Bill Text: MI SB1112 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Trade: containers; bottle deposit law; expand. Amends title & secs. 1, 2, 3c, & 3e of 1976 IL 1 (MCL 445.571 et seq.); adds secs. 2b, 3g & 5a & repeals sec. 2a of 1976 IL 1 (MCL 445.572a).
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced) 2024-12-11 - Referred To Committee Of The Whole With Substitute (s-2) [SB1112 Detail]
Download: Michigan-2023-SB1112-Introduced.html
SENATE BILL NO. 1112
A bill to amend 1976 IL 1, entitled
"A petition to initiate legislation to provide for the use of returnable containers for soft drinks, soda water, carbonated natural or mineral water, other nonalcoholic carbonated drink, and for beer, ale, or other malt drink of whatever alcoholic content, and for certain other beverage containers; to provide for the use of unredeemed bottle deposits; to prescribe the powers and duties of certain state agencies and officials; and to prescribe penalties and provide remedies,"
by amending the title and sections 1, 2, 3c, and 3e (MCL 445.571, 445.572, 445.573c, and 445.573e), section 1 as amended by 1989 PA 93, section 2 as amended by 1998 PA 473, section 3c as amended by 2022 PA 198, and section 3e as added by 1996 PA 384, and by adding sections 2b, 3g, and 5a; to repeal acts and parts of acts; and to provide for a referendum.
the people of the state of michigan enact:
A petition to initiate legislation An initiated law to provide for the use collection of deposits on and return of returnable containers for soft drinks, soda water, carbonated natural or mineral water, other nonalcoholic carbonated drink, and for beer, ale, or other malt drink of whatever alcoholic content, and for certain other beverage containers; to provide for the use return and distribution of unredeemed bottle deposits; to prescribe the powers and duties of certain state agencies and officials; officers and entities; to create funds; to provide for the promulgation of rules; and to prescribe penalties and provide remedies.
(a) "Beverage" means a soft drink, soda water, carbonated natural or mineral water, or other a nonalcoholic carbonated drink; or noncarbonated drink in liquid form and intended for internal human consumption; beer, ale, or other malt drink of whatever alcoholic content; or liquor, wine, or a mixed wine drink or a mixed spirit drink.
(b) "Beverage container" means an airtight metal, glass, paper, or plastic container, or a container composed of a combination of these materials , which, at the time of sale, that contains 1 gallon or less of a beverage at the time of sale. A beverage container does not include any of the following:
(i) A container that contains milk or infant formula at the time of sale.
(ii) A container that contains 1/2 gallon or more of fruit or vegetable juice at the time of sale.
(iii) A freezable container as described in section 1a.
(c) "Empty returnable container" means a beverage container which that contains nothing except the residue of its the original contents of the beverage container.
(d) "Returnable container" means a beverage container upon for which a deposit of at least not less than 10 cents has been paid, or is required to be paid upon on the removal of the beverage container from the sale or consumption area, and for which a refund of at least not less than 10 cents in cash is payable by every dealer or distributor in this state of that beverage in beverage containers , as further provided in under section 2.
(e) "Nonreturnable container" means a beverage container upon for which no deposit or a deposit of less than 10 cents has been paid, or is required to be paid upon on the removal of the beverage container from the sale or consumption area, or for which no cash refund or a refund of less than 10 cents is payable by a dealer or distributor in this state of that beverage in beverage containers , as further provided in under section 2.
(g) "Dealer" means a person who that sells or offers for sale to consumers within this state a beverage in a beverage container, including an operator of a vending machine containing a beverage in a beverage container.
(h) "Operator of a vending machine" means equally its the owner of the vending machine, the person who that refills it, the vending machine, and the owner or lessee of the property upon which it where the vending machine is located.
(i) "Distributor" means a person who that sells beverages in beverage containers to a dealer within this state, and includes a manufacturer who engages in such those sales.
(j) "Manufacturer" means a person who that bottles, cans, or otherwise places beverages in beverage containers for sale to distributors, dealers, or consumers.
(k) "Within this state" means within the exterior limits of the this state, of Michigan, and includes the territory within these limits owned by or ceded to the United States of America.
(l) "Commission" means the Michigan liquor control commission created in section 209 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1209.
(m) "Sale or consumption area" means the premises within on the property of the dealer or of the dealer's lessor where the sale is made, within which where beverages in returnable containers may be consumed without payment of a deposit, and , upon removing a beverage container from which, the customer is required by where a consumer may not remove a beverage container without the dealer requiring the consumer to pay the a deposit.
