2018 -- H 7887

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LC004400

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO HEALTH AND SAFETY - THE PRODUCT STEWARDSHIP BOTTLE

RECYCLING ACT

     

     Introduced By: Representatives Barros, Shanley, Maldonado, Kazarian, and
Blazejewski

     Date Introduced: February 28, 2018

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 18.18

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THE PRODUCT STEWARDSHIP BOTTLE RECYCLING ACT

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     23-18.18-1. Definitions.

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     As used in this chapter unless the context otherwise indicates, the following words and

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phrases shall have the following meanings:

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     (1) "Beverage" means beer, ale or other drink produced by fermenting malt, spirits, wine,

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wine coolers, soda or noncarbonated water, and all nonalcoholic carbonated or noncarbonated

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drinks in liquid form and intended for internal human consumption. The term "beverage"

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excludes the following:

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     (i) A liquid which is a syrup;

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     (A) In a concentrated form; or

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     (B) Typically added as a minor flavoring ingredient in food or drink, such as extracts,

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cooking additives, sauces or condiments;

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     (ii) A liquid which is a drug or infant formula as defined by the Food, Drug and Cosmetic

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Act. (21 U.S.C.);

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     (iii) A liquid which is designed and consumed only as a nutrition supplement and not as a

 

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beverage;

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     (iv) Products frozen at the time of sale to the consumer, or, in the case of institutional

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users such as hospitals and nursing homes, at the time of sale to such users;

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     (v) Products designed to be consumed in a frozen state;

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     (vi) Instant drink powders;

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     (vii) Seafood, meat or vegetable broths, or soups, but not juices; and

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     (viii) Milk and dairy derived products.

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     (2) "Brand" means the designation of product as determined by a separate label and/or

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Universal Product Code.

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     (3) "Director" means the director of the department of health.

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     (4) "Contracted agent" means a public or private company or individual who enters into

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an agreement with the initiator of deposit to pick up empty beverage containers from redemption

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centers and dealers.

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     (5) "Dealer" means a business entity that sells, offers to sell or engages in the sale of

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beverages in a beverage container to a consumer from a retail food establishment licensed by the

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department of environmental management or the department of health.

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     (6) "Department" means the department of health.

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     (7) "Initiator of deposit" means a business entity, either a manufacturer, distributor, or

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seller that is licensed by the department of health.

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     (8) "Kind" means the general composition of a beverage container, such as plastic, glass

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or metal.

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     (9) "Member dealer" means any dealer who is included in the license approving a local

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redemption center as issued by the director.

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     (10) "Milk" and "dairy-derived products" means whole milk, skim milk, cream, low-fat

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milk, or any combination and includes other products of which the single largest ingredient is

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whole milk or milk fat or milk with varying percentages of milk fat.

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     (11) "Paper or cardboard container" means a container which is composed of at least

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eighty percent (80%) by volume of paper material and does not require a deposit.

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     (12) "Private label" means the label on a beverage container which is manufactured for

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exclusive sale or use by a retailer, organization or entity.

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     (13) "Redemption center" means any place of business that accepts empty returnable

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beverage containers from either consumers or from dealers, or both, and that is licensed by the

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Rhode Island department of health as a redemption center:

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     (i) Reverse vending machines are considered to be a redemption center if they are used as

 

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"stand alone" devices and not as a part of a licensed redemption center;

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     (ii) If a reverse vending machine is used as a "stand alone" device and not as part of a

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licensed redemption center, it will be the responsibility of the lessee or device owner to license

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the location as a redemption center as required in this chapter.

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     (14) "Retailer" means a dealer that sells, offers, or exposes for retail sale, beverages in

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beverage containers.

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     (15) "Reverse vending machine" or "RVM" means an automated device that uses a laser

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scanner, microprocessor, or other technology to accurately recognize the Universal Product Code

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(UPC) on containers and accumulates information regarding containers redeemed, thereby

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enabling the RVM to accept containers from redeemers and to issue script for their refund value.

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     (16) "Shell" means the standard trade package made of fiberboard, wood or plastic

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designed for packaging, carrying or transporting glass or plastic beverage containers.

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     (17) "Shipping carton" means the standard trade package made of cardboard or other

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material designed for packaging, carrying or transporting all types of beverage containers, and

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includes plastic bags used for the return of such containers.

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     (18) "Size" means the liquid content of a beverage container, such as five hundred

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milliliters (500 ml.) or two (2) liter.

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     (19) "Type" means the unique physical design or construction of a beverage container,

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such as a flip top container.

