An Act to Modernize Maine's Beverage Container Redemption Law
Maine Legislature, Session 131, LD 1909
Committee: Environment and Natural Resources
Sponsors: HEPLER, POULIOT, LANDRY, WHITE, BENNETT, BLACK, CARNEY, HICKMAN, LIBBY, TIMBERLAKE
Amends: 36 MRSA §112, 38 MRSA §3102, 38 MRSA §3105, 38 MRSA §3106, 38 MRSA §3107, 38 MRSA §3108, 38 MRSA §3108-A, 38 MRSA §3109, 38 MRSA §3113, 38 MRSA §3114, 38 MRSA §3115, 38 MRSA §3119

Legislative Document
No. 1909
H.P. 1225
House of Representatives, May 9, 2023
An Act to Modernize Maine's Beverage Container Redemption Law
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative HEPLER of Woolwich.
Cosponsored by Senator POULIOT of Kennebec and
Representatives: LANDRY of Farmington, WHITE of Waterville, Senators: BENNETT of 
Oxford, BLACK of Franklin, CARNEY of Cumberland, HICKMAN of Kennebec, LIBBY of 
Cumberland, TIMBERLAKE of Androscoggin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §112, sub-§8, as amended by PL 2021, c. 1, Pt. M, §§9 and 10, 
is further amended to read:
8.  Additional duties.  In addition to the duties specified in this Title, the assessor has 
the following duties:
A.  Collection of the tax on fire insurance companies imposed by Title 25, section 2399; 
and.
E.  Administration of reports and payments required under Title 38, section 3108.
Sec. 2.  38 MRSA §3102, sub-§1-A is enacted to read:
1-A.  Account-based bulk processing program.  "Account-based bulk processing 
program" means a beverage container recycling program implemented by a redemption 
center or pick-up agent that meets the requirements of rules adopted by the department, is 
approved by the department and consolidates beverage containers subject to the 
requirements of this chapter through bulk sorting, collects data regarding the containers to 
support an accounting of deposits, fees and material weight and prepares the sorted 
containers for sale to recyclers. An account-based bulk processing program may include a 
bag-drop program as a program component.
Sec. 3.  38 MRSA §3102, sub-§1-B is enacted to read:
1-B.  Bag-drop program.  "Bag-drop program" means a beverage container recycling 
program implemented by a redemption center that meets the requirements of rules adopted 
by the department and that allows a person to drop off beverage containers subject to the 
requirements of this chapter in a bag or other receptacle at one or more identified locations 
and to have the corresponding refund placed into an account to be held for the benefit of 
the person in a manner that allows the person to obtain the refund or a refund receipt within 
business days following the drop-off.  A bag-drop program may be implemented as part 
of or in conjunction with an account-based bulk processing program.
Sec. 4.  38 MRSA §3102, sub-§3-A is enacted to read:
3-A.  Commingling cooperative or cooperative.  "Commingling cooperative" or 
"cooperative" means the entity established pursuant to section 3107, subsection 3-B to 
manage the collection of all beverage containers subject to the requirements of this chapter 
under a single commingling program.
Sec. 5.  38 MRSA §3102, sub-§3-B is enacted to read:
3-B.  Commingling group.  "Commingling group" means a group of initiators of 
deposit that have entered into a commingling agreement approved by the department in 
accordance with section 3107, subsection 1-A or 1-B. "Commingling group" includes the 
State, through the Department of Administrative and Financial Services, Bureau of 
Alcoholic Beverages and Lottery Operations, which, pursuant to section 3107, is deemed 
to be managing returned containers for which the State has initiated deposits in a 
commingling program pursuant to a qualified commingling agreement, but does not 
include the commingling cooperative.
Sec. 6.  38 MRSA §3102, sub-§16-A, as enacted by PL 2019, c. 526, §5, is amended 
to read:
16-A.  Pick-up agent.  "Pick-up agent" means an initiator of deposit, a distributor or a 
contracted agent of an initiator of deposit or, a distributor, a commingling group or the 
commingling cooperative that receives redeemed beverage containers from a redemption 
center, except for beverage containers redeemed through an account-based bulk processing 
program, and transports those containers for recycling.
Sec. 7.  38 MRSA §3102, sub-§19, as enacted by PL 2015, c. 166, §14, is amended 
to read:
19.  Reverse vending machine.  "Reverse vending machine" means an automated 
device that meets the requirements of rules adopted by the department and that uses a laser 
scanner or optical sensor and microprocessor to accurately recognize the universal product 
code on beverage 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. 8.  38 MRSA §3105, sub-§1, as amended by PL 2019, c. 11, §1, is further 
amended to read:
1.  Labels.  Except as provided under subsections 2 and subsection 4, the refund value, 
or the words "refund value" or the abbreviation "RV," and the word "Maine" or the 
abbreviation "ME" must be clearly indicated on every refundable beverage container sold 
or offered for sale by a dealer in this State, by embossing, stamping, labeling or other 
method of secure attachment to the beverage container, except in instances when the 
initiator of deposit has specific permission from the department to use stickers or similar 
devices.  The refund value may not be indicated on the bottom of the container.
Sec. 9.  38 MRSA §3105, sub-§2, as amended by PL 2019, c. 11, §2, is repealed.
Sec. 10.  38 MRSA §3105, sub-§3, as enacted by PL 2015, c. 166, §14, is repealed.
Sec. 11.  38 MRSA §3105, sub-§4, as enacted by PL 2015, c. 166, §14, is amended 
to read:
4.  Brand name Refillable glass beverage containers.  Refillable glass beverage 
containers of carbonated beverages, for which the deposit is initiated under section 3103, 
subsection 1, that have a refund value of not less than 5¢ and a brand name permanently 
marked on the container are not required to comply with subsection 1.  The exception 
provided by this subsection does not apply to glass beverage containers that contain spirits, 
wine or malt liquor as those terms are defined by Title 28‑A, section 2.
