2024 -- S 3144

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LC006221

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

____________

A N   A C T

RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT

RECYCLING ACT

     Introduced By: Senators Valverde, McKenney, DiMario, Miller, Kallman, Euer,
Sosnowski, Murray, Gu, and Pearson

     Date Introduced: June 06, 2024

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

     SECTION 1. The general assembly makes the following findings of fact:

     (1) Single-use beverage containers are significant contributors to litter and marine debris;

     (2) Recycling collection for beverage containers in Rhode Island currently is low, while

recycling collection rates for beverage containers in states that have a beverage container return

system have significantly reduced litter and debris;

     (3) Source-separated beverage containers collected via container deposit systems are more

likely to be recycled into new beverage containers than are containers collected via mixed-stream

recycling;

     (4) Container deposit systems help create environmentally friendly local jobs; and

     (5) It is in the best interests of the health, safety, and welfare of residents and visitors to

Rhode Island to protect our environment and our natural resources by instituting recycling rates

and waste diversion through a container deposit system.

     SECTION 2. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

amended by adding thereto the following chapter:

CHAPTER 19.19

BEVERAGE CONTAINER DEPOSIT RECYCLING ACT

     23-19.19-1. Definitions.

     As used in this chapter the following words and terms are construed as follows:

     (1) "Applicable refund value" means the value established under § 23-19.19-7.

     (2) "Beverage" means a drinkable liquid intended for human oral consumption. Beverage

does not include:

     (i) A drug regulated under the federal Food, Drug, and Cosmetic Act, 21 U. S. C. § 301 et

seq.;

     (ii) One hundred percent (100%) fluid milk;

     (iii) Infant formula; or

     (iv) A meal replacement liquid.

     (3) "Beverage consumer" means an individual in the state who purchases a beverage in a

beverage container for use or consumption.

     (4) "Beverage container" means a prepackaged container designed to hold a beverage that

is made of any material, including glass, plastic, and metal, or a combination thereof, and has a

volume which is not less than fifty milliliters (50 ml), nor greater than three liters (3L).

     (5) "Beverage container processing mechanism" means any method, manual or

technological, that properly identifies and processes empty beverage containers that are eligible for

redemption.

     (6) "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.

     (7) "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.

     (8) "Coordination plan" means a plan developed by one or more producer responsibility

organizations to ensure their activities are coordinated to meet the requirements of this chapter.

     (9) "Corporation" means the Rhode Island resource recovery corporation established

pursuant to the provisions of § 23-19-6.

     (10) "Department" means the Rhode Island department of environment management

("DEM").

     (11) "Drop-off facility" means a specific area where individuals may bring beverage

containers or covered materials to place into material-specific receptacles.

     (12) "Material recovery facility" means a facility that receives, separates, and sells or

otherwise distributes postconsumer materials for recycling to responsible end markets.

     (13) "Mechanical recycling" means a form of recycling that does not change the basic

molecular structure of the material being recycled.

     (14) "Postconsumer material" means material generated by households or by commercial,

and institutional facilities in their role as end users of the product which has been used for its

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intended purpose and discarded. This material includes returns of material from the distribution

chain.

     (15) "Postconsumer recycled content" means the proportion of a covered material or

beverage container composed of postconsumer material, expressed as a percentage of the total

weight of the covered material or beverage container. Postconsumer recycled content shall be third-

party certified when third-party certification is available for the material type and approved for use

in the program by the department.

     (16) "Postconsumer recycled content rate" means the amount of post-consumer recycled

content used to manufacture the covered material or beverage container divided by the total amount

of materials used to manufacture the covered material or beverage container.

     (17) "Producer" means the following person responsible for compliance with requirements

under §§ 23-19.19-2 and 23-19.19-3 for a covered beverage container sold, offered for sale, or

distributed in the state.

