An Act To Improve the State's Returnable Bottle Law and Adjust Handling Fees LR 1324(02)
Maine Legislature, Session 121, LD 0985
Committee Amendment CA_A_S217 (Senate)
Amends: 32 MRSA §1862, 32 MRSA §1866

COMMITTEE AMENDMENT "A" to S • P • 326, L.D. 
Act To 
Improve the State's Returnable Bottle 
Handling Fees" 
985, Bill, "An 
Law and Adjust 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. 32 MRSA §1862, sub-§12-E is enacted to read: 
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. ' 
Further amend the bill by inserting after section 3 the 
following: 
'Sec. 4. 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 reguirements 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.' 
Page l-LR1324(2} 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 326, L.D. 985 
Further amend the bill in section 4 by striking out all of 
subsection 4 and inserting in its place the following: 
, 4. 
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 1863-11., subsections 
1, 2 and 4 shall reimburse the dealer or local redemption 
center for the cost of handling beverage containers subject 
to section 1863-11., in an amount that equals at least 3¢ per 
returned container for containers picked up by the initiator 
before January 1, 2004 and at least 3 1/2¢ for containers 
picked up on or after January I. 2004. 
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 1863-11., subsection 3 
shall reimburse the dealer or local redemption center for 
the cost of handling beverage containers subject to section 
1863-11. in an amount that equals at least 3¢ per returned 
container for containers picked up by the initiator before 
January 1. 2004 and at least 3 1/2¢ for containers picked up 
on or after January L 
2004. 
The initiator of the deposit 
may reimburse the dealer or local redemption center directly 
or indirectly through a contracted agent or though 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 1I2¢ for any returned 
container 
that 
is 
subject 
to 
a 
gualified 
commingling 
agreement that allows the dealer or redemption center to 
commingle beverage containers of like material and size. 
A 
commingling agreement is gualified for purposes of this 
paragraph if the department determines that 50°-t. or more of 
the beverage containers of like material and size for which 
the deposits are being initiated in the State are covered by 
the 
commingling 
agreement. 
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 
gualified 
commingling agreement under this subparagraph with every 
other initiator of deposits for beverage containers that are 
of like size and material as the beverage containers for 
which the State is the initiator of deposit.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 326, L.D. 985 
Further amend the bill in section 6 in that part designated 
"§1866-D." by striking out all of subsection 1 and inserting in 
its place the following: 
'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 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.' 
Further amend the bill in section 6 in that part designated 
"§1866-D." by striking out all of subsection 3. 
Further amend the bill in section 6 in that part designated 
"§1866-D." by renumbering the subsections to read consecutively. 
Further amend the bill in section 6 by striking out all of 
that part designated "§1866-E." and inserting in its place the 
following: 
'§1866-E. 
Unclaimed deposits 
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 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A " to S.P. 326, L.D. 985 
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: 
A. 
Income earned on amounts in the fund during that month; 
and 
B. 
The total 
amount of 
refund values 
received by the 
initiator for nonrefillable beverage containers during that 
month and the 2 preceding months. 
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 
Reyenue Services within the Department of 
Administratiye 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 exempt. A bottler who produces no more 
than 50,000 gallons of its product in a calendar year is exempt 
from the requirements of this section for that year. ' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 326, L.D. 985 
Further amend the bill by inserting after section 6 the 
following: 
'Sec. 
7. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
AGRICUL"l'URE, FOOD AND RURAL RESOURCES, DEPARTMENT OF 
Beverage Container Enforcement Fund 0971 
Initiative: 
Appropriates 
funds 
Compliance Officer position and 
verify commingling agreements. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
to establish one 
operating costs 
2003-04 
(1.000) 
$39,257 
11,225 
$50,482 
Agricultural 
necessary to 
2004-05 
(1.000) 
$51,181 
15,000 
$66,181' 
Further amend the bill by 
nonconsecutive 
Part 
letter 
consecutively. 
relettering or renumbering any 
or 
section 
number 
to 
read 
SUMMARY 
This 
amendment, 
which 
is 
the 
majority 
report 
of 
the 
committee, does the following. 
1. 
It requires dealers and distributors to accept beverage 
containers processed through reverse vending machines. 
2. 
It raises the handling fee to 3 
deposit who, 
after January 1, 
2004, 
qualified commingling agreement. 
1/2¢ for an initiator of 
fails to enter into 
a 
3. 
It requires 
an initiator of deposit, 
other than 
a 
bottler who produces no more than 50, 000 gallons in a calendar 
year, to establish and maintain a deposit transaction fund and to 
report and pay to the Department of Administrative and Financial 
Services, 
Maine 
Revenue 
Services 
the 
amount 
in 
the 
fund 
attributable to unclaimed deposits on a monthly basis. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to S.P. 326, L.D. 985 
4. 
It directs that abandoned deposit amounts be deposited 
into the General Fund. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Fiscal Detail and Notes 
Approved: 05/16/03 ~ae 
Office of Fiscal and Program Review 
LD985 
An Act To Improve the State's Returnable Bottle Law and Adjust 
Handling Fees 
LR 1324(02) 
Fiscal Note for Bill as Amended by Committee Amendment frS-fJ./7 
Committee: Business, Research and Economic Development 
Fiscal Note Required: Yes 
Majority Report 
Fiscal Note 
2003-04 
2004-05 
Projections 
2005-06 
Projections 
2006-07 
($1,262,018) 
($1,683,819) 
($1,681,172) 
($1,678,419) 
$50,482 
$66,181 
$68,828 
$71,581 
$1,312,500 
$1,750,000 
$1,750,000 
$1,750,000 
As amended, this bill requires that unclaimed deposits paid on returnable containers be deposited into the General 
Fund; the estimated amounts are $1,312,500 in fiscal year 2003-04 and $1,750,000 for each fiscal year thereafter. It 
also includes General Fund appropriations for the Department of Agriculture, Food and Rural Resources to reflect 
changes in the Returnable Bottle Law; the amounts are $50,482 and $66,181 in fiscal years 2003-04 and 2004-05, 
respectively. Adjusting reimbursement fees for returnable containers may have the effect of increasing Other Special 
Revenue Funds revenue; the amounts will depend on the number of commingling agreements that are entered into and 
can not be determined at this time. 
LR1324(2) - Fiscal Note - Page 1 of 1