An Act to Amend the Returnable Beverage Container Program
Maine Legislature, Session 131, LD 1910
Committee: Environment and Natural Resources
Sponsors: CROCKETT, BRIDGEO, CAMPBELL, DUCHARME, GRAHAM, PARRY, PERRY
Amends: 38 MRSA §3102, 38 MRSA §3103, 38 MRSA §3105, 38 MRSA §3106, 38 MRSA §3107, 38 MRSA §3107-A, 38 MRSA §3108, 38 MRSA §3108-A, 38 MRSA §3109, 38 MRSA §3109-A, 38 MRSA §3113, 38 MRSA §3114, 38 MRSA §3116, 38 MRSA §3119

Legislative Document
No. 1910
H.P. 1226
House of Representatives, May 9, 2023
An Act to Amend the Returnable Beverage Container Program
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative CROCKETT of Portland.
Cosponsored by Representatives: BRIDGEO of Augusta, CAMPBELL of Orrington, 
DUCHARME of Madison, GRAHAM of North Yarmouth, PARRY of Arundel, PERRY of 
Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  38 MRSA §3102, sub-§2-A is enacted to read:
2-A.  Bag drop program.  "Bag drop program" means a recycling program that allows 
a person to drop off beverage containers in a bag or other receptacle to receive a deposit or 
script for refunds asynchronously and meets the requirements of section 3109-A.
Sec. 2.  38 MRSA §3102, sub-§3-A is enacted to read:
3-A.  Commingling group.  "Commingling group" means a group of initiators of 
deposit or distributors subject to a commingling agreement.
Sec. 3.  38 MRSA §3102, sub-§12-A is enacted to read:
12-A.  Maine Commingling Cooperative or cooperative.  "Maine Commingling 
Cooperative" or "cooperative" means the entity established in section 3107-A.
Sec. 4.  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 that receives 
redeemed beverage containers from a redemption center and transports those containers for 
recycling.
Sec. 5.  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 uses a laser scanner and microprocessor to accurately recognize the universal 
product code on each beverage containers container 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. 6.  38 MRSA §3103, sub-§2, as enacted by PL 2015, c. 166, §14, is amended 
to read:
2.  Nonrefillable containers; exclusive distributorships.  For nonrefillable beverage 
containers, except wine and spirits containers, sold through geographically exclusive 
distributorships, the distributor shall determine and initiate the deposit and refund value 
according to the type, kind and size of the beverage container.  The the deposit and refund 
value may not be less than is 5¢.
Sec. 7.  38 MRSA §3103, sub-§3, as enacted by PL 2015, c. 166, §14, is repealed.
Sec. 8.  38 MRSA §3103, sub-§4, as amended by PL 2017, c. 140, §1 and affected 
by c. 140, §3, is further amended to read:
4.  Wine and spirits containers.  For wine and spirits containers of 50 500 milliliters 
or less, the refund value may not be more than is 5¢.  For wine and spirits containers of 
greater than 50 500 milliliters, the refund value may not be less than is 15¢.
Sec. 9.  38 MRSA §3105, as amended by PL 2019, c. 526, §6, is further amended to 
read:
§3105.  Labels; stamps; brand names
1.  Labels.  Except as provided under subsections 2 and 4 and 4-A, the 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.  The refund value may not be indicated on the bottom of the container.
2.  Labels; nonrefillable containers; nonexclusive distributorships.  With respect to 
nonrefillable beverage containers the deposits for which are initiated pursuant to section 
3103, subsection 3, the refund value 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 permanently embossing or permanently stamping the beverage 
containers, except in instances when the initiator of the 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.
3.  Labels; nonrefillable containers; exclusive distributorships.  Notwithstanding 
subsection 1 and with respect to nonrefillable beverage containers, for the deposits that are 
initiated pursuant to section 3103, subsection 2, the refund value and the word "Maine" or 
the abbreviation "ME" may be clearly indicated on refundable beverage containers sold or 
offered for sale by a dealer in this State by use of stickers or similar devices if those 
containers are not otherwise marked in accordance with subsection 1.  A redemption center 
shall accept containers identified by stickers in accordance with this subsection or by 
embossing or stamping in accordance with subsection 1.
