|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Feb 22, 2021||referred to environmental conservation|
senate Bill S5027
Relates to establishing the carpet stewardship program
Current Bill Status - In Senate Committee Environmental Conservation Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
view actions (1)
S5027 (ACTIVE) - Details
- Current Committee:
- Senate Environmental Conservation
- Law Section:
- Environmental Conservation Law
- Laws Affected:
- Add Art 27 Title 32 §§27-3201 - 27-3243, En Con L; add §92-kk, St Fin L
S5027 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5027 SPONSOR: KAVANAGH TITLE OF BILL: An act to amend the environmental conservation law and the state finance law, in relation to establishing a carpet stewardship program PURPOSE: To develop an Extended Producer Responsibility (EPR) program for carpet- ing that will: establish mandatory goals for recycling and convenient collection locations; phase out PFAS chemicals from new carpet production; create a diversified stewardship organization and governance structure, that includes representatives from the environmental communi- ty and the recycled carpet supply chain; and establish goals for a circular economy for the carpet industry. SUMMARY OF PROVISIONS: Section one of the bill sets forth the legislative findings.
Section two of the bill creates a new Title 32 within Article 27 of the environmental conservation law establishing a carpet stewardship program. Subdivision 27-3201 of the new Title 32 sets forth definitions. Subdivision 27-3203 of the new Title 32 sets forth a requirement that all carpet sold in the state must include the contact information and name of the producer as well as the carpet material and composition used. The carpet must also have a seven year all-inclusive warranty that excludes damage or misuse. This section also prohibits any carpet containing PFAS chemicals from being sold in New York state two years after the effective date. Subdivision 27-3205 of the new Title 32 requires that carpets be manu- factured using at least 10% post-consumer recycled materials beginning two years after the bill takes effect. Four years later the minimum will increase to 20%, and five additional years later (or eleven years after the effective date) all carpets will be required to be made of 30% post- consumer recycled materials. This section also prohibits the use of permanent adhesives in carpet installation beginning two years after the effective date. Subdivision 27-3207 of the new Title 32 establishes a Carpet Stewardship Advisory Board. By January 1 following the effective date, the Commis- sioner will appoint eleven voting members' to the board. The board must include one representative from carpet producers; one from carpet retailers; one from carpet recyclers; one from carpet collectors; two representatives from companies that utilize discarded carpet to manufac- ture a new product; one from a carpet installer association; one from a statewide environmental organization; one from a statewide waste disposal association; one from the New York product stewardship council; and one at-large member. Members will designate a chair who will call, at minimum, quarterly meetings of the board. The board will review all submitted carpet stewardship plans and take action within 90 days either to recommend approval to the Commissioner or return the plan with reasons for disapproval. Subdivision 27-3209 of the new Title 32 requires carpet producers to collectively establish and finance a statewide stewardship organization, not under the control of any single manufacturer or industry trade asso- ciation. This organization will be responsible for the carpet producers' compliance with the new law. The organization must submit a stewardship plan to the Advisory Board, and update the plan every three years, subject to the approval of the Advisory Board. The organization and the Advisory Board shall meet jointly at least twice per year. Subdivision 27-3211 of the new Title 32 sets forth the minimum require- ments for what must be included within carpet stewardship plans created and submitted by the statewide stewardship organization. This section also requires the stewardship organization to submit an annual report to the Department including a description of the stewardship program from the previous year. Subdivision 27-3213 of the new Title 32 requires the Commissioner to either approve or deny a plan forwarded to them by the Advisory Board within sixty days. If the plan is denied, reasons for denial must be provided to the stewardship organization who shall provide a revised plan within sixty days of receipt of rejection. Subdivision 27-3215 of the new Title 32 requires that collection sites shall be made available within a 15-mile radius for at least 70% of the state's population, and within a 15-mile radius for at least 80% within three years after the start of the program. For residents not covered by that standard, the stewardship organization must provide collection events for these residents at least once per year. For cities with a population over one million, the stewardship organization must consult the appropriate local entities responsible for solid and hazardous waste collection to establish an alternative convenience plan approved by the Department. Subdivision 27-3217 of the new Title 32 sets forth the mechanism to fund the stewardship organization and implement the stewardship plan. Carpet producers will include an additional assessment in the price of each carpet sold to a retailer or distributor in the state. This assessment will then be remitted quarterly to the stewardship organization. The assessment must take into account the particular financial burden a particular carpet material has on the stewardship plan and the amount of recycled material contained in each carpet. The assessment should be differentiated to incentivize post-consumer recycled material usage. Subdivision 27-3219 of the