops or offers for sale covered materials
that are designed for reuse and maintained through a reuse system or infrastructure or a
statewide or national trade association that represents such entities;

(10) three members representing organizations of political subdivisions, with at least
one member representing a political subdivision outside the metropolitan area;

(11) two members representing other stakeholders or additional members of interests
represented under clauses (1) to (10) as determined by the commissioner; and

(12) one member representing the commissioner.

(b) In making appointments under paragraph (a), the commissioner:

(1) may not appoint members who are state legislators or registered lobbyists;

(2) may not appoint members who are employees of a producer required to be members
of a producer responsibility organization in this state under this act; and

(3) must endeavor to appoint members from all regions of the state.

Subd. 3.

Terms; removal.

A member of the advisory board appointed under subdivision
2, paragraph (a), clause (12), serves at the pleasure of the commissioner. All other members
serve for a term of four years, except that the initial term for nine of the initial appointees
must be two years so that membership terms are staggered. Members may be reappointed
but may not serve more than eight consecutive years. Removing members and filling of
vacancies is governed by section 15.059, subdivision 4. Except as otherwise provided,
chapter 15 does not apply to the board.

Subd. 4.

Compensation.

Members of the board must be compensated according to
section 15.059, subdivision 3.

Subd. 5.

Quorum.

A majority of the voting board members constitutes a quorum. If
there is a vacancy in the membership of the board, a majority of the remaining voting
members of the board constitutes a quorum.

Subd. 6.

Voting.

Action by the advisory board requires a quorum and a majority of those
present and voting. All members of the advisory board, except the member appointed under
subdivision 2, paragraph (a), clause (12), are voting members of the board.

Subd. 7.

Meetings.

The advisory board must meet at least two times per year and may
meet more frequently upon ten days' written notice at the request of the chair or a majority
of its members.

Subd. 8.

Open meetings.

Meetings of the board must comply with chapter 13D.

Subd. 9.

Chair.

At its initial meeting, and every two years thereafter, the advisory board
must elect a chair and vice-chair from among its members.

Subd. 10.

Administrative and operating support.

The commissioner must provide
administrative and operating support to the advisory board and may contract with a third-party
facilitator to assist in administering the activities of the advisory board, including establishing
a website or landing page on the agency website.

Subd. 11.

Conflict of interest policies.

The commissioner must assist the advisory board
in developing policies and procedures governing the disclosure of actual or perceived
conflicts of interest that advisory board members may have as a result of their employment
or financial holdings of themselves or of family members. Each advisory board member is
responsible for reviewing the conflict of interest policies and procedures. An advisory board
member must disclose any instance of actual or perceived conflicts of interest at each meeting
of the advisory board at which recommendations regarding stewardship plans, programs,
operations, or activities are made by the advisory board.

Sec. 6.

[115A.1445] COMMISSIONER RESPONSIBILITIES.

The commissioner must:

(1) appoint the initial membership of the advisory board by January 1, 2025, according
to section 115A.1444;

(2) provide administrative and operating support to the advisory board, as required by
section 115A.1444, subdivision 10;

(3) complete a preliminary needs assessment by December 31, 2025, and an initial needs
assessment by December 31, 2026, and update the needs assessment every five years
thereafter, according to section 115A.1450;

(4) approve stewardship plans and amendments to stewardship plans according to section
115A.1451;

(5) provide lists established according to the requirements of section 115A.1453 to all
producer responsibility organizations by March 1, 2027;

(6) establish or approve requirements according to section 115A.1451, subdivision 7;

(7) post on the agency's website:

(i) the most recent registration materials submitted by producer responsibility
organizations, including all information submitted under section 115A.1443, subdivision
1;

(ii) a list of registered service providers;

(iii) the most recent needs assessments;

(iv) any stewardship plan or amendment submitted by a producer responsibility
organization under section 115A.1451 that is in draft form during the public comment
period;

(v) the most recent lists established according to section 115A.1453;

(vi) the list of exempt materials and covered materials exempt from performance targets
and statewide requirements as approved in the stewardship plan;

(vii) links to producer responsibility organization websites;

(viii) comments of the public, advisory board, and producer responsibility organizations
on the documents listed in items (iii), (iv), (v), and (ix), and the responses of the
commissioner to those comments; and

(ix) links to adopted rules implementing this act;

(8) provide producer responsibility organizations with information regarding Minnesota
and federal laws that prohibit toxic substances in covered materials;

(9) require each producer responsibility organization to secure an independent auditor
to perform an annual financial audit of program operations and approve the selection of
each auditor; and

(10) consider and respond in writing to all written comments received from the advisory
board.

Sec. 7.

[115A.1446] PRODUCER RESPONSIBILITY ADVISORY BOARD
RESPONSIBILITIES.

The Producer Responsibility Advisory Board must:

(1) convene its initial meeting by March 1, 2025;

(2) consult with the commissioner regarding the scope of the needs assessments and to
provide written comments on needs assessments, according to section 115A.1450, subdivision
2;

(3) advise on the development of stewardship plans and amendments to stewardship
plans under section 115A.1451;

(4) submit comments to producer responsibility organizations and to the commissioner
on any matter relevant to the administration of this act; and

(5) provide written comments to the commissioner during any rulemaking process
undertaken by the commissioner under section 115A.1459.

Sec. 8.

[115A.1447] PRODUCER RESPONSIBILITY ORGANIZATION
RESPONSIBILITIES.

A producer responsibility organization must:

(1) annually register with the commissioner, according to section 115A.1443;

(2) submit a stewardship plan to the commissioner by March 1, 2027, and every five
years thereafter, according to section 115A.1451;

(3) implement stewardship plans approved by the commissioner under section 115A.1451
and to comply with the requirements of this act;

(4) forward upon receipt from the commissioner the lists established according to section
115A.1453 to all service providers that participate in a stewardship plan administered by
the producer responsibility organization;

(5) collect producer fees according to section 115A.1454;

(6) submit the reports required by section 115A.1456;

(7) ensure that producers operating under a stewardship plan administered by the producer
responsibility organization comply with the requirements of the stewardship plan and with
this act;

(8) expel a producer from the producer responsibility organization if efforts to return
the producer to compliance with the plan or with the requirements of this act are unsuccessful.
The producer responsibility organization must notify the commissioner when a producer
has been expelled under this clause;

(9) consider and respond in writing to comments received from the advisory board,
including justifications for not incorporating any recommendations;

(10) provide producers with information regarding state and federal laws that prohibit
substances in covered materials, including sections 115A.965, 116.943, 325F.075, 325F.172
to 325F.179, and all laws prohibiting toxic substances in covered materials;

(11) maintain a website according to section 115A.1457;

(12) notify the commissioner within 30 days if a change is made to the contact information
for a person responsible for implementing the stewardship plan, a change to the board
members, or a change to the executive director;

(13) assist service providers in identifying and using responsible markets;

(14) reimburse service providers in a timely manner and according to reimbursement
rates approved in a stewardship plan as established according to section 115A.1451; and

(15) comply with all other applicable requirements of this act.