4.  Brand name Refillable glass 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.
4-A.  Permission of department.  A refundable beverage container sold or offered for 
sale by a dealer in this State is not required to comply with subsection 1 in instances when 
the initiator of the deposit has specific permission from the department to use stickers or 
similar devices.
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 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 
commingling group to which the initiator of deposit belongs.  The department may charge 
a fee for registration and registration renewals under this subsection.  The department shall 
collect data relating to the registrations required by this subsection. The department shall 
provide that data to the Maine Commingling Cooperative.
6.  Removal of product.  A product that is sold or distributed in the State that is not in 
compliance with the initiator of deposit or the labeling registration requirements established 
in this section or the reporting requirements under section 3107-A, subsection 3 may be 
removed from sale by the department.
Sec. 10.  38 MRSA §3106, sub-§5, as amended by PL 2019, c. 526, §7, is further 
amended to read:
5.  Distributor  Commingling group acceptance.  A distributor commingling group 
or its pick-up 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 bag drop 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. 11.  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 pick-up 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 bag drop 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 the 
commingling group to which a distributor or initiator of deposit belongs and a dealer or 
redemption center and does not relieve the commingling group to which a distributor or 
initiator of deposit belongs 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 bag drop 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. 12.  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 commingling group to which an initiator of deposit 
belongs 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 at 
least 5¢ for containers picked up on or after January 1, 2024.  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.  
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.
Sec. 13.  38 MRSA §3106, sub-§8, as amended by PL 2019, c. 315, §19 and c. 526, 
§7, is further amended to read:
8.  Obligation to pick up and recycle containers.  The obligation to pick up and 
recycle beverage containers subject to this chapter is determined as follows.
A.  A distributor that initiates the deposit under section 3103, subsection 2 or 4 The 
Maine Commingling Cooperative has the obligation to pick up and recycle any empty, 
unbroken and reasonably clean beverage containers of the particular kind, size and 
brand sold by the distributor from dealers to whom that distributor has sold those 
beverages and from licensed redemption centers every 15 days.  A distributor that, 
within this State, sells beverages under a particular label exclusively to one dealer, 
which dealer offers those labeled beverages for sale at retail exclusively at the dealer's 
establishment, shall pick up any empty, unbroken and reasonably clean beverage 
containers of the kind, size and brand sold by the distributor to the dealer only from 
those licensed redemption centers that are located within 25 miles from the dealer, as 
measured along public roadways.  A dealer that manufactures its own beverages for 
exclusive sale by that dealer at retail has the obligation of a distributor under this 
section.  The department may establish by rule, in accordance with the Maine 
Administrative Procedure Act, criteria prescribing the manner in which distributors 
shall fulfill the obligations imposed by this paragraph.  The rules may establish a 
minimum number or value of containers below which a distributor is not required to 
respond to a request to pick up empty containers.  Any rules adopted under this 
paragraph must allocate the burdens associated with the handling, storage, 
transportation and recycling of empty containers to prevent unreasonable financial or 
other hardship. The Maine Commingling Cooperative has the obligation to make an 
additional pickup when a dealer or a redemption center has collected 50,000 beverage 
containers. The obligation of the Maine Commingling Cooperative or commingling 
group to which an initiator of deposit belongs under this subsection may be fulfilled 
through a pick-up agent or by the cooperative or the commingling group.
B.  The initiator of the deposit under section 3103, subsection 3 has the obligation to 
pick up and recycle any empty, unbroken and reasonably clean beverage containers of 
the particular kind, size and brand sold by the initiator from dealers to whom a 
distributor has sold those beverages and from licensed redemption centers.  The 
obligation may be fulfilled by the initiator directly or indirectly through a contracted 
agent.
C.  An initiator of the deposit under section 3103, subsection 2, 3 or 4 has the obligation 
to pick up and recycle any empty, unbroken and reasonably clean beverage containers 
that are commingled pursuant to a commingling agreement along with any beverage 
containers that the initiator is otherwise obligated to pick up and recycle pursuant to 
paragraphs A and B.
