You know, I find all this discussion funny in an odd way, in that not once in my life have I lived anywhere that forced recycling of any type. I currently live in Murphy, NC - a beautiful mountain town that is, nevertheless, boring, hickish, and backwater as heck. Most of us have our own composting of one form or another. Most of us burn our yard rubbish, and everything else just goes to the dump. There is no trash pickup where I live, no recycling centers, none of that. I'm not even sure how I would feel if they started mandatory recycling. And if I wanted to do regular recycling right now, I wouldn't even know where to take it, and whether it would be worth the extra gas to do so.
I can see some potential coffee ground problems, though: can cloth and paper, like filters and those horrid coffee teabags, go into the compost, or are you supposed to scrape out the grounds into the compost, then toss the filter or teabag into the trash? What about tea, for that matter? Would this mean every office with a coffee pot would have to keep a compost bin now? I can see a lot of nits to be picked with this ruling.