Bill Amendment: IL SB0085 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: BEVERAGE CONTAINER REFUND

Status: 2024-04-19 - Rule 2-10 Committee Deadline Established As May 3, 2024 [SB0085 Detail]

Download: Illinois-2023-SB0085-Senate_Amendment_004.html

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Sen. Laura M. Murphy

Filed: 3/8/2024

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AMENDMENT TO SENATE BILL 85
AMENDMENT NO. ______. Amend Senate Bill 85 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the State
Beverage Container Recycling Refunds Act.
Section 5. Definitions. In this Act:
"Agency" means the Environmental Protection Agency.
"Area of environmental justice concern" means a census
block group that is designated by the Agency, by
administrative rule, as a census block group in which the
population of low-income or minority residents is twice the
statewide average.
"Beverage" means any drinkable liquid intended for human
oral consumption. "Beverage" does not include:
(1) a drug regulated under the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 301 et seq.);

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(2) 100% fluid cow milk;
(3) infant formula; or
(4) a meal replacement liquid.
"Beverage container" means any prepackaged container for
beverages.
"Beverage container processing mechanism" means any manual
or technological means by which empty beverage containers are
properly identified and processed.
"Beverage producer" means a person who bottles, cans, or
otherwise fills beverage containers to sell to distributors,
importers, or retailers.
"Consumer" means a person who purchases a beverage
container in the State for use or consumption.
"Covered beverage container" means a beverage container:
(1) made of 90% or more glass, polyethylene
terephthalate (PET), high-density polyethylene (HDPE)
plastic, or aluminum;
(2) designed to be used once before being recycled or
designed to be reused for multiple cycles before being
recycled; and
(3) with a volume of no more than one gallon.
"Distributor" means a person, including, but not limited
to, a beverage producer, who engages in the sale of beverage
containers to a retailer in the State.
"Drop-off facility" means a specific area where
individuals may bring household recyclable materials to be

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sorted into material-specific receptacles and is (i) located
in the State or (ii) located outside the State and receives
more than half of the material it collects from State
residents.
"Importer" means a retailer or beverage producer who
directly imports beverage containers into the State.
"Line defect" means a beverage container that becomes
defective or damaged during manufacturing, is not meant for
sale, and is not eligible for redemption.
"Material recovery facility" means a facility that
receives, separates, and sells or otherwise distributes
postconsumer materials for recycling and is (i) located in the
State or (ii) located outside the State and receives more than
half of the material it collects from State residents.
"Member" means a distributor or importer who has joined
the Organization and paid all applicable fees.
"Non-covered beverage container" means a beverage
container that is not included in the definition of covered
beverage container.
"Nonprofit organization" means an organization established
and operated as a nonprofit organization under Section
501(c)(3) of the Internal Revenue Code.
"Organization" means the Distributor and Importer
Responsibility Organization established under Section 50.
"Recycle" means the series of activities by which a
beverage container is:

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(1) collected and processed;
(2) converted into raw material; and
(3) used in the production of a new product, including
the original product.
"Recycle" does not include:
(1) the use of material to produce a fuel or fuel
substitute;
(2) the use of material in a chemical conversion
process, such as solvolysis or depolymerization;
(3) the use of material in an incineration process,
such as a waste-to-energy process; or
(4) the use of material within the footprint of a
landfill.
"Recycling rate" means the percentage of covered beverage
containers recycled out of all covered beverage containers
sold in the State.
"Retailer" means a person or business in the State who
engages in the sale of beverage containers to a consumer.
"Self-service kiosk" means a machine which a consumer can
use to:
(1) create an account in order to participate in a
bag-drop program;
(2) conduct account activity, including viewing an
account balance;
(3) print vouchers redeemable for cash or store credit
for redeemed beverage containers; or

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(4) print labels to identify bags in the bag-drop
program with the consumer's account.
A self-service kiosk does not redeem beverage containers.
"Store" means an individual location where a retailer
sells beverage containers.
Section 10. Beverage container recycling redemption refund
program.
(a) Except as otherwise provided in this Section, each
covered beverage container sold or offered for sale in the
State shall have the following redemption refund value:
(1) 5 cents for a beverage container of 24 fluid
ounces or less; and
(2) 10 cents for a beverage container of more than 24
fluid ounces.
(b) Two years after covered beverage containers begin to
be sold or offered for sale in the State with the refund value
in paragraph (a), every covered beverage container sold or
offered for sale in the State shall, except as otherwise
provided by rule adopted in accordance with subsection (b),
have the following refund value:
(1) 10 cents for a beverage container of 24 fluid
ounces or less; and
(2) 15 cents for a beverage container of more than 24
fluid ounces.
(c) The Agency may adopt rules providing a different

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redemption refund value than the redemption refund value
provided under subsection (b), so long as the modified
redemption refund value is not based on the type of
postconsumer material being recycled, but no more often than:
(1) once during any 10-year period in consultation
with the Organization; and
(2) once during any 5-year period and after receiving
a request from the Organization for a change to one or both
redemption refund amounts, if the Agency's change conforms
with the Organization's request.
(d) Prior to any change in the redemption refund value
under subsection (c), the Agency must undergo a notice and
comment review period with at least 60 days' notice to the
public.
(e) Any moneys designated for redemption refunds but that
are not claimed by consumers shall be used by the Organization
only to support its administrative costs and to perform the
activities required under this Act.
Section 15. Material flows.
(a) When a consumer redeems a beverage container in
accordance with this Act, the Organization becomes the owner
of that beverage container and may:
(1) sell it to a buyer of its choosing after first
allowing a beverage producer or a company of its beverage
container supply chain to purchase the material at a fair

