PRINTER'S NO. 1333
No. 1035 Session of 2007
INTRODUCED BY RAFFERTY, EICHELBERGER, WAUGH, PUNT, ERICKSON,
GREENLEAF, FONTANA, BROWNE, BRUBAKER, FERLO, D. WHITE,
DINNIMAN AND KASUNIC, JULY 20, 2007
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JULY 20, 2007
AN ACT
1 Providing for the return of beverage containers and for the
2 powers and duties of the Department of Environmental
3 Protection; imposing a returnable beverage container
4 assessment on distributors; establishing the Returnable
5 Beverage Container Fund; and providing for a returnable
6 deposit value on returnable beverage containers, for
7 redemption of empty returnable beverage containers, for
8 redemption centers, for payment of claims from the fund and
9 for annual report to General Assembly.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Short title.
13 This act shall be known and may be cited as the Returnable
14 Beverage Container Act.
15 Section 2. Definitions.
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 "Beverage." Any of the following:
20 (1) Soda water or similar carbonated soft drink.
21 (2) Noncarbonated drink, including, but not limited to,
1 mineral water, flavored and unflavored water, spring water,
2 vitamin water and any other water beverage, tea, sports
3 drink, isotonic drinks, beer and other malt beverages.
4 (3) Any other nonalcoholic carbonated and noncarbonated
5 drink in liquid form that is intended for human consumption.
6 The term does not include milk or any beverage that is primarily
7 derived from a dairy product, infant formula and medicine
8 approved by the Food and Drug Administration.
9 "Consumer." A person who buys a beverage in a returnable
10 beverage container for use or consumption and pays the deposit.
11 "Dealer." A person who engages in the sale of beverages in
12 returnable beverage containers to a consumer for off-premises
13 consumption in this Commonwealth.
14 "Department." The Department of Environmental Protection of
15 the Commonwealth.
16 "Fund." The Returnable Beverage Container Fund established
17 under section 5.
18 "On-premises consumption." The consumption of returnable
19 beverages by a patron immediately and within the area under
20 control of an establishment, including, but not limited to, a
21 bar, restaurant, passenger ship or airplane.
22 "Patron." A person who buys a beverage in a returnable
23 beverage container for use or consumption and does not pay the
24 deposit.
25 "Person." An individual, partnership, firm, association,
26 public or private corporation, Federal agency, the Commonwealth
27 or any of its political subdivisions, trust or any other legal
28 entity.
29 "Recycling facility." The contiguous land and structures and
30 other appurtenances and improvements on the land used for the
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1 collection, separation, recovery, and sale or reuse of secondary
2 resources that would otherwise be disposed of as solid waste and
3 is an integral part of a manufacturing process aimed at
4 producing a marketable product made of postconsumer material.
5 "Redeemer." A person, other than a dealer or distributor,
6 who demands the refund value in exchange for an empty returnable
7 beverage container.
8 "Redemption center." An operation that accepts from
9 consumers and provides the refund value for empty returnable
10 beverage containers intended to be recycled and ensures that the
11 empty returnable beverage containers are properly recycled.
12 "Redemption rate." The percentage of returnable beverage
13 containers redeemed over a reporting period. The percentage is
14 calculated by dividing the number of returnable beverage
15 containers redeemed by the number of returnable beverage
16 containers sold and then multiplying that number by one hundred.
17 "Refillable beverage container." Any returnable beverage
18 container that ordinarily is returned to the manufacturer to be
19 refilled and resold.
20 "Returnable beverage container." Any sealable bottle, can,
21 jar or carton which is primarily composed of glass, metal,
22 plastic or any combination of those materials and is produced
23 for the purposes of containing a beverage which, at the time of
24 sale, contains 28 ounces or less of a beverage. The term does
25 not include any sealable bottle, can, jar or carton which is
26 composed of paper-based biodegradable material and aseptic
27 multimaterial packaging.
28 "Returnable beverage distributor" or "distributor." A person
29 who:
30 (1) is a manufacturer of beverages in returnable
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1 beverage containers in this Commonwealth; or
2 (2) imports and engages in the sale of filled returnable
3 beverage containers to a dealer or consumer in this
4 Commonwealth.
5 The term includes a Federal agency and military distributor, but
6 does not include an airline or shipping company that merely
7 transports returnable beverage containers.
8 Section 3. Returnable beverage container assessment on
9 distributors.
10 (a) General rule.--Beginning January 1, 2008, a returnable
11 beverage distributor shall pay to the department, on a monthly
12 basis, a returnable beverage container assessment on each
13 returnable beverage container manufactured in or imported into
14 this Commonwealth. The returnable beverage container assessment
15 shall not apply to returnable beverage containers exported for
16 sale outside of this Commonwealth.
