Minnesota 2025-2026 Regular Session

Minnesota House Bill HF420 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to solid waste; establishing program for beverage container recycling
3	3	1.3 refunds; providing civil and criminal penalties; requiring reports; appropriating
4	4	1.4 money; proposing coding for new law in Minnesota Statutes, chapter 115A.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [115A.566] BEVERAGE CONTAINER RECYCLING REFUNDS;
7	7	1.7DEFINITIONS.
8	8	1.8 For purposes of sections 115A.566 to 115A.5665, the following terms have the meanings
9	9	1.9given:
10	10	1.10 (1) "applicable refund value" means the value established under section 115A.5661,
11	11	1.11subdivision 1;
12	12	1.12 (2) "beverage" means a drinkable liquid intended for human oral consumption. Beverage
13	13	1.13does not include:
14	14	1.14 (i) a drug regulated under the federal Food, Drug, and Cosmetic Act, United States Code,
15	15	1.15title 21, section 301 et seq.;
16	16	1.16 (ii) infant formula; or
17	17	1.17 (iii) a meal replacement liquid;
18	18	1.18 (3) "beverage container" means a prepackaged container for beverages, including a
19	19	1.19carton; a pouch; an aseptic package, such as a juice box; or other container:
20	20	1.20 (i) made of any material, including glass, plastic, metal, or multimaterial;
21	21	1Section 1.
22	22	REVISOR CKM/DG 25-0171512/26/24
23	23	State of Minnesota
24	24	This Document can be made available
25	25	in alternative formats upon request
26	26	HOUSE OF REPRESENTATIVES
27	27	H. F. No. 420
28	28	NINETY-FOURTH SESSION
29	29	Authored by Jordan02/13/2025
30	30	The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy 2.1 (ii) designed to be used once before being recycled or designed to be reused for multiple
31	31	2.2cycles before being recycled; and
32	32	2.3 (iii) with a volume of no more than one gallon;
33	33	2.4 (4) "beverage container processing mechanism" means any method, manual or
34	34	2.5technological, that properly identifies and processes empty beverage containers that are
35	35	2.6eligible for redemption;
36	36	2.7 (5) "beverage producer" means a person bottling, canning, or otherwise filling beverage
37	37	2.8containers for sale to distributors, importers, or retailers;
38	38	2.9 (6) "consumer" means an individual in the state who purchases a beverage in a beverage
39	39	2.10container for use or consumption;
40	40	2.11 (7) "distributor" means a person who sells beverages in beverage containers to a retailer
41	41	2.12in the state, including a beverage producer who engages in sales;
42	42	2.13 (8) "distributor and importer responsibility organization" or "organization" means the
43	43	2.14distributor and importer responsibility organization established under section 115A.5663;
44	44	2.15 (9) "drop-off facility" means a specific area where individuals may bring household
45	45	2.16recyclable materials to place into material-specific receptacles;
46	46	2.17 (10) "importer" means a retailer or beverage producer who directly imports beverage
47	47	2.18containers into the state;
48	48	2.19 (11) "line breakage" means a beverage container that becomes defective or damaged
49	49	2.20during manufacturing and that is not meant for sale and not eligible for redemption;
50	50	2.21 (12) "material recovery facility" means a facility that receives, separates, and sells or
51	51	2.22otherwise distributes postconsumer materials for recycling;
52	52	2.23 (13) "member" means a distributor or importer that joins the organization and pays the
53	53	2.24applicable fees;
54	54	2.25 (14) "retailer" means a person in the state that sells beverages in beverage containers to
55	55	2.26a consumer; and
56	56	2.27 (15) "store" means an individual location where a retailer sells beverage containers.
57	57	2.28 Sec. 2. [115A.5661] BEVERAGE CONTAINER DEPOSIT PROGRAM.
58	58	2.29 Subdivision 1.Applicable refund value.(a) Every beverage container sold or offered
59	59	2.30for sale in the state has the following refund value:
60	60	2Sec. 2.
61	61	REVISOR CKM/DG 25-0171512/26/24 3.1 (1) ten cents for beverage containers of 24 fluid ounces or less; and
62	62	3.2 (2) 15 cents for beverage containers of more than 24 fluid ounces.
63	63	3.3 (b) The commissioner may change the refund value:
64	64	3.4 (1) by deciding, in consultation with the distributor and importer responsibility
65	65	3.5organization, to change one or both refund amounts in a material-neutral manner; or
66	66	3.6 (2) upon receiving a request from the organization for a change in the refund amount
67	67	3.7and determining that a change in one or both refund amounts in a material-neutral way is
68	68	3.8appropriate.
69	69	3.9 (c) The commissioner must not change the refund value under paragraph (b), clause (1),
70	70	3.10more than once every ten years.