(n) "Nonrefillable container" means a returnable container which that is not intended to be refilled for sale by a manufacturer.
(o) "Mixed wine drink" means a drink or similar product marketed as a wine cooler and containing that contains less than 7% alcohol by volume, consisting consists of wine and plain, sparkling, or carbonated water, and containing any contains 1 or more of the following:
(i) Nonalcoholic beverages.
(ii) Flavoring.
(iii) Coloring materials.
(iv) Fruit juices.
(v) Fruit adjuncts.
(vi) Sugar.
(vii) Carbon dioxide.
(viii) Preservatives.
(p) "Mixed spirit drink" means a drink containing 10% or less alcohol by volume consisting of distilled spirits mixed with nonalcoholic beverages or flavoring or coloring materials and which may also contain water, fruit juices, fruit adjuncts, sugar, carbon dioxide, or preservatives; or any spirits based beverage, regardless of the percent of alcohol by volume, that is manufactured for sale in a metal container.
(q) "Institution of higher learning" means that term as defined in 38 USC 3452(f).
(r) "Nonprofit organization" means an organization exempt from taxation under section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3).
(s) "Brand" means any word, name, group of letters, symbol, or trademark, or any combination of them, adopted and used by a manufacturer to identify a specific flavor or type of beverage and to distinguish that flavor or type of beverage from another beverage produced or marketed by that manufacturer or another manufacturer.
Sec. 2. (1) A dealer within this state shall not sell, offer for sale, or give to a consumer a nonreturnable container or a beverage in a nonreturnable container.
(2) A dealer who that regularly sells beverages for consumption off the dealer's premises shall provide on the premises, or within 100 yards of the premises on which the dealer sells or offers for sale a beverage in a returnable container, a convenient means whereby the for containers of any kind, size, and brand sold or offered for sale by the dealer may to be returned by, and the deposit refunded in cash to, a person whether or not the person is the original customer of that dealer, and whether or not the container was sold by that dealer.
(3) Regional centers for the redemption of returnable containers may be established, in addition to but not as substitutes for, the means established for refunds of deposits prescribed in under subsection (2).
(4) Except as provided in subsections (5) and (7), a dealer shall accept from a person an empty returnable container of any kind, size, and brand sold or offered for sale by that dealer in this state, whether or not the beverage container was sold by that dealer, and pay to that person its the full refund value of the container in cash.
(5) A dealer who that does not require a deposit on a returnable container when the contents are consumed in the dealer's sale or consumption area is not required to pay a refund for accepting that empty container.
(6) Except as provided in subsection (7), a distributor shall accept from a dealer an empty returnable container of any kind, size, and brand sold or offered for sale by that distributor and pay to the dealer its full refund value in cash.
(7) Each beverage container sold or offered for sale by a dealer within this state shall must clearly indicate by embossing or by a stamp, a label, or other method securely affixed to the beverage container, the refund value of the container and the name of this state. A dealer or distributor may, but is not required to, refuse to accept from a person an empty returnable container which that does not state on the container the refund value of the container and the name of this state. This subsection does not apply to a refillable container having that has a refund value of not less than 10 cents, having has a brand name permanently marked on it, and having has a securely affixed method of indicating that it is a returnable container.
(8) A dealer within this state shall not sell, offer for sale, or give to consumers a metal beverage container, any part of which becomes detached when opened.
(9) A person, dealer, distributor, or manufacturer shall not return an empty container to a dealer for a refund of the deposit if a dealer has already refunded the deposit on that returnable container. This subsection does not prohibit a dealer from refunding the deposit on an empty returnable container each time the returnable container is sanitized by the manufacturer and reused as a beverage container.
(10) A dealer may accept, but is not required to accept, from a person, empty returnable containers for a refund in excess of $25.00 on any given day.
(11) A manufacturer licensed by the commission shall not require a distributor licensed by the commission to pay a deposit to the manufacturer on a nonrefillable container. However, a manufacturer licensed by the commission and a distributor licensed by the commission may enter into an agreement providing that either or both may originate a deposit or any portion of a deposit on a nonrefillable container if the agreement is entered into freely and without coercion.
(12) A manufacturer shall refund the deposit paid on any container returned by a distributor for which a deposit has been was paid by a distributor to the manufacturer.
(13) Subsections (4), (6), and (7) apply only to a returnable container that was originally sold in this state as a filled returnable container.
(14) As used in this section, "metal beverage container" means a beverage container composed primarily of metal.
