(4) a nonprofit corporation with annual revenue of less than $35,000,000;

and (5) a State agency, political subdivision, public area, public entity, or other governmental unit.

"Covered material" means packaging and paper products sold or supplied in the State.

"Covered material" does not include exempt materials.

"Covered materials type" means paper, plastic, metal, or any other specific type of covered material that:

(1) can be categorized based on distinguishing chemical or physical properties, including properties that allow it to be aggregated into a discrete commodity category for purposes of reuse, recycling, or composting;

and (2) is based on similar uses in the form of a product or package.

"Covered services" means collecting, transferring, transporting, sorting, processing, recovering, preparing, or otherwise managing for purposes of source reduction, reuse, 10400SB0702sam001 -5- LRB104 07000 BDA 24293 a recycling, or composting.

"De minimis producer" means a person that in the most recent fiscal year:

(1) introduced less than one ton of covered material into this State;

or (2) earned global gross revenues of less than $2,000,000.

"Drop-off facilities" means a specific area in the State where individuals may bring household recyclable materials to be sorted into material-specific receptacles.

"Environmental impact" means the impact of a covered material on human health and the environment from extraction and processing of the raw materials composing the covered material through manufacturing;

distribution;

use;

recovery for reuse, recycling, or composting;

and final disposal.

"Environmental justice area" means a census block group with a low-income or minority population greater than twice the statewide average.

"Executive director" means the executive director of the packaging producer responsibility organization or recycling refund producer responsibility organization.

"Exempt materials" means materials, or any portion of materials, that:

(1) are packaging for infant formula, as defined in 21 U.S.C.

321(z);

(2) are packaging for medical food, as defined in 21 10400SB0702sam001 -6- LRB104 07000 BDA 24293 a U.S.C.

360ee(b)(3);

(3) are packaging for a fortified oral nutritional supplement used by persons who require supplemental or sole-source nutrition to meet nutritional needs due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined by the International Classification of Diseases, Tenth Revision;

(4) are packaging for a product regulated as a drug or medical device by the United States Food and Drug Administration, including associated components and consumable medical equipment;

(5) are packaging for medical equipment or a product used in medical settings that is regulated by the United States Food and Drug Administration, including associated components and consumable medical equipment;

(6) are drugs, biological products, parasiticides, medical devices, or in vitro diagnostics that are used to treat, or that are administered to, animals and are regulated by the United States Food and Drug Administration under the federal Food, Drug, and Cosmetic Act, 21 U.S.C.

301 et seq., or by the United States Department of Agriculture under the federal Virus-Serum-Toxin Act, 21 U.S.C.

151 et seq.;

(7) are packaging for products regulated by the United States Environmental Protection Agency under the federal 10400SB0702sam001 -7- LRB104 07000 BDA 24293 a Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C.

136 et seq.;

(8) are packaging used to contain liquefied petroleum gas and are designed to be refilled;

(9) are paper products used for a newspaper's print publications, including supplements or enclosures, that include content derived from primary sources related to news and current events;

(10) are paper products used for a magazine's print publication that has a circulation of less than 95,000 and that primarily includes content derived from primary sources related to news and current events;

(11) are packaging used to contain hazardous or flammable products regulated by the 2012 federal Occupational Safety and Health Administration Hazard Communication Standard, 29 CFR 1910.1200, that prevent the packaging from being source reduced or made reusable, recyclable, or compostable, as determined by the Agency;

(12) are packaging that is being collected and properly managed through a paint producer responsibility program approved by the Agency;

(13) are exempt materials under this Act, as determined by the Agency;

or (14) are covered materials that:

(A) a producer distributes to another producer;

(B) are subsequently used to contain a product, 10400SB0702sam001 -8- LRB104 07000 BDA 24293 a and the product is distributed to a commercial or business entity for the production of another product;

and (C) are not introduced to a person other than the commercial or business entity that first received the product used for the production of another product.

"Express redemption site" means a designated return point that allows consumers to return covered beverage containers, and that do not require cash handling on-site;

rather, upon return, beverage containers are transported to centralized processing facilities, and refunds are credited to the consumer's virtual account.

"Express redemption site" includes bag-drop systems, reverse vending machines, or other beverage container collection mechanisms to enhance convenience and accessibility for consumers.

"Full-service redemption site" means a return point where individuals may return covered beverage containers to receive immediate refunds for their returns.

"Independent auditor" means an independent and actively licensed certified public accountant that is:

(1) retained by a producer responsibility organization;

(2) not otherwise employed by or affiliated with a producer responsibility organization;

and (3) qualified to conduct an audit under State law.

"Infrastructure investment" means an investment by a 10400SB0702sam001 -9- LRB104 07000 BDA 24293 a packaging producer responsibility organization that funds:

(1) equipment or facilities in which covered materials are prepared for reuse, recycling, or composting;

(2) equipment or facilities used for source reduction, reuse, recycling, or composting of covered materials;

or (3) the expansion or strengthening of demand for and use of covered materials by responsible markets in the State or region.

"Introduce" means to sell, offer for sale, distribute, or use to ship a product within or into this State.

"Living wage" means the minimum hourly wage necessary to allow a person working 40 hours per week to afford basic needs.

"Lobby" or "lobbying" means the practice of promoting, opposing, or in any manner influencing or attempting to influence the introduction, defeat, or enactment of legislation before any legislative body;

opposing or in any manner influencing the executive approval, veto, or amendment of legislation;

or the practice of promoting, opposing, or in any manner influencing or attempting to influence the enactment, promulgation, modification, or deletion of regulations before any regulatory body.

The term does not include providing public testimony before a legislative body or regulatory body or any committee thereof.

"Local government" means a county, city, or town, including any municipal corporation, quasi-municipal corporation, or special purpose district, or any office, 10400SB0702sam001 -10- LRB104 07000 BDA 24293 a department, division, bureau, board, commission, or agency thereof, or other local public agency.

"Low-income" means a household at or below 80% of the median income level for a given county as determined annually by the U.S.

Department of Housing and Urban Development.

"Material recovery facility" means a facility in the State that collects, compacts, repackages, sorts, or processes for transport source separated material for the purpose of recycling.