71	71	3.11 (d) The commissioner must not change the refund value under paragraph (b), clause (2),
72	72	3.12more than once every five years.
73	73	3.13 (e) Before changing the refund value under paragraph (b), the commissioner must publish
74	74	3.14a notice in the State Register and allow a 60-day comment period.
75	75	3.15 (f) Notwithstanding paragraph (a), if the organization's publicly reported redemption
76	76	3.16rate required under section 115A.5663, subdivision 6, shows that the redemption rate does
77	77	3.17not reach 85 percent for three years in a row after being required to reach an 85 percent
78	78	3.18redemption target under section 115A.5663, subdivision 5, then every beverage container
79	79	3.19sold or offered for sale in the state has the following refund value:
80	80	3.20 (1) 15 cents for beverage containers of 24 fluid ounces or less; and
81	81	3.21 (2) 20 cents for beverage containers of more than 24 fluid ounces.
82	82	3.22 (g) The organization must use any refunds not claimed by the consumer for the
83	83	3.23organization's administrative costs and duties under sections 115A.566 to 115A.5665.
84	84	3.24 Subd. 2.Disposition of redeemed containers.When a consumer redeems a beverage
85	85	3.25container for the applicable refund value, the organization becomes the owner of the beverage
86	86	3.26container and may:
87	87	3.27 (1) sell it to the buyer of the organization's choosing; or
88	88	3.28 (2) on its own or via a third party, process the reusable beverage container for refill.
89	89	3.29 Subd. 3.Retailer duties; methods of redeeming.(a) A retailer has no duties under
90	90	3.30paragraphs (b) to (d) until the organization requests permission to install, maintain, and
91	91	3.31service a beverage container processing mechanism inside or outside a store of the retailer.
92	92	3Sec. 2.
93	93	REVISOR CKM/DG 25-0171512/26/24 4.1 (b) For a store that is equal to or greater than 5,000 square feet, the retailer that operates
94	94	4.2the store must:
95	95	4.3 (1) if the store has 30 or more parking spots for its customers, permit the organization
96	96	4.4to:
97	97	4.5 (i) collect bags of redeemable beverage containers in a space of the retailer's choosing
98	98	4.6in the store's parking lot; and
99	99	4.7 (ii) install, maintain, and service at least one other beverage container processing
100	100	4.8mechanism inside or outside the store on property the retailer owns or leases;
101	101	4.9 (2) if the store has fewer than 30 parking spots for its customers, permit the organization
102	102	4.10to install, service, and operate at least two beverage container processing mechanisms inside
103	103	4.11or outside the store on property the retailer owns or leases; or
104	104	4.12 (3) accept beverage containers at the store and pay the applicable refund value for up to
105	105	4.13250 beverage containers per person per day if the retailer does not, within 90 days of
106	106	4.14receiving a written request from the organization, notify the organization that the retailer
107	107	4.15will comply with clause (1) or (2) on property the retailer owns or leases.
108	108	4.16 (c) For a store that is more than 1,000 square feet and less than 5,000 square feet, the
109	109	4.17retailer that operates the store must:
110	110	4.18 (1) if the store has 30 or more parking spots for its customers, permit the organization
111	111	4.19to:
112	112	4.20 (i) collect bags of redeemable beverage containers in a space of the retailer's choosing
113	113	4.21in the parking lot for the store; and
114	114	4.22 (ii) install, maintain, and service at least one other beverage container processing
115	115	4.23mechanism inside or outside the store on property the retailer owns or leases; or
116	116	4.24 (2) if the store has fewer than 30 parking spots for its customers, permit the organization
117	117	4.25to install, service, and operate at least one beverage container processing mechanism inside
118	118	4.26or outside the store on property the retailer owns or leases; or
119	119	4.27 (3) accept beverage containers at the store and pay the applicable refund value for up to
120	120	4.2850 beverage containers per person per day if the retailer does not, within 90 days of receiving
121	121	4.29a written request from the organization, notify the organization that the retailer will comply
122	122	4.30with clause (1) or (2) on property the retailer owns or leases.
123	123	4.31 (d) For a store that is 1,000 square feet or less and in which more than 1,000,000 beverage
124	124	4.32containers per year are sold, the retailer that operates the store must:
125	125	4Sec. 2.
126	126	REVISOR CKM/DG 25-0171512/26/24 5.1 (1) if the store has 30 or more parking spots for its customers, permit the organization
127	127	5.2to collect bags of redeemable beverage containers in a space of the retailer's choosing in
128	128	5.3the parking lot for the store;
129	129	5.4 (2) if the store has fewer than 30 parking spots for its customers, permit the organization
130	130	5.5to install, service, and operate at least one beverage container processing mechanism inside
131	131	5.6or outside the store on property the retailer owns or leases; or
132	132	5.7 (3) accept beverage containers at the store and pay the applicable refund value for up to
133	133	5.825 beverage containers per person per day if the retailer does not, within 90 days of receiving
134	134	5.9a written request from the organization, notify the organization that the retailer will comply
135	135	5.10with clause (1) or (2) on property the retailer owns or leases.
