Bill Text: NY A05322 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 75-1)

Status: (Introduced) 2024-06-06 - ordered to third reading rules cal.482 [A05322 Detail]

Download: New_York-2023-A05322-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5322--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      March 7, 2023
                                       ___________

        Introduced  by  M.  of  A. GLICK, BURDICK, L. ROSENTHAL, THIELE, PAULIN,
          SHIMSKY, COLTON, REYES, CARROLL, DARLING,  RAJKUMAR,  DICKENS,  GONZA-
          LEZ-ROJAS, LUNSFORD, GALLAGHER, BURKE, STECK, KELLES, LEVENBERG, RAGA,
          SIMON,  CUNNINGHAM, SIMONE, SHRESTHA, DE LOS SANTOS, TAPIA, O'DONNELL,
          FAHY, EACHUS, LAVINE, SEAWRIGHT, DINOWITZ, EPSTEIN,  HEVESI,  ALVAREZ,
          FORREST,  OTIS,  GIBBS,  STIRPE, ARDILA, RIVERA, CRUZ, ANDERSON, McDO-
          NALD, SILLITTI, AUBRY, RAMOS, WEPRIN -- read once and referred to  the
          Committee  on Environmental Conservation -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee

        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 the packaging reduction organization.
     9          27-3405. Responsibilities of packaging reduction organization.
    10          27-3407. Packaging reduction and recycling organization plan.
    11          27-3409. Packaging reduction and recycling plan approval.
    12          27-3411. Packaging reduction and recycling advisory council.
    13          27-3413. Funding mechanism.
    14          27-3415. Collection and convenience.
    15          27-3417. Producer responsibilities.
    16          27-3419. Department responsibilities.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08868-06-3

        A. 5322--A                          2

     1          27-3421. Statewide  packaging  reduction,  reuse,  and recycling
     2                    needs assessment.
     3          27-3423. Education and outreach program.
     4          27-3425. Prohibition on certain toxic substances and materials.
     5          27-3427. Non-reusable packaging reduction standards.
     6          27-3429. Recycled content standards.
     7          27-3431. Recyclability criteria and packaging recycling require-
     8                    ments.
     9          27-3433. Establishment  of  the  office  of  recycling inspector
    10                    general.
    11          27-3435. Penalties and enforcement.
    12          27-3437. Rules and regulations.
    13          27-3439. State preemption.
    14          27-3441. Other assistance programs.
    15          27-3443. Severability.
    16  § 27-3401. Definitions.
    17    As used in this title:
    18    1. "Advisory council" or "council" means the packaging  reduction  and
    19  recycling  advisory  council  established  under section 27-3411 of this
    20  title.
    21    2. "Beverage container" shall have the same meaning as is set forth in
    22  subdivision two of section 27-1003 of this article.
    23    3. "Brand" means any mark, word,  name,  symbol,  design,  device,  or
    24  graphical  element  or  a combination thereof, including a registered or
    25  unregistered trademark, that identifies and distinguishes a product from
    26  other products.
    27    4. "Contamination" means:
    28    (a) the presence of materials in a  given  collected  material  stream
    29  that  are  not on the minimum recyclables list maintained by the depart-
    30  ment; or
    31    (b) the presence of materials in a given recycled  material  delivered
    32  as  a  feedstock  or  commodity  that are not specified or accepted as a
    33  component of the feedstock or commodity.
    34    5. "Discarded", "discards", "generated" or "generation" means  packag-
    35  ing material that has been used for its intended purpose and is no long-
    36  er  needed  by consumers, businesses, institutions, and other users, and
    37  can be managed through reuse, recycling, or disposal.
    38    6. "Disposal" means the landfilling or  incineration  of  material  or
    39  products.    "Disposal"  shall  also  include  energy recovery or energy
    40  generation by any means, including, but not  limited  to,  incineration,
    41  combustion,  pyrolysis, gasification, or solvolysis, waste-to-energy, or
    42  waste-to-fuel, or any  other  chemical  conversion  process.  "Disposal"
    43  shall also include the use of materials as landfill cover.
    44    7. "Eco-modulation" means structuring program fees in a way to provide
    45  producers  with  financial  incentives  to  reduce  waste at the source,
    46  increase recyclability of packaging materials, promote reusable  packag-
    47  ing  products,  including  those  that  are contained within a reuse and
    48  refill system, discourage  and  decrease  contamination,  disincentivize
    49  designs  or  practices that increase the costs and adverse environmental
    50  impacts of managing the packaging materials, and encourage  designs  and
    51  processes  that improve and facilitate development of infrastructure and
    52  systems for source reduction, reuse, recycling, and composting.
    53    8. "Disadvantaged community" shall have the same  meaning  as  is  set
    54  forth in subdivision five of 75-0101 of this chapter.
    55    9.  "Local  government"  means any municipal corporation, governmental
    56  subdivision of the  state,  local  government  unit,  special  district,

        A. 5322--A                          3

     1  school,  local or regional board, commission, or authority authorized by
     2  law to plan or provide for waste  management  services  for  a  specific
     3  geographical area.
     4    10.  "Packaging  material"  or "material" means a discrete material or
     5  category of material, regardless of  recyclability,  including  but  not
     6  limited to such material types that are flexible, foam, or rigid materi-
     7  al,  including paper, cardboard, plastic, glass, metal, or multi-materi-
     8  al, that is used for the containment,  protection,  handling,  delivery,
     9  transport,  distribution,  or  presentation  of  another product that is
    10  sold, offered for sale, imported, or distributed in the state, including
    11  through an internet transaction, and single-use  plastic  products  that
    12  frequent  the residential waste stream or are plastic products that have
    13  the effect of disrupting recycling processes, including, but not limited
    14  to, single-use plastic items such as straws, utensils, cups, plates, and
    15  plastic bags. Packaging material does not include:
    16    (a) Medical devices and packaging which  are  included  with  products
    17  regulated as a drug, medical device, or dietary supplement by the United
    18  States  food  and  drug administration under the federal food, drug, and
    19  cosmetic act, 21 U.S.C. 321 et seq., Sec. 3.2(E)  of  21  U.S.  code  of
    20  federal regulations, or the dietary supplement health and education act;
    21    (b)  Animal  biologics, including vaccines, bacterins, antisera, diag-
    22  nostic kits, and other products or biological origin, and other  packag-
    23  ing  materials  regulated by the United States department of agriculture
    24  under the virus, serum, toxin act, 21 U.S.C. 151-159;
    25    (c) Packaging regulated by the  Federal  Insecticide,  Fungicide,  and
    26  Rodenticide  Act,  7 U.S.C. Sec. 136 et seq. or other applicable federal
    27  law, rule, or regulation;
    28    (d) Packaging used to contain hazardous or  flammable  products  regu-
    29  lated  by the 2012 federal Occupational Safety and Health Administration
    30  Hazard Communications Standard (29 C.F.R. 1910.1200);
    31    (e) Beverage containers subject  to  a  returnable  container  deposit
    32  under title ten of this article;
    33    (f)  Infant  formula  as  defined in section 321(z) of title 21 of the
    34  United States code of federal regulations;
    35    (g) Medical foods as defined in section 360ee(b)(3) of title 21 of the
    36  United States code of federal regulations; and
    37    (h) Architectural paint containers collected and managed  pursuant  to
    38  title twenty of this article.
    39    11. "Packaging reduction and recycling organization" or "organization"
    40  means  a  registered  501(c)(3)  not-for-profit charitable organization,
    41  pursuant to 26 U.S.C. 501(c)(3) under contract with the  department  and
    42  authorized  to  collect  producer fees, assist producers with compliance
    43  with the requirements of this title,  provide  technical  assistance  to
    44  producers and implement the program.
    45    12.  "Packaging  reduction and recycling plan" or "plan" means a docu-
    46  ment in which an organization describes the efforts it will undertake to
    47  comply with the requirements of this title.
    48    13. "Packaging reduction and recycling program" or "program" means the
    49  program implemented by an organization, and overseen by the  department,
    50  to comply with and implement the provisions of this title.
    51    14.  "Post-consumer  recycled  material"  means  new material produced
    52  using material resulting from recycling.
    53    15. "Primary packaging" means the packaging in direct contact with the
    54  product itself, also sometimes referred to as a consumer unit.
    55    16. "Producer" means the following entities, other than local  govern-
    56  ments, state governments and the federal government, for compliance with