"Minority" means a person who is any of the following:

(1) American Indian or Alaska Native (a person having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment).

(2) Asian (a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam).

(3) Black or African American (a person having origins in any of the black racial groups of Africa).

(4) Hispanic or Latino (a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race).

(5) Native Hawaiian or Other Pacific Islander (a person having origins in any of the original peoples of 10400SB0702sam001 -11- LRB104 07000 BDA 24293 a Hawaii, Guam, Samoa, or other Pacific Islands).

"Needs assessment" means the most recently completed needs assessment conducted under this Act.

"Packaging" means a material type, such as paper, plastic, glass, metal, or multi-material, that is used to protect, contain, transport, or serve a product.

"Packaging manufacturer" means any person, firm, association, partnership, or corporation that produces packaging or a packaging component of covered beverage containers.

"Packaging producer responsibility organization" means a nonprofit corporation that is tax exempt under Section 501(c)(3) of the federal Internal Revenue Code and that is created by a group of producers to implement the nonrecycling refund activities under this Act.

"Packaging producer program plan" means a program plan developed by the packaging producer responsibility organization that is prepared and submitted to the Agency for review and approval.

"Packaging program" means a program where producers of covered materials not in the recycling refund program pay a fee to meet certain performance targets.

"Packaging program advisory board" means the packaging program advisory board established under this Act.

"Paper product" means a product made primarily from wood pulp or other cellulosic fibers but does not include bound 10400SB0702sam001 -12- LRB104 07000 BDA 24293 a books or products that recycling or composting facilities will not accept because of the unsafe or unsanitary nature of the paper product.

"Paper product" does not include exempt materials.

"Postconsumer recycled content" means the amount of postconsumer material used by a producer in the production of a covered materials type, divided by the total amount of that covered materials type used for products sold or distributed by the producer in that same calendar year.

"Producer" means the following person responsible for compliance with requirements under this Act for an item sold, offered for sale, or distributed in or into this State:

(1) For an item sold in or with packaging at a physical retail location in this State:

(A) If the item is sold in or with packaging that includes a brand, the producer is the brand owner;

(B) If there is no person or entity described in subparagraph (A) of this paragraph (1), the producer is the person or entity that is licensed to sell, offer for sale, or distribute to consumers in the State an item under the brand or trademark used in a commercial enterprise, sold, offered for sale, or distributed in or into this State, whether or not the trademark is registered in this State;

(C) If there is no person to which subparagraph (A) or (B) of this paragraph (1) applies, the producer 10400SB0702sam001 -13- LRB104 07000 BDA 24293 a is the person that is licensed to manufacture and sell or offer for sale to consumers in this State an item under the brand or trademark of another manufacturer or person;

(D) If there is no person described in subparagraph (A), (B), or (C) of this paragraph (1) within the United States, the producer is the person who is the importer of record for the item into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in this State;

or (E) If there is no person described in subparagraph (A), (B), (C), or (D) of this paragraph (1), the producer is the person that first distributes the item in or into this State;

(2) For items sold or distributed in or into this State via e-commerce, remote sale, or remote distribution:

(a) For packaging used to directly protect or contain the item, the producer of the packaging is the same as the producer identified under paragraph (1);

and (b) For packaging used to ship the item to a consumer, the producer of the packaging is the person that packages the item to be shipped to the consumer;

(3) For packaging that is an item and is not included in paragraphs (1) and (2), the producer of the packaging 10400SB0702sam001 -14- LRB104 07000 BDA 24293 a is the person that first distributes the item in or into this State;

(4) A person is the producer of an item or covered product sold, offered for sale, or distributed in or into this State, as defined in paragraphs (1) through (3), except where a private label producer has mutually agreed with a brand owner to accept responsibility as the producer, and the private label producer has joined a registered producer responsibility organization as the responsible producer for that item;

if a private label producer accepts responsibility as the producer, the brand owner must provide written certification of that contractual agreement to the producer responsibility organization;

and (5) If the producer described in paragraphs (1) through (4) is a business operated wholly or in part as a franchise, the producer is the franchisor, if that franchisor has franchisees that have a commercial presence within the State.

"Producer" does not include:

(1) Government entities;

or (2) Registered 501(c)(3) charitable organizations and 501(c)(4) social welfare organizations.

"Producer responsibility organization" means an organization set up to carry out the responsibilities of either the packaging program or the recycling refund program, 10400SB0702sam001 -15- LRB104 07000 BDA 24293 a or both programs.

"Recycling" means any process by which materials are collected, separated or processed and returned to the economic mainstream in the form of raw materials or products.

"Recycling" does not include:

(1) landfill disposal of packaging or paper products or the residue resulting from the processing of packaging or paper products at a materials recovery facility;

(2) use as alternative daily cover or any other beneficial use at a landfill, incinerator, energy recovery facility, or energy generation facility by means of combustion;

or (3) final conversion of packaging and paper products or their components and by-products to a fuel.

"Recycling rate" means the amount of recyclable covered material, in aggregate or by individual covered materials type, recycled in a calendar year divided by the total amount of recyclable covered material, in aggregate or by individual covered materials type, sold or distributed into the State by the relevant unit of measurement in the approved program plan.

"Recycling refund" means a covered beverage container redemption program that pays a per-unit refund value to persons for covered beverage containers and collects and processes covered beverage containers as described in this Act.

"Recycling refund advisory board" means the recycling 10400SB0702sam001 -16- LRB104 07000 BDA 24293 a refund advisory board established under this Act.

"Recycling refund processing facility" means a location that is designated by the recycling refund producer responsibility organization to receive, sort, and prepare beverage containers collected through the system for recycling or reuse.

"Recycling refund producer responsibility organization" means a nonprofit corporation that is tax exempt under Section 501(c)(3) of the federal Internal Revenue Code created by a group of recycling refund covered beverage containers producers to implement activities under this Act.

"Redemption rate" means the number of covered beverage containers redeemed for the recycling refund divided by the number of covered beverage containers sold in the State in a calendar year.

Covered beverage containers transferred by material recovery facilities to additional materials processing or end markets are not included in the calculation of covered beverage containers redeemed for the recycling refund.

"Redemption site" means a public or private place that provides the ability to redeem a covered beverage container for which a deposit was paid.