     (i) For beverage containers sold at a physical retail location in the state:

     (A) If the beverage container is sold in packaging under the manufacturer's own brand or

is sold in packaging that lacks identification of a brand, the producer is the person that manufactures

the beverage container;

     (B) If there is no person to which subsection (17)(i)(A) of this section applies, the producer

is the person that is licensed to sell or offer for sale to consumers in the state an item with packaging

under the brand or trademark 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;

     (C) If there is no person to which no other provision of this subsection applies, the producer

of the beverage container is the brand owner of the item; or

     (D) If there is no person described in the provisions of this subsection located in the United

States, the producer is the person that imports the item into the United States for use in a commercial

enterprise that sells, offers for sale, or distributes the item in the state;

     (E) For beverage containers in the state via remote sale or distribution, the producer is the

person that packages and ships the product or group of products; and

     (ii) If the producer 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.

Producer does not include a person that annually sells, offers for sale, distributes, or imports in or

into the state less than one ton of covered products, and has a global gross revenue of less than two

million dollars ($2,000,000) for the person's most recent fiscal year.

     (18) "Producer responsibility organization" or "PRO" means a nonprofit organization that

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qualifies for a tax exemption under 26 U.S.C. Sec. 501(c)(3) of the Federal Internal Revenue Code

and is designated by a beverage producer or group of beverage producers to carry out the activities

required of beverage producers by this chapter, and selected or approved by the department

pursuant to the provisions of § 23-19.19-2.

     (19) "Producer responsibility plan" means a document describing the activities of an

organization to carry out the responsibilities of producers under §§ 23-19.19-2 and 23-19.19-3.

     (20) "Program year" means January 1 through December 31 of a calendar year.

     (21) "Public place" means an indoor or outdoor location open to and generally used by the

public and to which the public is permitted to have access including, but not limited to, streets,

sidewalks, plazas, town squares, public parks, beaches, sports facilities, forests, or other public land

open for recreation or other uses, and transportation facilities such as bus and train stations, airports,

and ferry terminals.

     (22) "Public service provider" means a political subdivision that provides or that contracts

or otherwise arranges with another party to provide collection, recycling, composting, or reuse

services for covered materials within its jurisdiction.

     (23) "Recycling" or "recycle" means the process of collecting, sorting, and processing

materials at a responsible end market and returning them to, or maintaining them within, the

economic mainstream in the form of recovered material for new, reused, or reconstituted products

which meet the quality standards necessary to be used in the marketplace. Recycling shall not

include combustion, fuel production, and other forms of energy recovery or disposal.

     (24) "Recycling rate" means the amount of recycled covered material or beverage

containers in a plan year divided by the total amount of covered material or beverage containers

sold in the state by weight and/or unit.

     (25) "Refillable packaging" means packaging designed to be refilled by consumers

multiple times for the same or similar purpose in its original format, and that is sold or provided to

consumers once for the duration of its usable life.

     (26) "Responsible end market" means a materials market that:

     (i) Recycles, composts, or otherwise recovers materials and disposes of contaminants in a

manner that minimizes risks, environmental harm, public health and worker health and safety;

     (ii) Complies with all applicable international treaties, federal, state, and local laws and

regulations governing greenhouse gas emission and air and water quality standards, trade

regulation, and human rights and labor standards;

     (iii) Does not disproportionately burden environmental justice areas and low-income

communities with negative human health and environmental impacts of pollution or other

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environmental hazards resulting from the operation of the end market; and

     (iv) Possesses all requisite licenses and permits required by government agencies.

     (27) "Retailer" means any established person, department, partnership, business, facility,

vendor, organization, or individual that sells or provides merchandise, goods, or materials directly

to a customer.

     (28) "Returnable reusable packaging" means packaging designed to be recirculated

multiple times for the same or similar purpose in its original format in a system for reuse, that is

owned by producers or a third party and is returned to producers or a third party after each use.

     (29) "Reuse" means the return of returnable reusable packaging to the marketplace and the

continued use of the returnable reusable packaging for its original intended purpose.

