S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5062
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 18, 2025
                                ___________
 
 Introduced  by Sen. MARTINEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   producer responsibility
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 27 of the environmental conservation law is amended
 by adding a new title 34 to read as follows:
 
                                 TITLE 34
                      AFFORDABLE WASTE REDUCTION ACT
 SECTION 27-3401. SHORT TITLE.
         27-3403. DEFINITIONS.
         27-3405. ESTABLISH PROGRAM.
         27-3407. REGISTRATION OF PRODUCER  RESPONSIBILITY  ORGANIZATIONS
                    AND SERVICE PROVIDERS.
         27-3409. ESTABLISHMENT   OF   PRODUCER  RESPONSIBILITY  ADVISORY
                    BOARD.
         27-3411. DEPARTMENT RESPONSIBILITIES.
         27-3413. PRODUCER  RESPONSIBILITY  ADVISORY  BOARD  RESPONSIBIL-
                    ITIES.
         27-3415. PRODUCER RESPONSIBILITY ORGANIZATION RESPONSIBILITIES.
         27-3417. PRODUCER RESPONSIBILITIES.
         27-3419. SERVICE PROVIDER RESPONSIBILITIES.
         27-3421. NEEDS ASSESSMENTS.
         27-3423. STEWARDSHIP PLAN.
         27-3425. RECYCLABLE  OR  COMPOSTABLE  COVERED  MATERIALS  LISTS;
                    EXEMPT MATERIALS LIST.
         27-3427. PRODUCER FEES.
         27-3429. SERVICE PROVIDER; REIMBURSEMENT.
         27-3431. REPORTING.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09046-02-5
              

 S. 5062                             2
 
         27-3433. PRODUCER RESPONSIBILITY ORGANIZATION WEBSITES.
         27-3435. ANTICOMPETITIVE CONDUCT.
         27-3437. RULEMAKING.
         27-3439. PROVIDING INFORMATION.
         27-3441. DEPOSIT RETURN SYSTEM.
         27-3443. ENFORCEMENT.
         27-3445. PACKAGING PRODUCT STEWARDSHIP ACCOUNT.
 § 27-3401. SHORT TITLE.
   THIS  TITLE  SHALL  BE KNOWN AND MAY BE CITED AS THE "AFFORDABLE WASTE
 REDUCTION ACT".
 § 27-3403. DEFINITIONS.
   AS USED IN THIS TITLE, UNLESS CONTEXT OTHERWISE REQUIRES:
   1. "ADVISORY BOARD" OR "BOARD" MEANS THE PRODUCER RESPONSIBILITY ADVI-
 SORY BOARD ESTABLISHED UNDER SECTION 27-3409 OF THIS TITLE.
   2. "BRAND" MEANS A NAME, SYMBOL, WORD, OR MARK THAT IDENTIFIES A PROD-
 UCT AND ATTRIBUTES THE PRODUCT AND ITS COMPONENTS, INCLUDING  PACKAGING,
 TO THE BRAND OWNER.
   3.  "BRAND OWNER" MEANS A PERSON THAT OWNS OR LICENSES A BRAND OR THAT
 OTHERWISE HAS RIGHTS TO MARKET A PRODUCT UNDER THE BRAND, WHETHER OR NOT
 THE BRAND'S TRADEMARK IS REGISTERED.
   4. "COLLECTION RATE" MEANS THE AMOUNT OF A COVERED MATERIAL BY COVERED
 MATERIALS TYPE COLLECTED BY SERVICE PROVIDERS AND TRANSPORTED FOR  RECY-
 CLING OR COMPOSTING DIVIDED BY THE TOTAL AMOUNT OF THE TYPE OF A COVERED
 MATERIAL BY COVERED MATERIALS TYPE SOLD OR DISTRIBUTED INTO THE STATE BY
 THE  RELEVANT UNIT OF MEASUREMENT ESTABLISHED IN SECTION 27-3423 OF THIS
 TITLE.
   5. "COMPOSTABLE MATERIAL" MEANS A COVERED MATERIAL THAT:
   (A) HAS A THIRD-PARTY CERTIFICATION TO ASTM D6400, ASTM D6868, OR ASTM
 D8410, AND IS LABELED ACCORDINGLY; OR
   (B) IS DEMONSTRATED TO BE COMPRISED OF ONLY WOOD WITHOUT ANY  COATINGS
 OR ADDITIVES.
   6.  "COMPOSTING"  MEANS  THE  PROCESS TO CREATE A PRODUCT MANUFACTURED
 THROUGH THE CONTROLLED AEROBIC, BIOLOGICAL DECOMPOSITION OF  BIODEGRADA-
 BLE  MATERIALS.  THE  PRODUCT  HAS UNDERGONE MESOPHILIC AND THERMOPHILIC
 TEMPERATURES, WHICH SIGNIFICANTLY REDUCES THE VIABILITY OF PATHOGENS AND
 WEED SEEDS, AND STABILIZES THE CARBON SUCH  THAT  IT  IS  BENEFICIAL  TO
 PLANT  GROWTH.  COMPOST  IS  TYPICALLY USED AS A SOIL AMENDMENT, BUT MAY
 ALSO CONTRIBUTE PLANT NUTRIENTS.
   7. "COMPOSTING RATE" MEANS THE AMOUNT OF COMPOSTABLE COVERED  MATERIAL
 THAT  IS  MANAGED  THROUGH  COMPOSTING,  DIVIDED  BY THE TOTAL AMOUNT OF
 COMPOSTABLE COVERED MATERIAL SOLD OR DISTRIBUTED INTO THE STATE  BY  THE
 RELEVANT  UNIT  OF  MEASUREMENT  ESTABLISHED  IN SECTION 27-3423 OF THIS
 TITLE.
   8. "COVERED ENTITY" MEANS A PERSON OR LOCATION THAT  RECEIVES  COVERED
 SERVICES  FOR  COVERED  MATERIALS IN ACCORDANCE WITH THE REQUIREMENTS OF
 THIS TITLE, INCLUDING:
   (A) A SINGLE-FAMILY RESIDENCE;
   (B) A MULTI-FAMILY RESIDENCE;
   (C) A PUBLIC, NONPUBLIC, OR APPROVED PRIVATE SCHOOL OR  HIGHER  EDUCA-
 TION AND POSTSECONDARY INSTITUTIONS AS SUCH TERMS ARE USED IN THE EDUCA-
 TION  LAW;  CHILD  CARE  INSTITUTION  AS  DEFINED  IN SUBDIVISION TWO OF
 SECTION FOUR THOUSAND ONE OF THE EDUCATION LAW; AND ANY  OTHER  LOCATION
 WHERE EDUCATION OR CHILD CARE IS PROVIDED;
   (D)  A  NOT-FOR-PROFIT  CORPORATION  WITH  ANNUAL REVENUE OF LESS THAN
 THIRTY-FIVE MILLION DOLLARS; AND
 S. 5062                             3
 
   (E) A STATE AGENCY, OFFICE, AGENCY, OR INSTITUTION  OF  THE  STATE,  A
 POLITICAL  SUBDIVISION,  A  PUBLIC  AREA, THE LEGISLATURE, THE COURTS, A
 COUNTY, A STATUTORY  OR  HOME  RULE  CHARTER  CITY,  A  TOWN,  A  SCHOOL
 DISTRICT, A SPECIAL DISTRICT, OR OTHER GOVERNMENTAL UNIT.
   9.  "COVERED  MATERIAL"  MEANS  PACKAGING  AND PAPER PRODUCTS. COVERED
 MATERIAL DOES NOT INCLUDE EXEMPT MATERIALS.
   10. "COVERED MATERIALS TYPE" MEANS A SINGULAR  AND  SPECIFIC  TYPE  OF
 COVERED MATERIAL, SUCH AS PAPER, PLASTIC, METAL, OR GLASS THAT:
   (A)  CAN  BE  CATEGORIZED BASED ON DISTINGUISHING CHEMICAL OR PHYSICAL
 PROPERTIES, INCLUDING PROPERTIES THAT ALLOW A COVERED MATERIALS TYPE  TO
 BE  AGGREGATED INTO A DISCRETE COMMODITY CATEGORY FOR PURPOSES OF REUSE,
 RECYCLING, OR COMPOSTING; AND
   (B) IS BASED ON SIMILAR USES IN THE FORM OF A PRODUCT OR PACKAGE.
   11. "COVERED SERVICES" MEANS COLLECTING,  TRANSFERRING,  TRANSPORTING,
 SORTING,  PROCESSING,  RECOVERING,  PREPARING, OR OTHERWISE MANAGING FOR
 PURPOSES OF WASTE REDUCTION, REUSE, RECYCLING,  OR  COMPOSTING.  COVERED
 SERVICES DOES NOT MEAN ANY MANAGEMENT METHOD ACCORDING TO PARAGRAPHS (C)
 AND (D) OF SUBDIVISION ONE OF SECTION 27-0106 OF THIS ARTICLE.
   12.  "DE  MINIMIS  PRODUCER"  MEANS A PERSON THAT IN THEIR MOST RECENT
 FISCAL YEAR:
   (A) INTRODUCED LESS THAN FIVE  TONS  OF  COVERED  MATERIAL  INTO  THIS
 STATE; OR
   (B) EARNED GLOBAL GROSS REVENUES OF LESS THAN FIVE MILLION DOLLARS.
   13. "DROP-OFF COLLECTION SITE" MEANS A PHYSICAL LOCATION WHERE COVERED
 MATERIALS  ARE  ACCEPTED  FROM  THE PUBLIC AND THAT IS OPEN A MINIMUM OF
 TWELVE HOURS WEEKLY THROUGHOUT THE YEAR.
   14. "DISADVANTAGED COMMUNITIES" SHALL HAVE THE SAME MEANING AS  SUBDI-
 VISION FIVE OF SECTION 75-0101 OF THIS CHAPTER.
   15."EXEMPT  MATERIALS"  MEANS  MATERIALS, OR ANY PORTION OF MATERIALS,
 THAT:
   (A) ARE PACKAGING FOR INFANT FORMULA,  AS  DEFINED  IN  UNITED  STATES
 CODE, TITLE 21, SECTION 321(Z);
   (B)  ARE PACKAGING FOR MEDICAL FOOD, AS DEFINED IN UNITED STATES CODE,
 TITLE 21, SECTION 360EE(B)(3);
   (C) ARE PACKAGING FOR A FORTIFIED ORAL NUTRITIONAL SUPPLEMENT USED  BY
 PERSONS WHO REQUIRE SUPPLEMENTAL OR SOLE SOURCE NUTRITION TO MEET NUTRI-
 TIONAL  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;
   (D) 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;
   (E) ARE PACKAGING FOR MEDICAL EQUIPMENT OR PRODUCTS  USED  IN  MEDICAL
 SETTINGS  THAT  IS REGULATED BY THE UNITED STATES FOOD AND DRUG ADMINIS-
 TRATION, INCLUDING ASSOCIATED COMPONENTS AND CONSUMABLE  MEDICAL  EQUIP-
 MENT;
   (F) 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  ADMIN-
 ISTRATION  UNDER  THE  FEDERAL  FOOD,  DRUG,  AND COSMETIC TITLE, UNITED
 STATES CODE, TITLE 21, SECTION 301 ET SEQ., BY THE UNITED STATES DEPART-
 MENT OF AGRICULTURE UNDER THE FEDERAL  VIRUS-SERUM-TOXIN  TITLE,  UNITED
 STATES CODE, TITLE 21, SECTION 151 ET SEQ.;
 S. 5062                             4
 
   (G) ARE PACKAGING FOR PRODUCTS REGULATED BY THE UNITED STATES ENVIRON-
 MENTAL  PROTECTION  AGENCY UNDER THE FEDERAL INSECTICIDE, FUNGICIDE, AND
 RODENTICIDE TITLE, UNITED STATES CODE, TITLE 7, SECTION 136 ET SEQ.;
   (H)  ARE  PACKAGING  USED  TO  CONTAIN LIQUEFIED PETROLEUM GAS AND ARE
 DESIGNED TO BE REFILLED;
   (I) ARE PAPER PRODUCTS USED  FOR  A  NEWSPAPER'S  PRINT  PUBLICATIONS,
 INCLUDING SUPPLEMENTS OR ENCLOSURES, THAT HAS A CIRCULATION OF LESS THAN
 NINETY-FIVE  THOUSAND  THAT INCLUDE CONTENT DERIVED FROM PRIMARY SOURCES
 RELATED TO NEWS AND CURRENT EVENTS;
   (J) ARE PAPER PRODUCTS USED FOR A MAGAZINE'S  PRINT  PUBLICATION  THAT
 HAS  A  CIRCULATION OF LESS THAN NINETY-FIVE THOUSAND AND THAT PRIMARILY
 INCLUDES CONTENT DERIVED  FROM  PRIMARY  SOURCES  RELATED  TO  NEWS  AND
 CURRENT EVENTS;
   (K)  ARE  PACKAGING  USED  TO  CONTAIN HAZARDOUS OR FLAMMABLE PRODUCTS
 REGULATED BY THE 2012 FEDERAL OCCUPATIONAL SAFETY  AND  HEALTH  ADMINIS-
 TRATION  HAZARD  COMMUNICATION  STANDARD,  CODE  OF FEDERAL REGULATIONS,
 TITLE 29, SECTION 1910.1200, THAT PREVENT THE PACKAGING FROM BEING WASTE
 REDUCED OR MADE REUSABLE, RECYCLABLE, OR COMPOSTABLE, AS  DETERMINED  BY
 THE COMMISSIONER;
   (L) ARE PACKAGING THAT IS BEING COLLECTED AND PROPERLY MANAGED THROUGH
 A PAINT STEWARDSHIP PLAN APPROVED UNDER SECTION 27-2003 OF THIS ARTICLE;
   (M) ARE EXEMPT MATERIALS, AS DETERMINED BY THE DEPARTMENT UNDER SUBDI-
 VISION SIX OF SECTION 27-3425 OF THIS TITLE; OR
   (N) ARE COVERED MATERIALS THAT ARE:
   (I)  PACKAGING MATERIALS USED SOLELY IN TRANSPORTATION OR DISTRIBUTION
 TO NONCONSUMERS;
   (II) PACKAGING MATERIALS USED SOLELY  IN  BUSINESS-TO-BUSINESS  TRANS-
 ACTIONS  WHERE  A  COVERED MATERIAL IS NOT INTENDED TO BE DISTRIBUTED TO
 THE END CONSUMER;
   (III) PACKAGING MATERIALS THAT ARE NOT SOLD OR DISTRIBUTED TO  COVERED
 ENTITIES; AND
   (IV)  PACKAGING  MATERIALS THAT ARE USED FOR PRODUCTS SOLD OR DISTRIB-
 UTED OUTSIDE THE STATE;
   (O) ARE BEVERAGE CONTAINERS SUBJECT TO A RETURNABLE CONTAINER  DEPOSIT
 UNDER TITLE TEN OF THIS ARTICLE; AND
   (P)  ARE  NON-PACKAGING  PAPER  PRODUCTS  MADE  WITH MORE THAN SEVENTY
 PERCENT NEWLY HARVESTED WOOD PULP FIBER THAT  HAS  NOT  BEEN  PREVIOUSLY
 USED OR RECYCLED.
   16.  "GOVERNMENT  DATA"  MEANS  ALL DATA COLLECTED, CREATED, RECEIVED,
 MAINTAINED OR DISSEMINATED BY ANY GOVERNMENT ENTITY  REGARDLESS  OF  ITS
 PHYSICAL FORM, STORAGE MEDIA OR CONDITIONS OF USE.
   17.  "INDEPENDENT  AUDITOR" MEANS AN INDEPENDENT AND ACTIVELY LICENSED
 CERTIFIED PUBLIC ACCOUNTANT THAT IS:
   (A) RETAINED BY A PRODUCER RESPONSIBILITY ORGANIZATION;
   (B) NOT OTHERWISE EMPLOYED BY OR AFFILIATED WITH A PRODUCER  RESPONSI-
 BILITY ORGANIZATION; AND
   (C) QUALIFIED TO CONDUCT AN AUDIT UNDER STATE LAW.
   18.  "INFRASTRUCTURE  INVESTMENT"  MEANS  AN  INVESTMENT BY A PRODUCER
 RESPONSIBILITY ORGANIZATION THAT FUNDS OR REIMBURSES A PERSON FOR:
   (A) EQUIPMENT OR FACILITIES IN WHICH COVERED  MATERIALS  ARE  PREPARED
 FOR REUSE, RECYCLING, OR COMPOSTING; OR
   (B)  EQUIPMENT  OR FACILITIES USED FOR WASTE REDUCTION, REUSE, RECYCL-
 ING, OR COMPOSTING OF COVERED MATERIALS.
   19. "INTRODUCE" MEANS TO SELL, OFFER FOR SALE, DISTRIBUTE, OR  USE  TO
 SHIP A PRODUCT WITHIN OR INTO THIS STATE.
 S. 5062                             5
 
   20.  "NEEDS  ASSESSMENT"  MEANS  AN  ASSESSMENT  CONDUCTED PURSUANT TO
 SUBDIVISION FOUR OF SECTION 27-3421 OF  THIS  TITLE.  EXCEPT  WHERE  THE
 CONTEXT  REQUIRES  OTHERWISE,  NEEDS  ASSESSMENT MEANS THE MOST RECENTLY
 COMPLETED NEEDS ASSESSMENT.
   21.  "NONPUBLIC DATA" MEANS DATA NOT ON INDIVIDUALS MADE BY STATUTE OR
 FEDERAL LAW APPLICABLE TO THE DATA:
   (A) NOT ACCESSIBLE TO THE PUBLIC; AND
   (B) ACCESSIBLE TO THE SUBJECT, IF ANY, OF THE DATA.
   22. "PACKAGING" MEANS:
   (A) "PACKAGE" AS DEFINED IN SECTION 37-0203 OF THIS CHAPTER; AND
   (B) "PACKAGING COMPONENT" AS DEFINED IN SECTION 37-0203 OF THIS  CHAP-
 TER. PACKAGING DOES NOT INCLUDE EXEMPT MATERIALS.
   22.  "PAPER  PRODUCT" MEANS A PRODUCT MADE PRIMARILY FROM WOOD PULP OR
 OTHER CELLULOSIC FIBERS, BUT DOES NOT INCLUDE BOUND  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.
   23. "POST CONSUMER MATERIAL" MEANS  THE  MATERIALS  THAT  HAVE  SERVED
 THEIR INTENDED END USE AS CONSUMER ITEMS AND THAT HAVE BEEN SEPARATED OR
 DIVERTED  FROM THE WASTE STREAM FOR THE PURPOSES OF COLLECTION AND RECY-
 CLING AS A SECONDARY MATERIAL FEEDSTOCK. SUCH MATERIALS MAY ALSO INCLUDE
 RETURNS OF MATERIAL FROM THE DISTRIBUTION CHAIN. POST-CONSUMER  RECYCLED
 MANUFACTURER  CONTENT  DOES  NOT  INCLUDE  WASTE MATERIAL GENERATED BY A
 MANUFACTURER DURING OR AFTER THE COMPLETION OF A MANUFACTURER PROCESS.
   24. "POST CONSUMER 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.
   25. "PRIVATE DATA ON INDIVIDUALS" MEANS DATA MADE BY STATUTE OR FEDER-
 AL LAW APPLICABLE TO THE DATA:
   (A) NOT PUBLIC; AND
   (B) ACCESSIBLE TO THE INDIVIDUAL SUBJECT OF THE DATA.
   26. "PRODUCER" MEANS THE FOLLOWING PERSON RESPONSIBLE  FOR  COMPLIANCE
 WITH REQUIREMENTS UNDER THIS TITLE FOR A COVERED MATERIAL INTRODUCED:
   (A)  FOR ITEMS SOLD IN OR WITH PACKAGING AT A PHYSICAL RETAIL LOCATION
 IN THIS STATE:
   (I) IF THE ITEM IS SOLD IN OR WITH PACKAGING UNDER THE  BRAND  OF  THE
 ITEM MANUFACTURER OR IS SOLD IN PACKAGING THAT LACKS IDENTIFICATION OF A
 BRAND, THE PRODUCER IS THE PERSON THAT MANUFACTURES THE ITEM;
   (II) IF THERE IS NO PERSON TO WHICH SUBPARAGRAPH (I) OF THIS PARAGRAPH
 APPLIES,  THE PRODUCER IS THE PERSON THAT IS LICENSED TO MANUFACTURE AND
 SELL OR OFFER FOR SALE TO CONSUMERS IN THIS STATE AN ITEM WITH PACKAGING
 UNDER THE BRAND OR TRADEMARK OF ANOTHER MANUFACTURER OR PERSON;
   (III) IF NO PERSON DESCRIBED IN SUBPARAGRAPH (I) OR (II) OF THIS PARA-
 GRAPH APPLIES, THE PRODUCER IS THE BRAND OWNERS OF THE ITEM;
   (IV) IF THERE IS NO PERSON DESCRIBED  IN  SUBPARAGRAPH  (I),  (II)  OR
 (III)  OF  THIS  PARAGRAPH 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
   (V) IF NO PERSON DESCRIBED IN SUBPARAGRAPH (I), (II), (III) OR (IV) OF
 THIS  PARAGRAPH  APPLIES, THE PRODUCER IS THE PERSON THAT FIRST DISTRIB-
 UTES THE ITEM IN OR INTO THIS STATE;
   (B) FOR ITEMS SOLD OR DISTRIBUTED IN PACKAGING IN OR INTO  THIS  STATE
 VIA E-COMMERCE, REMOTE SALE, OR DISTRIBUTION:
 S. 5062                             6

