SF 4518

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/22/2022 10:31am

A bill for an act
relating to solid waste; establishing product stewardship program for packaging
materials; establishing labeling requirements; requiring reports; requiring
rulemaking; proposing coding for new law in Minnesota Statutes, chapter 115A.

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

Section 1.

new text begin [115A.1421] DEFINITIONS.
new text end

new text begin (a) For purposes of sections 115A.1421 to 115A.1443, the terms defined in this section
have the meanings given.
new text end

new text begin (b) "Brand" means a name, symbol, word, or mark that identifies a product, rather than
its components, and attributes the product to the owner of the name, symbol, word, or mark.
new text end

new text begin (c) "Commissioner" means the commissioner of the Pollution Control Agency.
new text end

new text begin (d) "Compost" means a stable humus-like material produced by the controlled biological
decomposition of organic matter through active management, but does not mean sewage,
septage, or materials derived from sewage or septage.
new text end

new text begin (e) "Compostable" means packaging that is certified by an independent third-party
certifier as capable of becoming compost through controlled aerobic biological
decomposition.
new text end

new text begin (f) "Contaminant" means a material that is:
new text end

new text begin (1) set out for recycling collection and is not properly prepared and on the list of materials
accepted for recycling collection by a recycling collection program; or
new text end

new text begin (2) shipped to a recycling end market and is not accepted or desired by that end market.
new text end

new text begin (g) "Contamination" means the presence of one or more contaminants in recyclable
materials in an amount or concentration that negatively impacts the value of the material
or negatively impacts a processor's ability to sort the material.
new text end

new text begin (h) "European article number" or "EAN" means a 13-digit barcode used for product
identification purposes.
new text end

new text begin (i) "Franchisee" means a person granted a license by a franchisor to use the franchisor's
trade name, service mark, or related characteristic and to share in the franchisor's proprietary
knowledge or processes under an oral or written agreement for a definite or indefinite period.
new text end

new text begin (j) "Franchisor" means a person that grants a license to a franchisee to use the person's
trade name, service mark, or related characteristic and to share in the person's proprietary
knowledge or processes under an oral or written agreement for a definite or indefinite period.
new text end

new text begin (k) "Low-volume producer" means a producer that sold, offered for sale, or distributed
for sale in or into the state during the previous calendar year products contained, protected,
delivered, presented, or distributed in or using more than one but less than 15 tons of
packaging material.
new text end

new text begin (l) "Material recovery facility" means a facility that receives, processes, and sells or
otherwise distributes postconsumer materials for recycling.
new text end

new text begin (m) "Minnesota Tribal governments" has the meaning given in section 10.65, subdivision
2, clause (4).
new text end

new text begin (n) "Municipality" means a statutory or home rule charter city, town, or regional
association acting on behalf of a city or town.
new text end

new text begin (o) "Nonreusable packaging" means packaging that is not reusable.
new text end

new text begin (p) "Packaging material" means any part of a package or container, including material
used for containing, protecting, handling, delivering, transporting, distributing, and presenting
a product that is sold, offered for sale, imported, or distributed in the state, including through
Internet transactions. Packaging materials includes bags and secondary or transport
packaging. Packaging material does not include:
new text end

new text begin (1) a discrete type of material intended to be used for long-term storage or protecting a
durable product that can be expected to be usable for that purpose for a period of at least
five years;
new text end

new text begin (2) a beverage container; or
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new text begin (3) packaging that is reusable.
new text end

new text begin (q) "Political subdivision" has the meaning given in section 13.02, subdivision 11.
new text end

new text begin (r) "Postconsumer recycled material" means new material that is produced from
recovering, separating, collecting, and reprocessing material originally sold for consumption
and that would otherwise be disposed of or processed as waste. Postconsumer recycled
material does not include postindustrial material, preconsumer material, or material generated
by combustion, incineration, pyrolysis, gasification, solvolysis, chemical recycling, or any
other high-heat or chemical conversion process.
new text end

new text begin (s) "Producer" means:
new text end

new text begin (1) an entity that manufactures or uses in a commercial enterprise, sells, offers for sale,
or distributes packaging material in the state under the brand of the manufacturer;
new text end

new text begin (2) an entity that is not the manufacturer of packaging material but is the owner or
licensee of a trademark under which the covered product is used in commercial enterprise,
sold, offered for sale, or distributed in the state, whether or not the trademark is registered;
or
new text end

new text begin (3) an entity that imports packaging material into the United States or the state for use
in a commercial enterprise, sale, offer for sale, or distribution in the state.
new text end

new text begin Producer includes a low-volume producer and a franchisor of a franchise located in the
state, but does not include the franchisee operating the franchise. Producer does not include
an entity exempted from the program under section 115A.1423, paragraph (h).
new text end

new text begin (t) "Product stewardship organization" means the not-for-profit entity contracted by the
commissioner and authorized to collect and distribute producer fees.
new text end

new text begin (u) "Product stewardship program" or "program" means the program implemented under
sections 115A.1421 to 115A.1443 by the product stewardship organization to assess and
collect fees from producers based on the amount, by weight, of nonreusable packaging sold,
offered for sale, or distributed for sale in or into the state by each producer to pay for:
new text end

