HP0286, LD 377, item 1, An Act To Protect Small Redemption Centers

An Act To Protect Small Redemption Centers

Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, because the reimbursement amount for beverage container handling costs has not increased in years, some redemption centers in the State have been forced to close; and

Whereas, this legislation increases the reimbursement amount beginning June 1, 2019; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

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

Sec. 1. 38 MRSA §3106, sub-§7, as enacted by PL 2015, c. 166, §14, is amended to read:

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

A. In addition to the payment of the refund value, the initiator of the deposit under section 3103, subsections 1, 2 and 4 shall reimburse the dealer or local redemption center for the cost of handling beverage containers subject to section 3103, in an amount that equals at least 3¢ per returned container for containers picked up by the initiator before March 1, 2004, at least 3 1/2¢ for containers picked up on or after March 1, 2004 and before March 1, 2010 and , at least 4¢ for containers picked up on or after March 1, 2010 and before June 1, 2019 and at least 5¢ for containers picked up on or after June 1, 2019. The initiator of the deposit may reimburse the dealer or local redemption center directly or indirectly through a party with which it has entered into a commingling agreement.

B. In addition to the payment of the refund value, the initiator of the deposit under section 3103, subsection 3 shall reimburse the dealer or local redemption center for the cost of handling beverage containers subject to section 3103 in an amount that equals at least 3¢ per returned container for containers picked up by the initiator before March 1, 2004, at least 3 1/2¢ for containers picked up on or after March 1, 2004 and before March 1, 2010 and , at least 4¢ for containers picked up on or after March 1, 2010 and before June 1, 2019 and at least 5¢ for containers picked up on or after June 1, 2019. The initiator of the deposit may reimburse the dealer or local redemption center directly or indirectly through a contracted agent or through a party with which it has entered into a commingling agreement.

C. The reimbursement that the initiator of the deposit is obligated to pay the dealer or redemption center pursuant to paragraph A or B must be reduced by 1/2¢ for any returned container that is subject to a qualified commingling agreement that allows the dealer or redemption center to commingle beverage containers of like product group, material and size. A commingling agreement is qualified for purposes of this paragraph if the department determines that 50% or more of the beverage containers of like product group, material and size for which the deposits are being initiated in the State are covered by the commingling agreement or that the initiators of deposit covered by the commingling agreement are initiators of deposit for wine containers who each sell no more than 100,000 gallons of wine or 500,000 beverage containers that contain wine in a calendar year. Once the initiator of deposit has established a qualified commingling agreement for containers of a like product group, material and size, the department shall allow additional brands to be included from a different product group if they are of like material. The State, through the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations, shall make every reasonable effort to enter into a qualified commingling agreement under this paragraph with every other initiator of deposit for beverage containers that are of like product group, size and material as the beverage containers for which the State is the initiator of deposit.

D. Paragraphs A, B and C do not apply to a brewer who annually produces no more than 50,000 gallons of its product or a bottler of water who annually sells no more than 250,000 containers each containing no more than one gallon of its product. In addition to the payment of the refund value, an initiator of deposit under section 3103, subsections 1 to 4 who is also a brewer who annually produces no more than 50,000 gallons of its product or a bottler of water who annually sells no more than 250,000 containers each containing no more than one gallon of its product shall reimburse the dealer or local redemption center for the cost of handling beverage containers subject to section 3103 in an amount that equals at least 3¢ per returned container.

Sec. 2. 38 MRSA §3119 is enacted to read:

§ 3119. Beverage container handling fee review panel

1. Convene biennially. Beginning in September 2021, and every 2 years thereafter, the commissioner shall convene a panel, referred to in this section as "the panel," to review the adequacy of the reimbursement established in section 3106, subsection 7 for beverage container handling costs.

2. Membership; term. The commissioner shall appoint 7 members to the panel to serve for a 4-month term. The panel members must include:

A. Two members who represent initiators of deposit;

B. Two members who represent local redemption centers;

C. One representative of a nonprofit organization that works with issues associated with beverage container recycling;

D. One member of the public; and

E. One representative of the department.

3. Duties. The panel shall review the amount established in section 3106, subsection 7 for the reimbursement of handling costs and shall assess the adequacy of that amount to cover the costs of processing beverage containers by local redemption centers, including but not limited to costs of labor, property, insurance, utilities, shipping and transport. Based on its review, the panel shall develop recommendations regarding the reimbursement of handling costs.

4. Meetings; reports. The panel shall meet as necessary and at the conclusion of its term shall report its findings and recommendations to the commissioner. The commissioner shall include the panel's findings and recommendations in the next report submitted pursuant to section 1772 to the joint standing committee of the Legislature having jurisdiction over natural resources matters.

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill:

1. Increases, beginning June 1, 2019, by one cent per returned container the handling costs to be reimbursed to the dealer or local redemption center for the cost of handling beverage containers;

2. Repeals the provision that authorizes the reduced handling fee for small brewers and water bottlers; and

3. Requires the Commissioner of Environmental Protection, beginning in September 2021, and every 2 years thereafter, to convene a panel to review the adequacy of the reimbursement amount for beverage container handling costs and make any necessary recommendations regarding the reimbursement.

HP0286 LD 377	Session - 129th Maine Legislature		LR 110 Item 1
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