   (I)  FOR  PACKAGING  USED TO DIRECTLY PROTECT OR CONTAIN THE ITEM, THE
 PRODUCER OF THE PACKAGING IS THE SAME AS THE PRODUCER  IDENTIFIED  UNDER
 PARAGRAPH (A) OF THIS SUBDIVISION; AND
   (II)  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;
   (C)  FOR  PACKAGING  THAT IS A COVERED MATERIAL AND IS NOT INCLUDED IN
 PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, THE PRODUCER OF THE  PACKAG-
 ING IS THE PERSON THAT FIRST DISTRIBUTES THE ITEM IN OR INTO THIS STATE;
   (D)  FOR PAPER PRODUCTS THAT ARE MAGAZINES, CATALOGS, TELEPHONE DIREC-
 TORIES, OR SIMILAR PUBLICATIONS, THE PRODUCER IS THE PUBLISHER;
   (E) FOR PAPER PRODUCTS NOT DESCRIBED PARAGRAPH (D)  OF  THIS  SUBDIVI-
 SION:
   (I)  IF  THE PAPER PRODUCT IS SOLD UNDER THE MANUFACTURER'S OWN BRAND,
 THE PRODUCER IS THE PERSON THAT MANUFACTURES THE PAPER PRODUCT;
   (II) IF THERE IS NO PERSON TO WHICH SUBPARAGRAPH (I) OF THIS PARAGRAPH
 APPLIES, THE PRODUCER IS THE PERSON THAT IS THE OWNER OR LICENSEE  OF  A
 BRAND OR TRADEMARK UNDER WHICH THE PAPER PRODUCT IS 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;
   (III) IF THERE IS NO PERSON TO WHICH SUBPARAGRAPH (I) OR (II) OF  THIS
 PARAGRAPH APPLIES, THE PRODUCER IS THE BRAND OWNER OF THE PAPER PRODUCT;
   (IV)  IF  THERE  IS  NO  PERSON DESCRIBED IN SUBPARAGRAPH (I), (II) OR
 (III) OF THIS PARAGRAPH WITHIN THE UNITED STATES APPLIES,  THE  PRODUCER
 IS  THE PERSON THAT IMPORTS THE PAPER PRODUCT INTO THE UNITED STATES FOR
 USE IN A COMMERCIAL ENTERPRISE THAT SELLS, OFFERS FOR SALE, OR  DISTRIB-
 UTES THE PAPER PRODUCT IN OR INTO THIS STATE; OR
   (V)  IF  THERE IS NO PERSON DESCRIBED IN SUBPARAGRAPH (I), (II), (III)
 OR (IV) OF THIS PARAGRAPH APPLIES, THE PRODUCER IS THE PERSON THAT FIRST
 DISTRIBUTES THE PAPER PRODUCT IN OR INTO THIS STATE; AND
   (F) A PERSON IS THE PRODUCER OF A COVERED MATERIAL SOLD,  OFFERED  FOR
 SALE,  OR  DISTRIBUTED  IN  OR INTO THIS STATE, AS DEFINED IN PARAGRAPHS
 (A), (B), (C), (D) AND (E) OF THIS SUBDIVISION, EXCEPT:
   (I) WHERE ANOTHER PERSON HAS  MUTUALLY  SIGNED  AN  AGREEMENT  WITH  A
 PRODUCER  AS  DEFINED  IN  PARAGRAPHS (A), (B), (C), (D) AND (E) OF THIS
 SUBDIVISION THAT CONTRACTUALLY ASSIGNS RESPONSIBILITY TO THE  PERSON  AS
 THE  PRODUCER, AND THE PERSON HAS JOINED A REGISTERED PRODUCER RESPONSI-
 BILITY ORGANIZATION AS THE RESPONSIBLE PRODUCER FOR THAT COVERED MATERI-
 AL UNDER THIS TITLE. IN  THE  EVENT  THAT  ANOTHER  PERSON  IS  ASSIGNED
 RESPONSIBILITY  AS  THE  PRODUCER  UNDER  THIS SUBDIVISION, THE PRODUCER
 UNDER PARAGRAPHS (A), (B), (C), (D) AND (E) OF  THIS  SUBDIVISION  SHALL
 PROVIDE  WRITTEN  CERTIFICATION  OF  THAT  CONTRACTUAL  AGREEMENT TO THE
 PRODUCER RESPONSIBILITY ORGANIZATION; AND
   (II) IF THE PRODUCER DESCRIBED IN PARAGRAPHS (A), (B),  (C),  (D)  AND
 (E)  OF  THIS  SUBDIVISION IS A BUSINESS OPERATED WHOLLY OR IN PART AS A
 FRANCHISE, THE PRODUCER IS THE FRANCHISOR IF THAT FRANCHISOR  HAS  FRAN-
 CHISEES THAT HAVE A COMMERCIAL PRESENCE WITHIN THE STATE.
   (G) "PRODUCER" DOES NOT INCLUDE:
   (I)  A  STATE,  A FEDERAL OR STATE AGENCY, A POLITICAL SUBDIVISION, OR
 OTHER GOVERNMENTAL UNIT;
   (II) A  REGISTERED  501(C)(3)  CHARITABLE  ORGANIZATION  OR  501(C)(4)
 SOCIAL WELFARE ORGANIZATION;
   (III) A DE MINIMIS PRODUCER;
   (IV) A MILL THAT USES ANY VIRGIN WOOD FIBER IN THE PRODUCTS IT PRODUC-
 ES; OR
 S. 5062                             7

   (V)  A  PAPER  MILL  THAT  PRODUCES  CONTAINER  BOARD DERIVED FROM ONE
 HUNDRED PERCENT POSTCONSUMER RECYCLED CONTENT AND NON-POSTCONSUMER RECY-
 CLED CONTENT.
   27.  "PRODUCER  RESPONSIBILITY  ORGANIZATION" MEANS A NONPROFIT CORPO-
 RATION THAT IS TAX EXEMPT UNDER CHAPTER 501(C)(3) OF THE FEDERAL  INTER-
 NAL  REVENUE  CODE AND THAT IS CREATED BY A GROUP OF PRODUCERS TO IMPLE-
 MENT ACTIVITIES UNDER THIS TITLE.
   28. "RECYCLING" MEANS A SERIES OF ACTIVITIES  BY  WHICH  DISCARDED  OR
 USED  MATERIALS  ARE  COLLECTED, SORTED, PROCESSED AND/OR CONVERTED INTO
 FEEDSTOCK AND ARE USED IN THE MANUFACTURE OF NEW PRODUCTS.
   29. "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  MATERI-
 ALS  SOLD OR DISTRIBUTED INTO THE STATE BY THE RELEVANT UNIT OF MEASURE-
 MENT ESTABLISHED IN SECTION 27-3423 OF THIS TITLE.
   30. "REFILL" MEANS THE CONTINUED  USE  OF  A  COVERED  MATERIAL  BY  A
 CONSUMER THROUGH A SYSTEM THAT IS:
   (A)  INTENTIONALLY  DESIGNED  AND  MARKETED  FOR REPEATED FILLING OF A
 COVERED MATERIAL TO REDUCE DEMAND FOR  NEW  PRODUCTION  OF  THE  COVERED
 MATERIAL;
   (B)  SUPPORTED  BY  ADEQUATE  LOGISTICS  AND INFRASTRUCTURE TO PROVIDE
 CONVENIENT ACCESS FOR CONSUMERS; AND
   (C) COMPLIANT WITH ALL APPLICABLE FEDERAL, STATE, AND LOCAL  STATUTES,
 RULES, ORDINANCES, AND OTHER LAWS GOVERNING HEALTH AND SAFETY.
   31. "RESPONSIBLE MARKET" MEANS A MATERIALS MARKET THAT:
   (A)  REUSES,  RECYCLES,  COMPOSTS, OR OTHERWISE RECOVERS MATERIALS AND
 DISPOSES OF WASTE AND CONTAMINANTS IN A MANNER THAT PROTECTS  THE  ENVI-
 RONMENT AND MINIMIZES RISKS TO PUBLIC HEALTH AND WORKER HEALTH AND SAFE-
 TY;
   (B)  COMPLIES  WITH ALL APPLICABLE FEDERAL, STATE, AND LOCAL STATUTES,
 RULES, ORDINANCES, AND OTHER LAWS GOVERNING ENVIRONMENTAL, HEALTH, SAFE-
 TY, AND FINANCIAL RESPONSIBILITY;
   (C) POSSESSES ALL REQUISITE LICENSES AND PERMITS REQUIRED BY A FEDERAL
 OR STATE AGENCY OR POLITICAL SUBDIVISION;
   (D) IF THE MARKET OPERATES IN THE STATE, MANAGES  WASTE  ACCORDING  TO
 THE  WASTE  MANAGEMENT GOAL AND PRIORITY ORDER OF WASTE MANAGEMENT PRAC-
 TICES STATED IN SECTION 27-0106 OF THIS ARTICLE; AND
   (E) MINIMIZES ADVERSE IMPACTS TO DISADVANTAGED COMMUNITIES AS  DEFINED
 IN THIS SECTION.
   32.  "RETURN  RATE"  MEANS  THE AMOUNT OF REUSABLE COVERED 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 MATERIALS SOLD OR DISTRIBUTED INTO  THE
 STATE BY THE RELEVANT UNIT OF MEASUREMENT ESTABLISHED IN SECTION 27-3423
 OF THIS TITLE.
   33. "REUSABLE" MEANS CAPABLE OF REUSE.
   34.  "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:
   (A)  INTENTIONALLY DESIGNED AND MARKETED TO BE USED MULTIPLE TIMES FOR
 ITS ORIGINAL INTENDED PURPOSE WITHOUT A CHANGE IN FORM;
   (B) DESIGNED FOR DURABILITY AND MAINTENANCE TO EXTEND ITS USEFUL  LIFE
 AND REDUCE DEMAND FOR NEW PRODUCTION OF THE COVERED MATERIAL;
   (C)  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
 S. 5062                             8
 
   (D)  COMPLIANT WITH ALL APPLICABLE FEDERAL, STATE, AND LOCAL STATUTES,
 RULES, ORDINANCES, AND OTHER LAWS GOVERNING HEALTH AND SAFETY.
   35.  "REUSE RATE" MEANS THE SHARE OF UNITS OF A REUSABLE COVERED MATE-
 RIAL SOLD OR DISTRIBUTED INTO THE STATE IN  A  CALENDAR  YEAR  THAT  ARE
 DEMONSTRATED AND DEEMED REUSABLE IN ACCORDANCE WITH AN APPROVED STEWARD-
 SHIP PLAN UNDER SECTION 27-3423 OF THIS TITLE.
   36.  "SERVICE PROVIDER" MEANS AN ENTITY THAT PROVIDES COVERED SERVICES
 FOR COVERED MATERIALS. A POLITICAL SUBDIVISION  THAT  PROVIDES  OR  THAT
 CONTRACTS  OR  OTHERWISE  ARRANGES WITH ANOTHER PARTY TO PROVIDE COVERED
 SERVICES FOR COVERED MATERIALS WITHIN ITS JURISDICTION MAY BE A  SERVICE
 PROVIDER REGARDLESS OF WHETHER IT PROVIDED, CONTRACTED FOR, OR OTHERWISE
 ARRANGED  FOR  SIMILAR  SERVICES  BEFORE  THE APPROVAL OF THE APPLICABLE
 STEWARDSHIP PLAN.
   37. "THIRD-PARTY CERTIFICATION" MEANS CERTIFICATION BY  AN  ACCREDITED
 INDEPENDENT  ORGANIZATION  THAT  A  STANDARD OR PROCESS REQUIRED BY THIS
 TITLE, OR BY A STEWARDSHIP PLAN APPROVED  UNDER  THIS  TITLE,  HAS  BEEN
 ACHIEVED.
   38. "TOXIC SUBSTANCE" MEANS A HIGH-PRIORITY CHEMICAL ADDED TO THE LIST
 OF  PROHIBITED  HIGH-PRIORITY CHEMICALS BY THE DEPARTMENT UNDER SUBDIVI-
 SION TWO OF SECTION 37-0905 OF THIS CHAPTER AND IS USED IN PACKAGING.
   39. "TRADE SECRET INFORMATION"  MEANS  GOVERNMENT  DATA,  INCLUDING  A
 FORMULA,  PATTERN,  COMPILATION,  PROGRAM,  DEVICE, METHOD, TECHNIQUE OR
 PROCESS:
   (A) THAT WAS SUPPLIED BY THE AFFECTED INDIVIDUAL OR ORGANIZATION;
   (B) THAT IS THE SUBJECT OF EFFORTS BY THE INDIVIDUAL  OR  ORGANIZATION
 THAT ARE REASONABLE UNDER THE CIRCUMSTANCES TO MAINTAIN ITS SECRECY; AND
   (C) THAT DERIVES INDEPENDENT ECONOMIC VALUE, ACTUAL OR POTENTIAL, FROM
 NOT  BEING  GENERALLY  KNOWN  TO, AND NOT BEING READILY ASCERTAINABLE BY
 PROPER MEANS, BY OTHER PERSONS WHO CAN OBTAIN ECONOMIC  VALUE  FROM  ITS
 DISCLOSURE OR USE.
   40. "WASTE REDUCTION" OR "SOURCE REDUCTION" (A) MEANS AN ACTIVITY THAT
 PREVENTS  GENERATION  OF  WASTE  OR THE INCLUSION OF TOXIC SUBSTANCES IN
 WASTE, INCLUDING:
   (I) REUSING A PRODUCT IN ITS ORIGINAL FORM;
   (II) INCREASING THE LIFE SPAN OF A PRODUCT;
   (III) REDUCING MATERIAL OR THE TOXICITY OF MATERIAL USED IN PRODUCTION
 OR PACKAGING; OR
   (IV) CHANGING PROCUREMENT, CONSUMPTION, OR WASTE GENERATION HABITS  TO
 RESULT IN SMALLER QUANTITIES OR LOWER TOXICITY OF WASTE GENERATED.
   (B)  WASTE  REDUCTION  OR SOURCE REDUCTION DOES NOT INCLUDE REUSE, BUT
 DOES INCLUDE REFILL, AS DEFINED IN THIS TITLE.
 § 27-3405. ESTABLISH PROGRAM.
   PRODUCERS SHALL IMPLEMENT AND FINANCE A STATEWIDE PROGRAM FOR  PACKAG-
 ING  AND  PAPER  PRODUCTS  IN ACCORDANCE WITH THIS TITLE THAT ENCOURAGES
 REDESIGN TO REDUCE THE GENERATION OF  COVERED  MATERIALS  WASTE  THROUGH
 WASTE  REDUCTION,  REUSE, RECYCLING, AND COMPOSTING AND BY PROVIDING FOR
 THE COLLECTION, TRANSPORTATION, AND PROCESSING OF USED COVERED MATERIALS
 FOR REUSE, RECYCLING, AND COMPOSTING.
 § 27-3407. REGISTRATION OF  PRODUCER  RESPONSIBILITY  ORGANIZATIONS  AND
              SERVICE PROVIDERS.
   1. (A) WITHIN SIX CALENDAR MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS
 SECTION, PRODUCERS SHALL APPOINT A PRODUCER RESPONSIBILITY ORGANIZATION.
 THE PRODUCER RESPONSIBILITY ORGANIZATION SHALL REGISTER WITH THE COMMIS-
 SIONER  BY JULY FIRST OF THE SECOND YEAR FOLLOWING THE EFFECTIVE DATE OF
 THIS TITLE, AND EACH JANUARY FIRST THEREAFTER BY SUBMITTING THE  FOLLOW-
 ING:
 S. 5062                             9
 