136	136	5.11 (e) A retailer must comply with paragraph (f) at a store that is 1,000 square feet or less
137	137	5.12and in which fewer than 1,000,000 beverage containers per year are sold.
138	138	5.13 (f) Notwithstanding paragraphs (b) to (d), a retailer, upon request by the organization
139	139	5.14regarding a particular store of the retailer, must:
140	140	5.15 (1) offer for sale at that particular store of the retailer the standard bags that the
141	141	5.16organization deems necessary to operate a bag-drop program;
142	142	5.17 (2) permit the organization to install, service, and operate at least one beverage container
143	143	5.18processing mechanism in a space of the retailer's choosing inside or outside of that particular
144	144	5.19store of the retailer; and
145	145	5.20 (3) permit the organization to install, service, and operate in a space of the retailer's
146	146	5.21choosing inside or outside that particular store of the retailer a self-service kiosk that allows
147	147	5.22for printing redemption vouchers.
148	148	5.23 (g) A retailer is exempt from this subdivision at a store the retailer operates that:
149	149	5.24 (1) primarily prepares food for sale; or
150	150	5.25 (2) sells beverage containers to consumers only through stand-alone vending machines
151	151	5.26or similar means.
152	152	5.27 (h) Notwithstanding paragraphs (b) to (g), for zip codes in the state with a population
153	153	5.28density greater than 30,000 residents per square mile, the organization must install, service,
154	154	5.29and operate enough beverage container processing mechanisms to ensure that there is one
155	155	5.30beverage container processing mechanism for every 500 residents.
156	156	5.31 (i) Any facilities that the organization establishes in the state to aggregate, sort, and
157	157	5.32process the material collected at redemption locations:
158	158	5Sec. 2.
159	159	REVISOR CKM/DG 25-0171512/26/24 6.1 (1) must accept, according to a reasonable process the organization may establish,
160	160	6.2beverage containers that are eligible for redemption and that are submitted in the standard
161	161	6.3bag from entities established and operated as described in section 501(c)(3) of the Internal
162	162	6.4Revenue Code or established and operated as a nonprofit organization under the tax law of
163	163	6.5any district, state, or territory; and
164	164	6.6 (2) may provide entities under clause (1) a premium as determined by the organization.
165	165	6.7 (j) The methods of redemption required under this section must be available to the public
166	166	6.8for not less than ten hours each day except for a federal or local holiday. This paragraph
167	167	6.9does not apply to facilities the organization established to aggregate, sort, and process
168	168	6.10material.
169	169	6.11 (k) The organization must provide information according to clauses (1) to (3) on how
170	170	6.12consumers can alert the organization to problems at beverage container processing
171	171	6.13mechanisms the organization operates:
172	172	6.14 (1) on the organization's website;
173	173	6.15 (2) on clearly visible signs, measuring at least five feet by five feet, at the bag-drop
174	174	6.16redemption locations described in this section; and
175	175	6.17 (3) on clearly visible signs, measuring at least two feet by two feet, on or within five
176	176	6.18feet of beverage container processing mechanisms that are not bag-drop redemption locations.
177	177	6.19 (l) The organization may create reasonable terms and conditions for using the bag-drop
178	178	6.20program and beverage container processing mechanisms that the organization operates for
179	179	6.21consumers to redeem beverage containers.
180	180	6.22 Subd. 4.Nonredeemable material.The organization is not required to pay refunds on:
181	181	6.23 (1) a beverage container visibly containing or contaminated by a substance other than
182	182	6.24water, residue of the original contents, or ordinary dust;
183	183	6.25 (2) a beverage container that is:
184	184	6.26 (i) crushed or broken; or
185	185	6.27 (ii) damaged to the extent that the brand appearing on the container cannot be identified;
186	186	6.28 (3) a beverage container that the organization has reasonable grounds to believe was
187	187	6.29bought in another state; or
188	188	6.30 (4) a beverage container for which the organization has reasonable grounds to believe
189	189	6.31a refund has already been given.
190	190	6Sec. 2.
191	191	REVISOR CKM/DG 25-0171512/26/24 7.1 Subd. 5.Labeling.(a) A beverage producer, importer, or distributor of a beverage
192	192	7.2container that is sold in the state must clearly display on the top or side of the beverage
193	193	7.3container the abbreviation "RV," which indicates the container has a refund value.
