2022 -- H 7378

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LC004394

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT

RECYCLING ACT OF 2022

     

     Introduced By: Representatives McEntee, Cortvriend, Speakman, Carson, Fogarty,
Donovan, Abney, Morales, Bennett, and Knight

     Date Introduced: February 09, 2022

     Referred To: House Environment and Natural Resources

     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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BEVERAGE CONTAINER DEPOSIT RECYCLING ACT OF 2022

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     23-18.18-1. Findings/Purpose.

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     (a) Single-use beverage containers are significant contributors to litter and marine debris;

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     (b) Recycling collection rates for beverage containers in Rhode Island are significantly

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lower than recycling collection rates for beverage containers in states with container deposit

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systems;

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     (c) Source-separated beverage containers collected via container deposit systems are more

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likely to be recycled into new beverage containers than are containers collected via mixed-stream

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recycling;

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     (d) Container deposit systems help create environmentally friendly local jobs;

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     (e) It is in the best interests of the health, safety, and welfare of residents of and visitors to

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Rhode Island to protect our environment and our natural resources by improving recycling rates

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and waste diversion through a container deposit system.

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     23-18.18-2. Definitions.

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     As used in this chapter:

 

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     (1) "Beverage" means liquid intended for human consumption, including, but not limited

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to beer or other malt beverages, wine, liquor, other alcoholic drink as defined in § 3-1-1, soda water

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or other carbonated soft drinks, water, mineral water, dairy drinks, fruit juices, sports drinks, energy

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drinks, and iced teas or coffees. The term beverage does not include:

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     (i) A drug regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et

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seq.);

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     (ii) Infant formula; or

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     (iii) A meal replacement liquid.

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     (2) "Beverage container" means any sealable bottle, can, or jar which is primarily

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composed of glass, metal, plastic, or any combination of those materials and is produced for the

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purpose of containing a beverage. The term "beverage container" does not include:

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     (i) Pouches; or

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     (ii) Aseptic packaging, such as drink boxes.

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     (3) "Bottler" means any person filling beverage containers for sale to distributors or dealers,

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including dealers who bottle or sell their own brand of beverage.

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     (4) "Consumer" means any person who purchases a beverage in a beverage container for

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use or consumption with no intent to resell such beverage.

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     (5) "Dealer" means any person, including any operator of a vending machine, who engages

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in the sale of beverages in beverage containers to consumers in this state.

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     (6) "Department" means the department of environmental management.

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     (7) "Deposit initiator" means the first distributor to collect the deposit on a beverage

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container sold to any person within this state.

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     (8) "Distributor" means any person who engages in the sale of beverages in beverage

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containers to dealers in this state, including any bottler who engages in such sales.

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     (9) "Redeemer" means every person who demands the refund value provided for herein in

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exchange for the empty beverage container, but shall not include a dealer as defined in this section.

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     (10) "Redemption center" means any person offering to pay the refund value of an empty

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beverage container to a redeemer, or any person who contracts with one or more dealers or

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distributors to collect, sort, and obtain the refund value and handling fee of empty beverage

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containers for, or on behalf of, such dealer or distributor.

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     (11) "Reusable beverage container" means any beverage container so constructed and

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designed that it is structurally capable of being refilled and resold by a bottler at least fifty (50)

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times after its initial use.

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     (12) "Reverse vending machine" means an automated device that uses a laser scanner,

 

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microprocessor, or other technology to accurately recognize the universal product code on

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containers to determine if the container is redeemable and accumulates information regarding

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containers redeemed, including the number of such containers redeemed, thereby enabling the

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reverse vending machine to accept containers from redeemers and to issue a scrip or receipt for

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their refund value.

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     (13) "State-specific UPC code" means a UPC code that is unique to this state or used only

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in this state and any other states that have a substantially similar refund value law.

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     (14) "Universal product code" or "UPC code" means a standard for encoding a set of lines

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and spaces that can be scanned and interpreted into numbers to identify a product. UPC code may

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also mean any accepted industry barcode which replaces the UPC code including EAN and other

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codes that may be used to identify a product.

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     23-18.18-3. Refund value; handling fee.

