Bill Text: NY A01749 | 2025-2026 | General Assembly | Introduced


Bill Title: Enacts the "packaging reduction and recycling infrastructure act" to require companies selling, offering for sale, or distributing packaging materials and products to register with a packaging reduction organization to develop a packaging reduction and recycling plan.

Spectrum: Partisan Bill (Democrat 61-2)

Status: (Introduced) 2025-01-14 - referred to environmental conservation [A01749 Detail]

Download: New_York-2025-A01749-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          1749

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    January 14, 2025
                                       ___________

        Introduced  by  M.  of  A.  GLICK,  BURDICK, ROSENTHAL, PAULIN, SHIMSKY,
          COLTON,  REYES,  R. CARROLL,   RAJKUMAR,   GONZALEZ-ROJAS,   LUNSFORD,
          GALLAGHER,  BURKE,  STECK, KELLES, LEVENBERG, RAGA, SIMON, CUNNINGHAM,
          SIMONE, SHRESTHA, DE LOS SANTOS, TAPIA, EACHUS,  SEAWRIGHT,  DINOWITZ,
          EPSTEIN,  HEVESI, ALVAREZ, FORREST, OTIS, GIBBS, STIRPE, RIVERA, CRUZ,
          ANDERSON, RAMOS, WEPRIN, ZINERMAN, MAMDANI, MITAYNES,  BICHOTTE HERME-
          LYN,  LEE,  BARRETT,  JACOBSON,  STERN,  McMAHON,  KIM, TAYLOR, CLARK,
          SAYEGH, BENEDETTO, JACKSON, MEEKS, CONRAD,  DAVILA,  WILLIAMS,  BORES,
          K. BROWN,  BRONSON,  LUCAS, DILAN, DeSTEFANO -- read once and referred
          to the Committee on Environmental Conservation

        AN ACT to amend the  environmental  conservation  law,  in  relation  to
          enacting the packaging reduction and recycling infrastructure act

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "packaging reduction and recycling infrastructure act".
     3    §  2.  Article  27 of the environmental conservation law is amended by
     4  adding a new title 34 to read as follows:
     5                                  TITLE 34
     6            PACKAGING REDUCTION AND RECYCLING INFRASTRUCTURE ACT
     7  Section 27-3401. Definitions.
     8          27-3403. Selection of packaging reduction and  recycling  organ-
     9                    izations.
    10          27-3405. Responsibilities  of  packaging reduction and recycling
    11                    organizations.
    12          27-3407. Packaging reduction and recycling organization plan.
    13          27-3409. Packaging reduction and recycling plan approval.
    14          27-3411. Packaging reduction and recycling advisory council.
    15          27-3413. Funding mechanism.
    16          27-3415. Collection and convenience.
    17          27-3417. Producer responsibilities.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04197-01-5

        A. 1749                             2

     1          27-3419. Department responsibilities.
     2          27-3421. Statewide  packaging  reduction,  reuse,  and recycling
     3                    needs assessment.
     4          27-3423. Education and outreach program.
     5          27-3425. Prohibition on certain toxic substances and materials.
     6          27-3427. Non-reusable packaging reduction standards.
     7          27-3429. Recycled content standards.
     8          27-3431. Recyclability criteria and packaging recycling require-
     9                    ments.
    10          27-3433. Establishment of  the  office  of  recycling  inspector
    11                    general.
    12          27-3435. Penalties and enforcement.
    13          27-3437. Rules and regulations.
    14          27-3439. State preemption.
    15          27-3441. Other assistance programs.
    16          27-3443. Antitrust protections.
    17          27-3445. Severability.
    18  § 27-3401. Definitions.
    19    As used in this title:
    20    1.  "Advisory  council" or "council" means the packaging reduction and
    21  recycling advisory council established under  section  27-3411  of  this
    22  title.
    23    2.  "Affiliate" means a person who directly, or indirectly through one
    24  or more intermediaries, controls, is controlled by, or is  under  common
    25  control with a producer.
    26    3. "Beverage container" shall have the same meaning as is set forth in
    27  subdivision two of section 27-1003 of this article.
    28    4.  "Brand"  means  any  mark,  word, name, symbol, design, device, or
    29  graphical element or a combination thereof, including  a  registered  or
    30  unregistered trademark, that identifies and distinguishes a product from
    31  other products.
    32    5. "Contamination" means:
    33    (a)  the  presence  of  materials in a given collected material stream
    34  that are not on the minimum recyclables list maintained by  the  depart-
    35  ment; or
    36    (b)  the  presence of materials in a given recycled material delivered
    37  as a feedstock or commodity that are not  specified  or  accepted  as  a
    38  component of the feedstock or commodity.
    39    6.   "Control", including the terms "controlling", "controlled by" and
    40  "under common control with", means the possession, directly or indirect-
    41  ly, of the power to direct or cause the direction of (a) the  management
    42  and policies of a person, (b) the operation of a person, or (c) substan-
    43  tially  all  of the assets of a person, whether through the ownership of
    44  voting securities, by contract,  or  otherwise.
    45    7.  "Discarded", "discards", "generated" or "generation" means packag-
    46  ing material that has been used for its intended purpose and is no long-
    47  er needed by consumers, businesses, institutions, and other  users,  and
    48  can be managed through reuse, recycling, or disposal.
    49    8.  "Disposal"  means  the  landfilling or incineration of material or
    50  products.   "Disposal" shall also  include  energy  recovery  or  energy
    51  generation  by  any  means, including, but not limited to, incineration,
    52  combustion, pyrolysis, gasification, or solvolysis, waste-to-energy,  or
    53  waste-to-fuel,  or  any  other  chemical  conversion process. "Disposal"
    54  shall also include the use of materials for landfill cover.
    55    9. "Eco-modulation" means structuring program fees in a way to provide
    56  producers with financial incentives  to  reduce  waste  at  the  source,

        A. 1749                             3

     1  increase  recyclability of packaging materials, promote reusable packag-
     2  ing products, including those that are  contained  within  a  reuse  and
     3  refill  system,  discourage  and  decrease contamination, disincentivize
     4  designs  or  practices that increase the costs and adverse environmental
     5  impacts of managing the packaging materials, and encourage  designs  and
     6  processes  that improve and facilitate development of infrastructure and
     7  systems for source reduction, reuse, recycling, and composting.
     8    10. "Disadvantaged community" shall have the same meaning  as  is  set
     9  forth in subdivision five of 75-0101 of this chapter.
    10    11. "Intentionally added substance" means a substance or material that
    11  serves  an intended function or technical effect in the product or prod-
    12  uct component, including   as an intentional  breakdown  product  of  an
    13  added  chemical  that  also  has a functional or technical effect in the
    14  product or product component.
    15    12. "Local government" means any municipal  corporation,  governmental
    16  subdivision  of  the  state,  local  government  unit, special district,
    17  school, local or regional board, commission, or authority authorized  by
    18  law  to  plan  or  provide  for waste management services for a specific
    19  geographical area.
    20    13. "Minimum recyclables list" means a list of those  materials  that,
    21  identified by the department in regulations, must be managed through the
    22  packaging  reduction  and recycling program and by the local governments
    23  and service providers that receive funding  or  reimbursement  from  the
    24  program as approved by the department in accordance with section 27-3419
    25  of this title.
    26    14.  "Packaging  material"  or "material" means a discrete material or
    27  category of material, regardless of  recyclability,  including  but  not
    28  limited to such material types that are flexible, foam, or rigid materi-
    29  al,  including paper, cardboard, plastic, glass, metal, or multi-materi-
    30  al, that is used for the containment,  protection,  handling,  delivery,
    31  transport,  distribution,  or  presentation  of  another product that is
    32  sold, offered for sale, imported, or distributed in the state, including
    33  through an internet transaction, and single-use plastic products.  Pack-
    34  aging material does not include:
    35    (a)  Medical  devices  and  packaging which are included with products
    36  regulated as a drug, medical device, or dietary supplement by the United
    37  States food and drug administration under the federal  food,  drug,  and
    38  cosmetic  act,  21  U.S.C.  321  et seq., Sec. 3.2(E) of 21 U.S. code of
    39  federal regulations, or the dietary supplement health and education act;
    40    (b) Animal biologics, including vaccines, bacterins,  antisera,  diag-
    41  nostic  kits, and other products of biological origin, and other packag-
    42  ing materials regulated by the United States department  of  agriculture
    43  under the virus, serum, toxin act, 21 U.S.C. 151-159;
    44    (c)  Packaging  regulated  by  the Federal Insecticide, Fungicide, and
    45  Rodenticide Act, 7 U.S.C. Sec. 136 et seq. or other  applicable  federal
    46  law, rule, or regulation;
    47    (d)  Packaging  used  to contain hazardous or flammable products regu-
    48  lated by the 2012 federal Occupational Safety and Health  Administration
    49  Hazard Communications Standard, 29 C.F.R. 1910.1200;
    50    (e)  Plastic  packaging  containers  used to contain and ship products
    51  that are classified for transportation as dangerous goods  or  hazardous
    52  materials under 40 C.F.R. 178;
    53    (f)  Beverage  containers  subject  to  a returnable container deposit
    54  under title ten of this article;
    55    (g) Infant formula as defined in section 321(z) of  title  21  of  the
    56  United States code of federal regulations;