   (I)  CONTRACT INFORMATION FOR A PERSON RESPONSIBLE FOR IMPLEMENTING AN
 APPROVED STEWARDSHIP PLAN;
   (II)  A  LIST  OF  ALL MEMBER PRODUCERS THAT HAVE ENTERED INTO WRITTEN
 AGREEMENTS TO OPERATE UNDER AN APPROVED STEWARDSHIP PLAN ADMINISTERED BY
 THE PRODUCER RESPONSIBILITY ORGANIZATION AND, FOR EACH PRODUCER, A  LIST
 OF ALL BRANDS OF THE PRODUCER'S COVERED MATERIALS INTRODUCED;
   (III)  A  LIST  OF CURRENT BOARD MEMBERS AND THE EXECUTIVE DIRECTOR OF
 THE PRODUCER RESPONSIBILITY ORGANIZATION IF DIFFERENT  FROM  THE  PERSON
 RESPONSIBLE FOR IMPLEMENTING AN APPROVED STEWARDSHIP PLAN; AND
   (IV) DOCUMENTATION DEMONSTRATING ADEQUATE FINANCIAL RESPONSIBILITY AND
 FINANCIAL  CONTROLS  TO ENSURE PROPER MANAGEMENT OF FUNDS AND PAYMENT OF
 THE REGISTRATION FEE REQUIRED UNDER SUBDIVISION TWO OF THIS SECTION.
   (B) FOLLOWING THE APPROVAL  OF  THE  INITIAL  PRODUCER  RESPONSIBILITY
 ORGANIZATION  AND  THE  INITIAL  STEWARDSHIP PLAN, IF MORE THAN A SINGLE
 PRODUCER RESPONSIBILITY ORGANIZATION IS ESTABLISHED, THE  PRODUCERS  AND
 PRODUCER  RESPONSIBILITY  ORGANIZATIONS  SHALL  ESTABLISH A COORDINATING
 BODY AND PROCESS TO PREVENT  REDUNDANCY.  THE  COORDINATING  BODY  SHALL
 INTEGRATE:
   (I)  STEWARDSHIP  PLANS  OF  ALL PRODUCER RESPONSIBILITY ORGANIZATIONS
 INTO A SINGLE STEWARDSHIP PLAN THAT IMPLEMENTS ALL REQUIREMENTS OF  THIS
 TITLE  AND  ENCOMPASSES ALL PRODUCERS WHEN SUBMITTED TO THE COMMISSIONER
 FOR APPROVAL; AND
   (II) ANNUAL REPORTS OF ALL PRODUCER RESPONSIBILITY ORGANIZATIONS  INTO
 A  SINGLE  ANNUAL  REPORT THAT COVERS ALL REQUIREMENTS OF THIS TITLE AND
 ENCOMPASSES ALL PRODUCERS WHEN SUBMITTED TO THE COMMISSIONER.
   2. (A) BEGINNING ON JANUARY FIRST OF THE  FOURTH  YEAR  FOLLOWING  THE
 EFFECTIVE  DATE OF THIS SECTION, AS PART OF ITS ANNUAL REGISTRATION WITH
 THE COMMISSIONER, A PRODUCER RESPONSIBILITY ORGANIZATION SHALL SUBMIT TO
 THE COMMISSIONER A REGISTRATION FEE, AS DETERMINED BY THE  COMMISSIONER.
 BY  OCTOBER FIRST OF THE THIRD YEAR FOLLOWING THE EFFECTIVE DATE OF THIS
 SECTION, AND ANNUALLY THEREAFTER, THE COMMISSIONER SHALL PROVIDE WRITTEN
 NOTICE TO REGISTERED PRODUCER RESPONSIBILITY ORGANIZATIONS IN WRITING OF
 THE AMOUNT OF THE REGISTRATION FEE. IF THERE IS MORE THAN ONE REGISTERED
 PRODUCER RESPONSIBILITY ORGANIZATION, THE COORDINATING BODY DESCRIBED IN
 PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, SHALL EQUITABLY APPOR-
 TION PAYMENT OF THE REGISTRATION FEE  BETWEEN  ALL  REGISTERED  PRODUCER
 RESPONSIBILITY  ORGANIZATIONS.  THE  REGISTRATION FEE SHALL BE SET AT AN
 AMOUNT ANTICIPATED TO IN THE AGGREGATE MEET BUT NOT EXCEED  THE  COMMIS-
 SIONER'S  ESTIMATE  OF  THE COSTS REQUIRED TO PERFORM THE COMMISSIONER'S
 DUTIES AS DESCRIBED IN SECTION 27-3411 OF THIS TITLE  AND  TO  OTHERWISE
 ADMINISTER, IMPLEMENT, AND ENFORCE THIS TITLE.
   (B)  THE  COMMISSIONER  SHALL  ANNUALLY  RECONCILE  THE FEES PAID BY A
 PRODUCER RESPONSIBILITY ORGANIZATION UNDER  THIS  SUBDIVISION  WITH  THE
 ACTUAL  COSTS  INCURRED BY THE DEPARTMENT BY MEANS OF CREDITS OR REFUNDS
 TO OR ADDITIONAL PAYMENTS REQUIRED OF A PRODUCER  RESPONSIBILITY  ORGAN-
 IZATION, AS APPLICABLE.
   3. (A) WITHIN SIX CALENDAR MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS
 SECTION, PRODUCERS SHALL APPOINT A PRODUCER RESPONSIBILITY ORGANIZATION.
 THE  PRODUCER  RESPONSIBILITY  ORGANIZATION  SHALL  REGISTER  WITHIN SIX
 CALENDAR MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION,  WITH  THE
 COMMISSIONER BY SUBMITTING THE FOLLOWING:
   (I)  CONTRACT INFORMATION FOR A PERSON RESPONSIBLE FOR IMPLEMENTING AN
 APPROVED STEWARDSHIP PLAN;
   (II) A LIST OF CURRENT MEMBER PRODUCERS THAT HAVE ENTERED INTO WRITTEN
 AGREEMENTS TO OPERATE UNDER AN APPROVED STEWARDSHIP PLAN ADMINISTERED BY
 THE PRODUCER RESPONSIBILITY ORGANIZATION;
 S. 5062                            10
 
   (III) A PLAN FOR IDENTIFYING PRODUCERS AND  EXECUTING  WRITTEN  AGREE-
 MENTS  CONFIRMING  PRODUCERS  WILL OPERATE UNDER AN APPROVED STEWARDSHIP
 PLAN ADMINISTERED BY THE PRODUCER RESPONSIBILITY ORGANIZATION;
   (IV) A LIST OF CURRENT BOARD MEMBERS AND THE EXECUTIVE DIRECTOR OF THE
 PRODUCER  RESPONSIBILITY  ORGANIZATION  IF  DIFFERENT  THAN  THE  PERSON
 RESPONSIBLE FOR IMPLEMENTING APPROVED STEWARDSHIP PLANS; AND
   (V) DOCUMENTATION DEMONSTRATING ADEQUATE FINANCIAL RESPONSIBILITY  AND
 FINANCIAL  CONTROLS  TO ENSURE PROPER MANAGEMENT OF FUNDS AND PAYMENT OF
 THE IMPLEMENTATION FEE REQUIRED UNDER PARAGRAPH (C) OF THIS SUBDIVISION.
   (B) NOTWITHSTANDING THE OTHER PROVISIONS OF THIS SECTION, THE  COMMIS-
 SIONER MAY NOT ALLOW REGISTRATION OF MORE THAN ONE PRODUCER RESPONSIBIL-
 ITY  ORGANIZATION  UNDER  THIS SECTION BEFORE THE FIRST STEWARDSHIP PLAN
 APPROVED BY THE COMMISSIONER EXPIRES. IF MORE THAN ONE PRODUCER  RESPON-
 SIBILITY  ORGANIZATION APPLIES TO REGISTER UNDER THIS SECTION BEFORE THE
 FIRST STEWARDSHIP PLAN IS APPROVED BY THE COMMISSIONER, THE COMMISSIONER
 SHALL SELECT THE PRODUCER RESPONSIBILITY ORGANIZATION THAT  WILL  REPRE-
 SENT PRODUCERS UNTIL THE FIRST STEWARDSHIP PLAN EXPIRES AND, IF APPLICA-
 BLE,  SHALL RETURN THE FEE PAID BY APPLICANTS WHO ARE NOT SELECTED. WHEN
 SELECTING A PRODUCER RESPONSIBILITY ORGANIZATION, THE COMMISSIONER SHALL
 CONSIDER WHETHER THE PRODUCER RESPONSIBILITY ORGANIZATION:
   (I) HAS A GOVERNING BOARD CONSISTING OF  PRODUCERS  THAT  REPRESENT  A
 DIVERSITY OF COVERED MATERIALS INTRODUCED; AND
   (II)  DEMONSTRATES  ADEQUATE  FINANCIAL  RESPONSIBILITY  AND FINANCIAL
 CONTROLS TO ENSURE PROPER MANAGEMENT OF FUNDS.
   (C) WITHIN SEVEN CALENDAR MONTHS FOLLOWING THE EFFECTIVE DATE OF  THIS
 TITLE, AND ANNUALLY UNTIL FEBRUARY FIFTEENTH OF THE FOURTH CALENDAR YEAR
 FOLLOWING  THE  EFFECTIVE  DATE  OF  THIS  TITLE, THE COMMISSIONER SHALL
 PROVIDE WRITTEN NOTICE TO THE PRODUCER  RESPONSIBILITY  ORGANIZATION  OF
 THE COMMISSIONER'S ESTIMATES OF THE COST REQUIRED TO PERFORM THE COMMIS-
 SIONER'S  DUTIES  AS  DESCRIBED  IN  SECTION  27-3411 OF THIS TITLE. THE
 PRODUCER RESPONSIBILITY ORGANIZATION SHALL REMIT  PAYMENT  IN  FULL  FOR
 THESE  COSTS  TO  THE  COMMISSIONER WITHIN FORTY-FIVE DAYS OF RECEIPT OF
 SUCH NOTICE. THE PRODUCER RESPONSIBILITY ORGANIZATION  MAY  CHARGE  EACH
 MEMBER  PRODUCER  A  FEE  ACCORDING  TO  EACH PRODUCER'S UNIT-, WEIGHT-,
 VOLUME-, OR SALES-BASED MARKET SHARE OR BY ANOTHER METHOD IT  DETERMINES
 TO  BE AN EQUITABLE DETERMINATION OF EACH PRODUCER'S PAYMENT OBLIGATION,
 SO THAT THE AGGREGATE FEES CHARGED TO MEMBER PRODUCERS IS SUFFICIENT  TO
 PAY THE COMMISSIONER'S ESTIMATED COSTS IN FULL.
   4.  AFTER  THE  FIRST  STEWARDSHIP  PLAN  APPROVED BY THE COMMISSIONER
 EXPIRES, THE COMMISSIONER  MAY  ALLOW  REGISTRATION  OF  MORE  THAN  ONE
 PRODUCER RESPONSIBILITY ORGANIZATION IF:
   (A)  PRODUCERS OF A COVERED MATERIALS TYPE OR A SPECIFIC COVERED MATE-
 RIAL APPOINT A PRODUCER RESPONSIBILITY ORGANIZATION; OR
   (B) PRODUCERS ORGANIZE UNDER ADDITIONAL PRODUCER RESPONSIBILITY ORGAN-
 IZATIONS.
   5. WITHIN SIX CALENDAR MONTHS FOLLOWING THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  AND ANNUALLY THEREAFTER, A SERVICE PROVIDER SEEKING REIMBURSE-
 MENT FOR SERVICES PROVIDED UNDER AN APPROVED STEWARDSHIP PLAN  ACCORDING
 TO SECTION 27-3423 OF THIS TITLE SHALL REGISTER WITH THE COMMISSIONER BY
 SUBMITTING THE FOLLOWING INFORMATION:
   (A)  THE  CONTRACT  INFORMATION  FOR A PERSON REPRESENTING THE SERVICE
 PROVIDER;
   (B) THE ADDRESS OF THE SERVICE PROVIDER; AND
   (C) IF APPLICABLE TO SERVICES PROVIDED, A REPORT OF THE  TOTAL  AMOUNT
 BILLED  FOR  COLLECTION  FOR  COVERED ENTITIES, PROCESSING SERVICES, AND
 TRANSFER STATION OPERATIONS PROVIDED DURING THE PRECEDING CALENDAR  YEAR
 S. 5062                            11
 
 AND,  WHEN POSSIBLE, VALUES SHALL BE SEPARATED FOR COLLECTION, TRANSFER,
 AND PROCESSING.
   6.  ALL  FEES  RECEIVED  UNDER  THIS SECTION SHALL BE DEPOSITED IN THE
 STATE TREASURY AND CREDITED TO THE PACKAGING PRODUCT STEWARDSHIP ACCOUNT
 UNDER SECTION 27-3445 OF THIS TITLE.
 § 27-3409. ESTABLISHMENT OF PRODUCER RESPONSIBILITY ADVISORY BOARD.
   1. THE PRODUCER RESPONSIBILITY ADVISORY BOARD IS ESTABLISHED TO REVIEW
 ALL ACTIVITIES CONDUCTED BY PRODUCER RESPONSIBILITY ORGANIZATIONS  UNDER
 THIS  TITLE  AND  TO ADVISE THE COMMISSIONER AND PRODUCER RESPONSIBILITY
 ORGANIZATIONS REGARDING THE IMPLEMENTATION OF THIS TITLE.
   2. (A) WITHIN SIX CALENDAR MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS
 TITLE, THE COMMISSIONER SHALL ESTABLISH AND APPOINT THE INITIAL  MEMBER-
 SHIP OF THE ADVISORY BOARD. THE MEMBERSHIP OF THE BOARD SHALL CONSIST OF
 THE FOLLOWING:
   (I)  TWO  MEMBERS REPRESENTING MANUFACTURERS OF COVERED MATERIALS OR A
 STATEWIDE OR NATIONAL TRADE ASSOCIATION REPRESENTING SUCH MANUFACTURERS;
   (II) TWO MEMBERS REPRESENTING RECYCLING FACILITIES THAT MANAGE COVERED
 MATERIALS;
   (III) ONE MEMBER REPRESENTING A WASTE HAULER OR  A  STATEWIDE  ASSOCI-
 ATION REPRESENTING WASTE HAULERS;
   (IV)  ONE  MEMBER  REPRESENTING  RETAILERS  OF  COVERED MATERIALS OR A
 STATEWIDE TRADE ASSOCIATION REPRESENTING THOSE RETAILERS;
   (V) ONE MEMBER REPRESENTING A STATEWIDE NONPROFIT ENVIRONMENTAL ORGAN-
 IZATION;
   (VI) ONE MEMBER REPRESENTING A COMMUNITY-BASED NONPROFIT ENVIRONMENTAL
 JUSTICE ORGANIZATION;
   (VII) ONE MEMBER REPRESENTING A WASTE FACILITY THAT RECEIVES AND SORTS
 COVERED MATERIALS AND TRANSFERS THEM  TO  ANOTHER  FACILITY  FOR  REUSE,
 RECYCLING, OR COMPOSTING;
   (VIII)  ONE  MEMBER  REPRESENTING A FACILITY THAT RECEIVES COMPOSTABLE
 MATERIALS FOR COMPOSTING OR A STATEWIDE TRADE ASSOCIATION  THAT  REPRES-
 ENTS SUCH FACILITIES;
   (IX)  TWO  MEMBERS  REPRESENTING AN ENTITY THAT DEVELOPS OR OFFERS FOR
 SALE COVERED MATERIALS THAT ARE DESIGNED FOR REUSE OR REFILL  AND  MAIN-
 TAINED THROUGH A REUSE OR REFILL SYSTEM OR INFRASTRUCTURE OR A STATEWIDE
 OR NATIONAL TRADE ASSOCIATION THAT REPRESENTS SUCH ENTITIES;
   (X)  THREE  MEMBERS  REPRESENTING  ORGANIZATIONS OF POLITICAL SUBDIVI-
 SIONS, WITH AT LEAST ONE MEMBER  REPRESENTING  A  POLITICAL  SUBDIVISION
 WITH A POPULATION OF MORE THAN ONE MILLION;
   (XI)  TWO  MEMBERS REPRESENTING OTHER INTERESTED PARTIES OR ADDITIONAL
 MEMBERS OF INTERESTS REPRESENTED UNDER SUBPARAGRAPHS (I),  (II),  (III),
 (IV), (V), (VI), (VII), (VIII), (IX) AND (X) OF THIS PARAGRAPH AS DETER-
 MINED BY THE COMMISSIONER; AND
   (XII) ONE MEMBER REPRESENTING THE COMMISSIONER.
   (B)  IN MAKING APPOINTMENTS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVI-
 SION, THE COMMISSIONER:
   (I) MAY NOT APPOINT MEMBERS WHO ARE EMPLOYEES OF A  PRODUCER  REQUIRED
 TO  BE  MEMBERS  OF A PRODUCER RESPONSIBILITY ORGANIZATION IN THIS STATE
 UNDER THIS TITLE; AND
   (II) SHALL ENDEAVOR TO APPOINT MEMBERS FROM ALL REGIONS OF THE STATE.
   3. A MEMBER OF THE ADVISORY BOARD APPOINTED UNDER  SUBPARAGRAPH  (XII)
 OF PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION SERVES AT THE PLEAS-
 URE  OF  THE  COMMISSIONER.  ALL  OTHER MEMBERS SERVE FOR A TERM OF FOUR
 YEARS.   AFTER THE INITIAL  STEWARDSHIP  PLAN  IS  APPROVED,  SUBSEQUENT
 APPOINTMENTS  FOR  NINE  OF THE INITIAL APPOINTEES SHALL BE TWO YEARS SO
 THAT MEMBERSHIP TERMS ARE STAGGERED. MEMBERS MAY BE REAPPOINTED BUT  MAY
 S. 5062                            12
 
 NOT  SERVE MORE THAN EIGHT CONSECUTIVE YEARS. A MEMBER MAY BE REMOVED BY
 THE COMMISSIONER AT ANY TIME AT THE PLEASURE OF  THE  COMMISSIONER.  THE
 CHAIR  OF  THE  ADVISORY BOARD SHALL INFORM THE COMMISSIONER OF A MEMBER
 MISSING  THREE CONSECUTIVE MEETINGS. AFTER THE SECOND CONSECUTIVE MISSED
 MEETING AND BEFORE THE NEXT MEETING, THE CHAIR  OF  THE  ADVISORY  BOARD
 SHALL  NOTIFY  THE  MEMBER IN WRITING THAT THE MEMBER MAY BE REMOVED FOR
 MISSING THE NEXT MEETING. IN THE CASE  OF  A  VACANCY  ON  THE  ADVISORY
 BOARD,  THE  COMMISSIONER SHALL APPOINT A PERSON TO FILL THE VACANCY FOR
 THE REMAINDER OF THE UNEXPIRED TERM.
   4. (A) MEMBERS OF THE ADVISORY BOARD MAY BE COMPENSATED AT THE RATE OF
 FIFTY-FIVE DOLLARS PER DAY SPENT  ON  ADVISORY  BOARD  ACTIVITIES,  WHEN
 AUTHORIZED  BY  THE  ADVISORY  BOARD,  PLUS  ACTUAL EXPENSES NECESSARILY
 INCURRED IN THE DISCHARGE OF MEMBERS' OFFICIAL DUTIES. MEMBERS WHO, AS A
 RESULT OF TIME SPENT ATTENDING ADVISORY BOARD MEETINGS, INCUR CHILD CARE
 EXPENSES THAT WOULD NOT OTHERWISE HAVE BEEN INCURRED, MAY BE  REIMBURSED
 FOR THOSE EXPENSES UPON AUTHORIZATION BY THE ADVISORY BOARD.
   (B) MEMBERS WHO ARE STATE EMPLOYEES OR EMPLOYEES OF POLITICAL SUBDIVI-
 SIONS SHALL NOT RECEIVE THE DAILY COMPENSATION FOR ACTIVITIES THAT OCCUR
 DURING  WORKING  HOURS  FOR  WHICH  THEY ARE COMPENSATED BY THE STATE OR
 POLITICAL SUBDIVISION. HOWEVER, A STATE OR POLITICAL SUBDIVISION EMPLOY-
 EE MAY RECEIVE THE DAILY PAYMENT IF THE EMPLOYEE USES VACATION  TIME  OR
 COMPENSATORY TIME ACCUMULATED IN ACCORDANCE WITH A COLLECTIVE BARGAINING
 AGREEMENT  OR COMPENSATION PLAN FOR ADVISORY BOARD ACTIVITY. MEMBERS WHO
 ARE STATE EMPLOYEES OR EMPLOYEES OF POLITICAL SUBDIVISIONS OF THE  STATE
 MAY  RECEIVE  THE  EXPENSES  PROVIDED  FOR  IN  THIS  SECTION UNLESS THE
 EXPENSES ARE REIMBURSED BY ANOTHER SOURCE. MEMBERS WHO ARE STATE EMPLOY-
 EES OR EMPLOYEES OF POLITICAL SUBDIVISIONS OF THE  STATE  MAY  BE  REIM-
 BURSED  FOR  CHILD  CARE  EXPENSES ONLY FOR TIME SPENT ON ADVISORY BOARD
 ACTIVITIES THAT ARE OUTSIDE THEIR WORKING HOURS.
   (C) THE ADVISORY BOARD SHALL ADOPT INTERNAL STANDARDS PRESCRIBING WHAT
 CONSTITUTES A DAY SPENT ON ADVISORY BOARD  ACTIVITIES  FOR  PURPOSES  OF
 MAKING DAILY PAYMENTS UNDER THIS SUBDIVISION.
   5.  TWO-THIRDS  MAJORITY  OF  THE  VOTING  BOARD MEMBERS CONSTITUTES A
 QUORUM.  IF THERE IS A VACANCY IN THE MEMBERSHIP OF THE BOARD, A MAJORI-
 TY OF THE REMAINING VOTING MEMBERS OF THE BOARD CONSTITUTES A QUORUM.
   6. ACTION BY THE ADVISORY BOARD REQUIRES A QUORUM AND  A  MAJORITY  OF
 THOSE  PRESENT AND VOTING. ALL MEMBERS OF THE ADVISORY BOARD, EXCEPT THE
 MEMBER APPOINTED UNDER SUBPARAGRAPH (XII) OF PARAGRAPH (A)  OF  SUBDIVI-
 SION TWO OF THIS SECTION ARE VOTING MEMBERS OF THE BOARD.
   7.  THE  ADVISORY BOARD SHALL MEET AT LEAST TWO TIMES PER YEAR AND MAY
 MEET MORE FREQUENTLY UPON TEN DAYS' WRITTEN NOTICE AT THE REQUEST OF THE
 CHAIR OR A MAJORITY OF ITS MEMBERS.
   8. MEETINGS OF THE BOARD SHALL COMPLY WITH ARTICLE SEVEN OF THE PUBLIC
 OFFICERS LAW.
   9. AT ITS INITIAL MEETING, AND EVERY TWO YEARS THEREAFTER,  THE  ADVI-
 SORY BOARD SHALL ELECT A CHAIR AND VICE-CHAIR FROM AMONG ITS MEMBERS.
   10.  THE  COMMISSIONER  SHALL  PROVIDE  ADMINISTRATIVE  AND  OPERATING
 SUPPORT TO THE ADVISORY BOARD, INCLUDING COMPENSATION IN ACCORDANCE WITH
 SUBDIVISION FOUR OF THIS SECTION, AND MAY CONTRACT  WITH  A  THIRD-PARTY
 FACILITATOR  TO  ASSIST  IN ADMINISTERING THE ACTIVITIES OF THE ADVISORY
 BOARD, INCLUDING ESTABLISHING A WEBSITE OR LANDING PAGE ON  THE  DEPART-
 MENT'S WEBSITE.
   11.  THE  COMMISSIONER  SHALL  ASSIST THE ADVISORY BOARD IN DEVELOPING
 POLICIES AND PROCEDURES GOVERNING THE DISCLOSURE OF ACTUAL OR  PERCEIVED
 CONFLICTS  OF  INTEREST THAT ADVISORY BOARD MEMBERS MAY HAVE AS A RESULT
 OF THEIR EMPLOYMENT OR FINANCIAL HOLDINGS WITH RESPECT TO THEMSELVES  OR
 S. 5062                            13
 