17 (b) Amount of assessment.--The returnable beverage container
18 assessment shall be 5¢ per returnable beverage container and may
19 be imposed only once on the same returnable beverage container.
20 (c) State preemption.--No municipality may impose or collect
21 any assessment or fee on returnable beverage containers for the
22 same or similar purpose that is the subject of this act.
23 Section 4. Returnable beverage distributors.
24 (a) Duty to register.--
25 (1) On or before September 1, 2007, each returnable
26 beverage distributor shall register with the department,
27 using forms prescribed by the department, and shall notify
28 the department of any change in address or other information
29 previously submitted.
30 (2) After September 1, 2007, any person who desires to
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1 conduct business in this Commonwealth as a returnable
2 beverage distributor shall register with the department no
3 later than one month prior to the commencement of the
4 business.
5 (b) Maintenance of records.--
6 (1) A returnable beverage distributor shall maintain
7 records reflecting the manufacture of beverages in returnable
8 beverage containers or the importation and the sale of filled
9 returnable beverage containers, as applicable.
10 (2) The records shall be made available, upon request,
11 for inspection by the department; provided that any
12 proprietary information obtained by the department shall be
13 kept confidential and shall not be disclosed to any other
14 person, except:
15 (i) as may be reasonably required in an
16 administrative or judicial proceeding to enforce any
17 provision of this act or any rule adopted pursuant to
18 this act; or
19 (ii) under an order issued by a court.
20 Section 5. Returnable Beverage Container Fund.
21 (a) Establishment.--The Returnable Beverage Container Fund
22 is established in the State Treasury. All revenues generated
23 from the returnable beverage container assessment shall be
24 deposited into the fund.
25 (b) Use of fund.--
26 (1) The moneys in the fund shall be used to pay valid
27 returnable deposit claims submitted by returnable beverage
28 distributors and redemption centers under section 14.
29 (2) After the payment of claims under paragraph (1), 75%
30 of the fund shall be transferred on a monthly basis to the
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1 Hazardous Sites Cleanup Fund established under section 901 of
2 the act of October 18, 1988 (P.L.756, No.108), known as the
3 Hazardous Sites Cleanup Act.
4 Section 6. Inventory report.
5 (a) General rule.--Except as otherwise provided under
6 subsection (e), beginning February 1, 2008, and continuing each
7 month thereafter, a returnable beverage distributor shall file
8 an inventory report with the department.
9 (b) Content.--The inventory report required under subsection
10 (a) shall include documentation in sufficient detail to
11 identify:
12 (1) The number of beverages in returnable beverage
13 containers, by container size and type, manufactured in or
14 imported into this Commonwealth during the reporting period.
15 (2) The number of these returnable beverage containers,
16 by container size and type, exported and intended for
17 consumption outside this Commonwealth during the reporting
18 period.
19 All information contained in an inventory report, including
20 confidential commercial and financial information, shall be
21 deemed confidential and protected from public disclosure to the
22 extent allowed by law.
23 (c) Calculation of payment.--The payment due from a
24 returnable beverage distributor for the assessment imposed under
25 section 3 shall be equal to the net number of returnable
26 beverage containers imported or manufactured into this
27 Commonwealth, the total number of containers imported or
28 manufactured less the total number of containers exported for
29 consumption outside this Commonwealth, multiplied by 5¢.
30 (d) Filing deadline.--The inventory report and payment shall
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1 be filed with the department no later than the fifteenth day of
2 the month following the end of the payment period of the
3 previous month.
4 (e) Semiannual reporting.--A returnable beverage distributor
5 who annually imports or manufactures in this Commonwealth less
6 than 100,000 returnable beverage containers may submit reports
7 and payments required under this act on a semiannual basis;
8 provided that the semiannual report and payment period shall end
9 on June 30 and December 31 of each year.
10 Section 7. Returnable deposit value of returnable beverage
11 containers.
12 Beginning January 1, 2008, each returnable beverage container
13 sold in this Commonwealth shall have a returnable deposit value
14 of 5¢ and the returnable deposit value shall be clearly
15 indicated on it as provided under section 9.
16 Section 8. Sales of beverages in returnable beverage
17 containers.
18 (a) Pass-through from distributors.--Beginning January 1,
19 2008, a returnable beverage distributor who pays the returnable
20 beverage container assessment to the department may add the
21 amount of the assessment to the cost of each returnable beverage
22 container paid by the dealer or consumer. The addition of the
23 amount of the assessment may appear as a separate line item on
24 the invoice prepared by the distributor.