D.  The initiator of deposit or initiators of deposit who are members of a commingling 
agreement have the obligation under this subsection to pick up and recycle empty, 
unbroken and reasonably clean beverage containers of the particular kind, size and 
brand sold by the initiator from dealers to whom a distributor has sold those beverages 
and from licensed redemption centers every 15 days.  The initiator of deposit or 
initiators of deposit who are members of a commingling agreement have the obligation 
to make additional pickups when a redemption center has collected 10,000 beverage 
containers from that initiator of deposit or from the initiators of deposit who are 
members of a commingling agreement.
The obligations of the initiator of the deposit under this subsection may be fulfilled by the 
initiator directly or through a party with which it has entered into a commingling 
agreement.  A contracted agent hired to pick up beverage containers for one or more 
initiators of deposit is deemed to have made a pickup at a redemption center for those 
initiators of deposit when it picks up beverage containers belonging to those initiators of 
deposit.
Sec. 14.  38 MRSA §3107, as amended by PL 2019, c. 526, §8, is further amended 
to read:
§3107.  Commingling of beverage containers
Notwithstanding any other provision of this chapter to the contrary, 2 or more initiators 
An initiator of deposit may shall enter into a commingling agreement through which some 
or all of the beverage containers for which the initiators have initiator has initiated deposits 
may be commingled by dealers and operators of redemption centers as provided in this 
section.
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.
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 group 
pursuant to a qualified commingling agreement as long as the State allows a dealer or 
redemption center to commingle returned containers of like material.
1.  Commingling requirement.  If initiators of deposit enter into a commingling 
agreement pursuant to this section, commingling Commingling of beverage containers 
must be by all containers of like product group, material and size. An initiator of deposit A 
commingling group required pursuant to section 3106, subsection 8 to pick up beverage 
containers subject to a commingling agreement also shall pick up all other beverage 
containers subject to the same agreement.  The initiator of deposit commingling group may 
not require beverage containers that are subject to a commingling agreement to be sorted 
separately by brand by a dealer or redemption center.
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;.
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.
2.  Commingling of like materials.  For purposes of this section, containers are 
considered to be of like materials if made up of one of the following:
A.  Plastic;
B.  Aluminum;
C.  Metal other than aluminum; and
D.  Glass.
3.  Commingling of like products.  For purposes of this section, like products are 
those that are made up of one of the following:
A.  Beer, ale or other beverage produced by fermenting malt, wine and wine coolers;
B.  Spirits;
C.  Soda;
D.  Noncarbonated water; and
E.  All other beverages.
3-A.  Commingling by 3rd party or stewardship organization agreements 
required.  Subject to the requirements of this subsection, an initiator of deposit may that 
is not in a commingling group shall enter into a commingling agreement for its beverage 
containers to be managed in a commingling program agreement operated by a 3rd party or 
by a stewardship organization as defined in section 1771, subsection 8‑A the Maine 
Commingling Cooperative.  The 3rd party or stewardship organization Maine 
Commingling Cooperative shall submit a plan for the operation of the up to 2 commingling 
program agreements to the department for review and approval as a qualified commingling 
agreement. The cooperative may designate agents to fulfill its obligation under this section. 
A commingling program agreement under this subsection must:
A.  Require Allow redemption centers to commingle all beverage containers of 
initiators of deposit included in the program by like material and size;
B.  Establish standards to provide for fair apportionment of costs among initiators of 
deposit included in the program group either on the basis of sales data or the count of 
containers redeemed or on the total weight of containers marketed in the State that is 
provided to the Maine Commingling Cooperative or the commingling group to which 
the initiator of deposit belongs.  These standards may provide for determination of the 
amount to be paid to a redemption center as based on the unit counts generated by a 
reverse vending machine or bag drop program, as long as the reverse vending machine 
or bag drop program is subject to periodic audits by the 3rd party or stewardship 
organization on a schedule approved by the department Maine Commingling 
Cooperative; and
C.  Require that, no later than the 20th day of the each month following the end of 
March, June, September and December, each initiator of deposit included in the 
program report to the 3rd party or stewardship organization operating the program 
commingling group to which it belongs regarding its sales of beverages into the State 
for the previous 3-month period by brand and by number of nonrefillable beverage 
containers sold by product size and material type as well as the average beverage 
container weight by material type and size month according to terms set forth by the 
Maine Commingling Cooperative .  The 3rd party or stewardship organization Maine 
Commingling Cooperative and the commingling group to which the initiator of deposit 
belongs shall assign financial responsibility for the costs of operating the program 
agreement to the initiators of deposit included in the program agreement based on each 
initiator of deposit's sales data, proportion of the total weight of beverage containers 
marketed in the State by material type or by actual count of containers redeemed;.
