Sec. 4. 32 MRSA §1866-B, as enacted by PL 1995, c. 395, Pt. P, §4, is repealed.

Sec. 5. 32 MRSA §1866-C, as enacted by PL 1995, c. 395, Pt. P, §5 and affected by §11, is repealed.

Sec. 6. 32 MRSA §1867, sub-§3, as enacted by PL 1975, c. 739, §16, is amended to read:

3. Approval. The commissioner shall approve the licensing of a local redemption center if he finds that the center will provide a convenient service for the return of empty beverage containers the redemption center complies with the requirements established under section 1871-A. The order approving a local redemption center shall license must state the dealers to be served and the kinds, sizes and brand names of empty beverage containers which that the center shall accept accepts.

Sec. 7. 32 MRSA §1867, sub-§4, as amended by PL 1991, c. 819, §12, is further amended to read:

4. Redemption center acceptance. A local redemption center may not refuse to accept from any consumer or other person not a dealer any empty, unbroken and reasonably clean beverage container of the kind, size and brand sold by a dealer served by the center as long as the label for the container is registered under section 1865, subsection 3 or refuse to pay in cash the refund value of the returned beverage container as established by section 1863-A.

Sec. 8. 32 MRSA §1871, as amended by PL 1995, c. 395, Pt. P, §7 and affected by §11, is repealed.

Sec. 9. 32 MRSA §§1871-A, 1871-B and 1871-C are enacted to read:

§1871-A.__Licensing requirements

A license issued annually by the department is required before any person may initiate deposits under section 1863-A, operate a redemption center under section 1867 or act as a contracted agent for the collection of beverage containers under section 1866, subsection 5, paragraph B.

1.__Procedures; licensing fees.__The department shall adopt rules establishing the requirements and procedures for issuance of licenses and annual renewals under this section, including a

fee structure.__Initial rules adopted pursuant to this subsection are routine technical rules as defined in Title 4, chapter 375, subchapter II-A.__Rules adopted effective after calendar year 2003 are major substantive rules as defined in Title 5, chapter 375, subchapter II-A and are subject to review by the joint standing committee of the Legislature have jurisdiction over business and economic development matters.

2.__Criteria for licensing rules.__In developing rules under subsection 1 for licensing redemption centers, the department shall consider at least the following:

A.__The health and safety of the public, including sanitation protection when food is also sold on the premises; and

B.__The convenience for the public, including standards governing the distribution of centers by population or by distance, or both.

§1871-B.__Beverage Container Enforcement Fund

1.__Creation.__The Beverage Container Enforcement Fund, referred to in this section as the "fund," is created under the jurisdiction and control of the department.

2.__Sources of money.__The fund consists of the following:

A.__Fees for issuance of licenses and license renewals under section 1871-A;

B.__Fees for registration of beverage container labels and registration renewals under section 1865, subsection 3; and

C. All other money appropriated or allocated for inclusion in the fund.

3.__Application of fund.__The department may combine administration and inspection responsibilities of other programs it administers with administration and enforcement responsibilities under this chapter for efficiency purposes; however, money in the fund may be used to fund only the portion of staff time devoted to administration and enforcement activities under this chapter.

4.__Revolving fund.__The fund is a nonlapsing, revolving fund.__ All money in the fund must be continuously applied by the department to carry out the administrative and enforcement responsibilities of the department under this chapter.

§1871-C.__Department administration

The department shall administer this chapter and has the authority, following public hearing, to adopt necessary rules to

carry it into effect.__The department may adopt rules governing local redemption centers that receive beverage containers from dealers supplied by distributors other than the distributors servicing the area in which the local redemption center is located in order to prevent the distributors servicing the area within which the redemption center is located from being unfairly penalized.__In addition to other actions required by this chapter, department responsibilities include the following.

1.__Registry of labels.__The department shall establish and maintain a registry of beverage container labels.__The registry must contain the information for each beverage type and beverage container filed under section 1865, subsection 3 arranged and displayed in an organized and comprehensible manner.__The department shall update the registry regularly and make information from the registry available upon request.

2.__Provision of information.__The department shall provide information about the operation of this chapter to any affected person whose premises it inspects or visits as part of its licensing and inspection responsibilities.

Sec. 10. 32 MRSA §1872, sub-§1, as enacted by PL 1989, c. 585, Pt. D, §§9 and 11, is repealed.