        A. 1749                             4

     1    (h) Medical foods as defined in section 360ee(b)(3) of title 21 of the
     2  United States code of federal regulations; and
     3    (i)  Architectural  paint containers collected and managed pursuant to
     4  title twenty of this article.
     5    15. "Packaging reduction and recycling organization" or "organization"
     6  means a not-for-profit organization registered  pursuant  to  26  U.S.C.
     7  501(c)(3)  designated by the department for the initial organization, or
     8  by a group of producers for subsequent organizations, to act as an agent
     9  on behalf  of  each  producer  to  develop  and  implement  a  packaging
    10  reduction  and  recycling plan pursuant to section 27-3407 of this title
    11  and  comply  with  the  organization's  responsibilities  under  section
    12  27-3405 of this title.
    13    16.  "Packaging  reduction and recycling plan" or "plan" means a docu-
    14  ment in which an organization describes the efforts it will undertake to
    15  comply with the requirements of this title.
    16    17. "Packaging reduction and recycling program" or "program" means the
    17  program implemented by an organization, and overseen by the  department,
    18  to comply with and implement the provisions of this title.
    19    18.  "Post-consumer  recycled  material"  means  new material produced
    20  using material resulting from recycling.
    21    19. "Primary packaging" means the packaging in direct contact with the
    22  product itself, also sometimes referred to as a consumer unit.
    23    20. "Producer" means the following entities, other than local  govern-
    24  ments, state governments and the federal government, for compliance with
    25  the  requirements  for  packaging  materials  sold, offered for sale, or
    26  distributed to consumers in or into this state:
    27    (a) For products sold or served to  consumers  at  a  physical  retail
    28  location in this state which are not single use plastics:
    29    (i)  If  the  product is sold or served in or with packaging under the
    30  product manufacturer's own brand or is sold or served in packaging mate-
    31  rials that lack identification of a brand, the producer  is  the  person
    32  who manufactures the packaged product;
    33    (ii) If there is no person to which subparagraph (i) of this paragraph
    34  applies,  the  producer is the person who is licensed to manufacture and
    35  sell or serve the packaged product  under  the  brand  or  trademark  of
    36  another  manufacturer  or person, whether or not the trademark is regis-
    37  tered in this state, unless the manufacturer of the packaging  materials
    38  has agreed to accept responsibility;
    39    (iii)  If there is no person to which subparagraph (i) or (ii) of this
    40  paragraph applies, the producer is the brand owner of the  product  that
    41  is packaged;
    42    (iv)  If  there  is  no  person described in subparagraph (i), (ii) or
    43  (iii) of this paragraph within the United States, the  producer  is  the
    44  person  who  is the importer of record for the packaged product into the
    45  United States for use in a commercial enterprise that sells, offers  for
    46  sale, or distributes the product in this state; or
    47    (v)  If  there  is no person to which subparagraph (i), (ii), (iii) or
    48  (iv) of this paragraph applies, the producer is  the  person  who  first
    49  distributes the packaged product in or into the state.
    50    (b)  For  single  use plastics and for products sold or distributed to
    51  consumers in packaging materials in or into this state via  remote  sale
    52  or distribution:
    53    (i)  The  producer  of packaging materials used to directly protect or
    54  contain the product is the same as the producer defined in paragraph (a)
    55  of this subdivision.

        A. 1749                             5

     1    (ii) For packaging materials used to ship the product to  a  consumer,
     2  the  producer  is  the person who packages the item to be shipped to the
     3  consumer.
     4    (c) For any single use plastic product:
     5    (i) If the single use plastic product is sold under the manufacturer's
     6  own  brand,  the  producer is the person who manufactures the single use
     7  plastic product;
     8    (ii) If there is no person to which subparagraph (i) of this paragraph
     9  applies, the producer is the person who is the owner or  licensee  of  a
    10  brand or trademark under which the single use plastic product is used in
    11  a  commercial  enterprise,  sold, offered for sale, or distributed in or
    12  into this state, whether or not the  trademark  is  registered  in  this
    13  state;
    14    (iii)  If there is no person to which subparagraph (i) or (ii) of this
    15  paragraph applies, the producer is the brand owner  of  the  single  use
    16  plastic product;
    17    (iv)  If  there  is  no person described in subparagraph (i), (ii), or
    18  (iii) of this paragraph within the United States, the  producer  is  the
    19  person who imports the single use plastic product into the United States
    20  for  use  in  a  commercial  enterprise  that sells, offers for sale, or
    21  distributes the single use plastic product in this state; or
    22    (v) If there is no person described in subparagraph (i),  (ii),  (iii)
    23  or (iv) of this paragraph, the producer is the person who first distrib-
    24  utes the single use plastic product in or into this state.
    25    (d) Where the producer pursuant to paragraph (a) or (c) of this subdi-
    26  vision  is  a  business  operated  wholly or in part as a franchise, the
    27  producer is the franchisor, if such franchisor has franchisees that have
    28  a commercial presence in the state.
    29    21. "Product line" means a group  of  related  products  all  marketed
    30  under  a  single  brand that is sold by the same producer to distinguish
    31  products from each other for better usability for customers.
    32    22. "Recyclable" means a packaging material that meets the criteria in
    33  subdivision one of section 27-3431 of this title.
    34    23. "Recycled" means the  use  of  discarded  packaging  materials  or
    35  products  in  the  production  of a new product or packaging in place of
    36  virgin materials.  "Recycled" material does  not  include  contaminants,
    37  residues,  and  other  process  losses  or  use of materials as landfill
    38  cover.
    39    24. "Recycling" means to separate, dismantle or process the materials,
    40  components   or commodities contained in discards  for  the  purpose  of
    41  preparing  the materials, components, or commodities for use or reuse in
    42  new products or components. "Recycling" does  not  include:  (a)  energy
    43  recovery  or  energy  generation by any means, including but not limited
    44  to, combustion, incineration, pyrolysis,  gasification,  solvolysis,  or
    45  waste-to-fuel;  (b)  any  chemical  conversion  process; or (c) landfill
    46  disposal.
    47    25. "Recycling rate" means the percentage of  any  given  material  or
    48  category of material that is ultimately recycled. The recycling rate for
    49  any  packaging material shall be calculated as the total weight of pack-
    50  aging material that is recycled in a given year  divided  by  the  total
    51  weight of packaging material generated in that year.
    52    26.  "Reuse"  means  the  return  of  packaging material back into the
    53  economic stream for use in the same kind of application intended for the
    54  original packaging, without effectuating a change in the original compo-
    55  sition of the package, the identity of the product,  or  the  components
    56  thereof.

        A. 1749                             6

     1    27.  "Reuse  and  refill  system" means a program or set of mechanisms
     2  designed to  facilitate  multiple  uses  of  packaging.  Mechanisms  may
     3  include,   but  are  not  limited  to,  deposits,  incentives,  curbside
     4  collection, collection kiosks, refill stations, dishwashing  facilities,
     5  and re-distribution networks.
     6    28.  "Reusable or refillable packaging and containers" means packaging
     7  material and containers that are specifically designed and  manufactured
     8  to  maintain shape and structure, and be materially durable for repeated
     9  sanitizing, washing, and reuse; provided, however, that  such  packaging
    10  and  containers  must  comply with the high reuse and refill rate as set
    11  forth in the plan and approved by the department.
    12    29. "Single use  plastic"  means  single  use  plastic  products  that
    13  frequent  the residential waste stream or are plastic products that have
    14  the effect of disrupting recycling processes, including, but not limited
    15  to, single use plastic items such as straws, utensils, cups, plates, and
    16  plastic bags.
    17    30. "Toxic packaging task force" means the toxic packaging task  force
    18  established by subdivision two of section 27-3425 of this title.
    19    31.  "Toxic  substances" means a chemical or chemical class identified
    20  by a state agency, federal agency, international intergovernmental agen-
    21  cy, accredited research university, or other  scientific  entity  deemed
    22  authoritative  by  the  department  on  the basis of credible scientific
    23  evidence as being one or more of the following:
    24    (a) A chemical or chemical class that is a carcinogen, mutagen, repro-
    25  ductive toxicant, immunotoxin, neurotoxicant, or endocrine disruptor.
    26    (b) A chemical or chemical class that is  persistent  or  bioaccumula-
    27  tive.
    28    (c)  A chemical or chemical class that may harm the normal development
    29  of a fetus or child or cause other developmental toxicity in  humans  or
    30  wildlife.
    31    (d)  A  chemical or chemical class that may harm organs or cause other
    32  systemic toxicity.
    33    (e) A chemical or chemical class that may  have  adverse  air  quality
    34  impacts,  adverse  ecological  impacts, adverse soil quality impacts, or
    35  adverse water quality impacts.
    36    (f) A chemical or chemical class that the  department  has  determined
    37  has equivalent toxicity to the above criteria.
    38    32.  "Unit  weight" means the weight of packaging material per unit of
    39  product sold.
    40  § 27-3403. Selection of packaging reduction and recycling organizations.
    41    1. Until the date which is ten years after the effective date of  this
    42  title,  there shall be only one packaging reduction organization and all
    43  producers shall be required to register with  such  packaging  reduction
    44  organization.
    45    2. Within six months of the effective date of this title, any not-for-
    46  profit seeking to serve as the initial packaging reduction and recycling
    47  organization shall submit an application on a form and format prescribed
    48  by the department.
    49    3.  Consistent with the requirements of this title, within nine months
    50  of the effective date of this title, the department shall select a  not-
    51  for-profit  organization  applicant  to  act  as  the  initial packaging
    52  reduction and recycling organization to operate the packaging  reduction
    53  and  recycling  program,  and such organization shall then register with
    54  the department in the manner prescribed by the department.
    55    4. Regulations promulgated pursuant to  this  title  may  provide  for
    56  additional organizations beginning ten years after the effective date of

        A. 1749                             7

     1  this  title  if,  after ten years and the recommendation by the advisory
     2  council pursuant to subdivision ten of section 27-3411  of  this  title,
     3  the  department  determines  that it would be beneficial for there to be
     4  additional  organizations  implementing  the  program,  such regulations
     5  shall ensure:
     6    (a) consistency and  coordination between all organizations;
     7    (b) responsibilities carried out are consistent and seamless;
     8    (c) local governments and service providers are reimbursed for recycl-
     9  ing services as required under this title; and
    10    (d) that packaging material requirements are not  reported  as  gener-
    11  ated, supplied or managed by more than one organization.
    12  § 27-3405. Responsibilities  of packaging reduction and recycling organ-
    13               izations.
    14    1. Producers shall register with a packaging reduction organization to
    15  meet the responsibilities of the program pursuant to the  provisions  of
    16  this section, and each organization shall be responsible for implementa-
    17  tion  of  the program on behalf of producers registered with such organ-
    18  ization.
    19    2.  Each organization involved in the administration  of  the  program
    20  shall:
    21    (a)  Develop  a packaging reduction and recycling plan and submit such
    22  plan to the advisory council for  review  and  comment,  and  after  any
    23  modifications  in  response  to  such  comments,  submit the plan to the
    24  commissioner for approval pursuant to section 27-3407 of this title;
    25    (b) Collect and compile data from producers  as  required  by  section
    26  27-3417 of this title;
    27    (c)  Calculate  reimbursement  rates  through  the  objective  formula
    28  approved by the department as contemplated by paragraph (e) of  subdivi-
    29  sion  four  of  section  27-3407  of this title for the costs associated
    30  with this title, the implementation  of   reduction, refill,  and  reuse
    31  programs,  and  the  collection,  transportation and recycling, or other
    32  processing of packaging materials;
    33    (d) Collect fees due from producers as required by section 27-3413  of
    34  this title;
    35    (e) Reimburse the department and any other relevant state agencies for
    36  the  costs  associated  with  conducting  the statewide needs assessment
    37  required by section 27-3421 of this title,  the  administration  of  the
    38  program  by the department, and the expenses of the advisory council and
    39  the toxic packaging task force;
    40    (f) Distribute funds to reimburse local governments and private compa-
    41  nies for the costs associated with this title, including the implementa-
    42  tion of reduction, refill,  and  reuse  programs,  and  the  collection,
    43  transportation  and recycling, disposal or other processing of packaging
    44  materials;
    45    (g) Undertake an effective statewide  education  and  public  outreach
    46  program as required by section 27-3423 of this title;
    47    (h)  Offer technical support to producers, with an emphasis on support
    48  to small businesses, to assist them with compliance  with  the  require-
    49  ments  of  this  title, including information about procuring affordable
    50  alternatives to non-compliant packaging material and reducing  packaging
    51  material; and
    52    (i)  Make  recommendations  to the department regarding investments in
    53  reduction,  refill,  reuse,   collection,   transportation,   recycling,
    54  disposal,  and  other  processing of packaging materials consistent with
    55  this title.

