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PUBLIC LAWS OF MAINE
First Regular Session of the 121st

CHAPTER 499
S.P. 326 - L.D. 985

An Act To Improve the State's Returnable Bottle Law and Adjust Handling Fees

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 32 MRSA §1862, sub-§2-A is enacted to read:

     2-A. Commingling agreement. "Commingling agreement" means an agreement between 2 or more initiators of deposit allowing the beverage containers for which they have initiated deposits to be commingled by dealers and redemption centers, as described in section 1866-D.

     Sec. 2. 32 MRSA §1862, sub-§8-A, as enacted by PL 2001, c. 661, §2, is amended to read:

     8-A. Initiator of deposit or initiator. "Initiator of deposit" or "initiator" means a manufacturer, distributor or other person who initiates a deposit on a beverage container under section 1863-A.

     Sec. 3. 32 MRSA §1862, sub-§12-E is enacted to read:

     12-E. Reverse vending machine. "Reverse vending machine" means an automated device that uses a laser scanner and microprocessor to accurately recognize the universal product code on containers and to accumulate information regarding containers redeemed, enabling the reverse vending machine to accept containers from redeemers and to issue script for the containers' refund value.

     Sec. 4. 32 MRSA §1865, sub-§3, as enacted by PL 2001, c. 661, §3, is amended to read:

     3. Label registration. An initiator of deposit shall register the container label of any beverage offered for sale in the state on which it initiates a deposit. Registration must be on forms or in an electronic format provided by the department and shall must include the universal product code for each combination of beverage and container manufactured. The initiator of deposit shall renew a label registration annually and whenever that label is revised by altering the universal product code or whenever the container on which it appears is changed in size, composition or glass color. The initiator of deposit shall also include as part of the registration the method of collection for that type of container, identification of a collection agent, identification of all of the parties to a commingling agreement that applies to the container and proof of the collection agreement. The department may charge a fee for registration and registration renewals under this subsection. Rules adopted pursuant to this subsection that establish fees are major substantive rules as defined in Title 5, chapter 375, subchapter II-A 2-A and subject to review by the joint standing committee of the Legislature having jurisdiction over business and economic development matters.

     Sec. 5. 32 MRSA §1866, sub-§3, as amended by PL 1991, c. 819, §6, is further amended to read:

     3. Distributor acceptance. A distributor may not refuse to accept from any dealer or local redemption center any empty, unbroken and reasonably clean beverage container or any beverage container that has been processed through an approved reverse vending machine that meets the requirements of rules adopted by the department pursuant to this chapter of the kind, size and brand sold by the distributor or refuse to pay to the dealer or local redemption center the refund value of a beverage container as established by section 1863-A.

     Sec. 6. 32 MRSA §1866, sub-§4, as amended by PL 1991, c. 819, §7, is further amended to read:

     4. Reimbursement of handling costs. Reimbursement of handling costs is governed by this subsection.

     Sec. 7. 32 MRSA §1866, sub-§5, as amended by PL 1991, c. 819, §8, is further amended to read:

     5. Obligation to pick up containers. The obligation to pick up beverage containers subject to this chapter is determined as follows.

The obligation of the initiator of the deposit under this subsection may be fulfilled by the initiator directly or through a party with which it has entered into a commingling agreement.

     Sec. 8. 32 MRSA §§1866-D and 1866-E are enacted to read:

§1866-D. Commingling of beverage containers

     Notwithstanding any other provision of this chapter to the contrary, 2 or more initiators of deposit may enter into a commingling agreement through which some or all of the beverage containers for which the initiators have initiated deposits may be commingled by dealers and operators of redemption centers as provided in this section.

     An initiator of deposit that enters into a commingling agreement pursuant to this section shall permit any other initiator of deposit to become a party to that agreement on the same terms and conditions as the original agreement.

     1. Commingling requirement. If initiators of deposit enter into a commingling agreement pursuant to this section, commingling of beverage containers must be by all containers of like product group, material and size. An initiator of deposit required pursuant to section 1866, subsection 5 to pick up beverage containers subject to a commingling agreement also shall pick up all other beverage containers subject to the same agreement. The initiator of deposit may not require beverage containers that are subject to a commingling agreement to be sorted separately by a dealer or redemption center.