The 3rd party or stewardship organization operating the program Maine Commingling 
Cooperative or the commingling group to which the initiator of deposit belongs may require 
an initiator of deposit included in the program a commingling agreement to provide 
financial assurance in the form of a deposit no greater than the initiator of deposit's 
anticipated costs for beverage container deposits, redemption center handling costs and any 
contractual fees for up to 4 months of anticipated sales in the State.  The 3rd party or 
stewardship organization shall Maine Commingling Cooperative may direct the 
commingling group to which the initiator of deposit belongs to retain any financial 
assurance required pursuant to this subsection in a separate account.  In the event that an 
initiator of deposit that has provided financial assurance in accordance with this subsection 
fails to reimburse the 3rd party or stewardship organization Maine Commingling 
Cooperative or the commingling group to which the initiator of deposit belongs for its 
incurred costs within 90 days of receipt of an invoice for such costs, the 3rd party or 
stewardship organization Maine Commingling Cooperative or the commingling group to 
which the initiator of deposit belongs  may cover those invoiced costs using the financial 
assurance provided by the initiator of deposit in accordance with this subsection.
The department may approve no more than 2 commingling agreements as qualified 
commingling agreements under this subsection and may not approve a qualified 
commingling agreement under this subsection for a period exceeding 10 years.
4.  Registration of commingling agreements.  Not later than 48 hours following the 
execution or amendment of a commingling agreement, including an amendment that adds 
an additional party to an existing agreement, the parties shall file a copy of the commingling 
agreement or amendment with the Maine Commingling Cooperative and the department.
5.  Reapproval of qualified commingling agreements.  This subsection provides for 
the reapproval of qualified commingling agreements that have been approved or 
reapproved by the department pursuant to this section.
A.  The initiators of deposit participating in a qualified commingling agreement under 
this section that was approved as a qualified commingling agreement prior to 
November 9, 2016 shall, no later than July 1, 2021, submit to the department an 
application for reapproval of that commingling agreement in a form prescribed by the 
department.
B.  The initiators of deposit participating in a qualified commingling agreement under 
this section that was approved or reapproved on or after November 9, 2016 must submit 
to the department an application for reapproval of that commingling agreement in a 
form prescribed by the department at least 6 months prior to the date of expiration of 
the department's prior approval or reapproval.
C.  After review of an application submitted under this subsection, the department may 
reapprove the commingling agreement for an additional period not to exceed 10 years.
6.  Removal of beverage; civil penalty.  The department shall remove from sale a 
beverage that is sold or distributed in the State by an initiator of deposit that is not in 
compliance with the reporting and payment requirements established under this chapter.  
An initiator of deposit that does not comply with the reporting and payment requirements 
established under this chapter is subject to a civil penalty of at least $1,000, payable to the 
department.  This penalty is recoverable in a civil action.
7.  Proprietary information.  Proprietary information submitted to the department in 
a report required under this section that is identified by the person submitting the 
information as proprietary information is confidential and must be handled by the 
department in the same manner as confidential information under section 1310‑B.
8.  Refillable containers exempt.  Refillable containers are exempt from the 
requirements of this section.
Sec. 15.  38 MRSA §3107-A is enacted to read:
§3107-A.  Maine Commingling Cooperative
The Maine Commingling Cooperative consists of commingling groups that filed a 
commingling agreement with the department pursuant to section 3107, subsection 4. The 
governing board of the cooperative must represent the range of beverages and beverage 
container materials in accordance with this section.