194	194	7.4 (b) The organization may require that any beverage producer, importer, or distributor
195	195	7.5of a beverage container that is sold in the state clearly display on the top or side of the
196	196	7.6beverage container the abbreviation of the state and the applicable refund value.
197	197	7.7 (c) A beverage producer, importer, or distributor of a beverage container that is sold in
198	198	7.8the state may include a barcode or unique code verification on the beverage container to
199	199	7.9allow for automated identification.
200	200	7.10 Subd. 6.Timing.(a) All beverage containers that are made of 90 percent or more
201	201	7.11aluminum, glass, high density polyethylene plastic, or polyethylene terephthalate and sold
202	202	7.12in the state must have the applicable refund value no later than two years after the effective
203	203	7.13date of this section. All other beverage containers that are sold in the state must have the
204	204	7.14applicable refund value no later than three years after the effective date of this section.
205	205	7.15 (b) The commissioner may extend the deadlines under paragraph (a) for up to an
206	206	7.16additional 365 days.
207	207	7.17 Subd. 7.Drop-off facilities and material recovery facilities; reporting data.(a) The
208	208	7.18operator of a material recovery facility or drop-off facility operating in the state, or outside
209	209	7.19the state where the majority of the material the facility processes originates in Minnesota,
210	210	7.20may annually submit the following information to the organization:
211	211	7.21 (1) the number of tons of residential recyclable material the facility received for
212	212	7.22processing in the previous calendar year; and
213	213	7.23 (2) an estimate of the number of tons under clause (1) that were received from households
214	214	7.24in this state.
215	215	7.25 (b) The optional data under paragraph (a) must be submitted by April 1 for data from
216	216	7.26the previous full calendar year.
217	217	7.27 Subd. 8.Prohibitions.(a) It is unlawful to distribute or sell beverage containers in the
218	218	7.28state or import beverage containers in or into the state except in compliance with this section.
219	219	7.29 (b) It is unlawful to redeem a beverage container in the state that was not sold to a
220	220	7.30consumer in the state.
221	221	7Sec. 2.
222	222	REVISOR CKM/DG 25-0171512/26/24 8.1 Subd. 9.Commissioner's report.By April 1 each odd-numbered year, the commissioner
223	223	8.2must estimate and report to the organization the cost to administer and enforce sections
224	224	8.3115A.566 to 115A.5665 for the following two fiscal years after:
225	225	8.4 (1) subtracting the amount that the commissioner collected from penalties assessed under
226	226	8.5section 115A.5665 and that will be used to administer and enforce sections 115A.566 to
227	227	8.6115A.5665 in the next two fiscal years; and
228	228	8.7 (2) adding any costs to administer and enforce sections 115A.566 to 115A.5665 that
229	229	8.8were not covered by the estimated annual cost from the previous two fiscal years.
230	230	8.9 Sec. 3. [115A.5663] DISTRIBUTOR AND IMPORTER RESPONSIBILITY
231	231	8.10ORGANIZATION.
232	232	8.11 Subdivision 1.Formation.The distributor and importer responsibility organization must
233	233	8.12be established and operated as a nonprofit or cooperative corporation. Only one producer
234	234	8.13responsibility organization is permitted to operate in the state. The organization may decide
235	235	8.14to operate jointly with organizations in one or more other states.
236	236	8.15 Subd. 2.Members; penalty; fees.(a) All distributors and importers of a beverage in or
237	237	8.16into the state must join the organization as members. A distributor or importer that operates
238	238	8.17in violation of this subdivision is subject to penalties under section 115A.5665.
239	239	8.18 (b) The organization must charge a fee to members. The fee must be established in an
240	240	8.19amount that, together with unclaimed refunds and any other revenue sources that the
241	241	8.20organization may develop and that are not refunded under paragraph (d), covers the
242	242	8.21organization's cost of operations.
243	243	8.22 (c) The organization must charge member fees that vary by material type reflecting:
244	244	8.23 (1) the cost of collecting, sorting, and processing each beverage container type; and
245	245	8.24 (2) the number of units of each beverage container type that the member distributes or
246	246	8.25sells in the state.
247	247	8.26 (d) The organization must:
248	248	8.27 (1) refund to members the revenue generated from selling the scrap of each beverage
249	249	8.28container type based on the percentage of each beverage container type that a member
250	250	8.29distributes or sells in the state; or
251	251	8.30 (2) if refunds under clause (1) are not legally permitted, credit each member against the
252	252	8.31fee charged under paragraph (c) the amount of the applicable refund under clause (1).
253	253	8Sec. 3.