Sec. 12.  38 MRSA §3105, sub-§5, as amended by PL 2019, c. 526, §6, is further 
amended to read:
5.  Label registration.  An initiator of deposit shall register the container label of any 
beverage offered for sale in the State on which it initiates a deposit.  Registration must be 
on forms or in an electronic format provided by the department prior to January 15, 2025 
and by the cooperative beginning January 15, 2025 and must include the universal product 
code for each combination of beverage and container manufactured.  The initiator of 
deposit shall renew a label registration annually and whenever that label is revised by 
altering the universal product code or whenever the container on which it appears is 
changed in size, composition or glass color.  The initiator of deposit shall also include as 
part of the registration the method of collection for that type of container, identification of 
a collection agent, identification of all of the parties to a commingling agreement that 
applies to the container and proof of the collection agreement.  The Except as provided in 
paragraph A, the department may charge a fee for registration and registration renewals 
under this subsection.
A.  Beginning January 15, 2025, the department may not charge a fee for registration 
and registration renewals under this subsection.
B.  Beginning January 15, 2025, a commingling group shall ensure that all initiators of 
deposit participating in the commingling group provide to the cooperative accurate and 
up-to-date label registration information required by this subsection and any updates to 
label registrations.  The cooperative shall ensure that accurate and up-to-date 
information regarding all label registrations is shared with entities using or 
administering reverse vending machine and account-based bulk processing programs 
and is made available on its publicly accessible website.
Sec. 13.  38 MRSA §3105, sub-§5-A is enacted to read:
5-A.  Unregistered labels; payment.  Beginning January 15, 2025, if a person notifies 
the cooperative that a beverage container is sold or offered for sale in the State with a label 
that has not been registered in accordance with this section, the cooperative shall provide 
the person with a payment of not less than $100 per label upon a determination by the 
cooperative that:
A.  The beverage container is sold or offered for sale in the State with an unregistered 
label; and
B.  The cooperative has not already made a payment under this subsection to another 
person with respect to the same unregistered label.
Sec. 14.  38 MRSA §3106, sub-§1, as amended by PL 2019, c. 526, §7, is further 
amended to read:
1.  Dealer acceptance.  Except as otherwise provided in this section, a dealer operating 
a retail space of 5,000 square feet or more may not refuse to accept from any consumer or 
other person not a dealer any empty, unbroken and reasonably clean beverage container or 
refuse to pay in cash the refund value of the returned beverage container as established by 
section 3103 unless the dealer has a written agreement with a redemption center to provide 
redemption services on behalf of the dealer and that redemption center: is located within 
miles from the dealer, as measured along public roadways.
A.  Is located within 10 miles from the dealer, as measured along public roadways; or
B.  If there is no redemption center located within 10 miles from the dealer under 
paragraph A, is the redemption center in closest proximity to the dealer, as measured 
along public roadways.
If there is no redemption center located within 10 miles from a dealer operating a retail 
space of 5,000 square feet or more, the dealer shall notify the department and, pursuant to 
section 3113, the department may issue a license to a redemption center that is proposed to 
be located within 10 miles from that dealer and that satisfies all other applicable 
requirements for licensure.
This subsection does not require an operator of a vending machine to maintain a person to 
accept returned beverage containers on the premises where the vending machine is located.
Sec. 15.  38 MRSA §3106, sub-§5, as amended by PL 2019, c. 526, §7, is further 
amended to read:
5.  Distributor acceptance Acceptance by commingling group.  A distributor 
commingling group or its agent may not refuse to accept from any dealer or redemption 
center any empty, unbroken and reasonably clean beverage container or any beverage 
container that has been processed through an approved reverse vending machine or 
account-based bulk processing program that meets the requirements of rules adopted by 
the department pursuant to this chapter of the kind, size and brand sold by the distributor 
or refuse to pay to the dealer or redemption center the refund value of a beverage container 
as established by section 3103.
Sec. 16.  38 MRSA §3106, sub-§6, as amended by PL 2019, c. 526, §7, is further 
amended to read:
6.  Obligation to preserve recycling value.  Notwithstanding subsection 8, a 
distributor commingling group or its agent may refuse to accept, or pay the refund value 
and handling costs to a dealer, redemption center or other person for, a beverage container 
that has been processed by a reverse vending machine or account-based bulk processing 
program in a way that has reduced the recycling value of the container below current market 
value.  This subsection may not be interpreted to prohibit a written processing agreement 
between a distributor commingling group and a dealer or redemption center and does not 
relieve a distributor commingling group of its obligation under subsection 8 to accept 
empty, unbroken and reasonably clean beverage containers.  The department shall adopt 
rules to establish the recycling value of beverage containers under this subsection and the 
rules may authorize the use of a 3rd-party vendor to determine if a beverage container has 
been processed by a reverse vending machine or account-based bulk processing program 
in a manner that has reduced the recycling value below current market value.  The rules 
must outline the method of allocating among the parties involved the payment for 3rd-party 
vendor costs.
Sec. 17.  38 MRSA §3106, sub-§7, as amended by PL 2019, c. 526, §7, is further 
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 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, 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 and before September 1, 2023, at least 6¢ for containers picked up on 
or after September 1, 2023 and before January 15, 2025 and at least the amount set by 
rule in accordance with paragraph B-1 for containers picked up on or after January 15, 
2025.  The initiator of the deposit may reimburse the dealer or 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 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, 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 
and before September 1, 2023, at least 6¢ for containers picked up on or after 
September 1, 2023 and before January 15, 2025 and at least the amount set by rule in 
accordance with paragraph B-1 for containers picked up on or after January 15, 2025.  
