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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY RAFFERTY, EICHELBERGER, FERLO, BROWNE, ORIE, WASHINGTON, BRUBAKER, ERICKSON, GREENLEAF, VANCE, WAUGH AND BOSCOLA, MARCH 6, 2009 |
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| REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 6, 2009 |
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| AN ACT |
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1 | Providing for the return of beverage containers and for the |
2 | powers and duties of the Department of Environmental |
3 | Protection; imposing a returnable beverage container |
4 | assessment on distributors; providing for duties of |
5 | returnable beverage distributors; establishing the Returnable |
6 | Beverage Container Fund; and providing for a returnable |
7 | deposit value on returnable beverage containers, for |
8 | redemption of empty returnable beverage containers, for |
9 | redemption centers, for payment of claims from the fund and |
10 | for annual report to General Assembly. |
11 | The General Assembly of the Commonwealth of Pennsylvania |
12 | hereby enacts as follows: |
13 | Section 1. Short title. |
14 | This act shall be known and may be cited as the Returnable |
15 | Beverage Container Act. |
16 | Section 2. Definitions. |
17 | The following words and phrases when used in this act shall |
18 | have the meanings given to them in this section unless the |
19 | context clearly indicates otherwise: |
20 | "Beverage." Any of the following: |
21 | (1) Soda water or similar carbonated soft drink. |
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1 | (2) Noncarbonated drink, including, but not limited to, |
2 | mineral water, flavored and unflavored water, spring water, |
3 | vitamin water and any other water beverage, tea, sports |
4 | drink, isotonic drink, beer and other malt beverages. |
5 | (3) Any other nonalcoholic carbonated and noncarbonated |
6 | drink in liquid form that is intended for human consumption. |
7 | The term does not include milk or any beverage that is primarily |
8 | derived from a dairy product, infant formula and medicine |
9 | approved by the Food and Drug Administration. |
10 | "Consumer." A person who buys a beverage in a returnable |
11 | beverage container for use or consumption and pays the deposit. |
12 | "Dealer." A person who engages in the sale of beverages in |
13 | returnable beverage containers to a consumer for off-premises |
14 | consumption in this Commonwealth. |
15 | "Department." The Department of Environmental Protection of |
16 | the Commonwealth. |
17 | "Fund." The Returnable Beverage Container Fund established |
18 | under section 5. |
19 | "On-premises consumption." The consumption of returnable |
20 | beverages by a patron immediately and within the area under |
21 | control of an establishment, including, but not limited to, a |
22 | bar, restaurant, passenger ship or airplane. |
23 | "Patron." A person who buys a beverage in a returnable |
24 | beverage container for use or consumption and does not pay the |
25 | deposit. |
26 | "Person." An individual, partnership, firm, association, |
27 | public or private corporation, Federal agency, the Commonwealth |
28 | or any of its political subdivisions, trust or any other legal |
29 | entity. |
30 | "Recycling facility." The contiguous land and structures and |
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1 | other appurtenances and improvements on the land used for the |
2 | collection, separation, recovery and sale or reuse of secondary |
3 | resources that would otherwise be disposed of as solid waste and |
4 | are an integral part of a manufacturing process aimed at |
5 | producing a marketable product made of postconsumer material. |
6 | "Redeemer." A person, other than a dealer or distributor, |
7 | who demands the refund value in exchange for an empty returnable |
8 | beverage container. |
9 | "Redemption center." An operation that accepts from |
10 | consumers and provides the refund value for empty returnable |
11 | beverage containers intended to be recycled and ensures that the |
12 | empty returnable beverage containers are properly recycled. |
13 | "Redemption rate." The percentage of returnable beverage |
14 | containers redeemed over a reporting period. The percentage is |
15 | calculated by dividing the number of returnable beverage |
16 | containers redeemed by the number of returnable beverage |
17 | containers sold and then multiplying that number by one hundred. |
18 | "Refillable beverage container." Any returnable beverage |
19 | container that ordinarily is returned to the manufacturer to be |
20 | refilled and resold. |
21 | "Returnable beverage container." Any sealable bottle, can, |
