An Act to Increase the Handling Fee for Beverage Containers Reimbursed to Dealers and Redemption Centers

Page 1 - 131LR0197(03) STATE OF MAINE _____ IN THE YEAR OF OUR LORD TWO THOUSAND TWENTY-THREE _____ S.P. 73 - L.D. 134 An Act to Increase the Handling Fee for Beverage Containers Reimbursed to Dealers and Redemption Centers Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and Whereas, the State's successful beverage container redemption program protects public health and safety by preventing litter from polluting water sources and spreading disease and by reducing air and water contamination caused by the burning of containers in a waste-to-energy facility or the disposal of containers in a landfill; and Whereas, Maine residents rely on beverage container redemption centers as a convenient option for redeeming container refunds, which many residents use to support their household budgets; and Whereas, redemption centers are struggling to address increased system costs due to inflation and other factors, which have forced many redemption centers to reduce hours or close, while at the same time, recent increased demands for redemption services are overwhelming redemption centers still in operation; and Whereas, necessary operational changes to streamline the beverage container redemption program cannot be implemented in sufficient time to address the current cost and demand issues overwhelming redemption centers now and in the near future; and Whereas, an immediate increase in the handling fee paid by initiators of deposit to redemption centers and an additional future increase in that fee, as provided in this legislation, are necessary to prevent further redemption center closures; and Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore, Be it enacted by the People of the State of Maine as follows: Sec. 1. 38 MRSA §3106, sub-§7, as amended by PL 2019, c. 526, §7, is further amended to read: APPROVED MAY 5, 2023 BY GOVERNOR CHAPTER 48 PUBLIC LAW Page 2 - 131LR0197(03) 7. Reimbursement of handling costs. Reimbursement of handling costs is governed by this subsection. A. In addition to the payment of the refund value, the initiator of the deposit under section 3103, subsections 1, 2 and 4 shall reimburse the dealer or redemption center for the cost of handling beverage containers subject to section 3103, in an amount that equals at least 3¢ per returned container for containers picked up by the initiator before March 1, 2004, at least 3 1/2¢ for containers picked up on or after March 1, 2004 and before March 1, 2010, at least 4¢ for containers picked up on or after March 1, 2010 and before January 1, 2020 and , at least 4 1/2¢ for containers picked up on or after January 1, 2020 and before May 1, 2023, at least 5 1/2¢ for containers picked up on or after May 1, 2023 and before September 1, 2023 and at least 6¢ for containers picked up on or after September 1, 2023. The initiator of the deposit may reimburse the dealer or redemption center directly or indirectly through a party with which it has entered into a commingling agreement. B. In addition to the payment of the refund value, the initiator of the deposit under section 3103, subsection 3 shall reimburse the dealer or redemption center for the cost of handling beverage containers subject to section 3103 in an amount that equals at least 3¢ per returned container for containers picked up by the initiator before March 1, 2004, at least 3 1/2¢ for containers picked up on or after March 1, 2004 and before March 1, 2010, at least 4¢ for containers picked up on or after March 1, 2010 and before January 1, 2020 and, at least 4 1/2¢ for containers picked up on or after January 1, 2020 and before May 1, 2023, at least 5 1/2¢ for containers picked up on or after May 1, 2023 and before September 1, 2023 and at least 6¢ for containers picked up on or after September 1, 2023. The initiator of the deposit may reimburse the dealer or redemption center directly or indirectly through a contracted agent or through a party with which it has entered into a commingling agreement. Sec. 2. Appropriations and allocations. The following appropriations and allocations are made. ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF Alcoholic Beverages - General Operation 0015 Initiative: Provides allocations for the State’s cost as an initiator of deposit for spirits for an increase in the reimbursement rate paid to a dealer or local redemption center of 1¢ per returned beverage container beginning May 1, 2023 and another 1/2¢ beginning September 1, 2023. STATE ALCOHOLIC BEVERAGE FUND 2022-23 2023-24 2024-25 All Other $52,959 $450,155 $514,766 __________ __________ __________ STATE ALCOHOLIC BEVERAGE FUND TOTAL $52,959 $450,155 $514,766 Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.