new text begin (1) investments in product redesign and reusable systems;
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new text begin (2) fees to municipalities and political subdivisions;
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new text begin (3) certain recycling and waste management programs; and
new text end

new text begin (4) investments in reuse and recycling education and infrastructure.
new text end

new text begin (v) "Readily recyclable" means packaging material for which the commissioner
determines that entities that process recyclable material generated in the state:
new text end

new text begin (1) can sort the material; and
new text end

new text begin (2) are willing to purchase the material in full bales when fully sorted in quantities equal
to or in excess of its supply, based on data from the previous two calendar years.
new text end

new text begin Readily recyclable does not include packaging material that contains a toxic substance.
new text end

new text begin (w) "Recycling" has the meaning given in section 115A.03, subdivision 25b.
new text end

new text begin (x) "Returnable" means that packaging can be conveniently returned after use to a reuse
or return system with an average annual return rate of no less than 80 percent.
new text end

new text begin (y) "Reusable" means a product that is:
new text end

new text begin (1) designed to be used repeatedly and is returnable for a number of use cycles that
exceeds those specified in section 115A.1435;
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new text begin (2) free of toxic substances;
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new text begin (3) safe for washing and sanitizing according to applicable food safety laws; and
new text end

new text begin (4) capable of being recycled at the end of use, with the exception of ceramic products.
new text end

new text begin (z) "Toxic substance" means a chemical or class of related chemicals listed in section
115A.1437 or a chemical designated as a chemical of high concern by the Department of
Health under section 116.9402.
new text end

new text begin (aa) "Unit" means each discrete component of a package or container, including material
that is used for containing, protecting, handling, delivering, transporting, distributing, and
presenting a product that is sold, offered for sale, imported, or distributed in the state,
including through Internet transactions.
new text end

new text begin (bb) "Universal product code" or "UPC" means a standard for encoding a set of lines
and spaces that can be scanned and interpreted into numbers for product identification
purposes. Universal product code includes any industry-accepted barcode used for product
identification purposes in a manner similar to a UPC, including but not limited to an EAN.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [115A.1422] PRODUCT STEWARDSHIP PROGRAM.
new text end

new text begin (a) Sections 115A.1421 to 115A.1443 establish a product stewardship program by which
producers of packaging material that participate in a product stewardship organization must
make changes to their products' design to reduce packaging consumption and waste and
must pay fees based on the weight and type of packaging material sold, offered for sale, or
distributed for sale in or into the state.
new text end

new text begin (b) The product stewardship organization must assess and collect fees from producers
and establish and manage the packaging responsibility account under section 115A.1430
to be used to award grants to eligible projects that reduce packaging waste by investing in
reuse and refill systems; recycling infrastructure; and reuse, refill, and recycling education
in the state.
new text end

new text begin (c) The commissioner must conduct a statewide needs assessment to determine the
barriers and opportunities to reduce packaging waste and increase waste reduction, reuse,
and recycling.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [115A.1423] PRODUCER RESPONSIBILITIES; EXEMPTIONS.
new text end

new text begin (a) Beginning two years after the effective date of this section, a producer may not sell,
offer for sale, or distribute for sale in or into the state a product contained, protected,
delivered, presented, or distributed in or using packaging material unless the producer
complies with all applicable requirements of this section.
new text end

new text begin (b) Notwithstanding a producer's failure to comply with all applicable requirements of
this section with respect to a type or types of packaging material, the commissioner may
authorize the sale or distribution for sale in or into the state of another product or products
of the producer that are contained, protected, delivered, presented, or distributed in or using
a different type or types of packaging material for which that producer complies with all
applicable requirements of this section.
new text end

new text begin (c) A producer must annually report to the product stewardship organization:
new text end

new text begin (1) the total amount of packaging material, by weight, sold, offered for sale, or distributed
for sale in or into the state by the producer in the previous calendar year;
new text end

new text begin (2) the total amount of packaging material, by unit, sold, offered for sale, or distributed
for sale in or into the state by the producer in the previous calendar year;
new text end

new text begin (3) the percentage of all packaging material the producer sold, offered for sale, or
distributed for sale into the state through Internet transactions; and
new text end

new text begin (4) all information necessary for the product stewardship organization to meet its
obligations under section 115A.1426.
new text end

new text begin (d) A producer must annually report to the commissioner information necessary for the
commissioner to make a determination of the producer's compliance with:
new text end

new text begin (1) the nonreusable packaging reduction requirements of section 115A.1434;
new text end

new text begin (2) the reuse system requirements of section 115A.1435;
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new text begin (3) the recycling or postconsumer recycled material requirements of section 115A.1436;
new text end

new text begin (4) the toxic substances in packaging requirements of section 115A.1437; and
new text end

new text begin (5) the labeling requirements of section 115A.1441.
new text end

new text begin (e) A producer that is not a low-volume producer must describe the methods used to
determine the amount reported under this section for each type of packaging material
associated with the producer's products, a description of the characteristics of each type of
packaging material, and a list of the producer's brands and the UPCs of the products
associated with each type of packaging material.
new text end

