Minnesota House File 4132 (2022) - (Failed)

Packaging means any part of a package or container, including material used for containing, protecting, handling, delivering, transporting, distributing, and presenting a product that is sold, offered for sale, imported, or distributed in the state, including through Internet transactions. Packaging materials includes bags and secondary or transport packaging.

Packaging does not include:

1. A discrete type of material intended to be used for long-term storage or protecting a durable product that can be expected to be usable for that purpose for a period of at least five years
2. A beverage container
3. Packaging that is reusable

Producer is an entity that manufactures or uses in a commercial enterprise, sells, offers for sale,
or distributes packaging material in the state under the brand of the manufacturer.

For producers who are not the brand or manufacturer of the packaging material, the producer is the owner or licensee of a trademark under which the covered product is used in commercial enterprise, sold, offered for sale, or distributed in the state, whether or not the trademark is registered.

A producer is also an entity that imports packaging material into the United States or the state for use in a commercial enterprise, sale, offer for sale, or distribution in the state.

A producer is exempt if they receive less than 2 million dollars in total gross revenue or use less than one ton of total packaging material.

The state will select a packaging stewardship organization via a competitive bid process. The state will enter into a contract with a packaging stewardship organization to coordinate the packaging stewardship program. However, producers are individually responsible for compliance with the regulation.

The stewardship organization must assess and collect fees from producers and establish and manage the packaging responsibility account. The account will be used to award grants to eligible projects that reduce packaging waste by investing in reuse and refill systems; recycling infrastructure; and reuse, refill, and recycling education in the state. Any interested person, municipality, business, organization, or institution may apply to the product stewardship organization for a grant to carry out a project or projects to improve recycling or reuse infrastructure or provide educational programming or materials regarding recycling or reuse.

Program funds will cover fees to municipalities and political subdivisions and certain recycling and waste management programs.

Program funds will cover investments in reuse and recycling education and outreach.

Program funds will cover investments in product redesign and reusable systems, and investments in reuse and recycling infrastructure.

Low-volume producers may elect to pay a flat fee on a tiered basis in lieu of a material-specific producer payment. Low-volume producer means a producer that sold, offered for sale, or distributed for sale in or into the State products using more than one ton but less than 15 tons of packaging material in total in the previous year.

Producer fees must be calculated based on the packaging material type and the quantity of each packaging material type, by weight, that the producer sells, offers for sale, or distributes in the state.

Fees will incentivize reductions in overall packaging and the adoption of reuse systems, increase postconsumer recycled material, and promote using recyclable packaging.

Fees are lower for packaging that increases postconsumer recycled material.

There are no fees for packaging that is reusable.

Fees are lower for packaging that is readily recyclable.

Each producer must ensure that all nonreusable packaging across its brand is recycled at a rate of, at a minimum 50 percent, five years after the selection of the product stewardship organization; 80 percent, eight years after the selection of the product stewardship organization and 90 percent, 12 years after the selection of the product stewardship organization.

Each producer must ensure that all nonreusable packaging across its brand incorporates, on average and in the aggregate, the following amount, by weight, of
postconsumer recycled material:

1. 50 percent, five years after the selection of the product stewardship organization
2. 80 percent, five years after the selection of the product stewardship organization
3. 90 percent, 12 years after the selection of the product stewardship organization

A producer must reduce the total amount of nonreusable packaging by unit, on average and in the aggregate, across its brand according to the following schedule, measured by the length of time following the selection of the product stewardship organization: (1) by ten percent, two years after; (2) by 20 percent, four years after; (3) by 30 percent, six years after; (4) by 40 percent, eight years after; (5) by 50 percent, ten years after.

The reductions required in this section may be achieved by eliminating nonreusable packaging or by transitioning to a reuse model

Municipalities and Minnesota Tribal governments are eligible to receive funding only if they provide recycling services to all residents or members within their jurisdictional control. Two or more municipalities or Minnesota Tribal governments that provide recycling services may elect to jointly receive funding, provided that they demonstrate that their recycling services are interconnected.

