An Act To Increase the Handling Fee for Beverage Containers Reimbursed to Redemption Centers
Maine Legislature, Session 129, LD 0248
Committee Amendment CA_A-SA_A_S56 (Senate)
Amends: 38 MRSA §3106

SENATE AMENDMENT "Pr " to 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 amendment by striking out all of the 3rd paragraph after the title (page 1, 
lines 15 and 16 in amendment) and inserting the following: 
'Whereas, this legislation prohibits the issuance of new beverage container 
redemption center licenses to beverage redemption centers that were not previously 
issued a license prior to May 1, 2019; and' 
Amend the amendment by striking out all of sections 1 and 2 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 1s 
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 ant:t at least 4¢ for containers picked up on 
or after March 1, 2010 and before January 1, 2020 and at least 4 1/2¢ 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 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 January 1, 2020 and at least 4 1/2¢ for containers picked 
SENA TE AMENDMENT 
SENATE AMENDMENT" A "to COMMITTEE AMENDMENT "A" to S.P. 60, L.D. 248 ( ;j -SY 
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 
red6mption 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 lilrn 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 ohvin6 or 500,000 beverag6 contain6rs 
that contain •;vine in a calendar year. Once the initiator of deposit has established a 
qualifi6d commingling agreement for containtJrs of a like product group, mat6rial and 
size, the department shall allow additional brands to be included from a different 
product group if they are of like material. Th6 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 
agre6m6nt under this paragraph with W6ry other initiator of deposit for b6verag6 
containers that are of like product group, size and material as the beverage containers 
for which th6 State is th6 initiator of deposit. 
D. Paragraphs A, and B an4-G 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, except that, beginning January 1, 2020, the initiator of deposit shall 
reimburse the dealer or local redemption center at least 3 1/2¢ per returned container. 
Sec. 2. Moratorium on new redemption center licenses. Notwithstanding 
any provision of the Maine Revised Statutes, Title 38, chapter 33 to the contrary, 
beginning May 1, 2019 and ending January 15, 2020, the Department of Environmental 
Protection may not issue a license to a redemption center that was not licensed as a 
redemption center pursuant to Title 38, chapter 33 as of April 30, 2019 unless the 
department determines that a new redemption center is needed to serve an area in which a 
redemption center licensed as a redemption center pursuant to Title 38, chapter 33 as of 
April 30, 2019 ceases to operate. This section does not prevent the department from 
renewing the license of a redemption center previously issued a license pursuant to Title 
38, chapter 33 prior to May 1, 2019. 
Sec. 3. Container redemption efficiencies; report. 
The Commissioner of 
Environmental Protection shall require each initiator of deposit that has entered into a 
SENA·TE AMENDMENT 
SENATE AMENDMENT" j,s "to COMMITTEE AMENDMENT "A"to S.P. 60, L.D. 248 (:-:>~5~ 
commingling agreement pursuant to the Maine Revised Statutes, Title 38, section 3107, 
and the contracted agent of the initiator of deposit, if any, to no later than July 1, 2019 
report to the Department of Environmental Protection the number of beverage containers 
picked up from each redemption center on each pick-up date in calendar year 2018. The 
initiators of deposit that have entered into a commingling agreement may elect to 
aggregate the data required under this section for the entire commingling group for the 
purpose of reporting to the department. Upon receipt of the data under this section, the 
department shall assess the efficiency and convenience of the beverage container 
redemption system and develop recommendations to improve efficiencies in the handling 
and transportation of beverage containers and to ensure convenient collection of beverage 
containers for consumers. On or before January 15, 2020, the commissioner shall submit 
a report to the Joint Standing Committee on Environment and Natural Resources detailing 
the department's findings and recommendations, including any proposed legislation. 
After reviewing the report, the committee may report out legislation to the Second 
Regular Session of the 129th Legislature to implement recommendations contained in the 
report. 
Sec. 4. 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 for 
removal of the 1/2¢ commingling agreement discount in the reimbursement rate paid to a 
dealer or local redemption center beginning May 1, 2019. 
STATE ALCOHOLIC BEVERAGE 
FUND 
All Other 
STATE ALCOHOLIC BEVERAGE 
FUND TOTAL 
Alcoholic Beverages - General Operation 0015 
2018-19 
$17,562 
$17,562 
2019-20 
$114,264 
$114,264 
2020-21 
$124,282 
$124,282 
Initiative: Provides allocation for the State's cost as an initiator of deposit for spirits for an 
increase in the reimbursement rate paid to a dealer or local redemption center by 1/2¢ per 
returned beverage container beginning January 1, 2020. 