        A. 1749                             8

     1    3. Annually, each organization shall submit a report to the department
     2  that, at a minimum, must include the following information:
     3    (a) Contact information for the organization;
     4    (b)  A list of all (i) producers, (ii) brands, and (iii) products that
     5  each producer sells, offers for sale, or distributes into the state that
     6  are contained, protected, delivered, presented,  or  distributed  in  or
     7  using packaging material, in each case identified by the Universal Prod-
     8  uct Code (UPC) if the product has one;
     9    (c) The total amount, by both weight and number of units, which may be
    10  estimated  if  an exact amount is infeasible to provide, of each type of
    11  packaging material used to contain, protect, handle, deliver, transport,
    12  distribute, or present products sold, offered for sale,  or  distributed
    13  into  the  state  by  each individual producer during the prior calendar
    14  year;
    15    (d) The total amount, by both weight and  number  of  units,  of  each
    16  material  used to contain, protect, handle, deliver, transport, distrib-
    17  ute, or present products sold, offered for sale, or distributed into the
    18  state by all producers during the prior calendar year;
    19    (e) The total amount, by weight, of each material category recycled as
    20  a result of activities undertaken by the organization, either   directly
    21  or through reimbursement or contractual arrangement;
    22    (f)  A  calculation  of  the  recycling rate of each material category
    23  which is derived by dividing the amount of each material category  recy-
    24  cled,  as reported in paragraph (e) of this subdivision by the amount of
    25  each material category generated, as reported in paragraph (d)  of  this
    26  subdivision;
    27    (g) A complete accounting of all payments made to and by the organiza-
    28  tion during the prior calendar year;
    29    (h)  An  analysis  of  the  average  time it took to reimburse munici-
    30  palities during the prior calendar year;
    31    (i) A list of producers reasonably believed to be  out  of  compliance
    32  with  the  requirements  of  this title, and the reason the organization
    33  reasonably believes the producer to be out of compliance.    Information
    34  on  non-compliant  producers  shall  be provided to the commissioner and
    35  recycling inspector general's office in a timely fashion and for  possi-
    36  ble enforcement action by the office;
    37    (j)  A description of the educational and outreach efforts made by the
    38  organization in the prior calendar year,  and  how  those  efforts  were
    39  designed  to reduce packaging waste, and increase reuse and recycling of
    40  packaging materials;
    41    (k) An assessment of whether the fee structure adopted by  the  organ-
    42  ization  pursuant to section 27-3413 of this title has been effective in
    43  incentivizing improvements to the design of packaging material,  includ-
    44  ing  actual  reduction  of packaging material, increases in reusable and
    45  refillable packaging material, recycling rates for packaging  materials,
    46  and decreases in the amount of packaging material;
    47    (l)  A  description  of the reimbursements and expenditures, including
    48  the timeliness of such reimbursements, made pursuant to section  27-3413
    49  of this title;
    50    (m) A recommended minimum recyclables list that meets the requirements
    51  of  subdivision one of section 27-3431 of this title, based on the needs
    52  assessment, information gathered from end markets,  including  commodity
    53  brokers  and  manufacturers who purchase post-consumer materials for use
    54  in manufacturing new products, and available collection  and  processing
    55  infrastructure information;
    56    (n) Audited financial statements;

        A. 1749                             9

     1    (o)  The  results of the review conducted pursuant to subdivision four
     2  of this section; and
     3    (p) Any additional information required by the department.
     4    4.  Each organization shall conduct an annual review process to deter-
     5  mine whether packaging materials are recyclable. This  review  shall  be
     6  conducted in consultation with representatives of end markets, including
     7  recycled commodities brokers and manufacturers who purchase post-consum-
     8  er  material  for use in manufacturing new products, and in consultation
     9  with  local  governments.  For  the  purposes  of  calculating  producer
    10  payments  and  local  government  reimbursements in accordance with this
    11  title, this annual process shall include a transitional  period  between
    12  the  date  the  determination  is  finalized  and  the date it goes into
    13  effect.
    14    5. Each organization shall conduct public outreach and provide consum-
    15  ers with educational and informational materials related to reducing the
    16  amount of packaging discarded, recycled, and disposed of in the state as
    17  outlined in section 27-3423 of this title.
    18    6. Each  organization  shall  operate  a  program  that  provides  for
    19  collection convenience as described in section 27-3415 of this title.
    20    7.  An  organization  shall not share, except with the department, the
    21  advisory council, and the toxic packaging task force, or as required  by
    22  law,  any  proprietary  information  that is identified by a producer as
    23  proprietary information without prior written consent.
    24  § 27-3407. Packaging reduction and recycling organization plan.
    25    1. Within two years of the effective date of this title,  the  initial
    26  packaging  reduction  organization  shall develop and submit a packaging
    27  reduction and recycling plan for implementation of the rules  and  regu-
    28  lations  of this title, including ensuring timely disbursements to local
    29  governments, to the department for approval. The plan shall be submitted
    30  to the advisory council for review pursuant to section 27-3411  of  this
    31  title  prior to the department's approval.  Any subsequent or additional
    32  organization shall develop and submit a packaging reduction and  recycl-
    33  ing  plan and comply with all the requirements of this section, and have
    34  such plan approved pursuant to section 27-3409 of this title.
    35    2. The plan shall cover five years and be  updated  every  five  years
    36  following  the  approval of the original plan. The department shall have
    37  the discretion to require the plan to be reviewed or  revised  prior  to
    38  the five-year period pursuant to section 27-3419 of this title.
    39    3.  Each producer shall begin program implementation within six months
    40  after the date the plan for the initial organization is approved and  in
    41  no  event later than three years of the effective date of this title. If
    42  no  plan  is  approved  by  that  timeframe,  the  department,  in   its
    43  discretion,  shall  either  approve  a  plan  with conditions or specify
    44  modifications that must be made within forty-five days  to  conform  the
    45  submitted  plan  to  the requirements of this section.  If a producer is
    46  not making good faith efforts to comply with the  requirements  of  this
    47  title  during  such forty-five day period, the producer shall be subject
    48  to penalties for noncompliance.
    49    4. The submitted plan shall include, but not be limited to:
    50    (a) contact information, including the name, e-mail address,  physical
    51  address,  and  telephone  number of the authorized representative of the
    52  producer or producers;
    53    (b) the identity of the producer or  producers  participating  in  the
    54  plan;
    55    (c)  a comprehensive list of the types and brands of covered materials
    56  for which the producer or producers are responsible for;

        A. 1749                            10

     1    (d) a description of how the organization will implement the  program,
     2  including  the  mechanisms  and  processes  for  providing assistance to
     3  producers to comply with the reporting requirements of this title;
     4    (e) in relation to funding the program:
     5    (i) a proposed budget outlining the anticipated costs of operating the
     6  program  and  a  description  of  the  method  by which the organization
     7  intends to determine and collect producer payments  during  the  initial
     8  startup period;
     9    (ii)  a  description  of the proposed funding mechanism, identified in
    10  section 27-3413 of this title,  that  meets  the  requirements  of  this
    11  title;
    12    (iii)  a description of how the organization will maintain a financial
    13  reserve sufficient to operate the program  in  a  fiscally  prudent  and
    14  responsible manner; and
    15    (iv)  a  description  of  how  the  organization intends to manage and
    16  account for all program related funds which pass through  the  organiza-
    17  tion,  including  how timely reimbursements to local governments will be
    18  provided;
    19    (f) an objective formula  establishing  a  reimbursement  rate,  which
    20  covers  obligations  identified  in the needs assessment and the minimum
    21  recyclables list and takes into account  variable  regional  costs,  for
    22  participating local governments or private sector service providers;
    23    (g)  a  description of the process for participating local governments
    24  or private sector service providers to recoup reasonable costs as estab-
    25  lished by the objective formula,  from  the  producer  or  organization,
    26  including,  as  applicable,  any  administrative,  sorting,  collection,
    27  transportation, public education, or processing costs, if the  organiza-
    28  tion  uses  existing services through a local government or obtains such
    29  services from a private sector service provider;
    30    (h) at a minimum, the following funding  mechanism  details  shall  be
    31  provided in the plan:
    32    (i)  proposed  program fees, provided as a table listing the rate paid
    33  for each material category, including at a minimum those  identified  in
    34  subdivision three of section 27-3413, which in sum, will generate suffi-
    35  cient  funding  to  cover obligations identified in the needs assessment
    36  and the requirements of this title; and
    37    (ii) proposed program fee adjustments  to  incorporate  eco-modulation
    38  factors;
    39    (i)  a  description  of  the characteristics of each type of packaging
    40  material that is relevant to the eco-modulating factors set forth pursu-
    41  ant to section 27-3413 of this title;
    42    (j) if the local government does  not  elect  to  provide  service,  a
    43  description  of  the  process used for contracting with a private sector
    44  entity to provide such services and the recoupment of reasonable  costs,
    45  including  procedures  to  ensure that such private sector entity is not
    46  compensated for such services by both the organization and the  consumer
    47  for  the  same  service, provided, however, that the packaging recycling
    48  and reduction organization  and  any  such  private  sector  entity  has
    49  entered into a labor peace agreement with a bona-fide labor organization
    50  that  is actively engaged in representing or attempting to represent its
    51  employees and its contractors' employees;
    52    (k) a description of how the  organization  will  work  with  existing
    53  waste  haulers,  material  recovery  facilities,  recyclers,  and  local
    54  governments to operate or expand current collection programs to  address
    55  material  collection methods, improve efficiency and yield of processing