The commissioner must select the product stewardship organization within one year of the date on which the final program rules are adopted. The commissioner must also adopt rules setting fees for producers within one year of the effective date of the legislation.

Beginning 2 years after the effective date of the legislation a producer may not sell, offer for sale, or distribute for sale in or into the state a product contained, protected, delivered, presented, or distributed in or using packaging material unless the producer complies with all applicable requirements.

The product stewardship organization must establish and manage a packaging responsibility account. Beginning one year after the first payment of fees by producers, and annually thereafter, the product stewardship organization must reimburse the commissioner from the packaging responsibility account for the commissioner's costs associated with administration. 50 percent of the money must be used for recycling infrastructure and education grants, 25 percent of the money must be distributed to political subdivisions and Minnesota Tribal governments to address recycling needs in those communities, and the remaining 25 percent must go to reuse infrastructure and education grants.

A product stewardship organization must annually submit to the commissioner and make available on its publicly accessible website a report.

A stewardship organization's proposal must include a description of how the bidder intends to solicit and consider input from interested persons, including but not limited to producers, political subdivisions, environmental organizations, waste management and recycling establishments, and reuse system operators.

"Readily recyclable" means packaging material for which the commissioner determines that entities that process recyclable material generated in the state can sort the material and are willing to purchase the material in full bales when fully sorted in quantities equal to or in excess of its supply, based on data from the previous two calendar years. Readily recyclable does not include packaging material that contains a toxic substance.

Beginning one year after the effective date of this section, no person may manufacture, knowingly sell, offer for sale, distribute for sale, or distribute for use in the state packaging or reusable products containing any of the following toxic substances above the practical quantification limit: ortho-phthalates; bisphenols; perfluoroalkyl and polyfluoroalkyl substances (PFAS); lead and lead compounds; hexavalent chromium and compounds; cadmium and cadmium compounds; mercury and mercury compounds; benzophenone and its derivatives; halogenated flame retardants; perchlorate; formaldehyde; and toluene. Beginning one year after the effective date of this section, no person may manufacture, knowingly sell, offer for sale, distribute for sale, or distribute for use in the state packaging or reusable products containing: polyvinyl chloride; polystyrene; or polycarbonate.

Beginning three years after the effective date of this section and every three years thereafter, the commissioner must, in collaboration with the Department of Health, designate at least ten but no more than 20 toxic substances in packaging, unless the commissioner determines that fewer than ten chemicals meet the definition of toxic substances.

A producer that is not a low-volume producer must describe the methods used to determine the amount reported for each type of packaging material associated with the producer's products, a description of the characteristics of each type of packaging material, and a list of the producer's brands and the UPCs of the products associated with each type of packaging material.

The commissioner must conduct a statewide needs assessment to determine the barriers and opportunities to reduce packaging waste and increase waste reduction, reuse, and recycling. The commissioner must update and revise the needs assessment every three years, using money from the packaging responsibility account.

A producer must affix a label to all packaging material sold, offered for sale, or distributed for sale in or into the state containing information from one of the following clauses, in a format approved by the commissioner: (1) the percentage of postconsumer recycled material in the packaging material; (2) whether the packaging material is readily recyclable and how to recycle it; or (3) whether the packaging material is compostable. All packaging material sold in the state must conform with the uniform labeling system required by this section. Packaging that does not meet the requirements of this section may not be sold, offered for sale, or distributed for sale in the state beginning two years after the effective date of this section.

"Reusable"" means a product that is: (1) designed to be used repeatedly and is returnable for a number of use cycles that exceeds those specified; (2) free of toxic substances; (3) safe for washing and sanitizing according to applicable food safety laws; (4) capable of being recycled at the end of use, with the exception of ceramic products.

"Returnable"" means that packaging can be conveniently returned after use to a reuse or return system with an average annual return rate of no less than 80 percent.

The commissioner must adopt rules that specify the minimum number of reuse cycles required for each type of packaging material to be considered reusable, including but not
limited to: (1) cups: a minimum of 125 uses; (2) clamshells: a minimum of 50 uses; (3) plates: a minimum of 63 uses; (4) glass bottles: a minimum of 20 uses.