An Act To Protect Small Redemption Centers
Maine Legislature, Session 129, LD 0377
Committee: Environment and Natural Resources
Sponsors: DEVIN, CHIPMAN
Amends: 38 MRSA §3106, 38 MRSA §3119

Legislative Document
No. 377
H.P. 286
House of Representatives, January 24, 2019
An Act To Protect Small Redemption Centers
(EMERGENCY)
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative DEVIN of Newcastle.
Cosponsored by Senator CHIPMAN of Cumberland.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, because the reimbursement amount for beverage container handling costs 
has not increased in years, some redemption centers in the State have been forced to 
close; and
Whereas, this legislation increases the reimbursement amount beginning June 1, 
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,
Be it enacted by the People of the State of Maine as follows:
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 least 3 1/2¢ for containers picked up on or after 
March 1, 2004 and before March 1, 2010 and, at least 4¢ for containers picked up on 
or after March 1, 2010 and before June 1, 2019 and at least 5¢ for containers picked 
up on or after June 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 and, at least 4¢ for containers picked up on or after 
March 1, 2010 and before June 1, 2019 and at least 5¢ for containers picked up on or 
after June 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.
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, B and 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.
Sec. 2.  38 MRSA §3119 is enacted to read:
§3119.  Beverage container handling fee review panel
1.  Convene biennially.  Beginning in September 2021, and every 2 years thereafter, 
the commissioner shall convene a panel, referred to in this section as "the panel," to 
review the adequacy of the reimbursement established in section 3106, subsection 7 for 
beverage container handling costs.
2.  Membership; term.  The commissioner shall appoint 7 members to the panel to 
serve for a 4-month term. The panel members must include:
A.  Two members who represent initiators of deposit;
B.  Two members who represent local redemption centers;
C.  One representative of a nonprofit organization that works with issues associated 
with beverage container recycling;
D.  One member of the public; and
E.  One representative of the department.
3.  Duties.  The panel shall review the amount established in section 3106, subsection 
for the reimbursement of handling costs and shall assess the adequacy of that amount to 
cover the costs of processing beverage containers by local redemption centers, including 
but not limited to costs of labor, property, insurance, utilities, shipping and transport. 
Based on its review, the panel shall develop recommendations regarding the 
reimbursement of handling costs.
4.  Meetings; reports.  The panel shall meet as necessary and at the conclusion of its 
term shall report its findings and recommendations to the commissioner.  The 
commissioner shall include the panel's findings and recommendations in the next report 
submitted pursuant to section 1772 to the joint standing committee of the Legislature 
having jurisdiction over natural resources matters.
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved.
SUMMARY
This bill:
1.  Increases, beginning June 1, 2019, by one cent per returned container the handling 
costs to be reimbursed to the dealer or local redemption center for the cost of handling 
beverage containers;
2.  Repeals the provision that authorizes the reduced handling fee for small brewers 
and water bottlers; and
3.  Requires the Commissioner of Environmental Protection, beginning in September 
2021, and every 2 years thereafter, to convene a panel to review the adequacy of the 
reimbursement amount for beverage container handling costs and make any necessary 
recommendations regarding the reimbursement.