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market rate; or
(2) on its own or via a third party, process the
beverage container for refill if it is reusable or has an
agreement with one or more third parties that manage
reusable beverage containers in the recycling refund
system.
(b) If a consumer chooses to put a beverage container in
its curbside recycling receptacle or a drop-off receptacle,
the operator of the material recovery facility that sorts the
beverage container or the operator of the drop-off facility
that receives the beverage container may offer to sell the
material to the Organization, which then may be required to
pay a certain percent of the redemption value per beverage
container under Section 45.
Section 20. Means of redemption.
(a) At each store having a floor space that is greater than
or equal to 10,000 square feet, excluding only outdoor space,
the Organization shall, at its expense, install, operate, and
maintain:
(1) bulk bag drop-off for all redeemable beverage
containers; and
(2) one or more beverage container processing
mechanisms that allow the consumer to:
(A) redeem all redeemable beverage containers; and
(B) immediately receive the refund value.

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(b) At each store having a floor space that is greater than
or equal to 10,000 square feet, excluding only outdoor space,
the Organization may, in consultation with the retailer and at
its expense, install, operate, and maintain additional
beverage container processing mechanisms beyond what is
required in subsection (a) to meet the redemption option
requirements per county in this Section and the performance
targets in Section 55.
(c) At each of its stores having a floor space that is
greater than or equal to 10,000 square feet, excluding only
outdoor space, the retailer shall decide where in each store
the Organization will, on space the retailer controls inside
or outside the store, install, operate, and maintain beverage
container processing mechanisms.
(d) At each of its stores having a floor space that is
greater than or equal to 1,000 square feet but less than 10,000
square feet, excluding only outdoor space, the retailer shall,
upon the Organization's request, allow the Organization to
install, operate, and maintain beverage container processing
mechanisms necessary to meet the redemption option
requirements per county in this Section and the performance
targets in Section 55 on space of the retailer's choosing that
it controls inside or outside the store.
(e) A retailer who operates a store having a floor space
that is less than 1,000 square feet, excluding outdoor space,
has no duty under this Act to host a beverage container

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processing mechanism.
(f) Notwithstanding subsections (a) through (e):
(1) the retailer may make available more than the
required space for beverage container processing
mechanisms;
(2) the Organization may install, operate, and
maintain more beverage container processing mechanisms on
the additional space made available under paragraph (1);
and
(3) a retailer at any of its stores with more than
1,000 square feet, upon request by the Organization
regarding a particular store of the retailer, must offer
for sale at that particular store of the retailer the
standard bags that the Organization deems necessary to
operate a bag-drop program.
(g) A retailer is exempt from the requirements of
subsections (a) through (f) at stores the retailer operates
that:
(1) sell beverage containers as an inconsequential
amount of the store's annual revenue, meaning less than 5%
of the store's annual revenue, through stand-alone vending
machines, stand-alone refrigerator cases, or similar
means; or
(2) primarily prepare food for sale.
(h) The Agency, in consultation with the Organization and
retailers, shall develop a formula to determine how to fairly

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compensate annually the retailer for use of the space at each
store of the retailer that the retailer permits the
Organization to install, operate, and maintain beverage
container processing mechanisms.
(i) The Organization shall, at the request of a retailer
that owns a store at which it is operating beverage container
processing mechanisms, provide the consumer the option to
redeem its refund value for a credit at the retailer in
addition to any financial incentive beyond the refund value
that the retailer chooses to provide the consumer.
(j) Through the redemption mechanisms established at
retailers or at other locations, the Organization shall
install, service, and maintain at least the number of beverage
container processing mechanisms necessary to meet the minimum
number determined under subsection (k) for each of the
following classes of counties:
(1) counties with a population density that is less
than 250 individuals per square mile;
(2) counties with a population density that is greater
than or equal to 250 individuals per square mile but less
than 500 individuals per square mile;
(3) counties with a population density that is greater
than or equal to 500 individuals per square mile but less
than 750 individuals per square mile;
(4) counties with a population density that is greater
than or equal to 750 individuals per square mile but less

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than 1,000 individuals per square mile;
(5) counties with a population density that is greater
than or equal to 1,000 individuals per square mile but
less than 5,000 individuals per square mile; and
(6) counties with a population density that is greater
than or equal to 5,000 individuals per square mile.
(k) The Organization shall determine the minimum number of
each beverage container processing mechanism required in each
county based on the classification in subsection (j) and the
following criteria:
(1) the number of stores in the county that host
beverage container processing mechanisms;
(2) the number of stores in the county that must, upon
request by the Organization, host beverage container
processing mechanisms;
(3) the proximity between the stores in paragraphs (1)
and (2), their proximity to residents, and their proximity
to public transit;
(4) the size of the stores in paragraphs (1) and (2);
(5) the percentage of county residents with a car; and
(6) the percentage of county residents below the
federal poverty line.
(l) By no later than the date upon which covered beverage
containers are sold or offered for sale in the State with the
refund value specified in Section 10, the Organization shall
operate in each county that contains an area of environmental