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     (a) A deposit of not less than ten cents ($0.10) shall be paid by the consumer to the dealer

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on each beverage container sold at retail in this state, except for any such beverage containers sold

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or offered for sale for consumption on an interstate passenger carrier, and refunded to the consumer

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upon the return of the empty beverage container.

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     (b) A retailer or redemption center who redeems beverage containers shall be reimbursed

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by the distributor of such beverage containers a handling fee in the amount of three and one-half

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cents ($0.035) per container.

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     23-18.18-4. Acceptance of beverage containers.

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     (a) A dealer shall accept at their place of business from a redeemer any empty beverage

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containers of the design, shape, size, color, composition, and brand sold or offered for sale by the

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dealer, and shall pay to the redeemer the refund value of each such beverage container.

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Redemptions of refund value must be in legal tender, or a scrip or receipt from a reverse vending

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machine, provided that the scrip or receipt can be exchanged for legal tender for a period of not

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less than sixty (60) days without requiring the purchase of other goods. The use or presence of a

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reverse vending machine shall not relieve a dealer of any obligations imposed pursuant to this

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section. If a dealer utilizes a reverse vending machine to redeem containers, the dealer shall provide

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redemption of beverage containers when the reverse vending machine is full, broken, under repair,

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or does not accept a type of beverage container sold or offered for sale by such dealer.

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     (b) A dealer whose place of business has at least:

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     (1) Ten thousand (10,000) but less than thirty thousand square feet (30,000 ft2) devoted to

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the display of merchandise for sale to the public shall install and maintain at least two (2) reverse

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vending machines at the dealer's place of business;

 

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     (2) Thirty thousand (30,000) but less than sixty thousand square feet (60,000 ft2) devoted

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to the display of merchandise for sale to the public shall install and maintain at least three (3)

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reverse vending machines at the dealer's place of business; or

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     (3) Sixty thousand square feet (60,000 ft2) devoted to the display of merchandise for sale

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to the public shall install and maintain at least four (4) reverse vending machines at the dealer's

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place of business.

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     The requirements of subsection (b) of this section to install and maintain reverse vending

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machines shall not apply to a dealer that:

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     (i) Sells only beverage containers of twenty ounces (20 oz.) or less where such beverage

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containers are packaged in quantities of fewer than six (6);

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     (ii) Sells beverage containers and devotes no more than five percent (5%) of its floor space

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to the display and sale of consumer commodities; or

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     (iii) Obtains a waiver from the department authorizing dealers to provide consumers with

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an alternative technology that:

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     (A) Determines if the container is redeemable;

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     (B) Provides protections against fraud through a system that validates each container

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redeemed by reading the UPC code and, except with respect to refillable containers, renders the

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container unredeemable;

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     (C) Accumulates information regarding containers redeemed; and

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     (D) Issues legal tender, or a scrip, receipt, or other form of credit for the refund value, that

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can be exchanged for legal tender for a period of not less than sixty (60) days without requiring the

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purchase of other goods.

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     (c) A dealer to which subsection (b) of this section does not apply and whose place of

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business is at least thirty thousand square feet (30,000 ft2) which does not utilize reverse vending

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machines to process empty beverage containers for redemption shall:

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     (i) Establish and maintain a dedicated area within such business to accept beverage

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containers for redemption;

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     (ii) Adequately staff such area to facilitate efficient acceptance and processing of such

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containers during business hours; and

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     (iii) Post one or more conspicuous signs at each public entrance to the business which

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describes where in the business the redemption area is located.

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     (d) For the purposes of this subsection on any day that a dealer is open for less than twenty-

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four (24) hours, the dealer may restrict or refuse the payment of refund values during the first and

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last hour the dealer is open for business.

 

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     (e) A deposit initiator shall accept from a dealer or redemption center any empty beverage

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container of the design, shape, size, color, composition, and brand sold or offered for sale by the

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deposit initiator, and shall pay the dealer or redemption center the refund value of each such

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beverage container. A deposit initiator shall accept and redeem all such empty beverage containers

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from a dealer or redemption center without limitation on quantity.

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     (f) A deposit initiator's or distributor's failure to pick up empty beverage containers,

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including containers processed in a reverse vending machine, from a redemption center, dealer, or

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the operator of a reverse vending machine, shall be a violation of this chapter.