The initiator of the deposit may reimburse the dealer or redemption center directly or 
indirectly through a contracted agent or through a party with which it has entered into 
a commingling agreement.
B-1.  On or before January 15, 2025 and biennially thereafter, the department shall 
adopt rules adjusting the applicable amount of the reimbursement of handling costs 
under paragraphs A and B by any percentage change in the United States Consumer 
Price Index, established by the federal Department of Labor, Bureau of Labor 
Statistics, from January 1st to December 31st of the previous year.  In determining the 
amount of any adjustment of the reimbursement under this paragraph, the department 
may also consider other cost-related factors.  Any change in the amount of the 
reimbursement of handling costs adopted by the department by rule in accordance with 
this paragraph may not take effect until 60 days following the date of final adoption of 
the rule.  Rules adopted pursuant to this paragraph are routine technical rules as defined 
in Title 5, chapter 375, subchapter 2-A.
Sec. 18.  38 MRSA §3106, sub-§8, as amended by PL 2019, c. 315, §19 and c. 526, 
§7, is repealed and the following enacted in its place:
8.  Obligation to pick up and recycle containers.  Beginning April 15, 2024, a 
designated pick-up entity has the obligation to ensure the pickup and recycling of all empty, 
unbroken and reasonably clean beverage containers subject to the requirements of this 
chapter from dealers and redemption centers, including from any locations where an 
account-based bulk processing program is in operation, at least once every 7 calendar days 
or in a manner that, except as provided in paragraph E, ensures a dealer or redemption 
center is not required to store more than 20,000 of such containers at any one time at a 
single location.  As used in this subsection, "designated pick-up entity" means, prior to 
January 15, 2025, a commingling group and, beginning January 15, 2025, the cooperative.  
Notwithstanding any provision of the subsection to the contrary, prior to January 15, 2025, 
in the case of a designated pick-up entity that is a commingling group, the commingling 
group's responsibilities under this subsection apply only to those beverage containers from 
the initiators of deposit that are members of that commingling group.
E.  A dealer or redemption center may be required to store more than 20,000 beverage 
containers at any one time at a single location if the dealer or redemption center 
receives payment from the designated pick-up entity for the deposits and handling fees 
due on those containers as well as a reasonable storage fee or if the dealer or redemption 
center enters into a written agreement with that entity or a pick-up agent of that entity, 
approved by the department, regarding bulk container storage. 
F.  If the designated pick-up entity fails to pick up beverage containers from a dealer 
or redemption center in accordance with the requirements of this subsection, then the 
dealer or redemption center may sell those containers to any person for fair market 
value and that designated pick-up entity shall pay to the dealer or redemption center 
the amount of the deposits and handling fees that would have been due on those 
containers and any other costs incurred by the dealer or redemption center in 
conducting the sale, subtracting from that total the amount realized by the dealer or 
redemption center in the sale of the containers.  
G.  At least 2 business days prior to initiating a sale of beverage containers under 
paragraph F, the dealer or redemption center shall notify the designated pick-up entity 
and the department of its intent to conduct such a sale and provide documentation 
verifying the number of containers to be sold.  After conducting such a sale, the dealer 
or redemption center shall provide the designated pick-up entity and the department 
with documentation verifying the amount realized in the sale of the beverage containers 
and any other costs associated with the sale.  
Sec. 19.  38 MRSA §3106, sub-§9, as amended by PL 2019, c. 526, §7, is further 
amended to read:
9.  Plastic bags; receptacles.  A dealer or redemption center has an obligation to pick 
up receptacles for glass beverage containers, dumpsters or plastic bags that are used by that 
dealer or redemption center to contain beverage containers.  Plastic bags used by a dealer 
or redemption center and the cost allocation of these bags must conform to rules adopted 
by the department concerning size and gauge. Beginning January 15, 2025, the cooperative 
shall provide to the dealer or redemption center, or reimburse the dealer or redemption 
center for the cost of, the receptacles, dumpsters or plastic bags used by the dealer or 
redemption center to contain redeemed beverage containers.
Sec. 20.  38 MRSA §3107, first ¶, as enacted by PL 2015, c. 166, §14, is amended 
to read:
Notwithstanding any other provision of this chapter to the contrary, 2 or more initiators 
of deposit may enter into a commingling agreement through which some or all of the 
beverage containers for which the initiators have initiated deposits may be commingled by 
dealers and operators of redemption centers as provided in this section. No later than April 
15, 2024, each initiator of deposit shall enter into a commingling agreement pursuant to 
subsection 1-A or 1-B.  If, by April 15, 2024, an initiator of deposit has not entered into a 
commingling agreement pursuant to subsection 1-A or 1-B, the initiator commits a 
violation of this chapter, is subject to penalties under section 3111 and, as long as the 
violation exists, is prohibited from selling or distributing in the State any beverage 
container subject to the requirements of this chapter, and a distributor or dealer may not 
sell or distribute in the State any such containers of the initiator and the department may 
remove from sale any such containers of the initiator.
Sec. 21.  38 MRSA §3107, 2nd ¶, as amended by PL 2019, c. 526, §8, is further 
amended to read:
An initiator of deposit that enters into a commingling agreement pursuant to this section 
shall permit any other initiator of deposit to become a party to that agreement on the same 
terms and conditions as the original agreement.  Once the initiator of deposit has established 
a qualified commingling agreement pursuant to the requirements of subsection 1‑A, the 
department shall allow additional brands of beverage containers from a different product 
group to be included in the commingling agreement if those additional brands are of like 
material to those containers already managed under the commingling agreement.