254	254	REVISOR CKM/DG 25-0171512/26/24 9.1 Subd. 3.Duties; authorities.(a) The organization must publish on its website:
255	255	9.2 (1) within 18 months after the effective date of this section, an initial plan for how the
256	256	9.3organization will, over the next five years, meet the requirements of sections 115A.566 to
257	257	9.4115A.5665, including the performance targets under subdivision 5;
258	258	9.5 (2) an updated plan, at least every five years after the initial plan is published, for how
259	259	9.6the organization will continue to meet the requirements of sections 115A.566 to 115A.5665,
260	260	9.7including the performance targets under subdivision 5; and
261	261	9.8 (3) a list and map of all redemption locations and what redemption options are available
262	262	9.9at each location.
263	263	9.10 (b) The organization must pay for:
264	264	9.11 (1) any beverage container processing mechanism or self-service kiosk that the
265	265	9.12organization installs, services, and operates:
266	266	9.13 (i) with a retailer's permission under section 115A.5661, subdivision 3, or at any other
267	267	9.14location;
268	268	9.15 (ii) to meet or exceed a performance target under subdivision 5; or
269	269	9.16 (iii) to meet or exceed the per capita requirement under section 115A.5661, subdivision
270	270	9.173, paragraph (g);
271	271	9.18 (2) any facilities in the state necessary to efficiently aggregate, sort, and process the
272	272	9.19material collected at redemption locations;
273	273	9.20 (3) a credit to consumers for the cost of the bags that are processed at the organization's
274	274	9.21bag-drop locations; and
275	275	9.22 (4) by July 1 of each calendar year, starting the first full year and ending the fifth full
276	276	9.23year after one or more beverage container types is sold with the applicable refund value, an
277	277	9.24annual payment directly to each material recovery facility and drop-off facility operator
278	278	9.25that submits data according to section 115A.5661, subdivision 7, that:
279	279	9.26 (i) equals a pro rata portion of ten percent of the scrap value of the material the
280	280	9.27organization sold in the preceding calendar year; and
281	281	9.28 (ii) is based on the data submitted by the material recovery facility and drop-off facility
282	282	9.29operators under section 115A.5661, subdivision 7.
283	283	9.30 (c) The organization may use money generated under this section and section 115A.5661
284	284	9.31or other sources of revenue to:
285	285	9Sec. 3.
286	286	REVISOR CKM/DG 25-0171512/26/24 10.1 (1) give grants for litter cleanup and for education and outreach on recycling beverage
287	287	10.2containers;
288	288	10.3 (2) directly or in partnership with a nongovernmental organization provide services to
289	289	10.4or enhance the redemption experience of diverse or low-income consumers redeeming
290	290	10.5beverage containers; and
291	291	10.6 (3) pay advisory committee members under subdivision 7 or pay for the administration
292	292	10.7and activities of the advisory committee.
293	293	10.8 (d) To the extent allowed under law, the organization may refund money to organization
294	294	10.9members in a fiscal year in which the organization's revenues exceed the organization's
295	295	10.10costs under this section by more than ten percent. Money refunded to members must not
296	296	10.11cause revenue to go below 110 percent of the organization's costs.
297	297	10.12 (e) The organization must use refunds not claimed by the consumer to support the
298	298	10.13organization's administrative costs and to perform the duties required under this section.
299	299	10.14 Subd. 4.Bag requirements.If the standard bags sold at retailers for the bag-drop program
300	300	10.15are made of plastic film, the organization must:
301	301	10.16 (1) ensure that the bags have a minimum of 50 percent recycled content; and
302	302	10.17 (2) demonstrate, upon request of the commissioner, that the waste film from the bags is
303	303	10.18being recycled in the best commercially available manner.
304	304	10.19 Subd. 5.Performance targets.(a) The organization must meet the following performance
305	305	10.20targets:
306	306	10.21 (1) beginning two years after all beverage containers are sold in the state with the
307	307	10.22applicable refund value, at least 70 percent annual redemption for all beverage containers;
308	308	10.23 (2) beginning four years after all beverage containers are sold in the state with the
309	309	10.24applicable refund value, at least 75 percent annual redemption for all beverage containers;
310	310	10.25 (3) beginning six years after all beverage containers are sold in the state with the
311	311	10.26applicable refund value, at least 85 percent annual redemption for all beverage containers;
312	312	10.27and
313	313	10.28 (4) beginning eight years after all beverage containers are sold in the state with the
314	314	10.29applicable refund value, at least 90 percent annually of all beverage containers are redeemed
315	315	10.30under sections 115A.566 to 115A.5665 or recycled through a curbside recycling program.
316	316	10.31 (b) If the organization does not meet an applicable performance target under paragraph
317	317	10.32(a), the organization must submit a product stewardship plan to the commissioner. The plan
318	318	10Sec. 3.
