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--C

                               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, SILLIT-
          TI,  AUBRY,  RAMOS,  WEPRIN,  ZINERMAN,  MAMDANI,  GUNTHER,  MITAYNES,
          BICHOTTE HERMELYN, LEE, BARRETT, JACOBSON, STERN, ROZIC, McMAHON, KIM,
          TAYLOR,  CLARK,  BURGOS, SAYEGH, SOLAGES, WALLACE, BENEDETTO, JACKSON,
          PRETLOW, MEEKS, CONRAD, McDONALD, DAVILA, WILLIAMS,  BORES,  K. BROWN,
          JEAN-PIERRE, BRONSON, LUCAS -- read once and referred to the Committee
          on  Environmental  Conservation -- committee discharged, bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          recommitted  to the Committee on Environmental Conservation in accord-
          ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- reported and referred to the Committee on Codes -- reported and
          referred to the Committee on Ways and Means -- reported  and  referred
          to the Committee on Rules -- Rules Committee discharged, bill amended,
          ordered reprinted as amended and recommitted to the Committee on Rules

        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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08868-17-4

        A. 5322--C                          2

     1          27-3403. Selection  of  packaging reduction and recycling organ-
     2                    izations.
     3          27-3405. Responsibilities  of  packaging reduction and recycling
     4                    organizations.
     5          27-3407. Packaging reduction and recycling organization plan.
     6          27-3409. Packaging reduction and recycling plan approval.
     7          27-3411. Packaging reduction and recycling advisory council.
     8          27-3413. Funding mechanism.
     9          27-3415. Collection and convenience.
    10          27-3417. Producer responsibilities.
    11          27-3419. Department responsibilities.
    12          27-3421. Statewide packaging  reduction,  reuse,  and  recycling
    13                    needs assessment.
    14          27-3423. Education and outreach program.
    15          27-3425. Prohibition on certain toxic substances and materials.
    16          27-3427. Non-reusable packaging reduction standards.
    17          27-3429. Recycled content standards.
    18          27-3431. Recyclability criteria and packaging recycling require-
    19                    ments.
    20          27-3433. Establishment  of  the  office  of  recycling inspector
    21                    general.
    22          27-3435. Penalties and enforcement.
    23          27-3437. Rules and regulations.
    24          27-3439. State preemption.
    25          27-3441. Other assistance programs.
    26          27-3443. Antitrust protections.
    27          27-3445. Severability.
    28  § 27-3401. Definitions.
    29    As used in this title:
    30    1. "Advisory council" or "council" means the packaging  reduction  and
    31  recycling  advisory  council  established  under section 27-3411 of this
    32  title.
    33    2. "Affiliate" means a person who directly, or indirectly through  one
    34  or  more  intermediaries, controls, is controlled by, or is under common
    35  control with a producer.
    36    3. "Beverage container" shall have the same meaning as is set forth in
    37  subdivision two of section 27-1003 of this article.
    38    4. "Brand" means any mark, word,  name,  symbol,  design,  device,  or
    39  graphical  element  or  a combination thereof, including a registered or
    40  unregistered trademark, that identifies and distinguishes a product from
    41  other products.
    42    5. "Contamination" means:
    43    (a) the presence of materials in a  given  collected  material  stream
    44  that  are  not on the minimum recyclables list maintained by the depart-
    45  ment; or
    46    (b) the presence of materials in a given recycled  material  delivered
    47  as  a  feedstock  or  commodity  that are not specified or accepted as a
    48  component of the feedstock or commodity.
    49    6.  "Control", including the terms "controlling", "controlled by"  and
    50  "under common control with", means the possession, directly or indirect-
    51  ly,  of the power to direct or cause the direction of (a) the management
    52  and policies of a person, (b) the operation of a person, or (c) substan-
    53  tially  all  of the assets of a person, whether through the ownership of
    54  voting securities, by contract,  or  otherwise.
    55    7. "Discarded", "discards", "generated" or "generation" means  packag-
    56  ing material that has been used for its intended purpose and is no long-