new Title 32 requires an annual administra- tive fee to be set by the department as a reimbursement to the depart- ment for administering the act. This section also requires a one-time fee of ten thousand dollars upon submission of the first stewardship plan. The section requires that fees delivered to the department shall not exceed the amount necessary to cover costs incurred by the depart- ment for the administration or enforcement of this act. Subdivision 27-3221 of the new Title 32 requires all carpet producers in the state to finance and implement a stewardship program through a stewardship organization. This section prohibits any producer from offering for sale or selling any carpet in New York without being part of a stewardship organization. Subdivision 27-3223 of the new Title 32 prohibits retailers and distrib- utors from selling any carpet from a producer who is not participating in a stewardship program. Retailers and distributors may voluntarily participate as a designated collection point. Subdivision 27-3225 of the new Title 32 requires that program collectors accept all types and brands of carpets, and offer collection free of charge to consumers. The program collectors must also submit an annual report to the stewardship organization with an approved collection plan. Subdivision 27-3227 of the new Title 32 requires that all carpet removed by installers for the purpose of discarding must be transported to a program collection site for recycling. Subdivision 27-3229 of the new Title 32 sets forth the requirements of the Department of Environmental Conservation under this act. Subdivision 27-3231 of the new Title 32 gives the Department authority to promulgate necessary rules and regulations to implement the title. Subdivision 27-3233 of the new Title 32 requires the stewardship organ- ization to appoint an independent auditor who shall review the implemen- tation of the stewardship plan and whether the assessment is at the correct level. Subdivision 27-3235 of the new Title 32 provides the Department as well as the Attorney General with enforcement authority under this title to collect civil penalties from producers or stewardship organizations in violation of the act. Subdivision 27-3237 of the new Title 32 sets forth a preemption clause vesting jurisdiction over all matters pertaining to carpet recycling with the state. Subdivision 27-3239 of the new Title 32 sets forth a severability clause. Subdivision 27-3241 of the new Title 32 requires state procurement guidelines to specify a requirement to purchase carpet made in part from recycled material. Subdivision 27-3243 of the new Title 32 provides limited protection for stewardship organizations against 'claims of anti-competitive conduct. Section three of the bill adds a new section 92-jj to the state finance law to establish the Carpet Administrative Fund. Section four sets forth the effective date. JUSTIFICATION: New York State generates about 515 million pounds of carpet waste annu- ally, less than 1% of which are recycled. While there is existing demand for more than 90' of the materials in recycled carpets, the cost of collection, transportation and processing is higher than the market can bear. Recycled carpet competes against virgin plastics and other commod- ities with prices that are impossible to match. Moreover, chemicals like perfluoroalkyl and polyfluoroalkyl substances, or PFAS, are harmful to humans and are often found in carpets produced by major US carpet producers. Carpet EPR will facilitate a level playing field by offset- ting those higher processing costs and preventing solid waste management costs imposed on municipalities and businesses, while mitigating envi- ronmental risks posed by carpet disposal. The carpet recycling supply chain needs the financial incentives provided by the EPR, which has the potential to increase carpet recycl- ing in New York State to 25% within four years, add hundreds of jobs and save more than $4 million per year in waste disposal costs. Increasing the recycling rate to 25% would reduce about 165,000 tons of CO2 emis- sions per year, equivalent to taking 32,000 cars off the roadNew York State must promote recyclability of carpets with an aim for the optimal goal of closed-loop recycling and a circular economy. The solid waste management plan adopted by the Department of Environmental Conservation promotes and supports a system of sustainable solid waste management and favors waste prevention, reuse, and recycling over the disposal of mate- rials. Enactment of this act will reduce carpet waste, encourage closed- loop carpet recycling, and provide a mechanism for carpet producer stewardship of its product through its life cycle. LEGISLATIVE HISTORY: New bill. FISCAL IMPLICATIONS: To be determined. EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
S5027 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 5027 2021-2022 Regular Sessions I N S E N A T E February 22, 2021 ___________ Introduced by Sen. KAVANAGH -- 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 and the state finance law, in relation to establishing a carpet stewardship program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Declaration of legislative findings and intent. The legis- lature finds and declares that it is the policy of the state of New York to promote the recyclability of products and materials and to promote policies that encourage the optimal goal of closed-loop recycling and a circular economy. The legislature finds and declares that the solid waste management plan adopted by the department of environmental conser- vation on December 27, 2010 entitled "Beyond Waste, A Sustainable Mate- rials Management Strategy for New York State" promotes and supports a system of sustainable solid waste management and favors waste prevention, reuse, and recycling over the disposal of materials. The legislature finds and declares that in the solid waste management plan product stewardship was identified