Sec. 22.  38 MRSA §3107, 3rd ¶, as enacted by PL 2019, c. 526, §8, is amended to 
read:
For the purposes of this chapter and notwithstanding any provision of this chapter to 
the contrary, the State, through the Department of Administrative and Financial Services, 
Bureau of Alcoholic Beverages and Lottery Operations, is deemed to be managing returned 
containers for which the State has initiated deposits in a commingling program pursuant to 
a qualified commingling agreement as long as the State allows a dealer or redemption 
center to commingle returned containers of like material, including, but not limited to, 
through use of an account-based bulk processing program.
Sec. 23.  38 MRSA §3107, sub-§1, as enacted by PL 2015, c.168, §14, is amended 
by enacting at the end a new first blocked paragraph to read:
This subsection does not apply to the commingling program described in subsection 3-B.
Sec. 24.  38 MRSA §3107, sub-§1-A, as enacted by PL 2019, c. 526, §8, is amended 
to read:
1-A.  Qualified commingling agreements.  The department shall determine that a 
commingling agreement is qualified for the purposes of this chapter if:
A.  Fifty percent or more of beverage containers of like product group, material and 
size for which the deposits are being initiated in the State are included in the 
commingling agreement; or
B.  The initiators of deposit included in the commingling agreement are initiators of 
deposit for beverage containers containing wine and each initiator of deposit sells no 
more than 100,000 gallons of wine or 500,000 beverage containers containing wine in 
a calendar year; or.
C.  The commingling agreement has been approved by the department pursuant to 
subsection 3‑A.
This subsection does not apply to the commingling program described in subsection 3-B.
Sec. 25.  38 MRSA §3107, sub-§1-B is enacted to read:
1-B.  Special commingling agreement.  The designated pick-up agent for initiators of 
deposit that are not members of a commingling group and that cannot in the aggregate 
satisfy the requirements for a qualified commingling agreement under subsection 1-A, 
paragraph A shall execute and submit to the department for approval and, notwithstanding 
any provision of this section to the contrary, the department may approve a special 
commingling agreement that, in accordance with applicable requirements of this section, 
provides for the commingling by dealers and redemption centers of the beverage containers 
for which those initiators have initiated deposits.  
A.  Once approved, the designated pick-up agent shall permit any initiator of deposit 
that is not a member of a commingling group to become a party to the special 
commingling agreement.
B.  The department shall adopt rules governing approval and administration of the 
special commingling agreement, which must include, but are not limited to, rules 
regarding the administration of the agreement, data and reporting requirements for 
initiators that are party to the agreement, beverage container sorting and auditing 
requirements and the process for addressing container count discrepancies and return 
of containers not covered by the agreement.  Rules adopted pursuant to this paragraph 
are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
This subsection does not apply to the commingling program described in subsection 3-B.
Sec. 26.  38 MRSA §3107, sub-§3-A, as amended by PL 2019, c. 526, §8, is 
repealed.
Sec. 27.  38 MRSA §3107, sub-§3-B is enacted to read:
3-B.  Commingling program operated by commingling cooperative.  Subject to the 
requirements of this subsection and notwithstanding any provision of this chapter to the 
contrary, by April 15, 2024, all commingling groups established under this section shall 
collectively establish a commingling cooperative to provide for the management of all 
beverage containers subject to the requirements of this chapter under a single commingling 
program, referred to in this subsection as "the program." 
A.  The cooperative must be established as a nonprofit organization exempt from 
taxation under the United States Internal Revenue Code of 1986, Section 501(c)(3).  
The cooperative must be governed by a board that represents the range of beverages 
and beverage container material types subject to the requirements of this chapter and 
that includes representatives of dealers, pick-up agents, recycling facilities, redemption 
centers that primarily sort containers manually and redemption centers that primarily 
sort containers using reverse vending machines or an account-based bulk processing 
program.  
B.  By July 15, 2024, the cooperative shall submit a plan for the operation of the 
program to the department for review and approval. The plan must include, but is not 
limited to:
(1)  The method by which the program will facilitate the transition from beverage 
container sorting at redemption centers by brand to sorting by material type and, 
for redemption centers that manually sort containers, by size within each material 
type.  The program may facilitate the negotiation of agreements with redemption 
centers to gather brand data through use of reverse vending machines, account-
based bulk processing programs or similar technology as long as the cost of such 
data collection is paid by the program; 
(2)  Standards to provide for fair apportionment of costs among the commingling 
groups included in the program, which may be based on:
(a)  The combined beverage container sales by the initiators of deposit that are 
members of each commingling group; or
(b)  The unit or brand counts generated by reverse vending machines or 
account-based bulk processing programs as long as the reverse vending 
machines or account-based bulk processing programs are subject to periodic 
3rd-party audits on a schedule approved by the department and with the costs 
of those audits paid by the program;  
(3)  A method for determining the rate of redemption for beverage containers, 
expressed as a percentage of the beverage containers redeemed that are available 
for redemption; the variation in the rate of redemption between beverage type or 
beverage container type; and the difference in the rate of redemption by county or 
other geographic division of the State.  The method for determining the redemption 
rate may not include in its calculation any unredeemed beverage containers 
collected or processed by municipal or other recycling programs.  The program 
must ensure that a single redemption rate, determined by the method specified in 
the plan, is used by all commingling groups and initiators of deposit to determine 
cost apportionment pursuant to subparagraph (2);
(4)  A budget for the program that includes, but is not limited to, identification of 
any start-up costs for the program that will not be ongoing, including, but not 
limited to, the costs of the study described in paragraph F, and a description of the 
method by which the cooperative will determine and collect payments from 
commingling groups to cover the program's start-up costs;
(5)  The method by which the cooperative will collect deposits from initiators of 
deposit for nonrefillable beverage containers and handling fees for redeemed 
containers, whether directly from the initiator of deposit or through the 
commingling group of which the initiator of deposit is a member.  The program 
must ensure that an initiator of deposit is not required to pay any handling fees for 
its beverage containers that exceeds the applicable redemption rate for those 
containers as calculated pursuant to subparagraph (3);
(6)  A description of how the cooperative intends to maintain and expend 
unclaimed beverage container deposits in accordance with section 3108-A;
(7)  A description of how the cooperative will provide the department with a 
proposed beverage container pick-up schedule for each redemption center that is 
designed to ensure that the pick-up requirements of section 3106, subsection 8 are 
met and will notify the department of any contractual agreements regarding 
container pickup between the cooperative and a redemption center as provided in 
section 3106, subsection 8.  