22 | jar or carton which is primarily composed of glass, metal, |
23 | plastic or any combination of those materials and is produced |
24 | for the purposes of containing a beverage which, at the time of |
25 | sale, contains 28 ounces or less of a beverage. The term does |
26 | not include any sealable bottle, can, jar or carton which is |
27 | composed of paper-based biodegradable material and aseptic |
28 | multimaterial packaging. |
29 | "Returnable beverage distributor" or "distributor." A person |
30 | who: |
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1 | (1) is a manufacturer of beverages in returnable |
2 | beverage containers in this Commonwealth; or |
3 | (2) imports and engages in the sale of filled returnable |
4 | beverage containers to a dealer or consumer in this |
5 | Commonwealth. |
6 | The term includes a Federal agency and military distributor but |
7 | does not include an airline or shipping company that merely |
8 | transports returnable beverage containers. |
9 | Section 3. Returnable beverage container assessment on |
10 | distributors. |
11 | (a) General rule.--Beginning January 1, 2010, a returnable |
12 | beverage distributor shall pay to the department, on a monthly |
13 | basis, a returnable beverage container assessment on each |
14 | returnable beverage container manufactured in or imported into |
15 | this Commonwealth. The returnable beverage container assessment |
16 | shall not apply to returnable beverage containers exported for |
17 | sale outside of this Commonwealth. |
18 | (b) Amount of assessment.--The returnable beverage container |
19 | assessment shall be 5¢ per returnable beverage container and may |
20 | be imposed only once on the same returnable beverage container. |
21 | (c) State preemption.--No municipality may impose or collect |
22 | any assessment or fee on returnable beverage containers for the |
23 | same or similar purpose that is the subject of this act. |
24 | Section 4. Returnable beverage distributors. |
25 | (a) Duty to register.-- |
26 | (1) On or before September 1, 2009, each returnable |
27 | beverage distributor shall register with the department, |
28 | using forms prescribed by the department, and shall notify |
29 | the department of any change in address or other information |
30 | previously submitted. |
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1 | (2) After September 1, 2009, any person who desires to |
2 | conduct business in this Commonwealth as a returnable |
3 | beverage distributor shall register with the department no |
4 | later than one month prior to the commencement of the |
5 | business. |
6 | (b) Maintenance of records.-- |
7 | (1) A returnable beverage distributor shall maintain |
8 | records reflecting the manufacture of beverages in returnable |
9 | beverage containers or the importation and the sale of filled |
10 | returnable beverage containers, as applicable. |
11 | (2) The records shall be made available, upon request, |
12 | for inspection by the department; provided that any |
13 | proprietary information obtained by the department shall be |
14 | kept confidential and shall not be disclosed to any other |
15 | person, except: |
16 | (i) as may be reasonably required in an |
17 | administrative or judicial proceeding to enforce any |
18 | provision of this act or any rule adopted pursuant to |
19 | this act; or |
20 | (ii) under an order issued by a court. |
21 | Section 5. Returnable Beverage Container Fund. |
22 | (a) Establishment.--The Returnable Beverage Container Fund |
23 | is established in the State Treasury. All revenues generated |
24 | from the returnable beverage container assessment shall be |
25 | deposited into the fund. |
26 | (b) Use of fund.-- |
27 | (1) The moneys in the fund shall be used to pay valid |
28 | returnable deposit claims submitted by returnable beverage |
29 | distributors and redemption centers under section 14. |
30 | (2) After the payment of claims under paragraph (1), 75% |
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1 | of the fund shall be transferred on a monthly basis to the |
2 | Hazardous Sites Cleanup Fund established under section 901 of |
3 | the act of October 18, 1988 (P.L.756, No.108), known as the |
4 | Hazardous Sites Cleanup Act. |
5 | Section 6. Inventory report. |
6 | (a) General rule.--Except as otherwise provided under |
7 | subsection (e), beginning February 1, 2010, and continuing each |
8 | month thereafter, a returnable beverage distributor shall file |
9 | an inventory report with the department. |
10 | (b) Content.--The inventory report required under subsection |
11 | (a) shall include documentation in sufficient detail to |
12 | identify: |
13 | (1) The number of beverages in returnable beverage |
14 | containers, by container size and type, manufactured in or |