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     (20) "Universal Product Code" or "UPC Code" means a standard for encoding a set of

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lines and spaces that can be scanned and interpreted into numbers to identify a product. Universal

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Product Code may also mean any accepted industry barcode which replaces the UPC code

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including, but not limited to, Universal Product Code (UPC), European Article Number (EAN)

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and other codes that may be used to identify a product.

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     23-18.18-2. Licensing of redemption centers.

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     (a) All redemption centers within the state of Rhode Island must be licensed with the

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Rhode Island department of health prior to beginning operation. Applications for approval of

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redemption centers shall be filed with the department. A fifty dollar ($50.00) annual license fee

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shall accompany each application. Redemption centers must be inspected by the department of

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environmental management (DEM) and meet all applicable requirements prior to licensure.

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     (b) Applications shall be made on a form to be provided by the department pursuant to

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rules and regulations promulgated by the director.

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     (c) The director may approve an application for a redemption center if they find that the

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center will provide a convenient service for the return of empty beverage containers, has

 

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agreements with local retailers (dealers), and meets all other licensing requirements enumerated

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in this chapter and pursuant to department rules and regulations. In making this determination

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with respect to an existing center, the director may consider its compliance with the requirements

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of this chapter and the quality of the service provided.

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     (d) After a license has been issued to a redemption center, the owner shall apply to the

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department for approval of any additional dealers not named in the application. The director's

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decision as to whether such dealers may be member dealers shall be made according to the

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criteria set forth in this section.

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     (e) All licenses are subject to suspension or nonrenewal for good cause shown, including,

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but not limited to, unsafe practices, falsification of reports, or serious or continued violation of

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this chapter pursuant to and in accordance with chapter 35 of title 42, (administrative procedures

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act).

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     (f) The director may approve only one application for a redemption center license in a

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municipality with a population of five thousand (5,000) or less.

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     (g) Any operating redemption center destroyed as a result of a catastrophic event, such as

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a fire, flood or other natural disaster, may rebuild and obtain a license to operate a redemption

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center on the same property or open a redemption center in an already existing structure within

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the same municipality as the original redemption center, it is in operation within six (6) months of

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the catastrophic event and in compliance with all other provisions of this chapter.

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     (h) Agreements to serve local dealers shall be in writing and shall state the name and

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address of the dealer to be served and the distance from the dealer to the redemption center. The

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agreements must be signed by both parties. For purposes of compliance with this section only,

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local dealers with a permanent presence in a "brick and mortar" retail food establishment or

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eating establishment will be considered for an approved agreement.

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     23-18.18-3. Licensing of initiators of deposit.

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     (a) All initiators of deposit distributing or selling beverages in the state must be licensed

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with the department of health prior to beginning operation. Applications for approval of initiators

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of deposit, with the exception of small brewers and vintners who produce no more than fifty

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thousand (50,000) gallons of its product or a bottler of water who annually sells no more than two

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hundred fifty thousand (250,000) containers each containing no more than one gallon of its

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product, and a small beverage manufacturer whose total production of all beverages from all

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combined manufacturing locations is less than fifty thousand (50,000) gallons annually shall be

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filed with the department. A five hundred dollar ($500) annual license fee shall accompany each

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application.

 

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     (1) Applications for approval of initiators of deposit of small brewers and vintners who

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produce no more than fifty thousand (50,000) gallons of its product or a bottler of water who

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annually sells no more than two hundred fifty thousand (250,000) containers each containing no

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more than one gallon of its product shall be filed with the department. A fifty dollar ($50.00)

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annual license fee shall accompany each application.

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     (2) Applications for approval of initiators of deposit of small beverage manufacturers

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whose total production of all beverages from all combined manufacturing locations is less than

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fifty thousand (50,000) gallons annually shall be filed with the department. A fifty dollar ($50.00)

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annual license fee shall accompany each application.

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     (b) Applications shall be made on a department form entitled "Beverage Container

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Licensing/Label Registration" and shall supply the information requested thereon.

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     (c) Initiators of deposit shall annually provide current lists of beverages on which they

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initiate deposit.

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     (d) Initiators of deposit must notify the department whenever products on which they

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initiate deposits are added or discontinued.

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     23-18.18-4. Licensing of contracted agents.

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     (a) All contracted agents operating in the state must be licensed with the department of

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health prior to beginning operation. Applications for approval of contracted agents shall be filed

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with the department. A five hundred dollar ($500) annual license fee shall accompany each

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application.

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     (b) A contracted agent is required to perform all of the pickup functions of the initiator of

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deposit with whom they contract unless expressly exempted in the contractual agreement between

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the initiator and the contracted agent.