     (30) "Reuse rate" means the amount of returnable reusable packaging or beverage container

measured per item that is reused by unit divided by the total amount of returnable reusable

packaging or beverage container measured per item sold into the state.

     (31) "Service provider" means an entity that provides collection, recycling, composting, or

reuse services under a producer responsibility plan.

     (32) "Single-use" means conventionally discarded after a single use or not sufficiently

durable or washable to be, or not intended to be, reusable or refillable.

     (33) "Source reduction” means the reduction in the amount of covered material created by

a producer relative to an established baseline. Methods of source reduction include, but are not

limited to, shifting covered material to returnable, reusable or refillable packaging or a reusable

product or eliminating unnecessary packaging. Source reduction does not include either of the

following:

     (i) Replacing a recyclable or compostable covered material with a nonrecyclable or

noncompostable covered material or a covered material that is less likely to be recycled or

composted; or

     (ii) Switching from virgin covered material to postconsumer recycled content.

     (34) "Store" means an individual location where a retailer sells beverage containers.

     23-19.19-2. Producer registration.

     (a) On and after July 1, 2025, no beverage container may be sold, offered for sale, or

distributed in the state unless the producer of a beverage has signed a written agreement with a

producer responsibility organization ("PRO") to operate under an approved producer responsibility

plan, and the PRO is registered in accordance with the provisions of this section.

     (b) Until the expiration of the first producer responsibility plans approved by the

department, all producers shall enter into an agreement with the selected PRO which shall represent

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all producers. After such time, if the department approves more than one PRO, producers shall

choose one PRO with which to register. The department, in compliance with the provisions of

chapter 35 of title 42 ("administrative procedures"), may establish a handling fee to be paid by

participants to the PRO

     (c) No later than July 1, 2025, the department shall provide written notice to PRO of the

department's estimate of the department's cost to administer the beverage container recycling

program during the period before the initial registration of the PRO, and the amount to be paid.

     (d) Within thirty (30) days of receipt of the notice from the department under subsection

(c) of this section, the PRO shall remit payment for those costs in full to the department.

     (e) By July 1 each year after initial selection, pursuant to this section, every PRO shall

register with the department by submitting the following:

     (1) Contact information for a person responsible for implementing the producer

responsibility plan;

     (2) A list of all member producers and, for each producer, a list of all brands of the

producer’s covered materials sold, offered for sale, or distributed in the state;

     (3) Copies of written agreements with each producer stating that the PRO is the producer's

agent with respect to fulfilling the responsibilities of producers required under §§ 23-19.19-2 and

23-19.19-3 and that the producer pledges to comply with those provisions;

     (4) A list of current board members and the executive director if different than the person

responsible for implementing the producer responsibility plan; and

     (5) Payment of the annual fee required under this section.

     (f) As part of the annual registration filing with the department, the PRO shall submit to

the department an annual fee for the following year, as determined by the department. By May 1

each year, the department shall notify the PRO in writing of the amount of the fee for the following

year, which may not exceed the department's estimate of the costs required to:

     (1) Administer, implement, and enforce the provisions of § 23-19.19-3;

     (2) Conduct rulemaking to implement the provisions of § 23-19.19-3, if applicable.

     23-19.19-3. Beverage container recycling refund program.

     (a) No later than July 1, 2025, the department shall select a single PRO to implement

activities under the selected beverage PRO and shall:

     (1) Be an independent nonprofit organization that qualifies for a tax exemption under 26

U.S.C. § 501(c)(3) of the Federal Internal Revenue Code;

     (2) Have a governing board that represents the diversity of beverage containers placed on

the market by those entities, and of producers in terms of size; and

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     (3) Have adequate financial responsibility and financial controls in place to ensure proper

management of funds.

     (b) No later than January 1, 2025, producers of beverage containers shall form and join a

beverage PRO for the purposes of complying with the provisions of this chapter. The governing

body of the beverage PRO shall submit an application to the department describing how the PRO

meets the requirements to be an approved PRO pursuant to the provisions of this chapter.