"Recycling refund program plan" means a program plan developed by the recycling refund producer responsibility organization that is prepared and submitted to the Agency for review and approval.

10400SB0702sam001 -17- LRB104 07000 BDA 24293 a "Redemption site" means a public or private location that provides beverage container redemption services.

"Responsible market" means a materials market that:

(1) reuses, recycles, composts, or otherwise recovers materials and disposes of contaminants in a manner that protects the environment and minimizes risks to public health and worker health and safety;

(2) complies with all applicable federal, State, and local statutes, rules, ordinances, and other laws governing environmental, health, safety, and financial responsibility;

(3) possesses all requisite licenses and permits required by a federal or State agency or political subdivision;

(4) if the market operates in the State, manages waste according to the waste management goal and priority order of waste management practices stated in statute;

and (5) minimizes adverse impacts to environmental justice areas.

"Retail establishment" means any person, corporation, partnership, business, facility, vendor, organization, or individual that sells or provides merchandise, goods, or materials directly to a consumer that engages in the sale of beverages that are covered beverage containers intended for consumption off-site.

"Return rate" means the amount of reusable covered 10400SB0702sam001 -18- LRB104 07000 BDA 24293 a material, in aggregate or by individual covered materials type, collected for reuse by a producer or service provider in a calendar year, divided by the total amount of reusable covered material, in aggregate or by individual covered materials type, sold or distributed into the State by the relevant unit of measurement in the approved program plan.

"Reusable" means capable of reuse.

"Reuse" means the return of a covered material to the marketplace and the continued use of the covered material by a producer or service provider when the covered material is:

(1) intentionally designed and marketed to be used multiple times for its original intended purpose without a change in form;

(2) designed for durability and maintenance to extend its useful life and reduce demand for new production of the covered material;

(3) supported by adequate logistics and infrastructure at a retail location, by a service provider, or on behalf of or by a producer, that provides convenient access for consumers;

and (4) compliant with all applicable federal, State, and local statutes, rules, ordinances, and other laws governing health and safety.

"Reuse rate" means the share of units of a reusable covered material sold or distributed into the State in a calendar year that are demonstrated and deemed reusable in 10400SB0702sam001 -19- LRB104 07000 BDA 24293 a accordance with an approved producer responsibility plan.

"Service provider" means an entity that provides covered services for covered materials.

"Service provider" includes a political subdivision that provides or that contracts or otherwise arranges with another party to provide covered services for covered materials within its jurisdiction, regardless of whether it provided, contracted for, or otherwise arranged for similar services before the approval of the applicable producer responsibility plan.

"Source reduction" means the design, manufacture, acquisition, purchase, or use of materials or products to reduce the amount of municipal waste before it enters the municipal waste stream.

This may be accomplished through the redesign of manufacturing processes;

redesign of products;

changes in consumers' purchasing decisions, use, and disposal habits;

and backyard composting.

"Third-party certification" means certification by an accredited independent organization that a standard or process required by this Act, or by a packaging producer program plan or a recycling refund program plan approved under this Act, has been achieved.

Section 10.

Registration of producer responsibility organizations and service providers.

(a) The annual registration of producer responsibility organizations and service providers shall be as follows:

10400SB0702sam001 -20- LRB104 07000 BDA 24293 a (1) On or before April 1, 2026, producers must appoint:

(A) a packaging producer responsibility organization and a recycling refund producer responsibility organization, or (B) a single producer responsibility organization with (i) governance to separately implement the packaging producer program plan and the recycling refund program plan in a coordinated manner;

and (ii) all the responsibilities under this Act of the packaging producer responsibility organization and the recycling refund producer responsibility organization.

(2) Both the packaging producer responsibility organization and the recycling refund producer responsibility organization, or the single producer responsibility organization, must register with the Agency on or before July 1, 2026, and annually on that same date thereafter by submitting the following:

(A) contact information for a person responsible for implementing an approved program plan;

(B) a list of all member producers that have entered into written agreements to operate under an approved program plan administered by a registered producer responsibility organization and, for each producer, a list of all brands of the producer's covered materials introduced;

10400SB0702sam001 -21- LRB104 07000 BDA 24293 a (C) a list of current board members and the executive director if different from the person responsible for implementing an approved program plan;

and (D) documentation demonstrating adequate financial responsibility and financial controls to ensure proper management of funds and payment of the registration fee required under this Section.

(b) The registration fee for producer responsibility organizations and service providers shall be as follows:

(1) On or before November 1, 2026, submit a one-time payment to the department, in lieu of a 2027 registration fee, in an amount determined by the department and communicated to each producer responsibility organization at least 60 days prior to the deadline for this initial payment, to cover the previously incurred costs and future estimated costs of the agency under this act from the effective date of this act through paying the annual registration fee required in subparagraph (2).

(2) Beginning January 1, 2028, as part of its annual registration with the Agency, a packaging producer responsibility organization and recycling refund producer responsibility organization must submit to the Agency a registration fee, as determined by the Agency.

On or before September 1, 2027, and annually thereafter on September 1, the Agency must provide written notice to 10400SB0702sam001 -22- LRB104 07000 BDA 24293 a registered producer responsibility organizations in writing of the amount of the registration fee.

If there are 2 or more producer responsibility organizations implementing the recycling refund program plan or the packaging producer program plan, the coordinating body described in this Section must equitably apportion payment of the registration fee between all registered producer responsibility organizations managing either program.

The registration fee must be set at an amount anticipated to in the aggregate meet but not exceed the Agency's estimate of the costs required to perform the Agency's duties as described in this Act and to otherwise administer, implement, and enforce this Act for the 12 months after the registration date.

(3) The Agency must annually reconcile the fees paid by a producer responsibility organization under this subdivision with the actual costs incurred by the agency by means of credits or refunds to or additional payments required of a producer responsibility organization, as applicable.

(c) After the first packaging producer responsibility plan approved by the agency expires, the Agency may allow registration of more than one packaging producer responsibility organization if:

(1) producers of a covered materials type or a specific covered material appoint a packaging producer 10400SB0702sam001 -23- LRB104 07000 BDA 24293 a responsibility organization;

or (2) producers organize under additional packaging producer responsibility organizations.