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     (c) Applications shall be made on a department form entitled "Beverage Container

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Licensing/Label Registration" and shall supply the information requested thereon.

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     (d) Contracted agents shall annually provide current lists of initiators of deposit with

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whom they have contracts and beverage containers which they pick up.

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     (e) Contracted agents shall notify the department of whenever initiators of deposit with

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whom they have contracts and/or beverages containers which they pick up are added or

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discontinued.

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     23-18.18-5. Registration of beverage container labels.

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     (a) Registration of beverage container labels must take place at the manufacturer level.

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However, if the beverage container has a "private label", the brand owner shall be responsible for

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label registration.

 

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     (b) Any beverage must have affixed a label that is registered with the department that

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bears a universal product code, that shall be unique for each combination of kind, size, brand and

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flavor of beverage offered for sale in the state. UPC codes must be in compliance with current

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standards for seasonal beverages and variety packaging outlined in Global Standards 1, (GSI) a

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global nonprofit dedicated to developing standards for UPC use.

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     (c) Any wine requiring a deposit and refund value must have affixed, a label that is

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registered with the department.

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     (d) Wine and spirits, unless labeled by the manufacturer with the deposit and refund

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value, must be labeled with a refund/deposit sticker that clearly identifies the initiator of deposit

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and the refund value. Prior to the sale of a wine or spirit container to which a separate sticker

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stating the refund value is to be affixed, the manufacturer or initiator of deposit must submit a

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sample of the sticker to the department for approval.

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     (e) The registration of beer, wine and spirits beverage container labels shall be

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coordinated, to the maximum extent possible, to eliminate duplicate registration with any other

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state law.

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     (f) The registration period for each beverage label shall be from January 1 to December

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31 and applications for label registration shall be on forms or in an electronic format provided by

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the department. Labels may be registered for a one, two (2), or three (3) year period.

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     (g) If a universal product code on a beverage container is changed during the registration

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period it will be considered to be discontinued and an application for registration of the label

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bearing the new UPC code and appropriate registration fee must be submitted to the department.

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     (h) Fees shall be applied as follows:

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     (1) Wine labels one dollar ($1.00) annually.

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     (2) All other beverage labels four dollars ($4.00) annually.

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     23-18.18-6. Operation of redemption centers.

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     (a) All empty beverage containers shall be separated from food products sold on the

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premises by a solid partition.

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     (b) Redemption centers shall be operated in such a manner as not to be a nuisance to the

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surrounding area and shall:

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     (1) Have all necessary precautions to eliminate and protect against insect and rodent

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infestation inside and surrounding the premises.

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     (2) Store unsorted and sorted beverage containers to protect beverage containers from

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adverse environmental conditions including, but not limited to, rain, snow, and mud.

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     (3) Provide sanitary facilities to ensure adequate personal hygiene for employees, which

 

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comply with United States Department of Labor standards in 29 CFR 1910.141. Sanitary

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facilities include toilet, hand wash sink, approved septic system and hot and cold potable water

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under pressure.

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     (4) A redemption center is exempt from the requirements of § 23-18.8-6(b)(3) if the

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redemption center is operated by the owner and immediate family members only and has no other

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employees.

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     (5) Hold a valid retail food establishment license issued by the department if foods or

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beverages are sold, and meet all applicable sanitation requirements.

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     (6) Comply with the inspection standards contained on the department form entitled

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"Redemption Center Inspection." These standards are incorporated herein by reference.

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     (c) Redemption centers shall be open for business accepting empty beverage containers a

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reasonable number of hours, the volume of returns and area population considered. Redemption

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centers shall post their hours of operation in a conspicuous place.

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     (d) The location of proposed and existing redemption centers shall be convenient to

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member dealers and their customers to be served.

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     (e) Redemption centers may charge a fee to members.

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     (f) A redemption center may pick up beverage containers from nonmembers.

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     (g) A redemption center shall tender beverage containers to a distributor or third party

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contracted agent by making reasonable accommodations that allow for the distributor or third

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party contracted agent to have ease of access to those beverage containers being tendered or, in

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the event that storage is not convenient to the loading area, by assisting in the loading of the

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transportation vehicle by moving the properly sorted bags or boxes of containers to a

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predetermined loading area during pickup of said containers.

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     23-18.18-7. Reverse vending machines.

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     (a) Reverse vending machines must identify, cancel, and destroy one-way deposit

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containers and reject refillable containers. Reverse vending machines shall collect accounting

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information for deposit and scrap settlement.