        A. 5322--C                          3

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

        A. 5322--C                          4

     1    (d) Packaging used to contain hazardous or  flammable  products  regu-
     2  lated  by the 2012 federal Occupational Safety and Health Administration
     3  Hazard Communications Standard, 29 C.F.R. 1910.1200;
     4    (e)  Plastic  packaging  containers  used to contain and ship products
     5  that are classified for transportation as dangerous goods  or  hazardous
     6  materials under 40 C.F.R. 178;
     7    (f)  Beverage  containers  subject  to  a returnable container deposit
     8  under title ten of this article;
     9    (g) Infant formula as defined in section 321(z) of  title  21  of  the
    10  United States code of federal regulations;
    11    (h) Medical foods as defined in section 360ee(b)(3) of title 21 of the
    12  United States code of federal regulations; and
    13    (i)  Architectural  paint containers collected and managed pursuant to
    14  title twenty of this article.
    15    15. "Packaging reduction and recycling organization" or "organization"
    16  means a not-for-profit organization registered  pursuant  to  26  U.S.C.
    17  501(c)(3)  designated by the department for the initial organization, or
    18  by a group of producers for subsequent organizations, to act as an agent
    19  on behalf  of  each  producer  to  develop  and  implement  a  packaging
    20  reduction  and  recycling plan pursuant to section 27-3407 of this title
    21  and  comply  with  the  organization's  responsibilities  under  section
    22  27-3405 of this title.
    23    16.  "Packaging  reduction and recycling plan" or "plan" means a docu-
    24  ment in which an organization describes the efforts it will undertake to
    25  comply with the requirements of this title.
    26    17. "Packaging reduction and recycling program" or "program" means the
    27  program implemented by an organization, and overseen by the  department,
    28  to comply with and implement the provisions of this title.
    29    18.  "Post-consumer  recycled  material"  means  new material produced
    30  using material resulting from recycling.
    31    19. "Primary packaging" means the packaging in direct contact with the
    32  product itself, also sometimes referred to as a consumer unit.
    33    20. "Producer" means the following entities, other than local  govern-
    34  ments, state governments and the federal government, for compliance with
    35  the  requirements  for  packaging  materials  sold, offered for sale, or
    36  distributed to consumers in or into this state:
    37    (a) For products sold or served to  consumers  at  a  physical  retail
    38  location in this state which are not single use plastics:
    39    (i)  If  the  product is sold or served in or with packaging under the
    40  product manufacturer's own brand or is sold or served in packaging mate-
    41  rials that lack identification of a brand, the producer  is  the  person
    42  who manufactures the packaged product;
    43    (ii) If there is no person to which subparagraph (i) of this paragraph
    44  applies,  the  producer is the person who is licensed to manufacture and
    45  sell or serve the packaged product  under  the  brand  or  trademark  of
    46  another  manufacturer  or person, whether or not the trademark is regis-
    47  tered in this state, unless the manufacturer of the packaging  materials
    48  has agreed to accept responsibility;
    49    (iii)  If there is no person to which subparagraph (i) or (ii) of this
    50  paragraph applies, the producer is the brand owner of the  product  that
    51  is packaged;
    52    (iv)  If  there  is  no  person described in subparagraph (i), (ii) or
    53  (iii) of this paragraph within the United States, the  producer  is  the
    54  person  who  is the importer of record for the packaged product into the
    55  United States for use in a commercial enterprise that sells, offers  for
    56  sale, or distributes the product in this state; or

        A. 5322--C                          5

     1    (v)  If  there  is no person to which subparagraph (i), (ii), (iii) or
     2  (iv) of this paragraph applies, the producer is  the  person  who  first
     3  distributes the packaged product in or into the state.
     4    (b)  For  single  use plastics and for products sold or distributed to
     5  consumers in packaging materials in or into this state via  remote  sale
     6  or distribution:
     7    (i)  The  producer  of packaging materials used to directly protect or
     8  contain the product is the same as the producer defined in paragraph (a)
     9  of this subdivision.
    10    (ii) For packaging materials used to ship the product to  a  consumer,
    11  the  producer  is  the person who packages the item to be shipped to the
    12  consumer.
    13    (c) For any single use plastic product:
    14    (i) If the single use plastic product is sold under the manufacturer's
    15  own brand, the producer is the person who manufactures  the  single  use
    16  plastic product;
    17    (ii) If there is no person to which subparagraph (i) of this paragraph
    18  applies,  the  producer  is the person who is the owner or licensee of a
    19  brand or trademark under which the single use plastic product is used in
    20  a commercial enterprise, sold, offered for sale, or  distributed  in  or
    21  into  this  state,  whether  or  not the trademark is registered in this
    22  state;
    23    (iii) If there is no person to which subparagraph (i) or (ii) of  this
    24  paragraph  applies,  the  producer  is the brand owner of the single use
    25  plastic product;
    26    (iv) If there is no person described in  subparagraph  (i),  (ii),  or
    27  (iii)  of  this  paragraph within the United States, the producer is the
    28  person who imports the single use plastic product into the United States
    29  for use in a commercial enterprise  that  sells,  offers  for  sale,  or
    30  distributes the single use plastic product in this state; or
    31    (v)  If  there is no person described in subparagraph (i), (ii), (iii)
    32  or (iv) of this paragraph, the producer is the person who first distrib-
    33  utes the single use plastic product in or into this state.
    34    (d) Where the producer pursuant to paragraph (a) or (c) of this subdi-
    35  vision is a business operated wholly or in  part  as  a  franchise,  the
    36  producer is the franchisor, if such franchisor has franchisees that have
    37  a commercial presence in the state.
    38    21.  "Product  line"  means  a  group of related products all marketed
    39  under a single brand that is sold by the same  producer  to  distinguish
    40  products from each other for better usability for customers.
    41    22. "Recyclable" means a packaging material that meets the criteria in
    42  subdivision one of section 27-3431 of this title.
    43    23.  "Recycled"  means  the  use  of  discarded packaging materials or
    44  products in the production of a new product or  packaging  in  place  of
    45  virgin  materials.    "Recycled" material does not include contaminants,
    46  residues, and other process losses  or  use  of  materials  as  landfill
    47  cover.
    48    24. "Recycling" means to separate, dismantle or process the materials,
    49  components    or  commodities  contained  in discards for the purpose of
    50  preparing the materials, components, or commodities for use or reuse  in
    51  new  products  or  components.  "Recycling" does not include: (a) energy
    52  recovery or energy generation by any means, including  but  not  limited
    53  to,  combustion,  incineration,  pyrolysis, gasification, solvolysis, or
    54  waste-to-fuel; (b) any chemical  conversion  process;  or  (c)  landfill
    55  disposal.