        A. 1749                            11

     1  materials from  separate  collection  streams,  and  increase  packaging
     2  reduction and reuse;
     3    (l)  a description of how the organization will use open, competitive,
     4  and fair procurement practices should they directly enter into  contrac-
     5  tual  agreements  with  service  providers, including municipalities and
     6  private entities;
     7    (m) a description of how a local government  will  participate,  on  a
     8  voluntary basis, with collection and how existing local government recy-
     9  cling processing and collection infrastructure will be used;
    10    (n)  a  description  of how the organization plans to meet the conven-
    11  ience requirements set forth in this title;
    12    (o) a description of the process for end-of-life management, including
    13  recycling and disposal of residuals collected for recycling, using envi-
    14  ronmentally sound management practices;
    15    (p) a description of how the organization shall provide the option  to
    16  purchase recycled materials from processors;
    17    (q)  a  description  of  how  producers  are  complying with the waste
    18  reduction, toxics, recycling and post-consumer content  requirements  of
    19  this  title,  and  the  process  for verifying compliance, including any
    20  third party verification services;
    21    (r) a description of how:  (i)  the  organization  will  strategically
    22  invest  in  existing  and  future reuse and recycling infrastructure and
    23  market development in the state in consultation with the department  and
    24  in  a  manner not inconsistent with the needs assessment, including, but
    25  not limited to, installing or upgrading equipment to improve the sorting
    26  of covered materials or mitigating the impacts  of  materials  on  other
    27  commodities  at  existing sorting and processing facilities, and capital
    28  expenditures for new technology, equipment, and facilities; and (ii) how
    29  the process to offer and select opportunities will be  conducted  in  an
    30  open, competitive, and fair manner;
    31    (s)  a  description of how the organization's recycling infrastructure
    32  and market development investments (i) were informed by the  results  of
    33  the needs assessment, and (ii) will utilize the state's existing infras-
    34  tructure;
    35    (t)  a  process  to  address concerns and questions from customers and
    36  residents;
    37    (u) a description of  the  organization's  public  outreach  education
    38  program for consumers and other stakeholders;
    39    (v)  a description of how the comments of stakeholders were considered
    40  and addressed in the development of the plan;
    41    (w) a detailed description of how the organization consulted with  the
    42  advisory  council, the public, and other stakeholders in the development
    43  of the plan prior to its submission  to  the  department,  and  to  what
    44  extent the organization specifically incorporated the advisory council's
    45  input into the plan;
    46    (x)  a comprehensive contingency plan demonstrating how the activities
    47  in the plan will continue to be carried out by  some  other  entity,  if
    48  needed,  such  as  an  escrow  company, until such time as a new plan is
    49  submitted and approved by the department:
    50    (i) upon the expiration of an approved plan;
    51    (ii) in the event that the  organization  has  been  notified  by  the
    52  department  that  it must transfer implementation responsibility for the
    53  plan to a different organization;
    54    (iii) in the event that the organization notifies the department  that
    55  it will cease to implement an approved plan; or

        A. 1749                            12

     1    (iv)  in any other event that the organization can no longer carry out
     2  plan implementation; and
     3    (y) any other additional information required by the department.
     4    5.  The organization shall also provide the advisory council a reason-
     5  able period of time to review and comment upon the draft plan  prior  to
     6  its  submission  to the department in accordance with section 27-3409 of
     7  this title which shall in no event be less than sixty days.  The  organ-
     8  ization  shall make an assessment of comments received and shall provide
     9  a summary and an analysis of the issues raised by the  advisory  council
    10  and  significant  changes suggested by any such comments, a statement of
    11  the reasons why any significant changes were not incorporated  into  the
    12  plan,  and  a description of any changes made to the plan as a result of
    13  such comments.
    14  § 27-3409. Packaging reduction and recycling plan approval.
    15    1. Before approval or denial of a packaging  reduction  and  recycling
    16  plan  can  be made in accordance with this title, the producer or organ-
    17  ization shall submit the plan to the packaging reduction  and  recycling
    18  advisory council.  The advisory council shall then make a recommendation
    19  regarding approval or disapproval of the plan in accordance with section
    20  27-3411 of this title.
    21    2.  Within  sixty days of the advisory council making a recommendation
    22  to the department, the department shall make a determination to  approve
    23  the  plan  as  submitted;  approve the plan with conditions; or deny the
    24  plan, with reasons for the denial.
    25    3.  The department may establish additional plan requirements in addi-
    26  tion to those identified herein to fulfill the  intent  of  this  title;
    27  provided, however, that any additional requirements shall be established
    28  one year prior to a required submission of a plan.
    29    4.  The department may rescind the approval of an approved plan at any
    30  time for cause and with documented justification.
    31    5. The maintenance of a labor peace agreement as contemplated by para-
    32  graph (j) of subdivision four of section 27-3407 of this title shall  be
    33  an ongoing  material condition of plan approval.
    34    6.  For  the  purposes of this title, "labor peace agreement" means an
    35  agreement between an entity and labor organization that, at  a  minimum,
    36  protects  the  state's proprietary interests by prohibiting labor organ-
    37  izations  and  members  from  engaging  in  picketing,  work  stoppages,
    38  boycotts, and any other economic interference.
    39  § 27-3411. Packaging reduction and recycling advisory council.
    40    1.  There  is  hereby  established  within  the department a packaging
    41  reduction and recycling advisory council to receive and review the pack-
    42  aging reduction and recycling plans required under  section  27-3407  of
    43  this title, to make recommendations to the department regarding approval
    44  of the plans, to review the annual reports produced by organizations and
    45  to  make recommendations to the department and organizations as required
    46  by this section.
    47    2. The advisory council shall convene for the first time no later than
    48  one year after the effective date of this title.  The  advisory  council
    49  shall  be composed of seventeen members.  Nine shall be appointed by the
    50  commissioner, three shall be appointed by the speaker of  the  assembly,
    51  one  shall  be  appointed  by the minority leader of the assembly, three
    52  shall be appointed by the temporary president  of  the  senate  and  one
    53  shall  be  appointed  by the minority leader of the senate. The advisory
    54  council shall include at least one member from each of the following:

        A. 1749                            13

     1    (a) a  local  government  association  or  local  government  program,
     2  including an additional local government representative from cities with
     3  a population of one million or more residents;
     4    (b) a statewide environmental organization;
     5    (c)  a  representative  of a disadvantaged community affected by solid
     6  waste infrastructure;
     7    (d) an environmental justice organization;
     8    (e) a statewide waste disposal or recycling association;
     9    (f) a materials recovery facility located within the state;
    10    (g) a recycling collection provider;
    11    (h) a manufacturer  of  packaging  materials  utilizing  post-consumer
    12  recycled content;
    13    (i) a consumer advocate;
    14    (j) a retailer;
    15    (k) a public health specialist;
    16    (l)  a  producer  and  an organization established under this title as
    17  non-voting members;
    18    (m) a  representative  of  a  labor  organization  representing  waste
    19  collection employees; and
    20    (n)  a  representative  of a labor organization representing municipal
    21  solid waste and recycling processing employees.
    22    3. Appointments to  the  advisory  council  are  term-limited  to  ten
    23  consecutive years of service; the chair shall be chosen through a major-
    24  ity vote of its members and shall serve no longer than three consecutive
    25  years.
    26    4.  Advisory  council members shall serve without compensation, except
    27  that a member of the committee who is a state officer  or  employee  may
    28  receive their regular compensation while engaging in the business of the
    29  committee,  but shall be entitled to receive reimbursement for any actu-
    30  al, necessary expenses incurred in the course of performing business for
    31  the committee.
    32    5. All decisions made by the advisory  council  shall  be  decided  by
    33  voting  and votes shall only be valid when a quorum is present. A quorum
    34  shall exist when greater than fifty percent of voting members are  pres-
    35  ent. The advisory council shall meet at least once a year by the call of
    36  the chair or by request of more than half the members.  The decisions of
    37  the advisory council shall be by vote of the majority of its membership.
    38    6.  The  council  shall  determine  whether  the  plan submitted under
    39  section 27-3409 of this title meets the criteria  and  objectives  under
    40  such section in making its recommendation.
    41    7.  The advisory council shall, within sixty days of the submission of
    42  a packaging reduction and recycling plan, either:
    43    (a) forward the plan to the commissioner with its  recommendation  for
    44  approval; or
    45    (b)  forward  the  plan  to  the commissioner with its disapproval and
    46  stated reasons therefor, including any recommended changes to  the  plan
    47  necessary for approval.
    48    8.  An  organization  may resubmit a packaging reduction and recycling
    49  plan for approval at any time.  Upon  such  resubmission,  the  advisory
    50  council  shall,  within sixty days, forward the plan to the commissioner
    51  with its recommendation for approval or disapproval.
    52    9. The advisory council shall review the submitted annual reports  and
    53  make  such  recommendations  to  the department and the organization for
    54  improving future administration of the program and compliance with  this
    55  title.

        A. 1749                            14

     1    10.  Thirty months from the date the department adopts rules and regu-
     2  lations pursuant to this title, and every three  years  thereafter,  the
     3  advisory  council shall conduct a review of all relevant data, including
     4  annual reports, the latest  scientific  data  available,  any  pertinent
     5  statewide  waste and reuse data, and any other information deemed impor-
     6  tant, to make recommendations to the following:
     7    (a) organizations  for  any  changes  in  the  administration  of  the
     8  program,  including  feedback  on  the education and outreach program as
     9  outlined in section 27-3423 of this title;
    10    (b) the department for any necessary changes to regulations, the fund-
    11  ing mechanism, reimbursement and expenditure  policies,  or  whether  it
    12  would  be beneficial for there to be additional organizations implement-
    13  ing the program; and
    14    (c) the legislature for recommended statutory changes. Such  recommen-
    15  dations shall include a recommendation as to whether to modify the defi-
    16  nition of recycling under this title.
    17  § 27-3413. Funding mechanism.
    18    1. An organization shall establish such program participation fees for
    19  producers  through  the  plan pursuant to section 27-3407 of this title,
    20  which shall be sufficient to cover all costs of the  program,  including
    21  administration,  enforcement,  the  statewide  needs assessment, and all
    22  other state costs  of  the  program  and  organizations'  costs  of  the
    23  program,  including but not limited to those costs described in subdivi-
    24  sion four of this section.
    25    2. An organization shall structure program fees to  provide  producers
    26  with  financial  incentives  through eco-modulation, to reward waste and
    27  source  reduction and recycling compatibility innovations and practices,
    28  and to disincentivize designs or practices that increase costs of manag-
    29  ing the products or materials that contain toxic substances.
    30    3. An organization may adjust fees to  be    paid    by  participating
    31  producers  based on factors that affect system costs. At a minimum, fees
    32  shall be variable based on:
    33    (a) The category of packaging material, provided that the list of such
    34  packaging material categories for which there is a specific producer fee
    35  shall include, at a minimum, the following material types:
    36    (i) Paper;
    37    (ii) Cardboard;
    38    (iii) Corrugated cardboard;
    39    (iv) Wood;
    40    (v) Glass;
    41    (vi) Polyethylene terephthalate (PET);
    42    (vii) High density polyethylene (HDPE);
    43    (viii) Expanded polystyrene (EPS);
    44    (ix) Polystyrene;
    45    (x) Bio-plastics;
    46    (xi) Generic plastics;
    47    (xii) Plastic film;
    48    (xiii) Other plastics;
    49    (xiv) Ferrous metals;
    50    (xv) Aluminum;
    51    (xvi) Tinplate;
    52    (xvii) Generic metals; and
    53    (xviii) Mixed materials including laminates and  packaging  containing
    54  more than one of the above materials;
    55    (b)  The quantity of each packaging material type, by weight, that the
    56  producer sells, offers for sale, or distributes in the state;