15 | imported into this Commonwealth during the reporting period. |
16 | (2) The number of these returnable beverage containers, |
17 | by container size and type, exported and intended for |
18 | consumption outside this Commonwealth during the reporting |
19 | period. |
20 | All information contained in an inventory report, including |
21 | confidential commercial and financial information, shall be |
22 | deemed confidential and protected from public disclosure to the |
23 | extent allowed by law. |
24 | (c) Calculation of payment.--The payment due from a |
25 | returnable beverage distributor for the assessment imposed under |
26 | section 3 shall be equal to the net number of returnable |
27 | beverage containers imported or manufactured into this |
28 | Commonwealth, the total number of containers imported or |
29 | manufactured less the total number of containers exported for |
30 | consumption outside this Commonwealth, multiplied by 5¢. |
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1 | (d) Filing deadline.--The inventory report and payment shall |
2 | be filed with the department no later than the 15th day of the |
3 | month following the end of the payment period of the previous |
4 | month. |
5 | (e) Semiannual reporting.--A returnable beverage distributor |
6 | who annually imports or manufactures in this Commonwealth less |
7 | than 100,000 returnable beverage containers may submit reports |
8 | and payments required under this act on a semiannual basis; |
9 | provided that the semiannual report and payment period shall end |
10 | on June 30 and December 31 of each year. |
11 | Section 7. Returnable deposit value of returnable beverage |
12 | containers. |
13 | Beginning January 1, 2010, each returnable beverage container |
14 | sold in this Commonwealth shall have a returnable deposit value |
15 | of 5¢, and the returnable deposit value shall be clearly |
16 | indicated on it as provided under section 9. |
17 | Section 8. Sales of beverages in returnable beverage |
18 | containers. |
19 | (a) Pass-through from distributors.--Beginning January 1, |
20 | 2010, a returnable beverage distributor who pays the returnable |
21 | beverage container assessment to the department may add the |
22 | amount of the assessment to the cost of each returnable beverage |
23 | container paid by the dealer or consumer. The addition of the |
24 | amount of the assessment may appear as a separate line item on |
25 | the invoice prepared by the distributor. |
26 | (b) Pass-through from dealers.--Beginning January 1, 2010, a |
27 | dealer who purchased a returnable beverage container from a |
28 | distributor who added the amount of the returnable beverage |
29 | container assessment to the cost of the returnable beverage |
30 | container paid by the dealer and which dealer sells the |
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1 | returnable beverage container to a consumer may indicate the |
2 | cost of the assessment as a separate line item on the invoice |
3 | prepared by the dealer. |
4 | Section 9. Returnable beverage container requirements. |
5 | (a) General rule.--Except as provided in subsection (b), |
6 | each returnable beverage container sold in this Commonwealth |
7 | shall clearly indicate the returnable deposit value of the |
8 | container and the word "Pennsylvania" or the letters "PA." The |
9 | names or letters representing the names of other states with |
10 | comparable deposit laws may also be included in the indication |
11 | of the returnable deposit value. The returnable deposit value on |
12 | every returnable beverage container shall be clearly, |
13 | prominently and indelibly marked by painting, printing, scratch |
14 | embossing, raised letter embossing or securely affixed stickers |
15 | and shall appear on the top or side of the container in letters |
16 | at least one-eighth inch in size. |
17 | (b) Nonapplicability.--Subsection (a) shall not apply to any |
18 | type of refillable glass returnable beverage container that has |
19 | a brand name permanently marked on it and the equivalent of a |
20 | refund value of at least 5¢ which is paid upon receipt of the |
21 | container by a dealer or returnable beverage distributor. |
22 | Section 10. Redemption of empty returnable beverage containers. |
23 | (a) General rule.--Except as provided in subsection (b), a |
24 | dealer shall: |
25 | (1) Operate a redemption center by July 1, 2010, and |
26 | shall accept all types of empty returnable beverage |
27 | containers that bear a valid returnable deposit value for |
28 | this Commonwealth under this act. |
29 | (2) Pay to any person who presents an empty returnable |
30 | beverage container, except as otherwise provided under |
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1 | section 13, the amount of the returnable deposit value for |