(a)  The program must ensure that pick-up schedules are designed to reduce 
transportation distances and minimize costs but must allow each commingling 
group to contract with a pick-up agent to provide for beverage container pickup 
of the commingling group's equivalent container material.
(b)  The program must ensure that, if the cooperative is informed by a 
commingling group that a pick-up schedule for a redemption center cannot be 
met, which would result in a violation of section 3106, subsection 8, the 
cooperative notifies the department in writing prior to the occurrence of such 
a violation;
(8)  Information on how the cooperative will be responsible for and ensure payment 
to a dealer or redemption center within 10 calendar days of any beverage container 
pickup of all applicable deposits and handling fees for the beverage containers 
picked up from the dealer or redemption center; an additional processing fee of 1¢ 
for each container processed using a reverse vending machine; the applicable costs 
of receptacles, dumpsters and plastic bags provided to the dealer or redemption 
center in accordance with section 3106, subsection 9; and any contractually agreed-
upon payments to the dealer or redemption center for data collection in accordance 
with subparagraph (1);
(9)  Information on how the cooperative will ensure that each commingling group 
and each initiator of deposit that is a member of the commingling group maintains 
ownership over the commingling group's and initiator of deposit's share of the 
beverage containers redeemed, collected and processed for recycling under the 
program;
(10)  Information on how the cooperative will calculate the base rates offered for 
the processing of beverage containers using an account-based bulk processing 
program or pick-up agents;
(11)  A certification that the cooperative will not share, except with the department 
as necessary, information provided by a commingling group or initiator of deposit 
that is proprietary information and that is identified by the commingling group or 
initiator of deposit as proprietary information.  The certification must include a 
description of the methods by which the cooperative intends to ensure the 
confidentiality of that information;
(12)  Information on how the cooperative will maintain a publicly accessible 
website regarding the program that includes, at a minimum, the following:
(a)  A searchable list of all initiators of deposit and beverage container label 
registrations, including for beverages sold directly to consumers in the State, 
in a manner that allows redemption centers, dealers and consumers to obtain 
up-to-date information regarding whether a particular beverage is authorized 
for sale and redemption in the State;  
(b)  A form that may be submitted electronically through which a person may 
notify the cooperative of unregistered beverage container labels in accordance 
with section 3105, subsection 5-A;
(c)  A search function through which consumers can identify nearby dealers or 
redemption centers offering redemption services based on information made 
available to the cooperative by the department; and
(d) The base rates for the processing of beverage containers by container type 
as determined in accordance with subparagraph (10);
(13)  A proposed timeline for implementation of the program plan if approved 
designed to ensure implementation of the plan on or before January 15, 2025 and 
a description of how the cooperative will notify commingling groups, initiators of 
deposit, dealers, distributors, pick-up agents and other affected entities regarding 
program implementation, which must include, but is not limited to, posting of 
information relating to program implementation on the website described in 
subparagraph (12); and
(14)  Any other information required by the department.
C.  Within 120 days of receipt of a plan submitted by the cooperative under paragraph 
B, the department shall review the plan and approve the plan, approve the plan with 
conditions or reject the plan.  Prior to determining whether to approve or reject a plan, 
the department shall hold a public hearing on the plan.  The department shall notify the 
cooperative in writing of its determination and, if the plan is approved with conditions 
or rejected, shall include in the notification a description of the basis for the conditions 
or rejection.  
(1)  If the cooperative's plan is rejected, it may submit a revised plan to the 
department within 60 days of receiving the notice of rejection.  The department 
may approve the revised plan as submitted or approve the revised plan subject to 
the implementation of specific changes required by the department.
(2)  If the cooperative's plan is approved in accordance with this paragraph, the 
cooperative shall implement the plan on or before January 15, 2025 in accordance 
with the timeline for implementation described in paragraph B, subparagraph (13), 
subject to any changes or conditions imposed by the department.  If the cooperative 
fails to implement an approved plan on or before January 15, 2025, the initiators 
of deposit that are members of each of the commingling groups included in the 
cooperative are deemed to be in violation of this chapter and are subject to penalties 
pursuant to section 3111.
D.  If the department determines that the program implemented by the cooperative 
pursuant to a plan approved under paragraph C has failed to make adequate progress 
toward fulfilling the requirements of the plan, the department shall notify the 
cooperative in writing of its determination and may direct the cooperative to implement 
specific changes to the program within 30 days of the date of the notification.  