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     (b) Reverse vending machines must meet the Rhode Island standards on weights and

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measures pursuant to title 47 and be designed to provide an accurate printed report containing all

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of the following:

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     (1) The number of containers placed in the reverse vending machine over a

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predetermined time period.

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     (2) The brand name of each beverage container placed in the reverse vending machine.

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     (3) The kind, size, and brand of each beverage container placed in the reverse vending

 

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machine.

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     (c) A reverse vending machine and any report that it provides are subject to inspection

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and audit by the department.

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     (d) Each distributor of beverage containers which have been processed through a reverse

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vending machine shall have the opportunity to pick up their share of scrap material, as determined

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from information gathered from the reverse vending machine.

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     (e) In a reverse vending machine (RVM) system, the RVM provider shall be required to

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accumulate and maintain data to allow for geographical allocation of scrap pick up equal to a

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distributor's share of containers.

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     23-18.18-8. Acceptance of beverage containers by distributors from dealers and

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redemption centers.

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     (a) A dealer or redemption center shall tender to a distributor only empty, unbroken and

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reasonably clean beverage containers of the kind, size, and brand sold by the distributor, unless

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the containers have been processed through an approved reverse vending machine which meets

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the requirements of this chapter. For purposes of this section, unbroken when used in reference to

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cans and plastic containers shall mean not previously crushed prior to tendering back to a

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distributor.

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     (b) With the exception of beverages specifically exempted in definitions § 23-18.18-1, a

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dealer or redemption center shall sort beverage containers by kind, size, and brand unless a

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mutually acceptable agreement, as described in § 23-18.18-11, is reached between the dealer or

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redemption center and the distributor.

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     (1) Empty containers, unless they have been processed through an approved reverse

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vending machine that meets the requirements of this chapter, shall be tendered to the distributor

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in shells or shipping cartons provided by the distributor, or other containers mutually agreed upon

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by the distributor and retailer.

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     (c) Pick up of such beverage containers from a dealer or local redemption center shall be

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the responsibility and expense of the distributor, unless the distributor has made other

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arrangements satisfactory to the dealer or redemption center for recycling or disposal of beverage

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containers.

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     (d) Containers may be sorted in any other manner that is consistent with § 23-18.18- 11.

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     23-18.18-9. Frequency of pick up by distributors from redemption centers.

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     (a) The initiator of deposit or initiators of deposit who are members of a commingling

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agreement and contracted agents representing an initiator of deposit shall pick up empty,

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unbroken and reasonably clean beverage containers of the particular kind, size, and brand sold by

 

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the initiator from dealers to whom a distributor has sold those beverages and from licensed

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redemption centers designated to serve those dealers every fifteen (15) calendar days.

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     (b) A redemption center after collecting ten thousand (10,000) beverage containers

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belonging to an initiator of deposit or from the initiators of deposit who are members of a

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commingling agreement may request an additional pick up from the initiator of deposit or

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initiators of deposit who are members of a commingling agreement and contracted agents

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representing an initiator of deposit.

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     (c) When a redemption center makes a request for beverage container pick up, the

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initiator of deposit or initiators of deposit who are members of a commingling agreement and

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contracted agents shall fulfill the request no later than three (3) business days starting the day

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after the request was made.

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     23-18.18-10. Time for payment by distributors or contracted agent to dealers and

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redemption centers.

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     (a) The distributor or contracted agent shall pay the dealer or local redemption center all

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applicable refunds, deposits and handling charges no later than ten (10) business days after

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acceptance.

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     (b) If payment is made by mail, payment shall be deemed to take place upon mailing.

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     23-18.18-11. Private contracts and business transactions.

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     These rules shall not be interpreted to prohibit any other arrangements for sorting,

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delivery, acceptance of payment or other matter related to beverage containers when the

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arrangement is consistent with the general laws or rules and regulations provided by the

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department of business regulation and is mutually agreed upon in writing between the distributor

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and the dealer or redemption center, or reverse vending provider and the distributor and/or dealer

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or redemption center.

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     23-18.18-12. Refusing payment when a distributor discontinues a specific beverage

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product.

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     Distributors, contracted agents, dealers, and redemption centers shall not refuse to pay the

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refund value of the returned beverage container as established by this chapter except that

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distributors, dealers and redemption centers may refuse to pay such refund value in the following

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situations:

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     (1) A distributor may refuse to pay the refund value if the distributor has given notice, in

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writing, to dealers to whom the distributor sold similar beverage containers and the licensed

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redemption centers serving those dealers that the particular kind, size, and brand offered for

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refund has been discontinued and at least four (4) months have elapsed since the mailing of such

 

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notice;

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     (2) A dealer or redemption center may refuse to pay the refund value of beverages

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discontinued by a distributor in accordance with subsection (1) of this section, no sooner than

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three (3) months after the distributor has mailed the notice required by subsection (1) of this

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section; and

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     (3) In no event shall a dealer or redemption center refuse to pay the refund value of

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discontinued beverages unless such dealer or redemption center shall have posted for at least

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thirty (30) days a conspicuous notice advising consumers of the final date of acceptance.

