SB 778

This bill creates a packaging reduction and recycling program administered by the Department of Natural Resources.

Under the bill, DNR must enter into a contract with a nonprofit organization to serve as a packaging reduction organization (PRO). The PRO must implement a producer responsibility program (program) to reduce packaging and to assess and collect information and payments from producers to pay for the development of packaging reduction programs. DNR must also issue a request for proposals to conduct a statewide packaging reduction, reuse, and recycling needs assessment to identify barriers and opportunities for reducing, reusing, and recycling packaging materials. Subsequent assessments must be conducted at five-year intervals.

The bill provides that, beginning 12 months after the selection of the PRO, a producer may not sell, offer for sale, or distribute into this state a product contained, protected, delivered, presented, or distributed in packaging unless the producer is registered with the PRO and complying with the requirements of the program. A producer must also annually report to the PRO the total amount of each type of packaging material sold, offered for sale, or distributed for sale into the state by the producer and other information required by the PRO. The bill requires producers to meet specified packaging recycling rates over time, with the ultimate target of 70 percent of packaging being recycled within 12 years of the establishment of the program. The bill also prohibits packaging that is made from or contains specified materials or toxic substances.

DNR must provide an annual grant, from the environmental fund, to the PRO to administer the program. The PRO must 1) register all producers, 2) collect and compile data from producers, 3) collect payments from producers, 4) distribute funds to local units of government and private companies, 5) make recommendations to DNR regarding investments toward packaging reduction, reuse, and recycling, 6) offer technical support to producers, 7) report noncompliant producers, 8) issue an annual report on compliance with the program, and 9) hold public hearings every year to report on implementation of the program and seek public input on improving compliance.

DNR must promulgate rules to administer the packaging reduction and recycling program, including rules to establish fees, to be paid by producers, for specified packaging material types. The fees must be sufficient to cover the cost of 1) collecting, transporting, and managing each type of packaging material once discarded, 2) costs incurred by DNR to administer the packaging reduction and recycling program, 3) costs incurred by the PRO to administer the program, 4) costs associated with conducting recycling needs assessments, and 5) any other expenses DNR determines to be relevant. All payments of fees collected by the PRO must be transferred to DNR and deposited in the environmental fund.

Violations of the requirements of the packaging reduction and recycling program are punishable by a forfeiture of up to $100,000 per day, per violation. Each noncompliant product line that is sold, offered for sale, or distributed to consumers via retail commerce in this state, including through an Internet transaction, is counted as a separate violation.