E.  On or before April 1, 2026, and annually thereafter, the cooperative shall submit to 
the department and make available on its publicly accessible website a report that 
includes, but is not limited to:
(1)  Contact information for the cooperative and a list of all initiators of deposit 
and beverage container label registrations, including for beverages sold directly to 
consumers in the State;
(2)  Information on the rates of redemption for beverage containers calculated in 
accordance with plan requirements under paragraph B, subparagraph (3).  The 
report must include information regarding the total number of beverage containers 
subject to the requirements of this chapter sold or distributed in the State during 
the prior calendar year by the members of each commingling group, aggregated 
within each commingling group to provide only a total, aggregated number for 
each commingling group.  If the cooperative determines that the overall statewide 
redemption rate for beverage containers is less than 85%, the report must include 
recommendations for increases in the deposit and refund value for beverage 
containers;
(3)  Detailed information on the expenditure of unclaimed deposit funds in the prior 
calendar year, including a description of any activities funded through such 
expenditures in accordance with section 3108-A and the progress made through 
such expenditures to increase the use of redemption technologies, increase the rate 
of beverage container redemption, support container recycling and support the use 
of refillable and reusable containers;
(4)  A description of the education and outreach efforts implemented under the 
program in the prior calendar year to encourage participation in the beverage 
container redemption program, reduce instances of fraud in redemption and 
educate businesses and consumers on the value and safety of refillable beverage 
containers.  The report must include the results of an assessment, completed by an 
independent 3rd party, of the effectiveness of the efforts; 
(5)  Any recommendations for changes to the program to improve the convenience 
of the collection system under the program, consumer education or program 
evaluation and any goals for supporting the use of refillable and reusable 
containers;
(6)  A financial report on the program, as determined through a 3rd-party financial 
audit, that identifies the total cost of implementing the program and the specific 
administration, collection, transportation, disposition and communication costs for 
the program and an anticipated budget for the subsequent program year; and
(7)  Any other information required by the department.
F.  Within 90 days of receiving approval of a program plan from the department under 
paragraph C, the cooperative, in consultation with the department, shall contract with 
an independent 3rd party to conduct a study: examining operating costs for redemption 
centers of a variety of sizes, in a variety of geographical locations and using a variety 
of redemption technologies; analyzing the effects that eliminating brand sorting of 
beverage containers may have on transportation costs and redemption center operating 
costs, including, but not limited to, labor and utilities costs; recommending a handling 
fee schedule and payment schedule designed to facilitate a stable and sustainable 
redemption system; and recommending other recycling-related services that may be 
provided at redemption centers to support statewide recycling efforts and diversify the 
redemption center business model.  
(1)  In consultation with the department, the cooperative shall ensure that the study 
contract specifies the scope of the study and provides for publication of an interim 
progress report or reports and a final report.  All costs associated with the study 
must be paid by the cooperative.  
(2)  The cooperative shall provide any interim progress reports and the final report 
under subparagraph (1) to the department and, after receipt of the final report, the 
department shall provide a copy of the final report, along with any additional 
comments or recommendations of the department, to the joint standing committee 
of the Legislature having jurisdiction over environment and natural resources 
matters.  After reviewing the report and the department's additional comments or 
recommendations, if any, the committee may report out legislation relating to the 
report or to the department's comments or recommendations. 
G.  The cooperative shall pay to the department a reasonable annual fee established by 
the department, not to exceed $400,000, as provided in this paragraph.
(1)  On or before January 15, 2025, the cooperative shall pay to the department the 
annual fee under this paragraph to cover the department's costs for review of the 
program plan submitted by the cooperative pursuant to paragraph B and the 
department's costs prior to program plan implementation in its oversight of the 
development and implementation of the commingling program under this 
subsection.  The department may require the cooperative to pay a portion of the fee 
required under this subparagraph at the time the cooperative submits a program 
plan for review and approval pursuant to paragraph B to cover the department's 
cost for review of the program plan.  
(2)  On or before April 1, 2026, and annually thereafter, the cooperative shall pay 
to the department the annual fee under this paragraph to cover the department's 
costs for review of the cooperative's annual report under paragraph E and the 
department's costs in the prior calendar year for its oversight, administration and 
enforcement of the commingling program implemented under this subsection. The 
cooperative shall pay the fee required pursuant to this subparagraph at the time it 
submits the annual report required pursuant to paragraph E.
H. Reports submitted to the department under this subsection must be made available 
to the public on the department's publicly accessible website, except that proprietary 
information submitted to the department in a plan, in an amendment to a plan or 
pursuant to reporting requirements of this subsection that is identified by the submitter 
as proprietary information is confidential and must be handled by the department in the 
same manner as confidential information is handled under section 1310‑B.  
I.  Beginning January 15, 2025, an initiator of deposit that is not in compliance with all 
applicable requirements of the single commingling program implemented pursuant to 
this subsection:
(1)  Commits a violation of this chapter and is subject to penalties pursuant to 
section 3111; and
(2) Is prohibited from selling or distributing in the State any beverage container 
subject to the requirements of this chapter as long as the violation exists. A 
distributor or dealer may not sell or distribute in the State any such containers of 
the initiator of deposit, and the department may remove from sale any such 
containers of the initiator of deposit.
The department may adopt rules as necessary for the implementation of this subsection and 
the oversight of the cooperative.  Rules adopted pursuant to this subsection are routine 
technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 28.  38 MRSA §3107, sub-§4, as enacted by PL 2015, c. 166, §4, is amended 
by enacting at the end a new first blocked paragraph to read:
This subsection does not apply to the commingling program described in subsection 3-B.
Sec. 29.  38 MRSA §3107, sub-§5, as enacted by PL 2019, c. 526, §8 is amended 
by enacting at the end a new first blocked paragraph to read:
This subsection does not apply to the commingling program described in subsection 3-B.
Sec. 30.  38 MRSA §3108, as enacted by PL 2015, c. 166, §14, is repealed.
Sec. 31.  38 MRSA §3108-A is enacted to read:
§3108-A.  Unclaimed deposits
This section governs unclaimed beverage container deposits.
