An Act To Improve the State's Returnable Bottle Law and Adjust Handling Fees
Maine Legislature, Session 121, LD 0985
Committee: Business, Research and Economic Development
Sponsors: MARTIN, BROMLEY, DUNLAP, SULLIVAN
Amends: 32 MRSA §1866

Legislative Document 
No. 985 
S.P.326 
In Senate, February 25, 2003 
An Act To Improve the State's Returnable Bottle Law and Adjust 
Handling Fees 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator MARTIN of Aroostook. 
Cosponsored by Senator BROMLEY of Cumberland and 
Representatives: DUNLAP of Old Town, SULLIVAN of Biddeford. 
Printt:'u on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 32 MRSA §I862, sub-§2-A is enacted to read: 
2-A. 
Couningling 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 ln 
section 1866-D. 
Sec. 2. 32 MRSA §I862, 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 
other person who initiates a 
under section 1863-A. 
a 
manufacturer, 
distributor or 
deposit on a beverage container 
Sec. 3. 32 MRSA §I865, 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 
sRa!! 
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 Il-A 2-A and subject to review by the joint standing 
committee of the LegiSlature having jurisdiction over business 
and economic development matters. 
Sec. 4. 32 MRSA §1866, sub-§4, as amended by PL 1991, c. 819, 
§7, is further amended to read: 
4. 
Reimbursement 
of 
handling 
costs. 
handling costs is governed by this subsection. 
Page l-LRI324(1) 
Reimbursement 
of 
I 
( 
A. 
In addition to the payment of the refund value, the 
initiator of the deposit under section 1863-A, subsections 
1, 2 and 4 shall reimburse the dealer or local redemption 
center for the cost of handling beverage containers subject 
to section 1863-A, in an amount that equals at least ;l¢ .5.l 
per returned container. 
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-A, subsection 3 
shall reimburse the dealer or local redemption center for 
the cost of handling beverage containers subject to section 
1863-A in an amount that equals at least ;l¢ .5.l per returned 
container. 
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 either: 
(I) 
By 1¢ 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 material, size and product group. 
A 
commingling agreement is qualified for purposes of this 
subparagraph if the department determines that at least 
50°'0 of the beverage containers of like material, size 
and 
product 
group 
for 
which 
deposits 
are 
being 
initiated in the State are covered by the commingling 
agreement. 
As the initiator of deposit for all spirits 
sold in the State, the State is entitled to the I¢ 
reduction 
in 
handling 
fee 
described 
in 
this 
subparagraph without regard to whether it is a party to 
a qualified commingling agreement: or 
(2) 
By 
I 
I/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 material 
and 
size. 
A 
commingling agreement is qualified for purposes of this 
subparagraph if the department determines that at least 
50% 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 qualified 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. 
Sec. 5. 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. 
A. 
A distributor that initiates the deposit under section 
1863-A, subsection 2 or 4 has the obligation to pick up any 
empty, unbroken and reasonably clean beverage containers of 
the particular kind, size and brand sold by the distributor 
from 
dealers 
to 
whom 
that 
distributor 
has 
sold 
those 
beverages and from licensed redemption centers designated to 
serve 
those dealers pursuant to 
an order entered under 
section 1867. 
A distributor that, within this State, sells 
beverages 
under 
a 
particular 
label 
exclusively 
to 
one 
dealer, which dealer offers those labeled beverages for sale 
at retail exclusively at the dealer I s establishment, shall 
pick up any empty, unbroken and reasonably clean beverage 
containers 
of 
the 
kind, 
size 
and 
brand 
sold 
by 
the 
distributor 
to 
the 
dealer 
only 
from 
those 
licensed 
redemption centers that serve the various establishments of 
the dealer, under an order entered under section 1867. 
A 
dealer that manufactures its own beverages for exclusive 
sale by that dealer at retail has 
the obligation of 
a 
distributor 
under 
this 
section. 
The 
commissioner 
may 
establish 
by 
rule, 
in 
accordance 
with 
the 
Maine 
Administrative 
Procedure 
Act, 
criteria 
prescribing 
the 
manner in which distributors shall fulfill the obligations 
imposed 
by 
this 
paragraph. 
The 
rules 
may 
establish 
a 
minimum 
number 
or 
value 
of 
containers 
below 
which 
a 
distributor is not required to respond to a request to pick 
up 
empty 
containers. 
Any 
rules 
promulgated 
under 
this 
paragraph must allocate the burdens associated with the 
handling, storage and transportation of empty containers to 
prevent unreasonable financial or other hardship. 
B. 
The 
initiator of the deposit under 
section 1863-A, 
subsection 
has 
the obligation to pick 
up 
any 
empty, 
unbroken and reasonably clean beverage containers of the 
particular kind, size and brand sold by the initiator from 
dealers to whom a distributor has sold those beverages and 
from licensed redemption centers designated to serve those 
dealers pursuant 
The obligation may 
indirectly through 
to an order entered under section 1867. 
be fulfilled by the initiator directly or 
a contracted agent. 
c. 