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     (g) Except as provided in subsection (h) of this section, a bottler shall accept from a dealer

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or distributor any empty reusable beverage container of the type, size, and brand sold by the bottler

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within the past sixty (60) days and shall pay the distributor or dealer the refund value of the reusable

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beverage container plus a handling fee of three and one-half cents ($0.035) per container if the

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empty reusable container is presented at the time and location where the distributor or dealer obtains

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filled reusable beverage containers from the bottler.

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     (h) A dealer, retailer, or redemption center may refuse to accept from a redeemer any empty

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beverage container that is not clean, is broken, or contains material foreign to the normal contents

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of the container.

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     (i) The obligations to accept or take empty beverage containers and to pay the refund value

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and handling fees for such containers as described in this chapter shall apply only to containers

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originally sold in this state as filled beverage containers. Any person who tenders to a dealer,

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distributor, redemption center, or bottler more than ten (10) cases of twenty-four (24) empty

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beverage containers each, which a person knows or has reason to know were not originally sold in

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this state as filled beverage containers, for the purpose of obtaining a refund value or handling fee,

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shall be subject to the enforcement action and civil penalties set forth in § 23-18.18-9(c). For the

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purposes of this section and § 23-18.18-9(c), the term person shall include any individual,

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partnership, corporation, or other combination or entity.

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     23-18.18-5. Redemption Centers.

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     Any person may establish a redemption center and shall have the right to determine what

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type, size, and brand of beverage container shall be accepted.

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     23-18.18-6. Labeling.

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     (a) Every beverage container sold or offered for sale at retail in this state shall clearly

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indicate by embossing or imprinting on the normal product label, or in the case of a metal beverage

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container on the top of the container, the words "Rhode Island" or the letters "RI" and the refund

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value of the container in not less than one-eighth inch (⅛") type size or such other alternate

 

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indications as may be approved by the department.

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     (b) The division of commercial licensing and regulation may allow, in the case of liquor or

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wine bottles, a conspicuous adhesive sticker to be attached to indicate the deposit information

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required in subsection (a) of this section, provided that the size, placement, and adhesive qualities

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of the sticker are as approved by the department.

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     (c) A bottler may place on a beverage container a state-specific UPC code as a means of

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preventing the sale or redemption of beverage containers on which no deposit was initiated.

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     (d) Every operator of a vending machine which sells beverages in beverage containers shall

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post a conspicuous notice on each vending machine indicating that a refund of not less than ten

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cents ($0.10) is available on each beverage container purchased and where and from whom that

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refund may be obtained. The provisions of this subsection shall not be construed to require such

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vending machine operators to provide refunds at the premises wherein such vending machines are

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located.

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     23-18.18-7. Deposit and disposition of refund values, reports, abandoned deposits,

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and reimbursement.

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     (a) Each deposit initiator who receives deposits under this chapter shall segregate said

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deposits in a refund value fund which shall be maintained separately from all other revenues.

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Amounts in such fund shall not be required by this chapter. For no purpose are amounts in such

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fund to be regarded as income of the deposit initiator. Said deposit initiator shall report on a monthly

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basis to the Rhode Island resource recovery corporation and the division of revenue, the amount of

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said deposits or handing fees received and the amount refunded.

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     (b) Each deposit initiator shall report to the director of the division of revenue by the tenth

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day of each month, concerning transactions concerning its refund value fund in the preceding

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month. Such report shall be made in a form prescribed by the director and shall include the number

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of beverage containers sold and the number of beverage containers returned in that month, the

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amount of deposits received in and payments made from the fund in that month and the most recent

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three (3) month period, any income earned on amounts in the refund value fund during the

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preceding month, the balance in the refund value fund at the close of the preceding month, and such

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other information as the director of revenue may require in furtherance of the director's duties

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pursuant to this chapter.

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     (c) Each deposit initiator shall provide a report to the department describing all the types

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of beverage containers on which it initiates deposits. The report shall include the product name,

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type of beverage, size, and composition of the beverage container, the presence of any state-specific

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UPC code and the percentage of products covered by such code, the methods used to prevent the

 

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fraudulent sale and redemption of beverage containers, and any other information the department

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may require. Upon request, a depositor initiator shall also provide to the department a copy of the

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container label or a picture of any beverage container sold or offered for sale in this state on which

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it initiates a deposit.