        A. 5322--A                          4

     1  the  requirements  for  packaging  materials  sold, offered for sale, or
     2  distributed to consumers in or into this state:
     3    (a)  For packaging materials sold or served to consumers at a physical
     4  retail location in this state:
     5    (i) If the packaging materials are sold or served under  the  manufac-
     6  turer's own brand or are sold or served in packaging materials that lack
     7  identification  of  a  brand, the producer of the packaging materials is
     8  the person that manufactures the product;
     9    (ii) If subparagraph (i) of this paragraph does not apply, the produc-
    10  er of the packaging materials is the person that is the  licensee  of  a
    11  brand or trademark under which a product is sold or served to a consumer
    12  in  or  into  this  state, whether or not the trademark is registered in
    13  this state, unless the  manufacturer  of  the  packaging  materials  has
    14  agreed  to accept responsibility; where the producer is a business oper-
    15  ated wholly or in part as a franchise, the producer is  the  franchisor,
    16  if such franchisor has franchisees that are resident in the state;
    17    (iii)  If  there is no person as described in subparagraph (i) or (ii)
    18  of this paragraph within the United States, the producer of the  packag-
    19  ing  material  is  the  person  who  imports the product into the United
    20  States for use in a commercial enterprise that sells, offers  for  sale,
    21  or distributes the product to consumers in this state.
    22    (b) For products sold or distributed to consumers in packaging materi-
    23  als in or into this state via remote sale or distribution:
    24    (i)  The  producer  of packaging materials used to directly protect or
    25  contain the product is the same as the producer defined in paragraph (a)
    26  of this subdivision.
    27    (ii) The producer of packaging materials used to ship the product to a
    28  consumer is the person that manufacturers the shipping material.
    29    17. "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    18. "Recyclable" means a packaging material that meets the criteria in
    33  section 27-3431 of this title.
    34    19. "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    20. "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    21. "Recycling rate" means the percentage of any given packaging  type
    48  that  is ultimately recycled. The recycling rate for any packaging mate-
    49  rial shall be calculated as the total weight of packaging that is  recy-
    50  cled  in  a given year divided by the total weight of packaging material
    51  generated in that year.  Material  losses,  including  contaminants  and
    52  residues,  accruing  during collection, processing and manufacturing new
    53  products do not count as recycled and  shall  not  be  included  in  the
    54  numerator of the equation.
    55    22.  "Reuse"  means  the  return  of  packaging back into the economic
    56  stream for use in the same kind of application intended for the original

        A. 5322--A                          5

     1  packaging, without effectuating a change in the original composition  of
     2  the package, the identity of the product, or the components thereof.
     3    23.  "Reuse  and  refill  system" means a program or set of mechanisms
     4  designed to  facilitate  multiple  uses  of  packaging.  Mechanisms  may
     5  include,   but  are  not  limited  to,  deposits,  incentives,  curbside
     6  collection, collection kiosks, refill stations, dishwashing  facilities,
     7  and re-distribution networks.
     8    24.  "Reusable or refillable packaging and containers" means packaging
     9  material and containers that are specifically designed and  manufactured
    10  to  maintain shape and structure, and be materially durable for repeated
    11  sanitizing, washing, and reuse.
    12    25. "Toxic packaging task force" means the toxic packaging task  force
    13  established by subdivision two of section 27-3425 of this title.
    14    26.  "Toxic  substances" means a chemical or chemical class identified
    15  by a state agency, federal agency, international intergovernmental agen-
    16  cy, accredited research university, or other  scientific  entity  deemed
    17  authoritative  by  the  department  on  the basis of credible scientific
    18  evidence as being one or more of the following:
    19    (a) A chemical or chemical class that is a carcinogen, mutagen, repro-
    20  ductive toxicant, immunotoxin, neurotoxicant, or endocrine disruptor.
    21    (b) A chemical or chemical class that is  persistent  or  bioaccumula-
    22  tive.
    23    (c)  A chemical or chemical class that may harm the normal development
    24  of a fetus or child or cause other developmental toxicity in  humans  or
    25  wildlife.
    26    (d)  A  chemical or chemical class that may harm organs or cause other
    27  systemic toxicity.
    28    (e) A chemical or chemical class that may  have  adverse  air  quality
    29  impacts,  adverse  ecological  impacts, adverse soil quality impacts, or
    30  adverse water quality impacts.
    31    (f) A chemical or chemical class that the  department  has  determined
    32  has equivalent toxicity to the above criteria.
    33  § 27-3403. Selection of the packaging reduction organization.
    34    1.  Until the date which is ten years after the effective date of this
    35  title, there shall be only one packaging reduction organization and  all
    36  producers  shall  be  required to register with such packaging reduction
    37  organization.
    38    2. Consistent with the requirements  of  this  title,  within  fifteen
    39  months  of the effective date of this title, the department shall select
    40  and enter into a contract with a not-for-profit organization to  act  as
    41  the initial organization in order to operate the packaging reduction and
    42  recycling program.
    43    3. Within nine months of the effective date of this title and consist-
    44  ent   with  applicable  competitive  bidding  requirements  under  state
    45  purchasing laws,  the department shall issue a request for proposals for
    46  the operation of the packaging  reduction  and  recycling  program.  The
    47  successful  bidder  shall  be  required  to  include,  at a minimum, the
    48  following information:
    49    (a) A description of how  the  bidder  will  administer  the  program,
    50  including  the  mechanisms  and  processes  for  providing assistance to
    51  producers to comply with the reporting requirements of this title;
    52    (b) The mechanisms and processes the bidder will use to compile infor-
    53  mation from producers;
    54    (c) How the bidder intends to  manage  and  account  for  all  program
    55  related  funds which pass through the organization, including how timely
    56  reimbursements to local governments will be provided;

        A. 5322--A                          6

     1    (d) A financial assurance plan that ensures all program funds held  by
     2  the  organization  are  immediately and exclusively forfeited and trans-
     3  ferred to or otherwise made immediately available to the  department  if
     4  the  organization's  contract  with  the department is terminated by the
     5  department, or expires;
     6    (e) A proposed budget outlining the anticipated costs of operating the
     7  program  and  a description of the method by which the bidder intends to
     8  determine and collect producer payments during the initial startup peri-
     9  od; and
    10    (f) Any other additional information required by the department.
    11    4. If, at the close of the competitive bidding process under  subdivi-
    12  sion three of this section, the department determines that no bidder has
    13  submitted,  in  accordance  with such subdivision, a proposal that meets
    14  the requirements of this  section,  the  department  shall  operate  the
    15  program  by  itself  or  designate  a   state public body to operate the
    16  program.
    17    5. If after recommendation by the advisory council pursuant to  subdi-
    18  vision  ten  of  section 27-3411 of this title the department determines
    19  that it would be beneficial for there  to  be  additional  organizations
    20  implementing  the  program, beginning ten years after the effective date
    21  of this title, the department may issue  a  request  for  proposals  for
    22  additional  organizations  in a manner consistent with the provisions of
    23  this section. Should  the department determine to have additional organ-
    24  izations,  the    department  shall  promulgate  regulations  to  ensure
    25  consistency and  coordination between all organizations.
    26  § 27-3405. Responsibilities of packaging reduction organization.
    27    1. Producers shall register with a packaging reduction organization to
    28  meet  the  responsibilities of the program pursuant to the provisions of
    29  this section.
    30    2. Each packaging reduction organization shall:
    31    (a) Develop a packaging reduction and recycling plan and  submit  such
    32  plan  to  the  advisory  council  for  review and comment, and after any
    33  modifications in response to such  comments,  submit  the  plan  to  the
    34  commissioner for approval pursuant to section 27-3407 of this title;
    35    (b)  Collect  and  compile  data from producers as required by section
    36  27-3417 of this title;
    37    (c) Collect fees due from producers as required by section 27-3413  of
    38  this title;
    39    (d) Reimburse the department and any other relevant state agencies for
    40  the  costs  associated  with  conducting  the statewide needs assessment
    41  required by section 27-3421 of this title,  the  administration  of  the
    42  program  by the department, and the expenses of the advisory council and
    43  the toxic packaging task force;
    44    (e) Distribute funds to reimburse local governments and private compa-
    45  nies for the costs associated  with  the  implementation  of  reduction,
    46  refill, and reuse programs, and the collection, transportation and recy-
    47  cling, disposal or other processing of packaging materials;
    48    (f)  Offer technical support to producers, with an emphasis on support
    49  to small businesses, to assist them with compliance  with  the  require-
    50  ments  of  this  title, including information about procuring affordable
    51  alternatives to non-compliant packaging and reducing packaging.
    52    3. Annually, each organization shall submit a report to the department
    53  that, at a minimum, must include the following information:
    54    (a) Contact information for the organization;
    55    (b) A list of all (i) producers, (ii) brands, and (iii) products  that
    56  each producer sells, offers for sale, or distributes into the state that