new text begin (f) A producer that is unable to fully satisfy the reporting requirements of this section
because of failure to obtain sufficient information regarding the characteristics of the
packaging associated with the producer's products sold, offered for sale, or distributed for
sale in or into the state may alternatively report an estimate of the total amount of that
packaging based on unit quantities and a description of methods used to calculate the
estimate.
new text end

new text begin (g) A producer must pay fees established by the commissioner under section 115A.1428
to the product stewardship organization.
new text end

new text begin (h) Notwithstanding any provision of this section to the contrary, a producer is exempt
from sections 115A.1421 to 115A.1443 in any calendar year in which:
new text end

new text begin (1) the producer received less than $2,000,000 in total gross revenue during the previous
calendar year; or
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new text begin (2) the producer sold, offered for sale, or distributed for sale in or into the state during
the previous calendar year products contained, protected, delivered, presented, or distributed
in or using less than one ton of packaging material in total.
new text end

new text begin (i) Within 30 days of receiving a request from the commissioner, a producer claiming
an exemption under this section must provide to the commissioner sufficient information
to demonstrate that the producer meets the requirements for an exemption under paragraph
(h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [115A.1424] PRODUCT STEWARDSHIP ORGANIZATION; SELECTION.
new text end

new text begin (a) Consistent with the requirements of this section, the commissioner must select and
enter into a contract with one product stewardship organization to operate a product
stewardship program.
new text end

new text begin (b) Consistent with applicable competitive bidding requirements under state purchasing
laws, the commissioner must issue a request for proposals for operating a product stewardship
program. The proposals must address operation of the program for ten years and must
include, at a minimum:
new text end

new text begin (1) a description of how the bidder will administer the program, including mechanisms
or processes to assist producers in reporting required information and to share methods by
which packaging material used by a producer may be modified so as to reduce the producer's
fee obligations and comply with the targets for reduction and reuse required in section
115A.1435 and targets for recycling or postconsumer recycled material required in section
115A.1436;
new text end

new text begin (2) a description of how the bidder intends to solicit and consider input from interested
persons, including but not limited to producers, political subdivisions, environmental
organizations, waste management and recycling establishments, and reuse system operators,
regarding the bidder's operation of the program;
new text end

new text begin (3) a description of how the bidder intends to establish and manage the packaging
responsibility account;
new text end

new text begin (4) a financial assurance plan that ensures all funds held in the packaging responsibility
account under section 115A.1430 are immediately and exclusively forfeited and transferred
to or otherwise made immediately available to the commissioner when the product
stewardship organization's contract with the commissioner is terminated by the commissioner
or expires, unless the product stewardship organization enters into a new contract with the
commissioner before the organization's existing contract expires;
new text end

new text begin (5) a proposed budget outlining the anticipated costs of operating the product stewardship
program, including:
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new text begin (i) identification of any start-up costs;
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new text begin (ii) a description of the method by which the bidder intends to determine and collect
producer fees during the initial start-up period of program operations; and
new text end

new text begin (iii) methods that will be used to reimburse or require additional fees by producers after
the initial start-up period, based on producer reporting of the actual amount of packaging
material sold, offered for sale, or distributed for sale in or into the state during the initial
start-up period; and
new text end

new text begin (6) a certification that the bidder will not share, except with the commissioner, information
provided to the bidder by a producer that is identified by the producer as proprietary
information. The certification must include a description of the methods by which the bidder
intends to ensure the confidentiality of the information.
new text end

new text begin (c) In accordance with state purchasing laws, the commissioner must enter into one
contract with a bidder that has submitted a proposal that meets the requirements of this
section. The commissioner must select the product stewardship organization within one
year of the date on which the final program rules are adopted.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [115A.1425] PRODUCT STEWARDSHIP ORGANIZATION;
OBLIGATIONS.
new text end

new text begin (a) The product stewardship organization must:
new text end

new text begin (1) collect and compile data from producers according to section 115A.1426;
new text end

new text begin (2) collect fees due from producers according to section 115A.1428;
new text end

new text begin (3) use fees collected from producers to fund the needs assessment required in section
115A.1429;
new text end

new text begin (4) distribute funds from the packaging responsibility account according to section
115A.1430;
new text end

new text begin (5) offer technical support to producers;
new text end

new text begin (6) fund third-party, independent audits of inbound and outbound recyclable material
generated in the state and disposal of inbound and outbound materials and litter audits that
are conducted at least annually; and
new text end

new text begin (7) comply with rules adopted to implement sections 115A.1421 to 115A.1443.
new text end

new text begin (b) A product stewardship organization may not make campaign contributions, lobby,
or bring administrative or court actions against the commissioner, any third-party inspectors,
or any other party in connection with the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [115A.1426] PRODUCT STEWARDSHIP ORGANIZATION; REPORTING
REQUIREMENTS.
new text end

new text begin A product stewardship organization must annually submit to the commissioner and make
available on its publicly accessible website a report that includes, at a minimum, the following
information for the previous calendar year:
new text end

new text begin (1) contact information for the product stewardship organization;
new text end

new text begin (2) a list of participating producers and the brands and the UPCs of products associated
with each producer;
new text end