as a centerpiece of the new solid waste management plan for the state, and carpet was one of the products identified as most suited to a stewardship approach based on research and feedback from stakeholders. According to the report, carpet accounted for 1.4 percent of total solid waste generation in New York state, or roughly 512 million pounds. Carpet waste is heavy and bulky and imposes significant solid waste management cost on municipalities because it is expensive to dispose of. The legislature finds and declares that perfluoroalkyl and polyfluoroalkyl substances, or PFAS chemicals, which are harmful to humans are increasingly being found in household products, including carpets produced by major United States carpet producers. The legislature further finds and declares that reduc- ing the toxic components in carpet will not only reduce exposure to toxic chemicals in our homes and workplaces, but also improve market EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD09864-01-1 S. 5027 2 opportunities for carpet to be recycled back into carpet materials. The legislature finds and declares that enactment of this act will reduce carpet waste, encourage closed-loop carpet recycling, and provide a mechanism for carpet producer stewardship of its product through its life cycle. § 2. Article 27 of the environmental conservation law is amended by adding a new title 32 to read as follows: TITLE 32 CARPET STEWARDSHIP SECTION 27-3201. SHORT TITLE AND DEFINITIONS. 27-3203. LABELING, WARRANTY, AND DESIGN REQUIREMENTS. 27-3205. POST-CONSUMER CONTENT AND ADHESIVE REQUIREMENTS. 27-3207. CARPET STEWARDSHIP ADVISORY BOARD. 27-3209. STEWARDSHIP ORGANIZATION RESPONSIBILITIES. 27-3211. STEWARDSHIP PLAN. 27-3213. SUBMISSION TO THE COMMISSIONER AND APPROVAL TIMING. 27-3215. COLLECTION CONVENIENCE STANDARD REQUIREMENTS. 27-3217. STEWARDSHIP ASSESSMENT. 27-3219. ADMINISTRATIVE FEE. 27-3221. PRODUCER RESPONSIBILITIES. 27-3223. RETAILER AND DISTRIBUTOR RESPONSIBILITIES. 27-3225. REQUIREMENTS FOR PROGRAM COLLECTORS. 27-3227. REQUIREMENT FOR RECYCLING. 27-3229. DEPARTMENT RESPONSIBILITIES. 27-3231. RULES AND REGULATIONS. 27-3233. ANNUAL AUDIT AND REPORT. 27-3235. ENFORCEMENT AND PENALTIES. 27-3237. STATE PREEMPTION. 27-3239. PROCUREMENT. 27-3241. ANTI-COMPETITIVE CONDUCT. 27-3243. SEVERABILITY. § 27-3201. SHORT TITLE AND DEFINITIONS. 1. THIS TITLE MAY BE KNOWN AS AND MAY BE CITED AS THE "NEW YORK STATE CARPET STEWARDSHIP LAW". 2. THE DEFINITIONS IN THIS SECTION APPLY THROUGHOUT THE TITLE UNLESS THE CONTEXT CLEARLY REQUIRES OTHERWISE: (A) "BRAND" MEANS A NAME, SYMBOL, WORD, OR MARK THAT ATTRIBUTES THE PRODUCT TO THE OWNER OR LICENSEE OF THE BRAND AS THE PRODUCER. (B) "CARPET" MEANS A MANUFACTURED ARTICLE THAT IS (I) USED IN COMMER- CIAL BUILDINGS OR SINGLE OR MULTIFAMILY RESIDENTIAL BUILDINGS, (II) AFFIXED OR PLACED ON THE FLOOR OR BUILDING WALKING SURFACE AS A DECORA- TIVE OR FUNCTIONAL BUILDING INTERIOR OR EXTERIOR FEATURE, AND (III) PRIMARILY CONSTRUCTED OF A TOP SURFACE OF SYNTHETIC OR NATURAL FACE FIBERS OR YARNS OR TUFTS ATTACHED TO A BACKING SYSTEM MADE OF SYNTHETIC OR NATURAL MATERIALS. "CARPET" INCLUDES, BUT IS NOT LIMITED TO, A COMMERCIAL OR RESIDENTIAL BROADLOOM CARPET, MODULAR CARPET TILES, AND ARTIFICIAL TURF, PAD OR UNDERLAYMENT USED IN CONJUNCTION WITH A CARPET. "CARPET" DOES NOT INCLUDE HANDMADE RUGS, AREA RUGS, OR MATS. (C)"CARPET STEWARDSHIP ADVISORY BOARD" MEANS THE BOARD CREATED UNDER SECTION 27-3207 OF THIS TITLE. (D) "CLOSED-LOOP RECYCLING" MEANS A PROCESS WHERE DISCARDED CARPET IS COLLECTED, RECYCLED, AND THEN USED AGAIN TO MAKE CARPET. (E) "COLLECTION RATE" MEANS THE AMOUNT OF CARPET COLLECTED AND IS DETERMINED BY DIVIDING THE AMOUNT OF DISCARDED CARPET COLLECTED FOR RECYCLING OR REUSE BY THE TOTAL AMOUNT OF CARPET DISCARDED IN A PROGRAM YEAR. S. 5027 3 (F) "COLLECTION SITE" MEANS A PERMANENT LOCATION IN THE STATE AT WHICH DISCARDED CARPET MAY BE RETURNED FOR RECYCLING BY A CONSUMER. (G) "COLLECTOR" MEANS A PERSON WHO COLLECTS DISCARDED CARPET FOR THE PURPOSE OF SUPPLYING THE RECYCLERS. (H) "COMMISSIONER" MEANS THE COMMISSIONER OF ENVIRONMENTAL CONSERVA- TION. (I) "CONSUMER" MEANS A PERSON LOCATED IN THE STATE WHO PURCHASES, OWNS, LEASES, OR USES CARPET, INCLUDING BUT NOT LIMITED TO AN INDIVID- UAL, A BUSINESS, CORPORATION, LIMITED PARTNERSHIP, NOT-FOR-PROFIT CORPO- RATION, THE STATE, A PUBLIC CORPORATION, PUBLIC SCHOOL, SCHOOL DISTRICT, PRIVATE OR PAROCHIAL SCHOOL, OR BOARD OF COOPERATIVE EDUCATIONAL SERVICES OR GOVERNMENTAL ENTITY. (J) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. (K) "DISCARDED CARPET" MEANS CARPET THAT A CONSUMER HAS USED AND DISPOSED OF IN THE STATE. (L) "DISTRIBUTOR" OR "WHOLESALER" MEANS A PERSON WHO BUYS OR OTHERWISE ACQUIRES CARPET AND SELLS OR OFFERS TO SELL CARPET TO RETAILERS IN THIS STATE. (M) "ENERGY RECOVERY" MEANS THE PROCESS BY WHICH ALL OR A PORTION OF SOLID WASTE MATERIALS ARE PROCESSED OR COMBUSTED IN ORDER TO UTILIZE THE HEAT CONTENT OR OTHER FORMS OF ENERGY DERIVED FROM SUCH SOLID WASTE MATERIALS. (N) "PERFLUOROALKYL AND POLYFLUOROALKYL SUBSTANCES" OR "PFAS CHEMI- CALS" MEANS A CLASS OF FLUORINATED ORGANIC CHEMICALS CONTAINING AT LEAST ONE FULLY FLUORINATED CARBON ATOM. (O) "PRODUCER" MEANS ANY PERSON WHO MANUFACTURES OR RENOVATES CARPET THAT IS SOLD, OFFERED FOR SALE, OR DISTRIBUTED IN THE STATE. "PRODUCER" INCLUDES: (I) THE OWNER OF A TRADEMARK OR BRAND UNDER WHICH CARPET IS SOLD, OFFERED FOR SALE, OR DISTRIBUTED IN THIS STATE, WHETHER OR NOT SUCH TRADEMARK OR BRAND IS REGISTERED IN THE STATE; AND (II) ANY PERSON WHO IMPORTS CARPET INTO THE UNITED STATES THAT IS SOLD OR OFFERED FOR SALE IN THE STATE AND THAT IS MANUFACTURED BY A PERSON WHO DOES NOT HAVE A PRESENCE IN THE UNITED STATES. (P) "PROPRIETARY INFORMATION" MEANS INFORMATION THAT IS A TRADE SECRET OR IS PRODUCTION, COMMERCIAL, OR FINANCIAL INFORMATION, THAT IF DISCLOSED WOULD IMPAIR THE COMPETITIVE POSITION OF THE SUBMITTER AND WOULD MAKE AVAILABLE INFORMATION NOT OTHERWISE PUBLICLY