     23-19.19-4. Beverage producer responsibility plan.

     (a) On or before July 1, 2026, and every five (5) years thereafter, the initial PRO selected

pursuant to § 23-19.19-3(a) shall submit a stewardship plan to the department describing the

proposed operation of programs to fulfill the requirements of this chapter. Updated and revised

stewardship plans shall be filed with the department at a minimum every five (5) years for every

PRO as directed by the department. The beverage producer responsibility plan shall describe

activities to be undertaken during the next five (5) program years and shall, at a minimum:

     (1) Describe how the PRO, acting on behalf of producers of beverages proposes to:

     (i) Meet performance targets for reuse, recycling, redemption, and recycled content as

described in this chapter;

     (ii) Incorporate as program objectives the reduction of waste, expansion of reuse systems,

and improved design of beverage containers;

     (iii) Reduce toxicity of beverage containers through proof of testing and provide technical

assistance on compliance with the provisions of this chapter; and

     (iv) Expand convenient reuse, redemption, and recycling services.

     (2) Summarize consultations held with stakeholders to provide input to the beverage

producer responsibility plan, a list of recommendations that were incorporated into the beverage

producer responsibility plan as a result, and a list of rejected recommendations and the reasons for

rejection;

     (3) Describe how the program uses and interacts with existing reuse, collection, and

recycling efforts and service providers;

     (4) Include a list of beverage containers designated for collection and the method of

collection to be used for each;

     (5) Propose annual performance targets for source reduction, rates of reuse, recycling, and

postconsumer recycled content for beverage containers, as applicable, and include how these

annual performance targets shall meet the requirements of this chapter;

     (6) Describe expanded and improved operations specifically designed to ensure that the

performance targets and capture rates are met;

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     (7) Include a plan for beverage container redemption and processing mechanisms that

provides equitable and convenient access across the state;

     (8) Include a proposed budget for each of the next five (5) program years;

     (9) Include proposed beverage producer fees and describe the process used to calculate

beverage producer fees;

     (10) Certify that the PRO will treat data submitted by service providers as nonpublic data;

     (11) Discuss the viability of available markets for beverage containers, and what

improvements are needed to markets to improve program performance and ensure that performance

targets are met;

     (12) Describe proposed campaigns to educate consumers about how to access beverage

container redemption and processing mechanisms;

     (13) Describe how the PRO intends to assist producers in improving product labels as a

means of informing consumers about the program;

     (14) Include a plan for how the beverage PRO shall ensure the measure of recycled

materials;

     (15) Describe how the PRO shall coordinate with any packaging related to the PRO;

     (16) Describe how the PRO shall return recycling refund amounts to material recovery

facilities (MRFs) for the beverage containers processed in recovery facilities; and

     (17) Include a plan for adopting verifications by independent third parties, as applicable.

     (b) The department shall review each beverage producer responsibility plan and approve,

modify, or reject it within one hundred twenty (120) days of receipt, providing reasons for

modification or rejection in writing to the organization. The PRO shall submit a revised beverage

producer responsibility plan, if necessary, within sixty (60) days of receiving the department's

decision. The department shall review a revised beverage producer responsibility plan within forty-

five (45) days of receipt. The department may require submission of additional revised beverage

producer responsibility plans until a revised beverage producer responsibility plan is approved. The

department shall conduct the review and approval process pursuant to the provisions of chapter 35

of title 42 ("administrative procedures").

     (c) A PRO may file a proposed amendment to the beverage producer responsibility plan

with the department at any time. The department may approve, modify, or reject the proposed

amendment. A beverage PRO may not change operations under an approved beverage producer

responsibility plan without the department's written approval.

     (d) The department may require amending a beverage producer responsibility plan if the

department determines that an amendment is necessary to ensure that the PRO maintains progress

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to meet annual performance targets and the goals for the beverage producer responsibility plan. The

PRO shall address any comments and feedback and shall list rejected recommendations and the

reasons for rejection during the amendment approval process.