(d) All fees received under this Section must be deposited into the Product Producer Responsibility Program Fund under this Act.

Section 15.

Packaging producer responsibility organization duties.

A packaging producer responsibility organization must:

(1) register with the Agency and pay the required fees to the Agency as required under this Act;

(2) submit a producer responsibility plan to the Agency as required under this Act;

(3) implement producer responsibility plans as required under this Act;

(4) forward upon receipt from the Agency the lists established under this Act to all service providers that participate in a packaging producer responsibility plan administered by the packaging producer responsibility organization;

(5) establish, on or before September 1, 2026, an initial producer fee structure to fund the initial implementation of the program, to be used until the packaging producer responsibility organization has an approved program plan as required under this Act;

(6) collect producer fees;

10400SB0702sam001 -24- LRB104 07000 BDA 24293 a (7) submit the reports required under this Act;

(8) ensure that producers operating under a packaging producer responsibility plan administered by the packaging producer responsibility organization comply with the requirements of the packaging producer responsibility plan and with this Act;

(9) expel a producer from the packaging producer responsibility organization if efforts to return the producer to compliance with the plan or with the requirements of this Act are unsuccessful;

(10) notify the Agency when a producer has been expelled;

(11) consider and respond within 90 days in writing to comments received from the advisory board, including justifications for not incorporating advisory board recommendations;

(12) maintain a website with the information required under this Act;

(13) notify the Agency within 30 days of a change made to the contact information for a person responsible for implementing the packaging producer responsibility plan, to board membership, or to the executive director;

(14) assist service providers to identify and use responsible markets;

(15) contract directly with service providers and provide payments in a timely manner;

and 10400SB0702sam001 -25- LRB104 07000 BDA 24293 a (16) comply with all other applicable requirements of this Act.

Section 20.

Recycling refund producer responsibility organization duties.

A recycling refund producer responsibility organization must:

(1) register with the Agency;

(2) submit a recycling refund producer plan;

(3) implement recycling refund producer plans;

(4) collect producer fees;

(5) establish, on or before September 1, 2026, an initial producer fee structure to fund the initial implementation of the program, to be used until the recycling refund producer responsibility organization has an approved program plan as required under this Act;

(6) submit the reports required under this Act;

(7) ensure that producers operating under a recycling refund program plan administered by the recycling refund producer responsibility organization comply with the requirements of the recycling refund program plan and with this Act;

(8) expel a producer from the recycling refund producer responsibility organization if efforts to return the producer to compliance with the plan or with the requirements of this Act are unsuccessful;

(9) notify the Agency when a producer has been 10400SB0702sam001 -26- LRB104 07000 BDA 24293 a expelled;

(10) consider and respond within 90 days in writing to comments received from the advisory board, including justifications for not incorporating board recommendations;

(11) maintain a website with the information required under this Act;

(12) notify the Agency within 30 days of a change made to the contact information for a person responsible for implementing the recycling refund producer responsibility plan, to board membership, or to the executive director;

(13) contract directly with service providers and provide payments in a timely manner;

and (14) comply with all other applicable requirements of this Act.

Section 25.

Advisory boards.

(a) The advisory boards are established as follows:

(1) The packaging program advisory board is established to review all activities conducted by packaging producer responsibility organizations under this Act and to advise the Agency and packaging producer responsibility organizations regarding the implementation of this Act.

(2) The recycling refund advisory board is established to review all activities conducted by recycling refund 10400SB0702sam001 -27- LRB104 07000 BDA 24293 a producer responsibility organizations under this Act and to advise the Agency and recycling refund producer responsibility organizations regarding the implementation of this Act.

(b) The duties of the advisory boards are as follows:

(1) The packaging program advisory board shall:

(A) convene its initial meeting on or before January 1, 2027;

(B) consult with the Agency regarding the scope of the needs assessments and provide written comments on needs assessments;

(C) advise on the development of packaging producer responsibility plans and amendments to packaging producer responsibility plans;

(D) submit comments to packaging producer responsibility organizations and to the Agency on any matter relevant to the administration of this Act;

(E) provide written comments to the Agency during any rulemaking process undertaken by the Agency;

and (F) comply with all other applicable requirements of this Act.

(2) The recycling refund advisory board shall:

(A) convene its initial meeting on or before January 1, 2027;

(B) review the recycling refund program plan and provide comments to the recycling refund producer 10400SB0702sam001 -28- LRB104 07000 BDA 24293 a responsibility organization, prior to the draft being issued as an official draft for public comment;

(C) review program reports and audits and raise issues for recycling refund producer responsibility organization follow-up or agency enforcement action;

(D) review annual reports and provide comments to the Agency;

and (E) ensure that the recycling refund producer responsibility organization and Agency are considering a broad range of perspectives in developing recycling refund program plans and in implementing programs.

(c) The membership of the advisory boards are as follows:

(1) By August 1, 2026, the Agency must establish and appoint the initial membership of the packaging program advisory board.

The membership of the packaging program advisory board must consist of the following:

(A) two members representing manufacturers of covered materials or a statewide or national trade association representing those manufacturers;

(B) two members representing recycling facilities that manage covered materials;

(C) one member representing a waste hauler or a statewide association representing waste haulers;

(D) one member representing retailers of covered materials or a statewide trade association representing those retailers;

10400SB0702sam001 -29- LRB104 07000 BDA 24293 a (E) one member representing a statewide nonprofit environmental organization;

(F) one member representing a community-based nonprofit environmental justice organization;

(G) one member representing a waste facility that receives and sorts covered materials and transfers them to another facility for reuse, recycling, or composting;

(H) one member representing a waste facility that receives compostable materials for composting or a statewide trade association that represents such facilities;

(I) two members representing an entity that develops or offers for sale covered materials that are designed for reuse or refill and maintained through a reuse or refill system or infrastructure or a statewide or national trade association that represents such entities;

(J) three members representing organizations of political subdivisions, with at least one member representing a political subdivision outside the metropolitan area;

(K) two members representing other interested parties or additional members of interests under this paragraph (1) as determined by the Agency;

and (L) one member representing the Agency.

10400SB0702sam001 -30- LRB104 07000 BDA 24293 a (2) By August 1, 2026, the Agency must establish and appoint the initial membership of the recycling refund advisory board.