AVAILABLE. (Q) "RECYCLING" MEANS THE PROCESS BY WHICH DISCARDED CARPET IS PROC- ESSED AND RETURNED TO THE ECONOMIC MAINSTREAM FOR THE PURPOSE OF PREPAR- ING THE MATERIALS, COMPONENTS, OR COMMODITIES FOR USE OR REUSE IN NEW PRODUCTS OR COMPONENTS. "RECYCLING" DOES NOT INCLUDE ENERGY RECOVERY OR ENERGY GENERATION BY MEANS OF COMBUSTION OR LANDFILL DISPOSAL OF DISCARDED CARPET. (R) "RECYCLING RATE" MEANS THE PERCENTAGE OF DISCARDED CARPET PRODUCTS THAT IS MANAGED THROUGH RECYCLING OR REUSE, AS DEFINED BY THIS TITLE, AND IS COMPUTED BY DIVIDING THE AMOUNT OF DISCARDED CARPET COLLECTED AND RECYCLED OR REUSED BY THE TOTAL AMOUNT OF DISCARDED CARPET COLLECTED OVER A PROGRAM YEAR. (S) "RECYCLER" MEANS A PERSON THAT ENGAGES IN RECYCLING. (T) "RETAILER" MEANS ANY PERSON WHO SELLS OR OFFERS FOR SALE CARPET TO A CONSUMER IN THE STATE. (U) "REUSE" MEANS DONATING OR SELLING A DISCARDED CARPET PRODUCT BACK INTO THE MARKET FOR ITS ORIGINAL INTENDED USE, WHEN THE DISCARDED CARPET PRODUCT RETAINS ITS ORIGINAL PERFORMANCE CHARACTERISTICS AND CAN BE USED FOR ITS ORIGINAL PURPOSE. S. 5027 4 (V) "SALE" OR "SELL" MEANS A TRANSFER OF TITLE OF CARPET FOR CONSIDER- ATION, INCLUDING A REMOTE SALE CONDUCTED THROUGH A SALES OUTLET, CATA- LOG, WEBSITE, TELEPHONE, OR THROUGH SIMILAR ELECTRONIC MEANS. "SALE" OR "SELL" INCLUDES A LEASE THROUGH WHICH CARPET IS PROVIDED TO A CONSUMER IN THE STATE BY A PRODUCER, DISTRIBUTOR, OR RETAILER. (W) "STEWARDSHIP ORGANIZATION" MEANS A NONPROFIT ENTITY REPRESENTING PRODUCERS AND OTHER DESIGNATED REPRESENTATIVES WHO ARE COOPERATING WITH ONE ANOTHER TO COLLECTIVELY ESTABLISH AND OPERATE A STEWARDSHIP PROGRAM FOR THE PURPOSE OF COMPLYING WITH THIS TITLE. (X) "STEWARDSHIP PROGRAM" MEANS A PROGRAM FINANCED AND IMPLEMENTED BY PRODUCERS THROUGH A STEWARDSHIP ORGANIZATION THAT PROVIDES FOR, BUT IS NOT LIMITED TO, THE COLLECTION, TRANSPORTATION, REUSE, RECYCLING, OR PROPER MANAGEMENT THROUGH DISPOSAL, OR AN APPROPRIATE COMBINATION THERE- OF, OF DISCARDED CARPET. § 27-3203. LABELING, WARRANTY, AND DESIGN REQUIREMENTS. 1. ON AND AFTER THE EFFECTIVE DATE OF THIS TITLE, CARPET SOLD OR OFFERED FOR SALE IN THE STATE SHALL BE ACCOMPANIED BY THE FOLLOWING IDENTIFYING INFORMATION: (A) NAME OF THE PRODUCER AND CONTACT INFORMATION; (B) CARPET MATERIAL, COMPOSITION, AND TYPE OF CONSTRUCTION. 2. ON AND AFTER THE EFFECTIVE DATE OF THIS TITLE, ALL CARPET SHALL BE ACCOMPANIED BY AN ALL-INCLUSIVE WARRANTY FOR A PERIOD OF SEVEN YEARS, WITH EXCEPTIONS FOR INAPPROPRIATE USE AND DAMAGE. 3. ON AND AFTER A DATE THAT IS TWO YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, NO CARPET SOLD OR OFFERED FOR SALE IN THE STATE SHALL CONTAIN OR BE TREATED WITH PFAS CHEMICALS TO PROVIDE A SPECIFIC CHARAC- TERISTIC, APPEARANCE OR QUALITY, TO PERFORM A SPECIFIC FUNCTION, OR FOR ANY OTHER PURPOSE. § 27-3205. POST-CONSUMER CONTENT AND ADHESIVE REQUIREMENTS. 1. ON AND AFTER A DATE THAT IS TWO YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, ALL CARPET SOLD IN THE STATE SHALL BE MANUFACTURED WITH A MINIMUM OF TEN PERCENT FROM POST-CONSUMER SOURCES; AND FOUR YEARS THERE- AFTER, A MINIMUM OF TWENTY PERCENT FROM POST-CONSUMER SOURCES; AND FIVE YEARS THEREAFTER, A MINIMUM OF THIRTY PERCENT FROM SUCH SOURCES. 2. ON AND AFTER A DATE WHICH IS TWO YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, NO PERMANENT ADHESIVES MAY BE USED IN THE INSTALLATION OF CARPET. ALL CARPET SHALL BE DESIGNED AND INSTALLED SO AS TO ALLOW REMOVAL WITHOUT SIGNIFICANT DAMAGE TO THE CARPET. § 27-3207. CARPET STEWARDSHIP ADVISORY BOARD. 1. THERE IS HEREBY ESTABLISHED WITHIN THE DEPARTMENT THE CARPET STEWARDSHIP ADVISORY BOARD TO RECEIVE AND REVIEW STEWARDSHIP PLANS REQUIRED BY THIS TITLE AND MAKE RECOMMENDATIONS TO THE COMMISSIONER REGARDING THEIR APPROVAL. 2. THE BOARD SHALL BE COMPOSED OF ELEVEN VOTING MEMBERS TO BE APPOINTED BY THE COMMISSIONER. SUCH MEMBERS SHALL INCLUDE: (A) ONE REPRESENTATIVE OF CARPET PRODUCERS; (B) ONE REPRESENTATIVE OF CARPET RETAILERS; (C) ONE REPRESENTATIVE OF CARPET RECYCLERS; (D) ONE REPRESENTATIVE OF CARPET COLLECTORS; (E) TWO REPRESENTATIVES OF COMPANIES THAT UTILIZE DISCARDED CARPET TO MANUFACTURE A NEW PRODUCT; (F) ONE REPRESENTATIVE OF A CARPET INSTALLER ASSOCIATION; (G) ONE REPRESENTATIVE FROM A STATEWIDE ENVIRONMENTAL ORGANIZATION; (H) ONE REPRESENTATIVE FROM A STATEWIDE WASTE DISPOSAL ASSOCIATION; (I) ONE REPRESENTATIVE FROM THE NEW YORK PRODUCT STEWARDSHIP COUNCIL; AND S. 5027 5 (J) ONE AT-LARGE MEMBER. 3. SUCH APPOINTMENTS SHALL BE MADE NO LATER THAN THE FIRST DAY OF JANUARY FOLLOWING THE DATE ON WHICH THIS TITLE TAKES EFFECT. 4. THE MEMBERS SHALL DESIGNATE A CHAIR FROM AMONG THE MEMBERS BY MAJORITY VOTE. BOARD MEMBERS SHALL RECEIVE NO COMPENSATION BUT SHALL BE ENTITLED TO THEIR NECESSARY AND ACTUAL EXPENSES INCURRED IN THE PERFORM- ANCE OF THEIR BOARD DUTIES. 5. THE BOARD SHALL MEET AT LEAST QUARTERLY BY CALL OF THE CHAIR. 6. EACH CARPET STEWARDSHIP PLAN PREPARED BY A STEWARDSHIP ORGANIZATION PURSUANT TO THIS TITLE SHALL BE SUBMITTED TO THE ADVISORY BOARD, WHICH SHALL CONSIDER WHETHER THE PLAN MEETS THE CRITERIA AND OBJECTIVES OF THIS TITLE. 7. THE BOARD SHALL, WITHIN NINETY DAYS OF SUCH SUBMISSION, EITHER: (A) FORWARD THE PLAN TO THE COMMISSIONER WITH ITS RECOMMENDATION FOR APPROVAL; OR (B) RETURN THE PLAN WITH ITS DISAPPROVAL AND STATED REASONS THEREFOR, INCLUDING ANY RECOMMENDED CHANGES TO THE PLAN NECESSARY FOR APPROVAL. 8. A STEWARDSHIP ORGANIZATION MAY RESUBMIT A PLAN FOR APPROVAL AT ANY TIME. UPON SUCH RESUBMISSION, THE BOARD SHALL WITHIN NINETY DAYS FORWARD THE PLAN TO THE COMMISSIONER WITH ITS RECOMMENDATION FOR APPROVAL OR DISAPPROVAL. 9. THE BOARD SHALL REVIEW THE SUBMITTED ANNUAL REPORTS AND MAKE SUCH RECOMMENDATIONS TO THE DEPARTMENT AND STEWARDSHIP ORGANIZATION WITH AN APPROVED PLAN FOR IMPROVING THE PLAN. 10. THE DECISION OF THE BOARD SHALL BE BY VOTE OF THE MAJORITY OF ITS MEMBERSHIP. § 27-3209. STEWARDSHIP ORGANIZATION RESPONSIBILITIES. 1. A STEWARDSHIP ORGANIZATION SHALL BE CREATED AND FINANCED COLLEC- TIVELY BY CARPET PRODUCERS. 