Rhode Island Senate Bill 939 - (Introduced)

Packaging or consumer packaging means any material, regardless of recyclability, which is intended for short-term use and is used for the containment, protection, handling, or delivery of products to the consumer at the point of sale, including through an Internet transaction. Packaging includes products supplied to or purchased by consumers for the express purpose of facilitating food or beverage consumption and that are ordinarily disposed of after short-term use and not designed for reuse or refill. Packaging includes paper, plastic, glass, metal, cartons, flexibles, foams, rigid packaging, or other materials or combinations of these materials.

Paper products means paper and other cellulosic fibers, whether or not they are used as a medium for text or images, including flyers, brochures, booklets, telephone and other directories, newspapers, magazines and other periodicals, and paper used for writing or any other purpose.

1. Packaging that is not sold or distributed to covered entities
2. Packaging used solely for transportation or distribution to non-consumers
3. Packaging used exclusively in industrial or manufacturing processes
4. Packaging for products sold or distributed outside the state
5. Packaging intended for the long-term storage or protection of a durable product and designed to transport, protect, or store the product for at least five years
6. Beverage containers subject to a returnable container deposit, if applicable
7. Packaging used to contain a product regulated as a drug, medical device, or dietary supplement by the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act, including any related federal regulations or materials used in the manufacture of such products
8. Packaging used to contain a product regulated as animal biologics (e.g., vaccines, bacterins, antisera, diagnostic kits, and other biological products) under the Virus-Serum-Toxin Act
9. Packaging used to contain a product regulated under the Federal Insecticide, Fungicide, and Rodenticide Act
10. Packaging required by state law to be sold in packaging that meets the standards of the Poison Prevention Packaging Act.
11. Paper products that could become unsafe or unsanitary to handle through their use; or
12. Bound books

Covered entity means the following locations in the state from which covered materials are collected:

All single-family residences in the state and all multifamily residences in the state

Producer means the following person responsible for compliance with requirements under this chapter for a covered material introduced into the state:

For items sold in or with packaging at a physical retail location in this state:

1. 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
2. If there is no manufacturer, the producer is the brand owner of the item

For items sold or distributed in packaging in or into this state via e-commerce, remote sale, or distribution:

1. For packaging used to directly protect or contain the item, the producer of the packaging is the same as the producer above

2.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

For paper products that are magazines, catalogs, telephone directories, or similar publications, the producer is the publisher.
For paper products not described above: If the paper product is sold under the manufacturer's own brand, the producer is the person that manufactures the paper product

Producer means the following person responsible for compliance with requirements under this chapter for a covered material introduced into the state:

For items sold in or with packaging at a physical retail location in this state:
If there is no manufacturer, 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 is the producer

A person is the producer of a covered material sold, offered for sale, or distributed in or into this state, as defined except where another person has mutually signed an agreement with a produce that contractually assigns responsibility to the person as the producer, and the person has joined a registered producer responsibility organization as the responsible producer for that covered material under this chapter. If another person is assigned responsibility as the producer, the producer must provide written certification of that contractual agreement to the producer responsibility organization.

If the producer is a business operated wholly or in part as a franchise the producer is the franchisor, if that franchisor has franchisees that have a commercial presence within the state.

Producer means the following person responsible for compliance with requirements under this chapter for a covered material introduced into the state:

For items sold in or with packaging at a physical retail location in this state:

1. If there is no brand or licensee 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
2. If there is no brand, licensee or importer, the producer is the person that first distributes the item in or into this state

For items sold or distributed in packaging in or into this state via e-commerce, remote sale, or distribution:
For packaging that is a covered material and is not included as a brand, the producer of the packaging is the person that first distributes the item in or into this state

For paper products that are not magazines, catalogs, telephone directories, or similar publications, and there is no brand or manufacturer the producer is the person that is the owner or licensee of 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. If there is no person as describe above, the producer is the person that first distributes the paper product in or into this state.

A person with less than five million dollars ($5,000,000) in realized gross total revenue during the prior calendar year. The department shall adjust by rule this dollar limit on July 1 of each year after enactment using the percentage change in an appropriate consumer price index for the region and a person that has used less than one ton of covered materials for products sold or distributed within or into the state during the prior calendar year is exempt.

State or local governments are exempt.

Nonprofits are exempt.

Producers shall join the approved producer responsibility organization by July 1, 2026. Beginning January 1, 2033, and every January 1 thereafter, an additional PRO may be requested. A coordination plan among the PROs is required.

As an alternative to participating in the program, a producer shall notify the department and the approved producer responsibility organization of its intent to submit an individual program plan proposal. A producer shall notify the department of its initial intent to submit an individual program plan proposal by July 1, 2026.

