Connecticut 2019 Regular Session

Connecticut House Bill HB07294 Latest Draft

Bill / Comm Sub Version Filed 05/02/2019

                             
 
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General Assembly  Substitute Bill No. 7294  
January Session, 2019 
 
 
 
 
 
AN ACT CONCERNING BO TTLE REDEMPTION IN THE STATE.  
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. Section 22a-243 of the general statutes is repealed and the 1 
following is substituted in lieu thereof (Effective July 1, 2020): 2 
For purposes of sections 22a-243 to 22a-245c, inclusive: 3 
(1) "Carbonated beverage" means beer or other malt beverages, and 4 
mineral waters, soda water and similar carbonated soft drinks in liquid 5 
form and intended for human consumption; 6 
(2) "Noncarbonated beverage" means water, including flavored 7 
water, nutritionally enhanced water, juice, tea, sports drink or energy 8 
drink and any beverage that is identified through the use of letters, 9 
words or symbols on such beverage's product label as a type of water, 10 
juice, tea, sports drink or energy drink but excluding [juice and] 11 
mineral water; 12 
(3) "Beverage container" means the individual, separate, sealed 13 
glass, metal or plastic bottle, can, jar or carton containing a carbonated 14 
or noncarbonated beverage, but does not include a bottle, can, jar or 15 
carton (A) three liters or more in size if containing a noncarbonated 16 
beverage, or (B) made of high-density polyethylene; 17  Substitute Bill No. 7294 
 
 
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(4) "Consumer" means every person who purchases a beverage in a 18 
beverage container for use or consumption; 19 
(5) "Dealer" means every person who engages in the sale of 20 
beverages in beverage containers to a consumer; 21 
(6) "Distributor" means every person who engages in the sale of 22 
beverages in beverage containers to a dealer in this state including any 23 
manufacturer who engages in such sale and includes a dealer who 24 
engages in the sale of beverages in beverage containers on which no 25 
deposit has been collected prior to retail sale; 26 
(7) "Manufacturer" means every person bottling, canning or 27 
otherwise filling beverage containers for sale to distributors or dealers 28 
or, in the case of private label brands, the owner of the private label 29 
trademark; 30 
(8) "Place of business of a dealer" means the fixed location at which 31 
a dealer sells or offers for sale beverages in beverage containers to 32 
consumers; 33 
(9) "Redemption center" means any facility established to redeem 34 
empty beverage containers from consumers or to collect and sort 35 
empty beverage containers from dealers and to prepare such 36 
containers for redemption by the appropriate distributors; 37 
(10) "Use or consumption" includes the exercise of any right or 38 
power over a beverage incident to the ownership thereof, other than 39 
the sale or the keeping or retention of a beverage for the purposes of 40 
sale; 41 
(11) "Nonrefillable beverage container" means a beverage container 42 
which is not designed to be refilled and reused in its original shape; 43 
and 44 
(12) "Deposit initiator" means the first distributor to collect the 45 
deposit on a beverage container sold to any person within this state.  46  Substitute Bill No. 7294 
 
 
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Sec. 2. Section 22a-244 of the general statutes is repealed and the 47 
following is substituted in lieu thereof (Effective July 1, 2022): 48 
(a) (1) Every beverage container containing a carbonated beverage 49 
sold or offered for sale in this state, except for any such beverage 50 
containers sold or offered for sale for consumption on an interstate 51 
passenger carrier, shall have a refund value. Such refund value shall 52 
not be less than [five] ten cents and shall be a uniform amount 53 
throughout the distribution process in this state. (2) Every beverage 54 
container containing a noncarbonated beverage sold or offered for sale 55 
in this state shall have a refund value, except for beverage containers 56 
containing a noncarbonated beverage that are (A) sold or offered for 57 
sale for consumption on an interstate passenger carrier, or (B) that 58 
comprise any dealer's existing inventory as of March 31, 2009. Such 59 
refund value shall not be less than [five] ten cents and shall be a 60 
uniform amount throughout the distribution process in this state. 61 
(b) Every beverage container sold or offered for sale in this state, 62 
that has a refund value pursuant to subsection (a) of this section, shall 63 
clearly indicate by embossing or by a stamp or by a label or other 64 
method securely affixed to the beverage container (1) either the refund 65 
value of the container or the words "return for deposit" or "return for 66 
refund" or other words as approved by the Department of Energy and 67 
Environmental Protection, and (2) either the word "Connecticut" or the 68 
abbreviation "Ct.", provided this subdivision shall not apply to glass 69 
beverage containers permanently marked or embossed with a brand 70 
name. 71 
(c) No person shall sell or offer for sale in this state any metal 72 
beverage container (1) a part of which is designed to be detached in 73 
order to open such container, or (2) that is connected to another 74 
beverage container by a device constructed of a material which does 75 
not decompose by photodegradation, chemical degradation or 76 
biodegradation within a reasonable time after exposure to the 77 
elements. 78  Substitute Bill No. 7294 
 