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justice concern directly, in partnership or through contract
with another entity, at least one redemption site that:
(1) provides written information about the redemption
process in at least 3 languages other than English and a QR
code that provides information in additional non-English
languages spoken in the county; and
(2) is staffed by persons trained to communicate
appropriately and to deliver services effectively to
persons in culturally diverse and underserved communities.
(m) By no later than the date upon which covered beverage
containers are sold or offered for sale in the State with the
refund value specified in Section 10, at least 5 of the
redemption mechanisms the Organization operates directly, in
partnership or through contracting with another entity, shall
be mobile redemption sites that operate at least 40 hours per
week, excluding local, State, or federal holidays, and shall
be designed to:
(1) provide services to persons who redeem high
volumes of beverage containers; and
(2) collect beverage containers for redemption from
persons who are physically impaired or otherwise unable to
transport beverage containers to a redemption center.
(n) The Organization may enter into an agreement to
install, operate, and maintain additional beverage container
processing mechanisms at any location in order to meet:
(1) the redemption option requirements under this

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Section for each county; and
(2) the performance targets required in Section 55.
(o) Any facility that the Organization sets up in the
State to aggregate, sort, and process the material collected
at various redemption locations under this Act may:
(1) accept, pursuant to a reasonable process the
Organization may establish, beverage containers that are
eligible for redemption and are submitted in the
Organization's standard redemption bag, as designated by
the Organization; and
(2) provide a nonprofit organization with a premium to
be determined and paid for by the Organization.
(p) The public shall have access to redeem beverage
containers in accordance with this Section for not less than
10 hours each day:
(1) except on federal, State, or local holidays;
(2) except at a facility set up by the Organization to
aggregate, sort, and process redeemed beverage containers;
or
(3) unless restricted by the open hours of the store
in which the beverage container processing mechanism is
being operated.
(q) The Organization must provide information to the
public detailing how consumers can alert the Organization to
problems at beverage container processing mechanisms operated
by the Organization. The information shall be provided via:

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(1) the Organization's website; and
(2) clearly visible signage at each beverage container
processing mechanism that the Organization operates.
(r) The Organization may establish reasonable terms and
conditions for the use of a beverage container processing
mechanism.
Section 25. Labeling requirements.
(a) A beverage producer, distributor, or importer shall
include the abbreviation "RV" on a clearly visible portion of
the top or side of each beverage container that is sold by the
beverage producer, distributor, or importer in the State.
(b) The Organization may require that any beverage
producer, distributor, or importer include, on any space that
is on the top or side of each beverage container sold in the
State, the clearly visible abbreviation of the State and
applicable redemption refund value under Section 10.
(c) A beverage producer, distributor, or importer may
include a barcode or unique code verification on a beverage
container to automatically identify it.
Section 30. Timing.
(a) By no later than 24 months after the effective date of
this Act, covered beverage containers that are sold in the
State must be redeemable for the applicable redemption refund
value under Section 10.

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(b) The Agency may permit:
(1) up to an additional 365 days to meet the deadline
specified in subsection (a); or
(2) any delays needed to align the implementation
timing of the recycling refund system in this Act with any
broader extended producer responsibility system that has
become law in the State for packaging or printed paper
more generally.
(c) The Organization may choose at any time to make one or
more non-covered beverage containers eligible for the same
refund value as covered beverage containers and, once
eligible, the Organization must still comply with all the
requirements of this Act, including performance targets.
(d) If the market share of a non-covered beverage
container in any 2 full calendar years in a row grows to 5%
more than what it was over the average of 2 full calendar years
before the effective date of this Act, then the Organization
must:
(1) make that non-covered beverage container eligible
for the same refund value as covered beverage containers
and still comply with all the requirements of this Act,
including performance targets; or
(2) charge its members for each non-covered beverage
container sold in the State the amount of the refund value
for an equivalent in size covered beverage container and
use the revenue from this charge only to support the

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grants permitted under this Act to improve education,
outreach, or infrastructure to enhance the recycling or
reuse of beverage containers.
Section 35. Prohibitions.
(a) No person shall distribute, import, or sell beverage
containers in or into the State except in compliance with this
Act.
(b) No person shall redeem under this Act a beverage
container that was not sold in the State to a consumer in the
State.
Section 40. Agency duties. On or before October 1 of each
year after the effective date of this Act, the Agency shall
identify and communicate to the Organization the Agency's
total estimated annual cost to implement, administer, and
enforce this Act, including the cost of adopting rules under
this Act, in the next calendar year, after:
(1) subtracting the moneys that the Agency collected
from penalties assessed under this Act, which shall be
applied toward fulfilling the Agency's responsibilities
under this Act in the next calendar year; and
(2) adding any expenses incurred in fulfilling the
Agency's responsibilities under this Act that are not
covered by the annual cost from the previous year.