2. THE STEWARDSHIP ORGANIZATION SHALL DEMONSTRATE TO THE DEPARTMENT THE MANAGEMENT CAPABILITY AND FINANCIAL CAPACITY TO OPERATE A STATEWIDE PROGRAM. 3. THE STEWARDSHIP ORGANIZATION SHALL NOT CONTROL, BE CONTROLLED BY, NOR BE UNDER COMMON CONTROL OF ANY SINGLE MANUFACTURER, THIRD-PARTY ORGANIZATION, VENDOR, COLLECTOR, OR INDUSTRY-WIDE TRADE ASSOCIATION. 4. THE STEWARDSHIP ORGANIZATION SHALL HAVE A BOARD OF DIRECTORS COMPOSED OF THE FOLLOWING: (A) TWO REPRESENTATIVES OF CARPET PRODUCERS; (B) TWO REPRESENTATIVES OF CARPET RECYCLERS; (C) TWO REPRESENTATIVES OF MANUFACTURERS WHO UTILIZE RECYCLED CARPET MATERIALS BUT ARE NOT CARPET PRODUCERS; (D) ONE REPRESENTATIVE OF RETAILERS; (E) ONE REPRESENTATIVE OF A NEW YORK-BASED ENVIRONMENTAL ADVOCACY ORGANIZATION; AND (F) ONE REPRESENTATIVE OF AN ORGANIZATION THAT REPRESENTS LOCAL GOVERNMENT. 5. ON OR BEFORE THE FIRST OF JULY FOLLOWING THE FORMATION OF THE CARPET STEWARDSHIP ADVISORY BOARD, A STEWARDSHIP ORGANIZATION SHALL SUBMIT A STEWARDSHIP PLAN TO THE CARPET STEWARDSHIP ADVISORY BOARD. 6. A STEWARDSHIP ORGANIZATION OPERATING A STEWARDSHIP PROGRAM SHALL UPDATE THE STEWARDSHIP PLAN EVERY THREE YEARS, AT A MINIMUM, AND SUBMIT THE UPDATED PLAN TO THE DEPARTMENT FOR REVIEW AND APPROVAL. 7. THE STEWARDSHIP ORGANIZATION SHALL NOTIFY THE DEPARTMENT WITHIN THIRTY DAYS OF ANY SIGNIFICANT CHANGES OR MODIFICATIONS TO THE PLAN OR ITS IMPLEMENTATION. WITHIN THIRTY DAYS OF THE NOTIFICATION, A WRITTEN PLAN AMENDMENT SHALL BE SUBMITTED TO THE DEPARTMENT FOR REVIEW AND APPROVAL. S. 5027 6 8. THE STEWARDSHIP ORGANIZATION SHALL MEET WITH THE CARPET STEWARDSHIP ADVISORY BOARD AT LEAST TWICE PER YEAR. 9. THE STEWARDSHIP ORGANIZATION SHALL BE RESPONSIBLE FOR PRODUCERS' COMPLIANCE WITH THE REQUIREMENTS OF THIS TITLE, INCLUDING: THE PREPARA- TION AND IMPLEMENTATION OF A STEWARDSHIP PLAN, THE PREPARATION AND SUBMISSION OF ANNUAL AUDITS, AND REPORTS TO THE COMMISSIONER AS PROVIDED IN SECTION 27-3233 OF THIS TITLE. § 27-3211. STEWARDSHIP PLAN. 1. THE STEWARDSHIP PLAN SHALL INCLUDE, AT A MINIMUM: (A) CERTIFICATION THAT THE STEWARDSHIP PROGRAM WILL ACCEPT FOR COLLECTION ALL DISCARDED CARPET; (B) CONTACT INFORMATION FOR EACH INDIVIDUAL REPRESENTING THE STEWARD- SHIP ORGANIZATION, INCLUDING THE ADDRESS OF THE STEWARDSHIP ORGANIZATION WHERE THE DEPARTMENT WILL SEND ANY NOTIFICATIONS AND FOR SERVICE OF PROCESS, DESIGNATION OF A PROGRAM MANAGER RESPONSIBLE FOR ADMINISTERING THE PROGRAM, A LIST OF ALL PRODUCERS PARTICIPATING IN THE STEWARDSHIP PROGRAM, AND CONTACT INFORMATION FOR EACH PRODUCER, INCLUDING THE ADDRESS FOR SERVICE OF PROCESS, AND THE BRANDS COVERED BY THE PRODUCT STEWARDSHIP PROGRAM; (C) A DESCRIPTION OF THE METHODS BY WHICH DISCARDED CARPET WILL BE COLLECTED; (D) AN EXPLANATION OF HOW THE STEWARDSHIP PROGRAM WILL ACHIEVE, AT A MINIMUM, A CONVENIENCE STANDARD UNDER SECTION 27-3215 OF THIS TITLE; (E) A DESCRIPTION OF HOW THE EFFECTIVENESS OF THE STEWARDSHIP PROGRAM WILL BE MONITORED, EVALUATED, AND MAINTAINED; (F) THE NAMES AND LOCATIONS OF COLLECTION SITES, TRANSPORTERS, AND RECYCLERS WHO WILL MANAGE DISCARDED CARPET; (G) A DESCRIPTION OF HOW THE DISCARDED CARPET WILL BE SAFELY AND SECURELY TRANSPORTED, TRACKED, AND HANDLED FROM COLLECTION THROUGH FINAL RECYCLING AND PROCESSING; (H) A DESCRIPTION OF THE METHODS TO BE USED TO REUSE OR RECYCLE DISCARDED CARPET TO ENSURE THAT THE COMPONENTS, TO THE EXTENT FEASIBLE, ARE TRANSFORMED OR REMANUFACTURED INTO FINISHED PRODUCTS FOR USE; (I) A DESCRIPTION OF THE METHODS TO BE USED TO MANAGE OR DISPOSE OF DISCARDED CARPET THAT CANNOT BE RECYCLED OR REUSED; (J) ESTABLISH GOALS FOR EACH YEAR OF THE PLAN THAT INCREASE THE ANNUAL PERCENT OF DISCARDED CARPET THAT IS COLLECTED (COLLECTION RATE) AND THE ANNUAL PERCENT THAT IS RECYCLED (RECYCLING RATE) AND THE PERCENT OF WHICH, PENDING AVAILABLE MARKETS, SHOULD BE CLOSED-LOOP RECYCLED. THIS CALCULATION IS TO BE BASED ON THE PREVIOUS THREE-YEAR AVERAGE AMOUNT OF CARPET SOLD IN THE STATE SO THAT THE FOLLOWING GOALS ARE MET: (I) FIVE YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, TWENTY-FIVE PERCENT RECYCLED, OF WHICH TEN PERCENT SHOULD BE CLOSED-LOOP RECYCLING; (II) TEN YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, FIFTY PERCENT RECYCLED, OF WHICH TWENTY PERCENT SHOULD BE CLOSED-LOOP RECYCLING; AND (III) FIFTEEN YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, SEVENTY- FIVE PERCENT RECYCLED, OF WHICH FORTY PERCENT SHOULD BE CLOSED-LOOP RECYCLING. (K) A DESCRIPTION OF THE OUTREACH AND EDUCATIONAL MATERIALS THAT MUST BE PROVIDED TO CONSUMERS, RETAILERS, COLLECTION SITES, AND TRANSPORTERS OF DISCARDED CARPET, AND HOW SUCH OUTREACH WILL BE EVALUATED FOR EFFEC- TIVENESS. THESE MATERIALS SHALL INCLUDE: (I) INFORMATION ABOUT COLLECTION OPPORTUNITIES FOR POST-CONSUMER CARPET; EFFORTS TO PROMOTE THE SOURCE REDUCTION, REUSE, AND RECYCLING OF CARPET; AND S. 5027 7 (II) A PROGRAM THAT SHALL BE IMPLEMENTED TO TRAIN CARPET INSTALLERS ON HOW TO PROPERLY MANAGE DISCARDED CARPET. (L) AN UP-TO-DATE STEWARDSHIP ORGANIZATION WEBSITE AND TOLL-FREE TELE- PHONE NUMBER THROUGH WHICH A CONSUMER CAN EASILY LEARN HOW AND WHERE TO RETURN THEIR DISCARDED CARPET FOR RECYCLING; (M) AN EVALUATION OF THE STATUS OF END MARKETS FOR DISCARDED CARPET AND WHAT, IF ANY, ADDITIONAL END MARKETS ARE NEEDED TO IMPROVE THE FUNC- TIONING OF THE PROGRAMS; (N) A FUNDING MECHANISM THAT DEMONSTRATES SUFFICIENT FUNDING TO CARRY OUT THE PLAN, INCLUDING THE ADMINISTRATIVE, OPERATIONAL, AND CAPITAL COSTS OF THE PLAN; (O) A DESCRIPTION OF A PROCESS BY WHICH AN INDEPENDENT AUDITOR WILL BE SELECTED FOR THE PURPOSES OF SECTION 27-3233 OF THIS TITLE. THE PLAN SHALL IDENTIFY THE CRITERIA USED BY THE STEWARDSHIP ORGANIZATION IN SELECTING AN INDEPENDENT AUDITOR, INCLUDING: (I) IDENTIFY, IN DETAIL, THE OPERATIONAL PLANS FOR INTERACTING WITH RETAILERS ON THE PROPER HANDLING AND MANAGEMENT OF POST-CONSUMER CARPET; (II) DEFINE THE METHODOLOGY FOR CALCULATING THE FEES NECESSARY TO ACHIEVE THE ANNUAL COLLECTION AND RECYCLING RATES; (III) ENSURE THAT FEES COLLECTED ARE SUFFICIENT FOR IMPLEMENTATION OF THIS TITLE. (P) ANY OTHER INFORMATION REQUIRED BY REGULATIONS PROMULGATED BY THE DEPARTMENT. 