25 (b) Pass-through from dealers.--Beginning January 1, 2008, a
26 dealer who purchased a returnable beverage container from a
27 distributor who added the amount of the returnable beverage
28 container assessment to the cost of the returnable beverage
29 container paid by the dealer and which dealer sells the
30 returnable beverage container to a consumer may indicate the
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1 cost of the assessment as a separate line item on the invoice
2 prepared by the dealer.
3 Section 9. Returnable beverage container requirements.
4 (a) General rule.--Except as provided in subsection (b),
5 each returnable beverage container sold in this Commonwealth
6 shall clearly indicate the returnable deposit value of the
7 container and the word "Pennsylvania" or the letters "PA." The
8 names or letters representing the names of other states with
9 comparable deposit laws may also be included in the indication
10 of the returnable deposit value. The returnable deposit value on
11 every returnable beverage container shall be clearly,
12 prominently and indelibly marked by painting, printing, scratch
13 embossing, raised letter embossing or securely affixed stickers
14 and shall appear on the top or side of the container in letters
15 at least one-eighth inch in size.
16 (b) Nonapplicability.--Subsection (a) shall not apply to any
17 type of refillable glass returnable beverage container that has
18 a brand name permanently marked on it and the equivalent of a
19 refund value of at least 5¢ which is paid upon receipt of the
20 container by a dealer or returnable beverage distributor.
21 Section 10. Redemption of empty returnable beverage containers.
22 (a) General rule.--Except as provided in subsection (b), a
23 dealer shall:
24 (1) Operate a redemption center by July 1, 2008, and
25 shall accept all types of empty returnable beverage
26 containers that bear a valid returnable deposit value for
27 this Commonwealth under this act.
28 (2) Pay to any person who presents an empty returnable
29 beverage container, except as otherwise provided under
30 section 13, the amount of the returnable deposit value for
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1 the returnable beverage container, if it bears a valid
2 returnable deposit value for this Commonwealth under this
3 act.
4 (3) Ensure each returnable beverage container collected
5 is recycled and forward documentation necessary to support
6 claims for payment from the fund as stated in section 13 or
7 the regulations adopted under this act.
8 (b) Nonapplicability.--Subsection (a) shall not apply to any
9 dealer:
10 (1) who is located in a high density population area as
11 defined by regulation of the department and within two miles
12 of a certified redemption center that is operated
13 independently of a dealer;
14 (2) who is located in a rural area as defined by
15 regulation of the department;
16 (3) who subcontracts with a certified redemption center
17 to be operated on the dealer's premises;
18 (4) whose sales of returnable beverage containers are
19 only via vending machines;
20 (5) whose place of business is less than 5,000 square
21 feet of interior space;
22 (6) who can demonstrate physical or financial hardship,
23 or both, based on specific criteria established by regulation
24 of the department; or
25 (7) who meets other criteria established by the
26 department.
27 Notwithstanding the provisions of paragraphs (1) and (2), the
28 department may allow the placement of redemption centers at
29 greater than prescribed distances to accommodate geographical
30 features while ensuing adequate consumer convenience.
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1 (c) Signs of closest redemption center.--Regardless of the
2 square footage of a dealer's place of business, a dealer that is
3 not a redemption center or has not subcontracted with a
4 redemption center shall post a clear and conspicuous sign at the
5 primary public entrance of the dealer's place of business that
6 specifies the name, address and hours of operation of the
7 closest redemption center location.
8 (d) On-premise consumption.--A person engaged in the
9 business of selling beverages in returnable beverage containers
10 for on-premises consumption shall collect the used returnable
11 beverage containers from its patrons and either use a certified
12 redemption center for the collection of containers or become a
13 certified redemption center.
14 Section 11. Redemption centers.
15 (a) Certification required.--Prior to operation, a
16 redemption center must be certified by the department.
17 (b) Applications.--An application for certification as a
18 redemption center shall be filed with the department on forms
19 prescribed by the department.
20 (c) Discretionary review of certification.--The department,
21 at any time, may review the certification of a redemption
22 center. After written notice to the person responsible for the
23 establishment and operation of the redemption center and to the
24 dealers served by the redemption center, the department, after
25 it has afforded the person a hearing in accordance with
26 applicable law, may withdraw the certification of the center if
27 it finds that there has not been compliance with applicable
28 laws, rules, permit conditions or certification requirements.