Sec. 9.

[115A.1448] PRODUCER RESPONSIBILITIES.

Subdivision 1.

Registration required; prohibition of sale.

(a) After January 1, 2025,
a producer must be a member of a producer responsibility organization registered in this
state.

(b) After January 1, 2029, no producer may introduce covered materials, either separately
or when used to package another product, unless the producer operates under a written
agreement with a producer responsibility organization to operate under an approved
stewardship plan.

(c) After January 1, 2032, no producer may introduce covered materials unless the
covered materials are:

(1) reusable and capable of being managed through a reuse system that meets the reuse
rate and return rate required under section 115A.1451, subdivision 7;

(2) capable of refill and supported by a refill system;

(3) included on the list established under section 115A.1453, subdivision 1; or

(4) included on the list established under section 115A.1453, subdivision 2.

(d) A producer responsibility organization may petition the commissioner for a two-year
extension to comply with the requirements of paragraph (c). The commissioner may approve
the extension if the petition demonstrates that the market or technical issues prevent a
covered material from being considered reusable or included in the lists established under
section 115A.1453. The producer responsibility organization may petition the commissioner
for additional extensions in annual increments until January 1, 2040, if the producer
responsibility organization demonstrates that market or technical issues persist.

Subd. 2.

Duties.

A producer must:

(1) implement the requirements of the stewardship plan under which the producer
operates;

(2) pay producer fees according to section 115A.1454; and

(3) comply with all other applicable requirements of this act.

Sec. 10.

[115A.1449] SERVICE PROVIDER RESPONSIBILITIES.

A service provider receiving reimbursement or funding under an approved stewardship
plan must:

(1) ensure the collection, transportation, and management of covered materials generated
in the state pursuant to the lists established under section 115A.1453 or covered materials
that are capable of refill or reuse;

(2) register with the commissioner and submit invoices to the producer responsibility
organization for reimbursement for services rendered;

(3) meet performance standards established in an approved stewardship plan under
section 115A.1451;

(4) ensure that covered materials are sent to responsible markets;

(5) provide documentation to the producer responsibility organization on the amounts,
covered materials types, and volumes of covered materials collected, transported, and
managed for recycling, composting, or reuse; and

(6) comply with all other applicable requirements of this act.

Sec. 11.

[115A.1450] NEEDS ASSESSMENTS.

Subdivision 1.

Needs assessments required.

(a) By December 31, 2025, and every five
years thereafter, the commissioner must complete a preliminary needs assessment according
to this section.

(b) By December 31, 2026, and every five years thereafter, the commissioner must
complete a statewide needs assessment according to this section. The commissioner may
adjust what is required to be included in a specific needs assessment to inform the next
stewardship plan.

Subd. 2.

Input from interested parties.

In conducting a needs assessment, the
commissioner must:

(1) initiate a consultation process to obtain recommendations from the advisory board,
political subdivisions, service providers, producer responsibility organizations, and other
interested parties regarding the type and scope of information that should be collected and
analyzed in the statewide needs assessment required by this section;

(2) contract with a third party who is not a producer or a producer responsibility
organization to conduct the needs assessment; and

(3) prior to finalizing the needs assessment, make the draft needs assessment available
for comment by the advisory board, producer responsibility organizations, and the public.
The commissioner must respond in writing to the comments and recommendations of the
advisory board and producer responsibility organizations.

Subd. 3.

Content of preliminary needs assessment.

A preliminary needs assessment
must be completed for a preceding period of no less than 12 months and no more than 36
months, that includes:

(1) tons of collected covered materials;

(2) recycling and composting program characteristics, including a description of
single-stream and dual-stream recycling systems used in the state and prevalence of use,
average frequency of collection of covered materials for recycling and composting, types
of collection containers used, and commonly accepted materials for recycling and
composting;

(3) total number and types of single-family and multifamily households and residential
properties receiving recycling and composting collection services;

(4) processing capacity at recycling facilities, including total tons processed and number
of bales created, the range of material composition and bales produced, and current
technologies utilized;

(5) size and number of depot, container, or drop-off locations;

(6) size and number of transfer stations and transfer locations;

(7) average term length of residential recycling and composting collection contracts
issued by political subdivisions and an assessment of contract cost structures;

(8) average recycling facility processing fees charged to collectors delivering covered
materials for recycling;

(9) available markets in the state for covered materials and the capacity of those markets;
and

(10) covered materials sales by volume, weight, and material types introduced by
producers.

Subd. 4.

Content of needs assessment.

A needs assessment must include at least the
following:

(1) an evaluation of the performance of:

(i) existing waste reduction, reuse, recycling, and composting efforts for each covered
materials type, as applicable, including collection rates, recycling rates, composting rates,
reuse rates, and return rates for each covered materials type;

(ii) overall recycling rate, composting rate, reuse rate, and return rate for all covered
materials; and

(iii) the extent to which postconsumer recycled content, by the best estimate, is or could
be incorporated into each covered materials type, as applicable;

(2) an evaluation of a representative sample of management of covered materials with
mixed municipal solid waste, as source-separated recyclable materials, and as
source-separated compostable materials as received by waste management, recycling, and
composting facilities in the state, and relevant findings from any publicly available waste
stream evaluations conducted within the previous year, to evaluate the amount and portion
of covered materials being disposed of that would otherwise be recyclable or compostable;

(3) proposals for a range of outcomes for each covered materials type to be accomplished
within a five-year time frame in multiple units of measurement, including but not limited
to unit-based, weight-based, and volume-based, for each of the following:

(i) waste reduction;

(ii) reuse rate and return rates;

(iii) recycling rates;

(iv) composting rates; and

(v) postconsumer recycled content, if applicable;