2. BY THE FIRST OF JULY AFTER THE EFFECTIVE DATE OF THIS TITLE, AND BY JULY FIRST OF EACH YEAR THEREAFTER, THE STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO THE DEPARTMENT THAT INCLUDES, FOR THE PREVIOUS PROGRAM YEAR, A DESCRIPTION OF THE STEWARDSHIP PROGRAM, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: (A) A DESCRIPTION OF THE METHODS USED TO COLLECT, TRANSPORT, AND PROC- ESS DISCARDED COVERED PRODUCTS IN REGIONS OF THE STATE; (B) IDENTIFICATION OF ALL COLLECTION SITES IN THE STATE; (C) THE WEIGHT OF ALL DISCARDED COVERED PRODUCTS COLLECTED AND REUSED OR RECYCLED IN ALL REGIONS OF THE STATE; (D) AN EVALUATION OF WHETHER THE PERFORMANCE GOALS AND RECYCLING RATES ESTABLISHED IN THE STEWARDSHIP PLAN HAVE BEEN ACHIEVED; AND (E) AN ESTIMATED WEIGHT OF DISCARDED COVERED PRODUCTS AND ANY COMPO- NENT MATERIALS THAT WERE COLLECTED PURSUANT TO THE STEWARDSHIP PLAN, BUT NOT RECYCLED. § 27-3213. SUBMISSION TO THE COMMISSIONER AND APPROVAL TIMING. 1. BEFORE REJECTION OR APPROVAL OF A STEWARDSHIP PLAN CAN BE MADE IN ACCORDANCE WITH THIS TITLE, THE STEWARDSHIP ORGANIZATION SHALL SUBMIT THE PLAN TO THE CARPET STEWARDSHIP ADVISORY BOARD. 2. WITHIN SIXTY DAYS OF SUBMISSION OF THE STEWARDSHIP PLAN TO THE COMMISSIONER UPON THE RECOMMENDATION OF THE ADVISORY BOARD, THE COMMIS- SIONER SHALL EITHER APPROVE THE PLAN, OR RETURN IT TO THE STEWARDSHIP ORGANIZATION AND PROVIDE THE REASONS FOR DISAPPROVAL. 3. THE STEWARDSHIP ORGANIZATION SHALL PROVIDE A REVISED PLAN TO THE COMMISSIONER WITHIN SIXTY DAYS, AND THE COMMISSIONER SHALL APPROVE OR REJECT SUCH REVISED PLAN WITHIN THIRTY DAYS. 4. THE STEWARDSHIP ORGANIZATION SHALL IMPLEMENT THE STEWARDSHIP PLAN ON THE FIRST OF JANUARY IN THE YEAR FOLLOWING APPROVAL OF THE PLAN UNDER THIS SECTION. § 27-3215. COLLECTION CONVENIENCE STANDARD REQUIREMENTS. 1. PROGRAM COLLECTION SITES SHALL BE MADE AVAILABLE WITHIN A FIFTEEN MILE RADIUS FOR AT LEAST SEVENTY PERCENT OF THE POPULATION OF THE STATE'S RESIDENTS, AND WITHIN A FIFTEEN MILE RADIUS FOR AT LEAST EIGHTY S. 5027 8 PERCENT OF THE POPULATION OF THE STATE'S RESIDENTS WITHIN THREE YEARS AFTER THE START OF THE PROGRAM. 2. CONVENIENCE STANDARDS SHALL BE EVALUATED BY THE DEPARTMENT PERIOD- ICALLY AND THE DEPARTMENT MAY REQUIRE ADDITIONAL COLLECTION LOCATIONS TO ENSURE ADEQUATE CONSUMER CONVENIENCE. 3. IN THOSE AREAS THAT ARE NOT INCLUDED WITHIN THE COLLECTION CONVEN- IENCE STANDARD IN SUBDIVISION ONE OF THIS SECTION, THE STEWARDSHIP ORGANIZATION SHALL PROVIDE COLLECTION EVENTS AT LEAST ONCE PER YEAR. 4. WITH RESPECT TO A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER CONSULTATION WITH THE APPROPRIATE LOCAL OR REGIONAL ENTITY RESPON- SIBLE FOR THE COLLECTION OF SOLID AND HAZARDOUS WASTE, THE STEWARDSHIP PLAN SHALL ESTABLISH AN ALTERNATIVE CONVENIENCE STANDARD THAT IS APPROVED BY THE DEPARTMENT. § 27-3217. STEWARDSHIP ASSESSMENT. 1. ONE MONTH AFTER THE APPROVAL OF THE STEWARDSHIP PLAN, EACH PRODUCER SHALL INCLUDE IN THE PRICE OF ANY CARPET SOLD TO RETAILERS AND DISTRIBU- TORS IN THE STATE AN AMOUNT DETERMINED UNDER THE APPROVED STEWARDSHIP PLAN. A RETAILER OR DISTRIBUTOR SHALL NOT DEDUCT THIS AMOUNT FROM THE PURCHASE PRICE. 2. EACH PRODUCER SHALL REMIT THE QUARTERLY ASSESSMENT AMOUNT TO THE STEWARDSHIP ORGANIZATION EACH QUARTER. 3. SUCH AN ASSESSMENT SHALL BE IN AN AMOUNT SUFFICIENT TO COVER THE COSTS OF COLLECTION, RECYCLING, AND OTHER ACTIVITIES SPECIFIED IN THE STEWARDSHIP PLAN AS REQUIRED BY THIS TITLE. 4. THE STEWARDSHIP ASSESSMENT AMOUNT SHALL TAKE INTO ACCOUNT THE FINANCIAL BURDEN THAT A PARTICULAR CARPET MATERIAL HAS ON THE STEWARD- SHIP PROGRAM, AND THE AMOUNT OF POST-CONSUMER RECYCLED CONTENT CONTAINED IN A PARTICULAR CARPET, AND BE DIFFERENTIATED TO INCENTIVIZE THE USE OF POST-CONSUMER CONTENT IN CARPET AND DISCOURAGE THE USE OF CARPET MATERI- ALS THAT POSE CHALLENGES FOR THE RECYCLING OF DISCARDED CARPET. 5. THE INDEPENDENT AUDITOR, AS DESCRIBED IN THE STEWARDSHIP PLAN, SHALL VERIFY THAT THE AMOUNT ADDED TO EACH UNIT OF CARPET WILL COVER THE COSTS OF IMPLEMENTING THE STEWARDSHIP PLAN. 6. THE AMOUNTS SO COLLECTED SHALL BE DEPOSITED IN A BANK CHARTERED IN NEW YORK AND SHALL BE EXPENDED ONLY FOR THE PURPOSES OF COMPLIANCE WITH THIS TITLE. § 27-3219. ADMINISTRATIVE FEE. A STEWARDSHIP ORGANIZATION SHALL PAY THE DEPARTMENT THE FOLLOWING FEES, WHICH SHALL BE ADEQUATE TO COVER THE DEPARTMENT'S FULL COSTS OF ADMINISTERING AND ENFORCING THE STEWARDSHIP PROGRAM AND SHALL NOT EXCEED THE AMOUNT NECESSARY TO RECOVER COSTS INCURRED BY THE DEPARTMENT IN CONNECTION WITH THE ADMINISTRATION AND ENFORCEMENT OF THE REQUIREMENTS OF THIS TITLE: 1. A ONE-TIME FEE OF TEN THOUSAND DOLLARS FOR A PLAN UPON SUBMISSION OF AN INITIAL STEWARDSHIP PLAN; AND 2. AN ANNUAL ADMINISTRATIVE FEE TO BE ESTABLISHED BY THE DEPARTMENT IN REGULATIONS TO BE PAID ONE YEAR AFTER THE EFFECTIVE DATE OF THIS TITLE A REIMBURSEMENT FEE TO THE COMMISSIONER FOR THE COSTS OF ADMINISTERING THIS TITLE. § 27-3221. PRODUCER RESPONSIBILITIES. 1. BY THE FIRST OF JANUARY OF THE YEAR FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, EACH PRODUCER SHALL, THROUGH A STEWARDSHIP ORGANIZATION, IMPLEMENT AND FINANCE A STATEWIDE STEWARDSHIP PROGRAM THAT: (A) MANAGES CARPET BY REDUCING ITS WASTE GENERATION; (B) PROMOTES CARPET RECYCLING AND REUSE; AND S. 5027 9 (C) PROVIDES FOR NEGOTIATION AND EXECUTION OF AGREEMENTS TO COLLECT, TRANSPORT, PROCESS, AND MARKET THE PRODUCER'S DISCARDED CARPET FOR END- OF-LIFE RECYCLING, REUSE, OR DISPOSAL. 2. NO PRODUCER MAY SELL OR OFFER FOR SALE CARPET IN THE STATE UNLESS THE PRODUCER IS PART OF A STEWARDSHIP ORGANIZATION IN COMPLIANCE WITH THE PROVISIONS OF THIS TITLE. 3. THE STEWARDSHIP PROGRAM SHALL BE FREE TO THE CONSUMER, CONVENIENT AND ADEQUATE TO SERVE THE NEEDS OF BUSINESSES AND RESIDENTS IN ALL AREAS OF THE STATE ON AN ONGOING BASIS. 