By December 31, 2027, and each December 31 thereafter, as an alternative to participating in the program, a producer may submit to the advisory board an individual program plan proposal.

The PRO is responsible for the costs and operations by providing service or contracting with public and private service providers.
Reimbursement rates must be established equivalent to net costs as established by a methodology in an approved plan as follows:

(1) No less than 50 percent of the net costs by the first year
(2) No less than 75 percent of the net costs by the second year
(3) No less than 90 percent of the net costs by the third year and each year thereafter

Costs should include providing covered services under the program through contracts with service providers or reimbursement of reasonable covered services costs.

Cost should include education and outreach programs.

Costs should include reimbursing the department for administration and implementation.

Costs should include investment in market development for covered materials in the state.

The producer responsibility dues shall vary by the type of covered material, whether or not the material is readily recyclable, and be based on the net covered services costs for each covered material in the state as well as allocated fixed costs of the organization for administration, education and outreach, and other costs not linked to material type.

Dues shall vary to include eco-modulation factors.

Dues will incentivize postconsumer recycled material use.

Dues will incentivize packages designed for reuse and refill where supporting infrastructure exists in the state.

Dues will incentivize reductions in the amount of packaging used for products, including through design innovations and elimination of unnecessary or redundant packaging.

Dues will discourage designs and materials that increase the costs of recycling, reusing, or composting covered materials and designs and materials that disrupt the recycling or composting of other materials.

Dues will incentivize innovations and practices to enhance the recyclability, compostability, or commodity value of covered materials and recycling, composting, and refill rates of covered materials.

Dues will discourage producers' use of covered materials that are not on the minimum recyclable or compostable list.

The PRO will set targets that the program will strive to meet by December 31, 2033, and December 31, 2038: Minimum collection and recycling rates for all covered materials and by type of covered materials.

The PRO will set targets that the program will strive to meet by December 31, 2033, and December 31, 2038: Minimum postconsumer recycled content rates for covered materials, including paper products, glass, metal, and plastic, but excluding covered materials that cannot include postconsumer recycled content because of technical or market barriers, unique chemical or physical properties, or health and safety requirements that prevent its use.

The collection of readily recyclable and compostable covered materials shall be provided in a manner that is as convenient as the collection of solid waste in the geographic area in which the covered entity is located.

Prospective organizations shall apply by February 1, 2026, for recognition by submitting to the commissioner contact information, proof of or application for nonprofit status, and the producers it represents. On or before March 31, 2026, the director shall approve a single producer responsibility organization to represent the interests of producers under this chapter.

On or before December 31, 2027, the organization shall submit a proposed program plan to the advisory board that addresses covered services for covered entities. The plan shall cover a period of five years, and an updated plan proposal shall be submitted to the advisory board one 1 year before the expiration of the current plan.

The organization shall begin implementing the final plan within six months after it is approved.

Effective July 1, 2027, a producer shall not sell or distribute any products that use covered materials in the state unless the producer is participating in the program as a member of the organization or having notified the department of its intent to submit an individual program plan proposal. Participation includes providing data necessary to meet its plan obligations as determined by the organization and may use prorated national or regional data if state-specific data is not available or feasible to generate. Participation also includes payment of dues according to the schedule developed by the organization on the terms and conditions established by the organization.

Within sixty days after receiving the plan proposal or amended plan proposal, the director shall either approve or reject the plan proposal or amended plan proposal.

"The extended producer responsibility for packaging and paper administrative fund is established. The fund consists of any producer funds designated for administrative costs including a portion of dues transferred to the fund by the organization and administrative funds transferred from an additional producer responsibility organization or a person administering a plan approved by the director. The fund also includes money that the general assembly transfers to the fund for use by the department.

Payments for administrative costs made with approved plans are limited to reimbursing:
(1) The department, including the advisory board, for the reasonable costs incurred in administering and implementing and
(2) The department for the reasonable costs incurred in enforcing this chapter.

Before March 31 of the second year of the program's implementation, and by March 31 each year thereafter, the organization shall submit a report to the advisory board describing the progress of the program. The advisory board shall review the report and forward the report to the director. The director shall post the report on the department's website.

For a first violation, an initial penalty of two thousand dollars ($2,000) for the first day of each violation and one thousand dollars ($1,000) per day for each day the violation continues.

For a second violation committed within twelve (12) months after a prior violation, an initial penalty of five thousand dollars ($5,000) for the first day of each violation and two thousand five hundred dollars ($2,500) per day for each day the violation continues.