(4) proposals for a range of outcomes for the categories established in section 115A.1451,
subdivision 7, that consider:

(i) information contained in or used to prepare a needs assessment according to this
subdivision;

(ii) goals and requirements of the Waste Management Act under this chapter;

(iii) statewide goals for greenhouse gas emission reductions under section 216H.02;

(iv) need for continuous progress toward generating less waste from covered materials
and the complete reuse, recycling, or composting of the covered materials that are generated,
in doing so reducing impacts to human health and the environment;

(v) a preference for statewide requirements that accomplish and further the goals and
requirements in clauses (2) to (4) as soon as practicable and to the maximum extent
achievable; and

(vi) information from packaging and paper producer responsibility programs operating
in other jurisdictions;

(5) an evaluation of the following factors for each covered material collected for recycling
or composting:

(i) availability of recycling and composting collection services;

(ii) recycling and composting processing infrastructure;

(iii) capacity and technology for sorting covered materials;

(iv) availability of responsible end markets;

(v) presence and amount of processing residuals, contamination, and toxic substances;

(vi) quantity of material estimated to be available and recoverable;

(vii) projected future conditions for items (i) to (vi); and

(viii) other criteria or factors determined by the commissioner;

(6) recommended collection methods by covered materials type to maximize collection
efficiency, feedstock quality, level of service, and convenience for collection of covered
materials included on lists established in section 115A.1453;

(7) proposed plans and metrics for how to measure progress in achieving performance
targets and statewide requirements;

(8) an evaluation of options for third-party certification of activities to meet obligations
of this act;

(9) an inventory of the current system including:

(i) infrastructure, capacity, performance, funding level, and method and sources of
financing for the existing waste reduction, reuse, collection, transportation, processing,
recycling, and composting systems for covered materials operating in the state;

(ii) an estimate of total annual collection and processing service costs based on registered
service provider costs; and

(iii) availability and cost of waste reduction, reuse, recycling, and composting services
for covered materials at single-family residences, at multifamily residences, and in public
places where political subdivisions arrange for collection of recyclable or compostable
materials, including identification of disparities in the availability of these services in
environmental justice areas compared with other areas and proposals for reducing or
eliminating those disparities;

(10) an evaluation of investments needed to increase waste reduction, reuse, recycling,
and composting rates of covered materials according to the range of proposed performance
targets and statewide requirements including investments that would:

(i) maintain or improve operations of existing infrastructure and accounts for waste
reduction, reuse, recycling, and composting of covered materials;

(ii) expand the availability and accessibility of recycling collection services for recyclable
covered materials to all residents of the state at an equivalent level of service and convenience
as collection services for mixed municipal solid waste; and

(iii) establish and expand the availability and accessibility of reuse services for reusable
covered materials;

(11) a recommended methodology for applying criteria and formulas to establish
reimbursement rates as described in section 115A.1455;

(12) an assessment of the viability and robustness of markets for recyclable covered
materials and the degree to which these markets can be considered responsible markets;

(13) an assessment of the level and causes of contamination of source-separated recyclable
materials, source-separated compostable materials and collected reusables, and the impacts
of contamination on service providers, including the cost to manage this contamination;

(14) an assessment of what toxic substances might be intentionally added to covered
materials and best practices to eliminate or mitigate their use or presence in covered materials;

(15) an assessment of current best practices to increase public awareness, educate, and
complete outreach activities accounting for culturally responsive materials and methods
and an evaluation of the efficacy of these efforts including assessments and evaluations of
current best practices and efforts on:

(i) using product labels as a means of informing consumers about environmentally sound
use and management of covered materials;

(ii) increasing public awareness of how to use and manage covered materials in an
environmentally sound manner and how to access waste reduction, reuse, recycling, and
composting services; and

(iii) encouraging behavior change to increase participation in waste reduction, reuse,
recycling, and composting programs;

(16) identification of the covered materials with the most significant environmental
impact, including assessing each covered material's generation of hazardous waste, generation
of greenhouse gases, environmental justice impacts, public health impacts, and other impacts;
and

(17) other items identified by the commissioner that would aid the creation of the
stewardship plan, its administration, and the enforcement of this act.

Subd. 5.

Needs assessment as baseline.

When determining the extent to which any
statewide requirement or performance target under this act has been achieved, information
contained in a needs assessment must serve as the baseline for that determination, when
applicable.

Subd. 6.

Participation required.

(a) A service provider or other person with data or
information necessary to complete a needs assessment must provide the data or information
to the commissioner upon request. A service provider or other person who does not want
to be identified with information submitted to the commissioner under this subdivision may
request to proceed under a nondisclosure agreement. A nondisclosure agreement is limited
to the items under section 115A.06, subdivision 13. Once a request is made, the requestor,
the commissioner, and all third parties participating in the completion of the needs assessment
in whatever capacity must enter into a nondisclosure agreement. Once these parties have
entered into a nondisclosure agreement, the requestor must submit the necessary data or
information to the contractor selected by the commissioner according to subdivision 2, who
must aggregate and anonymize the data or information, excluding location data necessary
to assess needs, received from all parties proceeding under a nondisclosure agreement under
this subdivision and must then submit the aggregated anonymized information to the
commissioner or to the party or parties contracted to complete the needs assessment, including
assessing each covered material's generation of hazardous waste, generation of greenhouse
gases, environmental justice impacts, public health impacts, and other impacts.

(b) The commissioner, any employee of the agency, or any agent thereof, when authorized
by the commissioner, may enter upon any property, public or private, for the purpose of
obtaining information necessary for completing the evaluation in subdivision 3, clause (2).

Sec. 12.

[115A.1451] STEWARDSHIP PLAN.

Subdivision 1.

Stewardship plan required.

By March 1, 2027, and every five years
thereafter, a producer responsibility organization must submit a stewardship plan to the
commissioner that describes the proposed operation by the organization of programs to
fulfill the requirements of this act and that incorporates the findings and results of needs
assessments. Once approved, a stewardship plan remains in effect for five years, as amended,
or until a subsequent stewardship plan is approved.

Subd. 2.

Advisory board review of draft plan and amendments.

A producer
responsibility organization must submit a draft stewardship plan or draft amendment to the
advisory board at least 60 days prior to submitting the draft plan or draft amendment to the
commissioner to allow the advisory board to submit comments and must address advisory
board comments and recommendations prior to submission of the draft plan or draft
amendment to the commissioner.

