An Act To Increase the Handling Fee for Beverage Containers Reimbursed to Redemption Centers
Maine Legislature, Session 129, LD 0248
Committee Amendment CA_A_S20 (Senate)
Amends: 38 MRSA §3106

COMMITTEE AMENDMENT" A "to S.P. 60, L.D. 248, Bill, "An Act To Increase 
the Handling Fee for Beverage Containers Reimbursed to Redemption Centers" 
Amend the bill by inserting after the title and before the enacting clause the 
following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation increases the amount that initiators of deposit reimburse 
dealers and local redemption centers beginning May l, 2019; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 1 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 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 l~ast 3 1/2¢ for containers picked up on or after 
March 1, 2004 and before March 1, 2010 arul~ at least 4¢ for containers picked up on 
or after March 1, 2010 and before May 1, 2019, at least 4 1/2¢ for containers picked 
up on or after May 1, 2019 and before January 1, 2020 and at least 5¢ for containers 
picked up on or after Januaty 1, 2020. The initiator of the deposit may reimburse the 
COMMITTEE AMENDMENT 
COMMITTEEAMENDMENT"A,"to S.P. 60,L.D. 248 
( ~p'2.6) 
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 aruli at least 4¢ for containers picked up on or after 
March 1, 2010 and before May 1, 2019, at least 4 1/2¢ for containers picked up on or 
after May 1, 2019 and before January 1, 2020 and at least 5¢ for containers picked up 
on or after January 1, 2020. 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. 
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 commi:p.gling 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 hottler 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, except that, beginning May 1, 2019, the initiator of deposit shall reimburse 
the dealer or local redemption center at least 3 1/2¢ per returned container and, 
beginning January 1, 2020, the initiator of deposit shall reimburse the dealer or local 
redemption center at least 4¢ per rettirned container. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "/Jr "to S.P. 60, L.D. 248 
(.s -2 0 
Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Alcoholic Beverages - General Operation 0015 
Initiative: Provides allocation for the State's cost as an initiator of deposit for spirits of an 
increase in the reimbursement rate paid to a dealer or local redemption center by one-half 
cent per returned beverage container beginning May 1, 2019 and by another one-half cent 
beginning January 1, 2020. 
STATE ALCOHOLIC BEVERAGE FUND 
All Other 
STATE ALCOHOLIC BEVERAGE FUND TOTAL 
2019-20 
$19,044 
$19,044 
2020-21 
$181,414 
$181,414 
Emergency clause. 
In view cif the emergency cited in the preamble, this 
legislation takes effect when approved.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
. 
This amendment, which is the majority report of the committee, increases the 
reimbursement to the dealer or local redemption center for the cost of handling beverage 
containers by one-half cent beginning May 1, 2019 and by an additional one-half cent 
beginning Janua1y 1, 2020. It also adds an emergency preamble and emergency clause 
and an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/18/19 feac:.. 
LD248 
LR 109(02) 
An Act To Increase the Handling Fee for Beverage Containers Reimbursed to Redemption Centers 
Fiscal Note for Bill as Amended by Committee Amendment '{4" (~- 2o) 
Committee: Environment and Natural Resources 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
FY 2020-21 
Appropriations/Allocations 
State Alcoholic Beverage Fund 
$19,044 
$181,414 
Fiscal Detail and Notes 
Projections 
FY 2021-22 
$271,180 
Projections 
FY2022-23 
$296,747 
This bill would increase the cost of handling reimbursement paid per returned beverage container by the initiator of 
deposit to dealers and local redemption centers under the state bottle redemption program by half a cent beginning 
May 1, 2019 and by another half a cent beginning January 1, 2020. Since the Bureau of Alcoholic Beverages and 
Lottery Operations (BABLO) functions as the initiator of deposit for all spirits sold in Maine, the increase in 
reimbursement would require an additional allocation from the Alcoholic Beverages Fund of $19,044 in fiscal year 
2019-20 and $181,414 in fiscal year 2020-21. Because the bottle redemption program and any payments required by 
the initiator of deposit is included in the spirits administration contract with Pine State Trading Company, this change 
will require the contract to be renegotiated. 
It is anticipated that the Alcoholic Beverages Fund will have sufficient revenue to fund the additional allocation for 
the foreseeable future. However, additional expenditures from the fund may put required future payments to, the 
Maine Municipal Bond Banlc at risk. 
LR0109(02) - Fiscal Note - Page 1 of 1