LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294-R02- HB.docx 1 of 12 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 Section 22a-243 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2020): 2 For purposes of sections 22a-243 to 22a-245c, inclusive: 3 (1) "Carbonated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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 2 of 12 (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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 3 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 4 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 5 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 6 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 7 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 8 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 9 of 12 (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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 10 of 12 (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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 11 of 12 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 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07294- R02-HB.docx } 12 of 12 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