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Section 45. Drop-off facilities and material recovery
facilities.
(a) Each drop-off facility or material recovery facility
may submit the following information to the Organization:
(1) the number of tons of each beverage container type
eligible for a refund that it sold or transferred out of
its facility in the last full calendar year before a
beverage container was sold with an applicable refund
value; and
(2) an estimate of the tons under paragraph (1) that
were received from sources in the State.
(b) The optional information detailed in subsection (a)
shall be submitted on or before April 1 and shall pertain only
to the previous full calendar year.
(c) By July 1 of each calendar year, starting the first
full year and ending the fourth full year after covered
beverage containers are sold with the applicable refund value,
the Organization must make an annual payment directly to each
material recovery facility and drop-off facility operator that
submits data according to subsection (a) that:
(1) equals 5% of the scrap value of the material the
Organization sold in the preceding calendar year; and
(2) is based on the data submitted by the material
recovery facility and drop-off facility operators under
subsection (a).
(d) The operators of material recovery facilities or

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drop-off facilities shall use an industry-standard scale to
measure the weight of all beverage containers that enter the
facility.
(e) When the operator of a material recovery facility or
drop-off facility chooses to offer for purchase to the
Organization beverage containers purchased in the State and
redeemable under this Act, the Organization shall buy those
beverage containers at the amounts specified in this Section
as long as the quality standards described in this Section are
met.
(f) For the first 10 years after eligible beverage
containers are sold with a refund value, the Organization
shall pay material recovery facilities and drop-off
facilities:
(1) 100% of the refund value for each covered beverage
container:
(A) made of 90% or more aluminum, polyethylene
terephthalate (PET), or high-density polyethylene
(HDPE) that the material recovery facility or drop-off
facility offers to the Organization:
(i) as a bale or loose; and
(ii) that meets the relevant and most recently
published Institute of Scrap Recycling Industries
specifications.
(B) made of 90% or more glass that the material
recovery facility or drop-off facility offers to the

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organization:
(i) loose; and
(ii) as furnace-ready cullet;
(2) 50% for beverage containers made of 90% or more
glass that the material recovery facility or drop-off
facility offers to the organization and that contains 15%
or less non-glass residuals or fines.
(g) Following the first 10 years after eligible beverage
containers are sold with a refund value, the Organization
shall pay material recovery facilities and drop-off facilities
for each eligible beverage container it is offered as a bale or
loose with the following structure based on each material
type:
(1) for beverage containers made of 90% or more
aluminum, operators of material recovery facilities and
drop-off facilities receive 100% of the refund value if
they meet the relevant and most recently published
Institute of Scrap Recycling Industries specifications;
(2) for beverage containers made of 90% or more glass,
operators of material recovery facilities and drop-off
facilities receive:
(A) 100% of the refund value if the material
recovery facility or drop-off facility provides
furnace-ready cullet; and
(B) 50% of the refund value if the material
recovery facility or drop-off facility provides glass

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that contains 15% or less non-glass residuals or
fines;
(3) For beverage containers made of 90% or more
polyethylene terephthalate (PET), operators of material
recovery facilities and drop-off facilities receive:
(A) 100% of the refund value if they are
third-party certified as meeting the Association of
Plastic Recyclers Grade B model specification for PET
bottle bales; and
(B) 50% of the refund value if they do not meet the
Grade B specification; and
(4) For beverage containers made of 90% or more
high-density polyethylene (HDPE), operators of material
recovery facilities and drop-off facilities receive 100%
of the refund value if they are third-party certified as
meeting the applicable, natural or colored, Association of
Plastic Recyclers HDPE model bale specification.
(h) The Agency, in consultation with the Organization and
material recovery facilities and drop-off facilities and
associations that represent material recovery facilities and
drop-off facilities, shall develop and publish a methodology
for how to determine the average amount of redeemable beverage
containers that were purchased in the State per ton of
material offered to the Organization.
(i) When the Organization pays the operators of the
material recovery facility and drop-off facility the

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appropriate portion of the redemption value per beverage
container, it may do so with an assumption that the beverage
containers sold to it have a breakdown of containers that are
24 ounces or less and more than 24 ounces equivalent to what
percentage of that container type that consumers redeemed in
the last calendar year and that were 24 ounces or less and more
than 24 ounces.
(j) The Organization shall become the owner of the
beverage containers for which it pays the amount under
paragraphs (f) and (g) and may sell the material to the buyer
of its choosing for revenue after first allowing a beverage
producer or a company in its beverage container supply chain
to purchase the material at a fair market rate.
(k) An operator of a material recovery facility or
drop-off facility shall pay for up to one independent audit
per calendar year on the quality and quantity of its material
upon request by the Organization and shall allow the
Organization to conduct 2 additional audits per calendar year
on the quality and quantity of its material upon request by the
Organization and at the Organization's expense.
(l) All thresholds in this Section tied to externally
referenced documents, such as the model bale specifications
from the Association of Plastic Recyclers and the Institute of
Scrap Recycling Industries, shall reflect the most current
version of the externally referenced documents, including any
updates made after the effective date of this Act.

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Section 50. Distributor and Importer Responsibility
Organization.
(a) All distributors and importers shall join as members
of a Distributor and Importer Responsibility Organization. A
distributor or importer operating in violation of this
requirement is subject to penalties described in Section 85.
The Organization must be established and operated as a
nonprofit organization or a cooperative corporation.
(b) Only one Organization may operate in the State. The
Organization may decide to operate jointly with similar
organizations. The Organization shall elect a governing Board
of Directors of the Organization composed of Organization
members. The Organization shall be led by an Executive
Director elected by the Board of Directors of the
Organization.
(c) The Organization shall charge a membership fee that
funds the Organization's costs of operation to meet the
requirements of this Act minus the unclaimed redemption
refunds and the revenue from the sale of the redeemed beverage
containers, both of which must stay with the Organization to
fund its operations to meet the requirements of this Act. The
Organization may develop other revenue sources. The
Organization shall charge membership fees that vary by
material type and that reflect:
(1) the cost of collecting, transporting, sorting, and