Sec. 11. Implementation of label registration requirements. In implementing the label registration requirements of the Maine Revised Statutes, Title 32, section 1865, subsection 3, the Department of Agriculture, Food and Rural Resources shall coordinate with the Department of Public Safety, Bureau of Liquor Enforcement and the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations so that, to the maximum extent possible, registration of beer, wine and spirits under that subsection does not duplicate registration requirements enforced by those bureaus.

Sec. 12. Implementation of licensing fees. In adopting rules establishing licensing fees under the Maine Revised Statutes, Title 32, section 1871-A, the Department of Agriculture, Food and Rural Resources shall base the amount of fees on the actual cost of implementing increased responsibilities under this Act. Initially, fees may be set at a level to cover one-time start-up costs, but after that fees must be set at a level to cover ongoing costs only, except for calendar years 2003 and 2004 when the department shall issue redemption centers a 2-year license for a fee not to exceed $40. Under the direction of the joint standing committee of the Legislature have jurisdiction over business and economic development matters, the department shall consult with affected parties in developing the licensing fee schedule.

Sec. 13. Committee reestablished. The Committee to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers, established by Joint Order 2001, H.P. 1389 in the First Regular Session of the 120th Legislature and referred to in this section as the "committee," is reestablished as follows.

1. All members who were members of the committee appointed by the President of the Senate and the Speaker of the House after the First Regular Session of the 120th Legislature may continue to serve on the committee. Members who choose not to continue serving as members may be replaced by the respective appointing authority, except that 2 of the legislative members must be members of the Joint Standing Committee on Business and Economic Development. In addition to the original 13 members, the committee is composed of the following members:

A. One member representing beverage manufacturers who is not a distributor, appointed by the Speaker of the House; and

B. The Commissioner of Agriculture, Food and Rural Resources, or the commissioner's designee.

All additional appointments must be made no later than 30 days following the effective date of this Act. The appointing authorities shall notify the Executive Director of the Legislative Council upon making their appointments. The Senator named to the committee serves as Senate chair and the first named House member serves as House chair. The committee shall meet at the call of the cochairs.

2. The committee shall study issues related to the operation of bottle redemption businesses and to the handling and collection of returnable containers. In examining these issues, the committee shall:

A. Develop a process for identifying ways to improve the efficiency of the returnable container deposit law;

B. Examine potential improvements including redesigning the operation of the system;

C. Study the viability of establishing cooperative container pick-up arrangements between redemption centers, distributors and collection agents;

D. Further study possible technological improvements that will enhance the efficiency of the returnable container deposit law; and

E. Further examine the impact on rates of return of a proposal included in the report of the Committee to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers that would decrease from 15¢ to 5¢ the refund value of wine and spirit containers of greater than 50 milliliters that are sold in the State.

3. The State Planning Office shall absorb costs to provide staffing for the committee and other costs of the study, except legislative per diem and legislative expenses.

4. Committee members who are Legislators are entitled to receive the legislative per diem, as defined in the Maine Revised Statutes, Title 3, section 2, and reimbursement for travel and other necessary expenses for their attendance at authorized meetings of the committee.

5. The cochairs of the committee, with assistance from the committee staff, shall administer that portion of the committee's budget related to legislative per diem and legislative expenses. Within 10 days after its first meeting, the committee shall present a work plan and proposed budget to the Legislative Council for its approval. The committee may not incur expenses that would result in the committee's exceeding its approved budget.

6. The committee shall submit a report that includes its findings and recommendations including suggested legislation to the joint standing committee of the Legislature having jurisdiction over business and economic development matters and the Legislative Council by December 1, 2002. Following receipt and review of the report, the joint standing committee of the Legislature having jurisdiction over business and economic development matters may report out a bill to the First Regular Session of the 121st Legislature to implement the committee's recommendations. If the committee requires a limited extension of time to conclude its study and to make its report, it may apply to the Legislative Council, which may grant the extension.

Sec. 14. Rulemaking. Rules adopted for the initial implementation of this Act, with the exception of that part that enacts Title 32, section 1871-A, are major substantive rules as defined in the Title 5, chapter 375, subchapter II-A and are subject to review by the joint standing committee of the Legislature having jurisdiction over business and economic development matters. Following adoption of rules for the initial

implementation of this Act, unless otherwise specified in the law, rules adopted to implement this Act are routine technical rules.

Sec. 15. Appropriations and allocations. The following appropriations and allocations are made.