 
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Sec. 3. Section 22a-245 of the general statutes is repealed and the 79 
following is substituted in lieu thereof (Effective July 1, 2020): 80 
(a) No person shall establish a redemption center without 81 
registering with the commissioner on a form provided by the 82 
commissioner with such information as the commissioner deems 83 
necessary including (1) the name of the business principals of the 84 
redemption center and the address of the business; (2) the name and 85 
address of the sponsors and dealers to be served by the redemption 86 
center; (3) the types of beverage containers to be accepted; (4) the hours 87 
of operation; and (5) whether beverage containers will be accepted 88 
from consumers. The operator of the redemption center shall report 89 
any change in procedure to the commissioner within forty-eight hours 90 
of such change. Any person establishing a redemption center shall 91 
have the right to determine what kind, size and brand of beverage 92 
container shall be accepted. Any redemption center may be established 93 
to serve all persons or to serve certain specified dealers. 94 
(b) A dealer shall not refuse to accept at such dealer's place of 95 
business, from any person any empty beverage containers of the kind, 96 
size and brand sold by the dealer, or refuse to pay to such person the 97 
refund value of a beverage container unless (1) such container contains 98 
materials which are foreign to the normal contents of the container; (2) 99 
such container is not labeled in accordance with subsection (b) of 100 
section 22a-244, as amended by this act; (3) such dealer sponsors, solely 101 
or with others, a redemption center which is located within a [one-102 
mile] five-mile radius of such place of business and which accepts 103 
beverage containers of the kind, size and brand sold by such dealer at 104 
such place of business; or (4) there is established by others, a 105 
redemption center which is located within a [one-mile] five-mile 106 
radius of such place of business and which accepts beverage containers 107 
of the kind, size and brand sold by such dealer at such place of 108 
business. A dealer shall redeem an empty container of a kind, size or 109 
brand the sale of which has been discontinued by such dealer for not 110 
less than sixty days after the last sale by the dealer of such kind, size or 111  Substitute Bill No. 7294 
 
 
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brand of beverage container. Sixty days before such date, the dealer 112 
shall post, at the point of sale, notice of the last date on which the 113 
discontinued kind, size or brand of beverage container shall be 114 
redeemed. 115 
(c) A distributor shall not refuse to accept from a dealer or from an 116 
operator of a redemption center, located and operated exclusively 117 
within the territory of the distributor or whose operator certifies to the 118 
distributor that redeemed containers were from a dealer located within 119 
such territory, any empty beverage containers of the kind, size and 120 
brand sold by the distributor, or refuse to pay to such dealer or 121 
redemption center operator the refund value of a beverage container 122 
unless such container contains materials which are foreign to the 123 
normal contents of the container or unless such container is not labeled 124 
in accordance with subsection (b) of section 22a-244, as amended by 125 
this act. A distributor shall remove any empty beverage container from 126 
the premises of a dealer serviced by the distributor or from the 127 
premises of a redemption center sponsored by dealers serviced by the 128 
distributor, provided such premises are located within the territory of 129 
the distributor. The distributor shall pay the refund value to dealers in 130 
accordance with the schedule for payment by the dealer to the 131 
distributor for full beverage containers and shall pay such refund 132 
value to operators of redemption centers not more than twenty days 133 
after receipt of the empty container. For the purposes of this 134 
subsection, a redemption center shall be considered to be sponsored by 135 
a dealer if (1) the dealer refuses to redeem beverage containers and 136 
refers consumers to the redemption center, or (2) there is an agreement 137 
between the dealer and the operator of the redemption center 138 
requiring the redemption center to remove empty beverage containers 139 
from the premises of the dealer. A distributor shall redeem an empty 140 
container of a kind, size or brand of beverage container the sale of 141 
which has been discontinued by the distributor for not less than one 142 
hundred fifty days after the last delivery of such kind, size or brand of 143 
beverage container. Not less than one hundred twenty days before the 144 
last date such containers may be redeemed, the distributor shall notify 145  Substitute Bill No. 7294 
 