1.  Operating agreement.  The cooperative shall submit its operating agreement to the 
department.  The cooperative shall submit a new operating agreement one year prior to the 
expiration of an operating agreement.  The department shall approve the operating 
agreement for a period of up to 5 years if the agreement meets the requirements of this 
subsection.  An operating agreement must include a plan for the cooperative to:
A.  Allow dealers and redemption centers to sort all beverage containers by material 
type and size;
B.  Operate the redemption system to maintain a 75% redemption rate annually for 
deposit containers in accordance with section 3108-A;
C.  Reduce traffic and associated environmental impacts by optimizing collection 
routes so that only one commingling group or its pick-up agent serves each redemption 
site;
D.  Adopt policies and make investments to ensure that recovered materials are 
returned to their highest and best use with a priority of returning material to its members 
for use in new beverage containers;
E.  Engage with retailers to ensure a balance between retail redemption and 
alternatives;
F.  Support investment in the possible establishment of sites for the collection of 
beverage containers, other than as provided in section 3109, consistent with the 
redemption rate established in paragraph B;
G.  Provide an improved customer experience and streamline inefficient practices;
H.  Develop an education and outreach campaign to provide information about the 
redemption system and its rules and operations;
I.  Evaluate consumer awareness and satisfaction with the redemption system;
J.  Develop criteria to reduce or eliminate dealer responsibility for accepting empty 
beverage containers, including financial participation by the dealer in establishing 
redemption centers or other redemption options; and
K.  Prepare a plan for mitigating fraud in the system, including, but not limited to, 
reducing the incidence of selling beverage containers in the State without initiating 
deposits and redemption of out-of-state, ineligible or already redeemed containers.
2.  Compliance.  An initiator of deposit may not sell, offer for sale or distribute for 
sale in or into the State a beverage covered under this chapter unless the initiator of deposit 
has complied with all reporting requirements and financial obligations of this chapter and 
is a member in good standing of a commingling group that has submitted a commingling 
agreement to the department pursuant to section 3107, subsection 4.
3.  Report.  By June 1, 2025 and annually thereafter, the cooperative shall submit an 
annual report to the department, which must be posted on the publicly accessible websites 
of each member entity.  The annual report must include:
A.  Current lists of participating initiators of deposit and brands;
B.  Current redemption sites in operation;
C.  Progress made toward achieving the goals of the plan under subsection 1, including, 
but not limited to, the total number of beverage containers sold and redeemed by 
material type in the prior year; the amount of material collected and sold to end 
markets; and the disposition of material by market, to the extent that such information 
does not disclose proprietary information;
D.  Recommendations for changes to the cooperative; and
E.  Financial status of the cooperative, including, but not limited to, total refund values 
collected and refunded and total unclaimed deposits.
Sec. 16.  38 MRSA §3108, first ¶, as enacted by PL 2015, c. 166, §14, is amended 
to read:
The provisions of this section apply only to those beverage containers that are not 
subject to a commingling agreement pursuant to section 3107, subsection 1-A.
Sec. 17.  38 MRSA §3108, sub-§9 is enacted to read:
9.  Phase out.  A commingling group established under section 3107, subsection 3-A 
may keep 25% of the funds otherwise due under this section beginning in 2025, 50% of the 
funds otherwise due under this section beginning in 2026 and 75% of the funds otherwise 
due under this section beginning in 2027.
Sec. 18.  38 MRSA §3108, sub-§10 is enacted to read:
10.  Repeal.  This section is repealed January 1, 2028.
Sec. 19.  38 MRSA §3108-A is enacted to read:
§3108-A.  Unclaimed deposits of the Maine Commingling Cooperative
1.  Standard.  The cooperative shall achieve a 75% redemption rate annually for 
deposit containers pursuant to 3107-A, subsection 1, paragraph B.
2.  Penalty.  If the cooperative does not achieve the 75% redemption rate shall pay the 
applicable container deposit value times the number of containers representing the 
difference between the actual redemption rate and 75%. This penalty must be apportioned 
according to total sales data among all commingling groups within the cooperative.