Sec. 2b. (1) The beverage container handling fund is created within the state treasury. The state treasurer shall deposit money and other assets received from any source in the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
(2) Money in the beverage container handling fund at the close of the fiscal year remains in the beverage container handling fund and does not lapse to the general fund.
(3) The department of treasury is the administrator of the beverage container handling fund for auditing purposes.
(4) The department of treasury shall expend money from the beverage container handling fund, on appropriation, in the following manner:
(a) 1.5% to the department of environment, Great Lakes, and energy for staffing and programs related to this act.
(b) 6% to the department of environment, Great Lakes, and energy for marketing participation and compliance with this act.
(c) 1.5% to the department of licensing and regulatory affairs for staffing and programs related to this act.
(d) 6% to the bottle bill enforcement fund created under section 3c(2).
(e) 85% to the resource recovery fund created under section 3g for system improvement grants.
Sec. 3c. (1) The bottle deposit fund is created in the department of treasury. The fund is a revolving fund administered by the department of treasury. All of the following apply to the bottle deposit fund:
(a) The fund consists of money paid to the department of treasury by underredeemers under section 3b. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments.
(b) The department of treasury is the administrator of the fund for auditing purposes.
(c) The money deposited in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
(2) The bottle bill enforcement fund is created in the department of treasury. The fund is a revolving fund administered by the department of treasury. All of the following apply to the bottle bill enforcement fund:
(a) The fund consists of money disbursed to the fund under subsection (3)(a).section 2b. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments.
(b) The department of treasury is the administrator of the fund for auditing purposes.
(c) The money deposited in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.lapses to the resource recovery fund created in section 3g.
(d) The department of treasury shall disburse money from the beverage container handling fund, on appropriation, to the department of state police and the department of the attorney general to use in enforcing this act and investigating violations of this act in the following manner:
(i) 50% to the department of state police.
(ii) 50% to the department of the attorney general.
(3) The department of treasury shall deposit the amount paid to the department of treasury by underredeemers under section 3b, less any amount refunded by the department of treasury to overredeemers under section 3b, into the bottle deposit fund created in subsection (1) for annual disbursement by the department of treasury in the following manner:
(a) The first $1,000,000.00 to the bottle bill enforcement fund created in subsection (2). The department of treasury shall disburse the money deposited into the bottle bill enforcement fund to the department of state police for use in enforcing this act and investigating violations of this act. If the bottle bill enforcement fund balance at the end of the fiscal year is greater than $3,000,000.00, deposits in the fund required under this subdivision are suspended until the fund balance falls below $2,000,000.00.
(b) After the disbursement of the first $1,000,000.00 to the bottle bill enforcement fund as described in subdivision (a), the remaining amount must be disbursed as follows:
(a) (i) Seventy-five percent 50% to the cleanup and redevelopment trust fund created in section 3e.
(b) (ii) Twenty-five percent to dealers to be apportioned to each dealer on the basis of the number of empty returnable containers handled by a dealer as determined by the department of treasury.5% to the manufacturers on the basis of the number of empty returnable containers redeemed.
(c) 20% to the distributors on the basis of the number of empty returnable containers redeemed.
(d) 25% to the dealers and redemption centers on the basis of the number of empty returnable containers redeemed.
(4) Three years after the effective date of the amendatory act that added this subsection, the department of state police and the department of the attorney general shall report to the legislature on the efficacy of the state police in enforcing enforcement of this act. The report must contain at least the minimum number of beverage and deposit containers seized and the deposit value in this state of those containers.
(5) Not later than June 1 of each year, the department of treasury shall publish and make available to the public information related to subsection (3)(a) and section 3b(1) and send a report of that information to the legislature.
(6) If the department of treasury determines that rules are needed to properly implement and administer sections 3a to 3d, the department may promulgate rules to implement and administer those sections under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(7) The department of state police and the department of the attorney general shall enforce this act.
(8) As used in this section:
(a) "Redemption center" means a place where a consumer can return an empty beverage container to receive a refund, that is operated by an individual, a nonprofit business, or a for-profit business, and that is in addition to reverse vending machines operated by a dealer.
(b) "Reverse vending machine" means a device designed to properly identify and process empty beverage containers and provide a means for a deposit refund on returnable containers.
Sec. 3e. (1) The cleanup and redevelopment trust fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from any source for deposit into the trust fund. The state treasurer shall direct the investment of the trust fund. The state treasur er treasurer shall credit to the trust fund interest and earnings from fund investments.
(3) Money in the trust fund at the close of the fiscal year shall remain remains in the trust fund and shall does not lapse to the general fund.