The membership of the recycling refund advisory board must consist of representatives of the following:

(A) one member representing local government;

(B) one member representing a retailer that offers collection opportunities;

(C) one member representing a packaging manufacturer that is not a producer;

(D) one member representing a processor;

(E) one member representing an environmental nonprofit organization;

(F) one member representing an environmental justice organization or organization that represents individual collectors;

(G) one member who is a canner or represents a canner organization;

and (H) two members representing other interested parties or additional members of interests represented under this paragraph (2) as determined by the Agency.

(3) In making appointments under this Section, the Agency:

(A) may not appoint members who are members of the General Assembly or registered lobbyists;

(B) may not appoint members who are employees of a 10400SB0702sam001 -31- LRB104 07000 BDA 24293 a producer required to be members of a producer responsibility organization in this State under this Act;

and (C) must endeavor to appoint members from all regions of the State.

(4) A chair is elected by majority vote of present members at the first meeting of each year at which quorum is reached.

(d) Members serve for a term of 4 years, except that the initial term for a majority of the initial appointees must be 2 years so that membership terms are staggered.

Members may be reappointed but may not serve more than 8 consecutive years.

A member of an advisory board appointed to represent the Agency serves at the pleasure of the Agency.

The chair shall be elected from among the members by a majority of its members.

(e) A majority of advisory council member seats being filled and a majority of nonvacant advisory board member seats being present constitutes a quorum.

Action by an advisory board requires a quorum and a majority of those present and voting.

All members of an advisory board, except a member of an advisory board appointed to represent the Agency are voting members of the board.

(f) Each advisory board must meet at least 2 times per year and may meet more frequently upon 10 days' written notice at the request of the chair or a majority of its members.

(g) The Agency must provide administrative and operating 10400SB0702sam001 -32- LRB104 07000 BDA 24293 a support to each advisory board, and the Agency may contract with a third-party facilitator to assist in administering the activities of each advisory board, including establishing a website or landing page on the Agency website.

(h) An advisory board member must disclose any instance of actual or perceived conflicts of interest at each meeting of the advisory board at which recommendations regarding producer responsibility plans, programs, operations, or activities are made by an advisory board.

Section 30.

Packaging producer responsibilities.

(a) After August 1, 2026, a producer must be a member of one or more of the following given the covered materials it introduces:

(1) packaging producer responsibility organization;

(2) a recycling refund producer responsibility organization registered in this State;

or (3) the single producer responsibility organization managing the packaging program and recycling refund program.

(b) A producer must:

(1) implement the requirements of the packaging producer responsibility plan and recycling refund producer responsibility plan under which the producer operates;

(2) pay producer fees under this Act;

(3) provide necessary information for covered 10400SB0702sam001 -33- LRB104 07000 BDA 24293 a materials to the packaging producer responsibility organization and the recycling refund producer responsibility organization at a frequency to be determined by the producer responsibility organization;

and (4) comply with all other applicable requirements of this Act.

Section 35.

Introduction and sales restrictions.

(a) Packaging producer restrictions are as follows:

(1) After January 1,2030, no producer may sell in the State covered materials, either separately or when used to package another product, unless the producer enters into a written agreement with a packaging producer responsibility organization to operate under an approved packaging producer responsibility plan.

(2) After January 1, 2033, no producer may sell in the State covered materials unless covered services are provided for the covered materials through a program in a packaging producer responsibility plan approved by the Agency, and the covered materials are:

(1) reusable and capable of being managed through a reuse system that meets the reuse rate and return rate required under this Act;

(2) included on the recyclable covered materials list established under this Act;

or 10400SB0702sam001 -34- LRB104 07000 BDA 24293 a (3) included on the compostable covered material list established under this Act.

(3) A packaging producer responsibility organization may petition the Agency for a 2-year extension to comply with the requirements of paragraph (2).

The Agency may approve the extension if the petition demonstrates that market or technical issues prevent a specific covered material from being considered reusable or included on the lists established under this Act.

The packaging producer responsibility organization may petition the Agency for additional annual extensions if the packaging producer responsibility organization demonstrates that market or technical issues preventing compliance persist.

(b) A person may not sell or distribute in or into the State a covered beverage container of a producer that is not participating in a recycling refund producer responsibility organization or that is not in compliance with the requirements of this Act or rules adopted under this Act.

Section 40.

Service providers.

(a) A packaging producer responsibility organization or a recycling refund producer responsibility organization must require in a contract with a service provider that the service provider:

(1) meets performance standards established in an approved producer responsibility plan under this Act;

10400SB0702sam001 -35- LRB104 07000 BDA 24293 a (2) ensures that covered materials are sent to responsible markets;

and (3) provides documentation to the recycling refund producer responsibility organization and packaging producer responsibility organization on the amounts, covered materials types, and volumes of covered materials by covered service method.

(b) Bidding processes and ownership ability requirements are as follows:

(1) For infrastructure investments included in an approved packaging producer responsibility plan, a packaging producer responsibility organization or a recycling refund producer responsibility organization must use the competitive bidding processes and publicly post bid opportunities, except that preference must be given to existing facilities, providers of services, and holders of service accounts in the State for source reduction, reuse, collection, recycling, and composting of covered materials.

(2) No packaging producer responsibility organization or recycling refund producer responsibility organization may own or partially own infrastructure that is used to fulfill obligations under this Act, except in the following circumstances:

(A) a producer may hold an ownership stake in infrastructure used to fulfill obligations under this 10400SB0702sam001 -36- LRB104 07000 BDA 24293 a Act so long as the stake was held before enactment of this Act and the ownership stake is fully disclosed by the producer to the packaging producer responsibility organization;

or (B) after a bidding process described in paragraph (1) under which no service provider bids on the contract, the packaging producer responsibility organization or the recycling refund producer responsibility organization may make infrastructure investments identified under an approved packaging producer responsibility plan or recycling refund program plan to implement the requirements in this Act.

(c) Contracting rates requirements are as follows:

(1) The packaging producer responsibility organization shall directly contract to pay 100% of covered services for covered materials, exclusive of exempt materials.