        A. 5322--C                          6

     1    25.  "Recycling  rate"  means  the percentage of any given material or
     2  category of material that is ultimately recycled. The recycling rate for
     3  any packaging material shall be calculated as the total weight of  pack-
     4  aging  material  that  is  recycled in a given year divided by the total
     5  weight of packaging material generated in that year.
     6    26.  "Reuse"  means  the  return  of  packaging material back into the
     7  economic stream for use in the same kind of application intended for the
     8  original packaging, without effectuating a change in the original compo-
     9  sition of the package, the identity of the product,  or  the  components
    10  thereof.
    11    27.  "Reuse  and  refill  system" means a program or set of mechanisms
    12  designed to  facilitate  multiple  uses  of  packaging.  Mechanisms  may
    13  include,   but  are  not  limited  to,  deposits,  incentives,  curbside
    14  collection, collection kiosks, refill stations, dishwashing  facilities,
    15  and re-distribution networks.
    16    28.  "Reusable or refillable packaging and containers" means packaging
    17  material and containers that are specifically designed and  manufactured
    18  to  maintain shape and structure, and be materially durable for repeated
    19  sanitizing, washing, and reuse; provided, however, that  such  packaging
    20  and  containers  must  comply with the high reuse and refill rate as set
    21  forth in the plan and approved by the department.
    22    29. "Single use  plastic"  means  single  use  plastic  products  that
    23  frequent  the residential waste stream or are plastic products that have
    24  the effect of disrupting recycling processes, including, but not limited
    25  to, single use plastic items such as straws, utensils, cups, plates, and
    26  plastic bags.
    27    30. "Toxic packaging task force" means the toxic packaging task  force
    28  established by subdivision two of section 27-3425 of this title.
    29    31.  "Toxic  substances" means a chemical or chemical class identified
    30  by a state agency, federal agency, international intergovernmental agen-
    31  cy, accredited research university, or other  scientific  entity  deemed
    32  authoritative  by  the  department  on  the basis of credible scientific
    33  evidence as being one or more of the following:
    34    (a) A chemical or chemical class that is a carcinogen, mutagen, repro-
    35  ductive toxicant, immunotoxin, neurotoxicant, or endocrine disruptor.
    36    (b) A chemical or chemical class that is  persistent  or  bioaccumula-
    37  tive.
    38    (c)  A chemical or chemical class that may harm the normal development
    39  of a fetus or child or cause other developmental toxicity in  humans  or
    40  wildlife.
    41    (d)  A  chemical or chemical class that may harm organs or cause other
    42  systemic toxicity.
    43    (e) A chemical or chemical class that may  have  adverse  air  quality
    44  impacts,  adverse  ecological  impacts, adverse soil quality impacts, or
    45  adverse water quality impacts.
    46    (f) A chemical or chemical class that the  department  has  determined
    47  has equivalent toxicity to the above criteria.
    48    32.  "Unit  weight" means the weight of packaging material per unit of
    49  product sold.
    50  § 27-3403. Selection of packaging reduction and recycling organizations.
    51    1. Until the date which is ten years after the effective date of  this
    52  title,  there shall be only one packaging reduction organization and all
    53  producers shall be required to register with  such  packaging  reduction
    54  organization.
    55    2. Within six months of the effective date of this title, any not-for-
    56  profit seeking to serve as the initial packaging reduction and recycling