     23-19.19-5. Performance goals.

     (a) Beginning the first month after all beverage containers are sold, offered for sale, or

distributed in the state with the applicable refund value, all redeemed beverage containers shall be

recycled or reused.

     (b) The PRO shall meet the following performance targets for redemption:

     (1) Beginning two (2) years after all beverage containers are sold in the state with the

applicable refund value, at least seventy percent (70%) annual redemption for all beverage

containers;

     (2) Beginning four (4) years after all beverage containers are sold in the state with the

applicable refund value, at least seventy-five percent (75%) annual redemption for all beverage

containers;

     (3) Beginning six (6) years after all beverage containers are sold in the state with the

applicable refund value, at least eighty-five percent (85%) annual redemption for all beverage

containers; and

     (4) Beginning eight (8) years after all beverage containers are sold in the state with the

applicable refund value, at least ninety percent (90%) annually of all beverage containers redeemed.

     (c) Each beverage producer or the beverage PRO shall meet the following reuse rates:

     (1) By the end of the first beverage producer responsibility plan, or not later than seven (7)

years after the effective date of this chapter, whichever is sooner, a minimum of fifteen percent

(15%) of beverage containers shall be reusable; and

     (2) By the end of the second beverage producer responsibility plan, or not later than twelve

(12) years after the effective date of this chapter, whichever is sooner, a minimum of twenty-five

percent (25%) of beverage containers shall be reusable.

     (3) After the second beverage producer responsibility plan, the department may adjust the

reuse performance targets for subsequent beverage producer responsibility plans. An adjustment to

the performance targets shall not be less than the performance target in subsection (b)(2) of this

section.

     (d) Each individual producer shall meet the following minimum recycled content

requirements for all beverage containers and shall report compliance with the targets through the

PRO by the end of the first stewardship plan, or no later than seven (7) years after the effective date

of this chapter:

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     (1) All glass beverage containers manufactured in the state used by the producer shall

contain, on average, at least thirty-five percent (35%) postconsumer recycled content;

     (2) All polyethylene terephthalate (PET) beverage containers sold, offered for sale or

distributed in the state shall contain, on average, at least forty-five percent (45%) postconsumer

recycled content;

     (3) All high-density polyethylene (HDPE) beverage containers sold, offered for sale or

distributed in the state shall contain, on average, at least twenty-five percent (25%) postconsumer

recycled content;

     (4) All polypropylene (PP) beverage containers sold, offered for sale or distributed in the

state shall contain, on average, at least twenty-five percent (25%) postconsumer recycled content;

and

     (5) All aluminum beverage containers sold, offered for sale or distributed in the state shall

contain, on average, at least fifty percent (50%) postconsumer recycled content.

     (e) The department may adjust the performance targets in subsection (d) of this section or

add performance targets for additional beverage container types based on information gathered

during the needs assessment or provided in producer stewardship plans and reports. An adjustment

to the performance targets shall not adjust minimum recycled content requirements to less than five

percent (5%) of the targets set in subsection (d) of this section.

     23-19.19-6. Beverage producer fees.

     (a) The PRO shall collect an annual fee from its members that:

     (1) Is based on the total amount of beverage containers each producer sells, offers for sale,

or distributes in the state in the prior calendar year calculated on a per-unit basis;

     (2) Incentivize using materials and design attributes that reduce environmental impacts and

human health impacts of beverage containers, by the following methods in order of priority:

     (i) Eliminating the presence of toxic substances;

     (ii) Reducing the amount of packaging per individual beverage container that is necessary

to efficiently deliver a product without damage or spoilage and without reducing its ability to be

recycled;

     (iii) Increasing beverage containers managed in a reuse system;

     (iv) Enhancing recyclability of beverage containers; and

     (v) Increasing the proportion of postconsumer material used to produce beverage

containers;

     (3) Prioritizes reuse by charging covered materials that are managed through a reuse system

only once;