The methodology for contract rates must consider estimated revenue received by service providers from the sale of covered materials based upon relevant material indices and incorporate relevant cost information identified by the needs assessment.

Contract rates must be annually updated and reflect the net costs for covered services for covered materials from covered entities, at a minimum.

(2) Contract rates must be based on the following, as applicable by the service provided:

10400SB0702sam001 -37- LRB104 07000 BDA 24293 a (A) the cost to collect covered material for recycling, a proportional share of composting, or reuse adjusted to reflect conditions that affect those costs, varied by region or jurisdiction in which the covered services are provided, including, but not limited to:

(i) the number and type of covered entities;

(ii) population density;

(iii) collections methods employed;

(iv) distance traveled by collection vehicles to consolidation or transfer facilities;

to reuse, recycling, or composting facilities;

and to responsible markets;

(v) other factors that may contribute to regional or jurisdictional cost differences;

(vi) the proportion of covered compostable materials within all source-separated compostable materials collected or managed through composting;

and (vii) the general quality of covered materials collected by service providers;

(B) the cost to transfer collected covered materials from consolidation or transfer facilities to reuse, processing, recycling, or composting facilities or to responsible markets;

(C) the cost to:

10400SB0702sam001 -38- LRB104 07000 BDA 24293 a (i) sort and process covered materials for sale or use and remove contamination from covered materials by a recycling or composting facility, less the average fair market value for that covered material based on market indices for the region;

and (ii) manage contamination removed from collected covered material;

(D) the administrative costs of service providers, including education, public awareness campaigns, and outreach program costs as applicable;

and (E) the costs of covered services for a reuse system or covered services provided for reusable covered materials and management of contamination.

(3) A service provider retains all revenue from the sale of covered materials.

Nothing in this Act may restrict a service provider from charging a fee for covered services of covered materials to the extent that payment from a packaging producer responsibility organization does not cover all costs of services, including continued investment and innovation in operations, operating profits, and returns on investments required by a service provider to provide sustainability of the services.

(4) Contract rates may be calculated per ton, by household, or by another unit of measurement under an 10400SB0702sam001 -39- LRB104 07000 BDA 24293 a approved producer responsibility plan.

(d) A producer responsibility organization or a recycling refund producer responsibility organization must establish a dispute resolution process utilizing third-party mediators for disputes related to payments.

Section 45.

Agency responsibilities.

The Agency must:

(1) appoint the initial membership of the advisory board as required under this Act;

(2) provide administrative and operating support to the advisory board;

(3) consult on the initial needs assessment and needs assessment updates that the packaging producer responsibility organization conducts, and modify requirements for needs assessments as it deems appropriate;

(4) review and determine whether to approve producer responsibility plans and amendments to producer responsibility plans;

(5) by January 1, 2028, develop:

(A) a list of covered materials determined to be recyclable or compostable statewide through systems in which covered materials are commingled into a recyclables stream and a separate compostables stream.

These covered materials must be collected at an optimal level of service and convenience for covered 10400SB0702sam001 -40- LRB104 07000 BDA 24293 a entities, at a minimum, wherever collection services for mixed municipal solid waste are available;

(B) a list of covered materials determined to be recyclable or compostable and collected statewide through systems other than the system required for covered materials on the list established in subparagraph (A);

and (C) a list of exempt materials that a specific federal or state health and safety requirement prevents the packaging from being source reduced or made reusable, recyclable, or compostable;

(6) in developing the lists under subparagraphs (A) and (B) of paragraph (5), the following criteria is to be used:

(A) current availability of recycling and composting collection services;

(B) recycling and composting processing infrastructure;

(C) capacity and technology for sorting covered materials;

(D) whether a covered material is of a type and form that is regularly sorted and aggregated into defined streams for recycling processes or is included in a relevant Institute of Scrap Recycling Industries specification or its successors;

(E) availability of responsible markets;

10400SB0702sam001 -41- LRB104 07000 BDA 24293 a (F) presence and amount of processing residuals and contamination;

(G) quantity of covered material estimated to be available and recoverable;

(H) projected future conditions for the criteria in subparagraphs (A) through (G);

and (I) other criteria or factors, as determined by the Agency;

(7) post on the Agency's website:

(A) the most recent registration materials submitted by the producer responsibility organizations;

(B) a list of registered service providers;

(C) the most recent packaging program needs assessments;

(D) any packaging plan or amendment submitted by a packaging producer responsibility organization that is in draft form during the public comment period;

(E) the most recent recyclable or compostable covered lists established as required under this Act;

(F) the list of exempt materials as defined in this Act and covered materials exempt from performance targets as approved in the producer responsibility plan;

(G) links to producer responsibility organization websites;

10400SB0702sam001 -42- LRB104 07000 BDA 24293 a (H) comments of the public, advisory board, and producer responsibility organizations on packaging producer plans and needs assessments, and, if any, the responses of the Agency to those comments;

and (I) links to adopted rules implementing this Act;

and (8) review and determine whether to approve the selection of independent auditors to perform an annual financial audit of each producer responsibility organization.

Section 50.

Packaging program needs assessments.

(a) Needs assessments are required as follows:

(1) On or before January 1, 2028, the packaging producer responsibility organization must complete any supplementary work to the needs assessment completed under Public Act 103-0383 such that the packaging producer responsibility organization has all information listed in subsection (b).

(2) On or before January 1, 2033, the packaging producer responsibility organization must provide an updated needs assessment every 5 years thereafter.

(3) The Agency may modify what the packaging producer responsibility organization is required to include in any required needs assessments.

(b) An initial needs assessment shall include:

10400SB0702sam001 -43- LRB104 07000 BDA 24293 a (1) identification of currently or recently introduced covered materials and covered materials types;

(2) tons of collected covered materials;

(3) the characteristics of recycling and composting programs, including a description of single-stream and dual-stream recycling systems offered in the State and prevalence of their use, average frequency of collection of covered materials for recycling and composting, types of collection containers used, commonly accepted materials for recycling and composting, and total costs by type of covered entity;

(4) processing capacity at recycling facilities, including total tons processed and sold, composition of tons processed and sold, current technologies used, and facility processing fees charged to collectors delivering covered materials for recycling;

(5) capacity of, technology used by, and characteristics of compost facilities to process and recover compostable covered materials;

(6) capacity and number of drop-off collection sites;

(7) capacity and number of transfer stations and transfer locations;

(8) average term length of residential recycling and composting collection contracts issued by political subdivisions and an assessment of contract cost structures;

10400SB0702sam001 -44- LRB104 07000 BDA 24293 a (9) an estimate of total annual collection and processing service costs based on registered service provider costs;

(10) available markets in the State for covered materials and the capacity of those markets;

and (11) covered materials sales by volume, weight, and covered materials types introduced by producers.