4. ON AND AFTER THE FIRST OF MARCH OF THE YEAR FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, NO CARPET SHALL BE SOLD OR OFFERED FOR SALE IN THE STATE THAT IS NOT THE SUBJECT OF AN APPROVED STEWARDSHIP PLAN AS PROVIDED IN THIS TITLE. 5. EACH PRODUCER SHALL SUBMIT A PLAN TO THE DEPARTMENT THROUGH PARTIC- IPATION IN A CERTIFIED STEWARDSHIP ORGANIZATION THAT MEETS THE REQUIRE- MENTS OF SECTION 27-3211 OF THIS TITLE. § 27-3223. RETAILER AND DISTRIBUTOR RESPONSIBILITIES. 1. BEGINNING TWO YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, NO RETAILER OR DISTRIBUTOR MAY SELL OR OFFER FOR SALE CARPET IN THE STATE UNLESS THE PRODUCER OF SUCH CARPET IS PARTICIPATING IN A STEWARDSHIP PROGRAM. 2. ANY RETAILER OR DISTRIBUTOR MAY PARTICIPATE, ON A VOLUNTARY BASIS, AS A DESIGNATED COLLECTION POINT PURSUANT TO A PRODUCT STEWARDSHIP PROGRAM AND IN ACCORDANCE WITH APPLICABLE LAW. 3. NO RETAILER OR DISTRIBUTOR SHALL BE FOUND TO BE IN VIOLATION OF THIS SECTION IF, ON THE DATE THE CARPET WAS ORDERED FROM THE PRODUCER OR ITS AGENT, THE PRODUCER WAS LISTED AS COMPLIANT WITH THIS TITLE ON THE DEPARTMENT'S WEBSITE. § 27-3225. REQUIREMENTS FOR PROGRAM COLLECTORS. A PROGRAM COLLECTOR: 1. MAY NOT CHARGE FOR THE ACCEPTANCE OF CARPET AT POINTS OF COLLECTION. 2. SHALL ACCEPT ALL TYPES AND BRANDS OF CARPET. 3. SHALL ABIDE BY THE BEST MANAGEMENT PRACTICES FOR COLLECTION OF DISCARDED CARPET THAT ARE PROVIDED BY THE STEWARDSHIP ORGANIZATION WITH AN APPROVED PLAN. 4. SHALL SUBMIT AN ANNUAL REPORT TO THE STEWARDSHIP ORGANIZATION WITH AN APPROVED PLAN. § 27-3227. REQUIREMENT FOR RECYCLING. ALL CARPET THAT IS REMOVED BY INSTALLERS AND TO BE DISCARDED IS REQUIRED TO BE TRANSPORTED TO A PROGRAM COLLECTION SITE FOR RECYCLING. § 27-3229. DEPARTMENT RESPONSIBILITIES. 1. UPON STEWARDSHIP PLAN APPROVAL, THE DEPARTMENT SHALL POST INFORMA- TION ON ITS WEBSITE ABOUT THE STEWARDSHIP ORGANIZATION AND ITS PARTIC- IPATING PRODUCERS THAT ARE IN COMPLIANCE WITH THIS TITLE, INCLUDING THE BRANDS OF SUCH PRODUCERS. 2. BEGINNING THE FIRST OF JANUARY OF THE YEAR FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, THE DEPARTMENT SHALL POST ON ITS WEBSITE THE LOCATION OF ALL COLLECTION SITES IDENTIFIED TO THE DEPARTMENT BY THE STEWARDSHIP ORGANIZATION IN ITS PLANS AND ANNUAL REPORTS. 3. THE DEPARTMENT SHALL POST ON ITS WEBSITE THE STEWARDSHIP PLAN APPROVED BY THE DEPARTMENT. 4. THE DEPARTMENT SHALL DEPOSIT THE FEES COLLECTED PURSUANT TO THIS TITLE INTO THE STEWARDSHIP ORGANIZATION FUND AS ESTABLISHED PURSUANT TO SECTION NINETY-TWO-KK OF THE STATE FINANCE LAW. S. 5027 10 5. THE DEPARTMENT SHALL SELECT ONE STEWARDSHIP ORGANIZATION PER FIVE YEAR OPERATING PERIOD. 6. THE DEPARTMENT SHALL MEET WITH THE STEWARDSHIP ORGANIZATION WITH AN APPROVED PLAN AT LEAST ANNUALLY TO REVIEW THE FUNCTIONING OF THE PLAN AND IDENTIFY COMPONENTS OF THE PLAN THAT NEED IMPROVEMENT. 7. STARTING SIX YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE, THE DEPARTMENT SHALL IMPOSE A PENALTY OF TWENTY-FIVE CENTS PER POUND TO BE ASSESSED ON THE STEWARDSHIP ORGANIZATION FOR EACH POUND OF CARPET BEYOND THE AMOUNT ACTUALLY RECYCLED THAT IS MISSING TO ACHIEVE THE GOALS SPECI- FIED IN THE APPROVED STEWARDSHIP PLAN. ALL PENALTIES COLLECTED PURSUANT TO THIS SECTION SHALL BE PAID OVER TO THE COMMISSIONER FOR DEPOSIT TO THE ENVIRONMENTAL PROTECTION FUND ESTABLISHED PURSUANT TO SECTION NINE- TY-TWO-S OF THE STATE FINANCE LAW. § 27-3231. RULES AND REGULATIONS. THE DEPARTMENT IS AUTHORIZED TO PROMULGATE ANY RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS TITLE. § 27-3233. ANNUAL AUDIT AND REPORT. 1. THE STEWARDSHIP ORGANIZATION SHALL APPOINT AN INDEPENDENT AUDITOR WHO SHALL, AT THE END OF EACH CALENDAR YEAR IN WHICH A STEWARDSHIP PLAN IS IN EFFECT, REVIEW THE IMPLEMENTATION OF SUCH PLAN AND ASSESS WHETHER STEWARDSHIP ASSESSMENTS PROVIDED FOR IN SUCH PLAN ARE SUFFICIENT TO FUND THE COSTS OF COMPLIANCE WITH THIS TITLE, AND WHETHER THEY EXCEED SUCH COSTS. THE RESULTS OF SUCH AUDIT SHALL BE SUBMITTED TO THE COMMISSIONER TOGETHER WITH THE ANNUAL REPORT PROVIDED FOR IN THIS SECTION. 2. STARTING WITH YEAR TWO OF THE APPROVED PLAN, THE STEWARDSHIP ORGAN- IZATION SHALL DEMONSTRATE TO THE AUDITOR THAT A FINANCIAL RESERVE EXISTS THAT WILL FINANCE THE ORGANIZATION'S ACTIVITIES FOR AT LEAST SIX MONTHS. 3. AT THE CLOSE OF EACH CALENDAR YEAR IN WHICH A STEWARDSHIP PLAN IS IN EFFECT, THE STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO THE COMMISSIONER AND STEWARDSHIP ADVISORY BOARD CONTAINING THE FOLLOWING INFORMATION: (A) A DETAILED DESCRIPTION OF THE METHODS USED TO COLLECT, TRANSPORT, AND RECYCLE DISCARDED CARPET IN THE STATE; (B) AN EVALUATION OF THE CONVENIENCE OF THE COLLECTION PROCESS FOR CONSUMERS; (C) THE WEIGHT OF DISCARDED CARPET COLLECTED, RECYCLED, AND OTHERWISE DISPOSED OF; (D) THE AMOUNT OF CARPET SOLD IN THE STATE DURING THE REPORTING PERI- OD; (E) AN ESTIMATE OF THE AMOUNT OF DISCARDED CARPET THAT HAS BEEN COLLECTED FOR REUSE AND AN EVALUATION OF WHAT THE STEWARDSHIP ORGANIZA- TION CAN DO TO INCREASE THE AMOUNT OF DISCARDED CARPET THAT IS REUSED; (F) A DESCRIPTION OF THE COLLECTION INFRASTRUCTURE AND LISTING OF COLLECTION SITES; (G) A DESCRIPTION AND EVALUATION OF THE EDUCATION AND OUTREACH PROGRAM, SAMPLES OF EDUCATIONAL MATERIALS PROVIDED TO CONSUMERS AND CARPET INSTALLERS, AND AN EVALUATION OF THE EFFECTIVENESS OF THE MATERI- ALS AND METHODS USED TO DISSEMINATE THE MATERIALS; (H) INFORMATION ON PROGRESS MADE TOWARDS RECYCLING TARGETS AND AN EXPLANATION OF WHY PERFORMANCE GOALS WERE NOT MET, IF APPLICABLE; (I) AN EVALUATION OF THE EFFECTIVENESS OF METHODS AND PROCESSES USED TO ACHIEVE PERFORMANCE GOALS; AND (J) RECOMMENDATIONS FOR ANY CHANGES TO THE PROGRAM. § 27-3235. ENFORCEMENT AND PENALTIES. 1. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ANY PERSON OR ENTITY THAT VIOLATES ANY PROVISION OF OR FAILS TO PERFORM ANY DUTY IMPOSED S. 5027 11 PURSUANT TO THIS TITLE OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDITION OF ANY REGISTRATION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE COMMISSION- ER MADE PURSUANT TO THIS ARTICLE OR ARTICLE SEVENTY-ONE OF THIS CHAPTER SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS FOR EACH VIOLATION AND AN ADDITIONAL PENALTY OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. 2. ANY RETAILER OR DISTRIBUTOR WHO VIOLATES ANY PROVISION OF OR FAILS TO PERFORM ANY DUTY IMPOSED PURSUANT TO THIS TITLE OR ANY RULE OR REGU- LATION PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDITION OF ANY REGISTRATION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL DETERMI- NATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS ARTICLE OR ARTICLE SEVENTY-ONE OF THIS CHAPTER SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH VIOLATION AND AN ADDITIONAL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. 3. ANY PRODUCER OR STEWARDSHIP ORGANIZATION WHO VIOLATES ANY PROVISION OF OR FAILS TO PERFORM ANY DUTY IMPOSED PURSUANT TO THIS TITLE OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, OR ANY TERM OR CONDI- TION OF ANY REGISTRATION OR PERMIT ISSUED PURSUANT THERETO, OR ANY FINAL DETERMINATION OR ORDER OF THE COMMISSIONER MADE PURSUANT TO THIS ARTICLE OR ARTICLE SEVENTY-ONE OF THIS CHAPTER SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH VIOLATION AND AN ADDITIONAL PENALTY OF NOT MORE THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. FOR A SECOND VIOLATION COMMITTED WITHIN TWELVE MONTHS OF A PRIOR VIOLATION, THE PRODUCER OR STEWARDSHIP ORGANIZATION SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED TEN THOUSAND DOLLARS AND AN ADDITIONAL PENALTY OF NOT MORE THAN THREE THOUSAND DOLLARS FOR EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. FOR A THIRD OR SUBSEQUENT VIOLATION COMMITTED WITHIN TWELVE MONTHS OF ANY PRIOR VIOLATION, THE PRODUCER OR STEWARDSHIP ORGANIZATION SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED TWENTY THOUSAND DOLLARS AND AN ADDITIONAL PENALTY OF SIX THOUSAND DOLLARS FOR EACH DAY DURING WHICH SUCH VIOLATION CONTINUES. 4. ALL PRODUCERS PARTICIPATING IN A STEWARDSHIP ORGANIZATION SHALL BE JOINTLY AND SEVERALLY LIABLE FOR ANY PENALTIES ASSESSED AGAINST THE STEWARDSHIP ORGANIZATION PURSUANT TO THIS TITLE AND ARTICLE SEVENTY-ONE OF THIS CHAPTER. 5. CIVIL PENALTIES UNDER THIS SECTION SHALL BE ASSESSED BY THE DEPART- MENT AFTER AN OPPORTUNITY TO BE HEARD PURSUANT 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 OR ENTITY MAY BY SIMILAR PROCESS BE ENJOINED FROM CONTINUING SUCH VIOLATION AND ANY PERMIT, REGISTRATION OR OTHER APPROVAL ISSUED BY THE DEPARTMENT MAY BE REVOKED OR SUSPENDED OR A PENDING RENEWAL DENIED. 6. THE DEPARTMENT AND THE ATTORNEY GENERAL ARE HEREBY AUTHORIZED TO ENFORCE THE PROVISIONS OF THIS TITLE AND ALL MONIES COLLECTED SHALL BE DEPOSITED TO THE CREDIT OF THE ENVIRONMENTAL PROTECTION FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-S OF THE STATE FINANCE LAW. § 27-3237. STATE PREEMPTION. JURISDICTION IN ALL MATTERS PERTAINING TO CARPET RECYCLING IS, BY THIS TITLE, VESTED EXCLUSIVELY IN THE STATE. ANY PROVISION OF ANY LOCAL LAW OR ORDINANCE, OR ANY RULE OR REGULATION PROMULGATED THERETO, GOVERNING CARPET RECYCLING SHALL, UPON THE EFFECTIVE DATE OF THIS TITLE, BE PREEMPTED; PROVIDED HOWEVER, THAT NOTHING IN THIS SECTION SHALL PRECLUDE S. 5027 12 A PERSON FROM COORDINATING, FOR RECYCLING OR REUSE, THE COLLECTION OF CARPET. § 27-3239. PROCUREMENT. STATE PROCUREMENT GUIDELINES SHALL SPECIFY A REQUIREMENT TO PURCHASE A CERTAIN AMOUNT OF CARPET WITH A MINIMUM POST-CONSUMER RECYCLED CONTENT. § 27-3241. ANTI-COMPETITIVE CONDUCT. 1. A STEWARDSHIP ORGANIZATION THAT ORGANIZES THE COLLECTION, TRANS- PORT, AND PROCESSING OF DISCARDED CARPETS, IN AN ACTION TO INCREASE THE RECYCLING OF DISCARDED CARPETS BY A PRODUCER, STEWARDSHIP ORGANIZATION, OR RETAILER THAT AFFECTS THE TYPES AND QUANTITIES BEING RECYCLED OR THE COST AND STRUCTURE OF ANY RETURN PROGRAM SHALL NOT BE LIABLE FOR ANY CLAIM OF A VIOLATION OF ANTI-TRUST, RESTRAINT OF TRADE, OR UNFAIR TRADE PRACTICE ARISING FROM CONDUCT UNDERTAKEN IN ACCORDANCE WITH THE PROGRAM PURSUANT TO THIS SECTION, INCLUDING SETTING AND COLLECTION OF A STEWARD- SHIP CHARGE. 2. PROVIDED HOWEVER, SUBDIVISION ONE OF THIS SECTION SHALL NOT APPLY TO ANY AGREEMENT ESTABLISHING OR AFFECTING THE OUTPUT OR PRODUCTION OF CARPET OR ANY AGREEMENT RESTRICTING THE GEOGRAPHIC AREA OR CUSTOMERS TO WHICH CARPET WILL BE SOLD. § 27-3243. SEVERABILITY. THE PROVISIONS OF THIS TITLE SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE OR PROVISION OF THIS TITLE, OR THE APPLICABILITY THERE- OF TO ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF THIS TITLE AND THE APPLICATION THEREOF SHALL NOT BE AFFECTED THEREBY. § 3. The state finance law is amended by adding a new section 92-kk to read as follows: § 92-KK. CARPET ADMINISTRATIVE FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA- TION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "CARPET ADMINISTRA- TIVE FUND". 2. THE CARPET ADMINISTRATIVE FUND SHALL CONSIST OF ALL REVENUE COLLECTED FROM ADMINISTRATIVE FEES PURSUANT TO TITLE THIRTY-TWO OF ARTI- CLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW AND ANY COST RECOVERIES, OR OTHER REVENUES COLLECTED PURSUANT TO TITLE THIRTY-TWO OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW, AND ANY OTHER MONIES DEPOSITED INTO THE FUND PURSUANT TO LAW. 3. MONEYS OF THE FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE, SHALL BE USED FOR EXECUTION OF CARPET PROGRAM ADMINISTRATION PURSUANT TO TITLE THIRTY-TWO OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVA- TION LAW, AND EXPENDED FOR THE PURPOSES AS SET FORTH IN TITLE THIRTY-TWO OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW. § 4. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amend- ment and/or repeal of any rule or regulation necessary for the implemen- tation of this act on its effective date are authorized to be made and completed on or before such effective date.
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