        A. 1749                            15

     1    (c) Eco-modulation, including as described in subdivision two of  this
     2  section.
     3    4.  Producer  fees  shall  be designed to cover, at minimum, the total
     4  costs associated with:
     5    (a) Providing curbside collection or other form of residential service
     6  that is, at minimum, as convenient as is detailed in section 27-3415  of
     7  this title;
     8    (b)  The  department's  and  other  state agencies' administration and
     9  enforcement of this title;
    10    (c) Organizations' administration of this title;
    11    (d) The cost associated with the development of the needs  assessment,
    12  as required in section 27-3421 of this title;
    13    (e) The costs associated with the advisory council and the toxic pack-
    14  aging task force;
    15    (f)  The  costs  associated  with establishing packaging reduction and
    16  reuse infrastructure;
    17    (g) The cost of reimbursement for, or providing,  recycling  services,
    18  including the collection cost, processing cost for each recyclable mate-
    19  rial,  cost  of handling non-recyclable material types collected as part
    20  of a recycling operation, transportation  cost  of  recycling  for  each
    21  material type; and
    22    (h) Any other factors determined by the department.
    23    5.  An  organization  may  adjust  producer fees based on factors that
    24  affect system costs  provided  that  the  specific  parameters  of  such
    25  adjustments  and  fees  are included in the plan approved by the depart-
    26  ment.  At a minimum, fees shall be variable based on:
    27    (a) costs to provide curbside collection or another form  of  residen-
    28  tial  service  that is, at minimum, as convenient as curbside collection
    29  or as convenient as  the  previous  recycling  collection  plan  in  the
    30  particular jurisdiction should recycling collection not be provided;
    31    (b)  costs  to process packaging materials for acceptance by secondary
    32  material markets;
    33    (c) whether the packaging material would typically be readily-recycla-
    34  ble, except that as a consequence of the packaging design, the packaging
    35  product has the effect of disrupting recycling processes or the  product
    36  includes  labels,  inks,  and adhesives containing heavy metals or other
    37  toxic substances that would result in  contamination  of  the  recycling
    38  process;
    39    (d)  whether  the  packaging  material  is specifically designed to be
    40  reusable or refillable and has high reuse or refill rate; and
    41    (e) the commodity  value  of  a  packaging  material,  as  defined  by
    42  published indices.
    43    6.  The  fees  shall  be  adjusted, or the producers may be provided a
    44  credit, as detailed in the plan, based upon the percentage of  post-con-
    45  sumer  recycled  material  content  and such percentage of post-consumer
    46  recycled content shall be verified by the  organization  or  through  an
    47  independent  third  party  approved  to perform verification services to
    48  ensure that such percentage exceeds  the  minimum  requirements  in  the
    49  packaging,  as  long as the recycled content does not disrupt the poten-
    50  tial for future recycling.
    51    7. In addition to the annual schedule of fees approved in the plan, an
    52  organization fee schedule may include a special assessment  on  specific
    53  categories of packaging materials, identified in the plan, if the nature
    54  of  the  packaging material imposes unusual costs in collection or proc-
    55  essing or requires special actions to address effective access to  recy-
    56  cling or successful processing in local government recycling facilities.

        A. 1749                            16

     1    8.  The  fees  shall be structured to provide producers with financial
     2  incentives to encourage:
     3    (a)  A reduction in total packaging as measured by unit weight used by
     4  producers, and discarded by  consumers,  businesses,  institutions,  and
     5  other  users.  Weight  reductions  shall not be achieved by substituting
     6  plastic for other materials types;
     7    (b) An increase in the proportion of a producer's total packaging that
     8  is managed within a reuse and refill system;
     9    (c) An increase in the proportion of a producer's total packaging that
    10  is deemed recyclable as  determined  by  an  annual  review  process  as
    11  described in section 27-3405 of this title;
    12    (d) An increase in the proportion of a producer's total packaging that
    13  is ultimately recycled;
    14    (e) A reduction in toxic components in packaging materials; and
    15    (f) A reduction in litter from packaging materials.
    16    9. An organization shall be responsible for calculating and disbursing
    17  funding  at  a  reasonable  rate  developed through an objective formula
    18  approved by the department, and such reasonable rate may be varied based
    19  on population density rates,  for  municipal  services  utilized  by  an
    20  organization  if the municipality elects to be compensated by the organ-
    21  ization in  the  collection,  recovery,  recycling,  and  processing  of
    22  covered  materials  and  products,  whether  such  services are provided
    23  directly by the municipality or through a contracted service provider.
    24    10. If a municipality does not elect to provide service, the organiza-
    25  tion shall be responsible for contracting  with  a  private  entity  for
    26  services and shall be responsible for calculating and disbursing funding
    27  at a reasonable recycling program rate for collection, recycling, recov-
    28  ery,  and  processing  services  provided  by  the private sector entity
    29  contracted to provide such service.  Any such contract shall be  subject
    30  to  a labor peace agreement as contemplated by paragraph (j) of subdivi-
    31  sion four of section 27-3407 of this title.
    32    11. To facilitate an organization's cost reimbursement  determination,
    33  participating municipalities and private sector haulers contracting with
    34  the  organization shall report data related to their costs and the value
    35  of materials to the organization.  Cost  calculations  shall  take  into
    36  consideration  the  amount  received  from  the sale of source-separated
    37  materials.
    38    12. There shall be no fee assessed on reusable or refillable packaging
    39  and containers contained within a reuse or refill system.
    40    13. Any funds directly collected pursuant to this title shall  not  be
    41  used to carry out lobbying activities on behalf of an organization.
    42    14.  No  retailer may charge a point-of-sale or other fee to consumers
    43  to facilitate a producer or organization to recoup the costs  associated
    44  with meeting the obligations under this title.
    45    15.  Nothing in this title shall require a local government to partic-
    46  ipate in the program, provided that a  local  government  must  give  at
    47  least three months' notice of its intent to cease participation.
    48  § 27-3415. Collection and convenience.
    49    1. The program shall provide for widespread, convenient, and equitable
    50  access to collection opportunities for recyclable packaging materials at
    51  no  additional  cost.  Such opportunities, including curbside recycling,
    52  shall be provided to all residents of the state in a manner that  is  as
    53  convenient  as the collection of solid waste as provided to the consumer
    54  as of the effective date of this  title.    Organizations  shall  ensure
    55  services  continue  for  curbside recycling programs as of the effective
    56  date of this title, either directly or through  a  contract  to  provide

        A. 1749                            17

     1  services,  and that such services are continued through such producer or
     2  organization's plan pursuant to section 27-3405 of this title.
     3    2.  Participation  in  the program shall not restrict a jurisdiction's
     4  consumer's ability to contract directly with  third  parties  to  obtain
     5  recycling collection services if consumers have the option to enter into
     6  such  contracts  as  of the effective date of this title, as long as the
     7  consumer still voluntarily chooses to contract directly with  the  third
     8  party.    The  local  government  shall not provide disbursement to such
     9  third party should the local  government  provide  widespread  recycling
    10  services  either  directly  or through a contract that is different from
    11  the contract with such third party, and there  shall  be  procedures  in
    12  place  to  ensure that no service provider is compensated more than once
    13  for the same service.
    14    3. Organizations may rely on a range of means to collect various cate-
    15  gories of packaging materials so  long  as  collection  options  include
    16  curbside  recycling  collection services provided by municipal programs,
    17  municipal contracted programs,  solid  waste  collection  companies,  or
    18  other approved entities as identified by the department if at a minimum:
    19    (a)  the category of packaging materials is on the minimum recyclables
    20  list, is suitable for residential curbside recycling collection and  can
    21  be effectively sorted by the facilities receiving the curbside collected
    22  material;
    23    (b)  the  category  of  packaging  materials  is not handled through a
    24  deposit and return scheme or buy back system that relies on a collection
    25  system other than curbside or multi-family collection;
    26    (c) the provider of the  curbside  recycling  service  agrees  to  the
    27  organization's service provider costs arrangement; and
    28    (d) any private contract for such services is subject to a labor peace
    29  agreement  as  contemplated  by  paragraph  (j)  of  subdivision four of
    30  section 27-3407.
    31    4. All local government or private recycling service  providers  shall
    32  provide  for  the  collection  and  recycling of all packaging materials
    33  contained on the minimum recyclables lists, based on geographic regions,
    34  in order to be eligible for reimbursement;  provided,  however,  nothing
    35  shall  penalize  a  local  government  or  private recycling service for
    36  recovering and recycling materials  that  are  generated  in  the  local
    37  government  or  geographic  region  that are not included on the minimum
    38  recyclables lists as long as it can be demonstrated that such  materials
    39  have  a  consistent  regional  market  for purchase as determined by the
    40  department in consultation with the producer or organization.
    41    5. Reimbursement shall cover collection,  processing,  transportation,
    42  and  recycling  and  disposal  of all packaging materials so long as the
    43  program includes at least the minimum recyclables list.  The  department
    44  may  grant  an  exception to the requirements in this subdivision upon a
    45  written showing by the local government  or  private  recycling  service
    46  that  compliance with the requirements is not practicable for a specific
    47  identified product or material and if the department finds it is in  the
    48  best  interest  of  the  intent  of  this  title  to grant an exception;
    49  provided, however, that any such exception  granted  by  the  department
    50  shall not exceed twelve months.
    51    6.  Program  funds shall be used for investment in collection systems,
    52  transportation  systems, reuse systems, washing systems,  redistribution
    53  systems,  technology  for tracking and data collection, capital expendi-
    54  tures on new and emerging technology that is  focused  on  reusable  and
    55  refillable  packaging,  as  well as equipment, and facilities, and other