new text begin (3) the total amount, by both weight and number of units, of each type of packaging
material sold or offered for sale within the state;
new text end

new text begin (4) the total amount, by both weight and number of units, of packaging material sold or
offered for sale in the state that is reusable;
new text end

new text begin (5) a complete accounting of payments made to and by the product stewardship
organization during the previous calendar year;
new text end

new text begin (6) a list of any producer noncompliance known to the product stewardship organization
and the steps the product stewardship organization is taking to bring noncompliant producers
into compliance;
new text end

new text begin (7) a description of the infrastructure and education grants made by the product
stewardship organization in previous calendar years and an evaluation of how those grants
increased access to recycling and reuse systems in the state;
new text end

new text begin (8) an assessment of the progress made toward achieving program goals, including but
not limited to the goals established in sections 115A.1434 to 115A.1436;
new text end

new text begin (9) an assessment of whether the fee schedule for producers adopted by the commissioner
under section 115A.1428 has been successful in incentivizing improvements to the design
of packaging material, including increases in the percentage of reusable packaging and
decreases in overall quantity of packaging by number of units;
new text end

new text begin (10) an assessment of whether the investments made under sections 115A.1432 and
115A.1433 have been successful in increasing the amount of packaging material that is
readily recyclable or reusable packaging and in incentivizing improvements to the design
of packaging material;
new text end

new text begin (11) any proposals to change the program or modify investments in education and
infrastructure designed to achieve program goals to reduce the amount of packaging material
used, increase access, or otherwise increase program efficiency;
new text end

new text begin (12) results of representative inbound and outbound audits of recyclable material
processed and sold by material recycling facilities in the state, waste characterization of
municipal solid waste being disposed of in the state, and litter audits;
new text end

new text begin (13) results of a third-party financial audit of the product stewardship organization; and
new text end

new text begin (14) any additional information required by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

new text begin [115A.1427] COMMISSIONER'S RESPONSIBILITIES.
new text end

new text begin (a) Within one year of the effective date of this section, the commissioner must adopt
rules under chapter 14 setting fees for producers according to section 115A.1428. Fees must
be set at a rate that will incentivize reductions in overall packaging and the adoption of
reuse systems, increase postconsumer recycled material, and promote using recyclable
packaging.
new text end

new text begin (b) The commissioner must revise fees:
new text end

new text begin (1) at least every three years to reflect new data received about material use and
management; or
new text end

new text begin (2) whenever the targets established in sections 115A.1434 to 115A.1436 are not met.
new text end

new text begin (c) Within six months of the effective date of this section, the commissioner must conduct
a reduction, reuse, and recycling needs assessment according to section 115A.1429 to
identify barriers and opportunities for reducing, reusing, and recycling packaging.
new text end

new text begin (d) The commissioner must evaluate the program each year to ensure its proper
functioning and to prevent fraud, waste, or abuse in expending money.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

new text begin [115A.1428] ASSESSMENT OF FEES.
new text end

new text begin (a) The commissioner must establish the manner in which producer fees on packaging
materials are calculated. Producer fees must be calculated based on:
new text end

new text begin (1) the packaging material type; and
new text end

new text begin (2) the quantity of each packaging material type, by weight, that the producer sells, offers
for sale, or distributes in the state.
new text end

new text begin (b) At a minimum, the commissioner must establish fees on the following packaging
material types:
new text end

new text begin (1) paper;
new text end

new text begin (2) cardboard;
new text end

new text begin (3) corrugated cardboard;
new text end

new text begin (4) generic paper or cardboard;
new text end

new text begin (5) wood;
new text end

new text begin (6) glass;
new text end

new text begin (7) polypropylene;
new text end

new text begin (8) polyethylene terephthalate (PET);
new text end

new text begin (9) high-density polyethylene (HDPE);
new text end

new text begin (10) expanded polystyrene (EPS);
new text end

new text begin (11) low-density polyethylene (LDPE);
new text end

new text begin (12) polystyrene;
new text end

new text begin (13) bioplastics;
new text end

new text begin (14) plastic film;
new text end

new text begin (15) other plastics;
new text end

new text begin (16) steel or ferrous;
new text end

new text begin (17) aluminum;
new text end

new text begin (18) tinplate;
new text end

new text begin (19) generic metals; and
new text end

new text begin (20) ceramics.
new text end

new text begin (c) Fees must reflect:
new text end

new text begin (1) the net cost of curbside collection, commercial collection, or transfer station operation;
new text end

new text begin (2) on-site processing costs for each readily recyclable packaging material type;
new text end

new text begin (3) management cost of nonreadily recyclable packaging;
new text end

new text begin (4) transportation cost for each packaging material type;
new text end

new text begin (5) the commissioner's cost to administer sections 115A.1421 to 115A.1443;
new text end

new text begin (6) the product stewardship organization's administrative costs; and
new text end

new text begin (7) any other program costs determined by the commissioner.
new text end

new text begin (d) Fees for each type of packaging must be structured to promote environmentally
beneficial packaging design. Fees must be higher for packaging material that is not readily
recyclable than for packaging material that is readily recyclable. No fee may be established
on packaging that is reusable.
new text end