        A. 5322--A                          7

     1  are  contained,  protected,  delivered,  presented, or distributed in or
     2  using packaging, in each case identified by the Universal  Product  Code
     3  (UPC) if the product has one;
     4    (c) The total amount, by both weight and number of units, of each type
     5  of  packaging material used to contain, protect, handle, deliver, trans-
     6  port, distribute,  or  present  products  sold,  offered  for  sale,  or
     7  distributed  into the state by each individual producer during the prior
     8  calendar year;
     9    (d) The total amount, by both weight and  number  of  units,  of  each
    10  material  used to contain, protect, handle, deliver, transport, distrib-
    11  ute, or present products sold, offered for sale, or distributed into the
    12  state by all producers during the prior calendar year;
    13    (e) A complete accounting of all payments made to and by the organiza-
    14  tion during the prior calendar year;
    15    (f) A list of producers reasonably believed to be  out  of  compliance
    16  with  the  requirements  of  this title, and the reason the organization
    17  reasonably believes the producer to be out of compliance.    Information
    18  on  non-compliant  producers  shall  be provided to the commissioner and
    19  recycling inspector general's office in a timely fashion and for  possi-
    20  ble enforcement action by the office;
    21    (g)  A description of the educational and outreach efforts made by the
    22  organization in the prior calendar year,  and  how  those  efforts  were
    23  designed  to reduce packaging waste, and increase reuse and recycling of
    24  packaging materials;
    25    (h) An assessment of whether the fee structure adopted by the  depart-
    26  ment  pursuant  to  section  27-3413 of this title has been effective in
    27  incentivizing improvements to the design of packaging material,  includ-
    28  ing  actual reduction of packaging, increases in reusable and refillable
    29  packaging, recycling rates for packaging materials, and decreases in the
    30  amount of packaging;
    31    (i) A description of the reimbursements and expenditures made pursuant
    32  to section 27-3413 of this title;
    33    (j) Audited financial statements;
    34    (k) The results of the review conducted pursuant to  subdivision  four
    35  of this section; and
    36    (l) Any additional information required by the department.
    37    4.  Each organization shall conduct an annual review process to deter-
    38  mine whether packaging materials are recyclable. This  review  shall  be
    39  conducted in consultation with representatives of end markets, including
    40  recycled commodities brokers and manufacturers who purchase post-consum-
    41  er  material  for use in manufacturing new products, and in consultation
    42  with  local  governments.  For  the  purposes  of  calculating  producer
    43  payments  and  local  government  reimbursements in accordance with this
    44  title, this annual process shall include a transitional  period  between
    45  the  date  the  determination  is  finalized  and  the date it goes into
    46  effect.
    47    5. Each organization shall conduct public outreach and provide consum-
    48  ers with educational and informational materials related to reducing the
    49  amount of packaging discarded, recycled, and disposed of in the state as
    50  outlined in section 27-3423 of this title.
    51    6. Each  organization  shall  operate  a  program  that  provides  for
    52  collection convenience as described in section 27-3415 of this title.
    53    7.  Each  organization  shall  not spend funds on lobbying or campaign
    54  contributions to any candidates running for office.
    55    8. An organization shall not share, except with  the  department,  the
    56  advisory  council, and the toxic packaging task force, or as required by

        A. 5322--A                          8

     1  law, any proprietary information that is identified  by  a  producer  as
     2  proprietary information.
     3  § 27-3407. Packaging reduction and recycling organization plan.
     4    1.  Within  two years of the effective date of this title, the initial
     5  packaging reduction organization, shall develop and submit  a  packaging
     6  reduction  and  recycling  plan on implementation of the rules and regu-
     7  lations of this title, including ensuring timely disbursements to  local
     8  governments, to the department for approval. The plan shall be submitted
     9  to  the  advisory council for review pursuant to section 27-3411 of this
    10  title prior to the department's approval.  Any subsequent or  additional
    11  organization  shall develop and submit a packaging reduction and recycl-
    12  ing plan and comply with all the requirements of this section, and  have
    13  such plan approved pursuant to section 27-3409 of this title.
    14    2.  The  plan  shall  cover five years and be updated every five years
    15  following the approval of the original plan. The department  shall  have
    16  the  discretion  to  require the plan to be reviewed or revised prior to
    17  the five-year period pursuant to section 27-3419 of this title.
    18    3. Each producer shall begin program implementation within six  months
    19  after  the date the plan for the initial organization is approved and in
    20  no event later than three years of the effective date of this title.  If
    21  no  plan is approved by that timeframe, the producer shall be subject to
    22  penalties for noncompliance.
    23    4. Any person that becomes a producer after the plan for  the  initial
    24  organization  is  approved  shall  register  with  a packaging reduction
    25  organization and begin program implementation within six months  thereof
    26  or be subject to penalties for noncompliance.
    27    5. The submitted plan shall include, but not be limited to:
    28    (a)  contact  information, including the name, electronic and physical
    29  address, and telephone number of the authorized  representative  of  the
    30  producer or producers;
    31    (b)  the  identity  of  the producer or producers participating in the
    32  plan;
    33    (c) a comprehensive list of the types and brands of covered  materials
    34  for which the producer or producers are responsible for;
    35    (d) a description of (i) the proposed funding mechanism, identified in
    36  section  27-3413  of  this  title,  that  meets the requirements of this
    37  title, and (ii) how the organization will maintain a  financial  reserve
    38  sufficient  to operate the program in a fiscally prudent and responsible
    39  manner;
    40    (e) an objective formula  establishing  a  reimbursement  rate,  which
    41  covers  obligations  identified  in  the needs assessment and takes into
    42  account variable regional costs, for participating local governments  or
    43  private sector service providers;
    44    (f)  a  description of the process for participating local governments
    45  or private sector service providers to recoup reasonable costs as estab-
    46  lished by the objective formula,  from  the  producer  or  organization,
    47  including,  as  applicable,  any  administrative,  sorting,  collection,
    48  transportation, public education, or processing costs, if the  organiza-
    49  tion  uses  existing services through a local government or obtains such
    50  services from a private  sector  service  provider,  which  process  and
    51  recoupment  may  be structured to incentivize improvements in management
    52  of materials including without limitation in  the  manner  described  in
    53  paragraph (i) of this subdivision;
    54    (g)  a  description  of  the characteristics of each type of packaging
    55  material that is relevant to the eco-modulating factors set forth pursu-
    56  ant to section 27-3413 of this title;

        A. 5322--A                          9

     1    (h) if the local government does  not  elect  to  provide  service,  a
     2  description  of  the  process used for contracting with a private sector
     3  entity to provide such services and the recoupment of reasonable  costs,
     4  including  procedures  to  ensure that such private sector entity is not
     5  compensated  for such services by both the organization and the consumer
     6  for the same service;
     7    (i) how the producers and/or  organization  will  work  with  existing
     8  waste  haulers,  material  recovery  facilities,  recyclers,  and  local
     9  governments to operate or expand current collection programs to  address
    10  material  collection methods, improve efficiency and yield of processing
    11  materials from  separate  collection  streams,  and  increase  packaging
    12  reduction and reuse;
    13    (j)  a description of how the producers or organization will use open,
    14  competitive, and fair procurement practices should they  directly  enter
    15  into  contractual  agreements  with service providers, including munici-
    16  palities and private entities;
    17    (k) a description of how a local government  will  participate,  on  a
    18  voluntary basis, with collection and how existing local government recy-
    19  cling processing and collection infrastructure will be used;
    20    (l)  a  description of how the producers or organization plans to meet
    21  the convenience requirements set forth in this title;
    22    (m) a description of the process for end-of-life management, including
    23  recycling and disposal of residuals collected for recycling, using envi-
    24  ronmentally sound management practices;
    25    (n) a description of how the organization shall provide the option  to
    26  purchase recycled materials from processors;
    27    (o)  a  description  of how producers are complying with and exceeding
    28  the  waste  reduction,  toxics,  recycling  and  post-consumer   content
    29  requirements of the title;
    30    (p) a description of how the organization will strategically invest in
    31  existing and future reuse and recycling infrastructure and market devel-
    32  opment  in the state in consultation with the department and in a manner
    33  not inconsistent with the needs assessment, including, but  not  limited
    34  to,  installing  or  upgrading  equipment  to improve sorting of covered
    35  materials or mitigating the impacts of materials to other commodities at
    36  existing sorting and processing facilities, and capital expenditures for
    37  new technology, equipment, and facilities;
    38    (q) a process to address concerns and  questions  from  customers  and
    39  residents;
    40    (r)  a  description  of  the  organization's public outreach education
    41  program for consumers and other stakeholders;
    42    (s) a description of how comments of stakeholders were considered  and
    43  addressed in the development of the plan; and
    44    (t)  a detailed description of how the organization consulted with the
    45  advisory council, the public, and other stakeholders in the  development
    46  of  the  plan  prior  to  its  submission to the department, and to what
    47  extent the organization specifically incorporated the advisory council's
    48  input into the plan.
    49    6. The organization shall also provide the advisory council a  reason-
    50  able  period  of time to review and comment upon the draft plan prior to
    51  its submission to the department in accordance with section  27-3409  of
    52  this  title which shall in no event be less than sixty days.  The organ-
    53  ization shall make an assessment of comments received and shall  provide
    54  a  summary  and an analysis of the issues raised by the advisory council
    55  and significant changes suggested by any such comments, a  statement  of
    56  the  reasons  why any significant changes were not incorporated into the