     2. Commingling of like materials. For purposes of this section, containers are considered to be of like materials if made up of one of the following:

     3. Commingling of like products. For purposes of this section, like products are those that are made up of one of the following:

     4. Registration of commingling agreements. Not later than 48 hours following the execution or amendment of a commingling agreement, including an amendment that adds an additional party to an existing agreement, the parties shall file a copy of the commingling agreement or amendment with the department.

§1866-E. Unclaimed deposits

     The provisions of this section apply only to those beverage containers that are not subject to a commingling agreement pursuant to section 1866-D.

     1. Deposit transaction fund. An initiator of deposit shall maintain a separate account to be known as the initiator's deposit transaction fund. The initiator shall keep that fund separate from all other revenues and accounts. The initiator shall place in that fund the refund value for all nonrefillable beverage containers it sells subject to the provisions of this chapter. Except as specified in subsections 3 and 4, amounts in the initiator's deposit transaction fund may only be expended to pay refund values for returned nonrefillable beverage containers. Amounts in the fund may not be used to pay the handling fees required by this chapter. The fund must be maintained by the initiator on behalf of consumers who have purchased products in refundable nonrefillable beverage containers and on behalf of the State; except as specified in subsections 3 and 4, amounts in the fund may not be regarded as income of the initiator.

     2. Reports. An initiator of deposit shall report to the executive director of Maine Revenue Services within the Department of Administrative and Financial Services by the 20th day of each month concerning transactions affecting its deposit transaction fund in the preceding month. The report must be in a form prescribed by the executive director and must include: the number of nonrefillable beverage containers sold and the number of nonrefillable beverage containers returned in the applicable month; the amount of deposits received in and payments made from the fund in the applicable month and the most recent 3-month period; any income earned on amounts in the fund during the applicable month; the balance in the fund at the close of the applicable month; and such other information as the executive director may require to perform the duties of this section.

     3. Determination of abandoned deposit amounts. The initiator's abandoned deposit amount, at the end of each month, is the amount equal to the amount of deposits that are or should be in the fund, less the sum of:

Income on the fund may be transferred from the fund for use as funds of the initiator.

     4. Transfer of abandoned deposit amounts. By the 20th day of each month, an initiator shall turn over to the executive director of Maine Revenue Services within the Department of Administrative and Financial Services the initiator's abandoned deposit amounts determined pursuant to subsection 3. Those amounts may be paid from the deposit transaction fund. Amounts collected by the executive director pursuant to this subsection must be deposited in the General Fund.

     5. Reimbursement of initiators of deposit. If in any month the authorized payments from the deposit transaction fund by an initiator pursuant to this section exceed the funds that are or should be in the initiator's deposit transaction fund, the State shall reimburse the initiator, from amounts received pursuant to subsection 4, for those refunds paid by the initiator for nonrefillable beverage containers for which the funds that are or should be in the initiator's deposit transaction fund are insufficient; except that reimbursements paid by the State to an initiator may not exceed amounts paid by the initiator to the State pursuant to subsection 4 in the preceding 24 months less amounts paid by the State to the initiator pursuant to this subsection during that same 24-month period.

     6. Small bottlers and brewers exempt. A brewer who produces no more than 50,000 gallons of its product or a bottler of water who sells no more than 250,000 containers each containing no more than one gallon of its product in a calendar year is exempt from the requirements of this section for that year.

     Sec. 9. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL
SERVICES, DEPARTMENT OF

Revenue Services - Bureau of 0002
Initiative: Appropriates funds to establish one Senior Tax Examiner position and other related operating costs. The fiscal year 2003-04 amount includes $100,000 to contract for the computer programming necessary to add this new requirement to the computer system in order to account for, print and process returns.
General Fund 2003-04 2004-05

ADMINISTRATIVE AND FINANCIAL
SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS 2003-04 2004-05

AGRICULTURE, FOOD AND RURAL
RESOURCES, DEPARTMENT OF

Beverage Container Enforcement
Fund 0971

Initiative: Appropriates funds to establish one Agricultural Compliance Officer position and operating costs necessary to verify commingling agreements.
General Fund 2003-04 2004-05

AGRICULTURE, FOOD AND RURAL
RESOURCES, DEPARTMENT OF
DEPARTMENT TOTALS 2003-04 2004-05

SECTION TOTALS 2003-04 2004-05

Effective September 13, 2003, unless otherwise indicated.

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