(4) The department of treasury shall expend, on appropriation, 25% or $10,000,000.00 of the annual deposits to the trust fund, whichever is less, for the purposes specified in section 20113(4) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20113.
(5) (4) The state treasurer shall annually disburse the following amounts from the trust fund:revenues received by the trust fund from disbursements under section 3c in the following manner:
(a) For each of the state fiscal years 1996-1997, 1997-1998, and 1998-1999, up to $15,000,000.00 each year of money in the trust fund to the cleanup and redevelopment fund created in section 20108 of part 201 (environmental remediation) of the natural resources and environmental protection act, Act No. 451 of the Public Acts of 1994, being section 324.20108 of the Michigan Compiled Laws.
(a) (b) In addition to the disbursements under subdivision (a), each state fiscal year, 80% of the revenues received by the trust fund from disbursements under section 3c to the cleanup and redevelopment fund created under section 20108 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20108. and
(b) 10% to the community pollution prevention fund created in section 3f.
(6) (5) All money in the trust fund that is not disbursed pursuant to under subsection (4) (5) shall remain remains in the trust fund until the trust fund reaches an accumulated principal of $200,000,000.00. $500,000,000.00. After the trust fund reaches an accumulated principal of $200,000,000.00, $500,000,000.00, interest and earnings of the trust fund only shall be are expended, upon on appropriation, for the purposes specified in section 20113(4) of part 201 (environmental remediation) of the natural resources and environmental protection act, Act No. 451 of the Public Acts of 1994, being section 324.20113 of the Michigan Compiled Laws.1994 PA 451, MCL 324.20113.
(7) (6) As used in this section, "trust fund" means the cleanup and redevelopment trust fund created in subsection (1).
Sec. 3g. (1) The resource recovery fund is created in the state treasury.
(2) The state treasurer shall deposit money and other assets received from section 2b or from any other source in the fund. The state treasurer shall direct the investment of the fund and credit interest and earnings from the investments to the fund.
(3) The department of environment, Great Lakes, and energy is the administrator of the fund for auditing purposes.
(4) The department of environment, Great Lakes, and energy shall expend money from the fund, on appropriation, only for 1 or more of the following purposes:
(a) Consumer education related to this act, including, but not limited to, changes made to or rules promulgated under this act by the amendatory act that added this section.
(b) Grants to nonprofit organizations and institutions of higher learning conducting research or developing policy or practices related to increasing the scope, efficiency, and effectiveness of this act.
(c) System improvement grants used for either of the following purposes:
(i) The purchase of new equipment and technology to expand the capacity to process materials by any of the following:
(A) A public or private materials recovery facility.
(B) A beverage manufacturer.
(C) A beverage distributor.
(D) A beverage dealer.
(ii) Operations and equipment costs for pilot programs that do not exceed 5 years.
Sec. 5a. (1) By March 1 of every year, any department with data regarding the performance of this act, including, but not limited to, the data listed under subsection (2), shall share that data with the department of environment, Great Lakes, and energy.
(2) By April 1 of every year, the department of environment, Great Lakes, and energy shall make publicly available on the department's website data on the performance of this act that the department has or has received under subsection (1), including, but not limited to, all of the following:
(a) Performance of the deposit return system compared to the annual target return rate.
(b) The number of beverage containers composed of each type of material for which a deposit was initiated, by county.
(c) The number of beverage containers composed of each type of material for which a deposit was redeemed, by county.
(d) The value of, contributions from, and expenditures from the following funds:
(i) The beverage container handling fund, created under section 2b.
(ii) The bottle bill enforcement fund, created under section 3c.
(iii) The bottle deposit fund, created under section 3c.
(iv) The cleanup and redevelopment trust fund, created under section 3e.
(v) The community pollution prevention fund, created under section 3f.
(vi) The resource recovery fund, created under section 3g.
(3) As used in this section:
(a) "Annual target return rate" means a return rate of 85% in a given year.
(b) "Return rate" means the total number of returnable beverage containers redeemed divided by the total number of returnable beverage containers sold for which a deposit was originated.
Enacting section 1. Section 2a of 1976 IL 1, MCL 445.572a, is repealed.
Enacting section 2. This amendatory act does not take effect unless approved by a majority of the electors of this state voting on the question at the general election to be held November 3, 2026. This amendatory act shall be submitted to the qualified electors of this state at that election as provided by the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992. If approved by the electors, this amendatory act takes effect 6 months after the date of the official declaration of the vote.