        A. 5322--A                         10

     1  plan, and a description of any changes made to the plan as a  result  of
     2  such comments.
     3  § 27-3409. Packaging reduction and recycling plan approval.
     4    1.  Before  approval  or denial of a packaging reduction and recycling
     5  plan can be made in accordance with this title, the producer  or  organ-
     6  ization  shall  submit the plan to the packaging reduction and recycling
     7  advisory council.  The advisory council shall then make a recommendation
     8  regarding approval or disapproval of the plan in accordance with section
     9  27-3411 of this title.
    10    2. Within sixty days of the advisory council making  a  recommendation
    11  to  the department, the department shall make a determination to approve
    12  the plan as submitted; approve the plan with  conditions;  or  deny  the
    13  plan, with reasons for the denial.
    14    3.  The department may establish additional plan requirements in addi-
    15  tion  to  those  identified  herein to fulfill the intent of this title;
    16  provided, however, that any additional requirements shall be established
    17  one year prior to a required submission of a plan unless such additional
    18  requirements are in relation to the  power  granted  to  the  department
    19  section 27-3419 of this title.
    20    4.  No  later than six months after the date the plan is approved, the
    21  organization shall implement  the  approved  plan.  The  department  may
    22  rescind  the approval of an approved plan at any time for cause and with
    23  documented justification.
    24  § 27-3411. Packaging reduction and recycling advisory council.
    25    1. There is hereby  established  within  the  department  a  packaging
    26  reduction and recycling advisory council to receive and review the pack-
    27  aging  reduction  and  recycling plans required under section 27-3407 of
    28  this title, to make recommendations to the department regarding approval
    29  of the plans, and to review the annual reports produced by organizations
    30  and to make recommendations  to  the  department  and  organizations  as
    31  required by this section.
    32    2. The advisory council shall convene for the first time no later than
    33  one  year  after  the effective date of this title. The advisory council
    34  shall be composed of thirteen members.  Seven shall be appointed by  the
    35  commissioner,  three  shall be appointed by the speaker of the assembly,
    36  and three shall be appointed by the temporary president of  the  senate.
    37  The  advisory council shall include at least one member from each of the
    38  following:
    39    (a) a  local  government  association  or  local  government  program,
    40  including an additional local government representative from cities with
    41  a population of one million or more residents;
    42    (b) a statewide environmental organization;
    43    (c) a representative of an environmental justice community affected by
    44  solid waste infrastructure;
    45    (d) an environmental justice organization;
    46    (e) a statewide waste disposal or recycling association;
    47    (f) a materials recovery facility located within the state;
    48    (g) a recycling collection provider;
    49    (h)  a  manufacturer  of  packaging  materials utilizing post-consumer
    50  recycled content;
    51    (i) a consumer advocate;
    52    (j) a retailer;
    53    (k) a public health specialist; and
    54    (l) a producer and an organization established  under  this  title  as
    55  non-voting members.

        A. 5322--A                         11

     1    3.  Appointments  to  the  advisory  council  are  term-limited to ten
     2  consecutive years of service; the chair shall be chosen through a major-
     3  ity vote of its members and shall serve no longer than three consecutive
     4  years.
     5    4.  Advisory  council members shall serve without compensation, except
     6  that a member of the committee who is a state officer  or  employee  may
     7  receive  his  or her regular compensation while engaging in the business
     8  of the committee, but shall be entitled to receive reimbursement for any
     9  actual, necessary expenses incurred in the course of performing business
    10  for the committee.
    11    5. All decisions made by the advisory  council  shall  be  decided  by
    12  voting  and votes shall only be valid when a quorum is present. A quorum
    13  shall exist when greater than fifty percent of voting members are  pres-
    14  ent. The advisory council shall meet at least once a year by the call of
    15  the chair or by request of more than half the members.  The decisions of
    16  the advisory council shall be by vote of the majority of its membership.
    17    6.  The  council  shall  determine  whether  the  plan submitted under
    18  section 27-3409 of this title meets the criteria  and  objectives  under
    19  such section in making its recommendation.
    20    7. The advisory council shall, within ninety days of the submission of
    21  a packaging reduction and recycling plan, either:
    22    (a)  forward  the plan to the commissioner with its recommendation for
    23  approval; or
    24    (b) forward the plan to the  commissioner  with  its  disapproval  and
    25  stated  reasons  therefor, including any recommended changes to the plan
    26  necessary for approval.
    27    8. An organization may resubmit a packaging  reduction  and  recycling
    28  plan  for  approval  at  any  time. Upon such resubmission, the advisory
    29  council shall, within ninety days, forward the plan to the  commissioner
    30  with its recommendation for approval or disapproval.
    31    9.  The advisory council shall review the submitted annual reports and
    32  make such recommendations to the department  and  the  organization  for
    33  improving  future administration of the program and compliance with this
    34  title.
    35    10. Thirty months from the date the department adopts rules and  regu-
    36  lations  pursuant  to  this title, and every three years thereafter, the
    37  advisory council shall conduct a review of all relevant data,  including
    38  annual  reports,  the  latest  scientific  data available, any pertinent
    39  statewide waste and reuse data, and any other information deemed  impor-
    40  tant, to make recommendations to the following:
    41    (a)  organizations  for  any changes in administration of the program,
    42  including feedback on the education and outreach program as outlined  in
    43  section 27-3423 of this title;
    44    (b) the department for any necessary changes to regulations, the fund-
    45  ing  mechanism,  reimbursement  and  expenditure  policies or whether it
    46  would be beneficial for there to be additional organizations  implement-
    47  ing the program; and
    48    (c)  the legislature for recommended statutory changes. Such recommen-
    49  dations shall include a recommendation as to whether to modify the defi-
    50  nition of recycling under this title.
    51  § 27-3413. Funding mechanism.
    52    1.  All costs of the program, including  administration,  enforcement,
    53  and all other state costs of the program and organizations' costs of the
    54  program,  including but not limited to those costs described in subdivi-
    55  sion three of this section shall be covered by  producer  payments.  The
    56  department shall promulgate rules and regulations in the manner required