        A. 1749                            18

     1  projects  determined  by   the department to facilitate  the  goals  and
     2  objectives of this title.
     3    7.  Nothing  in  this  title  shall be deemed to automatically void or
     4  nullify any  collection contracts in effect as of the effective date  of
     5  this title.
     6  § 27-3417. Producer responsibilities.
     7    1.  Beginning with the required program implementation date as contem-
     8  plated by subdivision three of section 27-3407 of this title and  in  no
     9  event  later  than three years after the effective date of this title, a
    10  producer shall not sell, offer for sale, or distribute into the state  a
    11  product  contained,  protected,  delivered, presented, or distributed in
    12  packaging unless the producer is registered with an organization and  in
    13  full  compliance  with  all  requirements of this title. Producers shall
    14  register with the initial organization within  eighteen  months  of  the
    15  effective  date  of  this  title; provided, however, that any person who
    16  becomes a producer thereafter shall register with  an  organization  and
    17  begin  program implementation within six months thereof or be subject to
    18  penalties for noncompliance.
    19    2. Either when the producer registers, or within  eighteen  months  of
    20  the effective date of this title, whichever is later and annually there-
    21  after,  each  producer shall provide the organization with the following
    22  information:
    23    (a) Contact information, including the name, e-mail address,  physical
    24  address,  and  telephone  number of the authorized representative of the
    25  producer;
    26    (b) A comprehensive list of the categories  and  brands  of  packaging
    27  materials for which the producer or producers are responsible;
    28    (c) The total amount, in units and weight, of each category of packag-
    29  ing  material  sold,  offered for sale, or distributed for sale into the
    30  state by the producer in the prior calendar year; and
    31    (d) Any other information required by the department.
    32    3. Producers are responsible for payment of fees, through an organiza-
    33  tion, based on the quantity, category of packaging material used in  the
    34  state, and other factors.
    35    4. Producers are responsible for meeting the toxic substances, packag-
    36  ing  material  reduction, post-consumer content, and recycling standards
    37  under this title.
    38    5. A producer  shall  electronically  submit  annually,  to  both  the
    39  department  and  the  packaging  reduction and recycling organization, a
    40  written declaration signed by its chief executive officer, verifying the
    41  producer's compliance with:
    42    (a) The packaging material reduction requirements of this title;
    43    (b) The packaging  material  recycled  content  requirements  of  this
    44  title;
    45    (c) The packaging material recycling requirements of this title;
    46    (d) The toxic substance reduction requirements of this title;
    47    (e)  Their  obligations  to  pay  fees to the organization pursuant to
    48  section 27-3413 of this title and subdivision three of this section; and
    49    (f) Any reimbursement obligations they have to  local  governments  or
    50  third party service providers in connection with this title.
    51    6. A producer is exempt from the requirements and prohibitions of this
    52  title in a calendar year in which:
    53    (a)  The  producer  and its affiliates collectively realized less than
    54  five million dollars in total gross revenue during  the  prior  calendar
    55  year;

        A. 1749                            19

     1    (b)  The  producer  and  its affiliates collectively sold, offered for
     2  sale, or distributed for sale products contained, protected,  delivered,
     3  presented,  or  distributed  in or using less than two tons of packaging
     4  material in total during the prior calendar year;
     5    (c)  The  producer  is  a not-for-profit corporation that is primarily
     6  engaged in preparing    and  delivering  medically  tailored  meals  and
     7  medical  nutrition  therapy.  As  used  in  this  paragraph,  "medically
     8  tailored meals and medical nutrition therapy" means nutritional  assess-
     9  ment,  nutritional  therapy,  and  nutritional  counseling provided by a
    10  certified dietician or certified nutritionist, and the provision of  any
    11  food  indicated by such assessment, therapy or counseling and ordered by
    12  a health care professional acting within their lawful scope of  practice
    13  under  title eight of the education law, for the purpose of treating one
    14  or more chronic conditions for an individual who  is  limited  in  their
    15  activities of daily living; or
    16    (d)  is  an  agricultural  cooperative  with less than fifty employees
    17  engaged in the production of dairy products.
    18    7. A producer claiming an exemption pursuant  to  subdivision  six  of
    19  this section shall provide the department with sufficient information to
    20  demonstrate that the claimant is eligible for an exemption.
    21    8. Nothing in this title shall impair a producer's eligibility for tax
    22  credits  or  other  business  incentives  for which they would otherwise
    23  qualify.
    24  § 27-3419. Department responsibilities.
    25    1. Within eighteen months of the effective date  of  this  title,  the
    26  department  shall,  in  accordance  with  section 27-3435 of this title,
    27  promulgate all rules and regulations necessary to implement, administer,
    28  and enforce the provisions of this title,  including  setting  standards
    29  for  consumer  protection when the organization directly disburses funds
    30  to third parties. These rules and regulations shall include  prohibiting
    31  certain  toxics  in packaging pursuant to section  27-3425 of this title
    32  as of the dates set forth therein.
    33    2. Beginning two years after the required program implementation  date
    34  as  contemplated  by  subdivision three of section 27-3407 of this title
    35  and in no event later than three years after the effective date of  this
    36  title,  and annually thereafter, the department shall utilize the infor-
    37  mation obtained pursuant to paragraphs (b), (c), (d), (e), (f)  and  (g)
    38  of  subdivision  three  of  section 27-3405 of this title, and any other
    39  information available to the department, with input  from  the  advisory
    40  council,  to  produce an annual report to be shared with the legislature
    41  and posted publicly on the department's website.
    42    3. The department shall establish and maintain the minimum recyclables
    43  list by regulation. The department  shall  update  this  list  annually,
    44  after  the  initial  organization's  plan is first approved, considering
    45  recommendations from organizations and the advisory council. The minimum
    46  recyclables list may vary by geographic  region  depending  on  regional
    47  markets and regional collection and processing infrastructure, but shall
    48  in all cases meet the requirements of subdivision one of section 27-3431
    49  of this title.
    50    4.  In  the event that the department determines that the organization
    51  no longer meets the requirements of this title, or  fails  to  implement
    52  and  administer the requirements of this title in a manner that effectu-
    53  ates the purposes of this title, after reasonable  opportunity  to  cure
    54  such  deficiencies,  the  department  shall  revoke its approval of such
    55  organization and, subject to the contingency plan contemplated by  para-

        A. 1749                            20

     1  graph  (w)  of  subdivision four of section 27-3407 of this title, shall
     2  select a new organization pursuant to section 27-3403 of this title.
     3  § 27-3421. Statewide  packaging  reduction,  reuse,  and recycling needs
     4               assessment.
     5    1. No later than one year after the effective date of this  title  and
     6  every  five  years thereafter, the department shall complete or cause to
     7  be completed a statewide packaging material reduction, reuse, and  recy-
     8  cling needs assessment to determine the current state of packaging mate-
     9  rial reuse, recycling, and disposal, identify barriers and opportunities
    10  to  reduce  the  amount of packaging material discarded and disposed of,
    11  and increase the reusability and recyclability of packaging material.
    12    2. The needs assessment, at a minimum, shall cover the following:
    13    (a) The current recycling rate for each type of packaging material;
    14    (b) The amount, by weight and material  type,  of  packaging  material
    15  recycled  at  each  recycling  facility that accepts discarded packaging
    16  material generated in the state;
    17    (c) The processing capacity, market conditions, and  opportunities  in
    18  the state and regionally for recyclable materials generally, and packag-
    19  ing material categories specifically;
    20    (d)  The  net  cost  of  end-of-life management of discarded packaging
    21  material  in  the  state,  including  the  cost  associated   with   the
    22  collection,  transportation,  sortation, recycling, littering, landfill-
    23  ing, or incineration of discarded packaging;
    24    (e) The availability of  opportunities  in  the  recycling  and  reuse
    25  system for minority- and women-owned businesses;
    26    (f)  Current  barriers  affecting recycling access and availability in
    27  the state;
    28    (g) Current barriers to  the  marketability  of  recyclable  materials
    29  generated in the state;
    30    (h)  Opportunities  for  the  creation of packaging material reuse and
    31  refill programs in the state;
    32    (i) Opportunities for the improvement of packaging material  recycling
    33  in  the  state,  including  the  development of end markets for recycled
    34  packaging materials;
    35    (j) Current barriers affecting  the  creation  and  implementation  of
    36  packaging material reuse and refill programs;
    37    (k)  Consumer  education  needs in the state with respect to packaging
    38  material waste reduction, recycling, and reducing contamination in recy-
    39  cling, and reuse and refill systems for packaging material; and
    40    (l) Landfill capacity.
    41    3. The cost incurred by the department associated with conducting  the
    42  needs assessment shall be paid for by the organization.
    43    4.  The department shall report the results of the needs assessment to
    44  the public, the state legislature, and the governor, and shall post  the
    45  results on its website.
    46  § 27-3423. Education and outreach program.
    47    1.  The  organization  shall  develop  and  implement  an  educational
    48  outreach program designed to educate the public  about  waste  reduction
    49  and  improve  the  effectiveness of local government recycling and, at a
    50  minimum, include:
    51    (a) Educational and informational materials for consumers  related  to
    52  reducing the amount of packaging discarded, recycled, and disposed of in
    53  the state;
    54    (b) A description of the environmental, social, economic, and environ-
    55  mental  justice  impacts  associated with improper disposal of packaging
    56  material and failure to reuse or recycle packaging materials;

        A. 1749                            21

     1    (c) Information on the  proper  end-of-life  management  of  packaging
     2  material, including reuse, recycling, composting, and disposal;
     3    (d)  The  location  and  availability of curbside collection and addi-
     4  tional drop-off collection opportunities for packaging material, includ-
     5  ing deposit and take-back programs;
     6    (e) How to prevent litter of packaging  material  in  the  process  of
     7  collection;
     8    (f)  Recycling  instructions  that are consistent statewide, except as
     9  necessary to take into account differences among local laws and process-
    10  ing capabilities, easy to understand, and easily accessible; and
    11    (g) Any other information required by the department.
    12    2. The educational outreach program shall incorporate, at  a  minimum,
    13  electronic,  print,  web-based  and social media elements, including for
    14  use by local governments at their discretion, as  well  as  including  a
    15  variety  of  outreach  and  education  tools.  Such educational outreach
    16  programs shall ensure materials are widely accessible and  available  in
    17  multiple languages.
    18    3.  The  educational  outreach  program  shall be coordinated with and
    19  assist local government programs, local government contracted  programs,
    20  solid waste collection companies, and other entities providing services.
    21    4.  The  educational  outreach  program  shall  be developed to ensure
    22  disadvantaged communities receive targeted outreach and support.
    23    5. The educational outreach program shall include a plan to work  with
    24  producers  to  label  or  mark  packaging  material,  in accordance with
    25  reasonable labeling standards, with information to assist  consumers  in
    26  responsibly managing and recycling covered products.
    27    6. The organization shall consult with local governments on the devel-
    28  opment  of  educational  materials and may coordinate with local govern-
    29  ments on outreach and communication.
    30    7. The organization shall  be  authorized  to  provide  producers  and
    31  retailers   with   educational  materials  related  to  the  responsible
    32  reduction, reuse, recycling, or disposal of discarded packaging  materi-
    33  al. The educational and informational materials provided to the retailer
    34  under  this subdivision may include, but need not be limited to, printed
    35  materials, signage and templates of materials that can be reproduced  by
    36  retailers  and  provided thereby to consumers at the time of a product's
    37  purchase, and advertising materials that promote and encourage consumers
    38  to properly reuse, recycle, or dispose of packaging material.
    39    8. The organization shall make information on relevant tax credits and
    40  other business incentives available to producers.
    41  § 27-3425. Prohibition on certain toxic substances and materials.
    42    1. Notwithstanding title two of article thirty-seven of  this  chapter
    43  to  the  contrary,  (a)  Beginning three years after the promulgation of
    44  rules and regulations pursuant to this title, no person or entity  shall
    45  sell,  offer  for  sale,  or  distribute  into  the  state any packaging
    46  containing any of the following toxic  substances  or  materials  as  an
    47  intentionally added substance:
    48    (i) Ortho-phthalates;
    49    (ii) Bisphenols;
    50    (iii) Per- and polyfluoroalkyl substances (PFAS);
    51    (iv)  Heavy metals and compounds, including lead, hexavalent chromium,
    52  cadmium, and mercury,  but  excluding  copper  phthalocyanine  (chemical
    53  abstracts service registry number 147-14-8);
    54    (v) Benzophenone and its derivatives;
    55    (vi) Halogenated flame retardants;
    56    (vii) Perchlorate;