29 (d) Duties of redemption centers.--A redemption center
30 shall:
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1 (1) Accept all types of empty returnable beverage
2 containers from consumers or other persons, unless excepted
3 under section 13.
4 (2) Pay to any consumer or other person who presents an
5 empty returnable beverage container, except as otherwise
6 provided under section 13, the amount of the returnable
7 deposit value for the returnable beverage container, if it
8 bears a valid returnable deposit value for this Commonwealth
9 under this act.
10 (3) Ensure each returnable beverage container collected
11 is recycled and forward documentation necessary to support
12 claims for payment from the fund as stated in section 14 or
13 the regulations adopted under this act.
14 (e) Compliance with laws.--The redemption area of a
15 redemption center shall be maintained in full compliance with
16 applicable laws and with the orders and rules of the department,
17 including permitting requirements, if deemed necessary by the
18 department.
19 Section 12. Development of procedures.
20 The department shall develop procedures to facilitate the
21 exchange of information between returnable beverage container
22 manufacturers, distributors and retailers and certified
23 redemption centers. The procedures developed by the department
24 shall allow for a reasonable time period between the
25 introduction of a new returnable beverage product and the
26 deadline for submitting universal product code information to
27 certified redemption centers operating reverse vending machines.
28 Section 13. Refusal of refund value payment for a returnable
29 beverage container.
30 A retailer or redemption center may refuse to pay the
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1 returnable deposit value on any broken, corroded or dismembered
2 returnable beverage container or any returnable beverage
3 container that:
4 (1) contains a free-flowing liquid;
5 (2) does not properly indicate a refund value; or
6 (3) contains a significant amount of foreign material.
7 Section 14. Claims for reimbursement from the fund.
8 (a) General rule.--A dealer or redemption center that
9 accepts a returnable beverage container from a consumer or other
10 person and pays the returnable deposit value to the consumer or
11 other person may submit to the department a claim for
12 reimbursement from the fund.
13 (b) Amount of claim.--The department shall pay to each
14 dealer or redemption center that submits a claim under
15 subsection (a) 2¢ for each returnable beverage container that is
16 not returned.
17 (c) Alternative payment approach.--The department may choose
18 to pay the reimbursement amount on the basis of the total weight
19 of the containers received by material type and the average
20 weight of each container type, rather than on a per returnable
21 beverage container basis.
22 (d) Limitation.--Reimbursement from the fund may only occur
23 once for each returnable beverage container.
24 Section 15. Redemption center reporting.
25 In order for its claim to be approved by the department, a
26 dealer or redemption center shall submit to the department the
27 following information on forms prescribed by the department.
28 (1) The number or weight of returnable beverage
29 containers of each material type accepted at the redemption
30 center for the reporting period.
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1 (2) The amount of refunds paid out by material type.
2 (3) The number or weight of returnable beverages
3 containers of each material type transported out of this
4 Commonwealth or to a permitted recycling facility.
5 (4) Copies of out-of-Commonwealth transport and weight
6 receipts or acceptance receipts from permitted recycling
7 facilities. If the redemption center and the recycling
8 facility are the same entity, copies of out-of-Commonwealth
9 transport and weight receipts, or documentation of end use
10 accepted by the department, shall also be included.
11 (5) Any other information deemed necessary by the
12 department.
13 Section 16. Departmental inspections.
14 The records of a returnable beverage distributor, dealer,
15 redemption center and recycling facility shall be made
16 available, upon request, for inspection by the department or a
17 duly authorized agent of the department. Any proprietary
18 information obtained during the inspection shall be kept
19 confidential and shall not be disclosed to any other person,
20 except:
21 (1) as may be reasonably required in an administrative
22 or judicial proceeding to enforce any provision of this act
23 or any regulation adopted pursuant to this act; or
24 (2) under an order issued by a court.
25 Section 17. Annual report to General Assembly.
26 The department shall file a report with the General Assembly
27 on an annual basis. The report shall include:
28 (1) Information on the administration of this act.
29 (2) Detailed financial information on the payment of
30 claims from the Returnable Beverage Container Fund and the
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1 monthly transfers to the Hazardous Sites Cleanup Fund.
2 (3) Recommendations from the department as to whether
3 the actual claim experience of the Returnable Beverage
4 Container Fund necessitates adjustment of the percentage of
5 monthly transfers set forth in section 5(b)(2) in order for
6 the Returnable Beverage Container Fund to be fiscally sound
7 for the continued payment of claims pursuant to this act.
8 Section 18. Regulations.
9 The department may promulgate rules and regulations to
10 administer and enforce this act.
11 Section 19. Effective date.
12 This act shall take effect immediately.
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