        A. 5322--A                         12

     1  by  section  27-3419  of  this  title  setting forth the manner in which
     2  producer  payments  on  packaging  materials  shall  be  calculated  and
     3  assessed. Payments shall be calculated based on:
     4    (a) The packaging material type;
     5    (b)  The quantity of each packaging material type, by weight, that the
     6  producer sells, offers for sale, or distributes in the state;
     7    (c) Eco-modulation, including as described  in  subdivision  seven  of
     8  this section.
     9    2.  The list of packaging material types for which there is a specific
    10  fee shall include, at a minimum, the following material types:
    11    (a) Paper;
    12    (b) Cardboard;
    13    (c) Corrugated cardboard;
    14    (d) Wood;
    15    (e) Glass;
    16    (f) Polyethylene terephthalate (PET);
    17    (g) High density polyethylene (HDPE);
    18    (h) Expanded polystyrene (EPS);
    19    (i) Polystyrene;
    20    (j) Bio-plastics;
    21    (k) Generic plastics;
    22    (l) Plastic film;
    23    (m) Other plastics;
    24    (n) Steel or ferrous;
    25    (o) Aluminum;
    26    (p) Tinplate;
    27    (q) Generic metals; and
    28    (r) Mixed materials including laminates and packaging containing  more
    29  than one of the above materials.
    30    3.  Packaging  fees  shall be designed to cover, at minimum, the total
    31  costs associated with:
    32    (a) Costs to provide curbside collection or other form of  residential
    33  service  that  is,  at  minimum,  as  convenient  as detailed in section
    34  27-3415 of this title;
    35    (b) The department's and other state agencies' administration of  this
    36  title;
    37    (c) Organizations' administration of this title;
    38    (d)  The cost associated with the development of the needs assessment,
    39  as required in section 27-3421 of this title;
    40    (e) The costs associated with the advisory council and the toxic pack-
    41  aging task force;
    42    (f) The costs associated with  establishing  packaging  reduction  and
    43  reuse infrastructure;
    44    (g) The cost of providing recycling services, including the collection
    45  cost,  processing  cost  for  each recyclable material, cost of handling
    46  non-recyclable material types collected as part of  a  recycling  opera-
    47  tion, transportation cost of recycling for each material type; and
    48    (h) Any other factors determined by the department.
    49    4.  The  department  may  adjust fees to be paid by producers based on
    50  factors that affect system costs. At a minimum, fees shall  be  variable
    51  based on:
    52    (a)  costs  to process packaging materials for acceptance by secondary
    53  material markets;
    54    (b) whether the packaging material would typically be readily-recycla-
    55  ble as determined by the department after consultation with the advisory
    56  council, except that as a consequence of the packaging design, the pack-

        A. 5322--A                         13

     1  aging product has the effect of disrupting recycling  processes  or  the
     2  product  includes labels, inks, and adhesives containing heavy metals or
     3  other toxic substances that would result in contamination of the recycl-
     4  ing process;
     5    (c)  whether  the  packaging  material  is specifically designed to be
     6  reusable or refillable and has high reuse or refill rate;
     7    (d) the commodity value of a packaging material, as determined by  the
     8  department after consultation with the advisory council; and
     9    (e) any other factors determined by the department.
    10    5.  The  fees  shall  be  adjusted, or the producers may be provided a
    11  credit, based upon the percentage  of  post-consumer  recycled  material
    12  content  and  such percentage of post-consumer recycled content shall be
    13  verified by the organization  or  through  an  independent  third  party
    14  approved to perform verification services to ensure that such percentage
    15  exceeds  the minimum requirements in the packaging, as long as the recy-
    16  cled content does not, in the determination of the  department,  disrupt
    17  the potential for future recycling.
    18    6.  In  addition  to  the  annual schedule of fees, the department fee
    19  schedule may include a special  assessment  on  specific  categories  of
    20  packaging  materials at the request of responsible entities representing
    21  and approved by the advisory council if  the  nature  of  the  packaging
    22  material  imposes  unusual costs in collection or processing or requires
    23  special actions to address effective access to recycling  or  successful
    24  processing  in  local  government recycling facilities, as determined by
    25  the department after consultation with the advisory council.
    26    7. The program charges shall be structured to provide  producers  with
    27  financial incentives to encourage:
    28    (a)  A reduction in total packaging as measured by unit weight used by
    29  producers, and discarded by  consumers,  businesses,  institutions,  and
    30  other  users.  Weight  reductions  shall not be achieved by substituting
    31  plastic for other materials types;
    32    (b) An increase in the proportion of a producer's total packaging that
    33  is managed within a reuse and refill system;
    34    (c) An increase in the proportion of a producer's total packaging that
    35  is deemed recyclable as  determined  by  an  annual  review  process  as
    36  described in section 27-3405 of this title;
    37    (d) An increase in the proportion of a producer's total packaging that
    38  is ultimately recycled;
    39    (e) A reduction in toxic components in packaging materials; and
    40    (f) A reduction in litter from packaging materials.
    41    8.  There  shall  be no fee assessed on packaging that is designed for
    42  reuse and refill and contained within a reuse or refill system.
    43    9. Any funds directly collected pursuant to this title  shall  not  be
    44  used to carry out lobbying activities on behalf of an organization.
    45    10.  No  retailer may charge a point-of-sale or other fee to consumers
    46  to facilitate a producer to recoup the costs associated with meeting the
    47  obligations under this title.
    48    11. Nothing in this title shall require a local government to  partic-
    49  ipate in the program.
    50    12.  The  department  shall update and revise the fees with input from
    51  the advisory council every three years.
    52  § 27-3415. Collection and convenience.
    53    1. The program shall provide for widespread, convenient, and equitable
    54  access to collection opportunities for recyclable packaging materials at
    55  no additional cost. Such opportunities shall be provided  to  all  resi-

        A. 5322--A                         14

     1  dents  of  the state in a manner that is as convenient as the collection
     2  of municipal solid waste.
     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. All local government or private recycling service  providers  shall
    15  provide  for  the  collection  and  recycling of all packaging materials
    16  contained on the minimum recyclables lists, based on geographic regions,
    17  in order to be eligible for reimbursement;  provided,  however,  nothing
    18  shall  penalize  a  local  government  or  private recycling service for
    19  recovering and recycling materials  that  are  generated  in  the  local
    20  government  or  geographic  region  that are not included on the minimum
    21  recyclables lists as long as it can be demonstrated that such  materials
    22  have  a  consistent  regional  market  for purchase as determined by the
    23  department in consultation with the producer or organization.
    24    4. Reimbursement shall cover reduction,  as  contemplated  by  section
    25  27-3413 of this title, collection, processing, transportation, and recy-
    26  cling  and  disposal  of  all packaging materials so long as the program
    27  includes at least the minimum recyclables list. The department may grant
    28  an exception of the requirements in  this  subdivision  upon  a  written
    29  showing  by  the  local  government  or  private  recycling service that
    30  compliance with the requirements is not practicable for a specific iden-
    31  tified product or material and if the department finds it is in the best
    32  interest of the intent of this title to grant  an  exception;  provided,
    33  however,  that  any  such  exception granted by the department shall not
    34  exceed twelve months.
    35    5. The department shall promulgate rules  and  regulations  to  ensure
    36  that  program  funds shall be used for investment in collection systems,
    37  transportation  systems, reuse systems, washing systems,  redistribution
    38  systems,  technology  for tracking and data collection, capital expendi-
    39  tures on new and emerging technology that is  focused  on  reusable  and
    40  refillable  packaging,  as  well as equipment, and facilities, and other
    41  projects  determined  by   the department to facilitate  the  goals  and
    42  objectives of this title.
    43    6.  Nothing  in  this  title  shall be deemed to automatically void or
    44  nullify any  collection contracts in effect as of the  effectiveness  of
    45  this title.
    46  § 27-3417. Producer responsibilities.
    47    1.  Beginning  thirty months after the effective date of this title, a
    48  producer shall not sell, offer for sale, or distribute into the state  a
    49  product  contained,  protected,  delivered, presented, or distributed in
    50  packaging unless the producer is registered with an organization and  in
    51  full compliance with all requirements of this title.
    52    2.  Either when the producer registers, or within thirty months of the
    53  effective date of this title, whichever is later and annually  thereaft-
    54  er,  each  producer  shall  provide  the organization with the following
    55  information:

        A. 5322--A                         15

     1    (a) Contact information, including the name, electronic  and  physical
     2  address,  and  telephone  number of the authorized representative of the
     3  producer;
     4    (b)  A comprehensive list of the types and brands of packaging materi-
     5  als for which the producer or producers are responsible for;
     6    (c) The total amount, in units and weight, of each type  of  packaging
     7  material  sold, offered for sale, or distributed for sale into the state
     8  by the producer in the prior calendar year; and
     9    (d) Any other information required by the department.
    10    3. Producers are responsible for payment of fees, through an organiza-
    11  tion, based on the quantity, type of packaging used in  the  state,  and
    12  other factors.
    13    4. Producers are responsible for meeting the toxic substances, packag-
    14  ing reduction, post-consumer content, and recycling standards under this
    15  title.
    16    5.  A  producer  shall  electronically  submit  annually,  to both the
    17  department and the packaging reduction  and  recycling  organization,  a
    18  written declaration signed by its chief executive officer, verifying the
    19  producer's compliance with:
    20    (a) The packaging material reduction requirements of this title;
    21    (b)  The  packaging  material  recycled  content  requirements of this
    22  title;
    23    (c) The packaging material recycling requirements of this title;
    24    (d) The toxic substance reduction requirements of this title; and
    25    (e) Any reimbursement obligations they have to  local  governments  or
    26  third party service providers in connection with this title.
    27    6. A producer is exempt from the requirements and prohibitions of this
    28  title in a calendar year in which:
    29    (a) The producer realized less than one million dollars in total gross
    30  revenue during the prior calendar year; or
    31    (b)  The  producer  sold,  offered  for  sale, or distributed for sale
    32  products contained, protected, delivered, presented, or  distributed  in
    33  or  using  less  than  one ton of packaging material in total during the
    34  prior calendar year.
    35    7. A producer claiming an exemption pursuant  to  subdivision  six  of
    36  this section shall provide the department with sufficient information to
    37  demonstrate that the claimant is eligible for an exemption.
    38  § 27-3419. Department responsibilities.
    39    1.  Within  eighteen  months  of the effective date of this title, the
    40  department shall, in accordance with  section  27-3437  of  this  title,
    41  promulgate all rules and regulations necessary to implement, administer,
    42  and  enforce  the  provisions of this title, including setting standards
    43  for consumer protection when the organization directly  disburses  funds
    44  to  third parties. These rules and regulations shall include prohibiting
    45  certain packaging toxins pursuant to section 27-3425 of this  title  and
    46  setting  recommended  producers'  program  fees,  after  consulting with
    47  multiple stakeholders, including local governments,  businesses,  insti-
    48  tutions,  and  other  extended producer responsibility programs. Program
    49  fees shall be set as required by section 27-3413 of this title.
    50    2. The department shall revise recommended program  fees  every  three
    51  years,  beginning  three  years  after  the first set of program fees is
    52  established, to reflect new data received about material use and manage-
    53  ment, or whenever the targets set in this title are not  met,  to  drive
    54  compliance with such targets.

        A. 5322--A                         16

     1    3.  Beginning  two  years  after the effective date of this title, and
     2  annually thereafter, the department shall work  with  each  organization
     3  to:
     4    (a)  Calculate  the  amount of packaging that was generated during the
     5  prior calendar year;
     6    (b) Calculate the recycling rate for all packaging  during  the  prior
     7  calendar year;
     8    (c)  Calculate  the  recycling  rate  for each packaging material type
     9  during the prior calendar year;
    10    (d) Develop a list of producers  reasonably  believed  to  be  out  of
    11  compliance with the requirements of this title; and
    12    (e)  Utilize  this information with input from the advisory council to
    13  produce an annual report to be shared with the  legislature  and  posted
    14  publicly on the department's website.
    15    4.  In  the event that the department determines that the organization
    16  no longer meets the requirements of this title, or  fails  to  implement
    17  and  administer the requirements of this title in a manner that effectu-
    18  ates the purposes of this title, after reasonable  opportunity  to  cure
    19  such  deficiencies,  the  department  shall  revoke its approval of such
    20  organization and shall either select  a  new  organization  pursuant  to
    21  section 27-3403 of this title or elect to operate the program itself.
    22  § 27-3421. Statewide  packaging  reduction,  reuse,  and recycling needs
    23               assessment.
    24    1. No later than one year after the effective date of this  title  and
    25  every  five  years thereafter, the department shall complete or cause to
    26  be completed a statewide packaging reduction, reuse, and recycling needs
    27  assessment to determine the current state of packaging reuse, recycling,
    28  and disposal, and identify barriers  and  opportunities  to  reduce  the
    29  amount  of  packaging discarded and disposed of, and increase the reusa-
    30  bility and recyclability of packaging.
    31    2. The needs assessment, at a minimum, shall cover the following:
    32    (a) The current recycling rate for each  type  of  packaging  material
    33  material;
    34    (b)  The  amount,  by  weight and material type, of packaging material
    35  recycled at each recycling facility  that  accepts  discarded  packaging
    36  generated in the state;
    37    (c)  The  processing capacity, market conditions, and opportunities in
    38  the state and regionally for recyclable materials generally, and packag-
    39  ing material categories specifically;
    40    (d) The net cost of  end-of-life  management  of  discarded  packaging
    41  material   in   the  state,  including  the  cost  associated  with  the
    42  collection, transportation, sortation, recycling,  littering,  landfill-
    43  ing, or incineration of discarded packaging;
    44    (e)  The  availability  of  opportunities  in  the recycling and reuse
    45  system for minority- and women-owned businesses;
    46    (f) Current barriers affecting recycling access  and  availability  in
    47  the state;
    48    (g)  Current  barriers  to  the  marketability of recyclable materials
    49  generated in the state;
    50    (h) Opportunities for the creation of  packaging  material  reuse  and
    51  refill programs in the state;
    52    (i)  Opportunities for the improvement of packaging material recycling
    53  in the state, including the development  of  end  markets  for  recycled
    54  packaging materials.
    55    (j)  Current  barriers  affecting  the  creation and implementation of
    56  packaging material reuse and refill programs;

        A. 5322--A                         17

     1    (k) Consumer education needs in the state with  respect  to  packaging
     2  material waste reduction, recycling, and reducing contamination in recy-
     3  cling, and reuse and refill systems for packaging material; and
     4    (l) Landfill capacity.
     5    3.  The cost incurred by the department associated with conducting the
     6  needs assessment shall be paid for by the organization.
     7    4. The department shall report the results of the needs assessment  to
     8  the  public, the state legislature, and the governor, and shall post the
     9  results on its website.
    10  § 27-3423. Education and outreach program.
    11    1.  The  organization  shall  develop  and  implement  an  educational
    12  outreach  program  designed  to educate the public about waste reduction
    13  and improve the effectiveness of local government recycling  and,  at  a
    14  minimum, include:
    15    (a)  Educational  and informational materials for consumers related to
    16  reducing the amount of packaging discarded, recycled, and disposed of in
    17  the state;
    18    (b) A description of the environmental, social, economic, and environ-
    19  mental justice impacts associated with improper  disposal  of  packaging
    20  material and failure to reuse or recycle packaging materials;
    21    (c)  Information  on  the  proper  end-of-life management of packaging
    22  material, including reuse, recycling, composting, and disposal;
    23    (d) The location and availability of  curbside  collection  and  addi-
    24  tional drop-off collection opportunities for packaging material, includ-
    25  ing deposit and take-back programs;
    26    (e)  How  to  prevent  litter  of packaging material in the process of
    27  collection;
    28    (f) Recycling instructions that are consistent  statewide,  except  as
    29  necessary to take into account differences among local laws and process-
    30  ing capabilities, easy to understand, and easily accessible; and
    31    (g) Any other information required by the department.
    32    2.  The  educational outreach program shall incorporate, at a minimum,
    33  electronic, print, web-based and social media  elements,  including  for
    34  use  by  local  governments  at their discretion, as well as including a
    35  variety of outreach  and  education  tools.  Such  educational  outreach
    36  programs  shall  ensure materials are widely accessible and available in
    37  multiple languages.
    38    3. The educational outreach program  shall  be  coordinated  with  and
    39  assist  local government programs, local government contracted programs,
    40  solid waste collection companies, and other entities providing services.
    41    4. The educational outreach program shall be developed to ensure envi-
    42  ronmental justice communities receive targeted outreach and support.
    43    5. The educational outreach program shall include a plan to work  with
    44  producers  to  label  or  mark  packaging  material,  in accordance with
    45  reasonable labeling standards, with information to assist  consumers  in
    46  responsibly managing and recycling covered products.
    47    6. The organization shall consult with local governments on the devel-
    48  opment  of  educational  materials and may coordinate with local govern-
    49  ments on outreach and communication.
    50    7. The organization shall  be  authorized  to  provide  producers  and
    51  retailers   with   educational  materials  related  to  the  responsible
    52  reduction, reuse, recycling, or disposal of discarded packaging  materi-
    53  al. The educational and informational materials provided to the retailer
    54  under  this subdivision may include, but need not be limited to, printed
    55  materials, signage, templates of materials that  can  be  reproduced  by
    56  retailers  and  provided thereby to consumers at the time of a product's