        A. 1749                            22

     1    (viii) Formaldehyde;
     2    (ix) Toluene;
     3    (x) Antimony and compounds;
     4    (xi) UV 328 (2-(2H-benzotriazol-2-yl)-4,6-di-tert-pentylphenol);
     5    (xii) Polyvinyl chloride, including polyvinylidene chloride;
     6    (xiii) Polystyrene but excluding EPS (expanded polystyrene); or
     7    (xiv) Polycarbonate.
     8    (b)  Beginning  five  years  after the promulgation of rules and regu-
     9  lations pursuant to this title, no person or entity  shall  sell,  offer
    10  for  sale,  or distribute into the state any packaging containing any of
    11  the toxic substances listed in paragraph (a) of this  subdivision,  even
    12  if  they  are  not an intentionally added substance, at or above a level
    13  that the department shall establish by regulation  that  is  the  lowest
    14  level that can feasibly be achieved; provided, however, that the depart-
    15  ment  shall  review  such level every five years to determine whether it
    16  should be lowered.
    17    2. (a) There is hereby established within the department a toxic pack-
    18  aging task force to review the toxicity in packaging in the  state,  and
    19  to  recommend  to  the  department  the  designation of additional toxic
    20  substances which shall be subject  to  the  same  prohibition  as  those
    21  substances listed in subdivision one of this section.
    22    (b)  The  toxic  packaging  task force shall have nine members, one of
    23  whom shall be the commissioner or their designee who shall be chair, and
    24  one of whom shall be the commissioner of health or their  designee.  The
    25  other  members  shall  include:    (i) a representative of the packaging
    26  industry; (ii) a representative of an  environmental  justice  organiza-
    27  tion;  (iii) a representative from the chemical industry; (iv) a profes-
    28  sional or academic expert in  toxicology;  and  (v)  a  professional  or
    29  academic  expert  in public health risk assessment; all of whom shall be
    30  appointed by the commissioner. The remaining members  shall  be  persons
    31  with significant professional or academic expertise in maternal or child
    32  health,  epidemiology,  chemical  safety or public health policy, one of
    33  whom shall be appointed by the temporary president of the senate and one
    34  of whom shall be appointed by the speaker of the assembly.  Appointments
    35  to the toxic packaging task force are term limited to  five  consecutive
    36  years of service.
    37    (c)  The  task  force shall meet at least twice per year to review and
    38  recommend to the department  whether  (i)  there  are  additional  toxic
    39  substances  or  classes  of  toxic  substances for use in packaging that
    40  should no longer be sold, offered for sale,  distributed  for  sale,  or
    41  distributed  for  such  use  in  this  state,  and  (ii) there should be
    42  substance or material-specific exceptions to the  prohibitions  provided
    43  for in subdivision one of this section, provided such recommendation may
    44  be made only upon a demonstration of substantial and convincing evidence
    45  that  such  substance or material does not meet the criteria for classi-
    46  fication as a toxic substance or material.
    47    3. (a) Within one hundred eighty days  of  the  toxic  packaging  task
    48  force recommending the designation of an additional toxic substance, the
    49  department shall adopt rules and regulations to designate such substance
    50  as  a  toxic  substance  under this section and prohibit the use of such
    51  toxic  substance  in  packaging  in  the  same  manner  as  those  toxic
    52  substances  listed in subdivision one of this section, with an effective
    53  date no later than two years after  the  date  of  such  recommendation,
    54  unless  the  department  determines  that  such two-year period would be
    55  unduly burdensome, in which  case  the  department  shall  establish  an

        A. 1749                            23

     1  effective  date  for such prohibition no later than four years after the
     2  date of such recommendation.
     3    (b) The department may evaluate recommendations from the toxic packag-
     4  ing  task  force for exceptions as provided in paragraph (c) of subdivi-
     5  sion two of this section, and upon a demonstration  of  substantial  and
     6  convincing  evidence  that  such substance or material does not meet the
     7  criteria for classification as a toxic substance or material, may  adopt
     8  rules  and  regulations to except such substance as a toxic substance or
     9  material.
    10    4. Any producer that violates this section,  or  any  rules  or  regu-
    11  lations promulgated pursuant to this section, shall be subject to a fine
    12  for each violation not to exceed ten thousand dollars per violation. For
    13  the  purposes  of  this section, each product line that is sold, offered
    14  for sale, or distributed to  consumers,  via  retail  commerce,  in  the
    15  state,  including  through an internet transaction shall be considered a
    16  separate violation.
    17  § 27-3427. Non-reusable packaging reduction standards.
    18    1. Each individual producer is required to meet the following  packag-
    19  ing reduction requirements:
    20    (a)  Beginning  three  years after the program implementation date set
    21  forth in subdivision three of section 27-3407 or January  first  of  the
    22  third  year  following the date on which a producer first registers with
    23  an organization if a producer registers after the program implementation
    24  date, such producer shall reduce the amount of primary plastic packaging
    25  material, and the amount of all other packaging material, in each  case,
    26  by ten percent either on a company-wide basis or by unit weight, for all
    27  packaging  materials  used  to  contain,  protect,  deliver, present, or
    28  distribute the products they sell, offer for  sale,  or  distribute  for
    29  sale in the state.
    30    (b)  Beginning  five  years  after the program implementation date set
    31  forth in subdivision three of section 27-3407 or January  first  of  the
    32  fifth  year  following the date on which a producer first registers with
    33  an organization if a producer registers after the program implementation
    34  date, such producer shall reduce the amount of primary plastic packaging
    35  material, and the amount of all other packaging material, in each  case,
    36  by fifteen percent either on a company-wide basis or by unit weight, for
    37  all  packaging  materials used to contain, protect, deliver, present, or
    38  distribute the products they sell, offer for  sale,  or  distribute  for
    39  sale in the state.
    40    (c)  Beginning  eight  years after the program implementation date set
    41  forth in subdivision three of section 27-3407 or January  first  of  the
    42  eighth  year following the date on which a producer first registers with
    43  an organization if a producer registers after the program implementation
    44  date, such producer shall reduce the amount of primary plastic packaging
    45  material, and the amount of all other packaging material, for all  mate-
    46  rials  used  to  contain,  protect,  deliver, present, or distribute the
    47  products they sell, offer for sale, or  distribute  for  sale  into  the
    48  state, in each case, by twenty percent either on a company-wide basis or
    49  by  unit  weight,  for all packaging materials used to contain, protect,
    50  deliver, present, or distribute the products they sell, offer for  sale,
    51  or distribute for sale in the state.
    52    (d)  Beginning  ten  years  after  the program implementation date set
    53  forth in subdivision three of section 27-3407 or January  first  of  the
    54  tenth  year  following the date on which a producer first registers with
    55  an organization if a producer registers after the program implementation
    56  date, such producer shall reduce the amount of primary plastic packaging

        A. 1749                            24

     1  material, and the amount of all other packaging material, for all  mate-
     2  rials  used  to  contain,  protect,  deliver, present, or distribute the
     3  products they sell, offer for sale, or  distribute  for  sale  into  the
     4  state,  in  each  case,  by twenty-five percent either on a company-wide
     5  basis or by unit weight for all packaging  materials  used  to  contain,
     6  protect,  deliver,  present, or distribute the products they sell, offer
     7  for sale, or distribute for sale in the state.
     8    (e) Beginning twelve years after the program implementation  date  set
     9  forth  in  subdivision  three of section 27-3407 or January first of the
    10  twelfth year following the date on which a producer first registers with
    11  an organization if a producer registers after the program implementation
    12  date, such producer shall reduce the amount of primary plastic packaging
    13  material, and the amount of all other packaging material, for all  mate-
    14  rials  used  to  contain,  protect,  deliver, present, or distribute the
    15  products they sell, offer for sale, or  distribute  for  sale  into  the
    16  state, in each case, by thirty percent either on a company-wide basis or
    17  by  unit  weight,  for all packaging materials used to contain, protect,
    18  deliver, present, or distribute the products they sell, offer for  sale,
    19  or distribute for sale in the state.
    20    2.  The  reductions required by this section shall be measured against
    21  the packaging material the producer used  during  the  first  year  such
    22  producer registered with an organization.
    23    3.  These reductions shall be achieved by eliminating single-use pack-
    24  aging material, including  secondary  or  tertiary  packaging  material,
    25  elimination  of  packaging  material  components, reduction of packaging
    26  material components, or by transitioning to reusable or refillable pack-
    27  aging systems. Reductions may also be achieved by  substituting  plastic
    28  packaging  material  with  non-plastic  packaging material. However, the
    29  reductions required by this section shall not be achieved by  substitut-
    30  ing non-plastic materials with plastic materials or substituting recycl-
    31  able materials with non-recyclable materials.
    32    4.  In  the  case of a producer for which, as of the effective date of
    33  this title or upon entry into the market after such  effective  date,  a
    34  portion  of  its  packaging is reusable and contained within a reuse and
    35  refill system, such producer may apply to the department  for  a  waiver
    36  from  the  packaging reduction requirements set forth in subdivision one
    37  of this section with respect to that percentage  of  its  packaging,  by
    38  unit weight, which is contained within a reuse and refill system.
    39    5.  In  the case of a producer that demonstrates in a manner satisfac-
    40  tory to the department that, for the period beginning ten years prior to
    41  the effective date of this title and ending on the  date  which  is  two
    42  years  after  the effective date of this title, the producer reduced the
    43  amount of packaging used  to  contain,  protect,  deliver,  present,  or
    44  distribute the products the producer sells, offers for sale, or distrib-
    45  utes for sale into the state, such  producer may apply to the department
    46  for  a  waiver from the packaging reduction requirements of this section
    47  with respect to that percentage of its packaging, by unit weight,  which
    48  was reduced during such twelve-year period.
    49    6.  A  producer  may  apply  to  the  department for a waiver from the
    50  reduction requirements of this section if compliance is  impossible  due
    51  to  federal  law  or  otherwise conflicts with federal law.  Such waiver
    52  must be applied for annually.  In such application  the  producer  shall
    53  provide the department and the advisory council with sufficient informa-
    54  tion,  in  the  determination of the department in consultation with the
    55  advisory council, to make a determination on such application, including