Subd. 3.

Content of stewardship plans.

A proposed stewardship plan must include at
least the following:

(1) performance targets as applicable to each covered materials type to be accomplished
within a five-year period, established in subdivision 5, paragraph (a);

(2) a description of the anticipated method of collection, how reimbursements will
support a level of convenience for collection, service convenience metrics, processing
infrastructure and management methods to be used for each covered materials type, and
how these will meet the statewide requirements established in subdivision 7 for covered
materials:

(i) included on the list established in section 115A.1453, subdivision 1;

(ii) included on the list established in section 115A.1453, subdivision 2;

(iii) that are reusable covered materials managed through a reuse system; and

(iv) that are capable of refill and managed through a system of waste reduction.

(3) proposals for exemptions from performance targets and statewide requirements for
covered materials that cannot be waste reduced or made reusable, recyclable, or compostable
due to federal or state health and safety requirements, identifying the specific federal or
state requirements and their impact on the covered materials;

(4) a plan for how the producer responsibility organization will measure recycling, waste
reduction, reuse, composting, and inclusion of postconsumer recycled content, according
to subdivision 6 and by covered materials type as applicable;

(5) third-party certifications as required by the commissioner or voluntarily undertaken;

(6) a budget identifying funding needs for each of the five calendar years covered by
the plan, producer fees, a description of the process used to calculate the fees, and an
explanation of how the fees meet the requirements of section 115A.1454;

(7) goals for infrastructure investments, including a description of how the process to
offer and select opportunities will be conducted in an open, competitive, and fair manner;
how it will address gaps in the system not met by service providers; and potential financial
and legal instruments to be used;

(8) an explanation of how the program will be paid for by the producer responsibility
organization through fees from producers, without any new or additional consumer-facing
fee to members of the public, businesses, service providers, the state or any political
subdivisions, or any other person who is not a producer, unless the fee is:

(i) a deposit made in connection with a product's refill, reuse, or recycling that can be
redeemed by a consumer; or

(ii) a charge for service by a service provider, regardless of whether registered;

(9) a description of activities to be undertaken during the next five calendar years, which
must at a minimum describe how the producer responsibility organization, acting on behalf
of producers, will:

(i) minimize the environmental impacts and human health impacts of covered materials,
including assessing each covered material's generation of hazardous waste, generation of
greenhouse gases, environmental justice impacts, public health impacts, and other impacts;

(ii) incorporate as program objectives the improved design of covered materials according
to section 115A.1454, subdivision 1, clause (2);

(iii) provide funding to expand and increase the convenience of waste reduction, reuse,
collection, recycling, and composting services according to the order of the waste
management hierarchy under section 115A.02;

(iv) provide for reasonable reimbursement rates for statewide coverage of recycling
services for covered materials on the lists established in section 115A.1453 to single-family
residences, multifamily residences, and political subdivisions arranging for collection,
transportation, and processing of recyclable materials at an equivalent level of convenience
as services for mixed municipal solid waste according to section 115A.1455; and

(v) monitor to ensure that postconsumer recycled materials are delivered to responsible
markets;

(10) a description of how the producer responsibility organization will promote the
opportunity for all service providers to register with the commissioner and to submit for
reimbursement with the producer responsibility organization;

(11) a description of how the program shall reimburse service providers under an
approved stewardship plan, including but not limited to:

(i) the use of differentiated rates developed according to the requirements and factors
established under section 115A.1455, subdivision 4;

(ii) clear and reasonable timelines for reimbursement, with a frequency of no less than
monthly unless agreed to by a service provider and a producer responsibility organization;
and

(iii) a process to resolve disputes that arise between the producer responsibility
organization and a service provider regarding the determination and payment of
reimbursements;

(12) performance standards for service providers that are reimbursed under an approved
stewardship plan, including but not limited to the following, as applicable to the service
provided:

(i) requirements that service providers must accept all covered materials on the lists
established by the commissioner under section 115A.1453; and

(ii) labor standards and safety practices, including but not limited to safety programs,
health benefits, and living wages;

(13) a description of how the producer responsibility organization will treat and protect
nonpublic data submitted by service providers;

(14) a description of how the producer responsibility organization will provide technical
assistance to:

(i) service providers in order to deliver covered materials to responsible markets;

(ii) producers regarding toxic substances in covered materials and actions producers can
take to reduce intentionally added toxic substances in covered materials, including verification
by suppliers through certificates of compliance, upon request; and

(iii) producers to make changes in product design that reduce the environmental impact
of covered materials or that increase the recoverability or marketability of covered materials
for reuse, recycling, or composting;

(15) a description of how the producer responsibility organization will increase public
awareness, educate, and complete outreach activities accounting for culturally responsive
materials and methods and evaluate the efficacy of these efforts including how the producer
responsibility organization will:

(i) assist producers in improving product labels as a means of informing consumers
about refilling, reusing, recycling, composting, and other environmentally sound methods
of managing covered materials;

(ii) increase public awareness of how to use and manage covered materials in an
environmentally sound manner and how to access waste reduction, reuse, recycling, and
composting services; and

(iii) encourage behavior change to increase participation in waste reduction, reuse,
recycling, and composting programs;

(16) a summary of consultations held with the advisory board and other stakeholders to
provide input to the stewardship plan, a list of recommendations that were incorporated into
the stewardship plan as a result, and a list of rejected recommendations and the reasons for
rejection; and

(17) strategies to incorporate findings from any relevant studies required by the
legislature.

Subd. 4.

Plan and amendment review and approval procedure.

(a) The commissioner
must review and approve, deny, or request additional information for a draft stewardship
plan or a draft plan amendment no later than 120 days after the date the commissioner
receives it from a producer responsibility organization. The commissioner must post the
draft plan or draft amendment on the agency's website and allow public comment for no
less than 45 days before approving, denying, or requesting additional information on the
draft plan or draft amendment.

(b) If the commissioner denies, or requests additional information for, a draft plan or
draft amendment, the commissioner must provide the producer responsibility organization
with the reasons, in writing, that the plan or plan amendment does not meet the plan
requirements of subdivision 3. The producer responsibility organization shall have 60 days
from the date that the rejection or request for additional information is received to submit
to the commissioner any additional information necessary for the approval of the draft plan
or draft amendment. The commissioner shall review and approve or disapprove the revised
draft plan or draft amendment no later than 60 days after the date the commissioner receives
it.