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processing each beverage container type, among other costs
that may vary by beverage container type;
(2) the monetary value of each beverage container
type; and
(3) the number of units of each beverage container
type that each member distributes or sells in the State.
(d) The Organization shall submit within 12 months of the
effective date of this Act and every 5 years thereafter a plan
to the Agency for approval that describes how the Organization
will meet its requirements under this Act over the next 5
years.
(e) The Agency must review and approve, deny, or request
additional information for a draft plan by the Organization by
no later than 120 days after its receipt date. The Agency must
post the draft plan on the Agency's website and allow public
comment for no less than 45 days before approving, denying, or
requesting additional information on the draft plan.
(f) If the Agency denies or requests additional
information regarding a draft plan, the Agency must provide
the Organization the reasons, in writing, why the plan is not
sufficient. The organization must submit a revised draft plan
to the Agency within 60 days of receipt of the Agency's action.
The Agency shall review and approve or disapprove of the
revised draft plan within 60 days of receiving it.
(g) The Organization may revise and submit a draft plan to
the Agency not more than twice. If, after the second revised

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plan is submitted, the Agency determines that the draft plan
does not meet the requirements of this Act, the Agency must
modify the draft plan as necessary for it to meet the
requirements of this Act and approve it.
(h) The Organization shall publish publicly on its
website:
(1) within 18 months after the effective date of this
Act, an Agency-approved initial plan for how the
Organization will meet its requirements under this Act
over the next 5 years, including the performance targets
specified in Section 55 and the minimum number of beverage
container processing mechanisms required in each county
under Section 20; and
(2) no later than every 5 years after publication of
the initial plan under paragraph (1), an updated plan on
how the Organization will continue to meet its
requirements under this Act, including the performance
targets specified in Section 55 and the minimum number of
beverage container processing mechanisms required in each
county under Section 20.
(i) The Organization shall pay:
(1) for any beverage container processing mechanism or
self-service kiosk that the Organization installs,
maintains, and operates at any location to meet or exceed:
(A) the performance targets under Section 55; or
(B) the redemption option requirements under

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Section 20 for each county;
(2) for any facilities in the State necessary to
efficiently aggregate, sort, and process the beverage
containers collected at redemption locations under this
Act;
(3) to upkeep a list and map on its website of all
redemption locations and the redemption options available
at each redemption location;
(4) by December 31 of each year, an annual installment
to the Agency according to the formula under Section 40,
but not to exceed $500,000 per year; the installment shall
fund the Agency's anticipated costs in the following year
to implement, administer, and enforce this Act, including
adopting rules under this Act;
(5) by December 31 of each year, reimbursement for
enforcement costs that may result in a total reimbursement
by the Organization to the Agency more than $500,000 per
year as long as the funded enforcement activities
identified violations of this Act and resulted in
penalties under this Act;
(6) the cost of the standard bags described under
subsection (f) of Section 20;
(7) the material recovery facility and drop-off
facility payments under Section 45;
(8) a survey in each even-numbered year of consumers
for whom refunds paid under this Section constitute a

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significant portion of their income to determine if their
needs are being met.
(j) If the standard bag the Organization sells to
consumers under subsection (f) of Section 20 is made of
plastic film, the Organization shall:
(1) ensure that the standard bag sold is composed of a
minimum of 50% recycled content; and
(2) demonstrate to the Agency that the plastic film
waste from the standard bags will be recycled in the best
commercially available manner.
(k) The Organization is not required to pay a redemption
refund under this Act for:
(1) any beverage container that visibly contains or is
visibly contaminated by a substance other than water,
residue of the beverage contained within the beverage
container as sold by a retailer to a consumer, or dust;
(2) any beverage container that is crushed, broken, or
damaged to the extent that the brand appearing on the
beverage container cannot be identified;
(3) any beverage container that the Organization has
reasonable grounds to believe was procured in another
state; or
(4) any beverage container for which the Organization
has reasonable grounds to believe a redemption refund has
already been issued under this Act or under any other
state's law, rule, or regulation.

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(l) The Organization may:
(1) use, or award grants using, moneys received or
generated under this Act for:
(A) collecting litter that includes beverage
containers; and
(B) improving education, outreach, or
infrastructure to enhance the recycling or reuse of
beverage containers;
(2) use moneys received or generated under this Act to
directly, or in partnership with a nongovernmental
organization, provide services to or enhance the
redemption experience of minority or low-income consumers
who redeem a beverage container; and
(3) use moneys generated under this Act to pay members
or support the management and activities of an advisory
committee established under Section 65.
Section 55. Targets.
(a) The Organization shall meet the following redemption
targets:
(1) beginning with the second full calendar year after
eligible beverage containers are sold in the State with
the applicable redemption refund value under Section 10,
the annual redemption rate from consumers to a beverage
container processing mechanism for all redeemable beverage
containers is at least 70%;