new text begin (e) The fee schedule adopted under this section must provide for a flat fee option to be
assessed on a tiered basis so that a low-volume producer pays no more than $500 per ton
of packaging and no more than $7,500 in total annual fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

new text begin [115A.1429] STATEWIDE REDUCTION, REUSE, AND RECYCLING
NEEDS ASSESSMENT.
new text end

new text begin (a) Within six months of the effective date of this section, the commissioner must conduct
a statewide needs assessment to identify barriers and opportunities for reducing, reusing,
and recycling packaging.
new text end

new text begin (b) The commissioner must issue a request for proposals to conduct the needs assessment.
The proposals must include, at a minimum, a description of how the bidder will conduct a
statewide needs assessment that, at a minimum, includes an evaluation of:
new text end

new text begin (1) current barriers affecting the establishment of reduction and reuse programs;
new text end

new text begin (2) opportunities to establish reduction and reuse programs;
new text end

new text begin (3) current needs affecting recycling access and availability;
new text end

new text begin (4) opportunities to improve access to recycling;
new text end

new text begin (5) the capacity, cost, and needs associated with collecting and transporting recyclable
material;
new text end

new text begin (6) the processing capacity, market conditions, and opportunities in the state and
regionally for recyclable material;
new text end

new text begin (7) barriers to the marketability of recyclable materials generated in the state and potential
solutions;
new text end

new text begin (8) the amount, by weight, of material that is recycled by each material recovery facility
that accepts packaging material from the state;
new text end

new text begin (9) consumer education needs with respect to reuse systems, recycling, and reducing
contamination in collected recyclable material;
new text end

new text begin (10) the following costs:
new text end

new text begin (i) net cost of curbside collection, commercial collection, or transfer station operation;
new text end

new text begin (ii) on-site processing cost for each readily recyclable packaging material type;
new text end

new text begin (iii) management cost of nonreadily recyclable packaging;
new text end

new text begin (iv) transportation cost for each packaging material type; and
new text end

new text begin (v) any other program costs determined by the commissioner;
new text end

new text begin (11) the availability of employment opportunities in recycling and reuse systems for
women and minorities;
new text end

new text begin (12) the sufficiency and implementation of local government requirements related to
multifamily housing recycling services; and
new text end

new text begin (13) the location of landfills, incinerators, and transfer stations within the state, the
socioeconomic conditions surrounding the sites, and the permitted pollution levels at each
facility.
new text end

new text begin (c) The commissioner must update and revise the needs assessment every three years,
using money from the packaging responsibility account established in section 115A.1430.
new text end

new text begin (d) Within 18 months after the effective date of this section, the commissioner must
submit a report on the results of the needs assessment to the chairs and ranking minority
members of the senate and house of representatives committees with primary jurisdiction
over environment policy and finance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

new text begin [115A.1430] PACKAGING RESPONSIBILITY ACCOUNT ESTABLISHED;
AUTHORIZED EXPENDITURES.
new text end

new text begin (a) The product stewardship organization must establish and manage a packaging
responsibility account according to this section. The product stewardship organization must
deposit into the account all fees received from producers.
new text end

new text begin (b) Beginning one year after the first payment of fees by producers, and annually
thereafter, the product stewardship organization must reimburse the commissioner from the
packaging responsibility account for the commissioner's costs associated with administering
sections 115A.1421 to 115A.1443, including:
new text end

new text begin (1) costs associated with performing, revising, and updating the needs assessment, as
required under section 115A.1429; and
new text end

new text begin (2) costs incurred by the commissioner in adopting rules and in administering and
enforcing sections 115A.1421 to 115A.1443 before the effective date of the contract entered
into by the commissioner and the product stewardship organization.
new text end

new text begin (c) Beginning one year after the first payment of fees by producers, and annually
thereafter, the product stewardship organization must retain a portion of the money in the
packaging responsibility account to pay the costs associated with its administration of the
product stewardship organization, as provided under section 115A.1431. Reimbursement
may include costs associated with the formation of the product stewardship organization.
new text end

new text begin (d) Beginning one year after the first payment of fees by producers, and annually
thereafter, the product stewardship organization must distribute all revenues in the packaging
responsibility account remaining after the reimbursements under paragraphs (b) and (c) and
in section 115A.1431, paragraph (b), in the following proportions and for the following
purposes:
new text end

new text begin (1) 50 percent of the money must be used for recycling infrastructure and education
grants, according to section 115A.1432;
new text end

new text begin (2) 25 percent of the money must be used for reuse infrastructure and education grants,
according to section 115A.1432; and
new text end

new text begin (3) 25 percent of the money must be distributed to political subdivisions and Minnesota
Tribal governments to address recycling needs in those communities according to section
115A.1433.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

new text begin [115A.1431] ADMINISTRATIVE EXPENSES.
new text end

new text begin (a) Beginning one year after the first payment of fees by producers, and annually
thereafter, the product stewardship organization must reimburse the commissioner from the
packaging responsibility account for all costs incurred in administering sections 115A.1421
to 115A.1443, including but not limited to:
new text end