 
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such dealer who bought the discontinued kind, size or brand of 146 
beverage container that such distributor shall not redeem an empty 147 
beverage container of such kind, size or brand of beverage containers. 148 
(d) In addition to the refund value of a beverage container, a 149 
distributor shall pay to any dealer or operator of a redemption center a 150 
handling fee of at least [one] three and one-half cents for each 151 
container of beer or other malt beverage and [two] four and one-half 152 
cents for each beverage container of mineral waters, soda water and 153 
similar carbonated soft drinks or noncarbonated beverage returned for 154 
redemption. A distributor shall not be required to pay to a 155 
manufacturer the refund value of a nonrefillable beverage container. 156 
(e) The Commissioner of Energy and Environmental Protection shall 157 
adopt regulations, in accordance with the provisions of chapter 54, to 158 
implement the provisions of sections 22a-243 to 22a-245, inclusive, as 159 
amended by this act. Such regulations shall include, but not be limited 160 
to, provisions for the redemption of beverage containers dispensed 161 
through automatic vending machines, the use of vending machines 162 
that dispense cash to consumers for redemption of beverage 163 
containers, scheduling for redemption by dealers and distributors and 164 
for exemptions or modifications to the labeling requirement of section 165 
22a-244, as amended by this act. 166 
(f) For the purposes of this section, "refund value" means the refund 167 
value established by subsection (a) of section 22a-244, as amended by 168 
this act. 169 
Sec. 4. Section 22a-245a of the general statutes is repealed and the 170 
following is substituted in lieu thereof (Effective July 1, 2020): 171 
(a) Each deposit initiator shall open a special interest-bearing 172 
account at a Connecticut branch of a financial institution, as defined in 173 
section 45a-557a, to the credit of the deposit initiator. Each deposit 174 
initiator shall deposit in such account an amount equal to the refund 175 
value established pursuant to subsection (a) of section 22a-244, as 176  Substitute Bill No. 7294 
 
 
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amended by this act, for each beverage container sold by such deposit 177 
initiator. Such deposit shall be made not more than one month after 178 
the date such beverage container is sold, provided for any beverage 179 
container sold during the period from December 1, 2008, to December 180 
31, 2008, inclusive, such deposit shall be made not later than January 5, 181 
2009. All interest, dividends and returns earned on the special account 182 
shall be paid directly into such account. Such moneys shall be kept 183 
separate and apart from all other moneys in the possession of the 184 
deposit initiator. The amount required to be deposited pursuant to this 185 
section, when deposited, shall be held to be a special fund in trust for 186 
the state. 187 
(b) (1) Any reimbursement of the refund value for a redeemed 188 
beverage container shall be paid from the deposit initiator's special 189 
account, with such payment to be computed, subject to the provisions 190 
of subdivision (2) of this subsection, under the cash receipts and 191 
disbursements method of accounting, as described in Section 446(c)(1) 192 
of the Internal Revenue Code of 1986, or any subsequent 193 
corresponding Internal Revenue Code of the United States, as 194 
amended from time to time. 195 
(2) A deposit initiator may petition the Commissioner of Revenue 196 
Services for an alternate method of accounting by filing with such 197 
deposit initiator's return a statement of objections and other proposed 198 
alternate method of accounting, as such deposit initiator believes 199 
proper and equitable under the circumstances, that is accompanied by 200 
supporting details and proof. The Commissioner of Revenue Services 201 
shall promptly notify such deposit initiator whether the proposed 202 
alternate method is accepted as reasonable and equitable and, if so 203 
accepted, shall adjust such deposit initiator's return and payment of 204 
reimbursement accordingly. 205 
(c) (1) Each deposit initiator shall submit a report on March 15, 2009, 206 
for the period from December 1, 2008, to February 28, 2009, inclusive. 207 
Each deposit initiator shall submit a report on July 31, 2009, for the 208 
period from March 1, 2009, to June 30, 2009, inclusive, and thereafter 209  Substitute Bill No. 7294 
 