        A. 1749                            25

     1  proof that the producer has taken all feasible actions  to  achieve  the
     2  reductions required by this section.
     3    7. Nothing in this section shall preclude a producer from going beyond
     4  the reduction standards in subdivision one of this section.
     5  § 27-3429. Recycled content standards.
     6    1.  Each  individual producer shall meet the recycling content targets
     7  contained in this section.
     8    2. Beginning two years after promulgation  of  rules  and  regulations
     9  pursuant to this title:
    10    (a) all glass containers manufactured in the state used by the produc-
    11  er shall contain, on average, at least thirty-five percent post-consumer
    12  recycled content;
    13    (b) all paper carryout bags sold, offered for sale, or given away free
    14  in  the  state  by  a producer shall contain, on average, at least forty
    15  percent post-consumer recycled content; except that a paper carryout bag
    16  that holds eight pounds or less shall only be required  to  contain,  on
    17  average, at least twenty percent post-consumer recycled content; and
    18    (c)  all plastic trash bags sold or offered for sale in the state by a
    19  producer shall contain, on average, at least twenty percent post-consum-
    20  er recycled content.
    21    3. The requirements of this section shall not  apply  to  reusable  or
    22  refillable packaging or containers.
    23    4.  Beginning  two  years  after  plan  implementation  begins for the
    24  initial organization, the department is authorized, in consultation with
    25  the advisory council, to:
    26    (a) establish content requirements for materials not listed in  subdi-
    27  vision two of this section; and
    28    (b)  modify the post-consumer recycled content targets for the materi-
    29  als set forth in subdivision two of this section, provided that  modifi-
    30  cations  do not result in a lesser percentage or an earlier year for the
    31  respective target.
    32  § 27-3431. Recyclability criteria and packaging recycling requirements.
    33    1. Beginning two years after the promulgation of rules and regulations
    34  pursuant to this title, packaging materials used  by  a  producer  shall
    35  meet the following recyclability criteria:
    36    (a)  be  capable  of  being sorted by entities that process recyclable
    37  material generated in the state;
    38    (b) have a consistent regional market for purchase, by  end  users  in
    39  the production of new products;
    40    (c) not contain the following:
    41    (i) opaque or pigmented polyethylene terephthalate;
    42    (ii) oxo-degradable additives, including oxo-biodegradable additives;
    43    (iii) polyethylene terephthalate glycol in rigid packaging;
    44    (iv)  label  constructions,  including  adhesives, inks, materials and
    45  formats, or features that render a package non-recyclable or  disruptive
    46  to the recycling process; and
    47    (v) DoPS - polystyrene, excluding EPS (expanded polystyrene);
    48    (d) meet the post-consumer content requirements of this title; and
    49    (e) any other criteria determined by the department.
    50    2.  Each  individual  producer shall be required to meet the following
    51  recycling rate standards:
    52    (a) With respect to the producer's non-plastic packaging:
    53    (i) Beginning January first, two thousand thirty, a minimum  of  thir-
    54  ty-five  percent  of  packaging  material reported by the producer or an
    55  organization as supplied into the state shall  be  reused  or  recycled,
    56  with a minimum of five percent being reused;

        A. 1749                            26

     1    (ii)  Beginning January first, two thousand thirty-seven, a minimum of
     2  fifty percent of packaging material  reported  by  the  producer  or  an
     3  organization  as  supplied  into  the state shall be reused or recycled,
     4  with a minimum of ten percent being reused; and
     5    (iii)  Beginning  January  first, two thousand fifty-two, a minimum of
     6  seventy-five percent of packaging material reported by the  producer  or
     7  an  organization as supplied into the state shall be reused or recycled,
     8  with a minimum of twenty percent being reused.
     9    (b) With respect to plastic packaging:
    10    (i) Beginning January first, two thousand thirty, a minimum  of  twen-
    11  ty-five  percent  of plastic packaging material reported by the producer
    12  or an organization as supplied into the state shall be reused  or  recy-
    13  cled;
    14    (ii)  Beginning January first, two thousand thirty-seven, a minimum of
    15  fifty percent of plastic packaging material reported by the producer  or
    16  an  organization as supplied into the state shall be reused or recycled;
    17  and
    18    (iii) Beginning January first, two thousand fifty-two,  a  minimum  of
    19  seventy-five  percent  of  plastic  packaging  material  reported by the
    20  producer or an organization as supplied into the state shall  be  reused
    21  or recycled.
    22    3. The department may adjust the recycling rates in subdivision two of
    23  this  section  by  rulemaking  based on information gathered through the
    24  needs assessment or provided in producer plans and reports, and/or based
    25  on consideration of environmental, technical and economic conditions. An
    26  adjustment to the statewide recycling and reuse performance targets  may
    27  not adjust the recycling rate target to less than thirty percent or more
    28  than seventy-five percent.
    29    4.  A producer may apply to the department for a waiver from the recy-
    30  cling rate requirements of this section if compliance is impossible  due
    31  to  federal  law  or  otherwise conflicts with federal law.  Such waiver
    32  shall be applied for annually. In such application  the  producer  shall
    33  provide the department and the advisory council with sufficient informa-
    34  tion,  in  the  determination of the department in consultation with the
    35  advisory council, to make a determination on such application, including
    36  proof that the producer has taken all feasible actions  to  achieve  the
    37  reductions required by this section.
    38    5. The requirements of subdivision two of this section shall not apply
    39  to reusable or refillable packaging or containers.
    40  § 27-3433. Establishment of the office of recycling inspector general.
    41    1. The commissioner shall establish an independent office of recycling
    42  inspector general within the department. The recycling inspector general
    43  shall  evaluate  the programs and organizations created pursuant to this
    44  title on an annual basis and shall ensure such programs are  functioning
    45  properly,  and  that  all  organizations and producers are in compliance
    46  with the requirements of this title.
    47    2. The recycling inspector general shall have the authority to  inves-
    48  tigate  the  compliance  of  producers  and  the  organization  with all
    49  provisions of this title and to bring enforcement actions for violations
    50  of this title pursuant to the provisions  of  section  27-3435  of  this
    51  title.   A violation by the organization as the result of actions by one
    52  or more producers shall be enforceable by the recycling inspector gener-
    53  al as violations against such producers.
    54  § 27-3435. Penalties and enforcement.
    55    1. Failure to comply with the requirements of this title shall subject
    56  the organization or an individual producer to penalties for  violations.

        A. 1749                            27

     1  The  department,  recycling  inspector general, or attorney general, may
     2  conduct investigations, including inspecting operations, facilities, and
     3  records of producers and organizations, and performing audits of produc-
     4  ers and organizations, to determine whether such producers and organiza-
     5  tions are complying with the requirements of this title.
     6    2.  The  department,  the recycling inspector general, or the attorney
     7  general, shall notify an organization or  producer  of  any  conduct  or
     8  practice that does not comply with the requirements of this title and of
     9  any inconsistencies identified in an audit.
    10    3.  The  department, the recycling inspector general, and the attorney
    11  general, may issue a notice of violation to, and impose  an  administra-
    12  tive  civil  penalty  not  to  exceed  one  thousand dollars per day per
    13  violation on any entity not in compliance with this title or any of  the
    14  regulations  the  department  adopts  to  implement  this title. For the
    15  purposes of this section, each product line that is  sold,  offered  for
    16  sale,  or  distributed  to  consumers  via retail commerce in the state,
    17  including through an internet transaction, shall be considered  a  sepa-
    18  rate violation.
    19    4. Civil penalties under this section shall be assessed by the depart-
    20  ment  after  an  opportunity  to  be heard pursuant to the provisions of
    21  section 71-1709 of this chapter, or  by  the  court  in  any  action  or
    22  proceeding  pursuant to section 71-2727 of this chapter, and in addition
    23  thereto, such person or entity may by similar process be  enjoined  from
    24  continuing such violation and any permit, registration or other approval
    25  issued  by  the  department  may  be  revoked  or suspended or a pending
    26  renewal denied.
    27  § 27-3437. Rules and regulations.
    28    1. Within eighteen months after the effective date  of  this  section,
    29  the  department  shall promulgate all rules and regulations necessary to
    30  implement, administer, and enforce the provisions of this title.
    31    2. When promulgating rules pursuant to the provisions of this section,
    32  the department shall solicit input from the public of any draft rule  or
    33  regulation  to  implement this section, including at a minimum a ninety-
    34  day comment period and one public hearing on such draft rules.
    35  § 27-3439. State preemption.
    36    Jurisdiction in all matters pertaining to costs and funding mechanisms
    37  of packaging reduction  and  recycling  organizations  relating  to  the
    38  recovery  of  packaging materials shall, by this title, be vested exclu-
    39  sively in the state; provided, however, that nothing in this title shall
    40  preclude any city, town, village or  other  local  planning  units  from
    41  determining  what  materials  shall be included for recycling in a local
    42  government recycling collection program or  shall  preclude  any  person
    43  from  coordinating,  for recycling or reuse, the collection of packaging
    44  materials and products.
    45  § 27-3441. Other assistance programs.
    46    Nothing in this title shall impact any producer  eligibility  for  any
    47  state  or local incentive or assistance program to which they are other-
    48  wise eligible.
    49  § 27-3443. Antitrust protections.
    50    A producer shall not be liable for any claim of a violation  of  anti-
    51  trust, restraint of trade, or unfair trade practice arising from conduct
    52  undertaken  in  order to comply with this title; provided, however, this
    53  section shall not apply to any agreement establishing or  affecting  the
    54  price  of  packaging material, or the output or production of any agree-
    55  ment restricting the geographic area or  customers  to  which  packaging
    56  material will be sold.

        A. 1749                            28

     1  § 27-3445. Severability.
     2    The  provisions  of  this  title shall be severable and if any phrase,
     3  clause, sentence or provision of this title or the applicability thereof
     4  to any person or circumstance shall be held invalid,  the  remainder  of
     5  this title and the application thereof shall not be affected thereby.
     6    §  3.  The  environmental  conservation law is amended by adding a new
     7  section 37-0202 to read as follows:
     8  § 37-0202. Applicability.
     9    This article shall only have effect to the extent  that  the  prohibi-
    10  tions  in  this title are not otherwise substantially given effect or in
    11  conflict with the provisions of title thirty-four of article twenty-sev-
    12  en of this chapter.
    13    § 4. This act shall take effect immediately.
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