(c) All subsequent needs assessment updates must include at least the following:

(1) an evaluation of:

(A) existing source reduction, reuse, recycling, and composting, as applicable, for each covered materials type, including collection rates, recycling rates, composting rates, reuse rates, and return rates, as applicable, for each covered materials type;

(B) overall recycling rate, composting rate, reuse rate, and return rate for all covered materials;

and (C) the extent to which postconsumer recycled content, by the best estimate, is or could be incorporated into each covered materials type, as applicable, including a review of market and technical barriers to incorporating postconsumer materials into covered materials and of whether for certain covered materials more recycled content has a net negative environmental impact;

(2) an evaluation of covered materials in the 10400SB0702sam001 -45- LRB104 07000 BDA 24293 a disposal, recycling, and composting streams to determine the covered materials types and amounts within each stream, using new studies conducted by the Agency or publicly available and applicable studies;

(3) proposals for reuse, recycling, composting rates for each covered materials type that could reasonably be accomplished within a 5-year time frame in multiple units of measurement, including, but not limited to, unit-based, weight-based, and volume-based;

(4) recommended collection methods by covered materials type to maximize collection efficiency, maximize feedstock quality, and optimize service and convenience for collection of covered materials to be considered or that are included on lists established under this Act;

(5) proposed plans and metrics for how to measure progress in achieving performance targets;

(6) an inventory of the current system, including:

(i) infrastructure, capacity, performance for the existing covered services for covered materials operating in the State;

(ii) availability and cost of covered services for covered materials to covered entities and any other location where covered materials are introduced, including identification of disparities in the availability of these services in environmental justice areas compared with other areas and proposals for reducing or eliminating those disparities;

10400SB0702sam001 -46- LRB104 07000 BDA 24293 a (7) an evaluation of investments needed to increase source reduction, reuse, recycling, and composting rates of covered materials to meet the proposed performance targets in this Act;

(8) an assessment of the viability and robustness of markets for recyclable covered materials and the degree to which these markets can be considered responsible markets;

(9) an assessment of the level and causes of contamination of source-separated recyclable materials, source-separated compostable materials and collected reusables, and the impacts of contamination on service providers, including the cost to manage this contamination;

and (10) recommendations for meeting the criteria for an alternative collection program as established under this Act, and in every subsequent needs assessment after the initial needs assessment, a review of existing alternative collection programs for each covered material listed to determine if the program is meeting the criteria under this Act.

(d) In conducting a needs assessment, the packaging producer responsibility organization must:

(1) initiate a consultation process to obtain recommendations from the advisory board, political subdivisions, service providers and other interested parties regarding the type and scope of information that 10400SB0702sam001 -47- LRB104 07000 BDA 24293 a should be collected and analyzed in the needs assessment required by this Section;

(2) contract with a third party who is not a producer, a packaging producer responsibility organization, or a member of the advisory board to conduct the needs assessment;

and (3) prior to finalizing the needs assessment, make the draft needs assessment available for comment by the advisory board, the Agency, and the public.

(e) Data requirements shall be as follows:

(1) A service provider or other person with data or information necessary to complete a needs assessment must provide the data or information to the packaging producer responsibility organization contractor conducting the needs assessment upon request.

(2) The packaging producer responsibility organization contractor conducting the needs assessment must aggregate and anonymize the data or information, excluding location data necessary to assess needs, received from all parties under this Section.

Section 55.

Packaging producer program plan.

(a) On or before January 1, 2029, and every 5 years thereafter, a packaging producer responsibility organization must submit a packaging producer program plan to the Agency that describes the proposed operation by the organization of 10400SB0702sam001 -48- LRB104 07000 BDA 24293 a programs to fulfill the requirements of this Act and that incorporates the findings and results of needs assessments.

If there is more than one packaging producer responsibility organization, they must coordinate to submit a single packaging producer program plan.

Once approved, a packaging producer program plan remains in effect for 5 years, as amended, or until a subsequent packaging producer program plan is approved.

(b) The first packaging producer program plan must be implemented on or before January 1, 2030;

subsequent recycling refund program plans must be implemented within 6 months of approval by the Department.

(c) A packaging producer responsibility organization must submit a draft packaging producer program plan or draft amendment to the advisory board prior to submitting the draft plan or draft amendment to the Agency and must, prior to submission of the draft plan or draft amendment to the Agency, respond to advisory board comments and recommendations received within 60 days of providing the draft program plan or draft amendment to the advisory board and indicate whether those comments or recommendations were accepted or rejected.

(d) The content of the packaging producer program plan shall be as follows:

(1) A draft packaging producer program plan must include, at a minimum:

(A) performance targets established under this Act 10400SB0702sam001 -49- LRB104 07000 BDA 24293 a as applicable to each covered materials type to be accomplished within a 5-year period;

(B) proposed performance targets for reuse that are informed by the latest needs assessment, and the reuse performance target shall increase with each program plan;

(C) proposed performance targets for post-consumer recycled content for covered materials including paper products, glass, metal, and plastic that are informed by the latest needs assessment, consider technical barriers, and consider health and safety requirements;

(D) a description of the methods of collection, how collection service convenience metrics will be met, and processing infrastructure and covered services to be used for each covered materials type at covered entities, at a minimum, and how these will meet the performance targets established for covered materials:

(i) included on the recyclable list established in this Act;

(ii) included on the compostable list established in this Act;

(iii) that are reusable covered materials managed through a reuse system.