        A. 5322--C                          7

     1  organization shall submit an application on a form and format prescribed
     2  by the department.
     3    3.  Consistent with the requirements of this title, within nine months
     4  of the effective date of this title, the department shall select a  not-
     5  for-profit  organization  applicant  to  act  as  the  initial packaging
     6  reduction and recycling organization to operate the packaging  reduction
     7  and  recycling  program,  and such organization shall then register with
     8  the department in the manner prescribed by the department.
     9    4. Regulations promulgated pursuant to  this  title  may  provide  for
    10  additional organizations beginning ten years after the effective date of
    11  this  title  if,  after ten years and the recommendation by the advisory
    12  council pursuant to subdivision ten of section 27-3411  of  this  title,
    13  the  department  determines  that it would be beneficial for there to be
    14  additional organizations  implementing  the  program,  such  regulations
    15  shall ensure:
    16    (a) consistency and  coordination between all organizations;
    17    (b) responsibilities carried out are consistent and seamless;
    18    (c) local governments and service providers are reimbursed for recycl-
    19  ing services as required under this chapter; and
    20    (d)  that  packaging  material requirements are not reported as gener-
    21  ated, supplied or managed by more than one organization.
    22  § 27-3405. Responsibilities of packaging reduction and recycling  organ-
    23               izations.
    24    1. Producers shall register with a packaging reduction organization to
    25  meet  the  responsibilities of the program pursuant to the provisions of
    26  this section, and each organization shall be responsible for implementa-
    27  tion of the program on behalf of producers registered with  such  organ-
    28  ization.
    29    2.    Each  organization involved in the administration of the program
    30  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)  Calculate  reimbursement  rates  through  the  objective  formula
    38  approved  by the department as contemplated by paragraph (e) of subdivi-
    39  sion five of section 27-3407 of this  title  for  the  costs  associated
    40  with  this  title, the implementation   of  reduction, refill, and reuse
    41  programs, and the collection, transportation  and  recycling,  or  other
    42  processing of packaging materials;
    43    (d)  Collect fees due from producers as required by section 27-3413 of
    44  this title;
    45    (e) Reimburse the department and any other relevant state agencies for
    46  the costs associated with  conducting  the  statewide  needs  assessment
    47  required  by  section  27-3421  of this title, the administration of the
    48  program by the department, and the expenses of the advisory council  and
    49  the toxic packaging task force;
    50    (f) Distribute funds to reimburse local governments and private compa-
    51  nies for the costs associated with this title, including the implementa-
    52  tion  of  reduction,  refill,  and  reuse  programs, and the collection,
    53  transportation and recycling, disposal or other processing of  packaging
    54  materials;
    55    (g)  Undertake  an  effective  statewide education and public outreach
    56  program as required by section 27-3423 of this title;

        A. 5322--C                          8

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

        A. 5322--C                          9

     1    (l) A description of the reimbursements  and  expenditures,  including
     2  the  timeliness of such reimbursements, made pursuant to section 27-3413
     3  of this title;
     4    (m) A recommended minimum recyclables list that meets the requirements
     5  of  subdivision one of section 27-3431 of this title, based on the needs
     6  assessment, information gathered from end markets,  including  commodity
     7  brokers  and  manufacturers who purchase post-consumer materials for use
     8  in manufacturing new products, and available collection  and  processing
     9  infrastructure information;
    10    (n) Audited financial statements;
    11    (o)  The  results of the review conducted pursuant to subdivision five
    12  of this section; and
    13    (p) Any additional information required by the department.
    14    4. Each organization shall conduct an annual review process to  deter-
    15  mine  whether  packaging  materials are recyclable. This review shall be
    16  conducted in consultation with representatives of end markets, including
    17  recycled commodities brokers and manufacturers who purchase post-consum-
    18  er material for use in manufacturing new products, and  in  consultation
    19  with  local  governments.  For  the  purposes  of  calculating  producer
    20  payments and local government reimbursements  in  accordance  with  this
    21  title,  this  annual process shall include a transitional period between
    22  the date the determination is  finalized  and  the  date  it  goes  into
    23  effect.
    24    5. Each organization shall conduct public outreach and provide consum-
    25  ers with educational and informational materials related to reducing the
    26  amount of packaging discarded, recycled, and disposed of in the state as
    27  outlined in section 27-3423 of this title.
    28    6.  Each  organization  shall  operate  a  program  that  provides for
    29  collection convenience as described in section 27-3415 of this title.
    30    7. An organization shall not share, except with  the  department,  the
    31  advisory  council, and the toxic packaging task force, or as required by
    32  law, any proprietary information that is identified  by  a  producer  as
    33  proprietary information without prior written consent.
    34  § 27-3407. Packaging reduction and recycling organization plan.
    35    1.  Within  two years of the effective date of this title, the initial
    36  packaging reduction organization shall develop and  submit  a  packaging
    37  reduction  and  recycling plan for implementation of the rules and regu-
    38  lations of this title, including ensuring timely disbursements to  local
    39  governments, to the department for approval. The plan shall be submitted
    40  to  the  advisory council for review pursuant to section 27-3411 of this
    41  title prior to the department's approval.  Any subsequent or  additional
    42  organization  shall develop and submit a packaging reduction and recycl-
    43  ing plan and comply with all the requirements of this section, and  have
    44  such plan approved pursuant to section 27-3409 of this title.
    45    2.  The  plan  shall  cover five years and be updated every five years
    46  following the approval of the original plan. The department  shall  have
    47  the  discretion  to  require the plan to be reviewed or revised prior to
    48  the five-year period pursuant to section 27-3419 of this title.
    49    3. Each producer shall begin program implementation within six  months
    50  after  the date the plan for the initial organization is approved and in
    51  no event later than three years of the effective date of this title.  If
    52  no   plan  is  approved  by  that  timeframe,  the  department,  in  its
    53  discretion, shall either approve  a  plan  with  conditions  or  specify
    54  modifications  that  must  be made within forty-five days to conform the
    55  submitted plan to the requirements of this section.   If a  producer  is
    56  not  making  good  faith efforts to comply with the requirements of this