(c) A producer responsibility organization may resubmit a draft plan or draft amendment
to the commissioner on not more than two occasions. If after the second resubmission, the
commissioner determines that the draft plan or draft amendment does not meet the plan
requirements of this act, the commissioner must modify the draft plan or draft amendment
as necessary for it to meet the requirements of this act and approve it.

(d) Upon recommendation by the advisory board, or upon the commissioner's own
initiative, the commissioner may require an amendment to a stewardship plan if the
commissioner determines that an amendment is necessary to ensure that the producer
responsibility organization maintains compliance with the requirements of this act.

Subd. 5.

Performance targets.

(a) The producer responsibility organization must propose
performance targets based on the needs assessment that meet the statewide requirements in
subdivision 7 that must be included in a stewardship plan approved under this section.
Performance targets must include reuse rates, return rates, recycling rates, composting rates,
and targets for waste reduction, and postconsumer recycled content by covered materials
type that are to be achieved by the end of the stewardship plan's term. The producer
responsibility organization must select the unit that is most appropriate to measure each
performance target as informed by the needs assessment.

(b) The commissioner may require that a producer responsibility organization obtain
third-party certification of any activity or achievement of any standard required by this act.
The commissioner must provide a producer responsibility organization with notice of at
least one year prior to requiring use of third-party certification under this paragraph if such
certifications are readily available, applicable, and of reasonable cost.

(c) Proposed performance targets must demonstrate continuous improvement in reducing
environmental impacts and human health impacts of covered materials over time.

Subd. 6.

Measurement criteria for performance targets.

(a) For purposes of
determining whether recycling performance targets are being met, except as modified by
the commissioner, a stewardship plan must provide for the measurement of the amount of
recycled material to be at the point at which material leaves a recycling facility and must
account for:

(1) levels of estimated contamination documented by the facility;

(2) any exclusions for fuel or energy capture; and

(3) compliance with sections 115A.965, 116.943, 325F.075, and 325F.172 to 325F.179,
and all other laws pertaining to toxic substances in covered materials.

(b) For purposes of determining whether waste reduction performance targets are being
met, a stewardship plan must provide for the measurement of the amount of waste reduction
of covered materials in a manner that can determine the extent to which the amount of
material used for a covered material is eliminated beyond what is necessary to efficiently
deliver a product without damage or spoilage, or other means of covered material redesign
to reduce overall use and environmental impacts.

(c) For purposes of determining whether reuse targets are being met, a stewardship plan
must provide for the measurement of the amount of reusable covered materials to be at the
point at which reusable covered materials meet the following criteria as demonstrated by
the producer and approved by the commissioner:

(1) whether the average minimum number of cycles of reuses within a recognized reuse
system has been met based on the number of times an item must be reused for it to have
lower environmental impacts than the single-use versions of those items; and

(2) whether the demonstrated or research-based anticipated return rate of the covered
material to the reuse system has been met.

(d) For other targets, the producer responsibility organization must propose a calculation
point for review and approval as part of the stewardship plan based on findings from the
needs assessment.

Subd. 7.

Statewide requirements.

(a) The commissioner must establish or approve
statewide requirements and the date the statewide requirements must be met for the following
categories:

(1) recycling rate;

(2) composting rate;

(3) reuse rate;

(4) return rate;

(5) the percentage of covered materials introduced that must be waste reduced; and

(6) the percentage of postconsumer recycled content that covered materials introduced
must contain, including an overall percentage for all covered materials, as applicable,
excluding compostable materials that cannot include postconsumer recycled content because
unique chemical or physical properties or health and safety requirements prohibit introduction
of postconsumer recycled content.

(b) The commissioner may use the following information and criteria when establishing
statewide requirements under paragraph (a):

(1) needs assessments under section 115A.1450;

(2) goals and requirements of the Waste Management Act under this chapter;

(3) statewide goals for greenhouse gas emission reductions under section 216H.02;

(4) need for continuous progress toward generating less waste from covered materials
and the complete reuse, recycling, or composting of the covered materials that are generated,
in doing so reducing impacts to human health and the environment;

(5) a preference for statewide requirements that accomplish and further the goals and
requirements in clauses (2) to (4) as soon as practicable and to the maximum extent
achievable; and

(6) information from packaging and paper producer responsibility programs operating
in other jurisdictions.

(c) The commissioner must consult with the product stewardship organization on the
proposed statewide requirements and must submit proposed statewide requirements under
paragraph (a) to the advisory board and consider the board's recommendations before
finalizing the statewide requirements.

(d) Every five years, the commissioner must review the statewide requirements established
under paragraph (a). If the commissioner decides an update is not warranted at that time,
the commissioner must submit the reasoning to the advisory board and consider the board's
recommendations before making a final decision. If the commissioner decides an update is
warranted, the process in paragraphs (b) and (c) must be utilized.

(e) The producer responsibility organization must ensure the statewide requirements are
met.

Sec. 13.

[115A.1453] RECYCLABLE OR COMPOSTABLE COVERED
MATERIALS LISTS.

Subdivision 1.

List required.

By March 1, 2027, the commissioner must complete a
list of covered materials determined to be recyclable or compostable statewide through
systems where covered materials are commingled into a recyclables stream and a separate
compostables stream. These covered materials must be collected at the equivalent level of
service and convenience as collection services for mixed municipal solid waste.

Subd. 2.

Alternative collection list required.

By March 1, 2027, the commissioner
must complete a list of covered materials determined to be recyclable or compostable and
collected statewide through systems other than the system required for covered materials
on the list established in subdivision 1.

Subd. 3.

Input from interested parties.

The commissioner must consult with the
advisory board, producer responsibility organizations, service providers, political
subdivisions, and other interested parties to develop or amend the recyclable or compostable
covered materials lists and must review any petitions by interested parties for addition or
removal of covered materials from the lists created under this section.

Subd. 4.

Criteria.

In developing the lists under subdivisions 1 and 2, the commissioner
may consider the following criteria:

(1) current availability of recycling collection services;

(2) recycling collection and processing infrastructure;

(3) capacity and technology for sorting covered materials;

(4) availability of responsible end markets;

(5) presence and amount of processing residuals and contamination;

(6) quantity of material estimated to be available and recoverable;

(7) projected future conditions for clauses (1) to (6);

(8) if collected for recycling, the covered material type and form must be one that is
regularly sorted and aggregated into defined streams for recycling processes or the packaging
format must be specified in a relevant Institution of Scrap Recycling Industries specification;
and

(9) other criteria or factors determined by the commissioner.