319	319	REVISOR CKM/DG 25-0171512/26/24 11.1must be submitted to the commissioner no more than 365 days after publication of the data
320	320	11.2required under subdivision 6 shows that the applicable performance target in paragraph (a)
321	321	11.3was not met. The plan must detail the actions the organization will take to meet the
322	322	11.4performance targets.
323	323	11.5 (c) If the applicable performance targets under paragraph (a) have not been met in each
324	324	11.6of the three years after the organization submitted a product stewardship plan under paragraph
325	325	11.7(b), then the commissioner may:
326	326	11.8 (1) fine the organization once per calendar year in an amount equal to the difference
327	327	11.9between the amount of redeemed beverage containers and the amount of beverage containers
328	328	11.10that should have been redeemed under the applicable performance target, multiplied by up
329	329	11.11to ten cents per beverage container; and
330	330	11.12 (2) require the organization to submit a revised product stewardship plan.
331	331	11.13 (d) If the performance targets under paragraph (a) have not been met in each of the five
332	332	11.14years after the organization submitted a product stewardship plan under paragraph (b), then:
333	333	11.15 (1) if the organization's director has held office for more than 365 days, the organization
334	334	11.16must explain on its website why a new director is not necessary; and
335	335	11.17 (2) the commissioner may fine the organization once per calendar year in an amount
336	336	11.18equal to the difference between the amount of redeemed beverage containers and the amount
337	337	11.19of beverage containers that should have been redeemed under the applicable performance
338	338	11.20target, multiplied by up to 15 cents per beverage container.
339	339	11.21 (e) If the performance targets under paragraph (a) have not been met in each of the seven
340	340	11.22years after the organization submitted a product stewardship plan under paragraph (b), then
341	341	11.23the commissioner may assume the organization's operations and charge the member fees
342	342	11.24according to subdivision 2 until the performance targets are met. The commissioner must
343	343	11.25then transfer leadership of the organization back to the organization's governing board within
344	344	11.26180 days after achieving the performance targets.
345	345	11.27 (f) If the performance targets are not met for at least two years in a row within five years
346	346	11.28after the commissioner assumes operations under paragraph (e), the commissioner must
347	347	11.29allow the members of the organization to choose a new organization director, in which case
348	348	11.30paragraphs (b) to (e) apply anew beginning three years after the new director is chosen.
349	349	11.31 Subd. 6.Reporting.(a) By July 1 beginning the first full year after one or more beverage
350	350	11.32container types have a refund value, the organization must make the information in clauses
351	351	11.33(1) to (21) for the preceding calendar year publicly available on the organization's website:
352	352	11Sec. 3.
353	353	REVISOR CKM/DG 25-0171512/26/24 12.1 (1) the number of beverage containers sold in the state by material type and the portion
354	354	12.2of the total sold that was refillable or reusable for each quarter of the report year and for
355	355	12.3the quarters of each of at least the last five prior years, to the extent the data is available
356	356	12.4under sections 115A.566 to 115A.5665;
357	357	12.5 (2) the percent of the total amount of beverage containers sold in the state that each
358	358	12.6material type represents for each quarter of the report year and for the quarters of each of
359	359	12.7at least the last five prior years, to the extent the data is available under sections 115A.566
360	360	12.8to 115A.5665;
361	361	12.9 (3) the percent of the total amount of fees charged to the members that each material
362	362	12.10type represents for each quarter of the report year and for the quarters of each of at least the
363	363	12.11last five prior years, to the extent the data is available under sections 115A.566 to 115A.5665;
364	364	12.12 (4) the number of beverage containers redeemed by material type for each quarter of
365	365	12.13the report year and for the quarters of each of at least the last five prior years, to the extent
366	366	12.14the data is available under sections 115A.566 to 115A.5665;
367	367	12.15 (5) the number of beverage containers redeemed at each bag-drop location, reverse
368	368	12.16vending machine, or other beverage container processing mechanism that the organization
369	369	12.17operates;
370	370	12.18 (6) the buyers to which the organization sold beverage containers, including what material
371	371	12.19type each buyer bought from the organization;
372	372	12.20 (7) the percent of the total amount sold of each material type that went to each buyer;
373	373	12.21 (8) all redemption locations in the state;
374	374	12.22 (9) the methods of redemption at each location in the state;
375	375	12.23 (10) the organization's total annual expenses;
376	376	12.24 (11) the organization's total annual revenue;
377	377	12.25 (12) the organization's total reserves;
378	378	12.26 (13) the total cost to the organization for each beverage container returned;
379	379	12.27 (14) the number of redemption locations that provide services or an enhanced redemption
380	380	12.28experience for diverse or low-income consumers;
381	381	12.29 (15) aggregated employee demographic information that includes at a minimum the race
382	382	12.30or ethnicity and gender identity of employees working on-site at redemption locations or
383	383	12Sec. 3.