 FAMILY  MEMBERS. EACH ADVISORY BOARD MEMBER IS RESPONSIBLE FOR REVIEWING
 THE CONFLICT OF INTEREST POLICIES  AND  PROCEDURES.  AN  ADVISORY  BOARD
 MEMBER  SHALL  DISCLOSE ANY INSTANCE OF ACTUAL OR PERCEIVED CONFLICTS OF
 INTEREST  AT EACH MEETING OF THE ADVISORY BOARD AT WHICH RECOMMENDATIONS
 REGARDING STEWARDSHIP PLANS, PROGRAMS,  OPERATIONS,  OR  ACTIVITIES  ARE
 MADE BY THE ADVISORY BOARD.
 § 27-3411. DEPARTMENT RESPONSIBILITIES.
   THE DEPARTMENT SHALL:
   1.  APPOINT  THE  INITIAL  MEMBERSHIP OF THE ADVISORY BOARD WITHIN SIX
 CALENDAR MONTHS  FOLLOWING  THE  EFFECTIVE  DATE  OF  THIS  SECTION,  AS
 REQUIRED UNDER SECTION 27-3409 OF THIS TITLE;
   2. PROVIDE ADMINISTRATIVE AND OPERATING SUPPORT TO THE ADVISORY BOARD,
 AS  REQUIRED  PURSUANT  TO  SUBDIVISION  TEN  OF SECTION 27-3409 OF THIS
 TITLE;
   3. COMPLETE A PRELIMINARY ASSESSMENT BY DECEMBER THIRTY-FIRST  OF  THE
 FIRST CALENDAR YEAR AFTER THE EFFECTIVE DATE OF THIS TITLE, AND COMPLETE
 AN  INITIAL  NEEDS  ASSESSMENT  BY  DECEMBER  THIRTY-FIRST OF THE SECOND
 CALENDAR YEAR AFTER THE EFFECTIVE DATE OF THIS  TITLE,  AND  UPDATE  THE
 NEEDS  ASSESSMENT  EVERY  FIVE YEARS THEREAFTER, AS REQUIRED PURSUANT TO
 SECTION 27-3421 OF THIS TITLE;
   4. APPROVE STEWARDSHIP  PLANS  AND  AMENDMENTS  TO  STEWARDSHIP  PLANS
 PURSUANT TO SECTION 27-3423 OF THIS TITLE;
   5.  PROVIDE  LISTS ESTABLISHED PURSUANT TO THE REQUIREMENTS OF SECTION
 27-3425 OF THIS TITLE TO ALL PRODUCER RESPONSIBILITY ORGANIZATIONS;
   6. POST ON THE DEPARTMENT'S WEBSITE:
   (A) THE MOST  RECENT  REGISTRATION  MATERIALS  SUBMITTED  BY  PRODUCER
 RESPONSIBILITY ORGANIZATIONS, INCLUDING ALL INFORMATION SUBMITTED PURSU-
 ANT  TO SUBPARAGRAPHS (I), (II) AND (IV) OF PARAGRAPH (A) OF SUBDIVISION
 ONE OF SECTION 27-3407 OF THIS TITLE;
   (B) A LIST OF REGISTERED SERVICE PROVIDERS;
   (C) THE MOST RECENT NEEDS ASSESSMENTS;
   (D) ANY STEWARDSHIP PLAN OR AMENDMENT SUBMITTED BY A PRODUCER  RESPON-
 SIBILITY  ORGANIZATION  UNDER  SECTION  27-3423 OF THIS TITLE THAT IS IN
 DRAFT FORM DURING THE PUBLIC COMMENT PERIOD;
   (E) THE MOST RECENT LISTS ESTABLISHED AS REQUIRED PURSUANT TO  SECTION
 27-3425 OF THIS TITLE;
   (F)  THE  LIST  OF  EXEMPT MATERIALS AND COVERED MATERIALS EXEMPT FROM
 PERFORMANCE TARGETS  AND  STATEWIDE  REQUIREMENTS  AS  APPROVED  IN  THE
 STEWARDSHIP PLAN;
   (G) LINKS TO PRODUCER RESPONSIBILITY ORGANIZATION WEBSITES;
   (H)  COMMENTS OF THE PUBLIC, ADVISORY BOARD, AND PRODUCER RESPONSIBIL-
 ITY ORGANIZATIONS ON THE DOCUMENTS LISTED IN PARAGRAPHS  (C),  (D),  (E)
 AND  (F)  OF THIS SUBDIVISION, AND, IF ANY, THE RESPONSES OF THE COMMIS-
 SIONER TO SUCH COMMENTS; AND
   (I) LINKS TO ADOPTED RULES IMPLEMENTING THIS TITLE;
   7. PROVIDE  PRODUCER  RESPONSIBILITY  ORGANIZATIONS  WITH  INFORMATION
 REGARDING  NEW  YORK  AND FEDERAL LAWS THAT PROHIBIT TOXIC SUBSTANCES IN
 COVERED MATERIALS, AND BEST  PRACTICES  TO  REDUCE  INTENTIONALLY  ADDED
 TOXIC SUBSTANCES AS IDENTIFIED IN THE NEEDS ASSESSMENT;
   8.  APPROVE THE SELECTION OF INDEPENDENT AUDITORS TO PERFORM AN ANNUAL
 FINANCIAL AUDIT OF EACH PRODUCER RESPONSIBILITY ORGANIZATION; AND
   9. CONSIDER AND RESPOND IN WRITING TO ALL  WRITTEN  COMMENTS  RECEIVED
 FROM THE ADVISORY BOARD.
 § 27-3413. PRODUCER RESPONSIBILITY ADVISORY BOARD RESPONSIBILITIES.
   THE PRODUCER RESPONSIBILITY ADVISORY BOARD SHALL:
 S. 5062                            14
 
   (A) CONVENE ITS INITIAL MEETING WITHIN EIGHT CALENDAR MONTHS FOLLOWING
 THE EFFECTIVE DATE OF THIS TITLE;
   (B)  CONSULT  WITH  THE  COMMISSIONER REGARDING THE SCOPE OF THE NEEDS
 ASSESSMENTS AND  PROVIDE  WRITTEN  COMMENTS  ON  NEEDS  ASSESSMENTS,  AS
 REQUIRED PURSUANT TO SUBDIVISION TWO OF SECTION 27-3421 OF THIS TITLE;
   (C)  ADVISE  ON THE DEVELOPMENT OF STEWARDSHIP PLANS AND AMENDMENTS TO
 STEWARDSHIP PLANS UNDER SECTION 27-3423 OF THIS TITLE;
   (D) SUBMIT COMMENTS TO PRODUCER RESPONSIBILITY  ORGANIZATIONS  AND  TO
 THE  COMMISSIONER  ON  ANY MATTER RELEVANT TO THE ADMINISTRATION OF THIS
 TITLE;
   (E) PROVIDE WRITTEN COMMENTS TO THE COMMISSIONER DURING ANY RULEMAKING
 PROCESS UNDERTAKEN BY THE COMMISSIONER PURSUANT TO  SECTION  27-3437  OF
 THIS TITLE; AND
   (F) COMPLY WITH ALL OTHER APPLICABLE REQUIREMENTS OF THIS TITLE.
 § 27-3415. PRODUCER RESPONSIBILITY ORGANIZATION RESPONSIBILITIES.
   A PRODUCER RESPONSIBILITY ORGANIZATION SHALL:
   (A)  REGISTER WITH THE COMMISSIONER, AS REQUIRED UNDER SECTION 27-3407
 OF THIS TITLE;
   (B) SUBMIT A STEWARDSHIP PLAN TO THE COMMISSIONER BY OCTOBER FIRST  OF
 THE  THIRD  YEAR FOLLOWING THE EFFECTIVE DATE OF THIS SECTION, AND EVERY
 FIVE YEARS THEREAFTER, AS REQUIRED UNDER SECTION 27-3423 OF THIS TITLE;
   (C) IMPLEMENT STEWARDSHIP PLANS APPROVED  BY  THE  COMMISSIONER  UNDER
 SECTION 27-3423 OF THIS TITLE;
   (D)  FORWARD  UPON RECEIPT FROM THE COMMISSIONER THE LISTS ESTABLISHED
 UNDER SECTION 27-3425 OF  THIS  TITLE  TO  ALL  SERVICE  PROVIDERS  THAT
 PARTICIPATE IN A STEWARDSHIP PLAN ADMINISTERED BY THE PRODUCER RESPONSI-
 BILITY ORGANIZATION;
   (E)  COLLECT  PRODUCER  FEES AS REQUIRED UNDER SECTION 27-3427 OF THIS
 TITLE;
   (F) SUBMIT THE REPORTS REQUIRED UNDER SECTION 27-3431 OF THIS TITLE;
   (G) ENSURE THAT PRODUCERS OPERATING UNDER A STEWARDSHIP PLAN  ADMINIS-
 TERED  BY  THE  PRODUCER  RESPONSIBILITY  ORGANIZATION  COMPLY  WITH THE
 REQUIREMENTS OF THE STEWARDSHIP PLAN AND WITH THIS TITLE;
   (H) EXPEL A PRODUCER FROM THE PRODUCER RESPONSIBILITY ORGANIZATION  IF
 EFFORTS  TO  RETURN THE PRODUCER TO COMPLIANCE WITH THE PLAN OR WITH THE
 REQUIREMENTS OF THIS TITLE ARE UNSUCCESSFUL;
   (I) NOTIFY THE COMMISSIONER WHEN A PRODUCER HAS BEEN EXPELLED;
   (J) CONSIDER AND RESPOND IN WRITING  TO  COMMENTS  RECEIVED  FROM  THE
 ADVISORY  BOARD,  INCLUDING  JUSTIFICATIONS  FOR NOT INCORPORATING BOARD
 RECOMMENDATIONS;
   (K) PROVIDE PRODUCERS WITH INFORMATION  REGARDING  STATE  AND  FEDERAL
 LAWS  THAT  PROHIBIT SUBSTANCES IN COVERED MATERIALS, INCLUDING SECTIONS
 37-0205, 37-0901 TO 37-0917 OF THIS CHAPTER, AND  ALL  LAWS  PROHIBITING
 TOXIC SUBSTANCES IN COVERED MATERIALS;
   (L) MAINTAIN A WEBSITE UNDER SECTION 27-3433 OF THIS TITLE;
   (M) NOTIFY THE COMMISSIONER WITHIN THIRTY DAYS OF A CHANGE MADE TO THE
 CONTRACT  INFORMATION  FOR  A  PERSON  RESPONSIBLE  FOR IMPLEMENTING THE
 STEWARDSHIP PLAN, TO BOARD MEMBERSHIP, OR TO THE EXECUTIVE  DIRECTOR  OF
 THE PRODUCER RESPONSIBILITY ORGANIZATION;
   (N) ASSIST SERVICE PROVIDERS TO IDENTIFY AND USE RESPONSIBLE MARKETS;
   (O)  REIMBURSE  REGISTERED  SERVICE PROVIDERS IN A TIMELY MANNER USING
 APPLICABLE REIMBURSEMENT RATES; AND
   (P) COMPLY WITH ALL OTHER APPLICABLE REQUIREMENTS OF THIS TITLE.
 § 27-3417. PRODUCER RESPONSIBILITIES.
 S. 5062                            15
 
   1. (A) AFTER ONE YEAR FOLLOWING THE EFFECTIVE DATE OF  THIS  TITLE,  A
 PRODUCER  SHALL  BE  A  MEMBER OF A PRODUCER RESPONSIBILITY ORGANIZATION
 REGISTERED IN THIS STATE.
   (B) AFTER JANUARY FIRST OF THE FIFTH YEAR FOLLOWING THE EFFECTIVE DATE
 OF THIS TITLE, NO PRODUCER MAY INTRODUCE COVERED MATERIALS, EITHER SEPA-
 RATELY  OR  WHEN  USED  TO  PACKAGE ANOTHER PRODUCT, UNLESS THE PRODUCER
 ENTERS INTO A WRITTEN AGREEMENT WITH A PRODUCER RESPONSIBILITY ORGANIZA-
 TION TO OPERATE UNDER AN APPROVED STEWARDSHIP PLAN.
   (C) AFTER JANUARY FIRST OF THE EIGHTH  YEAR  FOLLOWING  THE  EFFECTIVE
 DATE  OF  THIS TITLE, NO PRODUCER MAY INTRODUCE COVERED MATERIALS UNLESS
 COVERED SERVICES ARE  PROVIDED  FOR  THE  COVERED  MATERIALS  THROUGH  A
 PROGRAM  IN  A  STEWARDSHIP  PLAN  APPROVED  BY THE COMMISSIONER AND THE
 COVERED MATERIALS ARE:
   (I) INCLUDED ON THE LIST ESTABLISHED UNDER SUBDIVISION ONE OF  SECTION
 27-3425 OF THIS TITLE; OR
   (II) INCLUDED ON THE LIST ESTABLISHED UNDER SUBDIVISION TWO OF SECTION
 27-3425 OF THIS TITLE.
   (D)  A  PRODUCER  RESPONSIBILITY ORGANIZATION MAY PETITION THE COMMIS-
 SIONER FOR A TWO-YEAR EXTENSION TO COMPLY WITH THE REQUIREMENTS OF PARA-
 GRAPH (C) OF THIS SUBDIVISION. THE COMMISSIONER MAY APPROVE  THE  EXTEN-
 SION  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 SECTION 27-3425 OF THIS TITLE.
 THE PRODUCER RESPONSIBILITY ORGANIZATION MAY PETITION  THE  COMMISSIONER
 FOR  ADDITIONAL  ANNUAL  EXTENSIONS UNTIL JANUARY FIRST OF THE SIXTEENTH
 YEAR FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, IF THE PRODUCER RESPON-
 SIBILITY ORGANIZATION  DEMONSTRATES  THAT  MARKET  OR  TECHNICAL  ISSUES
 PREVENTING COMPLIANCE PERSIST.
   2. A PRODUCER SHALL:
   (A) IMPLEMENT THE REQUIREMENTS OF THE STEWARDSHIP PLAN UNDER WHICH THE
 PRODUCER OPERATES;
   (B) PAY PRODUCER FEES UNDER SECTION 27-3427 OF THIS TITLE; AND
   (C) COMPLY WITH ALL OTHER APPLICABLE REQUIREMENTS OF THIS TITLE.
 § 27-3419. SERVICE PROVIDER RESPONSIBILITIES.
   A  SERVICE  PROVIDER  RECEIVING  REIMBURSEMENT  OR  FUNDING  UNDER  AN
 APPROVED STEWARDSHIP PLAN SHALL:
   1. PROVIDE COVERED SERVICES FOR  COVERED  MATERIALS  INCLUDED  ON  THE
 LISTS  ESTABLISHED UNDER SECTION 27-3425 OF THIS TITLE, COVERED SERVICES
 FOR A REFILL SYSTEM, OR COVERED SERVICES FOR REUSABLE COVERED MATERIALS,
 AS APPLICABLE TO THE SERVICES OFFERED BY AND SERVICE AREA OF THE SERVICE
 PROVIDER;
   2. REGISTER WITH THE COMMISSIONER UNDER SECTION 27-3407 OF THIS TITLE;
   3. SUBMIT INVOICES TO THE  PRODUCER  RESPONSIBILITY  ORGANIZATION  FOR
 REIMBURSEMENT  FOR SERVICES RENDERED AS PROVIDED IN SECTIONS 27-3423 AND
 27-3429 OF THIS TITLE;
   4. MEET PERFORMANCE STANDARDS ESTABLISHED IN AN  APPROVED  STEWARDSHIP
 PLAN UNDER SECTION 27-3423 OF THIS TITLE;
   5. ENSURE THAT COVERED MATERIALS ARE SENT TO RESPONSIBLE MARKETS;
   6.  PROVIDE  DOCUMENTATION TO THE PRODUCER RESPONSIBILITY ORGANIZATION
 ON THE AMOUNTS, COVERED MATERIALS TYPES, AND VOLUMES OF COVERED  MATERI-
 ALS  BY COVERED SERVICE METHOD. THE PRODUCER RESPONSIBILITY ORGANIZATION
 WILL INCLUDE IN THE STEWARDSHIP PLAN WHEN THE DOCUMENT SHALL BE  PERIOD-
 ICALLY SUBMITTED TO THE PRODUCER RESPONSIBILITY ORGANIZATION.
   7.  DISPLAY THE SERVICE PROVIDER'S PRICE, MINUS THE REIMBURSEMENT FROM
 THE PRODUCER RESPONSIBILITY ORGANIZATION AS  DETERMINED  IN  SUBDIVISION
 S. 5062                            16
 