(E) proposals for exemptions from performance targets for covered materials that cannot be source 10400SB0702sam001 -50- LRB104 07000 BDA 24293 a reduced or made reusable, recyclable, or compostable due to federal or State health and safety requirements, identifying the specific federal or State requirements and their impact on the covered materials;

(F) a description of how, for each covered materials type, the producer responsibility organization will measure recycling, reuse, composting, and the inclusion of postconsumer recycled content, including the relevant unit of measurement;

(G) third-party certifications as required by the Agency or voluntarily undertaken;

(H) a budget identifying funding needs for each of the plan's 5 calendar years, producer fees, a description of the process used to calculate the fees, and an explanation of how the fees meet the requirements of this Act;

(I) a description of infrastructure investments, including goals and outcomes and a description of how the process to offer and select opportunities will be conducted in an open, competitive, and fair manner;

how it will address gaps in the system not met by service providers;

and potential financial and legal instruments to be used;

(J) an explanation of how the program will be paid for by the producer responsibility organization 10400SB0702sam001 -51- LRB104 07000 BDA 24293 a through fees from producers, without any new or additional consumer-facing fee to members of the public, businesses, service providers, the State or any political subdivisions, or any other person who is not a producer, unless the fee is:

(i) a deposit made in connection with a product's reuse, or recycling that can be redeemed by a consumer;

or (ii) a charge for service by a service provider, regardless of whether registered;

(K) a description of activities to be undertaken by the producer responsibility organization during each year to:

(i) foster the improved design of covered materials, as under this Act;

(ii) provide funding to expand and increase the convenience of source reduction, reuse, collection, recycling, and composting services to covered entities, at a minimum according to the order of the U.S.

Environmental Protection Agency waste management hierarchy;

(iii) provide for contract rates under this Act to service providers for statewide coverage of covered services at an optimal level of convenience and service for covered materials on the list established in this Act, to covered 10400SB0702sam001 -52- LRB104 07000 BDA 24293 a entities, at a minimum;

and (iv) monitor to ensure that postconsumer materials are delivered to responsible markets;

(L) include terms and conditions for service agreements with service providers and templates of the service agreements;

(M) performance standards for service providers as applicable to the service provided, including, but not limited to:

(i) accepting all covered materials on the recyclable or compostable list in this Act;

(ii) labor standards and safety practices including, but not limited to, safety programs, health benefits, and living wages;

and (iii) meets operating standards, such as capture rates, residual rates, and bale quality;

(N) a description of how the packaging producer responsibility organization will treat and protect nonpublic data submitted by service providers;

(O) a description of how the packaging producer responsibility organization will provide technical assistance to service providers in order to assist them in delivering covered materials to responsible markets;

(P) a description of how the packaging producer responsibility organization will increase public 10400SB0702sam001 -53- LRB104 07000 BDA 24293 a awareness, educate, and complete outreach activities that include culturally responsive materials and methods and evaluate the efficacy of these efforts;

(Q) proposed alternative collection programs;

(R) a description of how producers can purchase postconsumer materials from service providers at market prices if the producer is interested in obtaining recycled feedstock to achieve minimum postconsumer recycled content performance targets;

(S) a summary of consultations held with the advisory board and other interested parties to provide input to the producer responsibility plan, a list of recommendations that were incorporated into the producer responsibility plan as a result, and a list of rejected recommendations and the reasons for rejection;

(e) The packaging producer responsibility organization may at any time submit an amendment request to the agency regarding the lists in paragraph 5 of Section 45.

Section 60.

Recycling refund program plan.

(a) On or before January 1, 2028, and every 5 years thereafter, a recycling refund producer responsibility organization must submit a recycling refund program plan to the Agency that describes the proposed operation by the organization of the program to fulfill the requirements of 10400SB0702sam001 -54- LRB104 07000 BDA 24293 a this Act and that incorporates the findings and results of packaging program needs assessments conducted under this Act.

If there is more than one recycling refund producer responsibility organization, they must coordinate to submit a single recycling refund program plan.

Once approved, a recycling refund program plan remains in effect for 5 years, as amended, or until a subsequent recycling refund program plan is approved.

(b) The first recycling refund program plan must be implemented on or before January 1, 2029;

subsequent recycling refund program plans must be implemented within 6 months of approval by the Department.

(c) A recycling refund producer responsibility organization must submit a draft recycling refund producer program plan or draft amendment to the recycling refund advisory board prior to submitting the draft plan or draft amendment to the Agency and must, prior to submission of the draft plan or draft amendment to the Agency, respond to recycling refund advisory board comments and recommendations received within 60 days of providing the draft program plan or draft amendment to the recycling refund advisory board and indicate whether those comments or recommendations were accepted or rejected.

(d) The recycling refund program plan must contain the following:

(1) A list of the types of covered beverage containers 10400SB0702sam001 -55- LRB104 07000 BDA 24293 a that will be included in the recycling refund program, which at a minimum must be beverage containers that are:

(A) bottles and cans made of rigid plastic, glass bottles, or metal;

and (B) have a capacity between 40 milliliters and one gallon;

(2) Proposed targets and deadlines for reuse rates to be achieved;

(3) How the recycling refund producer responsibility organization will meet performance targets for redemption and reuse as described in this Act;

(4) How the performance targets will be measured;

(5) How the proposed network of redemption sites:

(A) satisfies the convenience standards and addresses the evaluation criteria established in this Act;

and (B) provides sufficient opportunity for consumers of limited economic means to get their applicable refund value immediately upon redemption;

(6) How deposits collected from consumers will be remitted to the recycling refund producer responsibility organization;

(7) What incentives the recycling refund producer responsibility organization will provide to retail establishments so that they choose to host covered beverage container collection mechanisms;

10400SB0702sam001 -56- LRB104 07000 BDA 24293 a (8) How the program will conduct outreach and provide convenient redemption:

(A) throughout the State;

(B) in rural, urban, and environmental justice areas;

and (C) to those that redeem relatively large amounts of covered beverage containers;

and (9) How beverage containers will be labeled or consumers otherwise made aware of the beverage containers eligible for the applicable refund value.

Section 65.

Plan and amendment review and approval procedure.

Review and approval procedure shall be as follows:

(1) The Agency must review and approve, deny, or request additional information for draft recycling refund program plans, packaging producer program plans, and draft plan amendments no later than 120 days after the date the Agency receives it from a packaging producer responsibility organization or recycling refund producer responsibility organization.