3.  Waiver.  If the requirements in this section result in the Maine Commingling 
Cooperative paying a penalty, the department may waive the penalty due to circumstances 
beyond the control of the cooperative, such as anomalous market conditions or disruptions 
in access to redemption resulting from public health crises, natural disasters or similar 
events.
4.  Use of funds.  The department must deposit the penalty amount received under this 
section into the Beverage Container Enforcement Fund established in section 3114.
Sec. 20.  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 commingling 
groups and 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.
Sec. 21.  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 commingling groups and 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.
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 or the cooperative 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.
(3)  If the results of an audit vary from the beverage container count labeled in 
accordance with paragraph A, the department shall, in the case of an on-site audit, 
require the redemption center to add or remove containers 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 that such shells, shipping cartons, bags or other receptacles are 
labeled as containing.
Sec. 22.  38 MRSA §3109-A is enacted to read:
§3109-A.  Bag drop program
A bag drop program must meet the requirements of this section.  A bag drop program 
must:
1. Customer accounts.  Use a system of customer accounts and establish a mechanism 
to associate the returned beverage containers with a particular customer account;
2. Automated technology.  If using automated technology, use a scanning device and 
microprocesser that accurately recognizes each universal product code, determines which 
products are distributed by which distributor and accumulates the information regarding 
containers redeemed by product name, commodity type and package size; and
3. Department approval.  Receive approval by the department to ensure the program 
meets the requirements for payout accuracy, data connections and capture and reporting. 
Approved bag drop programs may take up to 10 days to deposit funds in the customer 
account, allowing for the flexibility of weekly pickup and approximately 3 days for the 
processing of the containers.
Sec. 23.  38 MRSA §3113, sub-§4, ¶B, as amended by PL 2019, c. 526, §10, is 
further amended to read:
B.  An entity that is a distributor licensed by or registered with the department or the 
cooperative need not comply with subsection 3; and
Sec. 24.  38 MRSA §3113, sub-§4, ¶C, as enacted by PL 2015, c. 166, §14, is 
amended to read:
C.  A reverse vending machine is not considered a redemption center for purposes of 
subsection 3 when it is located in a licensed redemption center; and.
Sec. 25.  38 MRSA §3113, sub-§4, ¶D, as enacted by PL 2015, c. 166, §14, is 
repealed.
Sec. 26.  38 MRSA §3114, sub-§2, ¶B, as enacted by PL 2015, c. 166, §14, is 
amended to read:
B.  Fees for registration of beverage container labels and registration renewals under 
section 3105, subsection 5; and
Sec. 27.  38 MRSA §3114, sub-§2, ¶B-1 is enacted to read:
B-1.  Funds received from penalties assessed pursuant to section 3108-A; and
Sec. 28.  38 MRSA §3116, sub-§2, as amended by PL 2019, c. 526, §12, is further 
amended to read:
2.  Aggrieved applicants.  An applicant aggrieved by a decision made by the 
department may appeal the decision to the board in accordance with section 344, subsection 
2‑A or by filing an appeal with the Superior Court and serving a copy of the appeal upon 
the department in accordance with the Maine Rules of Civil Procedure, Rule 80C.  The 
appeal to the board or to the Superior Court must be filed and served within 30 days of the 
mailing of the department's decision.
Sec. 29.  38 MRSA §3119, as enacted by PL 2019, c. 526, §14, is repealed.
Sec. 30.  Study.  At the time the Department of Environmental Protection approves 
the Maine Commingling Cooperative's operating agreement under the Maine Revised 
Statutes, Title 38, section 3107-A, subsection 1, the department and the cooperative shall 
jointly conduct a study funded by the cooperative to analyze the impact of eliminating 
manual brand sorting on affected redemption centers in the State. The study must be 
conducted by an independent 3rd party, contracted by the cooperative with the scope, 
progress reports and final report jointly agreed to by the department and the cooperative. 