 FOUR  OF  SECTION  27-3429  OF THIS TITLE, WHEN INVOICING CUSTOMERS. THE
 BALANCE IS WHAT THE SERVICE PROVIDER MAY CHARGE THE CUSTOMER; AND
   8. COMPLY WITH ALL OTHER APPLICABLE REQUIREMENTS OF THIS TITLE.
 § 27-3421. NEEDS ASSESSMENTS.
   1.  (A)  BY DECEMBER THIRTY-FIRST OF THE FIRST CALENDAR YEAR AFTER THE
 EFFECTIVE DATE OF THIS TITLE, THE COMMISSIONER SHALL COMPLETE A PRELIMI-
 NARY ASSESSMENT ACCORDING TO THIS SECTION.
   (B) BY DECEMBER THIRTY-FIRST OF THE SECOND  CALENDAR  YEAR  AFTER  THE
 EFFECTIVE  DATE  OF  THIS  TITLE,  AND  EVERY FIVE YEARS THEREAFTER, THE
 COMMISSIONER  SHALL  COMPLETE  A  NEEDS  ASSESSMENT  ACCORDING  TO  THIS
 SECTION.  THE COMMISSIONER MAY ADJUST THE REQUIRED CONTENT IN A SPECIFIC
 NEEDS ASSESSMENT TO INFORM THE NEXT STEWARDSHIP PLAN.
   2. IN CONDUCTING A NEEDS ASSESSMENT, THE COMMISSIONER SHALL:
   (A) INITIATE A CONSULTATION PROCESS TO OBTAIN RECOMMENDATIONS FROM THE
 ADVISORY  BOARD,  POLITICAL  SUBDIVISIONS,  SERVICE  PROVIDERS, PRODUCER
 RESPONSIBILITY ORGANIZATIONS, AND OTHER INTERESTED PARTIES REGARDING THE
 TYPE AND SCOPE OF INFORMATION THAT SHOULD BE COLLECTED AND  ANALYZED  IN
 THE NEEDS ASSESSMENT REQUIRED BY THIS SECTION;
   (B)  CONTRACT  WITH  A  THIRD  PARTY WHO IS NOT A PRODUCER, A PRODUCER
 RESPONSIBILITY ORGANIZATION, OR  A  MEMBER  OF  THE  ADVISORY  BOARD  TO
 CONDUCT THE NEEDS ASSESSMENT; AND
   (C)  PRIOR  TO  FINALIZING  THE NEEDS ASSESSMENT, MAKE THE DRAFT NEEDS
 ASSESSMENT AVAILABLE FOR COMMENT BY THE ADVISORY BOARD, PRODUCER RESPON-
 SIBILITY ORGANIZATIONS, AND THE PUBLIC. THE COMMISSIONER  SHALL  RESPOND
 IN WRITING TO THE COMMENTS AND RECOMMENDATIONS OF THE ADVISORY BOARD AND
 PRODUCER RESPONSIBILITY ORGANIZATIONS.
   3.  A PRELIMINARY ASSESSMENT SHALL BE COMPLETED FOR A PRECEDING PERIOD
 OF NO LESS THAN TWELVE MONTHS AND NO MORE THAN THIRTY-SIX  MONTHS,  THAT
 INCLUDES:
   (A) IDENTIFICATION OF CURRENTLY OR RECENTLY INTRODUCED COVERED MATERI-
 ALS AND COVERED MATERIALS TYPES;
   (B) TONS OF COLLECTED COVERED MATERIALS;
   (C)  THE CHARACTERISTICS OF RECYCLING AND COMPOSTING PROGRAMS, INCLUD-
 ING 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;
   (D) PROCESSING CAPACITY AT RECYCLING FACILITIES, INCLUDING TOTAL  TONS
 PROCESSED AND SOLD, COMPOSITION OF TONS PROCESSED AND SOLD, THE TONS AND
 COMPOSITION  OF  MATERIALS  DISPOSED  OF,  IF  ANY, AND THE COST OF SUCH
 DISPOSAL, CURRENT TECHNOLOGIES UTILIZED, AND  FACILITY  PROCESSING  FEES
 CHARGED  TO  COLLECTORS DELIVERING COVERED MATERIALS FOR RECYCLING, THIS
 INCLUDES PROCEEDS FROM MATERIAL SALES  AND  VOLUME  OF  SOURCE  SEPARATE
 MATERIALS AND ANY DISPOSAL COSTS;
   (E)  CAPACITY  OF,  TECHNOLOGY USED BY, AND CHARACTERISTICS OF COMPOST
 FACILITIES TO PROCESS AND RECOVER COMPOSTABLE COVERED MATERIALS;
   (F) CAPACITY AND NUMBER OF DROP-OFF COLLECTION SITES;
   (G) CAPACITY AND NUMBER OF TRANSFER STATIONS AND TRANSFER LOCATIONS;
   (H) AVERAGE  TERM  LENGTH  OF  RESIDENTIAL  RECYCLING  AND  COMPOSTING
 COLLECTION  CONTRACTS ISSUED BY POLITICAL SUBDIVISIONS AND AN ASSESSMENT
 OF CONTRACTS COST STRUCTURES;
   (I) AN ESTIMATE OF TOTAL  ANNUAL  COLLECTION  AND  PROCESSING  SERVICE
 COSTS BASED ON REGISTERED SERVICE PROVIDER COSTS;
   (J)  AVAILABLE REGIONAL MARKETS FOR COVERED MATERIALS AND THE CAPACITY
 OF THOSE MARKETS; AND
 S. 5062                            17
 
   (K) COVERED MATERIALS SALES BY VOLUME, WEIGHT, AND  COVERED  MATERIALS
 TYPES INTRODUCED BY PRODUCERS.
   4. A NEEDS ASSESSMENT SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (A) AN EVALUATION OF:
   (I)  EXISTING  WASTE  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;
   (II)  OVERALL  RECYCLING RATE, COMPOSTING RATE, REUSE RATE, AND RETURN
 RATE FOR ALL COVERED MATERIALS; AND
   (III) 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;
   (B) AN EVALUATION OF COVERED MATERIALS IN THE DISPOSAL, RECYCLING, AND
 COMPOSTING  STREAMS TO DETERMINE THE COVERED MATERIALS TYPES AND AMOUNTS
 WITHIN EACH STREAM, USING NEW STUDIES CONDUCTED BY THE  COMMISSIONER  OR
 PUBLICLY AVAILABLE AND APPLICABLE STUDIES;
   (C)  PROPOSALS FOR A RANGE OF OUTCOMES FOR EACH COVERED MATERIALS TYPE
 TO BE ACCOMPLISHED WITHIN A FIVE-YEAR TIME FRAME IN  MULTIPLE  UNITS  OF
 MEASUREMENT,  INCLUDING BUT NOT LIMITED TO UNIT-BASED, WEIGHT-BASED, AND
 VOLUME-BASED, FOR EACH OF THE FOLLOWING:
   (I) WASTE REDUCTION;
   (II) REUSE RATE AND RETURN RATES;
   (III) RECYCLING RATES;
   (IV) COMPOSTING RATES; AND
   (V) POSTCONSUMER RECYCLED CONTENT, IF APPLICABLE;
   (D) PROPOSALS FOR A RANGE OF OUTCOMES FOR THE  CATEGORIES  ESTABLISHED
 IN SUBDIVISION SEVEN OF SECTION 27-3423 OF THIS TITLE, THAT CONSIDER:
   (I)  INFORMATION  CONTAINED  IN  OR USED TO PREPARE A NEEDS ASSESSMENT
 ACCORDING TO THIS SUBDIVISION;
   (II) GOALS AND REQUIREMENTS OF THE WASTE MANAGEMENT TITLE;
   (III) STATEWIDE REQUIREMENTS FOR GREENHOUSE GAS EMISSION LIMITS  UNDER
 SECTION 75-0107 OF THIS CHAPTER;
   (IV)  THE NEED FOR CONTINUOUS PROGRESS TOWARD OVERALL REDUCTION IN THE
 GENERATION OF COVERED MATERIALS WASTE AND THE COMPLETE REUSE, RECYCLING,
 OR COMPOSTING OF COVERED MATERIALS;
   (V) A  PREFERENCE  FOR  STATEWIDE  REQUIREMENTS  THAT  ACCOMPLISH  AND
 FURTHER THE GOALS AND REQUIREMENTS IN SUBPARAGRAPHS (II), (III) AND (IV)
 OF  THIS  PARAGRAPH  AS  SOON  AS  PRACTICABLE AND TO THE MAXIMUM EXTENT
 ACHIEVABLE; AND
   (VI) INFORMATION FROM PACKAGING AND PAPER PRODUCT  PRODUCER  RESPONSI-
 BILITY PROGRAMS OPERATING IN OTHER JURISDICTIONS;
   (E)  AN  EVALUATION OF THE FACTORS FOR EACH COVERED MATERIAL COLLECTED
 FOR RECYCLING OR  COMPOSTING  AS  ESTABLISHED  IN  SUBDIVISION  FOUR  OF
 SECTION 27-3425 OF THIS TITLE;
   (F)  RECOMMENDED COLLECTION METHODS BY COVERED MATERIALS TYPE TO MAXI-
 MIZE 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 IN SECTION  27-3425
 OF THIS TITLE;
   (G)  PROPOSED PLANS AND METRICS FOR HOW TO MEASURE PROGRESS IN ACHIEV-
 ING PERFORMANCE TARGETS AND STATEWIDE REQUIREMENTS;
   (H) AN EVALUATION OF OPTIONS FOR THIRD-PARTY CERTIFICATION  OF  ACTIV-
 ITIES TO MEET OBLIGATIONS OF THIS TITLE;
   (I) AN INVENTORY OF THE CURRENT SYSTEM, INCLUDING:
 S. 5062                            18
 
   (I)  INFRASTRUCTURE,  CAPACITY, PERFORMANCE, FUNDING LEVEL, AND METHOD
 AND SOURCES OF FINANCING FOR THE EXISTING COVERED SERVICES  FOR  COVERED
 MATERIALS OPERATING IN THE STATE;
   (II)  AN  ESTIMATE  OF TOTAL ANNUAL COSTS OF COVERED SERVICES BASED ON
 REGISTERED SERVICE PROVIDER COSTS; AND
   (III) 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 DISADVANTAGED COMMUNITIES COMPARED WITH OTHER AREAS
 AND PROPOSALS FOR REDUCING OR ELIMINATING THOSE DISPARITIES;
   (J)  AN  EVALUATION OF INVESTMENTS NEEDED TO INCREASE WASTE REDUCTION,
 REUSE, RECYCLING, AND COMPOSTING RATES OF COVERED MATERIALS ACCORDING TO
 THE RANGE OF PROPOSED PERFORMANCE TARGETS  AND  STATEWIDE  REQUIREMENTS,
 INCLUDING  INVESTMENTS  IN  EXISTING  AND  NEW INFRASTRUCTURE THAT WOULD
 ALSO:
   (I) MAINTAIN OR IMPROVE  OPERATIONS  OF  EXISTING  INFRASTRUCTURE  AND
 ACCOUNTS  FOR  WASTE  REDUCTION,  REUSE,  RECYCLING,  AND  COMPOSTING OF
 COVERED MATERIALS STATEWIDE;
   (II) EXPAND THE AVAILABILITY AND ACCESSIBILITY OF RECYCLING COLLECTION
 SERVICES FOR RECYCLABLE COVERED MATERIALS TO  ALL  COVERED  ENTITIES  TO
 OPTIMIZE SERVICE AND CONVENIENCE; AND
   (III) ESTABLISH AND EXPAND THE AVAILABILITY AND ACCESSIBILITY OF REUSE
 SERVICES FOR REUSABLE COVERED MATERIALS;
   (K)  A  RECOMMENDED  METHODOLOGY FOR APPLYING CRITERIA AND FORMULAS TO
 ESTABLISH REIMBURSEMENT RATES AS DESCRIBED IN SECTION  27-3429  OF  THIS
 TITLE;
   (L)  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;
   (M)  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;
   (N) AN ASSESSMENT OF CURRENT BEST PRACTICES TO INCREASE PUBLIC  AWARE-
 NESS,   EDUCATE,   AND   COMPLETE  OUTREACH  ACTIVITIES  ACCOUNTING  FOR
 CULTURALLY RESPONSIVE MATERIALS AND METHODS AND  AN  EVALUATION  OF  THE
 EFFICACY  OF  THESE  EFFORTS,  INCLUDING  ASSESSMENTS AND EVALUATIONS OF
 CURRENT BEST PRACTICES AND EFFORTS ON:
   (I) USING PRODUCT OR PACKAGING LABELS AS A MEANS OF INFORMING  CONSUM-
 ERS ABOUT ENVIRONMENTALLY SOUND USE AND MANAGEMENT OF COVERED MATERIALS;
   (II)  INCREASING  PUBLIC  AWARENESS  OF  HOW TO USE AND MANAGE COVERED
 MATERIALS IN AN ENVIRONMENTALLY SOUND MANNER AND  HOW  TO  ACCESS  WASTE
 REDUCTION, REUSE, RECYCLING, AND COMPOSTING SERVICES; AND
   (III)  ENCOURAGING  BEHAVIOR CHANGE TO INCREASE PARTICIPATION IN WASTE
 REDUCTION, REUSE, RECYCLING, AND COMPOSTING PROGRAMS;
   (O) RECOMMENDATIONS  FOR  MEETING  THE  CRITERIA  FOR  AN  ALTERNATIVE
 COLLECTION  PROGRAM  AS  ESTABLISHED  IN  SUBDIVISION  EIGHT  OF SECTION
 27-3423 OF THIS TITLE; AND
   (P) OTHER ITEMS IDENTIFIED BY THE  COMMISSIONER  THAT  SHALL  AID  THE
 CREATION  OF  THE STEWARDSHIP PLAN, ITS ADMINISTRATION, AND THE ENFORCE-
 MENT OF THIS TITLE.
   5. WHEN DETERMINING THE EXTENT TO WHICH ANY STATEWIDE  REQUIREMENT  OR
 PERFORMANCE  TARGET  UNDER  THIS  TITLE  HAS  BEEN ACHIEVED, INFORMATION
 CONTAINED IN A NEEDS ASSESSMENT SHALL SERVE AS  THE  BASELINE  FOR  THAT
 DETERMINATION, WHEN APPLICABLE.
 S. 5062                            19
 
   6.  (A)  A  SERVICE  PROVIDER OR OTHER PERSON WITH DATA OR INFORMATION
 NECESSARY TO COMPLETE A NEEDS  ASSESSMENT  SHALL  PROVIDE  THE  DATA  OR
 INFORMATION  TO  THE COMMISSIONER AND THE PRODUCER RESPONSIBILITY ORGAN-
 IZATION UPON REQUEST.
   (B)  A SERVICE PROVIDER OR OTHER PERSON PROVIDING THE DATA OR INFORMA-
 TION MAY SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER THAT THE  DATA  OR
 INFORMATION BE CLASSIFIED AS NONPUBLIC DATA. THE REQUEST SHALL SET FORTH
 THE STATUTORY GROUNDS AND THE REASONS THAT JUSTIFY THE CLASSIFICATION OF
 THE  DATA  OR  INFORMATION  AS  NOT  PUBLIC DATA. THE COMMISSIONER SHALL
 APPROVE THE REQUEST IF THE COMMISSIONER DETERMINES:
   (I) THE DATA OR INFORMATION CONSTITUTES TRADE  SECRET  INFORMATION  AS
 DEFINED IN SECTION 27-3403 OF THIS TITLE, OR SALES INFORMATION;
   (II)  DISCLOSURE  OF  THE  DATA OR INFORMATION WOULD TEND TO ADVERSELY
 AFFECT THE COMPETITIVE POSITION OF THE SERVICE PROVIDER OR OTHER PERSON,
 INCLUDING BUT NOT LIMITED TO DATA RELATED  TO  PROFITS,  SERVICE  RATES,
 FEES, OR BUSINESS EXPENSES; OR
   (III)  THE DATA OR INFORMATION IS OTHERWISE NONPUBLIC DATA WITH REGARD
 TO DATA NOT ON INDIVIDUALS, OR PRIVATE DATA ON INDIVIDUALS,  AS  DEFINED
 IN SECTION 27-3403 OF THIS TITLE.
   (C) THE CONTRACTOR CONDUCTING THE NEEDS ASSESSMENT SHALL AGGREGATE AND
 ANONYMIZE  THE  NOT  PUBLIC DATA OR INFORMATION, EXCLUDING LOCATION DATA
 NECESSARY TO ASSESS NEEDS, RECEIVED FROM ALL PARTIES UNDER THIS SUBDIVI-
 SION AND SHALL THEN INCLUDE THE AGGREGATED ANONYMIZED DATA IN THE  NEEDS
 ASSESSMENT.
 § 27-3423. STEWARDSHIP PLAN.
   1.  BY OCTOBER FIRST OF THE THIRD YEAR FOLLOWING THE EFFECTIVE DATE OF
 THIS TITLE, AND EVERY FIVE YEARS THEREAFTER, A  PRODUCER  RESPONSIBILITY
 ORGANIZATION  SHALL  SUBMIT  A STEWARDSHIP PLAN TO THE COMMISSIONER THAT
 DESCRIBES THE PROPOSED OPERATION BY  THE  ORGANIZATION  OF  PROGRAMS  TO
 FULFILL THE REQUIREMENTS OF THIS TITLE AND THAT REFLECTS THE FINDINGS OF
 THE  NEEDS  ASSESSMENTS.  ONCE  APPROVED,  A STEWARDSHIP PLAN REMAINS IN
 EFFECT FOR FIVE YEARS, AS AMENDED, OR  UNTIL  A  SUBSEQUENT  STEWARDSHIP
 PLAN IS APPROVED.
   2.  A  PRODUCER  RESPONSIBILITY  ORGANIZATION  SHALL  SUBMIT  A  DRAFT
 STEWARDSHIP PLAN OR DRAFT AMENDMENT TO THE ADVISORY BOARD AT LEAST SIXTY
 DAYS PRIOR TO SUBMITTING THE  DRAFT  PLAN  OR  DRAFT  AMENDMENT  TO  THE
 COMMISSIONER  TO  ALLOW  THE ADVISORY BOARD TO SUBMIT COMMENTS AND SHALL
 ADDRESS ADVISORY BOARD COMMENTS AND RECOMMENDATIONS PRIOR TO  SUBMISSION
 OF THE DRAFT PLAN OR DRAFT AMENDMENT TO THE COMMISSIONER.
   3. A DRAFT STEWARDSHIP PLAN SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (A)  PERFORMANCE  TARGETS  ESTABLISHED  UNDER SUBDIVISION FIVE OF THIS
 SECTION AS APPLICABLE TO EACH COVERED MATERIALS TYPE TO BE  ACCOMPLISHED
 WITHIN A FIVE-YEAR PERIOD;
   (B) 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 STATEWIDE REQUIRE-
 MENTS ESTABLISHED IN SUBDIVISION SEVEN OF THIS SECTION FOR COVERED MATE-
 RIALS:
   (I) INCLUDED ON THE LIST ESTABLISHED IN  SUBDIVISION  ONE  OF  SECTION
 27-3425 OF THIS TITLE;
   (II)  INCLUDED  ON  THE LIST ESTABLISHED IN SUBDIVISION TWO OF SECTION
 27-3425 OF THIS TITLE;
   (III) THAT ARE REUSABLE COVERED  MATERIALS  MANAGED  THROUGH  A  REUSE
 SYSTEM; AND
   (IV) THAT ARE CAPABLE OF REFILL AND MANAGED THROUGH A REFILL SYSTEM;
 S. 5062                            20
 
   (C)  PROPOSALS  FOR  EXEMPTIONS FROM PERFORMANCE TARGETS AND STATEWIDE
 REQUIREMENTS FOR COVERED MATERIALS THAT CANNOT BE WASTE REDUCED OR  MADE
 REUSABLE,  RECYCLABLE, OR COMPOSTABLE DUE TO FEDERAL OR STATE HEALTH AND
 SAFETY REQUIREMENTS, IDENTIFYING THE SPECIFIC FEDERAL OR STATE  REQUIRE-
 MENTS AND THEIR IMPACT ON THE COVERED MATERIALS;
   (D) A DESCRIPTION OF HOW, FOR EACH COVERED MATERIALS TYPE, THE PRODUC-
 ER  RESPONSIBILITY ORGANIZATION WILL MEASURE RECYCLING, WASTE REDUCTION,
 REUSE, COMPOSTING, AND THE INCLUSION OF POSTCONSUMER  RECYCLED  CONTENT,
 IN ACCORDANCE WITH SUBDIVISION SIX OF THIS SECTION;
   (E)  THIRD-PARTY  CERTIFICATIONS THAT WILL BE ACCEPTED BY THE PRODUCER
 RESPONSIBILITY ORGANIZATION;
   (F) A BUDGET IDENTIFYING FUNDING NEEDS FOR EACH  OF  THE  PLAN'S  FIVE
 CALENDAR  YEARS,  PRODUCER  FEES,  A  DESCRIPTION OF THE PROCESS USED TO
 CALCULATE THE FEES, AND AN EXPLANATION OF HOW THE FEES MEET THE REQUIRE-
 MENTS OF SECTION 27-3427 OF THIS TITLE;
   (G) A DESCRIPTION OF INFRASTRUCTURE INVESTMENTS, INCLUDING  GOALS  AND
 OUTCOMES AND A DESCRIPTION OF HOW THE PROCESS TO OFFER AND SELECT OPPOR-
 TUNITIES 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;
   (H) AN EXPLANATION OF HOW THE PROGRAM WILL BE PAID FOR BY THE PRODUCER
 RESPONSIBILITY ORGANIZATION 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 REFILL, REUSE, OR
 RECYCLING THAT CAN BE REDEEMED BY A CONSUMER; OR
   (II) A CHARGE FOR SERVICE BY A SERVICE PROVIDER, REGARDLESS OF WHETHER
 REGISTERED;
   (I) 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 PARA-
 GRAPH (C) OF SUBDIVISION ONE OF SECTION 27-3427 OF THIS TITLE;
   (II) PROVIDE FUNDING TO EXPAND AND INCREASE THE CONVENIENCE  OF  WASTE
 REDUCTION,  REUSE,  COLLECTION,  RECYCLING,  AND  COMPOSTING SERVICES TO
 COVERED ENTITIES, AT A MINIMUM, ACCORDING TO  THE  ORDER  OF  THE  WASTE
 MANAGEMENT HIERARCHY UNDER SECTION 27-0106 OF THIS ARTICLE;
   (III)  PROVIDE  FOR  REIMBURSEMENT RATES UNDER SECTION 27-3429 OF THIS
 TITLE 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 SUBDIVISION ONE OF SECTION 27-3425 OF THIS TITLE, TO
 COVERED ENTITIES, AT A MINIMUM; AND
   (IV) MONITOR TO ENSURE THAT POSTCONSUMER MATERIALS  ARE  DELIVERED  TO
 RESPONSIBLE MARKETS.
   (J) A DESCRIPTION OF HOW THE PRODUCER RESPONSIBILITY ORGANIZATION WILL
 PROMOTE  THE  OPPORTUNITY FOR ALL SERVICE PROVIDERS TO REGISTER WITH THE
 COMMISSIONER AND TO SUBMIT INVOICES FOR REIMBURSEMENT WITH THE  PRODUCER
 RESPONSIBILITY ORGANIZATION;
   (K)  A DESCRIPTION OF HOW THE PROGRAM WILL REIMBURSE SERVICE PROVIDERS
 UNDER AN APPROVED STEWARDSHIP PLAN,  INCLUDING  BUT  NOT  LIMITED  TO  A
 DESCRIPTION OF HOW THE PROGRAM SHALL ESTABLISH:
   (I)  A  METHODOLOGY TO CALCULATE DIFFERENTIATED REIMBURSEMENT RATES AS
 PROVIDED IN SUBDIVISION FOUR OF SECTION 27-3429 OF THIS TITLE;
   (II) A PROCESS FOR SERVICE PROVIDERS TO SUBMIT INVOICES AND  BE  REIM-
 BURSED FOR COVERED SERVICES PROVIDED TO COVERED ENTITIES;
 S. 5062                            21
 