2 | the returnable beverage container, if it bears a valid |
3 | returnable deposit value for this Commonwealth under this |
4 | act. |
5 | (3) Ensure each returnable beverage container collected |
6 | is recycled and forward documentation necessary to support |
7 | claims for payment from the fund as stated in section 14 or |
8 | the regulations adopted under this act. |
9 | (b) Nonapplicability.--Subsection (a) shall not apply to any |
10 | dealer: |
11 | (1) who is located in a high density population area as |
12 | defined by regulation of the department and within two miles |
13 | of a certified redemption center that is operated |
14 | independently of a dealer; |
15 | (2) who is located in a rural area as defined by |
16 | regulation of the department; |
17 | (3) who subcontracts with a certified redemption center |
18 | to be operated on the dealer's premises; |
19 | (4) whose sales of returnable beverage containers are |
20 | only via vending machines; |
21 | (5) whose place of business is less than 5,000 square |
22 | feet of interior space; |
23 | (6) who can demonstrate physical or financial hardship, |
24 | or both, based on specific criteria established by regulation |
25 | of the department; or |
26 | (7) who meets other criteria established by the |
27 | department. |
28 | Notwithstanding the provisions of paragraphs (1) and (2), the |
29 | department may allow the placement of redemption centers at |
30 | greater than prescribed distances to accommodate geographical |
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1 | features while ensuing adequate consumer convenience. |
2 | (c) Signs of closest redemption center.--Regardless of the |
3 | square footage of a dealer's place of business, a dealer that is |
4 | not a redemption center or has not subcontracted with a |
5 | redemption center shall post a clear and conspicuous sign at the |
6 | primary public entrance of the dealer's place of business that |
7 | specifies the name, address and hours of operation of the |
8 | closest redemption center location. |
9 | (d) On-premise consumption.--A person engaged in the |
10 | business of selling beverages in returnable beverage containers |
11 | for on-premises consumption shall collect the used returnable |
12 | beverage containers from its patrons and either use a certified |
13 | redemption center for the collection of containers or become a |
14 | certified redemption center. |
15 | Section 11. Redemption centers. |
16 | (a) Certification required.--Prior to operation, a |
17 | redemption center must be certified by the department. |
18 | (b) Applications.--An application for certification as a |
19 | redemption center shall be filed with the department on forms |
20 | prescribed by the department. |
21 | (c) Discretionary review of certification.--The department, |
22 | at any time, may review the certification of a redemption |
23 | center. After written notice to the person responsible for the |
24 | establishment and operation of the redemption center and to the |
25 | dealers served by the redemption center, the department, after |
26 | it has afforded the person a hearing in accordance with |
27 | applicable law, may withdraw the certification of the center if |
28 | it finds that there has not been compliance with applicable |
29 | laws, rules, permit conditions or certification requirements. |
30 | (d) Duties of redemption centers.--A redemption center |
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1 | shall: |
2 | (1) Accept all types of empty returnable beverage |
3 | containers from consumers or other persons, unless excepted |
4 | under section 13. |
5 | (2) Pay to any consumer or other person who presents an |
6 | empty returnable beverage container, except as otherwise |
7 | provided under section 13, the amount of the returnable |
8 | deposit value for the returnable beverage container, if it |
9 | bears a valid returnable deposit value for this Commonwealth |
10 | under this act. |
11 | (3) Ensure each returnable beverage container collected |
12 | is recycled and forward documentation necessary to support |
13 | claims for payment from the fund as stated in section 14 or |
14 | the regulations adopted under this act. |
15 | (e) Compliance with laws.--The redemption area of a |
16 | redemption center shall be maintained in full compliance with |
17 | applicable laws and with the orders and rules of the department, |
18 | including permitting requirements, if deemed necessary by the |
19 | department. |
20 | Section 12. Development of procedures. |
21 | The department shall develop procedures to facilitate the |
22 | exchange of information between returnable beverage container |
23 | manufacturers, distributors and retailers and certified |