AGRICULTURE, FOOD AND RURAL RESOURCES, DEPARTMENT OF

Beverage Container Enforcement Fund

Initiative: Allocates funds for 2 additional Consumer Protection Inspector positions, one additional Management Analyst position, one additional 1/2-time Compliance Officer position, one additional 1/2-time Clerk Typist III position and start-up, rulemaking and operational costs necessary to administer a licensing program for bottle redemption centers.

Other Special Revenue funds 2001-02 2002-03

Positions - Legislative Count (0.000) (4.000)

Personal Services $0 $56,994

All Other 0 28,249

________ ________

Total $0 $85,243

AGRICULTURE, FOOD AND RURAL RESOURCES, DEPARTMENT OF

DEPARTMENT TOTALS 2001-02 2002-03

OTHER SPECIAL REVENUE FUNDS $0 $85,243

________ ________

DEPARTMENT TOTAL - ALL FUNDS $0 $85,243

LEGISLATURE

Commission to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers

Initiative: Provides funds for the per diem and expenses of legislative members of the Commission to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers.

General Fund 2001-02 2002-03

Personal Services $0 $825

All Other 0 750

________ ________

Total $0 $1,575

LEGISLATURE

DEPARTMENT TOTALS 2001-02 2002-03

GENERAL FUND $0 $1,575

________ ________

DEPARTMENT TOTAL - ALL FUNDS $0 $1,575

SECTION TOTALS 2001-02 2002-03

GENERAL FUND $0 $1,575

OTHER SPECIAL REVENUE FUNDS $0 $85,243

________ ______

SECTION TOTAL - ALL FUNDS $0 $86,818

FISCAL NOTE

2002-03

APPROPRIATIONS/ALLOCATIONS

General Fund $1,575

Other Funds 85,243

REVENUES

Other Funds $85,243

The Legislature will require an additional General Fund appropriation of $1,575 in fiscal year 2002-03 for the per diem and expenses of legislative members of the Commission to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers.

The bill requires that the State Planning Office within the Executive Department absorb the costs of providing the staffing needs and study costs incurred by the Commission to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers. In order to complete this additional requirement within currently budgeted resources, the State Planning Office may not be able to complete other previously budgeted responsibilities.

The Beverage Container Enforcement Fund program will require an initial Other Special Revenue funds allocation of $85,243 in fiscal year 2002-03 for 2 Consumer Protection Inspector positions, one Management Analyst position, one 1/2-time Compliance Officer position, one 1/2-time Clerk Typist III position and start-up, rulemaking and operating expenses necessary to administer a licensing program for bottle redemption centers. The starting date for the newly established positions is assumed to be April 1, 2003. To pay for these additional expenses, the program will also be authorized to collect equivalent amounts of certain registration and licensing fees to be deposited as dedicated revenues in the Beverage Container Enforcement Fund. In addition, the program will require additional Other Special revenue funds allocations of $275,249 and $279,844 in fiscal years 2003-04 and 2004-05, respectively.

The additional costs associated with cooperating with other state agencies to minimize certain registration requirements can be absorbed by the Department of Administrative and Financial Services utilizing existing budgeted resources.

SUMMARY

This bill implements the recommendations of the Committee to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers created pursuant to Joint Order 2001, H.P. 1389.

The bill does the following:

1. Requires the label of each type of beverage subject to the returnable container deposit law to be registered with the Department of Agriculture, Food and Rural Resources; requires the department to maintain a register of current beverage container labels and to make that information available to redemption centers; and authorizes redemption centers to refuse to accept empty containers whose labels are not registered;

2. Requires a license from the department to initiate deposits, operate a redemption center or act as a 3rd-party collection agent under the law;

3. Authorizes the department to establish by rule fees for licensing and registration; requires the fees be based on the department's costs in implementing the law; and directs the department to work with affected parties in developing the fees. Departmental rules governing fees are routine technical rules;

4. Requires the department to provide education on the requirements of the law as part of its licensing and inspection responsibilities;

5. Establishes a dedicated fund to pay the costs of administration and enforcement of the law by the department. The fund consists of licensing and registration fees charged by the department; and

6. Reestablishes the Committee to Study Reimbursement Rates for Maine's Bottle Redemption Businesses and Other Issues Related to the Handling and Collection of Returnable Containers to examine ways to improve the efficiency of the law through redesign of the bottle redemption system, establishment of cooperative agreements, introduction of technological improvements or other methods. It also adds 2 additional members to the committee.