        A. 5322--C                         10

     1  title during such forty-five day period, the producer shall  be  subject
     2  to penalties for noncompliance.
     3    4. The submitted plan shall include, but not be limited to:
     4    (a)  contact information, including the name, e-mail address, physical
     5  address, and telephone number of the authorized  representative  of  the
     6  producer or producers;
     7    (b)  the  identity  of  the producer or producers participating in the
     8  plan;
     9    (c) a comprehensive list of the types and brands of covered  materials
    10  for which the producer or producers are responsible for;
    11    (d)  a description of how the organization will implement the program,
    12  including the mechanisms  and  processes  for  providing  assistance  to
    13  producers to comply with the reporting requirements of this title;
    14    (e) in relation to funding the program:
    15    (i) a proposed budget outlining the anticipated costs of operating the
    16  program  and  a  description  of  the  method  by which the organization
    17  intends to determine and collect producer payments  during  the  initial
    18  startup period;
    19    (ii)  a  description  of the proposed funding mechanism, identified in
    20  section 27-3413 of this title,  that  meets  the  requirements  of  this
    21  title;
    22    (iii)  a description of how the organization will maintain a financial
    23  reserve sufficient to operate the program  in  a  fiscally  prudent  and
    24  responsible manner; and
    25    (iv)  a  description  of  how  the  organization intends to manage and
    26  account for all program related funds which pass through  the  organiza-
    27  tion,  including  how timely reimbursements to local governments will be
    28  provided;
    29    (f) an objective formula  establishing  a  reimbursement  rate,  which
    30  covers  obligations  identified  in the needs assessment and the minimum
    31  recyclables list and takes into account  variable  regional  costs,  for
    32  participating local governments or private sector service providers;
    33    (g)  a  description of the process for participating local governments
    34  or private sector service providers to recoup reasonable costs as estab-
    35  lished by the objective formula,  from  the  producer  or  organization,
    36  including,  as  applicable,  any  administrative,  sorting,  collection,
    37  transportation, public education, or processing costs, if the  organiza-
    38  tion  uses  existing services through a local government or obtains such
    39  services from a private sector service provider;
    40    (h) at a minimum, the following funding  mechanism  details  shall  be
    41  provided in the plan:
    42    (i)  proposed  program fees, provided as a table listing the rate paid
    43  for each material category, including at a minimum those  identified  in
    44  subdivision three of section 27-3413, which in sum, will generate suffi-
    45  cient  funding  to  cover obligations identified in the needs assessment
    46  and the requirements of this title; and
    47    (ii) proposed program fee adjustments  to  incorporate  eco-modulation
    48  factors;
    49    (i)  a  description  of  the characteristics of each type of packaging
    50  material that is relevant to the eco-modulating factors set forth pursu-
    51  ant to section 27-3413 of this title;
    52    (j) if the local government does  not  elect  to  provide  service,  a
    53  description  of  the  process used for contracting with a private sector
    54  entity to provide such services and the recoupment of reasonable  costs,
    55  including  procedures  to  ensure that such private sector entity is not
    56  compensated for such services by both the organization and the  consumer