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     (4) Collects revenues sufficient to pay in full:

     (i) The annual registration payment required;

     (ii) The cost of collecting, sorting, and processing each beverage container type;

     (iii) The cost of ensuring all employees working at facilities to redeem, collect, sort,

aggregate and process materials collected at redemption locations are paid a living wage, receive

health benefits, and have strong labor and work safety practices;

     (iv) The set refund value to material recovery facilities and drop-off facilities as required

by this chapter;

     (v) Costs to provide outreach and education to increase consumer knowledge of how to

manage beverage containers in an environmentally sound manner;

     (vi) Costs for staffing needs at the department and rulemaking to implement the provisions

of this chapter; and

     (5) Collects adequate revenues to allow for establishing and maintaining a financial reserve

that is sufficient to operate the program in a fiscally prudent and responsible manner.

     (b) The fee the organization charges members pursuant to the provisions of this section

shall vary by material type reflecting:

     (1) The cost of collecting, sorting, and processing each beverage container type; and

     (2) The number of units of each beverage container type that the member distributes or

sells in the state.

     (c) With the revenue from the sale of redeemed beverage containers, the organization shall

credit each member against the fee charged under subsection (b) of this section based on:

     (1) The revenue generated from the sale of each beverage container type; and

     (2) The percentage of each beverage container type that a member distributes or sells in the

state.

     (d) Fees collected under this section shall not be used for costs associated with:

     (1) An administrative civil penalty pursuant to this chapter;

     (2) Costs associated with litigation between the producer or organization and the state;

     (3) For lobbying by or on behalf of a PRO or any of its members; or

     (4) To subsidize, incentivize or otherwise support incineration, engineered municipal solid

waste conversion, gasification, pyrolysis, high heat burning or the production of energy or fuels,

except for fuels produced using anaerobic digestion of source separated organic materials, or other

disposal activities.

     (e) Any fees collected under this section in excess of the costs identified in subsection (a)

of this section and the amount of any unclaimed deposits shall be deposited in a restricted receipt

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account, and shall be reinvested to improve consumer education, collection, recycling, and reuse

programs.

     23-19.19-7. Applicable refund value.

     (a) Every beverage container sold or offered for sale in the state shall have a refund value

of ten cents ($0.10).

     (b) If the PRO’s redemption rate required under this section shows that the redemption

rate does not reach ninety percent (90%) for three (3) years in a row after being required to reach a

ninety percent (90%) redemption target under this chapter then every beverage container sold or

offered for sale in the state shall have the following refund value of fifteen cents ($0.15) for each

beverage container, and the PRO shall conduct a study to determine whether any education or

convenience factors of the plan need to be strengthened.

     23-19.19-8. Nonredeemable material.

     Excluding the material recovery facility and drop-off facility payments in this chapter, the

PRO is not required to pay refunds on:

     (1) A beverage container visibly containing, or contaminated by, a substance other than

water, residue of the original contents, or ordinary dust;

     (2) A beverage container that is:

     (i) Crushed or broken; or

     (ii) Damaged to the extent that the brand appearing on the container cannot be identified;

     (3) A beverage container that the PRO has reasonable grounds to believe was bought in

another state; or

     (4) A beverage container for which the PRO has reasonable grounds to believe a refund

has already been given.

     23-19.19-9. Labeling.

     (a) A beverage producer of a beverage container that is sold in the state shall clearly display

on the top or side of the beverage container the abbreviation "RV," which indicates the container

has a refund value.

     (b) A beverage producer of a beverage container that is sold in the state shall clearly display

on the top or side of the beverage container the abbreviation of the state and the applicable refund

value.

     (c) A producer of a beverage that is sold in the state may include a barcode or unique code

verification on the beverage container to allow for automated identification to be registered with

the department with information required pursuant to § 23-19.19-2.

     23-19.19-10. Timing.