Subd. 5.

Amendment.

The commissioner may amend a list completed under this section
at any time and must provide amended lists to producer responsibility organizations as soon
as possible after adopting an amendment. Producer responsibility organizations must provide
amended lists to service providers as soon as possible after receiving the amendment and
work to incorporate changes in relevant service provider reimbursement rates within a year.

Sec. 14.

[115A.1454] PRODUCER FEES.

Subdivision 1.

Annual fee.

A producer responsibility organization must annually collect
a fee from each producer that must:

(1) be based on the total amount of covered materials each producer introduces in the
prior year calculated on a per-unit basis, such as per ton, per item, or another unit of
measurement;

(2) incentivize using materials and design attributes that reduce the environmental impacts
and human health impacts, as determined by the commissioner, of covered materials by the
following methods:

(i) eliminating intentionally added toxic substances in covered materials;

(ii) reducing the amount of packaging per individual covered material that is necessary
to efficiently deliver a product without damage or spoilage without reducing its ability to
be recycled or reducing the amount of paper used to manufacture individual paper products;

(iii) increasing covered materials managed in a reuse system;

(iv) increasing the proportion of postconsumer material in covered materials;

(v) enhancing recyclability or compostability of a covered material; and

(vi) increasing the amount of inputs derived from renewable and sustainable sources;

(3) discourage using materials and design attributes in a producer's covered materials
whose environmental impacts and human health impacts, as determined by the commissioner,
can be reduced by the methods listed under clause (2);

(4) prioritize reuse by charging covered materials that are managed through a reuse
system only once, upon initial entry into the marketplace; and

(5) generate revenue sufficient to pay in full:

(i) the annual registration fee required under section 115A.1443;

(ii) financial obligations to complete activities described in an approved stewardship
plan and to reimburse service providers under section 115A.1455;

(iii) the operating costs of the producer responsibility organization; and

(iv) for the establishment and maintenance of a financial reserve that is sufficient to
operate the program in a fiscally prudent and responsible manner.

Subd. 2.

Overcollections.

Revenue collected under this section that exceeds the amount
needed to pay the costs described in subdivision 1, clause (5), must be used to improve or
enhance program outcomes or to reduce producer fees according to provisions of an approved
stewardship plan.

Subd. 3.

Prohibited conduct.

Fees collected under this section may not be used for
lobbying, as defined in section 3.084, subdivision 1.

Sec. 15.

[115A.1455] SERVICE PROVIDER; REIMBURSEMENT.

Subdivision 1.

Service provider reimbursement required.

The reimbursements
provided for waste reduction, reuse, processing, recycling, or composting services under
an approved stewardship plan shall only be provided to service providers that meet the
performance standards requirements established under an approved stewardship plan.

Subd. 2.

Collection of recyclables.

If a household does not have access to collection
services at a comparable level of convenience as collection services for mixed municipal
solid waste for covered materials on the recyclable covered materials list established under
section 115A.1453, subdivision 1, the producer responsibility organization must ensure that
collection service is available to the household through a service provider.

Subd. 3.

Bidding processes.

(a) For infrastructure investments included under an
approved stewardship plan, a producer responsibility organization must use the competitive
bidding processes established in section 16C.28, subdivision 1, and publicly post bid
opportunities, except that preference must be given to existing facilities, providers of services,
and holders of service accounts in the state for waste reduction, reuse, collection, recycling,
and composting of covered materials.

(b) No producer or producer responsibility organization may own or partially own
infrastructure that is used to fulfill obligations under this act except in the following
circumstances:

(1) a producer may hold an ownership stake in infrastructure used to fulfill obligations
under this act so long as the stake was held prior to enactment of this act and said ownership
stake is fully disclosed by the producer to the producer responsibility organization; or

(2) if, after a bidding process described in paragraph (a), no service provider bids on the
contract, the producer responsibility organization may make infrastructure investments
identified under an approved stewardship plan to implement the requirements in this act.

Subd. 4.

Reimbursement rates.

(a) An approved stewardship plan must provide
reimbursement rates for services, collection, transportation, and management of covered
materials, exclusive of exempt materials, and incorporate relevant cost information identified
by the initial needs assessment. Reimbursement rates shall be established equivalent to 50
percent of the cost per ton by July 1, 2027, 75 percent of the cost per ton by July 1, 2028,
and 90 percent of the cost per ton by July 1, 2029, and each year thereafter and varied per
ton, as follows:

(1) a fixed amount for each ton of covered material collected by a service provider that
reflects conditions that affect collection, recycling, and composting costs in the region or
jurisdiction in which the services are provided, including but not limited to:

(i) the number and size of households;

(ii) population density;

(iii) collections methods employed;

(iv) public education efforts;

(v) distance to consolidation or transfer facilities; to reuse, recycling, or composting
facilities; or to responsible markets;

(vi) other factors that may contribute to regional or jurisdictional cost differences;

(vii) proportion of covered compostable materials within all source-separated compostable
materials collected or managed through composting; and

(viii) the general quality of materials recycled or composted by service providers;

(2) a fixed amount for each ton of covered material recycled or composted by a service
provider in the prior calendar year based upon:

(i) the average costs associated with the transportation and processing from a central
location within a political subdivision, of collected covered material from the political
subdivision to a recycling or composting facility;

(ii) the processing of and removal of contamination from covered material by a recycling
or composting facility;

(iii) the recycling or composting of covered materials in the state or in another jurisdiction
less the average fair market value for that covered material based on the market indices for
the region, updated monthly;

(iv) costs associated with the management of contaminated materials removed from
collected covered material; and

(v) the proportion of covered compostable materials within all source-separated
compostable materials collected or managed through composting;

(3) an additional fixed amount, in excess of the rate provided under clause (2), for each
material type per ton for covered materials that are not included on the lists established
according to section 115A.1453, subdivision 1, that are recycled or composted by a service
provider in the prior calendar year less the average fair market value for that covered material
based on the market indices for the region, updated monthly;

(4) a fixed amount for mixed recycling tons that are managed through a process that
includes percentages of covered materials included on the lists established according to
section 115A.1453, subdivision 1, and additional covered materials. The per ton fixed
amount shall be prorated for the values in clause (2), items (i) and (ii), based upon the most
recent waste characterization for mixed recycling ton averages;

(5) a fixed amount, based on population served, for administrative costs of service
providers, including education, public awareness campaigns, and outreach program costs
as applicable; and

(6) a fixed amount for the cost of managing covered materials capable of refill or reusable
covered materials and for the costs associated with collection, cleaning, sanitation,
distribution, and management of contamination.