new text begin (1) administration of the agency's contract with any third-party certifier;
new text end

new text begin (2) costs incurred by the commissioner in managing the agency's contract with the
product stewardship organization;
new text end

new text begin (3) costs incurred during rulemaking;
new text end

new text begin (4) costs incurred reviewing grant proposals under sections 115A.1432 and 115A.1433;
and
new text end

new text begin (5) costs incurred in reviewing compliance information from the product stewardship
organization and individual producers.
new text end

new text begin (b) Beginning one year after the first payment of fees by producers, and annually
thereafter, the product stewardship organization must retain money in the packaging
responsibility account sufficient to pay the cost of administering the product stewardship
program, which cost must be annually verified by a third-party financial audit paid for by
the product stewardship organization as required in section 115A.1426, clause (13).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

new text begin [115A.1432] GRANTS FOR RECYCLING AND REUSE
INFRASTRUCTURE AND EDUCATION.
new text end

new text begin (a) Any interested person, municipality, business, organization, or institution may apply
to the product stewardship organization for a grant to carry out a project or projects to
improve recycling or reuse infrastructure or provide educational programming or materials
regarding recycling or reuse.
new text end

new text begin (b) A project is eligible to receive a grant under this section only if it fulfills needs
identified in the needs assessment conducted under section 115A.1429 and assists producers
to meet the requirements of section 115A.1435 or 115A.1436.
new text end

new text begin (c) Reuse grants may be used to invest in collection systems, washing systems, and
technology for tracking and data collection and to make capital expenditures on new and
emerging recycling technology, equipment, or facilities.
new text end

new text begin (d) A grant awarded for reuse infrastructure or education must meet at least one of the
following goals:
new text end

new text begin (1) increase transition of the packaging material from nonreusable to reusable;
new text end

new text begin (2) increase access to reuse infrastructure in the state;
new text end

new text begin (3) promote the circular economy;
new text end

new text begin (4) develop reuse instructions that are, to the extent practicable, consistent statewide,
easy to understand, and easily accessible; and
new text end

new text begin (5) develop, in consultation with local governments and other stakeholders, reuse outreach
and education programs and materials that are coordinated across regions of the state.
new text end

new text begin (e) The commissioner must review all grants proposed to be awarded by the product
stewardship organization under this section. No grant may be awarded under this section
that has not been approved by the commissioner.
new text end

new text begin (f) The commissioner must approve or deny a grant award proposed by the product
stewardship organization within 90 days of receiving a request for review from the product
stewardship organization.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

new text begin [115A.1433] GRANTS TO POLITICAL SUBDIVISIONS AND MINNESOTA
TRIBAL GOVERNMENTS.
new text end

new text begin (a) The commissioner must adopt rules specifying the manner in which the product
stewardship organization must provide funding to political subdivisions and Minnesota
Tribal governments to address recycling needs, as determined by the needs assessment
under section 115A.1429.
new text end

new text begin (b) Political subdivisions and Minnesota Tribal governments are eligible to receive
funding only if they provide recycling services to all residents or members within their
jurisdictional control.
new text end

new text begin (c) Two or more political subdivisions or Minnesota Tribal governments that provide
recycling services may elect to jointly receive funding, provided that they demonstrate that
their recycling services are interconnected.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

new text begin [115A.1434] NONREUSABLE PACKAGING REDUCTION
REQUIREMENTS.
new text end

new text begin (a) A producer must reduce the total amount of nonreusable packaging by unit, on average
and in the aggregate, across its brand according to the following schedule, measured by the
length of time following the selection of the product stewardship organization under section
115A.1424:
new text end

new text begin (1) by ten percent, two years after;
new text end

new text begin (2) by 20 percent, four years after;
new text end

new text begin (3) by 30 percent, six years after;
new text end

new text begin (4) by 40 percent, eight years after; and
new text end

new text begin (5) by 50 percent, ten years after.
new text end

new text begin (b) The reductions required in paragraph (a) must be measured against the total amount
of packaging the producer sold, offered for sale, or distributed for sale in the state during
the calendar year in which this section became effective. For producers that did not sell,
offer for sale, or distribute for sale any packaging during the calendar year in which this
section became effective, the reductions required in paragraph (a) must be measured against
the first calendar year for which there is data on the amount of packaging the producer sold,
offered for sale, or distributed for sale in the state.
new text end

new text begin (c) The reductions required in this section may be achieved by eliminating nonreusable
packaging or by transitioning to a reuse model.
new text end

new text begin (d) A producer must report its compliance with the requirements of the applicable clause
of paragraph (a) to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

new text begin [115A.1435] CRITERIA FOR NUMBER OF USES IN REUSE SYSTEMS.
new text end

new text begin The commissioner must adopt rules that specify the minimum number of reuse cycles
required for each type of packaging material to be considered reusable, including but not
limited to:
new text end

new text begin (1) cups: a minimum of 125 uses;
new text end

new text begin (2) clamshells: a minimum of 50 uses;
new text end

new text begin (3) plates: a minimum of 63 uses; and
new text end

new text begin (4) glass bottles: a minimum of 20 uses.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