For a third or subsequent violation committed within twelve (12) months after two (2) or more prior violations, an initial penalty of ten thousand dollars ($10,000) for the first day of each violation and five thousand dollars ($5,000) per day for each day the violation continues.

If the regulated entity violates any portion of this chapter, the director shall serve by personal service or by certified mail an order that imposes an administrative penalty.

The organization shall develop and implement a statewide education and outreach program that is designed to include education and outreach on proper end-of-life management of covered materials.

The organization shall develop and implement a statewide education and outreach program that is designed to prevent littering in the process of providing covered services.

The organization shall develop and implement a statewide education and outreach program that is designed to include education and outreach on location and availability of covered services under the program.

In developing the plan proposal and any updated plan proposals, the organization shall solicit and consider input from the advisory board and provide an opportunity for additional stakeholder input.

The advisory board consists of thirteen (13) voting members and two (2) nonvoting members, all appointed by the director:

1. Three (3) members representing local governments in the state, including:
2. One member representing a city with a population greater than 150,000
3. One member representing a coastal city or town
4. One member representing a non-coastal city or town
5. One (1) member representing a materials recovery facility in the state that processes covered materials from covered entities.
6. One (1) member representing a private sector collector of recyclable covered materials from covered entities
7. One (1) member representing an environmental or community-based nonprofit organization
8. One (1) member representing a packaging material supplier that is not a producer. This seat will rotate to a supplier of a different type of packaging material after each term
9. One (1) member representing a manufacturer of recycled paper products that is not a producer
10. One (1) member representing a trade association, chamber of commerce, or other business advocacy organization representing businesses in the state
11. One (1) member representing a retailer’s association or a retailer that is not a producer
12. One (1) member representing a compost facility in the state that handles covered materials
13. One (1) member with experience in environmental justice, representing underserved communities in the state
14. One (1) member representing a solid waste landfill or transfer station operating an on-site, public-facing recycling collection program

Nonvoting Members:

1. One (1) member representing the department
2. One (1) member representing the producer responsibility organization

Recycling means the reprocessing, by means of a manufacturing process, of a used material into a product or a secondary raw material. Recycling does not include energy recovery or energy generation by means of combustion; use as a fuel; or use as alternative daily cover at a landfill.

If the program or any other plan approved by the director pursuant to this chapter engages in an activity performed solely in furtherance of implementing the program or plan and in compliance with this chapter, the activity is not a violation of the antitrust provisions of the Rhode Island antitrust act or of the unfair methods of competition and unfair or deceptive acts or practices described in the deceptive trade practices provisions.

Recycling rate means the weight of covered materials that are recycled under the program in a calendar year divided by the weight of covered materials used for products sold or distributed by producers within or into the state in the same calendar year, expressed as a percentage. The recycling rate is measured at the point where collected covered materials have been prepared for sale or delivery to material reclaimers or end markets after processing at a materials recovery facility or similar establishment that sells directly to reclaimers or end markets.

A person shall not charge any kind of point-of-sale or point-of-collection fee to consumers to recoup its costs in meeting the obligations of or complying. Nor shall a service provider charge a fee for costs for which the service provider is reimbursed.

On or before August 1, 2026, the organization shall hire an independent third party approved by the director to develop a baseline of the state's recycling system. The organization shall develop a request for proposals for the baseline assessment and shall consult with the advisory board on the scope of the assessment prior to finalizing the scope and putting the work out to bid. The PRO pays for the baseline study.

The organization will work with newspaper publishers and magazine and periodical publishers to accept print or online advertising in lieu of all or a portion of the producer responsibility dues for newspapers, magazines, and periodicals circulated within the state.

As part of the plan, the producer responsibility organization shall develop a list of covered materials determined to be recyclable or compostable statewide through systems where covered materials are commingled into a recyclables stream and a separate compostables stream. These covered materials shall be collected at an optimal level and method of service and convenience for covered entities, at a minimum, wherever collection services for mixed municipal solid waste are available.

Reuse or refill means the return into the marketplace of a covered material that has already been used in the same manner as originally intended without a change in the covered material's purpose and was intended to be used for its original purpose at least five times.

The producer responsibility organization may propose a list of covered materials determined to be recyclable or compostable and collected statewide through systems other than the system required for covered materials on the list.

These alternative collection programs shall:

Provide year-round, convenient, statewide collection opportunities, including at least one drop-off collection site located in each county.

Provide tiers of service for collection, convenience, number of drop-off collection sites, and additional collection systems based on county population size and county population density.

Ensure materials are sent to responsible markets.

Use education and outreach strategies that can be expected to significantly increase consumer awareness of the program throughout the state.

Measure the amount of each covered material collected and the applicable performance target and statewide requirement.