An 
initiator 
of 
the 
deposit 
under 
section 
1863-A, 
subsection 2, 
or 4 has the obligation to pick up any 
empty, 
unbroken and 
reasonably clean beverage containers 
that are 
commingled pursuant to 
a 
commingling agreement 
along with any beverage containers that the initiator is 
otherwise obligated to pick up pursuant to paragraphs A and 
!h 
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. 6. 32 MRSA §§1866.D and 1866·E are enacted to read: 
§1866-D. 
Commingling of beverage containers 
Notwi thstanding any other provision of this chapter to the 
contrary, 
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: 
A. 
All containers of like material, size and product group: 
or 
B. 
All containers of like material and size. 
An 
initiator 
of 
deposit 
required 
pursuant 
to 
section 
1866, 
subsection 
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. 
Conningling of like materials. 
For purposes of this 
section, containers are considered to be of like materials if 
made up of one of the following: 
A. 
Plastic; 
B. 
Aluminum; 
C. 
Metal other than aluminum; and 
D. 
Glass. 
3. 
Commingling of like products. 
For purposes of this 
section, like products are those that are made up of one of the 
following: 
A. 
Beer, ale or other beverage produced by fermenting malt, 
wine and wine coolers; 
B. 
Spirits; 
C. 
Soda; 
D. 
Noncarbonated water; and 
E. 
All other beverages. 
4. 
Registration of cOllIDlinqling_i;!greements. 
Not later than 
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. 
Abandoned and unclaimed deposits; reports and payments 
The provisions of this section apply only to those beverage 
containers 
that 
are 
not 
subject 
to 
a 
qualified 
commingling 
agreement pursuant to section 1866, subsection 4, paragraph C. 
Deposits for beverage containers that are not subject to a 
qualified commingling agreement are presumed abandoned and are 
considered unclaimed deposits when retained by a manufacturer or 
distributor 
days after being collected during any 
3-month 
period 
ending 
the 
last 
day 
of 
March, 
June, 
September 
or 
December. 
Deposit 
initiators 
must 
report 
deposit-related 
activity and disburse unclaimed deposits in accordance with the 
provisions 
of 
this 
section 
for 
all 
beverage 
containers 
not 
subject to a qualified commingling agreement. 
( 
1. 
Deposit 
transaction 
account. 
Each 
distributor 
and 
manufacturer shall maintain an escrow account, 
referred to in 
this 
section 
as 
"a 
deposit 
transaction 
account," 
for 
the 
collection of deposit 
qnd 
refund values 
pursuant to section 
l863-A 
and 
the 
distribution of 
refund 
values 
and 
unclaimed 
deposits for all beverage containers not subject to a gualified 
commingling 
agreement. 
Funds 
deposited 
in 
the 
deposit 
transaction account may not be used for the reimbursement of 
handling costs or for any other purpose not expressly authorized 
in this subsection. 
2. 
Reports. 
Each deposit initiator must report to the 
department on or before the 20th day of March, June, September 
and December the total amount of deposits paid to, refunds paid 
from 
and 
income 
earned 
on 
the 
deposit 
initiator's 
deposit 
transaction account for the 3-month period ending the last day of 
December, March, June and September, respectively. 
3. 
Unclaimed deposits. 
Each deposit initiator shall pay to 
the Treasurer of State on or before the 20th day of March, June, 
September and December an amount egual to the unclaimed deposits 
held 
by 
the 
deposit 
initiator 
in 
its 
deposit 
transaction 
account. 
Funds received by the Treasurer of State under this 
subsection must be deposited into the General Fund. 
SUMMARY 
This 
bill 
allows 
initiators 
of 
deposits 
for 
beverage 
containers, for example, manufacturers or distributors, to enter 
into commingling agreements that allow dealers of the initiators' 
products 
and 
redemption 
centers 
to 
commingle 
the 
returned 
beverage containers according to the material, size or product 
group. 
This bill also increases the handling fee that initiators of 
deposit must pay to dealers or redemption centers by 
2¢ 
per 
returned 
container, 
for 
a 
total 
handling 
fee 
of 
5¢ 
per 
container. 
However, 
to 
encourage 
the 
use 
of 
commingling 
agreements, this bill also provides a discount on the handling 
fee of 1. 5¢ per container if that container is subject to a 
commingling agreement that allows for commingling of containers 
of like material and size, for example, 12-ounce aluminum cans. 
If the commingling agreement also requires the containers to be 
sorted by product group, 
for 
example, 
12-ounce 
aluminum beer 
cans, the initiator of deposit is only entitled to a discount of 
l¢ per container. 
The net effect is that dealers or redemption 
centers will realize a gain of at least .5¢ but not more than 2¢ 
per beverage container. 
This bill also 
requires 
unclaimed deposits 
containers not subject to a commingling agreement 
over to the State for deposit into the General Fund. 
for 
beverage 
to be turned