new text begin [115A.1436] RECYCLING OR POSTCONSUMER RECYCLED
MATERIAL; REQUIREMENTS.
new text end

new text begin (a) Each producer must ensure that all nonreusable packaging across its brand:
new text end

new text begin (1) is recycled at a rate of, at a minimum:
new text end

new text begin (i) 50 percent, five years after the selection of the product stewardship organization;
new text end

new text begin (ii) 80 percent, eight years after the selection of the product stewardship organization;
and
new text end

new text begin (iii) 90 percent, 12 years after the selection of the product stewardship organization; or
new text end

new text begin (2) incorporates, on average and in the aggregate, the following amount, by weight, of
postconsumer recycled material:
new text end

new text begin (i) 50 percent, five years after the selection of the product stewardship organization;
new text end

new text begin (ii) 80 percent, five years after the selection of the product stewardship organization;
and
new text end

new text begin (iii) 90 percent, 12 years after the selection of the product stewardship organization.
new text end

new text begin (b) In determining a producer's compliance with this section, a producer must rely on
the state data regarding packaging sales and material use, if available, or may alternatively
rely on the same type of data applicable to a region or territory of the United States that
includes the state.
new text end

new text begin (c) If a producer elects to rely on data regarding packaging sales and materials used
derived from data applicable to a region or territory of the United States that includes the
state, the producer must:
new text end

new text begin (1) prorate the regional or territorial data to estimate the state-specific figures based on
market share or population in a manner that ensures that the percentage of postconsumer
recycled material calculated for beverage containers sold in the state is the same percentage
as calculated for the larger region or territory; and
new text end

new text begin (2) document the methodology used to estimate the state-specific figures calculated
under clause (1).
new text end

new text begin (d) The commissioner may assess an administrative penalty under section 116.072 against
a producer that fails to comply with this section, calculated as follows:
new text end

new text begin (1) the commissioner must add the total amount by weight in pounds of postconsumer
recycled material and the total amount by weight in pounds of material that is not
postconsumer recycled material used by the producer in all the packaging the producer sold,
offered for sale, or distributed for sale in the state during the previous calendar year. Unless
otherwise determined by the commissioner, the figure calculated under this clause must be
calculated using the information reported by the manufacturer under paragraph (b);
new text end

new text begin (2) the commissioner must multiply the figure calculated under clause (1) by the
applicable minimum postconsumer recycled material percentage required under paragraph
(a), clause (2), during the previous calendar year;
new text end

new text begin (3) the commissioner must subtract from the figure calculated under clause (2) the total
amount by weight in pounds of postconsumer recycled material used by the producer in all
products the producer sold, offered for sale, or distributed for sale in packaging in the state
during the previous calendar years; and
new text end

new text begin (4) the commissioner must multiply that figure calculated under clause (3) by $0.20. If
the figure calculated under this clause is less than or equal to zero, the commissioner may
not assess an administrative penalty.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

new text begin [115A.1437] TOXIC SUBSTANCES IN PACKAGING.
new text end

new text begin (a) Beginning one year after the effective date of this section, no person may manufacture,
knowingly sell, offer for sale, distribute for sale, or distribute for use in the state packaging
or reusable products containing any of the following toxic substances above the practical
quantification limit:
new text end

new text begin (1) ortho-phthalates;
new text end

new text begin (2) bisphenols;
new text end

new text begin (3) perfluoroalkyl and polyfluoroalkyl substances (PFAS);
new text end

new text begin (4) lead and lead compounds;
new text end

new text begin (5) hexavalent chromium and compounds;
new text end

new text begin (6) cadmium and cadmium compounds;
new text end

new text begin (7) mercury and mercury compounds;
new text end

new text begin (8) benzophenone and its derivatives;
new text end

new text begin (9) halogenated flame retardants;
new text end

new text begin (10) perchlorate;
new text end

new text begin (11) formaldehyde; and
new text end

new text begin (12) toluene.
new text end

new text begin (b) Beginning one year after the effective date of this section, no person may manufacture,
knowingly sell, offer for sale, distribute for sale, or distribute for use in the state packaging
or reusable products containing:
new text end

new text begin (1) polyvinyl chloride;
new text end

new text begin (2) polystyrene; or
new text end

new text begin (3) polycarbonate.
new text end

new text begin (c) Beginning three years after the effective date of this section and every three years
thereafter, the commissioner must, in collaboration with the Department of Health, designate
at least ten but no more than 20 toxic substances in packaging, unless the commissioner
determines that fewer than ten chemicals meet the definition of toxic substances. If the
commissioner determines that fewer than ten toxic substances meet the definition, the
commissioner must publish a detailed statement of findings and conclusions supporting the
determination.
new text end

new text begin (d) Within 180 days of designating a toxic substance under paragraph (a), the
commissioner must adopt rules to prohibit the newly designated toxic substance in packaging,
with an effective date no later than two years after the rules are adopted.
new text end