 
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shall submit a quarterly report for the immediately preceding calendar 210 
quarter one month after the close of such quarter. Each such report 211 
shall be submitted to the Commissioner of Energy and Environmental 212 
Protection, on a form prescribed by the commissioner and with such 213 
information as the commissioner deems necessary, including, but not 214 
limited to: (A) The balance in the special account at the beginning of 215 
the quarter for which the report is prepared; (B) a list of all deposits 216 
credited to such account during such quarter, including all refund 217 
values paid to the deposit initiator and all interest, dividends or 218 
returns received on the account; (C) a list of all withdrawals from such 219 
account during such quarter, all service charges and overdraft charges 220 
on the account and all payments made pursuant to subsection (d) of 221 
this section; and (D) the balance in the account at the close of the 222 
quarter for which the report is prepared. 223 
(2) Each deposit initiator shall submit a report on October 31, 2010, 224 
for the calendar quarter beginning July 1, 2010. Subsequently, each 225 
deposit initiator shall submit a quarterly report for the immediately 226 
preceding calendar quarter, on or before the last day of the month next 227 
succeeding the close of such quarter. Each such report shall be 228 
submitted to the Commissioner of Revenue Services, on a form 229 
prescribed by the Commissioner of Revenue Services, and with such 230 
information as the Commissioner of Revenue Services deems 231 
necessary, including, but not limited to, the following information: (A) 232 
The balance in the special account at the beginning of the quarter for 233 
which the report is prepared, (B) all deposits credited to such account 234 
during such quarter, including all refund values paid to the deposit 235 
initiator and all interest, dividends or returns received on such 236 
account, (C) all withdrawals from such account during such quarter, 237 
including all service charges and overdraft charges on such account 238 
and all payments made pursuant to subsection (d) of this section, and 239 
(D) the balance in such account at the close of the quarter for which the 240 
report is prepared. Such quarterly report shall be filed electronically 241 
with the Commissioner of Revenue Services, in the manner provided 242 
by chapter 228g. 243  Substitute Bill No. 7294 
 
 
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(d) (1) On or before April 30, 2009, each deposit initiator shall pay 244 
the balance outstanding in the special account that is attributable to the 245 
period from December 1, 2008, to March 31, 2009, inclusive, to the 246 
Commissioner of Energy and Environmental Protection for deposit in 247 
the General Fund. Thereafter, the balance outstanding in the special 248 
account that is attributable to the immediately preceding calendar 249 
quarter shall be paid by the deposit initiator one month after the close 250 
of such quarter to the Commissioner of Energy and Environmental 251 
Protection for deposit in the General Fund. If the amount of the 252 
required payment pursuant to this subdivision is not paid by the date 253 
seven days after the due date, a penalty of ten per cent of the amount 254 
due shall be added to the amount due. The amount due shall bear 255 
interest at the rate of one and one-half per cent per month or fraction 256 
thereof, from the due date. Any such penalty or interest shall not be 257 
paid from funds maintained in the special account. 258 
(2) On or before October 31, 2010, each deposit initiator shall pay the 259 
balance outstanding in the special account that is attributable to the 260 
period from July 1, 2010, to September 30, 2010, inclusive, to the 261 
Commissioner of Revenue Services for deposit in the General Fund. 262 
Subsequently, eighty per cent of the balance outstanding in the special 263 
account that is attributable to the immediately preceding calendar 264 
quarter shall be paid by the deposit initiator on or before the last day 265 
of the month next succeeding the close of such quarter to the 266 
Commissioner of Revenue Services for deposit in the General Fund. If 267 
the amount of the required payment pursuant to this subdivision is not 268 
paid on or before the due date, a penalty of ten per cent of the amount 269 
due and unpaid, or fifty dollars, whichever is greater, shall be 270 
imposed. The amount due and unpaid shall bear interest at the rate of 271 
one per cent per month or fraction thereof, from the due date. Any 272 
such penalty or interest shall not be paid from funds maintained in 273 
such special account. Such required payment shall be made by 274 
electronic funds transfer to the Commissioner of Revenue Services, in 275 
the manner provided by chapter 228g. 276  Substitute Bill No. 7294 
 