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(2) beginning with the fourth full calendar year after
all beverage containers are sold in the State with the
applicable redemption refund value under Section 10, the
annual redemption rate from consumers to a beverage
container processing mechanism for all redeemable beverage
containers is at least 75%; and
(3) beginning with the sixth full calendar year after
all beverage containers are sold in the State with the
applicable redemption refund value under Section 10, the
annual redemption rate from consumers to a beverage
container processing mechanism for all redeemable beverage
containers is at least 85%.
(b) The Organization shall meet the following recycling
rate targets through material consumers redeem through
beverage container processing mechanisms or through material
the Organization receives from drop-off facilities or material
recovery facilities:
(1) beginning with the second full calendar year after
eligible beverage containers are sold in the State with
the applicable redemption refund value under Section 10,
the annual recycling rate for all redeemable beverage
containers is at least 70%;
(2) beginning with the fourth full calendar year after
eligible beverage containers are sold in the State with
the applicable redemption refund value under Section 10,
the annual recycling rate for all redeemable beverage

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containers is at least 75%; and
(3) beginning with the sixth full calendar year after
all eligible beverage containers are sold in the State
with the applicable redemption refund value under Section
10, the annual recycling rate for all redeemable beverage
containers is at least 85%.
(c) At any point that a non-covered beverage container is
added to the system, the Agency may establish recycling rate
targets specific to the added beverage container or beverage
containers, and the added beverage container or beverage
containers may then not be considered in satisfying the
targets in subsection (b).
(d) If the Organization does not meet a performance rate
target required under subsections (a) through (c) in any
calendar year:
(1) it must submit to the Agency a revised product
stewardship plan no more than 365 days after the data
required under Section 60 has most recently been published
that showed a performance target required under
subsections (a) through (c) was not met, and the Agency
review of this revised plan must follow the same
guidelines as provided for the initial draft plan in
Section 50. The product stewardship plan shall detail the
reasons that the performance target was not met and any
action the Organization will take to meet the performance
target; and

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(2) the Agency shall assess a civil penalty against
the Organization for each such violation that is equal to
5 cents for each beverage container comprising the
difference between the number of beverage containers that
were redeemed or recycled and the total number of beverage
containers that, if redeemed or recycled, would have met
the applicable performance rate target.
(e) If the Organization does not meet all redemption and
recycling rate targets under subsections (a) through (c)
within 3 years after a product stewardship plan was submitted
to the Agency under subsection (d), the Agency shall:
(1) assess a civil penalty against the Organization
once per calendar year that is equal to 10 cents for each
beverage container comprising the difference between the
number of beverage containers that were redeemed and the
total number of beverage containers that, if redeemed,
would have met the performance targets;
(2) require the Organization to submit a revised
product stewardship plan within 365 days after the data
required under Section 60 has most recently been published
that showed a performance target required under
subsections (a) through (c) was not met within 3 years
after a product stewardship plan was submitted to the
Agency under subsection (d), and the Agency review of this
revised plan must follow the same guidelines as provided
for the initial draft plan in Section 50;

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(3) require the Organization to hire a third party to
evaluate whether the minimum number of beverage container
processing mechanisms required in each county in
accordance with Section 20 is sufficient to meet the
performance targets; and
(4) if the third party evaluation under paragraph (3)
determines the minimum number of beverage container
processing mechanisms is not sufficient, the third party
must in its analysis provide a new minimum number of
beverage container processing mechanisms per county that
will be sufficient to meet the performance targets, and
the Organization shall be responsible for meeting the
third-party-determined minimum number in each county.
(f) If the Organization does not, within 5 years after a
product stewardship plan was submitted to the Agency under
subsection (d), meet all recycling and redemption rate targets
required under subsections (a) through (c), then:
(1) the Organization shall detail on the
Organization's website why a new Executive Director of the
Organization is not necessary if, at the end of the 5-year
period, the same person has acted as Executive Director of
the Organization for more than 365 days prior to the end of
the relevant 5-year period;
(2) the Agency may require certain changes to the
product stewardship plan; and
(3) the Agency shall assess against the Organization a

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civil penalty once per calendar year equal to 15 cents for
each beverage container comprising the difference between
the number of beverage containers that were redeemed and
the total number of beverage containers that, if redeemed,
would have met the performance target.
(g) Notwithstanding subsections (d) through (f):
(1) the penalty for each performance target required
in subsection (d) is not in addition to the penalties
authorized in subsections (e) and (f);
(2) the Agency may, beyond the amounts required in
subsections (e) and (f), for the violations specified in
subsections (e) and (f) assess once per calendar year an
additional annual penalty of up to $50,000 if the
Organization does not in a particular year eliminate at
least 25% of the gap in the previous year from achieving
any performance rate target it failed to achieve; and
(3) the Agency shall retroactively assess penalties
against the Organization if the verification in Section 60
finds that the Organization performed worse than initially
stated in its public disclosures, and these retroactive
penalties shall not result in the Organization paying in
total more than it would have paid in penalties with the
verified performance levels.
Section 60. Reporting.
(a) On or before July 1 of each calendar year, beginning

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July 1 of the first full calendar year after covered beverage
containers have a redemption refund value under this Act, the
Organization shall submit to the Agency and make publicly
available on its website:
(1) the number of beverage containers sold in the
State by material type, as well as, for each quarter of the
year covered by the report and the quarters of each prior
year for at least the preceding 5 years, to the extent data
is available, the proportion of beverage containers sold
in the State that are capable of being recycled, refilled,
or reused;
(2) for each quarter of the year covered by the report
and the quarters of each prior year for at least the
preceding 5 years, and to the extent data is available,
the percentage of the total amount of beverage containers
sold in the State that each beverage container material
type represents;
(3) the percentage of the total amount of fees charged
to members that each beverage container material type
represents for each quarter of the year covered by the
report and the quarters of each prior year for at least the
preceding 5 years, to the extent data is available;
(4) the number of beverage containers, by material
type, redeemed for each quarter of the year covered by the
report and the quarter of each prior year for at least the
preceding 5 years, to the extent data is available;