1.  Commingling group; unclaimed deposits.  Prior to January 15, 2025, unclaimed 
deposits for nonrefillable beverage containers that are subject to a commingling agreement 
pursuant to section 3107, subsection 1-A or 1-B are the property of the members of the 
commingling group administering the agreement.  The commingling group shall determine 
the disposition and use of such unclaimed deposits. 
2.  Commingling cooperative; unclaimed deposits.  Beginning January 15, 2025, 
unclaimed deposits for nonrefillable beverage containers subject to the requirements of this 
chapter are the property of the cooperative and must be deposited and maintained by the 
cooperative in a separate account and expended only in accordance with this subsection.
A.  Except as provided in paragraph B, the cooperative may not expend unclaimed 
deposit amounts to offset costs incurred by the program, including, but not limited to, 
the costs of beverage container pickups; payment to dealers or redemption centers of 
required handling fees under section 3106, subsection 7 of up to 6¢ per beverage 
container; and any legal fees or any fines incurred by the cooperative, a commingling 
group or an initiator of deposit.
B.  The cooperative may expend unclaimed deposit amounts for the following 
purposes:
(1)  Payment of the annual fee to the department as provided in section 3107, 
subsection 3-B, paragraph G;
(2)  Reasonable costs of administering the program under section 3107, subsection 
3-B, including, but not limited to, staffing costs and office operating costs;
(3)  Costs of educational materials and signage provided to dealers and redemption 
centers regarding redemption instructions and other information, including 
information regarding the fraudulent redemption of beverage containers in 
accordance with section 3106, subsection 10;
(4)  Reimbursement to dealers and redemption centers of the costs of receptacles, 
dumpsters and plastic bags pursuant to section 3106, subsection 9;
(5)  Payments to persons notifying the cooperative of unregistered labels in 
accordance with section 3105, subsection 5-A; 
(6)  Contractually obligated payments to redemption centers for the collection of 
brand data in accordance with section 3107, subsection 3-B, paragraph B, 
subparagraph (1);
(7)  Payments to dealers or redemption centers of required handling fees under 
section 3106, subsection 7 in excess of 6¢ per beverage container and payment to 
dealers or redemption centers of the required 1¢ per container processing fee for 
containers processed using a reverse vending machine as provided in section 3107, 
subsection 3-B, paragraph B, subparagraph (8); and
(8)  Payments to support activities of the cooperative or others designed to increase 
the use of reusable and refillable beverage containers in the State, including, but 
not limited to:
(a)  Completion of a market analysis for a refillable beverage container 
program in the State to determine feasible goals for reuse;
(b)  Development and implementation of, including the purchase of necessary 
materials and supplies for, pilot projects to determine options for financially 
viable models for refillable beverage container washing techniques, including, 
but not limited to, mobile washing stations, shipment of containers to washing 
facilities outside the State, in-house washing stations and establishment of a 
fixed washing facility in the State;
(c)  Identification of container, adhesive and label options for refillable 
beverage containers capable of being used by manufacturers of different types 
of beverages; and
(d)  Outreach and education to manufacturers, retailers, restaurants and 
consumers regarding the financial and environmental benefits of refillable 
beverage containers and regarding the processes and methods available for 
ensuring such containers may be safely reused.
C.  On or before April 1, 2026, and annually thereafter, the cooperative shall:
(1) Calculate the total amount of deposits determined to be unclaimed during the 
prior calendar year and the total amount of such deposits expended by the 
cooperative in accordance with paragraph B during the prior calendar year; and
(2)  If the total amount of unclaimed deposits in the prior calendar year exceeds the 
total amount of such deposits expended by the cooperative in the prior calendar 
year, as determined under subparagraph (1), the cooperative shall turn over to the 
State Tax Assessor by April 1st that excess amount, which must be deposited in 
the General Fund.
The department shall adopt rules as necessary to implement this section.
Sec. 32.  38 MRSA §3109, sub-§5-A, as enacted by PL 2019, c. 526, §9, is amended 
to read:
5-A.  Beverage container handling.  A redemption center shall tender to pick-up 
agents only beverage containers sold in the State that are placed in shells, shipping cartons, 
bags or other receptacles in a manner that facilitates accurate eligible beverage container 
unit counts or, in the case of containers processing through a reverse vending machine or 
account-based bulk processing program, accurate data regarding the brand, material type 
and the count or the weight of the eligible beverage containers.
Sec. 33.  38 MRSA §3109, sub-§5-B, as amended by PL 2019, c. 526, §9, is further 
amended to read:
5-B.  Beverage container auditing.  A redemption center shall prepare beverage 
containers for pickup by pick‑up agents, which are subject to audit pursuant to rules 
adopted by the department in accordance with this subsection.
A.  A redemption center shall label each shell, shipping carton, bag or other receptacle 
with the business name, initials, redemption center license number or other unique 
identifying mark and with the number of beverage containers contained in each shell, 
shipping carton, bag or other receptacle or, in the case of containers processed through 
a reverse vending machine or account-based bulk processing program, information 
regarding the material type and the count or weight of the beverage containers 
contained in the shell, shipping carton, bag or other receptacle.
B.  The department may audit shells, shipping cartons, bags or other receptacles that 
have been prepared for pickup by a redemption center.
(1)  An audit may be conducted by the department on site at the redemption center 
or off site at a different location.  Off-site audits may involve the use of bulk 
redemption technology.
(2)  An audit must be conducted on a minimum of 1,000 beverage containers or, in 
the case of containers processing through a reverse vending machine or account-
based bulk processing program, on an equivalent amount by weight of the same 
material type.
(3)  If the results of an audit vary from the beverage container count labeled in 
accordance with information included on the label of the shell, shipping carton, 
bag or other receptacle required by paragraph A, the department shall, in the case 
of an on-site audit, require the redemption center to add or remove containers or 
an equivalent weight of the same material type to address the variation in the results 
of the audit or, in the case of an off-site audit, require the redemption center to 
accept payment from the initiator of deposit or pick-up agent adjusted in 
accordance with the variation in the results of the audit.