 
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(e) If moneys deposited in the special account are insufficient to pay 277 
for withdrawals authorized pursuant to subsection (b) of this section, 278 
the amount of such deficiency shall be subtracted from the next 279 
succeeding payment or payments due pursuant to subsection (d) of 280 
this section until the amount of the deficiency has been subtracted in 281 
full. 282 
(f) The Commissioner of Revenue Services may examine the 283 
accounts and records of any deposit initiator maintained under this 284 
section or sections 22a-243 to 22a-245, inclusive, as amended by this 285 
act, and any related accounts and records, including receipts, 286 
disbursements and such other items as the Commissioner of Revenue 287 
Services deems appropriate. 288 
(g) The Attorney General may, independently or upon complaint of 289 
the Commissioner of Energy and Environmental Protection or the 290 
Commissioner of Revenue Services, institute any appropriate action or 291 
proceeding to enforce any provision of this section or any regulation 292 
adopted pursuant to section 22a-245, as amended by this act, to 293 
implement the provisions of this section. 294 
(h) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 295 
12-555a shall be deemed to apply to the provisions of this section, 296 
except any provision of sections 12-548, 12-550 to 12-554, inclusive, and 297 
12-555a that is inconsistent with the provision in this section. 298 
(i) Any payment required pursuant to this section shall be treated as 299 
a tax for purposes of sections 12-30b, 12-33a, 12-35a, 12-39g and 12-39h. 300 
(j) Not later than July 1, 2010, the Department of Energy and 301 
Environmental Protection or successor agency shall establish a 302 
procedure that allows each such deposit initiator to take a credit 303 
against any payment made pursuant to subsection (d) of this section in 304 
the amount of the deposits refunded on beverage containers which 305 
such deposit initiator donated for any charitable purpose. 306 
Sec. 5. (NEW) (Effective October 1, 2019) The state shall have a 307  Substitute Bill No. 7294 
 
 
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redemption goal of ninety per cent for beverage containers, as defined 308 
in section 22a-243 of the general statutes, as amended by this act. The 309 
Commissioner of Energy and Environmental Protection may develop a 310 
strategy for attaining such goal. In developing any such strategy, the 311 
commissioner shall consult with municipalities, dealers and 312 
redemption centers, as defined in section 22a-243 of the general 313 
statutes, as amended by this act. The commissioner may report to the 314 
General Assembly and the Governor, from time to time, on the status 315 
of the state's attainment of such goal and any legislative 316 
recommendations for enabling such attainment or increasing such 317 
goal. 318 
Sec. 6. Section 22a-245b of the general statutes is repealed and the 319 
following is substituted in lieu thereof (Effective October 1, 2019): 320 
Any manufacturer who bottles and sells: [two] (1) Two hundred 321 
fifty thousand or fewer beverage containers containing a 322 
noncarbonated beverage that are twenty ounces or less in size each 323 
calendar year, or (2) one hundred thousand gallons or less of juice in 324 
beverage containers each calendar year, may apply to the 325 
Commissioner of Energy and Environmental Protection for an 326 
exemption from the requirements of sections 22a-244 to 22a-245a, 327 
inclusive, as amended by this act, with regard to such beverage 328 
containers containing noncarbonated beverages or with regard to such 329 
one hundred thousand gallons or less of juice in beverage containers. 330 
Such application shall be accompanied by a sworn affidavit signed by 331 
such manufacturer or such manufacturer's authorized agent certifying 332 
such manufacturer bottles and sells two hundred fifty thousand or 333 
fewer of such beverage containers per calendar year or bottles and sells 334 
one hundred thousand gallons or less of juice in beverage containers 335 
per calendar year. Any such application filed on or before April 1, 336 
2009, shall be deemed automatically approved and such exemption 337 
shall remain valid until December 31, 2009. Not later than November 1, 338 
2009, and each year thereafter, each such manufacturer or such 339 
manufacturer's authorized agent may apply to the commissioner for an 340  Substitute Bill No. 7294 
 
 
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exemption in accordance with this section on a form prescribed by the 341 
commissioner. The commissioner shall approve each such application 342 
not later than thirty days after the receipt of the application by the 343 
commissioner, provided the applicant satisfies the requirements of this 344 
section. 345 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 July 1, 2020 22a-243 
Sec. 2 July 1, 2022 22a-244 
Sec. 3 July 1, 2020 22a-245 
Sec. 4 July 1, 2020 22a-245a 
Sec. 5 October 1, 2019 New section 
Sec. 6 October 1, 2019 22a-245b 
 
ENV Joint Favorable Subst.  
FIN Joint Favorable