   (III)  CLEAR  AND REASONABLE TIMELINES FOR REIMBURSEMENT, AT INTERVALS
 NO LONGER THAN MONTHLY UNLESS AGREED TO BY  A  SERVICE  PROVIDER  AND  A
 PRODUCER RESPONSIBILITY ORGANIZATION; AND
   (IV)  A  PROCESS  THAT  UTILIZES  A  THIRD-PARTY  MEDIATOR  TO RESOLVE
 DISPUTES THAT ARISE BETWEEN THE PRODUCER RESPONSIBILITY ORGANIZATION AND
 A SERVICE PROVIDER REGARDING THE DETERMINATION  OF  REIMBURSEMENT  RATES
 AND PAYMENT OF REIMBURSEMENTS;
   (L)  PERFORMANCE  STANDARDS FOR SERVICE PROVIDERS AS APPLICABLE TO THE
 SERVICE PROVIDED, INCLUDING BUT NOT LIMITED TO:
   (I) REQUIREMENTS THAT SERVICE PROVIDERS SHALL ACCEPT ALL COVERED MATE-
 RIALS ON THE LIST ESTABLISHED BY THE COMMISSIONER UNDER SUBDIVISION  ONE
 OF SECTION 27-3425 OF THIS TITLE; AND
   (II) APPLICABLE FEDERAL AND STATE LABOR AND SAFETY STANDARDS;
   (M) A DESCRIPTION OF HOW THE PRODUCER RESPONSIBILITY ORGANIZATION WILL
 TREAT AND PROTECT NONPUBLIC DATA SUBMITTED BY SERVICE PROVIDERS;
   (N) A DESCRIPTION OF HOW THE PRODUCER RESPONSIBILITY ORGANIZATION WILL
 PROVIDE TECHNICAL ASSISTANCE TO:
   (I)  SERVICE  PROVIDERS  IN ORDER TO ASSIST THEM IN DELIVERING COVERED
 MATERIALS TO RESPONSIBLE MARKETS;  THIS  INCLUDES  PERFORMANCE  FEEDBACK
 DATA AND CONTAMINATION DATA;
   (II)  PRODUCERS  REGARDING TOXIC SUBSTANCES IN COVERED MATERIALS; BEST
 PRACTICES IDENTIFIED IN THE NEEDS ASSESSMENT THAT PRODUCERS CAN TAKE  TO
 REDUCE  INTENTIONALLY  ADDED  TOXIC SUBSTANCES IN COVERED MATERIALS; AND
 BEST PRACTICES FOR VERIFYING REDUCTION THROUGH SUPPLIERS CERTIFICATES OF
 COMPLIANCE, TESTING, OR OTHER ANALYTICAL AND SCIENTIFICALLY DEMONSTRATED
 METHODOLOGY; AND
   (III) PRODUCERS TO MAKE CHANGES IN PRODUCT DESIGN  THAT  INCREASE  THE
 RECOVERABILITY  OR MARKETABILITY OF COVERED MATERIALS FOR REUSE, RECYCL-
 ING, OR COMPOSTING;
   (O) A DESCRIPTION OF HOW THE PRODUCER RESPONSIBILITY ORGANIZATION WILL
 INCREASE PUBLIC AWARENESS, EDUCATE, AND COMPLETE OUTREACH PRACTICES THAT
 INCLUDE CULTURALLY RESPONSIVE MATERIALS AND  METHODS  AND  EVALUATE  THE
 EFFICACY  OF  THESE  EFFORTS,  INCLUDING HOW THE PRODUCER RESPONSIBILITY
 ORGANIZATION WILL:
   (I) ASSIST PRODUCERS IN IMPROVING PRODUCT LABELS AS A MEANS OF INFORM-
 ING CONSUMERS ABOUT REFILLING, REUSING, RECYCLING, COMPOSTING, AND OTHER
 ENVIRONMENTALLY SOUND METHODS OF MANAGING COVERED MATERIALS;
   (II) INCREASE PUBLIC AWARENESS OF HOW TO USE AND MANAGE COVERED  MATE-
 RIALS  IN  AN  ENVIRONMENTALLY  SOUND  MANNER  AND  HOW  TO ACCESS WASTE
 REDUCTION, REUSE, RECYCLING, AND COMPOSTING SERVICES; AND
   (III) ENCOURAGE BEHAVIOR CHANGE TO  INCREASE  PARTICIPATION  IN  WASTE
 REDUCTION, REUSE, RECYCLING, AND COMPOSTING PROGRAMS;
   (P)  PROPOSED ALTERNATIVE COLLECTION PROGRAMS AS REQUIRED UNDER SUBDI-
 VISION EIGHT OF THIS SECTION;
   (Q) 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 AND STATEWIDE REQUIREMENTS; AND
   (R)  A SUMMARY OF CONSULTATIONS HELD WITH THE ADVISORY BOARD AND OTHER
 INTERESTED PARTIES TO PROVIDE INPUT TO THE STEWARDSHIP PLAN, A  LIST  OF
 RECOMMENDATIONS  THAT  WERE  INCORPORATED INTO THE STEWARDSHIP PLAN AS A
 RESULT, AND A LIST OF  REJECTED  RECOMMENDATIONS  AND  THE  REASONS  FOR
 REJECTION.
   4.  (A)  THE  COMMISSIONER  SHALL REVIEW AND APPROVE, DENY, OR REQUEST
 ADDITIONAL INFORMATION FOR A DRAFT STEWARDSHIP  PLAN  OR  A  DRAFT  PLAN
 AMENDMENT  NO  LATER  THAN  ONE  HUNDRED  TWENTY DAYS AFTER THE DATE THE
 S. 5062                            22
 
 COMMISSIONER RECEIVES SUCH PLAN FROM A PRODUCER RESPONSIBILITY ORGANIZA-
 TION. THE COMMISSIONER SHALL POST THE DRAFT PLAN OR DRAFT  AMENDMENT  ON
 THE  DEPARTMENT'S  WEBSITE  AND  ALLOW  PUBLIC  COMMENT FOR NO LESS THAN
 FORTY-FIVE  DAYS  BEFORE  APPROVING,  DENYING,  OR REQUESTING ADDITIONAL
 INFORMATION ON THE DRAFT PLAN OR DRAFT AMENDMENT.
   (B) IF THE COMMISSIONER DENIES OR REQUESTS ADDITIONAL INFORMATION  FOR
 A  DRAFT  PLAN  OR  DRAFT  AMENDMENT, THE COMMISSIONER SHALL PROVIDE THE
 PRODUCER RESPONSIBILITY ORGANIZATION WITH THE REASONS, IN WRITING,  THAT
 THE PLAN OR PLAN AMENDMENT DOES NOT MEET THE PLAN REQUIREMENTS OF SUBDI-
 VISION  THREE  OF THIS SECTION. THE PRODUCER RESPONSIBILITY ORGANIZATION
 HAS SIXTY DAYS FROM THE DATE THAT THE REJECTION  OR  REQUEST  FOR  ADDI-
 TIONAL  INFORMATION  IS RECEIVED TO SUBMIT TO THE COMMISSIONER ANY ADDI-
 TIONAL INFORMATION NECESSARY FOR THE APPROVAL OF THE DRAFT PLAN OR DRAFT
 AMENDMENT. THE COMMISSIONER SHALL REVIEW AND APPROVE OR  DISAPPROVE  THE
 REVISED DRAFT PLAN OR DRAFT AMENDMENT NO LATER THAN SIXTY DAYS AFTER THE
 DATE THE COMMISSIONER RECEIVES IT.
   (C)  A  PRODUCER RESPONSIBILITY ORGANIZATION MAY RESUBMIT A DRAFT PLAN
 OR DRAFT AMENDMENT TO THE COMMISSIONER ON NOT MORE THAN  TWO  OCCASIONS.
 IF  AFTER  THE SECOND RESUBMISSION, THE COMMISSIONER DETERMINES THAT THE
 DRAFT PLAN OR DRAFT AMENDMENT DOES NOT MEET  THE  PLAN  REQUIREMENTS  OF
 THIS TITLE, THE COMMISSIONER SHALL MODIFY THE DRAFT PLAN OR DRAFT AMEND-
 MENT  AS  NECESSARY  FOR  IT  TO MEET THE REQUIREMENTS OF THIS TITLE AND
 APPROVE IT.
   (D) UPON RECOMMENDATION BY THE ADVISORY BOARD, OR UPON THE COMMISSION-
 ER'S OWN INITIATIVE, THE COMMISSIONER MAY  REQUIRE  AN  AMENDMENT  TO  A
 STEWARDSHIP  PLAN  IF  THE  COMMISSIONER DETERMINES THAT AN AMENDMENT IS
 NECESSARY TO ENSURE THAT THE PRODUCER RESPONSIBILITY ORGANIZATION  MAIN-
 TAINS COMPLIANCE WITH THE REQUIREMENTS OF THIS TITLE. A PRODUCER RESPON-
 SIBILITY ORGANIZATION MAY ALSO SUBMIT A PLAN AMENDMENT FOR APPROVAL.
   5. (A) THE PRODUCER RESPONSIBILITY ORGANIZATION SHALL PROPOSE PERFORM-
 ANCE  TARGETS  BASED  ON  THE  NEEDS  ASSESSMENT THAT MEET THE STATEWIDE
 REQUIREMENTS IN SUBDIVISION SEVEN OF THIS SECTION THAT SHALL BE INCLUDED
 IN A STEWARDSHIP PLAN APPROVED UNDER THIS SECTION.  PERFORMANCE  TARGETS
 SHALL INCLUDE REUSE RATES, RETURN RATES, RECYCLING RATES, AND COMPOSTING
 RATES  AND TARGETS FOR WASTE REDUCTION AND POSTCONSUMER RECYCLED CONTENT
 BY COVERED MATERIALS TYPE, AS APPLICABLE, THAT ARE TO BE ACHIEVED BY THE
 END OF THE STEWARDSHIP PLAN'S TERM. THE PRODUCER  RESPONSIBILITY  ORGAN-
 IZATION  SHALL  SELECT THE UNIT THAT IS MOST APPROPRIATE TO MEASURE EACH
 PERFORMANCE TARGET AS INFORMED BY THE NEEDS ASSESSMENT.
   (B) THE COMMISSIONER, IN CONSULTATION WITH  THE  ADVISORY  BOARD,  MAY
 REQUIRE  THAT  A PRODUCER RESPONSIBILITY ORGANIZATION OBTAIN THIRD-PARTY
 CERTIFICATION OF ANY ACTIVITY OR ACHIEVEMENT OF ANY STANDARD REQUIRED BY
 THIS TITLE IF A THIRD-PARTY CERTIFICATION IS READILY  AVAILABLE,  DEEMED
 APPLICABLE,  AND  OF  REASONABLE  COST. THE COMMISSIONER SHALL PROVIDE A
 PRODUCER RESPONSIBILITY ORGANIZATION WITH NOTICE OF AT  LEAST  ONE  YEAR
 PRIOR  TO  REQUIRING  USE  OF THIRD-PARTY CERTIFICATION UNDER THIS PARA-
 GRAPH.
   6. (A) FOR  PURPOSES  OF  DETERMINING  WHETHER  RECYCLING  PERFORMANCE
 TARGETS  ARE  BEING  MET,  EXCEPT  AS  MODIFIED  BY  THE COMMISSIONER, A
 STEWARDSHIP PLAN SHALL PROVIDE A METHODOLOGY FOR MEASURING THE AMOUNT OF
 RECYCLED MATERIAL.
   (B) FOR PURPOSES OF DETERMINING WHETHER  WASTE  REDUCTION  PERFORMANCE
 TARGETS  ARE  BEING  MET, A STEWARDSHIP PLAN SHALL PROVIDE A METHODOLOGY
 FOR MEASURING THE AMOUNT OF WASTE REDUCTION OF COVERED  MATERIALS  IN  A
 MANNER  THAT  CAN BE USED TO DETERMINE THE EXTENT TO WHICH THE AMOUNT OF
 MATERIAL USED FOR A COVERED MATERIAL CAN BE REDUCED TO WHAT IS NECESSARY
 S. 5062                            23
 
 TO EFFICIENTLY DELIVER A PRODUCT WITHOUT DAMAGE OR  SPOILAGE,  OR  OTHER
 MEANS  OF  COVERED  MATERIAL REDESIGN TO REDUCE OVERALL USE AND MAINTAIN
 RECYCLABILITY, COMPOSTABILITY, OR REUSABILITY.
   (C)  FOR PURPOSES OF DETERMINING WHETHER REUSE PERFORMANCE TARGETS ARE
 BEING MET, A STEWARDSHIP PLAN SHALL PROVIDE A METHODOLOGY FOR  MEASURING
 THE  AMOUNT OF REUSABLE COVERED MATERIALS AT THE POINT AT WHICH REUSABLE
 COVERED MATERIALS MEET THE FOLLOWING CRITERIA  AS  DEMONSTRATED  BY  THE
 PRODUCER AND APPROVED BY THE COMMISSIONER:
   (I)  WHETHER  THE  AVERAGE MINIMUM NUMBER OF CYCLES OF REUSES WITHIN A
 RECOGNIZED REUSE SYSTEM HAS BEEN MET BASED ON THE  NUMBER  OF  TIMES  AN
 ITEM SHALL BE REUSED FOR IT TO HAVE LOWER ENVIRONMENTAL FACTORS THAN THE
 SINGLE-USE VERSIONS OF THOSE ITEMS; AND
   (II)  WHETHER  THE  DEMONSTRATED  OR RESEARCH-BASED ANTICIPATED RETURN
 RATE OF THE COVERED MATERIAL TO THE REUSE SYSTEM HAS BEEN MET.
   (D) FOR PURPOSES OF DETERMINING WHETHER POSTCONSUMER RECYCLED  CONTENT
 PERFORMANCE  TARGETS  ARE  BEING MET, A STEWARDSHIP PLAN SHALL PROVIDE A
 METHODOLOGY FOR  MEASURING  POSTCONSUMER  RECYCLED  CONTENT  ACROSS  ALL
 PRODUCERS  FOR  A  COVERED  MATERIALS TYPE WHERE PRODUCERS MAY DETERMINE
 THEIR POSTCONSUMER RECYCLED CONTENT BASED ON THEIR UNITED STATES  MARKET
 TERRITORY IF STATE-SPECIFIC POSTCONSUMER RECYCLED CONTENT IS IMPRACTICAL
 TO DETERMINE.
   (E)  FOR OTHER PERFORMANCE TARGETS, THE PRODUCER RESPONSIBILITY ORGAN-
 IZATION SHALL PROPOSE METHODOLOGIES FOR REVIEW AND APPROVAL AS  PART  OF
 THE STEWARDSHIP PLAN BASED ON FINDINGS FROM THE NEEDS ASSESSMENT.
   7.  (A)  A  PRODUCER  RESPONSIBILITY  ORGANIZATION  SHALL IMPLEMENT AN
 ALTERNATIVE COLLECTION PROGRAM FOR  COVERED  MATERIALS  INCLUDED  ON  AN
 ALTERNATIVE  COLLECTION  LIST ESTABLISHED PURSUANT TO SUBDIVISION TWO OF
 SECTION 27-3425 OF THIS TITLE, THAT:
   (I) PROVIDES YEAR-ROUND,  CONVENIENT,  STATEWIDE  COLLECTION  OPPORTU-
 NITIES,  INCLUDING AT LEAST ONE DROP-OFF COLLECTION SITE LOCATED IN EACH
 COUNTY;
   (II) PROVIDES TIERS OF SERVICE FOR COLLECTION, CONVENIENCE, NUMBER  OF
 DROP-OFF COLLECTION SITES, AND ADDITIONAL COLLECTION SYSTEMS BASED ON:
   (A) COUNTY POPULATION SIZE;
   (B) COUNTY POPULATION DENSITY; AND
   (C)  EACH  CLASS  OF TOWN PURSUANT TO SECTION TEN OF THE TOWN LAW, AND
 THE SIZE CITY AS SUCH TERM IS USED  IN  THE  GENERAL  CITY  LAW  AND  AS
 DEFINED IN SECTION TWO OF THE SECOND CLASS CITIES LAW;
   (III) ENSURES MATERIALS ARE SENT TO RESPONSIBLE MARKETS;
   (IV)  USES  EDUCATION  AND OUTREACH STRATEGIES THAT CAN BE EXPECTED TO
 SIGNIFICANTLY INCREASE CONSUMER AWARENESS OF THE PROGRAM THROUGHOUT  THE
 STATE; AND
   (V)  ACCURATELY MEASURES THE AMOUNT OF EACH COVERED MATERIAL COLLECTED
 AND THE APPLICABLE PERFORMANCE TARGET AND STATEWIDE REQUIREMENT.
   (B) A PROPOSAL FOR AN ALTERNATIVE COLLECTION PROGRAM SHALL INCLUDE:
   (I) THE TYPE, NUMBER, AND LOCATION OF EACH COLLECTION OPPORTUNITY;
   (II) A DESCRIPTION OF HOW EACH OF THE PROGRAM REQUIREMENTS ESTABLISHED
 IN PARAGRAPH (A) OF THIS SUBDIVISION WILL BE MET; AND
   (III) PERFORMANCE TARGETS FOR EACH COVERED MATERIAL, AS APPLICABLE, TO
 BE MANAGED THROUGH AN ALTERNATIVE COLLECTION PROGRAM.
   (C) EVERY SUBSEQUENT NEEDS ASSESSMENT AFTER THE INITIAL NEEDS  ASSESS-
 MENT  SHALL INCLUDE A REVIEW OF EXISTING ALTERNATIVE COLLECTION PROGRAMS
 FOR EACH COVERED  MATERIAL  LISTED  UNDER  SUBDIVISION  TWO  OF  SECTION
 27-3425 OF THIS TITLE, TO DETERMINE IF THE PROGRAM IS MEETING THE CRITE-
 RIA ESTABLISHED IN PARAGRAPH (A) OF THIS SUBDIVISION.
 S. 5062                            24
 
