An Act To Create Equity for Wine and Spirits Container Deposits
Maine Legislature, Session 128, LD 1703
Committee Amendment CA_B_H627 (House)
Amends: 38 MRSA §3106

COMMITTEE AMENDMENT "13" to H.P. 1183, L.D. 1703, Bill, "An Act To 
Create Equity for Wine and Spirits Container Deposits" 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. 38 MRSA §3106, sub-§7, as enacted by PL 2015, c. 166, §14, is 
amended to read: 
7. 
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 3103, subsections 1, 2 and 4 shall reimburse the dealer or local redemption 
center for the cost of handling beverage containers subject to section 3103, in an 
amount that equals at least 3 ¢ per returned container for containers picked up by the 
initiator before March 1, 2004, at least 3 1/2¢ for containers picked up on or after 
March 1, 2004 and before March 1, 2010 a.litt at least 4¢ for containers picked up on 
or after March 1, 2010 and before March 1. 2019 and at least 4 1/2¢ for containers 
picked up on or after March 1, 2019. 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 3103, subsection 3 shall reimburse the dealer or local redemption center for 
the cost of handling beverage containers subject to section 3103 in an amount that 
equals at least 3¢ per returned container for containers picked up by the initiator 
before March 1, 2004, at least 3 1/2¢ for containers picked up on or after March 1, 
2004 and before March 1, 2010 ood~ at least 4¢ for containers picked up on or after 
March 1, 2010 and before March 1, 2019 and at least 4 1/2¢ for containers picked up 
on or after March 1, 2019. The initiator of the deposit may reimburse the dealer or 
local redemption center directly or indirectly through a contracted agent or through a 
party with which it has entered into a commingling agreement. 
COMMITTEE AMENDMENT 
"· ~ fb. 
COMMITIEEAMENDMENT.E"toH.P.1183,L.D.1703 
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 1/2¢ 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 product 
group, material and size. A commingling agreement is qualified for purposes of this 
paragraph if the department determines that 50% or more of the beverage containers 
of like product group, material and size for which the deposits are being initiated in 
the State are covered by the commingling agreement or that the initiators of deposit 
covered by the commingling agreement are initiators of deposit for wine containers 
who each sell no more than 100,000 gallons of wine or 500,000 beverage containers 
that contain wine in a calendar year. Once the initiator of deposit has established a 
qualified commingling agreement for containers of a like product group, material and 
size, the department shall allow additional brands to be included from a different 
product group if they are of like material. 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 paragraph with every other initiator of deposit for beverage 
containers that are of like product group, size and material as the beverage containers 
for which the State is the initiator of deposit. 
D. Paragraphs A, Band C do not apply to a brewer who annually produces no more 
than 50,000 gallons of its product or a bottler of water who annually sells no more 
than 250,000 containers each containing no more than one gallon of its product. In 
addition to the payment of the refund value, an initiator of deposit under section 
3103, subsections 1 to 4 who is also a brewer who annually produces no more than 
50,000 gallons of its product or a bottler of water who annually sells no more than 
250,000 containers each containing no more than one gallon of its product shall 
reimburse the dealer or local redemption center for the cost of handling beverage 
containers subject to section 3103 in an amount that equals at least 3¢ per returned 
container for containers picked up before March 1, 2019 and at least 3 1/2¢ for 
containers picked up on or after March 1, 2019. 
Sec. 3. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Alcoholic Beverages - General Operation 0015 
fuitiative: Provides an allocation for reimbursement payments to agency liquor stores for 
the difference between the deposits on spirits purchased before March 1, 2019 and the 
refund value on those same purchases still unsold or returned after that date. 
STATE ALCOHOLIC BEVERAGE FUND 
All Other 
STATE ALCOHOLIC BEVERAGE FUND TOTAL 
Alcoholic Beverages - General Operation 0015 
2017-18 
$0 
$0 
COMMITTEE AMENDMENT 
2018-19 
$60,000 
$60,000 
i.•'· 
COMMITTEEAMENDMENT.:B" to H.P. 1183, L.D. 1703 
Initiative: Provides an allocation for an increase in the rate of handling cost 
reimbursement paid by the initiator of deposit to a dealer or local redemption center. 
STATE ALCOHOLIC BEVERAGE FUND 
All Other 
STATE ALCOHOLIC BEVERAGE FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
STATE ALCOHOLIC BEVERAGE FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2017-18 
$0 
$0 
2017-18 
$0 
$0 
2018-19 
$147,000 
$147,000 
2018-19 
$207,000 
$207,000 
Sec. 4. Effective date. That section of this Act that repeals and replaces the Maine 
Revised Statutes, Title 38, section 3103, subsection 4 takes effect March 1, 2019.' 
SUMMARY 
This amendment, which is a minority report of the committee, amends the bill as 
follows: 
1. It retains the provision of the bill that creates a uniform refund value of not more 
than 5¢ for all wine and spirits containers but provides that this uniform refund value 
does not take effect until March 1, 2019; 
2. Effective March 1, 2019, it increases by 1/2¢ the per container handling fee to be 
paid by an initiator of deposit to a dealer or local redemption center; and 
3. It adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/27/18 feac 
LD 1703 
LR 2632(03) 
An Act To Create Equity for Wine and Spirits Container Deposits 
Fiscal Note for Bill as Amended by Committee Amendment f3 (_ H- lJ':}_,-;j 
Committee: Environment and Natural Resources 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
Projections 
FY 2019-20 
Projections 
FY 2020-21 
Appropriations/Allocations 
State Alcoholic Beverage Fund 
$0 
$207,000 
$161,700 
$177,870 
Fiscal Detail and Notes 
This bill would create a uniform refund value of 5 ¢ for all returnable beverage containers starting March 1, 2019. 
Because the bottle redemption program is included in the spirits administration contract with Pine State Trading 
Company, this change would require an addendum to the cunent contract. As a result of the new redemption value, the 
spirits contract vendor would be required to phase in new redemption stickers and to affix new redemption stickers to 
any remaining inventory in stock that was purchased prior to, and that remained unsold on, March 1, 2019. 
Additionally, because the Bureau of Alcoholic Beverages and Lotte1y Operations acts as the initiator of deposits on 
Spirits purchased under the spirits contract, the bureau will be required to reimburse agency liquor stores for the cost 
difference between the deposits on spirits purchased before March 1, 2019 and the refund value on those same 
purchases still unsold or returned after that date. The bill includes a one-time allocation of $60,000 in fiscal year 2018-
to reimburse agency liquor stores. This bill also increases the rate of handling cost reimbursement paid by the 
initiator of deposit to a dealer or local redemption center from 4¢ a container to 4.5¢ a container. The bill includes an 
ongoing allocation of $147,000 beginning in fiscal year 2018-19 for this purpose. It is anticipated that the Alcoholic, 
Beverages Fund will have sufficient revenue to fund these allocations in the near future. However, the additional 
expenditures from the fund may eventually put required payments to the Maine Municipal Bond Bank at risk. 
Any additional costs to the Department of Environmental Protection as a result of changes to the redemption value are 
anticipated to be minor and can be absorbed within existing budgeted resources. 
LR2632(03) - Fiscal Note - Page 1 of 1