STATE'ALCOHOLIC BEVERAGE 
2018-19 
FUND 
All Other 
$0 
-
STATE ALCOHOLIC BEVERAGE 
$0 
FUND TOTAL 
2019-20 
$57,132 
$57,132 
SENATE AMENDMENT 
2020-21 
$124,282 
$124,282 
SENATE AMENDMENT "A "to COMMITTEEAMENDMENT"A"to S.P. 60,L.D. 248 ( S -S"t.:.) 
ADMINISTRATIVE AND 
FINANCIAL SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
STATE ALCOHOLIC 
BEVERAGE FUND 
DEPARTMENT TOTAL-ALL 
FUNDS 
2018-19 
2019-20 
2020-21 
$17,562 
$171,396 
$248,564 
-
$17,562 
$171,396 
$248,564 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment amends Committee Amendment 
11A
to: 
1. Increase the reimbursement to the dealer or local redemption center for the cost of 
handling beverage containers by 1/2¢ beginning January 1, 2020; 
2. Eliminates a provision reducing by 1/2¢ the reimbursement to the dealer or local 
redemption center for the cost of handling beverage containers subject to a qualified 
commingling agreement; 
3. Places a moratorium from May 1, 2019 to January 15, 2020 on the issuance by the 
Department of Environmental Protection of redemption center licenses to redemption 
centers not licensed prior to May 1, 2019 unless the department determines that a new 
redemption center is needed to serve an area in which an existing redemption center 
ceases to operate. This licensing prohibition does not apply to renewal of redemption 
center licenses issued prior to May 1, 2019; and 
4. Direct the Commissioner of Environmental Protection to require each initiator of 
deposit that has entered into a commingling agreement, and its contracted agent, if any, to 
no later than July 1, 2019 report to the department the number of beverage containers 
picked up from each redemption center on each pick-up date in calendar year 2018. 
Upon receipt of this data, the department shall assess the efficiency and convenience of 
the beverage container redemption system and develop recommendations to improve 
efficiencies in the handling and transportation of beverage containers and to ensure 
convenient collection of beverage containers for consumers. On or before January 15, 
SENATE AMENDMENT 
SENATE AMENDMENT" A "to COMMITTEE AMENDMENT "A" to S.P. 60, L.D. 248 ( ~ • ~ 
2020, the comm1ss1oner shall submit a report to the Joint Standing Committee on 
Environment and Natural Resources detailing the department's findings 
and 
recommendations, including any proposed legislation. It authorizes the committee to 
report out legislation to implement recommendations contained in the report. 
FISCAL NOTE REQUIRED 
(See attached) 
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SPONSORED BY: 
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(Senator FOLEY, R.) 
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COUNTY: York 
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SENATE AMENDMENT 
Approved: 04/22/19 feac:.. 
LD248 
LR 109(04) 
An Act To Increase the Handling Fee for Beverage Containers Reimbursed to Redemption Centers 
Fiscal Note for Senate Amendment '~' to Committee Amendment "A"( S • sy 
Sponsor: Sen. Foley of York 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2018-19 
FY 2019-20 
FY 2020-21 
Appropriations/ Allocations 
State Alcoholic Beverage Fund 
$17,562 
$152,352 
$67,150 
Fiscal Detail and Notes 
Projections 
FY 2021-22 
$0 
Projections 
FY 2022-23 
$0 
This amendment eliminates the May 1, 2019 one-half cent increase in handling reimbursement in the committee 
amendment, but keeps the January 1, 2020 increase. This change is offset by a new provision beginning May 1, 2019 
that removes from existing law a reduction of one-half cent in the reimbursement paid if the container is subject to a 
commingling agreement. Taken together these two changes completely offset each other and there is no net fiscal 
effect from eliminating the May 1, 2019 handling reimbursement increase and eliminating the commingling discount 
on the same date. 
This amendment also prohibits the issuance by the Department of Enviromnental Protection (DEP) of new 
redemption center licenses after May 1, 2019 until January 15, 2020, while allowing currently licensed redemption 
centers to renew licenses. This prohibition will result in a minor Other Special Revenue Funds revenue loss for the 
department. The amendment also directs the DEP to require the submission of additional infonnation from initiators 
of deposit regarding their activities in the beverage container redemption program. Any additional costs to BABLO 
as an initiator of deposit or the DEP as a result of this requirement are anticipated to be minor and can be absorbed 
within existing budget resources. 
This amendment also adjusts the allocations in the committee amendment to better reflect the timing of 
implementation. These adjustments are not related to the provisions of this amendment. 
LR0109(04) - Fiscal Note - Page 1 of 1