        A. 5322--C                         11

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

        A. 5322--C                         12

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

        A. 5322--C                         13

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

        A. 5322--C                         14

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

        A. 5322--C                         15

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

        A. 5322--C                         16

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

        A. 5322--C                         17

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

        A. 5322--C                         18

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

        A. 5322--C                         19

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

        A. 5322--C                         20

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

        A. 5322--C                         21

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

        A. 5322--C                         22

     1    (iv)  Heavy metals and compounds, including lead, hexavalent chromium,
     2  cadmium, and mercury,  but  excluding  copper  phthalocyanine  (chemical
     3  abstracts service registry number 147-14-8);
     4    (v) Benzophenone and its derivatives;
     5    (vi) Halogenated flame retardants;
     6    (vii) Perchlorate;
     7    (viii) Formaldehyde;
     8    (ix) Toluene;
     9    (x) Antimony and compounds;
    10    (xi) UV 328 (2-(2H-benzotriazol-2-yl)-4,6-di-tert-pentylphenol);
    11    (xii) Polyvinyl chloride, including polyvinylidene chloride;
    12    (xiii) Polystyrene but exluding EPS (expanded polystyrene); or
    13    (xiv) Polycarbonate.
    14    (b)  Beginning  five  years  after the promulgation of rules and regu-
    15  lations pursuant to this title, no person or entity  shall  sell,  offer
    16  for  sale,  or distribute into the state any packaging containing any of
    17  the toxic substances listed in paragraph (a) of this  subdivision,  even
    18  if  they  are  not an intentionally added substance, at or above a level
    19  that the department shall establish by regulation  that  is  the  lowest
    20  level that can feasibly be achieved; provided, however, that the depart-
    21  ment  shall  review  such level every five years to determine whether it
    22  should be lowered.
    23    2. (a) There is hereby established within the department a toxic pack-
    24  aging task force to review the toxicity in packaging in the  state,  and
    25  to  recommend  to  the  department  the  designation of additional toxic
    26  substances which shall be subject  to  the  same  prohibition  as  those
    27  substances listed in subdivision one of this section.
    28    (b)  The  toxic  packaging  task force shall have nine members, one of
    29  whom shall be the commissioner or their designee who shall be chair, and
    30  one of whom shall be the commissioner of health or their  designee.  The
    31  other  members  shall  include:    (i) a representative of the packaging
    32  industry; (ii) a representative of an  environmental  justice  organiza-
    33  tion;  (iii) a representative from the chemical industry; (iv) a profes-
    34  sional or academic expert in  toxicology;  and  (v)  a  professional  or
    35  academic  expert  in public health risk assessment; all of whom shall be
    36  appointed by the commissioner. The remaining members  shall  be  persons
    37  with significant professional or academic expertise in maternal or child
    38  health,  epidemiology,  chemical  safety or public health policy, one of
    39  whom shall be appointed by the temporary president of the senate and one
    40  of whom shall be appointed by the speaker of the assembly.  Appointments
    41  to the toxic packaging task force are term limited to  five  consecutive
    42  years of service.
    43    (c)  The  task  force shall meet at least twice per year to review and
    44  recommend to the department  whether  (i)  there  are  additional  toxic
    45  substances  or  classes  of  toxic  substances for use in packaging that
    46  should no longer be sold, offered for sale,  distributed  for  sale,  or
    47  distributed  for  such  use  in  this  state,  and  (ii) there should be
    48  substance or material-specific exceptions to the  prohibitions  provided
    49  for in subdivision one of this section, provided such recommendation may
    50  be made only upon a demonstration of substantial and convincing evidence
    51  that  such  substance or material does not meet the criteria for classi-
    52  fication as a toxic substance or material.
    53    3. (a) Within one hundred eighty days  of  the  toxic  packaging  task
    54  force recommending the designation of an additional toxic substance, the
    55  department shall adopt rules and regulations to designate such substance
    56  as  a  toxic  substance  under this section and prohibit the use of such

        A. 5322--C                         23

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

        A. 5322--C                         24

     1    (d) Beginning ten years after  the  program  implementation  date  set
     2  forth  in  subdivision  three of section 27-3407 or January first of the
     3  tenth year following the date on which a producer first  registers  with
     4  an organization if a producer registers after the program implementation
     5  date, such producer shall reduce the amount of primary plastic packaging
     6  material,  and the amount of all other packaging material, for all mate-
     7  rials used to contain, protect,  deliver,  present,  or  distribute  the
     8  products  they  sell,  offer  for  sale, or distribute for sale into the
     9  state, in each case, by twenty-five percent  either  on  a  company-wide
    10  basis  or  by  unit  weight for all packaging materials used to contain,
    11  protect, deliver, present, or distribute the products they  sell,  offer
    12  for sale, or distribute for sale in the state.
    13    (e)  Beginning  twelve years after the program implementation date set
    14  forth in subdivision three of section 27-3407 or January  first  of  the
    15  twelfth year following the date on which a producer first registers with
    16  an organization if a producer registers after the program implementation
    17  date, such producer shall reduce the amount of primary plastic packaging
    18  material,  and the amount of all other packaging material, for all mate-
    19  rials used to contain, protect,  deliver,  present,  or  distribute  the
    20  products  they  sell,  offer  for  sale, or distribute for sale into the
    21  state, in each case, by thirty percent either on a company-wide basis or
    22  by unit weight, for all packaging materials used  to  contain,  protect,
    23  deliver,  present, or distribute the products they sell, offer for sale,
    24  or distribute for sale in the state.
    25    2. The reductions required by this section shall be  measured  against
    26  the  packaging  material  the  producer  used during the first year such
    27  producer registered with an organization.
    28    3. These reductions shall be achieved by eliminating single-use  pack-
    29  aging  material,  including  secondary  or  tertiary packaging material,
    30  elimination of packaging material  components,  reduction  of  packaging
    31  material components, or by transitioning to reusable or refillable pack-
    32  aging  systems.  Reductions may also be achieved by substituting plastic
    33  packaging material with non-plastic  packaging  material.  However,  the
    34  reductions  required by this section shall not be achieved by substitut-
    35  ing non-plastic materials with plastic materials or substituting recycl-
    36  able materials with non-recyclable materials.
    37    4. The department may adjust the reduction performance requirements in
    38  subdivision one of this section by rulemaking based on information gath-
    39  ered through the needs assessment or  provided  in  producer  plans  and
    40  reports,  and/or  based on consideration of environmental, technical and
    41  economic conditions. An adjustment to the reduction performance  targets
    42  may  not  adjust  the  reduction requirement to less than ten percent or
    43  more than thirty percent.
    44    5. In the case of a producer for which, as of the  effective  date  of
    45  this  title  or  upon entry into the market after such effective date, a
    46  portion of its packaging is reusable and contained within  a  reuse  and
    47  refill  system,  such  producer may apply to the department for a waiver
    48  from the packaging reduction requirements set forth in  subdivision  one
    49  of  this  section  with  respect to that percentage of its packaging, by
    50  unit weight, which is contained within a reuse and refill system.
    51    6. In the case of a producer that demonstrates in a  manner  satisfac-
    52  tory to the department that, for the period beginning ten years prior to
    53  the  effective  date  of  this title and ending on the date which is two
    54  years after the effective date of this title, the producer  reduced  the
    55  amount  of  packaging  used  to  contain,  protect, deliver, present, or
    56  distribute the products the producer sells, offers for sale, or distrib-