24 | redemption centers. The procedures developed by the department |
25 | shall allow for a reasonable time period between the |
26 | introduction of a new returnable beverage product and the |
27 | deadline for submitting universal product code information to |
28 | certified redemption centers operating reverse vending machines. |
29 | Section 13. Refusal of refund value payment for a returnable |
30 | beverage container. |
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1 | A retailer or redemption center may refuse to pay the |
2 | returnable deposit value on any broken, corroded or dismembered |
3 | returnable beverage container or any returnable beverage |
4 | container that: |
5 | (1) contains a free-flowing liquid; |
6 | (2) does not properly indicate a refund value; or |
7 | (3) contains a significant amount of foreign material. |
8 | Section 14. Claims for reimbursement from the fund. |
9 | (a) General rule.--A dealer or redemption center that |
10 | accepts a returnable beverage container from a consumer or other |
11 | person and pays the returnable deposit value to the consumer or |
12 | other person may submit to the department a claim for |
13 | reimbursement from the fund. |
14 | (b) Amount of claim.--The department shall pay to each |
15 | dealer or redemption center that submits a claim under |
16 | subsection (a) 2¢ for each returnable beverage container that is |
17 | not returned. |
18 | (c) Alternative payment approach.--The department may choose |
19 | to pay the reimbursement amount on the basis of the total weight |
20 | of the containers received by material type and the average |
21 | weight of each container type, rather than on a per returnable |
22 | beverage container basis. |
23 | (d) Limitation.--Reimbursement from the fund may only occur |
24 | once for each returnable beverage container. |
25 | Section 15. Redemption center reporting. |
26 | In order for its claim to be approved by the department, a |
27 | dealer or redemption center shall submit to the department the |
28 | following information on forms prescribed by the department. |
29 | (1) The number or weight of returnable beverage |
30 | containers of each material type accepted at the redemption |
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1 | center for the reporting period. |
2 | (2) The amount of refunds paid out by material type. |
3 | (3) The number or weight of returnable beverages |
4 | containers of each material type transported out of this |
5 | Commonwealth or to a permitted recycling facility. |
6 | (4) Copies of out-of-Commonwealth transport and weight |
7 | receipts or acceptance receipts from permitted recycling |
8 | facilities. If the redemption center and the recycling |
9 | facility are the same entity, copies of out-of-Commonwealth |
10 | transport and weight receipts, or documentation of end use |
11 | accepted by the department, shall also be included. |
12 | (5) Any other information deemed necessary by the |
13 | department. |
14 | Section 16. Departmental inspections. |
15 | The records of a returnable beverage distributor, dealer, |
16 | redemption center and recycling facility shall be made |
17 | available, upon request, for inspection by the department or a |
18 | duly authorized agent of the department. Any proprietary |
19 | information obtained during the inspection shall be kept |
20 | confidential and shall not be disclosed to any other person, |
21 | except: |
22 | (1) as may be reasonably required in an administrative |
23 | or judicial proceeding to enforce any provision of this act |
24 | or any regulation adopted pursuant to this act; or |
25 | (2) under an order issued by a court. |
26 | Section 17. Annual report to General Assembly. |
27 | The department shall file a report with the General Assembly |
28 | on an annual basis. The report shall include: |
29 | (1) Information on the administration of this act. |
30 | (2) Detailed financial information on the payment of |
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1 | claims from the Returnable Beverage Container Fund and the |
2 | monthly transfers to the Hazardous Sites Cleanup Fund. |
3 | (3) Recommendations from the department as to whether |
4 | the actual claim experience of the Returnable Beverage |
5 | Container Fund necessitates adjustment of the percentage of |
6 | monthly transfers set forth in section 5(b)(2) in order for |
7 | the Returnable Beverage Container Fund to be fiscally sound |
8 | for the continued payment of claims pursuant to this act. |
9 | Section 18. Regulations. |
10 | The department may promulgate rules and regulations to |
11 | administer and enforce this act. |
12 | Section 19. Effective date. |
13 | This act shall take effect immediately. |
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