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     (d) At the end of each month, any amounts that are or should be in a deposit initiator's

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refund value fund and that are in the excess of the sum of:

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     (1) Interest income earned on amounts in the account during that month; and

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     (2) The total amount of refund values received by the deposit initiator for beverage

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containers during that month and the two (2) preceding months shall be deemed to constitute

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abandoned deposit amounts. Income earned on the fund may be transferred from the fund for use

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as funds of the deposit initiator.

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     (e) By the tenth day of each month, each deposit initiator shall turn over to the director of

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the division of revenue any deposit amounts deemed to be abandoned at the close of the preceding

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month, pursuant to subsection (d) of this section. Such amounts may be paid from the refund value

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fund. The amounts collected by the director of the division of revenue pursuant to this subsection

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shall be deposited in a beverage container recycling fund. The money in this fund shall be used to

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reimburse the department for all costs incurred in administering the requirements of this chapter.

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All remaining money in the beverage container recycling fund, after reimbursements to the

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department, shall be used by the department for forgivable grants to persons, businesses,

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municipalities, organizations, or other institutions to fund the creation and operation of redemption

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centers and other redemption sites; for other infrastructure, technology (including reverse vending

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machines), and costs associated with container redemption; or to provide education related to

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container collection and redemption pursuant to this chapter. When awarding grants pursuant to

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this subsection, the department shall consider whether an application for funding will improve

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access to or information regarding beverage container redemption, and whether it will improve

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beverage container redemption and recycling.

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     (f) In any month the authorized payments from the refund value fund by a deposit initiator

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pursuant to § 23-18.18-3(a) exceed the funds that are or should be in its deposit transaction fund,

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the state shall reimburse the deposit initiator from amounts received pursuant to this section, for

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those refunds paid by the deposit initiator for beverage containers for which the funds that are or

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should be in its refund value fund are insufficient; provided however, that such reimbursements to

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a deposit initiator for a month shall not exceed the excess of:

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     (1) Amounts paid by the deposit initiator to the state pursuant to this section in the

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preceding twenty-four (24) months over;

 

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     (2) Amounts paid by this state to the deposit initiator pursuant to this section during the

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preceding twenty-four (24) months.

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     23-18.18-8. Holding or connecting devices.

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     No dealer shall sell or offer for sale in the state containers connected to each other by a

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separate holding device constructed of plastic rings or any other plastic device.

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     23-18.18-9. Enforcement.

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     (a) The director of the department of environmental management shall administer the

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provisions of §§ 23-18.18-1 through 23-18.18-6. The director shall promulgate rules and

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regulations to effectuate the purposes of those sections.

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     (b) The director of the department of environmental management shall have the power to

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adjust the refund value described in § 23-18.18-3 as follows:

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     (1) The director shall establish a process for determining the redemption rate of beverage

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containers subject to this chapter. The director may establish guidelines or regulations necessary or

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expedient to determine this rate.

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     (2) Not later than the final day of June of each year, the director shall determine the

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redemption rate for the previous calendar year.

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     (3) Beginning with the calendar year 2025, if the redemption rate for a given calendar year

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is found by the director to be less than ninety percent (90%), the director shall increase the refund

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value by at least five cents ($0.05) before December 31 of the following calendar year.

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     (4) At their discretion, the director may require an increased refund value for any beverage

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container.

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     (c) Any person, including a bottler, distributor, retailer, dealer, or redemption center, who

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violates the provisions of § 23-18.18-4(h), shall be subject to a civil penalty of the greater of one

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hundred dollars ($100) for each container or twenty-five thousand dollars ($25,000) for each tender

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of containers.

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     (d) Any deposit initiator failing to make full and timely payments, as required by § 23-

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18.18-7(e), shall pay interest on any unpaid amounts at the rate of one and one-half percent (1.5%)

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for each month or part thereof until payment is made in full.

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     SECTION 2. This act shall take effect on January 1, 2023.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINER DEPOSIT

RECYCLING ACT OF 2022

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     This act would create a refundable ten cent ($0.10) deposit for non-reusable beverage

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containers. A four cent ($0.04) handling fee would be paid by distributors.

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     This act would take effect on January 1, 2023.

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