        A. 5322--C                         25

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

        A. 5322--C                         26

     1    (iv)  label  constructions,  including  adhesives, inks, materials and
     2  formats, or features that render a package non-recyclable or  disruptive
     3  to the recycling process; and
     4    (v) DoPS - polystyrene, excluding EPS (expanded polystyrene);
     5    (d) meet the post-consumer content requirements of this title; and
     6    (e) any other criteria determined by the department.
     7    2.  Each  individual  producer shall be required to meet the following
     8  recycling rate standards:
     9    (a) With respect to the producer's non-plastic packaging:
    10    (i) Beginning January first, two thousand twenty-nine,  a  minimum  of
    11  thirty-five percent of packaging material reported by the producer or an
    12  organization  as  supplied  into  the state shall be reused or recycled,
    13  with a minimum of five percent being reused;
    14    (ii) Beginning January first, two thousand thirty-six,  a  minimum  of
    15  fifty  percent  of  packaging  material  reported  by the producer or an
    16  organization as supplied into the state shall  be  reused  or  recycled,
    17  with a minimum of ten percent being reused; and
    18    (iii)  Beginning  January  first, two thousand fifty-one, a minimum of
    19  seventy-five percent of packaging material reported by the  producer  or
    20  an  organization as supplied into the state shall be reused or recycled,
    21  with a minimum of twenty percent being reused.
    22    (b) With respect to plastic packaging:
    23    (i) Beginning January first, two thousand twenty-nine,  a  minimum  of
    24  twenty-five  percent  of  plastic  packaging  material  reported  by the
    25  producer or an organization as supplied into the state shall  be  reused
    26  or recycled;
    27    (ii)  Beginning  January  first, two thousand thirty-six, a minimum of
    28  fifty percent of plastic packaging material reported by the producer  or
    29  an  organization as supplied into the state shall be reused or recycled;
    30  and
    31    (iii) Beginning January first, two thousand fifty-one,  a  minimum  of
    32  seventy-five  percent  of  plastic  packaging  material  reported by the
    33  producer or an organization as supplied into the state shall  be  reused
    34  or recycled.
    35    3. The department may adjust the recycling rates in subdivision two of
    36  this  section  by  rulemaking  based on information gathered through the
    37  needs assessment or provided in producer plans and reports, and/or based
    38  on consideration of environmental, technical and economic conditions. An
    39  adjustment to the statewide recycling and reuse performance targets  may
    40  not adjust the recycling rate target to less than thirty percent or more
    41  than seventy-five percent.
    42    4.  A producer may apply to the department for a waiver from the recy-
    43  cling rate requirements of this section if compliance is impossible  due
    44  to  federal  law  or  otherwise conflicts with federal law.  Such waiver
    45  shall be applied for annually. In such application  the  producer  shall
    46  provide the department and the advisory council with sufficient informa-
    47  tion,  in  the  determination of the department in consultation with the
    48  advisory council, to make a determination on such application, including
    49  proof that the producer has taken all feasible actions  to  achieve  the
    50  reductions required by this section.
    51    5. The requirements of subdivision two of this section shall not apply
    52  to reusable or refillable packaging or containers.
    53  § 27-3433. Establishment of the office of recycling inspector general.
    54    1. The commissioner shall establish an independent office of recycling
    55  inspector general within the department. The recycling inspector general
    56  shall  evaluate  the programs and organizations created pursuant to this

