Bill Text: NY S04246 | 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 32-0)

Status: (Engrossed) 2024-06-07 - referred to ways and means [S04246 Detail]

Download: New_York-2023-S04246-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4246--C

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 6, 2023
                                       ___________

        Introduced  by Sens. HARCKHAM, KAVANAGH, ADDABBO, BAILEY, BRESLIN, BRIS-
          PORT, BROUK,  CHU,  CLEARE,  COMRIE,  FERNANDEZ,  GIANARIS,  GONZALEZ,
          GOUNARDES,  HINCHEY, HOYLMAN-SIGAL, JACKSON, KRUEGER, LIU, MAY, MAYER,
          MYRIE,   PALUMBO,   PARKER,   RAMOS,   RIVERA,    SALAZAR,    SANDERS,
          SCARCELLA-SPANTON,  SEPULVEDA, SERRANO, STAVISKY, THOMAS, WEBB -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee  on  Environmental  Conservation  -- reported favorably from
          said committee and committed to the Committee on Finance --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  recommitted to the Committee on Environmental
          Conservation in accordance with Senate Rule 6,  sec.  8  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  reported  favorably  from  said committee and
          committed to the Committee on Finance --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

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

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

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "packaging reduction and recycling infrastructure act".
     3    §  2.  Article  27 of the environmental conservation law is amended by
     4  adding a new title 34 to read as follows:
     5                                  TITLE 34
     6            PACKAGING REDUCTION AND RECYCLING INFRASTRUCTURE ACT
     7  Section 27-3401. Definitions.
     8          27-3403. Selection of packaging reduction and  recycling  organ-
     9                    izations.
    10          27-3405. Responsibilities  of  packaging reduction and recycling
    11                    organizations.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08868-16-4

        S. 4246--C                          2

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

        S. 4246--C                          3

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

        S. 4246--C                          4

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

        S. 4246--C                          5

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

        S. 4246--C                          6

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

        S. 4246--C                          7

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

        S. 4246--C                          8

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

        S. 4246--C                          9

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

        S. 4246--C                         10

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

        S. 4246--C                         11

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

        S. 4246--C                         12

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

        S. 4246--C                         13

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

        S. 4246--C                         14

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

        S. 4246--C                         15

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

        S. 4246--C                         16

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

        S. 4246--C                         17

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

        S. 4246--C                         18

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

        S. 4246--C                         19

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

        S. 4246--C                         20

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

        S. 4246--C                         21

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

        S. 4246--C                         22

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

        S. 4246--C                         23

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

        S. 4246--C                         24

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

        S. 4246--C                         25

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

        S. 4246--C                         26

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

        S. 4246--C                         27

     1  of  this  title  pursuant  to  the provisions of section 27-3435 of this
     2  title.  A violation by the organization as the result of actions by  one
     3  or more producers shall be enforceable by the recycling inspector gener-
     4  al as violations against such producers.
     5  § 27-3435. Penalties and enforcement.
     6    1. Failure to comply with the requirements of this title shall subject
     7  the  organization or an individual producer to penalties for violations.
     8  The department, recycling inspector general, or  attorney  general,  may
     9  conduct investigations, including inspecting operations, facilities, and
    10  records of producers and organizations, and performing audits of produc-
    11  ers and organizations, to determine whether such producers and organiza-
    12  tions are complying with the requirements of this title.
    13    2.  The  department,  the recycling inspector general, or the attorney
    14  general, shall notify an organization or  producer  of  any  conduct  or
    15  practice that does not comply with the requirements of this title and of
    16  any inconsistencies identified in an audit.
    17    3.  The  department, the recycling inspector general, and the attorney
    18  general, may issue a notice of violation to, and impose  an  administra-
    19  tive  civil  penalty  not  to  exceed  one  thousand dollars per day per
    20  violation on any entity not in compliance with this title or any of  the
    21  regulations  the  department  adopts  to  implement  this title. For the
    22  purposes of this section, each product line that is  sold,  offered  for
    23  sale,  or  distributed  to  consumers  via retail commerce in the state,
    24  including through an internet transaction, shall be considered  a  sepa-
    25  rate violation.
    26    4. Civil penalties under this section shall be assessed by the depart-
    27  ment  after  an  opportunity  to  be heard pursuant to the provisions of
    28  section 71-1709 of this chapter, or  by  the  court  in  any  action  or
    29  proceeding  pursuant to section 71-2727 of this chapter, and in addition
    30  thereto, such person or entity may by similar process be  enjoined  from
    31  continuing such violation and any permit, registration or other approval
    32  issued  by  the  department  may  be  revoked  or suspended or a pending
    33  renewal denied.
    34  § 27-3437. Rules and regulations.
    35    1. Within eighteen months after the effective date  of  this  section,
    36  the  department  shall promulgate all rules and regulations necessary to
    37  implement, administer, and enforce the provisions of this title.
    38    2. When promulgating rules pursuant to the provisions of this section,
    39  the department shall solicit input from the public of any draft rule  or
    40  regulation  to  implement this section, including at a minimum a ninety-
    41  day comment period and one public hearing on such draft rules.
    42  § 27-3439. State preemption.
    43    Jurisdiction in all matters pertaining to costs and funding mechanisms
    44  of packaging reduction  and  recycling  organizations  relating  to  the
    45  recovery  of  packaging materials shall, by this title, be vested exclu-
    46  sively in the state; provided, however, that nothing in this title shall
    47  preclude any city, town, village or  other  local  planning  units  from
    48  determining  what  materials  shall be included for recycling in a local
    49  government recycling collection program or  shall  preclude  any  person
    50  from  coordinating,  for recycling or reuse, the collection of packaging
    51  materials and products.
    52  § 27-3441. Other assistance programs.
    53    Nothing in this title shall impact any producer  eligibility  for  any
    54  state  or local incentive or assistance program to which they are other-
    55  wise eligible.
    56  § 27-3443. Antitrust protections.

        S. 4246--C                         28

     1    A producer shall not be liable for any claim of a violation  of  anti-
     2  trust, restraint of trade, or unfair trade practice arising from conduct
     3  undertaken  in  order to comply with this title; provided, however, this
     4  section shall not apply to any agreement establishing or  affecting  the
     5  price  of  packaging material, or the output or production of any agree-
     6  ment restricting the geographic area or  customers  to  which  packaging
     7  material will be sold.
     8  § 27-3445. Severability.
     9    The  provisions  of  this  title shall be severable and if any phrase,
    10  clause, sentence or provision of this title or the applicability thereof
    11  to any person or circumstance shall be held invalid,  the  remainder  of
    12  this title and the application thereof shall not be affected thereby.
    13    §  3.  The  environmental  conservation law is amended by adding a new
    14  section 37-0202 to read as follows:
    15  § 37-0202. Applicability.
    16    This article shall only have effect to the extent  that  the  prohibi-
    17  tions  in  this title are not otherwise substantially given effect or in
    18  conflict with the provisions of title thirty-four of article twenty-sev-
    19  en of this chapter.
    20    § 4. This act shall take effect immediately.
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