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(5) the percentage of beverage containers redeemed
that were recycled, by material type, and that were
reused, by material type, for each quarter of the report
year and for the quarters of each of at least the last 5
prior years, to the extent data is available;
(6) the number of beverage containers redeemed at each
beverage container processing mechanism provided by the
Organization under this Act;
(7) the buyers by material type to whom the
Organization sold beverage container materials;
(8) the end-product each beverage container type
became or likely became;
(9) the percentage of the total amount of moneys
redeemed for each beverage container material type;
(10) each redemption location in the State;
(11) the means of redemption at each redemption
location in the State;
(12) the total expenses of the Organization;
(13) the total revenues of the Organization;
(14) the total reserves of the Organization;
(15) the actual or estimated cost to the Organization
per beverage container redeemed;
(16) the number of redemption locations that provide
services or an enhanced redemption experience for minority
or low-income consumers;
(17) aggregated Organization employee demographic

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information, including information that can legally be
disclosed and that provides insight into the
Organization's performance on diversity, equity, and
inclusion;
(18) the number of consumer complaints per month, by
redemption location, during the previous calendar year and
each prior year for at least the preceding 5 years, to the
extent data is available;
(19) the total number of individual consumers per
month who filed complaints, by redemption location, during
the previous calendar year and each prior year for at
least the preceding 5 years, to the extent data is
available;
(20) a list of all members, their brands of beverage
containers, and a breakdown of each member's beverage
container packaging mix by beverage container type during
the previous calendar year and each prior year for at
least the preceding 5 years, to the extent data is
available;
(21) the buyers of the plastic film waste, if any,
generated from the standard bag sold by the Organization
to consumers for redemption and how buyers may recycle the
plastic film waste;
(22) the number of individuals and entities registered
to receive electronic deposits of redemption refunds under
this Act;

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(23) the results of the survey of consumers for whom
refunds paid under this Section constitute a significant
portion of their income; and
(24) the name of each member of the Organization's
Board of Directors.
(b) The Organization may rely on reporting by members for
information used to comply with the reporting requirements of
this Act, but shall note in its annual report which of the
metrics described in subsection (a) are based on member
reporting.
(c) The Organization shall hire by June 1 of even-numbered
years an independent third-party organization to verify within
6 months of its hiring the previous 2 calendar years of data
publicly disclosed under subsection (a).
(d) Once per calendar year, the Agency may require
verification of information disclosed during the previous
calendar year by the Organization under this Act. The
verification shall:
(1) occur only after being notified by the
Organization on or before August 1 of that calendar year
that the Agency is requiring independent third-party
verification;
(2) be performed by an independent third party;
(3) be limited in scope to information that:
(A) the Organization is required to report under
this Act;

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(B) the Agency specifies for third-party
verification under this subsection; and
(C) appeared, or should have appeared, in the
Organization's annual report for the previous calendar
year; and
(4) be conducted on or before December 31 of the
calendar year in which it is required by the Agency.
(e) With the data verification activities under
subsections (c) and (d), the Organization shall:
(1) pay the full cost of the third-party verification;
and
(2) provide the independent third party with full
access to the underlying data supporting the disclosure in
subsection (a)that is being verified.
(f) The Organization must establish safeguards to ensure
members do not have access to information regarding:
(1) the price paid by any individual buyer for
beverage container material sold by the Organization under
this Act; and
(2) the amount of each beverage container material
sold by the Organization to each individual buyer.
(g) On or before the last day of February of each calendar
year, each member of the Organization must report to the
Organization all data necessary to satisfy the disclosure
requirements of this Section. The Organization shall ensure
that data provided by members under this subsection is

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confidential.
Section 65. Operations Advisory Committee; Equity and
Access Advisory Committee.
(a) The Organization shall establish an Operations
Advisory Committee that represents a range of interested and
engaged persons and entities, including, at a minimum, one of
each of the following:
(1) a beverage container manufacturer or a beverage
container manufacturer's trade association that rotates
between the leading beverage container types;
(2) a beverage producer or a beverage producer's trade
association;
(3) a unit of local government or group of units of
local government;
(4) the State;
(5) an environmental nonprofit organization;
(6) an entity that buys beverage containers from, or
recycles them for, the Organization; and
(7) a retailer or a retailer's trade association.
(b) The Operations Advisory Committee may:
(1) provide written or oral comments directly to the
Board of Directors and the Executive Director no more than
4 times a year; and
(2) every even-numbered calendar year, submit to the
Organization a written report that the Organization must

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publish on its website upon request by the Operations
Advisory Committee and that contains:
(A) the Operations Advisory Committee's feedback
on the operation of the Organization; and
(B) the Operations Advisory Committee's feedback
on the redemption refund system established under this
Act.
(c) The Organization shall establish an Equity and Access
Advisory Committee that represents persons who can help ensure
the Organization's operations appropriately consider the
diverse needs and cultures of people who redeem beverage
containers, including, at a minimum, one of each of the
following:
(1) an advocate for homeless persons;
(2) a governmental social services office;
(3) a nongovernmental organization that advocates on
behalf of one or more cultural groups;
(4) a nongovernmental organization with a focus on
environmental justice; and
(5) a specialist in diversity and inclusion.
(d) The Equity and Access Advisory Committee may:
(1) provide written or oral comments directly to the
Board of Directors and the Executive Director no more than
4 times a year; and
(2) every even-numbered calendar year, submit to the
Organization a written report that the Organization must