384	384	REVISOR CKM/DG 25-0171512/26/24 13.1at facilities the organization establishes to aggregate, sort, and process the material collected
385	385	13.2at redemption locations and of other organization employees;
386	386	13.3 (16) the number of consumer complaints per month by redemption location for the report
387	387	13.4year and for at least the last five prior years, to the extent the data is available under sections
388	388	13.5115A.566 to 115A.5665;
389	389	13.6 (17) the total number of individual consumers per month that filed complaints by
390	390	13.7redemption location for the report year and for at least the last five prior years;
391	391	13.8 (18) a list of all organization members and each member's beverage brands and a
392	392	13.9breakdown of each member's beverage packaging mix by beverage container type for the
393	393	13.10report year and for at least the last five prior years, to the extent the data is available under
394	394	13.11sections 115A.566 to 115A.5665;
395	395	13.12 (19) a list of the buyers of waste film from the standard bag sold to consumers for the
396	396	13.13bag-drop program and a description of the products that are produced from the waste film;
397	397	13.14 (20) the number of individuals and organizations with a registered account to receive
398	398	13.15electronic deposits of refunds; and
399	399	13.16 (21) the names of the governing board members of the organization.
400	400	13.17 (b) The organization may rely on member reporting when compiling information to be
401	401	13.18reported under paragraph (a), but must note in the annual report which data in paragraph
402	402	13.19(a) are based on member reporting.
403	403	13.20 (c) Once per calendar year, the commissioner may require the organization to have an
404	404	13.21independent third party verify the data disclosed under paragraph (a). The scope of the
405	405	13.22review is limited to the data that the organization is required to report under paragraph (a),
406	406	13.23and the commissioner must specify the data to be reviewed. The commissioner must notify
407	407	13.24the organization no later than August 1 that an independent third-party review is required,
408	408	13.25and the organization must complete the independent third-party review by December 31 of
409	409	13.26the year notified. The organization must pay for the cost of the third-party review.
410	410	13.27 (d) The organization must establish safeguards to ensure its members do not have access
411	411	13.28to information regarding:
412	412	13.29 (1) the price paid by any individual buyer for the material sold; or
413	413	13.30 (2) how much of each material went to each individual recycler.
414	414	13Sec. 3.
415	415	REVISOR CKM/DG 25-0171512/26/24 14.1 (e) By February 28 each year, each organization member must report to the organization
416	416	14.2all data necessary to satisfy the disclosure requirements under paragraph (a). The organization
417	417	14.3must establish a process for the data to be confidentially submitted.
418	418	14.4 Subd. 7.Advisory committees.(a) The organization must establish an operations
419	419	14.5advisory committee that represents a range of stakeholders. The committee must include,
420	420	14.6at a minimum, a representative of:
421	421	14.7 (1) beverage container manufacturers or manufacturer trade associations;
422	422	14.8 (2) beverage producers or producer trade associations;
423	423	14.9 (3) local governments;
424	424	14.10 (4) state government;
425	425	14.11 (5) environmental nonprofit organizations;
426	426	14.12 (6) entities that buy or recycle beverage containers from the organization; and
427	427	14.13 (7) retailers or retailer trade associations.
428	428	14.14 (b) The operations advisory committee may:
429	429	14.15 (1) provide written or oral comments directly to the organization's president and board
430	430	14.16of directors no more than four times each year; and
431	431	14.17 (2) submit to the organization every even-numbered year a written report, which the
432	432	14.18organization must publish on its website if the committee requests it, containing the
433	433	14.19committee's feedback on:
434	434	14.20 (i) the organization's operation; and
435	435	14.21 (ii) the deposit return system generally.
436	436	14.22 (c) The organization must establish an equity and access advisory committee that helps
437	437	14.23to ensure that the organization's operations appropriately consider the diverse needs and
438	438	14.24cultures of individuals who redeem beverage containers. The committee must include, at a
439	439	14.25minimum:
440	440	14.26 (1) a homeless advocate;
441	441	14.27 (2) a representative of a government social services office;
442	442	14.28 (3) a representative of a nongovernmental organization that advocates on behalf of one
443	443	14.29or more cultural groups; and
444	444	14.30 (4) a specialist in diversity and inclusion.
445	445	14Sec. 3.
446	446	REVISOR CKM/DG 25-0171512/26/24 15.1 (d) The equity and access committee may:
447	447	15.2 (1) provide written or oral comments directly to the organization's president and board
448	448	15.3of directors no more than four times each year; and
449	449	15.4 (2) submit to the organization every odd-numbered year a written report, which the
450	450	15.5organization must publish on its website if the committee requests it, containing:
451	451	15.6 (i) the committee's feedback on whether organization operations are appropriately
452	452	15.7considering the diverse needs and cultures of individuals who redeem beverage containers;
453	453	15.8and
454	454	15.9 (ii) recommendations on how the organization can improve in terms of equity and access.
