Amends TCA Title 4; Title 67 and Title 68.

This bill requires the establishment of a producer responsibility organization (PRO), creates an advisory board for the PRO, requires the development of periodic needs assessments and plans to address recycling, requires the department of environment and conservation to perform certain duties to assist in such purposes, and establishes penalties for violations. This bill also requires the department to regularly review and update a list of chemicals of high concern in packaging. This bill lists several such substances and makes it a violation of this bill for a person to sell or distribute in Tennessee any packaging designed to include any such chemical or substance on or after July 1, 2028. This bill defines "packaging materials" to mean a part of a package or container, including material that is used for the containment, protection, handling, delivery, and presentation of a product that is sold, offered for sale, imported, or distributed in Tennessee. This bill specifies that the following are packaging materials: (1) Primary, secondary, and tertiary packaging intended for the consumer market; and (2) Service packaging designed and intended to be filled at the point of sale, including carry-out bags, bulk goods bags, and take-out and home delivery food service packaging. For purposes of this bill, a packaging material is a "covered material", unless the packaging material qualifies for one of the following exceptions: (1) Packaging materials intended to be used for the long-term storage or protection of a durable product and that are intended to transport, protect, or store the product for at least five years; (2) Packaging material used exclusively in industrial or manufacturing processes; (3) Packaging material used to contain a product that is regulated as a drug, medical device, or dietary supplement by the federal food and drug administration under the Federal Food, Drug, and Cosmetic Act, or any equipment and materials used to manufacture such products; (4) Packaging material used to contain a product that is regulated under the federal Virus-Serum-Toxin Act; (5) Packaging material used to contain a product that is required to be sold in packaging material that meets the requirements of the federal Poison Prevention Packaging Act; or (6) Any other material that the department of environment and conservation exempts by rule. For purposes of this bill, unless exempted, a producer is a person who: (1) Uses covered materials for the sale or distribution of a product in Tennessee under the person's own name or brand; (2) Is a licensee of a trademark under which a covered material is used in a commercial enterprise in Tennessee, regardless of whether the trademark is registered; or (3) Imports into Tennessee a product that includes a covered material and that is used in a commercial enterprise in this state. This bill exempts the following from this bill's requirements for a producer: (1) Persons with less than $1,000,000 in realized gross total revenue during the immediately preceding calendar year; (2) Persons who used less than one ton of covered materials for products sold or distributed within or into Tennessee during the immediately preceding calendar year; (3) State and local governmental entities; and (4) Nonprofit § 501(c)(3) organizations. This bill requires a producer to establish a PRO by July 1, 2024. This bill requires the PRO to do the following: (1) Facilitate at least one needs assessment every 10 years in consultation with the advisory board created by this bill and the department. The full text of this bill specifies various factors that must be considered as a part of a needs assessment. Generally, a needs assessment will determine the need for, and cost of, reuse and recycling. The initial needs assessment is due by July 1, 2025; (2) Consult with the advisory board and the department in the development of the producer responsibility plan proposal. Generally, a producer responsibility plan proposal will describe how to address and implement the findings of the needs assessment and establish a funding mechanism from dues paid by producers. The full text of this bill specifies various components that must be included in a producer responsibility plan proposal. The initial producer responsibility plan proposal is due by July 1, 2026; (3) Submit a producer responsibility plan proposal that covers a period of five years to the department and the advisory board; (4) Operate and administer the department-approved producer responsibility plan as a producer responsibility program; (5) Establish performance goals for covered material types at five-, ten-, and fifteen-year rolling intervals; and (6) Submit annual progress reports to the department and the advisory board. As an alternative method for participating in the producer responsibility program, this bill authorizes a producer to submit to the advisory board and the department an individual producer responsibility program plan proposal, if the producer notifies the department of its intent to submit an individual plan no later than July 1, 2025, and by July 1 of each subsequent year. An individual producer responsibility program plan proposal must: (1) Comply with the requirements for a PRO's producer responsibility plan proposal; (2) Describe how the producer participating in the individual program will contribute to the costs of the department overseeing the program; and (3) Describe any alternative collection programs operated by the producer and their recycling rates. This bill requires the commissioner of environment and conservation to appoint a 13-member producer responsibility program advisory board. The full text of this bill specifies membership qualifications, terms (four years, except for initial appointees), compliance with open meetings and public records laws, travel reimbursement, and various organizational and procedural matters for the advisory board. This bill requires the advisory board to do the following: (1) Advise the PRO throughout the needs assessment process and review the needs assessment; (2) Advise the PRO on the development of producer responsibility plan proposals; (3) Review a producer responsibility plan proposal submitted to the department and recommend that the department approve or reject the proposal; (4) Review an individual producer responsibility program plan proposal submitted to the department, and recommend that the department approve or reject the proposal; and (5) Review the annual reports. This bill requires TDEC to do the following: (1) Provide administrative assistance to the advisory board, or select an impartial, third-party facilitator to convene and provide administrative support to the advisory board; (2) Review and update a list of chemicals of high concern in packaging at least every three years; (3) Consult with the PRO and the advisory board in the development of the producer responsibility plan proposal; (4) Approve or reject a producer responsibility plan proposal submitted to the department; (5) Approve or reject an individual producer responsibility program plan proposal submitted to the department; (6) Review the annual reports; (7) Administer, review, oversee, and enforce the producer responsibility plan; (8) Review and annually update a minimum recyclables list that considers the availability of recycling services for each material; and (9) Promulgate rules necessary to implement and administer this bill. On or after July 1, 2028, it is a violation of this bill for a person to sell or distribute in this state any packaging designed to include ortho-phthalates, bisphenols, per and polyfluoroalkyl substances (PFAS), styrene, lead and lead compounds, cadmium, mercury, hexavalent chromium and hexavalent chromium compounds, perchlorate, benzophenone and its derivatives, formaldehyde, halogenated flame retardants, toluene, and other chemicals of high concern as determined by rule of the department. On or after January 1, 2027, if the department has approved a producer responsibility plan, this bill prohibits a producer from selling or distributing any products packaged in covered materials in Tennessee unless the producer is participating in the PRO producer responsibility plan or an individual producer responsibility plan. A producer or PRO that violates this bill is subject to: (1) For a first violation, a civil penalty of $5,000 for the first day that the violation occurs and $1,500 for each additional day the violation continues; (2) For a second violation, a civil penalty of $10,000 for the first day that the violation occurs and $3,000 for each additional day the violation continues; and (3) For a third or subsequent violation, a civil penalty of $20,000 for the first day that the violation occurs and $6,000 for each additional day the violation continues. The department is authorized to rescind approval for a PRO producer responsibility plan or individual producer responsibility program plan at any time for good cause. If, based upon an annual report, goals have not been met, the department is authorized to require the PRO to amend the producer responsibility plan or a producer to amend its individual producer responsibility program plan.