        A. 5322--A                         18

     1  purchase, and advertising materials that promote and encourage consumers
     2  to properly reuse, recycle, or dispose of packaging material.
     3  § 27-3425. Prohibition on certain toxic substances and materials.
     4    1. Beginning two years after the promulgation of rules and regulations
     5  pursuant  to this title, no person or entity shall sell, offer for sale,
     6  or distribute into the state any packaging containing any of the follow-
     7  ing toxic substances:
     8    (a) Ortho-phthalates;
     9    (b) Bisphenols;
    10    (c) Per- and polyfluoroalkyl substances (PFAS);
    11    (d) Heavy metals and compounds, including lead,  hexavalent  chromium,
    12  cadmium, and mercury;
    13    (e) Benzophenone and its derivatives;
    14    (f) Halogenated flame retardants;
    15    (g) Perchlorate;
    16    (h) Formaldehyde;
    17    (i) Toluene;
    18    (j) Antimony and compounds;
    19    (k) Carbon black;
    20    (l) UV 328 (2-(2H-benzotriazol-2-yl)-4,6-di-tert-pentylphenol);
    21    (m) Polyvinyl chloride, including polyvinylidene chloride;
    22    (n) Polystyrene; or
    23    (o) Polycarbonate.
    24    2.(a)  There is hereby established within the department a toxic pack-
    25  aging task force to review the toxicity in packaging in the  state,  and
    26  to  recommend  to  the  department  the  designation of additional toxic
    27  substances which shall be subject  to  the  same  prohibition  as  those
    28  substances listed in subdivision one of this section.
    29    (b)  The  toxic  packaging task force shall have seven members, one of
    30  whom shall be the commissioner or their designee who shall be chair, and
    31  one of whom shall be the commissioner of health or their  designee.  The
    32  other  members  shall  include:    (i) a representative of the packaging
    33  industry; (ii) a representative of an  environmental  justice  organiza-
    34  tion; and (iii) a representative from the chemical industry; all of whom
    35  shall  be  appointed by the commissioner. The remaining members shall be
    36  persons with significant professional or academic  expertise  in  public
    37  health  and  toxicology, one of whom shall be appointed by the temporary
    38  president of the senate and one of whom shall be appointed by the speak-
    39  er of the assembly.  Appointments to the toxic packaging task force  are
    40  term limited to five consecutive years of service.
    41    (c)  The  task  force shall meet at least twice per year to review and
    42  recommend  to  the  department  whether  there  are   additional   toxic
    43  substances or classes of toxic substances that should no longer be sold,
    44  offered  for sale, distributed for sale, or distributed for use in pack-
    45  aging in this state.
    46    3. Within one hundred eighty days of the toxic  packaging  task  force
    47  recommending  the  designation  of  an  additional  toxic substance, the
    48  department shall adopt rules and regulations to designate such substance
    49  as a toxic substance under this section and prohibit  the  use  of  such
    50  toxic  substance  in  packaging  in  the  same  manner  as  those  toxic
    51  substances listed in subdivision one of this section, with an  effective
    52  date no later than two years after the date of such recommendation.
    53    4.  Any  producer  that  violates  this section, or any rules or regu-
    54  lations promulgated pursuant to this section, shall be subject to a fine
    55  for each violation not to exceed ten thousand dollars per violation. For
    56  the purposes of this section, each product line that  is  sold,  offered

        A. 5322--A                         19

     1  for  sale,  or  distributed  to  consumers,  via retail commerce, in the
     2  state, including through an internet transaction shall be  considered  a
     3  separate violation.
     4  § 27-3427. Non-reusable packaging reduction standards.
     5    1.  Each individual producer is required to meet the following packag-
     6  ing reduction requirements:
     7    (a) Beginning three years after a producer  first  registers  with  an
     8  organization,  such  producer shall reduce the amount of primary plastic
     9  packaging and the amount of non-primary packaging for all materials used
    10  to contain, protect, deliver, present, or distribute the  products  they
    11  sell,  offer  for  sale,  or  distribute for sale into the state, by ten
    12  percent by unit weight.
    13    (b) Beginning five years after a  producer  first  registers  with  an
    14  organization,  such  producer shall reduce the amount of primary plastic
    15  packaging and the amount of non-primary packaging for all materials used
    16  to contain, protect, deliver, present, or distribute the  products  they
    17  sell,  offer  for sale, or distribute for sale into the state, by twenty
    18  percent by unit weight.
    19    (c) Beginning eight years after a producer  first  registers  with  an
    20  organization,  such  producer shall reduce the amount of primary plastic
    21  packaging and the amount of non-primary packaging for all materials used
    22  to contain, protect, deliver, present, or distribute the  products  they
    23  sell,  offer  for sale, or distribute for sale into the state, by thirty
    24  percent by unit weight.
    25    (d) Beginning ten years after  a  producer  first  registers  with  an
    26  organization,  such  producer shall reduce the amount of primary plastic
    27  packaging and the amount of non-primary packaging for all materials used
    28  to contain, protect, deliver, present, or distribute the  products  they
    29  sell,  offer  for  sale, or distribute for sale into the state, by forty
    30  percent by unit weight.
    31    (e) Beginning twelve years after a producer first  registers  with  an
    32  organization,  such  producer shall reduce the amount of primary plastic
    33  packaging and the amount of non-primary packaging for all materials used
    34  to contain, protect, deliver, present, or distribute the  products  they
    35  sell,  offer  for  sale, or distribute for sale into the state, by fifty
    36  percent by unit weight.
    37    2. The reductions required by this section shall be  measured  against
    38  the  total  amount  of  packaging the producer used to contain, protect,
    39  deliver, present, or distribute the  products  they  sold,  offered  for
    40  sale,  or  distributed  for  sale,  during  the first year such producer
    41  registered with the packaging reduction organization.
    42    3. These reductions shall be achieved by eliminating single-use  pack-
    43  aging, including secondary or tertiary packaging, elimination of packag-
    44  ing  components,  reduction of packaging components, or by transitioning
    45  to reusable or refillable packaging systems.
    46    4. The reductions required by this section shall not  be  achieved  by
    47  substituting  non-plastic materials with plastic materials or substitut-
    48  ing recyclable materials with non-recyclable materials.
    49    5. In the case of a producer for which, as of the  effective  date  of
    50  this  title  or  upon entry into the market after such effective date, a
    51  portion of its packaging is reusable and contained within  a  reuse  and
    52  refill  system,  such  producer may apply to the department for a waiver
    53  from the packaging reduction requirements set forth in  subdivision  one
    54  of  this  section  with  respect to that percentage of its packaging, by
    55  unit weight, which is contained within a reuse and refill system.

        A. 5322--A                         20

     1    6. In the case of a producer that demonstrates in a  manner  satisfac-
     2  tory  to  the department that, for the period beginning five years prior
     3  to the effective date of this title and ending on the date which is  two
     4  years  after  the effective date of this title, the producer reduced the
     5  amount  of  packaging  used  to  contain,  protect, deliver, present, or
     6  distribute the products the producer sells, offers for sale, or distrib-
     7  utes for sale into the state, such  producer may apply to the department
     8  for a waiver from the packaging reduction requirements of  this  section
     9  with  respect to that percentage of its packaging, by unit weight, which
    10  was reduced during such five-year period.
    11    7. A producer may apply to  the  department  for  a  waiver  from  the
    12  reduction  requirements  of this section if compliance is impossible due
    13  to federal law. Such waiver must be  applied  for  annually.    In  such
    14  application  the  producer shall provide the department and the advisory
    15  council with sufficient information, in the determination of the depart-
    16  ment in consultation with the advisory council, to make a  determination
    17  on  such  application,  including  proof that the producer has taken all
    18  feasible actions to achieve the reductions required by this section.
    19    8. Nothing in this section shall preclude a producer from going beyond
    20  the reduction standards in subdivision one of this section.
    21  § 27-3429. Recycled content standards.
    22    1. Each individual producer shall meet the recycling  content  targets
    23  contained in this section.
    24    2. Beginning two years after the effective date of this section:
    25    (a) all glass containers manufactured in the state used by the produc-
    26  er shall contain, on average, at least thirty-five percent post-consumer
    27  recycled content;
    28    (b) all paper carryout bags sold, offered for sale, or given away free
    29  in  the  state  by  a producer shall contain, on average, at least forty
    30  percent post-consumer recycled content; except that a paper carryout bag
    31  that holds eight pounds or less shall only be required  to  contain,  on
    32  average, at least twenty percent post-consumer recycled content; and
    33    (c)  all plastic trash bags sold or offered for sale in the state by a
    34  producer shall contain, on average, at least twenty percent post-consum-
    35  er recycled content.
    36    3. The requirements of this section shall not  apply  to  reusable  or
    37  refillable packaging or containers.
    38    4.  Beginning  two  years  after  plan  implementation  begins for the
    39  initial organization, the department is authorized, in consultation with
    40  the advisory council, to:
    41    (a) establish content requirements for materials not listed in  subdi-
    42  vision two of this section; and
    43    (b)  modify the post-consumer recycled content targets for the materi-
    44  als set forth in subdivision two of this section, provided that  modifi-
    45  cations  do not result in a lesser percentage or an earlier year for the
    46  respective target.
    47  § 27-3431. Recyclability criteria and packaging recycling requirements.
    48    1. Beginning two years after the effective date of this section, pack-
    49  aging materials used by a producer shall meet the following recyclabili-
    50  ty criteria:
    51    (a) be capable of being sorted by  entities  that  process  recyclable
    52  material generated in the state;
    53    (b) has a consistent regional market for purchase, by end users in the
    54  production of new products;
    55    (c) does not contain the following:

        A. 5322--A                         21

     1    (i)  non-detectable  pigments,  including  but  not  limited to carbon
     2  black;
     3    (ii)  the  toxic  substances  set  forth in subdivision one of section
     4  27-3425 of this title and those designated by the toxic  packaging  task
     5  force pursuant to subdivision two of section 27-3425 of this title;
     6    (iii) opaque or pigmented polyethylene terephthalate;
     7    (iv) oxo-degradable additives, including oxo-biodegradable additives;
     8    (v) polyethylene terephthalate glycol in rigid packaging;
     9    (vi)  label  constructions,  including  adhesives, inks, materials and
    10  formats, or features that render a package non-recyclable or  disruptive
    11  to  the  recycling process, as determined by the department in consulta-
    12  tion with the advisory council; and
    13    (vii) DoPS - polystyrene, including EPS (expanded polystyrene);
    14    (d) meets the post-consumer content requirements of this title; and
    15    (e) any other criteria determined by the department.
    16    2. The department shall maintain a list of packing material that  meet
    17  these  criteria  and  are  deemed to be recyclable. The department shall
    18  update this list annually.
    19    3. Each individual producer shall be required to  meet  the  following
    20  recycling rate standards:
    21    (a) With respect to the producer's non-plastic packaging:
    22    (i)  Beginning  January first, two thousand twenty-eight, a minimum of
    23  thirty-five percent of packaging material reported by the producer or an
    24  organization as supplied into the state shall  be  reused  or  recycled,
    25  with a minimum of five percent being reused;
    26    (ii)  Beginning  January first, two thousand thirty-five, a minimum of
    27  fifty percent of packaging material  reported  by  the  producer  or  an
    28  organization  as  supplied  into  the state shall be reused or recycled,
    29  with a minimum of ten percent being reused; and
    30    (iii) Beginning January first, two thousand fifty, a minimum of seven-
    31  ty-five percent of packaging material reported by  the  producer  or  an
    32  organization  as  supplied  into  the state shall be reused or recycled,
    33  with a minimum of twenty percent being reused.
    34    (b) With respect to plastic packaging:
    35    (i) Beginning January first, two thousand twenty-eight, a  minimum  of
    36  twenty-five  percent  of  plastic  packaging  material  reported  by the
    37  producer or an organization as supplied into the state shall  be  reused
    38  or recycled;
    39    (ii)  Beginning  January first, two thousand thirty-five, a minimum of
    40  fifty percent of plastic packaging material reported by the producer  or
    41  an  organization as supplied into the state shall be reused or recycled;
    42  and
    43    (iii) Beginning January first, two thousand fifty, a minimum of seven-
    44  ty-five percent of plastic packaging material reported by  the  producer
    45  or  an  organization as supplied into the state shall be reused or recy-
    46  cled.
    47    4. The department may adjust the recycling rates in subdivision  three
    48  of  this section by rulemaking based on information gathered through the
    49  needs assessment or provided in producer plans and reports, or based  on
    50  consideration  of  environmental,  technical and economic conditions. An
    51  adjustment to the statewide recycling and reuse performance targets  may
    52  not adjust the recycling rate target to less than thirty-five percent or
    53  more than seventy-five percent.
    54    5.  A  producer  may  apply  to  the  department for a waiver from the
    55  reduction requirements of this section if compliance is  impossible  due
    56  to  federal  law.  Such  waiver  shall  be applied for annually. In such

        A. 5322--A                         22

     1  application the producer shall provide the department and  the  advisory
     2  council with sufficient information, in the determination of the depart-
     3  ment  in consultation with the advisory council, to make a determination
     4  on  such  application,  including  proof that the producer has taken all
     5  feasible actions to achieve the reductions required by this section.
     6    6. The requirements of subdivision three of  this  section  shall  not
     7  apply to reusable or refillable packaging or containers.
     8  § 27-3433. Establishment of the office of recycling inspector general.
     9    1. The commissioner shall establish an independent office of recycling
    10  inspector general within the department. The recycling inspector general
    11  shall  evaluate the programs created pursuant to this title on an annual
    12  basis and shall ensure such programs are functioning properly, and  that
    13  all producers are in compliance with the requirements of this title.
    14    2.  The recycling inspector general shall have the authority to inves-
    15  tigate the  compliance  of  producers  and  the  organization  with  all
    16  provisions of this title and to bring enforcement actions for violations
    17  of  this  title  pursuant  to  the provisions of section 27-3435 of this
    18  title.
    19  § 27-3435. Penalties and enforcement.
    20    1. Failure to comply with the requirements of this title shall subject
    21  the organization or an individual producer to penalties for  violations.
    22  The  department,  recycling  inspector general, or attorney general, may
    23  conduct investigations, including inspecting operations, facilities, and
    24  records of producers and organizations, and performing audits of produc-
    25  ers and organizations, to determine whether such producers and organiza-
    26  tions are complying with the requirements of this title.
    27    2. The department, the recycling inspector general,  or  the  attorney
    28  general,  shall  notify  an  organization  or producer of any conduct or
    29  practice that does not comply with the requirements of this title and of
    30  any inconsistencies identified in an audit.
    31    3. The department, the recycling inspector general, and  the  attorney
    32  general,  may  issue a notice of violation to, and impose an administra-
    33  tive civil penalty not to  exceed  one  thousand  dollars  per  day  per
    34  violation  on any entity not in compliance with this title or any of the
    35  regulations the department adopts  to  implement  this  title.  For  the
    36  purposes  of  this  section, each product line that is sold, offered for
    37  sale, or distributed to consumers via  retail  commerce  in  the  state,
    38  including  through  an internet transaction, shall be considered a sepa-
    39  rate violation.
    40    4. Civil penalties under this section shall be assessed by the depart-
    41  ment after an opportunity to be heard  pursuant  to  the  provisions  of
    42  section  71-1709  of  this  chapter,  or  by  the court in any action or
    43  proceeding pursuant to section 71-2727 of this chapter, and in  addition
    44  thereto,  such  person or entity may by similar process be enjoined from
    45  continuing such violation and any permit, registration or other approval
    46  issued by the department may  be  revoked  or  suspended  or  a  pending
    47  renewal denied.
    48  § 27-3437. Rules and regulations.
    49    1.  Within  eighteen  months after the effective date of this section,
    50  the department shall promulgate all rules and regulations  necessary  to
    51  implement, administer, and enforce the provisions of this title.
    52    2. When promulgating rules pursuant to the provisions of this section,
    53  the  department shall solicit input from the public of any draft rule or
    54  regulation to implement this section, including at a minimum  a  ninety-
    55  day comment period and one public hearing on such draft rules.
    56  § 27-3439. State preemption.

        A. 5322--A                         23

     1    Jurisdiction in all matters pertaining to costs and funding mechanisms
     2  of  packaging  reduction  and  recycling  organizations  relating to the
     3  recovery of packaging materials shall, by this title, be  vested  exclu-
     4  sively in the state; provided, however, that nothing in this title shall
     5  preclude  any  city,  town,  village  or other local planning units from
     6  determining what materials shall be included for recycling  in  a  local
     7  government  recycling  collection  program  or shall preclude any person
     8  from coordinating, for recycling or reuse, the collection  of  packaging
     9  materials and products.
    10  § 27-3441. Other assistance programs.
    11    Nothing  in  this  title shall impact any producer eligibility for any
    12  state or local incentive or assistance program to which they are  other-
    13  wise eligible.
    14  § 27-3443. Severability.
    15    The  provisions  of  this  title shall be severable and if any phrase,
    16  clause, sentence or provision of this title or the applicability thereof
    17  to any person or circumstance shall be held invalid,  the  remainder  of
    18  this title and the application thereof shall not be affected thereby.
    19    §  3.  The  environmental  conservation law is amended by adding a new
    20  section 37-0202 to read as follows:
    21  § 37-0202. Applicability.
    22    This article shall only have effect to the extent  that  the  prohibi-
    23  tions  in  this title are not otherwise substantially given effect or in
    24  conflict with the provisions of title thirty-four of article twenty-sev-
    25  en of this chapter.
    26    § 4. This act shall take effect immediately.
feedback