 § 27-3425. RECYCLABLE  OR  COMPOSTABLE  COVERED  MATERIALS LISTS; EXEMPT
              MATERIALS LIST.
   1.  BY JULY FIRST OF THE FOURTH CALENDAR YEAR AFTER THE EFFECTIVE DATE
 OF THIS TITLE, THE COMMISSIONER SHALL DEVELOP A LIST OF COVERED  MATERI-
 ALS DETERMINED TO BE RECYCLABLE OR COMPOSTABLE STATEWIDE THROUGH SYSTEMS
 WHERE  COVERED  MATERIALS ARE COMMINGLED INTO A RECYCLABLES STREAM AND A
 SEPARATE COMPOSTABLES STREAM. SUCH COVERED MATERIALS SHALL BE  COLLECTED
 AT  AN OPTIMAL LEVEL OF SERVICE AND CONVENIENCE FOR COVERED ENTITIES, AT
 A MINIMUM, WHEREVER COLLECTION SERVICES FOR MIXED MUNICIPAL SOLID  WASTE
 ARE AVAILABLE.
   2.  BY JULY FIRST OF THE FOURTH CALENDAR YEAR AFTER THE EFFECTIVE DATE
 OF THIS TITLE, THE COMMISSIONER SHALL COMPLETE A LIST OF COVERED MATERI-
 ALS DETERMINED TO BE RECYCLABLE OR COMPOSTABLE AND  COLLECTED  STATEWIDE
 THROUGH  SYSTEMS OTHER THAN THE SYSTEM REQUIRED FOR COVERED MATERIALS ON
 THE LIST ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION.
   3. THE COMMISSIONER SHALL CONSULT WITH THE  ADVISORY  BOARD,  PRODUCER
 RESPONSIBILITY ORGANIZATIONS, SERVICE PROVIDERS, POLITICAL SUBDIVISIONS,
 AND  OTHER  INTERESTED  PARTIES  TO  DEVELOP  OR AMEND THE RECYCLABLE OR
 COMPOSTABLE COVERED MATERIALS LISTS AND SHALL  REVIEW  ANY  REQUESTS  BY
 INTERESTED PARTIES FOR ADDITION OR REMOVAL OF COVERED MATERIALS FROM THE
 LISTS CREATED UNDER THIS SECTION.
   4.  IN  DEVELOPING  THE  LISTS  UNDER SUBDIVISIONS ONE AND TWO OF THIS
 SECTION, THE COMMISSIONER MAY CONSIDER THE FOLLOWING CRITERIA:
   (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 SPECIFI-
 CATION OR ITS SUCCESSORS;
   (E) AVAILABILITY OF RESPONSIBLE MARKETS;
   (F) PRESENCE AND AMOUNT OF PROCESSING RESIDUALS AND CONTAMINATION;
   (G) QUANTITY OF COVERED MATERIAL ESTIMATED TO BE AVAILABLE AND  RECOV-
 ERABLE;
   (H)  PROJECTED  FUTURE  CONDITIONS FOR THE CRITERIA IN PARAGRAPHS (A),
 (B), (C), (D), (E), (F) AND (G) OF THIS SUBDIVISION; AND
   (I) OTHER CRITERIA OR FACTORS, AS DETERMINED BY THE COMMISSIONER.
   5. THE COMMISSIONER MAY AMEND A LIST COMPLETED UNDER THIS  SECTION  AT
 ANY  TIME  AND  SHALL  PROVIDE  AMENDED LISTS TO PRODUCER RESPONSIBILITY
 ORGANIZATIONS WITHIN A REASONABLE  AMOUNT  OF  TIME  AFTER  ADOPTING  AN
 AMENDMENT.  PRODUCER  RESPONSIBILITY ORGANIZATIONS SHALL PROVIDE AMENDED
 LISTS TO SERVICE PROVIDERS AFTER RECEIVING THE  AMENDMENT  AND  WORK  TO
 INCORPORATE  CHANGES  IN  RELEVANT  SERVICE PROVIDER REIMBURSEMENT RATES
 WITHIN A YEAR.
   6. (A) A PRODUCER MAY REQUEST THE COMMISSIONER, ON A  FORM  PRESCRIBED
 BY THE COMMISSIONER, TO CLASSIFY AS AN EXEMPT MATERIAL ONE OR MORE TYPES
 OF  PACKAGING. THE COMMISSIONER SHALL SUBMIT THE REQUEST TO THE ADVISORY
 BOARD FOR REVIEW AND COMMENT BEFORE APPROVING OR DENYING THE REQUEST.
   (B) THE COMMISSIONER MAY APPROVE THE REQUEST ONLY IF THE  COMMISSIONER
 DETERMINES  THAT  A SPECIFIC FEDERAL OR STATE HEALTH AND SAFETY REQUIRE-
 MENT PREVENTS THE PACKAGING FROM BEING WASTE REDUCED OR  MADE  REUSABLE,
 RECYCLABLE, OR COMPOSTABLE.
   (C)  THE COMMISSIONER SHALL REVIEW AND APPROVE, DENY, OR REQUEST ADDI-
 TIONAL INFORMATION FOR A REQUEST TO  CLASSIFY  PACKAGING  AS  AN  EXEMPT
 S. 5062                            25
 
 MATERIAL  NO  LATER  THAN  ONE  HUNDRED  TWENTY  DAYS AFTER THE DATE THE
 COMMISSIONER RECEIVES THE REQUEST.
   (D)  THE COMMISSIONER SHALL POST ON THE DEPARTMENT'S WEBSITE A LIST OF
 MATERIALS EXEMPTED UNDER THIS SUBDIVISION.
   (E) AN EXEMPTION GRANTED UNDER  THIS  SUBDIVISION  EXPIRES  TWO  YEARS
 AFTER  THE  DATE  A REQUEST WAS APPROVED BY THE COMMISSIONER. A MATERIAL
 CLASSIFIED AS EXEMPT UNDER THIS SUBDIVISION BECOMES A  COVERED  MATERIAL
 IMMEDIATELY  UPON  EXPIRATION  OF  THE EXEMPTION. A PRODUCER MAY REAPPLY
 ACCORDING TO THIS SUBDIVISION.
 § 27-3427. PRODUCER FEES.
   1. A PRODUCER RESPONSIBILITY ORGANIZATION SHALL ANNUALLY COLLECT A FEE
 FROM EACH MEMBER PRODUCER THAT SHALL:
   (A) VARY BASED ON THE TOTAL AMOUNT OF COVERED MATERIALS EACH  PRODUCER
 INTRODUCES IN THE PRIOR YEAR CALCULATED ON A PER-UNIT BASIS, SUCH AS PER
 TON, PER ITEM, OR ANOTHER UNIT OF MEASUREMENT;
   (B) WITHIN ACCOUNTING CONSTRAINTS ALLOCATE COSTS BY MATERIAL AND PACK-
 AGING  TYPE  PURSUANT  TO THE STATEMENTS ON MANAGEMENT ACCOUNTING.  THIS
 ALLOCATION AND CORRESPONDING REVENUE SHALL BE INCLUDED IN THE  NOTES  TO
 THE FINANCIAL STATEMENTS;
   (C)  INCENTIVIZE USING MATERIALS AND DESIGN ATTRIBUTES THAT REDUCE THE
 IMPACTS OF COVERED MATERIALS BY REDUCING THE AMOUNT OF:
   (I) PACKAGING PER INDIVIDUAL COVERED MATERIAL  THAT  IS  NECESSARY  TO
 EFFICIENTLY  DELIVER  A  PRODUCT  WITHOUT DAMAGE OR SPOILAGE AND WITHOUT
 REDUCING ITS ABILITY TO BE RECYCLED;
   (II) PAPER USED TO MANUFACTURE INDIVIDUAL PAPER PRODUCTS;
   (III) INCREASING THE AMOUNT OF COVERED MATERIALS MANAGED  IN  A  REUSE
 SYSTEM;
   (IV)  INCREASING  THE  PROPORTION  OF POSTCONSUMER MATERIAL IN COVERED
 MATERIALS;
   (V) ENHANCING THE RECYCLABILITY OR COMPOSTABILITY OF A COVERED MATERI-
 AL; AND
   (VI) INCREASING THE AMOUNT OF INPUTS DERIVED FROM RENEWABLE SOURCES;
   (D) DISCOURAGE USING MATERIALS AND DESIGN ATTRIBUTES IN COVERED  MATE-
 RIALS WHOSE IMPACTS CAN BE REDUCED BY THE METHODS LISTED UNDER PARAGRAPH
 (C) OF THIS SUBDIVISION;
   (E)  PRIORITIZE  REUSE  BY CHARGING COVERED MATERIALS THAT ARE MANAGED
 THROUGH A REUSE SYSTEM ONLY ONCE, UPON INITIAL ENTRY  INTO  THE  MARKET-
 PLACE; AND
   (F) GENERATE REVENUE SUFFICIENT TO PAY IN FULL:
   (I) THE FEE REQUIRED UNDER SECTION 27-3407 OF THIS TITLE;
   (II)  FINANCIAL  OBLIGATIONS  TO  COMPLETE  ACTIVITIES DESCRIBED IN AN
 APPROVED STEWARDSHIP PLAN  AND  TO  REIMBURSE  SERVICE  PROVIDERS  UNDER
 SECTION 27-3429 OF THIS TITLE;
   (III) THE OPERATING COSTS OF THE PRODUCER RESPONSIBILITY ORGANIZATION;
 AND
   (IV)  FOR ESTABLISHMENT AND MAINTENANCE OF A FINANCIAL RESERVE THAT IS
 SUFFICIENT TO OPERATE THE PROGRAM IN A FISCALLY PRUDENT AND  RESPONSIBLE
 MANNER.
   2. REVENUE COLLECTED UNDER THIS SECTION THAT EXCEEDS THE AMOUNT NEEDED
 TO  PAY  THE COSTS DESCRIBED IN PARAGRAPH (F) OF SUBDIVISION ONE OF THIS
 SECTION SHALL BE USED TO IMPROVE  OR  ENHANCE  PROGRAM  OUTCOMES  OR  TO
 REDUCE  PRODUCER FEES ACCORDING TO PROVISIONS OF AN APPROVED STEWARDSHIP
 PLAN.
   3. FEES COLLECTED UNDER THIS SECTION MAY NOT BE USED FOR LOBBYING,  AS
 DEFINED IN SUBDIVISION (C) OF SECTION ONE-C OF THE LEGISLATIVE LAW.
 § 27-3429. SERVICE PROVIDER; REIMBURSEMENT.
 S. 5062                            26
 
   1.  THE  REIMBURSEMENTS PROVIDED FOR COVERED SERVICES TO COVERED ENTI-
 TIES, AT A MINIMUM, UNDER AN APPROVED STEWARDSHIP  PLAN  SHALL  ONLY  BE
 PROVIDED TO SERVICE PROVIDERS THAT MEET THE PERFORMANCE STANDARDS ESTAB-
 LISHED UNDER AN APPROVED STEWARDSHIP PLAN.
   2. IF A COVERED ENTITY DOES NOT HAVE ACCESS TO COLLECTION SERVICES FOR
 COVERED MATERIALS ON THE LIST ESTABLISHED PURSUANT TO SUBDIVISION ONE OF
 SECTION  27-3425  OF  THIS  TITLE,  WHERE  COLLECTION SERVICES FOR MIXED
 MUNICIPAL SOLID WASTE ARE BEING PROVIDED,  THE  PRODUCER  RESPONSIBILITY
 ORGANIZATION  SHALL ENSURE THAT COLLECTION SERVICES ARE AVAILABLE TO THE
 COVERED ENTITY THROUGH A SERVICE PROVIDER AT AN OPTIMAL LEVEL OF SERVICE
 AND CONVENIENCE.
   3. FOR INFRASTRUCTURE INVESTMENTS INCLUDED IN AN APPROVED  STEWARDSHIP
 PLAN,  A  PRODUCER  RESPONSIBILITY  ORGANIZATION  SHALL  USE  THE FORMAL
 COMPETITIVE PROCESS AS SET FORTH IN THE STEWARDSHIP PLAN,  AND  PUBLICLY
 POST  BID OPPORTUNITIES, EXCEPT THAT PREFERENCE SHALL BE GIVEN TO EXIST-
 ING FACILITIES, PROVIDERS OF SERVICES, AND HOLDERS OF  SERVICE  ACCOUNTS
 IN  THE  STATE  FOR  WASTE  REDUCTION, REUSE, COLLECTION, RECYCLING, AND
 COMPOSTING OF COVERED MATERIALS. THE PRODUCER  RESPONSIBILITY  ORGANIZA-
 TION MAY INCLUDE AN ALTERNATIVE BIDDING PROCESS IN THE STEWARDSHIP PLAN.
   4.  (A)  AN  APPROVED STEWARDSHIP PLAN SHALL PROVIDE A METHODOLOGY FOR
 REIMBURSEMENT RATES FOR COVERED SERVICES FOR COVERED  MATERIALS,  EXCLU-
 SIVE  OF EXEMPT MATERIALS. THE METHODOLOGY FOR REIMBURSEMENT RATES SHALL
 CONSIDER ESTIMATED REVENUE RECEIVED BY SERVICE PROVIDERS FROM  THE  SALE
 OF  COVERED  MATERIALS BASED UPON RELEVANT MATERIAL INDICES AND INCORPO-
 RATE RELEVANT COST  INFORMATION  IDENTIFIED  BY  THE  NEEDS  ASSESSMENT.
 REIMBURSEMENT  RATES SHALL BE ANNUALLY UPDATED AND REFLECT THE NET COSTS
 FOR COVERED SERVICES FOR COVERED MATERIALS FROM COVERED ENTITIES,  AT  A
 MINIMUM.  REIMBURSEMENT  RATES  SHALL  BE  ESTABLISHED EQUIVALENT TO NET
 COSTS AS ESTABLISHED BY A METHODOLOGY IN AN APPROVED PLAN AS FOLLOWS:
   (I) NO LESS THAN FIFTY PERCENT OF THE NET COST BY  FEBRUARY  FIRST  OF
 THE FIFTH CALENDAR YEAR FOLLOWING THE EFFECTIVE DATE OF THIS TITLE;
   (II)  NO  LESS  THAN  SEVENTY-FIVE PERCENT OF THE NET COST BY FEBRUARY
 FIRST OF THE SIXTH CALENDAR YEAR FOLLOWING THE EFFECTIVE  DATE  OF  THIS
 TITLE; AND
   (III) NO LESS THAN NINETY PERCENT OF THE NET COST BY FEBRUARY FIRST OF
 THE  SEVENTH  CALENDAR  YEAR FOLLOWING THE EFFECTIVE DATE OF THIS TITLE,
 AND EACH YEAR THEREAFTER.
   (B) REIMBURSEMENT RATES SHALL BE BASED ON THE FOLLOWING, AS APPLICABLE
 BY THE SERVICE PROVIDED:
   (I) 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:
   (A) THE NUMBER AND TYPE OF COVERED ENTITIES;
   (B) POPULATION DENSITY;
   (C) COLLECTIONS METHODS EMPLOYED;
   (D)  DISTANCE  TRAVELED  BY  COLLECTION  VEHICLES  TO CONSOLIDATION OR
 TRANSFER FACILITIES; TO REUSE, RECYCLING, OR COMPOSTING FACILITIES;  AND
 TO RESPONSIBLE MARKETS;
   (E)  OTHER  FACTORS  THAT MAY CONTRIBUTE TO REGIONAL OR JURISDICTIONAL
 COST DIFFERENCES;
   (F) THE PROPORTION OF COVERED COMPOSTABLE MATERIALS WITHIN ALL SOURCE-
 SEPARATED COMPOSTABLE MATERIALS COLLECTED OR MANAGED THROUGH COMPOSTING;
 AND
   (G) THE GENERAL QUALITY OF  COVERED  MATERIALS  COLLECTED  BY  SERVICE
 PROVIDERS;
 S. 5062                            27
 
   (II)  THE  COST  TO  TRANSFER COLLECTED COVERED MATERIALS FROM CONSOL-
 IDATION OR TRANSFER FACILITIES TO  REUSING,  PROCESSING,  RECYCLING,  OR
 COMPOSTING FACILITIES OR TO RESPONSIBLE MARKETS;
   (III) THE COST TO:
   (A)  SORT  AND  PROCESS  COVERED  MATERIALS FOR SALE OR USE AND REMOVE
 CONTAMINATION FROM COVERED MATERIALS BY A RECYCLING OR COMPOSTING FACIL-
 ITY, LESS THE AVERAGE FAIR MARKET VALUE FOR THAT COVERED MATERIAL  BASED
 ON MARKET INDICES FOR THE REGION; AND
   (B) MANAGE CONTAMINATION REMOVED FROM COLLECTED COVERED MATERIAL;
   (IV)  ADMINISTRATIVE  COSTS OF SERVICE PROVIDERS, INCLUDING EDUCATION,
 PUBLIC AWARENESS CAMPAIGNS, AND OUTREACH PROGRAM  COSTS  AS  APPLICABLE;
 AND
   (V)  THE  COSTS  OF  COVERED  SERVICES  FOR A REFILL SYSTEM OR COVERED
 SERVICES PROVIDED FOR  REUSABLE  COVERED  MATERIALS  AND  MANAGEMENT  OF
 CONTAMINATION.
   (C)  A  SERVICE  PROVIDER RETAINS ALL REVENUE FROM THE SALE OF COVERED
 MATERIALS. NOTHING IN THIS TITLE MAY RESTRICT A  SERVICE  PROVIDER  FROM
 CHARGING  A  FEE FOR COVERED SERVICES OF COVERED MATERIALS TO THE EXTENT
 THAT REIMBURSEMENT FROM A PRODUCER RESPONSIBILITY ORGANIZATION DOES  NOT
 COVER  ALL  COSTS  OF SERVICES, INCLUDING CONTINUED INVESTMENT AND INNO-
 VATION IN OPERATIONS, OPERATING  PROFITS,  AND  RETURNS  ON  INVESTMENTS
 REQUIRED  BY  A  SERVICE  PROVIDER  TO  PROVIDE  SUSTAINABILITY  OF  THE
 SERVICES.
   (D) REIMBURSEMENT RATES MAY BE CALCULATED PER TON, BY HOUSEHOLD, OR BY
 ANOTHER UNIT OF MEASUREMENT UNDER AN APPROVED STEWARDSHIP PLAN.
   5. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE  A  POLI-
 TICAL SUBDIVISION TO AGREE TO OPERATE UNDER A STEWARDSHIP PLAN, NOR DOES
 IT  RESTRICT  THE  AUTHORITY OF A POLITICAL SUBDIVISION TO PROVIDE WASTE
 MANAGEMENT SERVICES TO RESIDENTS OR  TO  CONTRACT  WITH  ANY  ENTITY  TO
 PROVIDE  WASTE  MANAGEMENT  SERVICES.  ANY POLITICAL SUBDIVISION THAT IS
 ALSO A SERVICE PROVIDER IS ELIGIBLE TO BE REGISTERED  WITH  THE  COMMIS-
 SIONER  AND REIMBURSED PER THE RATES AND SCHEDULE ESTABLISHED IN ACCORD-
 ANCE WITH SUBDIVISION FOUR OF THIS SECTION.
   (B) NOTHING IN THIS TITLE  RESTRICTS  THE  AUTHORITY  OF  A  POLITICAL
 SUBDIVISION  TO  PROVIDE  WASTE  MANAGEMENT  SERVICES  TO  RESIDENTS, TO
 CONTRACT WITH ANY ENTITY TO PROVIDE WASTE  MANAGEMENT  SERVICES,  OR  TO
 EXERCISE ITS AUTHORITY GRANTED UNDER SECTION ONE HUNDRED TWENTY-W OF THE
 GENERAL  MUNICIPAL  LAW.  A PRODUCER RESPONSIBILITY ORGANIZATION MAY NOT
 RESTRICT OR OTHERWISE INTERFERE WITH A POLITICAL SUBDIVISION  EXERCISING
 ITS  AUTHORITY  PURSUANT  TO SECTION ONE HUNDRED TWENTY-W OF THE GENERAL
 MUNICIPAL LAW TO ORGANIZE COLLECTION OF SOLID WASTE, INCLUDING MATERIALS
 COLLECTED FOR RECYCLING OR COMPOSTING, OR TO EXTEND, RENEW, OR OTHERWISE
 MANAGE ANY CONTRACTS ENTERED INTO AS A RESULT OF EXERCISING SUCH AUTHOR-
 ITY OR OTHERWISE RESULTING FROM A  COMPETITIVE  PROCUREMENT  PROCESS.  A
 PRODUCER  RESPONSIBILITY ORGANIZATION SHALL NOT BE REQUIRED TO REIMBURSE
 A SERVICE PROVIDER OUTSIDE THE SCOPE OF A  STEWARDSHIP  PLAN.    MUNICI-
 PALITIES  MAY  NOT  IMPOSE A MANDATE FOR COVERED MATERIALS OR ACTIVITIES
 COVERED BY THIS TITLE.
   6. A PRODUCER RESPONSIBILITY ORGANIZATION SHALL  ESTABLISH  A  DISPUTE
 RESOLUTION  PROCESS UTILIZING THIRD-PARTY MEDIATORS FOR DISPUTES RELATED
 TO REIMBURSEMENTS.
 § 27-3431. REPORTING.
   1. (A) BY APRIL FIRST OF THE FIFTH CALENDAR YEAR FOLLOWING THE  EFFEC-
 TIVE  DATE  OF THIS TITLE, AND ANNUALLY THEREAFTER, A PRODUCER RESPONSI-
 BILITY ORGANIZATION SHALL SUBMIT A WRITTEN REPORT  TO  THE  COMMISSIONER
 S. 5062                            28