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     All beverage containers that are made of ninety percent (90%) or more aluminum, glass,

high density polyethylene plastic, polypropylene, or polyethylene terephthalate and sold in the state

shall have the applicable refund value no later than two (2) years after the effective date of this

chapter. All other beverage containers that are sold in the state shall have the applicable refund

value no later than three (3) years after the effective date of this chapter.

     23-19.19-11. Refund value to drop-off facilities and material recovery facilities.

     (a) On a monthly basis, the operator of a material recovery facility or drop-off facility may

submit the following information to the PRO:

     (1) The number of tons of beverage containers the facility received for processing in the

previous month; and

     (2) An estimate of the number of tons under subsection (a)(1) of this section that were

received from households in the state.

     (b) Starting after the first full month that beverage containers are sold with the applicable

refund value, the PRO shall make a monthly payment directly to each material recovery facility

and drop-off facility operator that is based on the data submitted by the material recovery facility

and drop-off facility operators under subsection (a) of this section.

     (c) The monthly payment required in subsection (b) of this section to material recovery

facilities and drop-off facilities shall reflect a payment of at least sixty percent (60%) of the refund

value for beverage containers for each beverage container that the material recovery facility or

drop-off facility recycles.

     (d) Material recovery facilities and drop-off facilities shall use the methodology specified

in the beverage producer responsibility plan to determine the average amount of redeemable

beverage containers per ton of material recycled.

     (e) The operators of material recovery facilities and drop-off facilities shall use an industry-

standard scale to measure the weight of all beverage containers that enter the facility.

     (f) The PRO may conduct two (2) audits per calendar year on the quality and quantity of

the drop-off facility or material recovery facilities’ material upon request by the organization and

at the organization’s expense.

     23-19.19-12. Education and outreach.

     The beverage container PRO, in collaboration with and after consulting with the

corporation, the department, retailers, and holding at least one public hearing shall:

     (1) Develop and disseminate easy-to-understand, culturally responsive materials in

multiple languages designed to educate consumers regarding the management of beverage

containers that can be reused and the management of beverage containers that can be redeemed;

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     (2) Conduct or fund others to conduct statewide and local campaigns promoting awareness

of how end consumers can conveniently access beverage container collection and redemption

mechanisms to maximize redemption rates; and

     (3) Disseminate education and outreach materials to the department, service providers,

retailers, community organizations, and department.

     23-19.19-13. Prohibitions.

     No person shall knowingly redeem a beverage container in the state that was not sold to a

consumer in the state.

     23-19.19-14. Beverage producer responsibility organization duties.

     (a) The PRO shall be responsible for compliance with this chapter, including the

preparation and implementation of a producer responsibility plan, the achievement of the

performance targets, and the preparation and submission to the department of annual reports and

audits.

     (b) The PRO shall maintain a website that uses best practices for accessibility that contains:

     (1) Information regarding a process that members of the public can use to contact the PRO

with questions;

     (2) A list and map of all redemption locations and what redemption options are available

at each location;

     (3) The draft and approved stewardship plan and any draft and approved amendments;

     (4) Annual reports filed by the PRO; and

     (5) A link to administrative rules and regulations implementing this chapter.

     (c) A beverage PRO shall notify the department within thirty (30) days if a change is made

to the contact information for a person responsible for implementing the stewardship plan, or a

change to the board members.

     (d) The PRO shall pay for:

     (1) Any beverage container redemption or processing mechanism or self-service kiosk that

the PRO installs, services, and operates;

     (2) Any facilities in the state necessary to efficiently aggregate, sort, and process the

material collected at redemption locations;

     (3) The material recovery facility and drop-off facility payments under this chapter; and

     (4) Necessary investments and improvements to provide services to or enhance the

redemption experience of diverse or low-income consumers redeeming beverage containers.

     23-19.19-15. Beverage producer responsibility organization annual report.