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     23-18.18-13. Refund value initiation.

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     Initiation of the deposit for non-refillable containers sold through distributorships which

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have no exclusive geographic area may take place at the manufacturer level at the manufacturer's

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discretion; otherwise initiation of the deposit shall take place at the distributor level. Initiators of

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deposit must be licensed with the department prior to distribution of any beverage requiring

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deposit within the state.

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     23-18.18-14. Clearly defined labeling requirements.

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     (a) Placement of label; method of labeling. On printed labels, the refund value and the

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word "Rhode Island" or the abbreviation "RI" shall be clearly and conspicuously displayed on

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every beverage container using letters, numerals and symbols not less than one eighth (1/8) inch

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high in clear and prominent typeface and a color contrasting with its background. The refund

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value shall not be indicated on the bottom of the container.

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     (1) On metal beverage containers the refund value and the word "Rhode Island" or the

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abbreviation "RI" shall be embossed, incised, or printed clearly and conspicuously on the top of

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every beverage container using letters, numerals and symbols not less than one eighth (1/8) inch

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high.

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     (b) Approval of container labels. Prior to sale within the state, manufacturers or

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distributors must submit the entire label (including any printed material on the container) to the

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department for approval.

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     (c) If a manufacturer directly prints, embosses, or incises the Rhode Island redemption

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value on the beverage container, the manufacturer, or in the case of a private label the brand

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owner, must submit such labeled container to the department for approval.

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      (d) With the exception of wine products and seasonally produced malt liquor products

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and variety packages of malt liquor products, all beverage containers sold in the state of Rhode

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Island shall bear a universal product code (UPC) that shall be unique to each combination of

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beverage brand, kind, size, and flavor.

 

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     23-18.18-15. Exempt facilities.

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     Certain producers of products made in Rhode Island as determined by the director are

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exempt from the required refund and deposit provisions of this chapter. Local producers

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providing beverages in containers that do not bear a deposit/refund statement shall receive empty

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containers from consumers who voluntarily return them without deposit. The opportunity for

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consumers to return empty containers shall be conspicuously posted at the producer's place of

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business and should encourage the return of containers to the processor for recycling.

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     23-18.18-16. Plastic Bag Specifications.

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     Plastic bags used to tender beverage containers by redemption centers to distributors or

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third party agents shall be of uniform dimensions that are thirty-six inches (36") in width by sixty

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inches (60") long with a minimum thickness of one and two millionths of an inch (1.2 mils) and

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with flat bottoms.

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     23-18.18-17. Signs Conspicuously Posted.

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     (a) Each area of a redemption center where consumers tender returnable containers must

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have a "Warning Sign" conspicuously posted. Warning signs shall be constructed of durable

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materials and printed in horizontal block form. Each letter of the warning sign shall be of bold

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type measuring a minimum of one inch (1") in height.

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     (b) Member dealers shall conspicuously post the name and address of the local

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redemption center, which serves the dealer for purposes of redeeming returnable beverage

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containers of the kind, size, and brand sold by the dealer.

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     23-18.18-18. Audits.

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     (a) Initiators, distributors and third party contracted agents may conduct audits to

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determine accuracy of container counts for bags tendered as full bags by dealers and redemption

24

centers.

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     (b) The audits must follow accepted weights and measures laws and procedures pursuant

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to title 47 and necessary rule or regulation promulgated by the director.

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     23-18.18-19. Rules and regulations.

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     The director is hereby empowered and directed to promulgate rules and regulations

29

necessary to administer and enforce the provisions of this chapter.

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     23-18.18-20. Severability.

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     If any provision of this chapter or the application thereof to any person or circumstances

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is held invalid, the invalidity does not affect other provisions or applications of the chapter which

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can be given effect without the invalid provision or application, and to this end the provisions of

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this chapter are declared to be severable.

 

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY - THE PRODUCT STEWARDSHIP BOTTLE

RECYCLING ACT

***

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     This act would create a beverage container recycling program using redemption centers

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which would include the use of automated devices to accept containers for recycling.

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     This act would take effect upon passage.

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