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publish on its website upon request by the Equity and
Access Advisory Committee and that contains:
(A) the Equity and Access Advisory Committee's
feedback on whether the Organization is appropriately
considering the diverse needs and cultures of people
who redeem beverage containers under this Act; and
(B) the Equity and Access Advisory Committee's
suggestions on how the Organization can improve in
terms of equity and access.
Section 70. Reuse study.
(a) The Agency shall conduct a study on the infrastructure
that is needed in the State to support a robust system for
reusable beverage containers and on any changes that would be
required in order to ensure effective integration of reusable
beverage containers in the deposit return system.
(b) The study required in subsection (a) shall be
published on the Agency's website and filed with the General
Assembly no later than 2 years after the effective date of this
Act.
(c) The cost of the study shall be included in a
reimbursement request to the Organization under Section 80.
Section 75. Beverage container grant program.
(a) The Organization shall transfer 5% of the revenue from
unclaimed redemption refunds in the previous calendar year to

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the Agency by July 1 of each calendar year, starting with the
first full calendar year after one or more beverage container
types is sold with a redemption refund value under this Act, to
fund a beverage container grant program.
(b) The Agency, with the money available in the beverage
container grant program, shall annually fund, through a
competitive grant process, education, infrastructure, or
litter clean-up activities that increase the reuse or
recycling of beverage containers or reduce the litter from
beverage containers in the State.
(c) The Agency shall not give grants such that any one
beverage container type receives more than 25% of the benefits
from the activities funded.
(d) The following entities are eligible for a grant under
the beverage container grant program:
(1) a school or an institution of higher education;
(2) a nonprofit organization;
(3) a county or municipal corporation;
(4) a federally recognized tribe;
(5) a for-profit organization; and
(6) a public-private partnership.
(e) The cost to administer the beverage container grant
program shall be included in a reimbursement request to the
Organization under Section 80.
Section 80. Reimbursement to the Agency.

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(a) The Organization shall reimburse the Agency for costs
incurred by the Agency under this Act, not to exceed $500,000
per year, in accordance with paragraph (4) of subsection (i)
of Section 50.
(b) The Organization shall reimburse the Agency for
enforcement costs incurred by the Agency under this Act, in
accordance with paragraph (5) of subsection (i) of Section 50,
that may take the total amount reimbursed by the Organization
to the Agency beyond $500,000 per year as long as the funded
enforcement activities identified violations of this Act and
resulted in penalties under this Act.
Section 85. Enforcement.
(a) In addition to any other applicable civil penalties or
criminal fines, the Agency may impose a civil penalty for each
day that a violation of this Act, as may be defined by
subsequent rulemaking, occurs that is:
(1) $100 for the first violation of any requirement
under this Act; and
(2) not more than $1,000 for each subsequent violation
of that requirement.
(b) A person who takes any of the following actions with
the intent to knowingly defraud is subject to subsection (c),
along with any other federal, State, or local enforcement
action arising from the action:
(1) redeeming out-of-state beverage containers,

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rejected beverage containers, line defects, or beverage
containers that have already been redeemed;
(2) seeking a redemption refund under this Act by
returning an already-redeemed beverage container at a
redemption location;
(3) bringing out-of-state beverage containers,
rejected beverage containers, or line defects to the State
marketplace for redemption; or
(4) selling beverage containers not distributed or
imported into the State by a member of the Organization.
(c) A violation of subsection (b) resulting in financial
gain by the violator shall subject the violator to the
following:
(1) If the amount of moneys gained is equal to or less
than $950, the violator is subject to:
(A) imprisonment in a county jail for not more
than 6 months;
(B) a criminal fine not exceeding $1,000; or
(C) both the fine and imprisonment described in
subparagraphs (A) and (B).
(2) If the amount of moneys gained is more than $950,
the violator is subject to:
(A) imprisonment in a county jail for not more
than one year;
(B) a criminal fine not exceeding $10,000; or
(C) both the fine and imprisonment described in

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subparagraphs (A) and (B).
(d) The Agency may bring a civil action to enjoin the
distribution, importation, or sale in the State of a beverage
container in violation of this Act.
(e) The Agency may assess a penalty of up to $30,000 in a
calendar year against the Organization for each redemption
location at which the Organization receives more than an
average of 100 individuals' complaints per month, according to
the public reporting required under Section 60.
(f) After notification from the Agency of noncompliance
with this Act and a 60-day cure period, the Agency may
administratively impose a civil penalty per day to any
distributor or importer who fails to participate as an
Organization member as required under Section 10. The civil
penalty per day shall be the greater of $10,000 or 10 cents per
beverage container sold by the distributor or importer in the
State while not a member. Any distributor or importer who
incurs a penalty under this Section may appeal the penalty to
the Agency.
(g) All penalties the State recovers under this Act:
(1) up to the first $5,000,000 per calendar year,
shall only be used to administer this Act; and
(2) beyond the first $5,000,000 per calendar year,
shall only be put toward the beverage container grant
program created in Section 75.

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