(4)  The department may deny an application for approval of a redemption center 
under subsection 2 if the redemption center, pursuant to audits conducted by the 
department in accordance with this subsection, has repeatedly prepared for pickup 
shells, shipping cartons, bags or other receptacles containing less than 97% of the 
beverage containers or equivalent weight of the same material type that such shells, 
shipping cartons, bags or other receptacles are labeled as containing.
Sec. 34.  38 MRSA §3113, sub-§3, as amended by PL 2019, c. 526, §10, is further 
amended by amending the first blocked paragraph to read:
For a municipality with a population of no more than 5,000, the department may license 
redemption centers in accordance with rules adopted by the department. Notwithstanding 
the population requirements of this subsection, the department may grant a license to a 
redemption center if the redemption center is proposed to be located within 10 miles of a 
dealer, as measured along public roadways, and there are no other redemption centers 
located within 10 miles of that dealer.
Sec. 35.  38 MRSA §3114, sub-§2, as enacted by PL 2015, c. 166, §14, is amended 
to read:
2.  Sources of money.  The fund consists of the following:
A.  Fees for issuance of licenses and license renewals under section 3113;
B.  Fees for registration of beverage container labels and registration renewals under 
section 3105, subsection 5; and.
This paragraph is repealed January 15, 2025;
B-1.  The annual fee paid by the commingling cooperative pursuant to section 3107, 
subsection 3-B, paragraph G; and
C.  All other money appropriated or allocated for inclusion in the fund.
Sec. 36.  38 MRSA §3115, sub-§1, as enacted by PL 2015, c. 166, §14, is repealed.
Sec. 37.  38 MRSA §3115, sub-§3 is enacted to read:
3.  Report.  On or before February 15, 2024, and annually thereafter, the department 
shall report to the joint standing committee of the Legislature having jurisdiction over 
environment and natural resources matters on the status of the beverage container 
redemption program implemented under this chapter.  The report must include any 
recommendations, including draft legislation as necessary, for amendments to this chapter 
necessary for its administration or to better fulfill the purpose described under section 3101.  
After reviewing the report, the committee may report out legislation relating to the report.  
The report under this subsection may be included in the report required pursuant to section 
1772, subsection 1.
Sec. 38.  38 MRSA §3119, as enacted by PL 2019, c. 526, §14, is repealed.
Sec. 39.  Department of Environmental Protection; beverage container 
redemption program report.  The Department of Environmental Protection, in the 
report required by the Maine Revised Statutes, Title 38, section 3115, subsection 3 that is 
due February 15, 2024, shall include additional recommendations, including proposed 
legislation, for any necessary changes to the laws governing the beverage container 
redemption program to ensure the timely and successful implementation of the special 
commingling agreement pursuant to Title 38, section 3107, subsection 1-B and the single 
commingling program operated by a commingling cooperative pursuant to Title 38, section 
3107, subsection 3-B.  The report may include additional recommendations for changes to 
the laws governing the beverage container redemption program determined necessary by 
the department.
Sec. 40.  Effective dates. That section of this Act that enacts the Maine Revised 
Statutes, Title 38, section 3108-A and those sections of this Act that amend Title 36, section 
112, subsection 8; Title 38, section 3102, subsection 16-A; Title 38, section 3106, 
subsection 5; and Title 38, section 3106, subsection 6 and that section of this Act that 
repeals Title 38, section 3108 and that section of this Act that repeals and replaces Title 38, 
section 3106, subsection 8 take effect April 15, 2024. Those sections of this Act that repeal 
Title 38, section 3115, subsection 1 and Title 38, section 3119 take effect January 15, 2025.
SUMMARY
This bill makes multiple changes to the beverage container redemption laws, including 
the following.
1.  It increases the amount of the reimbursement of beverage container handling costs 
paid by an initiator of deposit to a dealer or redemption center from 4 1/2¢ per container to 
6¢ per container beginning September 1, 2023.
2.  It requires the Department of Environmental Protection, on or before January 15, 
2025, and biennially thereafter, to adopt rules adjusting the applicable amount of the 
reimbursement of beverage container handling costs by any percentage change in the 
Consumer Price Index from January 1st to December 31st of the previous year. 
3.  It requires all initiators of deposit to enter into a commingling agreement no later 
than April 15, 2024 and authorizes the approval of a special commingling agreement for 
initiators of deposit that are not members of a commingling group and that cannot in the 
aggregate satisfy the requirements for a qualified commingling agreement under current 
law.
4.  It requires all established commingling groups by April 15, 2024 to establish a 
nonprofit commingling cooperative to provide for the management of beverage containers 
under a single commingling program.  By July 15, 2024, the cooperative must submit a 
plan for the operation of the commingling program to the department for review and 
approval, which the department must complete within 120 days of receipt.  The plan must 
be designed to provide for implementation of the commingling program on or before 
January 15, 2025.  Among other duties, this commingling program is required to use 
unclaimed container deposits to make a variety of expenditures to support the functions of 
the program and the beverage container redemption system.
5.  It specifies that, on or before February 15, 2024, and annually thereafter, the 
department must report to the joint standing committee of the Legislature having 
jurisdiction over environment and natural resources matters on the status of the beverage 
container redemption program, including any recommendations for necessary amendments 
to the beverage container redemption laws.  For the report due February 15, 2024, it 
requires the department to include recommendations for amendments to the laws necessary 
to ensure the timely and successful implementation of the special commingling agreement 
and the single commingling program operated by a commingling cooperative.