 THAT  CONTAINS, AT A MINIMUM, THE FOLLOWING INFORMATION FOR THE PREVIOUS
 CALENDAR YEAR:
   (I)  THE AMOUNT OF COVERED MATERIALS INTRODUCED, BY EACH COVERED MATE-
 RIALS TYPE, REPORTED IN THE SAME UNITS USED TO ESTABLISH  FEES  PURSUANT
 TO PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 27-3427 OF THIS TITLE;
   (II) PROGRESS MADE TOWARD THE PERFORMANCE TARGETS REPORTED IN THE SAME
 UNITS  USED  TO  ESTABLISH  PRODUCER  FEES  PURSUANT TO PARAGRAPH (A) OF
 SUBDIVISION ONE OF SECTION 27-3427 OF THIS TITLE, AND REPORTED STATEWIDE
 AND FOR EACH COUNTY, INCLUDING:
   (A) THE  AMOUNT  OF  COVERED  MATERIALS  SUCCESSFULLY  WASTE  REDUCED,
 REUSED, RECYCLED, AND COMPOSTED BY COVERED MATERIALS TYPE AND THE STRAT-
 EGIES OR COLLECTION METHOD USED; AND
   (B) INFORMATION ABOUT THIRD-PARTY CERTIFICATIONS OBTAINED;
   (III)  THE  TOTAL  COST  TO  IMPLEMENT  THE  PROGRAM  AND  A  DETAILED
 DESCRIPTION OF PROGRAM EXPENDITURES BY CATEGORY, INCLUDING:
   (A) THE TOTAL AMOUNT OF PRODUCER FEES COLLECTED;
   (B) A DESCRIPTION OF INFRASTRUCTURE INVESTMENTS MADE; AND
   (C) A BREAKDOWN OF REIMBURSEMENTS BY COVERED SERVICES,  COVERED  ENTI-
 TIES, AND REGIONS OF THE STATE;
   (IV) A COPY OF A FINANCIAL AUDIT OF PROGRAM OPERATIONS CONDUCTED BY AN
 INDEPENDENT AUDITOR APPROVED BY THE COMMISSIONER THAT MEETS THE REQUIRE-
 MENTS OF THE FINANCIAL ACCOUNTING STANDARDS BOARD'S ACCOUNTING STANDARDS
 UPDATE 2016-14, NOT-FOR-PROFIT ENTITIES (TOPIC 958), AS AMENDED;
   (V)  A  DESCRIPTION  OF  PROGRAM  PERFORMANCE PROBLEMS THAT EMERGED IN
 SPECIFIC LOCATIONS AND EFFORTS TAKEN OR PROPOSED BY THE PRODUCER RESPON-
 SIBILITY ORGANIZATION TO ADDRESS THEM;
   (VI) A  DISCUSSION  OF  TECHNICAL  ASSISTANCE  PROVIDED  TO  PRODUCERS
 REGARDING  TOXIC  SUBSTANCES  IN  COVERED MATERIALS AND ACTIONS TAKEN BY
 PRODUCERS TO REDUCE INTENTIONALLY  ADDED  TOXIC  SUBSTANCES  IN  COVERED
 MATERIALS  BEYOND  COMPLIANCE  WITH  PROHIBITIONS ALREADY ESTABLISHED IN
 LAW;
   (VII) A DESCRIPTION  OF  PUBLIC  AWARENESS,  EDUCATION,  AND  OUTREACH
 ACTIVITIES  UNDERTAKEN,  INCLUDING  ANY  EVALUATIONS  CONDUCTED OF THEIR
 EFFICACY, PLANS FOR NEXT CALENDAR YEAR'S ACTIVITIES, AND  AN  EVALUATION
 OF  THE  PROCESS ESTABLISHED BY THE PRODUCER RESPONSIBILITY ORGANIZATION
 TO ANSWER QUESTIONS  FROM  CONSUMERS  REGARDING  COLLECTION,  RECYCLING,
 COMPOSTING,  WASTE REDUCTION, AND REUSE ACTIVITIES; THE PRODUCER RESPON-
 SIBILITY ORGANIZATION SHALL NOT BE REQUIRED TO PROVIDE A  SERVICE  UNDER
 THIS SUBDIVISION ALREADY PROVIDED BY A STATE AGENCY;
   (VIII) A SUMMARY OF CONSULTATIONS HELD WITH THE ADVISORY BOARD AND HOW
 ANY FEEDBACK WAS INCORPORATED INTO THE REPORT AS A RESULT, TOGETHER WITH
 A LIST OF REJECTED RECOMMENDATIONS AND THE REASONS FOR REJECTION;
   (IX) A LIST OF PRODUCERS FOUND TO BE OUT OF COMPLIANCE WITH THIS TITLE
 AND  ACTIONS TAKEN BY THE PRODUCER RESPONSIBILITY ORGANIZATION TO RETURN
 PRODUCERS TO COMPLIANCE, AND NOTIFICATION OF ANY PRODUCERS THAT  ARE  NO
 LONGER PARTICIPATING IN THE PRODUCER RESPONSIBILITY ORGANIZATION OR HAVE
 BEEN EXPELLED DUE TO THEIR LACK OF COMPLIANCE;
   (X)  PROPOSED  AMENDMENTS  TO  THE STEWARDSHIP PLAN TO IMPROVE PROGRAM
 PERFORMANCE OR REDUCE COSTS, INCLUDING CHANGES TO PRODUCER FEES, INFRAS-
 TRUCTURE INVESTMENTS, OR REIMBURSEMENT RATES;
   (XI) RECOMMENDATIONS FOR ADDITIONS OR REMOVAL OF COVERED MATERIALS  TO
 OR  FROM THE RECYCLABLE OR COMPOSTABLE COVERED MATERIALS LISTS DEVELOPED
 UNDER SECTION 27-3425 OF THIS TITLE; AND
   (XII) INFORMATION REQUESTED BY THE COMMISSIONER TO EVALUATE THE EFFEC-
 TIVENESS OF THE PROGRAM AS IT IS DESCRIBED IN THE STEWARDSHIP  PLAN  AND
 TO ASSIST WITH DETERMINING COMPLIANCE WITH THIS TITLE.
 S. 5062                            29
 
   (B)  EVERY  FOURTH  YEAR  AFTER  A STEWARDSHIP PLAN IS APPROVED BY THE
 COMMISSIONER, A PERFORMANCE AUDIT OF THE PROGRAM SHALL BE  COMPLETED  BY
 THE  PRODUCER  RESPONSIBILITY  ORGANIZATION. THE PERFORMANCE AUDIT SHALL
 CONFORM TO AUDIT STANDARDS ESTABLISHED BY THE UNITED  STATES  GOVERNMENT
 ACCOUNTABILITY OFFICE; THE NATIONAL ASSOCIATION OF STATE AUDITORS, COMP-
 TROLLERS,  AND TREASURERS; OR ANOTHER NATIONALLY RECOGNIZED ORGANIZATION
 APPROVED BY THE COMMISSIONER.
   2. A  PRODUCER  RESPONSIBILITY  ORGANIZATION  THAT  FAILS  TO  MEET  A
 PERFORMANCE  TARGET  APPROVED IN A STEWARDSHIP PLAN SHALL, WITHIN NINETY
 DAYS OF FILING AN ANNUAL  REPORT  UNDER  THIS  SECTION,  FILE  WITH  THE
 COMMISSIONER  AN  EXPLANATION OF THE FACTORS CONTRIBUTING TO THE FAILURE
 AND PROPOSE AN AMENDMENT TO THE STEWARDSHIP PLAN SPECIFYING  CHANGES  IN
 OPERATIONS  THAT THE PRODUCER RESPONSIBILITY ORGANIZATION WILL MAKE THAT
 ARE DESIGNED TO ACHIEVE THE PERFORMANCE TARGETS. IF A PERFORMANCE TARGET
 IS UNMET DUE TO LACK  OF  POLITICAL  SUBDIVISION  PARTICIPATION  IN  THE
 PROGRAM,  THE  COMMISSIONER MAY REVISE THE STATEWIDE REQUIREMENTS DEVEL-
 OPED PURSUANT TO SUBDIVISION SEVEN OF SECTION 27-3423 OF THIS TITLE.  IF
 A REVISION TO THE STATEWIDE REQUIREMENTS IS COMPLETED BY THE COMMISSION-
 ER,  THE PRODUCER RESPONSIBILITY ORGANIZATION MAY REVISE THE PERFORMANCE
 TARGETS AT THE SAME TIME. AN  AMENDMENT  FILED  UNDER  THIS  SUBDIVISION
 SHALL BE REVIEWED BY THE ADVISORY BOARD AND REVIEWED AND APPROVED BY THE
 COMMISSIONER  IN  THE  MANNER  SPECIFIED IN SUBDIVISIONS TWO AND FOUR OF
 SECTION 27-3423 OF THIS TITLE.
   3. BY OCTOBER FIFTEENTH OF THE SEVENTH  CALENDAR  YEAR  FOLLOWING  THE
 EFFECTIVE  DATE  OF  THIS  TITLE,  AND  EVERY  TWO YEARS THEREAFTER, THE
 COMMISSIONER SHALL SUBMIT A REPORT TO THE GOVERNOR AND TO THE CHAIRS AND
 RANKING MINORITY MEMBERS OF THE LEGISLATIVE COMMITTEES WITH JURISDICTION
 OVER SOLID WASTE. THE REPORT SHALL CONTAIN:
   (A) A SUMMARY OF THE OPERATIONS OF  THIS  TITLE  DURING  THE  PREVIOUS
 YEARS;
   (B) A SUMMARY OF THE NEEDS ASSESSMENT;
   (C)  A  LINK  TO  REPORTS FILED UNDER SUBDIVISIONS ONE AND TWO OF THIS
 SECTION;
   (D) RECOMMENDATIONS FOR POLICY, STATUTORY, OR  REGULATORY  CHANGES  TO
 THE PROGRAM;
   (E) AN ANALYSIS OF THE IMPACTS OF EXEMPTING CERTAIN MATERIALS FROM THE
 DEFINITION  OF  COVERED  MATERIALS AND OF EXEMPTING CERTAIN PERSONS FROM
 THE DEFINITION OF PRODUCER;
   (F) A LIST OF EFFORTS UNDERTAKEN BY THE COMMISSIONER  TO  ENFORCE  AND
 SECURE COMPLIANCE WITH THIS TITLE; AND
   (G) ANY OTHER INFORMATION THE COMMISSIONER DEEMS TO BE RELEVANT.
   4.  SERVICE  PROVIDERS SHALL PROVIDE PRODUCER RESPONSIBILITY ORGANIZA-
 TIONS WITH DATA NECESSARY TO  COMPLETE  THE  REPORTS  REQUIRED  BY  THIS
 SECTION UPON REQUEST.
 § 27-3433. PRODUCER RESPONSIBILITY ORGANIZATION WEBSITES.
   A  PRODUCER  RESPONSIBILITY ORGANIZATION SHALL MAINTAIN A WEBSITE THAT
 USES BEST PRACTICES FOR ACCESSIBILITY AND CONTAINS, INCLUDING,  BUT  NOT
 LIMITED TO:
   (A) INFORMATION REGARDING A PROCESS THAT MEMBERS OF THE PUBLIC CAN USE
 TO CONTACT THE PRODUCER RESPONSIBILITY ORGANIZATION WITH QUESTIONS;
   (B)  A DIRECTORY OF ALL SERVICE PROVIDERS OPERATING UNDER THE STEWARD-
 SHIP PLAN ADMINISTERED  BY  THE  PRODUCER  RESPONSIBILITY  ORGANIZATION,
 GROUPED  BY LOCATION OR POLITICAL SUBDIVISION, AND INFORMATION ABOUT HOW
 TO REQUEST SERVICE;
   (C) REGISTRATION MATERIALS SUBMITTED TO THE COMMISSIONER UNDER SECTION
 27-3407 OF THIS TITLE;
 S. 5062                            30
 
   (D) THE DRAFT AND APPROVED STEWARDSHIP PLAN AND ANY DRAFT AND APPROVED
 AMENDMENTS;
   (E)  INFORMATION  ON  HOW TO MANAGE MATERIALS INCLUDED IN LISTS ESTAB-
 LISHED UNDER SECTION 27-3425 OF THIS TITLE;
   (F) THE LIST OF EXEMPT MATERIALS AS DEFINED IN THIS TITLE AND  COVERED
 MATERIALS  EXEMPT FROM PERFORMANCE TARGETS AND STATEWIDE REQUIREMENTS AS
 APPROVED IN THE STEWARDSHIP PLAN;
   (G) CURRENT AND ALL PAST NEEDS ASSESSMENTS;
   (H) ANNUAL REPORTS SUBMITTED  TO  THE  COMMISSIONER  BY  THE  PRODUCER
 RESPONSIBILITY ORGANIZATION;
   (I) A LINK TO ADMINISTRATIVE RULES IMPLEMENTING THIS TITLE;
   (J) COMMENTS OF THE ADVISORY BOARD ON THE DOCUMENTS LISTED IN SUBDIVI-
 SIONS  (D),  (E),  (F)  AND (G) OF THIS SECTION AND THE RESPONSES OF THE
 PRODUCER RESPONSIBILITY ORGANIZATION TO SUCH COMMENTS;
   (K) THE NAMES OF PRODUCERS AND BRANDS THAT ARE NOT IN COMPLIANCE  WITH
 SECTION 27-3417 OF THIS TITLE;
   (L)  A  LIST,  UPDATED  AT LEAST MONTHLY, OF ALL MEMBER PRODUCERS THAT
 WILL OPERATE UNDER THE STEWARDSHIP PLAN  ADMINISTERED  BY  THE  PRODUCER
 RESPONSIBILITY ORGANIZATION AND, FOR EACH PRODUCER, A LIST OF ALL BRANDS
 OF THE PRODUCER'S COVERED MATERIALS; AND
   (M)  EDUCATION  MATERIALS  ON  WASTE  REDUCTION, REUSE, RECYCLING, AND
 COMPOSTING FOR PRODUCERS AND THE GENERAL PUBLIC.
 § 27-3435. ANTICOMPETITIVE CONDUCT.
   A PRODUCER RESPONSIBILITY ORGANIZATION THAT ARRANGES COLLECTION, RECY-
 CLING, COMPOSTING, WASTE REDUCTION, OR REUSE SERVICES UNDER  THIS  TITLE
 MAY  ENGAGE  IN  ANTICOMPETITIVE CONDUCT TO THE EXTENT NECESSARY TO PLAN
 AND IMPLEMENT COLLECTION, RECYCLING,  COMPOSTING,  WASTE  REDUCTION,  OR
 REUSE  SYSTEMS  TO  MEET THE OBLIGATIONS UNDER THIS TITLE, AND IS IMMUNE
 FROM LIABILITY UNDER STATE LAWS  RELATING  TO  ANTITRUST,  RESTRAINT  OF
 TRADE, AND UNFAIR TRADE PRACTICES.
 § 27-3437. RULEMAKING.
   THE COMMISSIONER MAY ADOPT ANY RULES AND REGULATIONS NECESSARY FOR THE
 IMPLEMENTATION OF THIS TITLE.
 § 27-3439. PROVIDING INFORMATION.
   UPON  REQUEST  OF THE COMMISSIONER FOR PURPOSES OF DETERMINING COMPLI-
 ANCE WITH THIS TITLE, OR FOR PURPOSES  OF  IMPLEMENTING  THIS  TITLE,  A
 PERSON SHALL FURNISH TO THE COMMISSIONER ANY INFORMATION THAT THE PERSON
 HAS OR MAY REASONABLY OBTAIN.
 § 27-3441. DEPOSIT RETURN SYSTEM.
   THIS  TITLE SHALL NOT APPLY TO CONTAINERS SUBJECT TO TITLE TEN OF THIS
 ARTICLE.
 § 27-3443. ENFORCEMENT.
   THE COMMISSIONER  SHALL  ENFORCE  THE  PROVISIONS  OF  THIS  TITLE  AS
 PROVIDED UNDER THIS SECTION.
   1.  ANY  PERSON WHO VIOLATES ANY OF THE PROVISIONS OF, OR WHO FAILS TO
 PERFORM ANY DUTY IMPOSED BY,  THIS  TITLE  OR  ANY  RULE  OR  REGULATION
 PROMULGATED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE
 COMMISSIONER  MADE  PURSUANT  TO  THIS TITLE SHALL BE LIABLE FOR A CIVIL
 PENALTY NOT TO EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH  SUCH
 VIOLATION  AND  AN ADDITIONAL PENALTY OF NOT MORE THAN ONE THOUSAND FIVE
 HUNDRED DOLLARS FOR EACH DAY DURING WHICH SUCH VIOLATION  CONTINUES,  TO
 BE  ASSESSED BY THE COMMISSIONER AFTER AN OPPORTUNITY TO BE HEARD PURSU-
 ANT TO THE PROVISIONS OF SECTION 71-1709 OF  THIS  CHAPTER,  OR  BY  THE
 COURT  IN  ANY  ACTION OR PROCEEDING PURSUANT TO SECTION 71-2727 OF THIS
 CHAPTER, AND, IN ADDITION THERETO, SUCH PERSON MAY BY SIMILAR PROCESS BE
 ENJOINED FROM CONTINUING SUCH VIOLATION.
 S. 5062                            31
 
 § 27-3445. PACKAGING PRODUCT STEWARDSHIP ACCOUNT.
   1. THE PACKAGING PRODUCT STEWARDSHIP ACCOUNT IS ESTABLISHED AS A SEPA-
 RATE  ACCOUNT  IN THE SPECIAL REVENUE FUND IN THE STATE TREASURY. APPRO-
 PRIATIONS AND TRANSFERS TO THE ACCOUNT AND FEES COLLECTED UNDER  SECTION
 27-3407  OF  THIS TITLE SHALL BE CREDITED TO THE ACCOUNT. EARNINGS, SUCH
 AS INTEREST, DIVIDENDS, AND ANY OTHER EARNINGS ARISING  FROM  ASSETS  OF
 THE  ACCOUNT,  SHALL  BE CREDITED TO THE ACCOUNT. MONEY REMAINING IN THE
 ACCOUNT AT THE END OF A FISCAL YEAR DOES NOT CANCEL TO THE GENERAL  FUND
 BUT REMAINS IN THE ACCOUNT UNTIL EXPENDED.
   2.  MONEY  FROM THE ACCOUNT IS APPROPRIATED TO THE COMMISSIONER TO PAY
 THE REASONABLE COSTS OF THE DEPARTMENT'S TO ADMINISTER THE PROVISIONS OF
 THIS TITLE.
   § 2. This act shall take effect on the first day of the second  calen-
 dar month following the date on which it shall have become a law.