(b) A service provider may retain all revenue from the sale of covered materials. Nothing
in this act restricts a service provider from charging a fee for collection or processing of
covered materials to the extent that reimbursement from a producer responsibility
organization does not cover all costs of services, including operating profits and returns on
investments required by a service provider to provide sustainability of the services.

Subd. 5.

Local government authority.

(a) Nothing in this section shall be construed to
require a political subdivision to agree to operate under a stewardship plan, nor does it
restrict the authority of a political subdivision to provide waste management services to
residents or to contract with any entity to provide waste management services. Any political
subdivision that is also a service provider is eligible to be registered with the commissioner
and reimbursed per the rates and schedule approved in subdivision 4. If a majority of political
subdivisions in the state chooses not to participate in the program by January 1, 2030, the
commissioner shall revise the statewide requirements established under section 115A.1451,
subdivision 7.

(b) Nothing in this act restricts the authority of a political subdivision to provide waste
management services to residents, to contract with any entity to provide waste management
services, or to exercise its authority granted under section 115A.94. A producer responsibility
organization may not restrict or otherwise interfere with a political subdivision exercising
its authority under section 115A.94 to organize collection of solid waste, including materials
collected for recycling or composting, or to extend, renew, or otherwise manage any contracts
entered into as a result of exercising such authority or otherwise resulting from a competitive
procurement process.

Subd. 6.

Dispute resolution.

There must be a dispute resolution process for disputes
related to reimbursements utilizing third-party mediators.

Sec. 16.

[115A.1456] REPORTING.

Subdivision 1.

Producer responsibility organization annual report.

(a) By July 1,
2031, and each July 1 thereafter, a producer responsibility organization must submit a written
report to the commissioner that contains, at a minimum, the following information for the
previous calendar year:

(1) the amount of covered materials introduced by each covered materials type, reported
in the same units used to establish fees under section 115A.1454, subdivision 1, clause (1);

(2) progress toward the performance targets reported in the same units used to establish
producer fees under section 115A.1454, subdivision 1, clause (1), and reported statewide
and for each county including:

(i) the amount of covered materials successfully waste reduced, reused, recycled, and
composted by covered materials type and the strategies or collection method used; and

(ii) information about third-party certifications obtained;

(3) the total cost to implement the program and a detailed description of program
expenditures including:

(i) the total amount of producer fees collected in the current calendar year; and

(ii) a description of infrastructure investments made during the previous year;

(4) a copy of a financial audit of program operations conducted by an independent auditor
approved by the commissioner that meets the requirements of the Financial Accounting
Standards Board's Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic
958), as amended;

(5) a description of program performance problems that emerged in specific locations
and efforts taken or proposed by the producer responsibility organization to address them;

(6) a discussion of technical assistance provided to producers regarding toxic substances
in covered materials and actions taken by producers to reduce intentionally added toxic
substances in covered materials beyond compliance with prohibitions already established
in law;

(7) a description of public awareness, education, and outreach activities undertaken
including any evaluations conducted of their efficacy, plans for next calendar year's activities,
and an evaluation of the process established by the producer responsibility organization to
answer questions from consumers regarding collection, recycling, composting, waste
reduction, and reuse activities;

(8) a summary of consultations held with the advisory board and how any feedback was
incorporated into the report as a result of the consultations, together with a list of rejected
recommendations and the reasons for rejection;

(9) a list of any producers found to be out of compliance with this act, and actions taken
by the producer responsibility organization to return the producer to compliance, and
notification of any producers that are no longer participating in the producer responsibility
organization or have been expelled due to their lack of compliance;

(10) any proposed amendments to the stewardship plan to improve program performance
or reduce costs, including changes to producer fees, infrastructure investments, or
reimbursement rates;

(11) any recommendations for additions or removal of covered materials to or from the
recyclable or compostable covered materials lists developed under section 115A.1453; and

(12) any information requested by the commissioner to assist with determining
compliance with this act.

(b) Every fourth year after a stewardship plan is approved by the commissioner, a
performance audit of the program must be completed. 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.

Subd. 2.

Report following unmet target.

A producer responsibility organization that
fails to meet a performance target approved in a stewardship plan must, within 90 days of
filing an annual report under this section, file with the commissioner an explanation of the
factors contributing to the failure and propose an amendment to the stewardship plan
specifying changes in operations that the producer responsibility organization will make
that are designed to achieve the following year's targets. If a performance target is unmet
due to lack of political subdivision participation in the program, the commissioner shall
revise the statewide requirements developed under section 115A.1451, subdivision 7. If a
revision to the statewide performance targets is required and completed by the commissioner,
the producer responsibility organization may revise the performance targets at the same
time. An amendment filed under this subdivision must be reviewed by the advisory board
and reviewed and approved by the commissioner in the manner specified in section
115A.1451, subdivisions 2 and 4.

Subd. 3.

Commissioner's report.

By October 15, 2034, and every five years thereafter,
the commissioner must submit a report to the governor and to the chairs and ranking minority
members of the legislative committees with jurisdiction over solid waste. The report must
contain a summary of the operations of the Packaging Waste and Cost Reduction Act during
the previous five years, a summary of the needs assessment, a link to reports filed under
subdivisions 1 and 2, recommendations for policy, statutory, or regulatory changes to the
program, a list of efforts undertaken by the commissioner to enforce and secure compliance
with this act, and any other information the commissioner deems to be relevant.

Subd. 4.

Duty to cooperate.

Service providers must provide producer responsibility
organizations with data necessary to complete the reports required by this section upon
request.

Sec. 17.

[115A.1457] PRODUCER RESPONSIBILITY ORGANIZATION
WEBSITES.

