An Act To Reduce Fraud in the Processing of Beverage Containers
Maine Legislature, Session 123, LD 1759
Committee: Business, Research and Economic Development
Sponsors: SMITH, AUSTIN, CLEARY, PRESCOTT, RECTOR, SAMSON, BROMLEY, SCHNEIDER
Amends: 32 MRSA §1862, 32 MRSA §1866, 32 MRSA §1867

Legislative Document 
No. 1759 
H.P.1225 
House of Representatives, March 27, 2007 
An Act To Reduce Fraud in the Processing of Beverage Containers 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative SMITH of Monmouth. 
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MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: AUSTIN of Gray, CLEARY of Houlton, PRESCOTT of 
Topsham, RECTOR of Thomaston, SAMSON of Auburn, Senators: BROMLEY of 
Cumberland, SCHNEIDER of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 32 MRSA §1862, sub-§12-E, as enacted by PL 2003, c. 499, §3, IS 
amended to read: 
12-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. "Reverse vending machine" does not 
include a hand scanner or other similar device. 
Sec. 2. 32 MRS A §1865, sub-§4 is enacted to read: 
4. Removal of product. A product that is sold or distributed in the State that is not 
in compliance with the initiator of deposit or the labeling registration requirements 
established in this section may be removed from sale by the department. 
Sec. 3. 32 MRSA §1866, sub-§3-A is enacted to read: 
3-A. Obligation to preserve recycling value. Notwithstanding subsection 5, a 
distributor or its agent may refuse to accept from a dealer, redemption center or other 
person, and refuse to pay the refund value and handling costs for, a beverage container 
that has been processed in a way that reduces its recycling value below the current price 
quoted for the applicable material in a secondary materials pricing index for the New 
York-New England region. This subsection may not be interpreted to prohibit a 
processing arrangement that is mutually agreed upon in writing between the distributor 
and the dealer or redemption center. 
The department shall adopt routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A regarding the recycling value of beverage containers. 
Sec. 4. 32 MRS A §1866, sub-§5, as amended by PL 2003, c. 499, §7, 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, quantity in the aggregate 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's establishment, shall pick up any 
empty, unbroken and reasonably clean beverage containers of the kind, size, quantity 
in the aggregate 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 
shaY must 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 adopted 
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 3 has the obligation 
to pick up any empty, unbroken and reasonably clean beverage containers of the 
particular kind, size, quantity in the aggregate 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 to an order entered under section 
1867. The obligation may be fulfilled by the initiator directly or indirectly through a 
contracted agent. 
C. 
An initiator of the deposit under section 1863-A, subsection 2, 3 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 B. 
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. 5. 32 MRS A §1866, sub-§8, as amended by PL 1995, c. 85, §1, is further 
amended to read: 
8. Application to containers originally sold in the State. The obligations to accept 
or take empty beverage containers and to pay the refund value and handling fees costs for 
such containers as described in subsections 1, 2, 3, 4 and 5 apply only to containers 
originally sold in this State as filled beverage containers. A person whe or redemption 
center that tenders to a dealer, distributor, redemption center or bottler more than 48 
empty beverage containers that the person or redemption center knows or has reason to 
know were not originally sold in this State as filled beverage containers is subject to the 
enforcement action and civil penalties set forth in this subsection. At each location where 
customers tender containers for redemption, dealers and redemption centers must 
conspicuously display a sign in letters that are at least one inch in height with the 
following information: "WARNING: Persons tendering containers for redemption that 
were not originally purchased in this State may be subj ect to a fine of the greater of $100 
per container or $25,000 for each tender. (32 MRSA Section 1866)." A person who 
violates the provisions of this subsection is subject to a civil penalty of the greater of 
$100 for each container or $25,000 for each tender of containers. 
Sec. 6. 32 MRSA §1866, sub-§9 is enacted to read: 
9. Fraud prevention and bulk redemption. In order to prevent fraud from the 
redemption of beverage containers not originally sold in this State, the following 
requirements apply. 
A. A person tendering for redemption more than 1,000 empty beverage containers to 
a dealer or redemption center shall sign a declaration indicating that all beverage 
containers presented for redemption were collected in the State. The declaration must 
also include the person's name and address and any other identifying information the 
department considers necessary. The dealer or redemption center redeeming the 
beverage containers shall forward the declaration to the department within 10 days 
and keep the information on file for a minimum of 12 months. 
B. A person tendering for redemption more than 1,000 empty beverage containers to 
a dealer or redemption center that were collected at one location in this State and all 
proceeds of the refund value of which benefit a registered nonprofit or not-for-profit 
corporation shall sign a declaration indicating the person's name, the address of the 
collection point and the name of the organization receiving the refund value. 
Subsequent tendering of more than 1,000 empty beverage containers by that person 
collected at the location identified in the declaration is exempt from the requirements 
of paragraph A. 
Sec. 7. 32 MRS A §1866, sub-§10 is enacted to read: 
10. License revocation. The department may revoke the license of a dealer or 
redemption center not in compliance with the requirements of this section. 
Sec. 8. 32 MRSA §1867, sub-§4, as amended by PL 2001, c. 661, §7, is further 
amended to read: 
4. Redemption center acceptance refund account. A local redemption center may 
not refuse to accept from any consumer or other person not a dealer any empty, unbroken 
and reasonably clean beverage container of the kind, size and brand sold by a dealer 
served by the center as long as the label for the container is registered under section 1865, 
subsection 3 or refuse to pay in cash the refund value of the returned beverage container 
as established by section 1 863-A. A redemption center or reverse vending machine is not 
obligated to count containers or to pay a cash refund at the time the beverage container is 
returned as long as the amount of the refund value due is placed into an account to be 
held for the benefit of the customer and funded in a manner that allows the customer to 
obtain deposits due within 2 business days of the time of the return. 
SUMMARY 
This bill makes a series of changes to Maine's so-called "bottle bill." 
1. The bill clarifies that the definition of "reverse vending machine" does not include 
devices such as hand scanners. 
2. The bill provides the Department of Agriculture, Food and Rural Resources with 
the authority to remove any product from sale if that product has not been properly 
registered pursuant to the Maine Revised Statutes, Title 32, section 1865, subsection 3. 
3. The bill allows the distributor to refuse to accept any beverage container that has 
been processed in a way that reduces the recycling value of the beverage container below 
current prices. 
4. The bill clarifies that the distributor is obligated to pick up beverage containers 
from dealers to whom that distributor has sold those beverages and from licensed 
redemption centers designated to serve those dealers in the same quantity as was sold to 
the dealer. 
5. The bill requires any person who tenders more than 1,000 beverage containers for 
redemption at any dealer or redemption center to provide a name and address and sign a 
declaration indicating that the containers were collected in Maine. The bill requires that 
the information be forwarded to the department and kept on file by the dealer or 
redemption center for a minimum of one year. A person tendering more than 1,000 
beverage containers collected at a fixed location when the proceeds are given to not-for-
profit groups is, after declaration of a name and address of the collection point, exempt 
from this requirement. 
6. The bill relieves a redemption center of the obligation to pay the cash value for 
returnable beverage containers at the time they are presented for refund if the redemption 
center has established a deposit account on behalf of a customer and credits that account 
within 2 business days of the date of return.