        A. 5322--C                         27

     1  title on an annual basis and shall ensure such programs are  functioning
     2  properly,  and  that  all  organizations and producers are in compliance
     3  with the requirements of this title.
     4    2.  The recycling inspector general shall have the authority to inves-
     5  tigate the  compliance  of  producers  and  the  organization  with  all
     6  provisions of this title and to bring enforcement actions for violations
     7  of  this  title  pursuant  to  the provisions of section 27-3435 of this
     8  title.  A violation by the organization as the result of actions by  one
     9  or more producers shall be enforceable by the recycling inspector gener-
    10  al as violations against such producers.
    11  § 27-3435. Penalties and enforcement.
    12    1. Failure to comply with the requirements of this title shall subject
    13  the  organization or an individual producer to penalties for violations.
    14  The department, recycling inspector general, or  attorney  general,  may
    15  conduct investigations, including inspecting operations, facilities, and
    16  records of producers and organizations, and performing audits of produc-
    17  ers and organizations, to determine whether such producers and organiza-
    18  tions are complying with the requirements of this title.
    19    2.  The  department,  the recycling inspector general, or the attorney
    20  general, shall notify an organization or  producer  of  any  conduct  or
    21  practice that does not comply with the requirements of this title and of
    22  any inconsistencies identified in an audit.
    23    3.  The  department, the recycling inspector general, and the attorney
    24  general, may issue a notice of violation to, and impose  an  administra-
    25  tive  civil  penalty  not  to  exceed  one  thousand dollars per day per
    26  violation on any entity not in compliance with this title or any of  the
    27  regulations  the  department  adopts  to  implement  this title. For the
    28  purposes of this section, each product line that is  sold,  offered  for
    29  sale,  or  distributed  to  consumers  via retail commerce in the state,
    30  including through an internet transaction, shall be considered  a  sepa-
    31  rate violation.
    32    4. Civil penalties under this section shall be assessed by the depart-
    33  ment  after  an  opportunity  to  be heard pursuant to the provisions of
    34  section 71-1709 of this chapter, or  by  the  court  in  any  action  or
    35  proceeding  pursuant to section 71-2727 of this chapter, and in addition
    36  thereto, such person or entity may by similar process be  enjoined  from
    37  continuing such violation and any permit, registration or other approval
    38  issued  by  the  department  may  be  revoked  or suspended or a pending
    39  renewal denied.
    40  § 27-3437. Rules and regulations.
    41    1. Within eighteen months after the effective date  of  this  section,
    42  the  department  shall promulgate all rules and regulations necessary to
    43  implement, administer, and enforce the provisions of this title.
    44    2. When promulgating rules pursuant to the provisions of this section,
    45  the department shall solicit input from the public of any draft rule  or
    46  regulation  to  implement this section, including at a minimum a ninety-
    47  day comment period and one public hearing on such draft rules.
    48  § 27-3439. State preemption.
    49    Jurisdiction in all matters pertaining to costs and funding mechanisms
    50  of packaging reduction  and  recycling  organizations  relating  to  the
    51  recovery  of  packaging materials shall, by this title, be vested exclu-
    52  sively in the state; provided, however, that nothing in this title shall
    53  preclude any city, town, village or  other  local  planning  units  from
    54  determining  what  materials  shall be included for recycling in a local
    55  government recycling collection program or  shall  preclude  any  person

        A. 5322--C                         28

     1  from  coordinating,  for recycling or reuse, the collection of packaging
     2  materials and products.
     3  § 27-3441. Other assistance programs.
     4    Nothing  in  this  title shall impact any producer eligibility for any
     5  state or local incentive or assistance program to which they are  other-
     6  wise eligible.
     7  § 27-3443. Antitrust protections.
     8    A  producer  shall not be liable for any claim of a violation of anti-
     9  trust, restraint of trade, or unfair trade practice arising from conduct
    10  undertaken in order to comply with this title; provided,  however,  this
    11  section  shall  not apply to any agreement establishing or affecting the
    12  price of packaging material, or the output or production of  any  agree-
    13  ment  restricting  the  geographic  area or customers to which packaging
    14  material will be sold.
    15  § 27-3445. Severability.
    16    The provisions of this title shall be severable  and  if  any  phrase,
    17  clause, sentence or provision of this title or the applicability thereof
    18  to  any  person  or circumstance shall be held invalid, the remainder of
    19  this title and the application thereof shall not be affected thereby.
    20    § 3. The environmental conservation law is amended  by  adding  a  new
    21  section 37-0202 to read as follows:
    22  § 37-0202. Applicability.
    23    This  article  shall  only have effect to the extent that the prohibi-
    24  tions in this title are not otherwise substantially given effect  or  in
    25  conflict with the provisions of title thirty-four of article twenty-sev-
    26  en of this chapter.
    27    § 4. This act shall take effect immediately.
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