A producer responsibility organization must maintain a website that uses best practices
for accessibility that contains at least:

(1) information regarding a process that members of the public can use to contact the
producer responsibility organization with questions;

(2) a directory of all service providers operating under the stewardship plan administered
by the producer responsibility organization, grouped by location or political subdivision,
and information about how to request service;

(3) registration materials submitted to the commissioner under section 115A.1443;

(4) the draft and approved stewardship plan and any draft and approved amendments;

(5) information on how to manage materials included in lists established under section
115A.1453;

(6) the list of exempt materials as defined in this act and covered materials exempt from
performance targets and statewide requirements as approved in the stewardship plan;

(7) the most recent needs assessment and all past needs assessments;

(8) annual reports filed by the producer responsibility organization;

(9) a link to administrative rules implementing this act;

(10) comments of the advisory board on the documents listed in clauses (4) and (7), and
the responses of the producer responsibility organization to those comments;

(11) the names of producers and brands that are not in compliance with section
115A.1448;

(12) a list, that is updated at least monthly, of all member producers that will operate
under the stewardship plan administered by the producer responsibility organization and,
for each producer, a list of all brands of the producer's covered materials introduced in the
state; and

(13) education materials on waste reduction, reuse, recycling, and composting for
producers and the general public.

Sec. 18.

[115A.1458] ANTICOMPETITIVE CONDUCT.

A producer responsibility organization that arranges collection, recycling, composting,
waste reduction, or reuse services under this act may engage in anticompetitive conduct to
the extent necessary to plan and implement collection, recycling, composting, waste
reduction, or reuse systems to meet the obligations under this act, and is immune from
liability under state laws relating to antitrust, restraint of trade, and unfair trade practices.

Sec. 19.

[115A.1459] RULEMAKING.

The commissioner may adopt rules to implement this act. The 18-month time limit under
section 14.125 does not apply to the commissioner's rulemaking authority under this section.

Sec. 20.

[115A.1460] PROVIDING INFORMATION.

Upon request of the commissioner for purposes of determining compliance with this
act, or for purposes of implementing this act, a person must furnish to the commissioner
any information that the person has or may reasonably obtain.

Sec. 21.

[115A.1461] DEPOSIT RETURN SYSTEM.

(a) It is the intent of the legislature that if a bottle deposit return system is enacted in the
future, it will be harmonized with this act in a manner that ensures that:

(1) materials covered in that system are exempt from this act or related financial
obligations are reduced;

(2) colocation of drop-off facilities and alternative collection sites is maximized;

(3) education and outreach is integrated between the two programs; and

(4) waste reduction and reuse strategies are prioritized between the two programs.

(b) Any implementation of a deposit return system is created with at least a two-year
transition period prior to the expiry of the currently approved stewardship plan and conducted
in a manner that does not create sudden and significant operational or financial disruption
to the implementation of a stewardship plan under section 115A.1451, including provisions
of recycling or reuse services contained in the plan.

Sec. 22.

[115A.1462] ENFORCEMENT.

(a) The commissioner must enforce this act as provided under this section and sections
115.071 and 116.072. The commissioner may revoke a registration of a producer
responsibility organization or producer found to have violated this act.

(b) Notwithstanding the penalty limits contained in section 115.071, subdivision 3, and
except as otherwise provided in paragraph (c), a person that violates or fails to perform a
duty imposed by this act or any rule adopted thereunder is liable for a civil penalty not to
exceed $25,000 per day of violation.

(c) Notwithstanding the penalty limits contained in section 115.071, subdivision 3, a
producer responsibility organization or producer that violates a provision of or fails to
perform a duty imposed by this act, a rule adopted thereunder, or requirements of a
stewardship plan approved by the commissioner, is liable for a civil penalty not to exceed
$25,000 per day of violation. For a second violation occurring within five years after the
approval of a stewardship plan, a producer responsibility organization or producer is liable
for a civil penalty not to exceed $50,000 per day of violation. For a third or subsequent
violation occurring within five years after the approval of a stewardship plan, a producer
responsibility organization or producer is liable for a civil penalty not to exceed $100,000
per day of violation.

Sec. 23. WORKPLACE CONDITIONS AND EQUITY STUDY.

(a) By January 1, 2032, the commissioner of the Pollution Control Agency must contract
with a third party that is not a producer or a producer responsibility organization to conduct
a study of the recycling, composting, and reuse facilities operating in the state. The study
must analyze, at a minimum information about:

(1) working conditions, wage and benefit levels, and employment levels of minorities
and women at those facilities;

(2) barriers to ownership of recycling, composting, and reuse operations faced by women
and minorities;

(3) the degree to which residents of multifamily buildings have less convenient access
to recycling, composting, and reuse opportunities than those living in single-family homes;

(4) the degree to which environmental justice areas have access to fewer recycling,
composting, and reuse opportunities compared to other parts of the state;

(5) the degree to which programs to increase access, convenience, and education are
successful in raising reuse, recycling, and composting rates in areas where participation in
these activities is low;

(6) strategies to increase participation in reuse, recycling, and composting; and

(7) the degree to which residents and workers in environmental justice areas are impacted
by emissions, toxic substances, and other pollutants from solid waste facilities in comparison
to other areas of the state and provide recommendations to mitigate those impacts.

(b) The initial producer responsibility organization registered by the commissioner under
Minnesota Statutes, sections 115A.144 to 115A.1462, must cover the cost of conducting
the study through its annual registration fee and recommended actions identified in the study
must be considered as part of future stewardship plans as required under Minnesota Statutes,
section 115A.1451, including adjustments to service provider reimbursements as established
under Minnesota Statutes, section 115A.1455.

Sec. 24. COVERED MATERIALS POLLUTION AND CLEANUP STUDY.

(a) By January 1, 2032, the commissioner of the Pollution Control Agency, in consultation
with the commissioners of health and natural resources, must contract with a third party
that is not a producer or a producer responsibility organization to conduct a study to identify
the contribution of covered products to litter and water pollution in Minnesota. The report
must at a minimum:

(1) analyze historical and current environmental and human health impacts of littered
covered materials and their associated toxic substances in the environment;

(2) estimate the cost of cleanup and prevention; and

(3) provide recommendations for how to reduce and mitigate the impacts of litter in the
state.

(b) The contracted third party must consult with units of local government, the
commissioners of health and natural resources, and environmental justice organizations.

(c) The initial producer responsibility organization registered by the commissioner under
Minnesota Statutes, sections 115A.144 to 115A.1462, must cover the cost of conducting
the study through its annual registration fee and recommended actions identified in the study
must be considered as part of future stewardship plans, as required under Minnesota Statutes,
section 115A.1451.