new text begin (e) Beginning three years after the effective date of this section, a person may petition
the commissioner to add a chemical or chemical class to the list of toxic substances in
packaging. A petition must contain information that supports designating the chemical or
chemical class as a toxic substance in packaging. Within 90 days of receiving a petition,
the commissioner must either grant or deny the petition and publish a written explanation
of the reasons for the decision. If the commissioner grants the petition in whole or part, the
commissioner must designate the chemical or chemical class as a toxic substance in
packaging and adopt rules within 180 days to prohibit the newly designated chemicals in
packaging, with an effective date no later than two years after the rules are adopted.
new text end

new text begin (f) A producer that violates this section is subject to penalties according to the
commissioner's rules. Notwithstanding any law to the contrary, any producer, distributor,
retailer, or other responsible party that violates this section is subject to a fine for each
violation and for each day that the violation occurs in an amount of not more than $200,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

new text begin [115A.1438] ANNUAL PRODUCT STEWARDSHIP PROGRAM REPORT.
new text end

new text begin (a) Beginning one year after the product stewardship organization begins to collect fees
from producers, and on an annual basis thereafter, the commissioner, with the assistance of
the product stewardship organization, must submit a product stewardship program report
to the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over environment policy and finance.
new text end

new text begin (b) The report must include, at a minimum:
new text end

new text begin (1) a list of all participating producers and the brands of products associated with each
producer;
new text end

new text begin (2) the number of units of packaging and type of packaging products, both nonreusable
and reusable, that were sold, offered for sale, or distributed in the state;
new text end

new text begin (3) a list of all packaging materials that are readily recyclable in the state;
new text end

new text begin (4) results of an audit of inbound and outbound readily recyclable packaging material
processed and sold within the state;
new text end

new text begin (5) a waste characterization study that specifies the quantity in tons of packaging material
in the waste stream, according to types of uses;
new text end

new text begin (6) a statewide litter survey that identifies the quantity of packaging material in litter
according to types of packaging material and the brands that produce the material;
new text end

new text begin (7) a list of the amount of packaging material, by packaging material type, sold or offered
for sale in the state that year;
new text end

new text begin (8) a description of grant awards made under section 115A.1432;
new text end

new text begin (9) the compliance of producers with the toxic substances ban under section 115A.1437;
and
new text end

new text begin (10) an assessment of program performance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

new text begin [115A.1439] PRODUCER COMPLIANCE INFORMATION.
new text end

new text begin The product stewardship organization must provide the commissioner with a regularly
updated list of producers that are participating in the program and a list of UPCs of products
for which each producer has complied with the program's requirements and, if known to
the product stewardship organization, a list of producers that are not participating in the
program and are not compliant with the program's requirements. The commissioner must
post the information under this section on the agency website.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

new text begin [115A.1440] ENFORCEMENT.
new text end

new text begin (a) The commissioner must enforce sections 115A.1421 to 115A.1443 under sections
115.071 and 116.072. The commissioner may request a certificate of compliance from a
producer that attests that a producer's products meet the requirements of sections 115A.1421
to 115A.1443 and is signed by an authorized official of the producer. The commissioner
must post any certificate of compliance on the agency website for public access.
new text end

new text begin (b) The commissioner may bring a civil action to enjoin the sale, distribution, or
importation into the state of a packaging material in violation of sections 115A.1421 to
115A.1443.
new text end

new text begin (c) The penalties provided for in this section may be recovered in a civil action brought
by the attorney general.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

new text begin [115A.1441] LABELING.
new text end

new text begin (a) A producer must affix a label to all packaging material sold, offered for sale, or
distributed for sale in or into the state containing information from one of the following
clauses, in a format approved by the commissioner:
new text end

new text begin (1) the percentage of postconsumer recycled material in the packaging material;
new text end

new text begin (2) whether the packaging material is readily recyclable and how to recycle it; or
new text end

new text begin (3) whether the packaging material is compostable.
new text end

new text begin (b) All packaging material sold in the state must conform with the uniform labeling
system required by this section. Packaging that does not meet the requirements of this section
may not be sold, offered for sale, or distributed for sale in the state beginning two years
after the effective date of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22.

new text begin [115A.1442] ANTICOMPETITIVE CONDUCT.
new text end

new text begin (a) A producer that organizes collection or recycling under sections 115A.1421 to
115A.1443 is authorized to engage in anticompetitive conduct to the extent necessary to
plan and implement its chosen organized collection or recycling system and is immune from
liability under state laws relating to antitrust, restraint of trade, unfair trade practices, and
other regulation of trade or commerce.
new text end

new text begin (b) An organization of producers, an individual producer, and a producer's officers,
members, employees, and agents who cooperate with a political subdivision that organizes
collection or recycling under sections 115A.1421 to 115A.1443 are authorized to engage
in anticompetitive conduct to the extent necessary to plan and implement the organized
collection or recycling system, provided that the political subdivision actively supervises
the participation of each entity. An organization, entity, or person covered by this paragraph
is immune from liability under state law relating to antitrust, restraint of trade, unfair trade
practices, and other regulation of trade or commerce.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23.

new text begin [115A.1443] RULEMAKING.
new text end

new text begin The commissioner must, no later than one year after the effective date of this section,
adopt rules according to chapter 14 necessary to implement, administer, and enforce sections
115A.1421 to 115A.1443 .
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end