     (a) No later than four (4) years after the effective date of this chapter, and each March

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thereafter, the PRO shall submit a written annual report to the department that contains, at a

minimum, the following information for the previous program year:

     (1) The amount of beverage containers sold, offered for sale, or distributed in the state, by

material type;

     (2) The amount of beverage containers redeemed statewide and in each county in the state,

including the amount of covered materials and collection methods utilized;

     (3) The total cost to implement the program and a detailed description of program

expenditures;

     (4) A copy of a financial audit of program operations conducted by an independent third

party approved by the department;

     (5) A list of any beverage producers found to be out of compliance with the requirements

of this chapter and actions taken by the PRO to return the beverage producer to compliance;

     (6) A description of education and outreach activities undertaken, any evaluations

conducted of their efficacy, and plans for next program year's activities;

     (7) A description of technical assistance provided to beverage producers regarding source

reduction and packaging redesign and actions taken by producers to reduce waste and redesign

packaging to be reusable, recyclable, and compostable;

     (8) An evaluation of the process established by the PRO to answer questions from

consumers regarding redemption activities;

     (9) A description of program performance problems that emerged in specific locations and

efforts taken or proposed by the PRO to address them;

     (10) Any proposed amendments to the beverage producer responsibility plan to improve

program performance or reduce costs; and

     (11) A summary of consultations held with stakeholders 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.

     (b) To facilitate preparing the annual report under this section, service providers, public

service providers, and political subdivisions operating under a service agreement with the PRO

shall, if requested, forward relevant data to the PRO. The PRO shall treat any data submitted under

this section as public data.

     (c) A PRO that fails to meet a performance target established in the beverage producer

responsibility plan shall, within ninety (90) days of filing an annual report under this section, file

with the department a report detailing the factors contributing to the failure and propose an

amendment to the beverage producer responsibility plan specifying changes in operations that the

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beverage producer responsibility plan will make that are designed to achieve the following year's

targets.

     23-19.19-16. Coordination plan.

     In the event that a packaging producer responsibility program is established, the packaging

PRO shall establish a coordinating body and process to ensure the efficient delivery of services and

coordinated efforts. These coordinating efforts shall ensure the costs of recycling covered products

and beverage containers are fairly distributed, regardless of which system a consumer returns the

materials through.

     23-19.19-17. Third-party certification.

     The department may adopt requirements that producers or PROs obtain third-party

certification, when available, for the following:

     (1) Postconsumer recycled content;

     (2) Responsible end markets;

     (3) Reusable materials; and

     (4) Recycling, composting, and reuse rates.

     23-19.19-18. Enforcement.

     (a) The department or attorney general may enforce the provisions of this chapter. The

department or attorney general shall first issue a corrective order before pursuing other enforcement

actions.

     (b) The department or attorney general may issue a notice of violation to, and impose an

administrative civil penalty not to exceed fifty thousand dollars ($50,000) per day per violation on

any entity not in compliance with this chapter or any of the regulations the department adopts to

implement this chapter.

     (c) In the event that the department determines that a PRO no longer meets the requirements

of this chapter, including those set forth in §§ 23-19.19-2 and 23-19.19-3, or fails to implement and

administer an approved PRO plan in a manner that effectuates the purposes of this chapter, the

department shall revoke its approval of the PRO and may approve additional PROs pursuant to the

provisions of this chapter.

     (d) If the department determines that a PRO, or producer has not achieved the targets

established pursuant this chapter, the department shall, through a public process, adopt rules and

regulations that place requirements on the PRO, or producers to achieve the targets specified in this

chapter.

     23-19.19-19. Rulemaking authorized.

     The department may adopt rules and regulations to implement the provisions of this chapter

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pursuant to the provisions of chapter 35 of title 42 ("administrative procedures").

     SECTION 3. This act shall take effect on July 1, 2024.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT

RECYCLING ACT

***

     This act would establish a system for the recycling of beverage containers working with

the department of environmental management. Deposits would be paid by the consumer, and the

retailers or redemption centers would be reimbursed a handling fee. The department would by rule

and regulation provide for the establishment, operation, and licensure of redemption centers.

     This act would take effect on July 1, 2024.

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