The study must examine operating costs at redemption centers across the State representing 
various operating sizes and methods and recommend a handling fee schedule. The study 
must also make recommendations for other improvements to the oversight and 
management of redemption centers. The report must be presented to the Joint Standing 
Committee on Environment and Natural Resources upon its completion with 
recommendations for any legislative changes suggested in the study.
SUMMARY
This bill makes the following changes to the returnable beverage container law.
1.  It establishes the Maine Commingling Cooperative, an organization of registered 
commingling groups, that submits for approval by the Department of Environmental 
Protection an operating agreement that, among other requirements, includes a plan for the 
cooperative to sort beverage containers by material type and size and to operate the 
redemption system to achieve a 75% redemption rate.
2.  It establishes a bag drop program with requirements for tracking containers recycled 
through that program.
3.  It sets the deposit and refund value on nonrefillable beverage containers, except 
wine and spirits containers, at 5¢.
4.  It sets the refund value of wine and spirits containers of greater than 500 milliliters 
at 15¢ and provides that the refund value of wine and spirits containers of 500 milliliters or 
less is no more than 5¢.
5.  It authorizes the abbreviation "RV" to satisfy the requirement that the refund value 
be clearly indicated on every refundable beverage container.
6.  It eliminates the labeling requirements for nonrefillable containers by nonexclusive 
and exclusive distributorships.
7.  It provides an exception for labeling, embossing or stamping if the Department of 
Environmental Protection authorizes the use of stickers or similar devices.
8.  It amends the provisions of law related to the registration of labels, including 
requiring the Department of Environmental Protection to collect and report data on 
registrations to the Maine Commingling Cooperative.
9.  It provides that, instead of a distributor, a commingling group or its pick-up agent 
may not refuse to accept from any dealer or redemption center any empty, unbroken and 
reasonably clean beverage container through a reverse vending machine or bag drop 
program.
10.  It provides that, instead of a distributor, a commingling group or its pick-up agent 
has an obligation to preserve the recycling value of the container.
11.  It requires initiators of deposit to belong to commingling groups.
12.  It provides that, instead of an initiator of deposit, the commingling group to which 
an initiator of deposit belongs must reimburse the dealer or redemption center for the cost 
of handling beverage containers and provides that the amount is equal to at least 5¢ for 
containers picked up on or after January 1, 2024.
13.  It provides that, instead of a distributor or an initiator of deposit, the Maine 
Commingling Cooperative has an obligation to pick up and recycle any empty, unbroken 
and reasonably clean beverage containers from dealers and redemption centers every 15 
days and to make an additional pickup when the redemption center has collected 50,000 
beverage containers.
14.  It requires the commingling of beverage containers by like material and size and 
prohibits a commingling group from requiring that beverage containers be sorted by brand.
15.  It requires an initiator of deposit that is not in a commingling group to enter into 
an agreement with the Maine Commingling Cooperative.
16.  It requires the registration of a commingling agreement with the Maine 
Commingling Cooperative.
17.  It removes the provisions of law requiring reapproval of commingling agreements.
18.  It authorizes enforcement by the Department of Environmental Protection for an 
initiator of deposit that is not in compliance with the applicable laws.
19.  It establishes a protection for proprietary information associated with commingling 
agreements.
20.  It exempts refillable containers from the requirements relating to commingling 
agreements.
21.  It requires the Maine Commingling Cooperative to submit an annual report to the 
Department of Environmental Protection with information about participants, redemption 
sites, amount of material recycled, recommended changes and the financial status of the 
program.
22.  It phases out provisions relating to unclaimed deposits and eliminates the 
provisions of law related to unclaimed deposits January 1, 2028.
23.  It requires that the Maine Commingling Cooperative achieve a 75% redemption 
rate annually for deposit containers and assesses a penalty for noncompliance to be 
deposited in the Beverage Container Enforcement Fund under the Maine Revised Statutes, 
Title 38, section 3114, unless the cooperative is provided a waiver by the Department of 
Environmental Protection.
24.  It requires the Department of Environmental Protection and the Maine 
Commingling Cooperative to jointly conduct a study to examine operating costs of 
redemption centers and to recommend a handling fee schedule.