455	455	15.10 Subd. 8.Reimbursement.By June 30 each odd-numbered year, the organization must
456	456	15.11transfer to the commissioner an amount, not to exceed $500,000 for each of the next two
457	457	15.12fiscal years, to be deposited in the state treasury and credited to the special revenue fund to
458	458	15.13pay for the estimated program cost reported under section 115A.5661, subdivision 8. The
459	459	15.14money is appropriated to the commissioner for the specified purposes.
460	460	15.15Sec. 4. [115A.5665] ENFORCEMENT .
461	461	15.16 Subdivision 1.Civil penalty.In addition to any other applicable civil or criminal
462	462	15.17penalties, the commissioner may impose a civil penalty for violating sections 115A.566 to
463	463	15.18115A.5663 of $100 per day for each initial separate violation and not more than $1,000 per
464	464	15.19day for each subsequent separate violation.
465	465	15.20 Subd. 2.Criminal penalty.(a) A person who, with intent to defraud, knowingly takes
466	466	15.21any of the following actions is guilty of a crime:
467	467	15.22 (1) redeems out-of-state containers, rejected containers, line breakage, or containers that
468	468	15.23have already been redeemed;
469	469	15.24 (2) returns redeemed containers to a redemption location seeking a refund;
470	470	15.25 (3) brings out-of-state containers, rejected containers, or line breakage to the state for
471	471	15.26redemption; or
472	472	15.27 (4) sells beverage containers not distributed in or imported into the state by a member
473	473	15.28of the organization.
474	474	15.29 (b) If the money obtained from a criminal act under paragraph (a):
475	475	15Sec. 4.
476	476	REVISOR CKM/DG 25-0171512/26/24 16.1 (1) is less than or equal to $950, the person convicted is subject to imprisonment in a
477	477	16.2county jail for not more than six months, a fine not exceeding $1,000, or both imprisonment
478	478	16.3and a fine; or
479	479	16.4 (2) exceeds $950, the person convicted is subject to imprisonment in a county jail for
480	480	16.5not more than one year, a fine not exceeding $10,000, or both imprisonment and a fine.
481	481	16.6 Subd. 3.Injunction.The commissioner may bring a civil action to enjoin the distribution,
482	482	16.7importation, or sale into the state of a beverage sold in a beverage container in violation of
483	483	16.8section 115A.5661.
484	484	16.9 Subd. 4.Organization fines.The commissioner may fine the organization up to $30,000
485	485	16.10annually for each redemption location that receives complaints from more than an average
486	486	16.11of 100 individuals per month in a calendar year according to the public reporting required
487	487	16.12in section 115A.5663, subdivision 6.
488	488	16.13 Subd. 5.Distributor and importer fines.The commissioner may administratively
489	489	16.14impose a civil penalty once each year on a distributor or importer who fails to participate
490	490	16.15in the organization as required under section 115A.5663, subdivision 2. The commissioner
491	491	16.16must first notify the distributor or importer of the noncompliance and allow 60 days for the
492	492	16.17distributor or importer to comply before imposing the penalty. The penalty must be the
493	493	16.18greater of ten cents per beverage container sold by the distributor or importer in the state
494	494	16.19or $10,000. A distributor or importer that incurs a penalty under this subdivision may appeal
495	495	16.20the penalty as a contested case under chapter 14.
496	496	16.21 Subd. 6.Disposition of proceeds.All monetary penalties that the commissioner recovers
497	497	16.22under this section must be deposited in the state treasury and credited to the special revenue
498	498	16.23fund. The money is appropriated to the commissioner to be used only in the fiscal year
499	499	16.24following the fiscal year the money is received as follows:
500	500	16.25 (1) up to $5,000,000 available each fiscal year must be used only to administer sections
501	501	16.26115A.566 to 115A.5665; and
502	502	16.27 (2) any available amount in excess of $5,000,000 each fiscal year may be used:
503	503	16.28 (i) for the purposes described in clause (1);
504	504	16.29 (ii) to conduct outreach and educational activities focused on the beverage container
505	505	16.30recycling refund system;
506	506	16.31 (iii) to clean up litter in the state; or
507	507	16.32 (iv) to support collection of recyclable material in public spaces.
508	508	16Sec. 4.
509	509	REVISOR CKM/DG 25-0171512/26/24 17.1 Sec. 5. EFFECTIVE DATE.
510	510	17.2 Sections 1 to 4 are effective July 1, 2026.
511	511	17Sec. 5.
512	512	REVISOR CKM/DG 25-0171512/26/24