Connecticut 2020 Regular Session

Connecticut House Bill HB05340 Compare Versions

Only one version of the bill is available at this time.
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55 General Assembly Raised Bill No. 5340
66 February Session, 2020
77 LCO No. 2000
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1010 Referred to Committee on ENVIRONMENT
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1313 Introduced by:
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1919 AN ACT CONCERNING TH E MODERNIZATION OF THE
2020 CONNECTICUT BOTTLE R EDEMPTION PROGRAM.
2121 Be it enacted by the Senate and House of Representatives in General
2222 Assembly convened:
2323
2424 Section 1. Section 22a-243 of the general statutes is repealed and the 1
2525 following is substituted in lieu thereof (Effective July 1, 2021): 2
2626 For purposes of sections 22a-243 to 22a-245c, inclusive: 3
2727 (1) "Carbonated beverage" means beer or other malt beverages, and 4
2828 mineral waters, soda water and similar carbonated soft drinks in liquid 5
2929 form and intended for human consumption; 6
3030 (2) "Noncarbonated beverage" means water, including flavored 7
3131 water, nutritionally enhanced water, juice, tea, sports drink or energy 8
3232 drink and any beverage that is identified through the use of letters, 9
3333 words or symbols on such beverage's product label as a type of water, 10
3434 juice, tea, sports drink or energy drink but excluding [juice and] mineral 11
3535 water; 12
3636 (3) "Beverage container" means the individual, separate, sealed glass, 13
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4343 metal or plastic bottle, can, jar or carton containing a carbonated or 14
4444 noncarbonated beverage, but does not include a bottle, can, jar or carton 15
4545 (A) three liters or more in size if containing a noncarbonated beverage, 16
4646 or (B) made of high-density polyethylene; 17
4747 (4) "Consumer" means every person who purchases a beverage in a 18
4848 beverage container for use or consumption; 19
4949 (5) "Dealer" means every person who engages in the sale of beverages 20
5050 in beverage containers to a consumer; 21
5151 (6) "Distributor" means every person who engages in the sale of 22
5252 beverages in beverage containers to a dealer in this state including any 23
5353 manufacturer who engages in such sale and includes a dealer who 24
5454 engages in the sale of beverages in beverage containers on which no 25
5555 deposit has been collected prior to retail sale; 26
5656 (7) "Manufacturer" means every person bottling, canning or 27
5757 otherwise filling beverage containers for sale to distributors or dealers 28
5858 or, in the case of private label brands, the owner of the private label 29
5959 trademark; 30
6060 (8) "Place of business of a dealer" means the fixed location at which a 31
6161 dealer sells or offers for sale beverages in beverage containers to 32
6262 consumers; 33
6363 (9) "Redemption center" means any facility established to redeem 34
6464 empty beverage containers from consumers or to collect and sort empty 35
6565 beverage containers from dealers and to prepare such containers for 36
6666 redemption by the appropriate distributors; 37
6767 (10) "Use or consumption" includes the exercise of any right or power 38
6868 over a beverage incident to the ownership thereof, other than the sale or 39
6969 the keeping or retention of a beverage for the purposes of sale; 40
7070 (11) "Nonrefillable beverage container" means a beverage container 41
7171 which is not designed to be refilled and reused in its original shape; and 42
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7878 (12) "Deposit initiator" means the first distributor to collect the 43
7979 deposit on a beverage container sold to any person within this state. 44
8080 Sec. 2. Section 22a-244 of the general statutes is repealed and the 45
8181 following is substituted in lieu thereof (Effective July 1, 2023): 46
8282 (a) (1) Every beverage container containing a carbonated beverage 47
8383 sold or offered for sale in this state, except for any such beverage 48
8484 containers sold or offered for sale for consumption on an interstate 49
8585 passenger carrier, shall have a refund value. Such refund value shall not 50
8686 be less than [five] ten cents and shall be a uniform amount throughout 51
8787 the distribution process in this state. (2) Every beverage container 52
8888 containing a noncarbonated beverage sold or offered for sale in this state 53
8989 shall have a refund value, except for beverage containers containing a 54
9090 noncarbonated beverage that are (A) sold or offered for sale for 55
9191 consumption on an interstate passenger carrier, or (B) that comprise any 56
9292 dealer's existing inventory as of March 31, 2009. Such refund value shall 57
9393 not be less than [five] ten cents and shall be a uniform amount 58
9494 throughout the distribution process in this state. 59
9595 (b) Every beverage container sold or offered for sale in this state, that 60
9696 has a refund value pursuant to subsection (a) of this section, shall clearly 61
9797 indicate by embossing or by a stamp or by a label or other method 62
9898 securely affixed to the beverage container (1) either the refund value of 63
9999 the container or the words "return for deposit" or "return for refund" or 64
100100 other words as approved by the Department of Energy and 65
101101 Environmental Protection, and (2) either the word "Connecticut" or the 66
102102 abbreviation "Ct.", provided this subdivision shall not apply to glass 67
103103 beverage containers permanently marked or embossed with a brand 68
104104 name. 69
105105 (c) No person shall sell or offer for sale in this state any metal 70
106106 beverage container (1) a part of which is designed to be detached in 71
107107 order to open such container, or (2) that is connected to another 72
108108 beverage container by a device constructed of a material which does not 73
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115115 decompose by photodegradation, chemical degradation or 74
116116 biodegradation within a reasonable time after exposure to the elements. 75
117117 Sec. 3. Section 22a-245 of the general statutes is repealed and the 76
118118 following is substituted in lieu thereof (Effective July 1, 2021): 77
119119 (a) No person shall establish a redemption center without registering 78
120120 with the commissioner on a form provided by the commissioner with 79
121121 such information as the commissioner deems necessary including (1) the 80
122122 name of the business principals of the redemption center and the 81
123123 address of the business; (2) the name and address of the sponsors and 82
124124 dealers to be served by the redemption center; (3) the types of beverage 83
125125 containers to be accepted; (4) the hours of operation; and (5) whether 84
126126 beverage containers will be accepted from consumers. The operator of 85
127127 the redemption center shall report any change in procedure to the 86
128128 commissioner within forty-eight hours of such change. Any person 87
129129 establishing a redemption center shall have the right to determine what 88
130130 kind, size and brand of beverage container shall be accepted. Any 89
131131 redemption center may be established to serve all persons or to serve 90
132132 certain specified dealers. 91
133133 (b) A dealer shall not refuse to accept at such dealer's place of 92
134134 business, from any person any empty beverage containers of the kind, 93
135135 size and brand sold by the dealer, or refuse to pay to such person the 94
136136 refund value of a beverage container unless (1) such container contains 95
137137 materials which are foreign to the normal contents of the container; (2) 96
138138 such container is not labeled in accordance with subsection (b) of section 97
139139 22a-244, as amended by this act; (3) such dealer sponsors, solely or with 98
140140 others, a redemption center which is located within a one-mile radius of 99
141141 such place of business and which accepts beverage containers of the 100
142142 kind, size and brand sold by such dealer at such place of business; or (4) 101
143143 there is established by others, a redemption center which is located 102
144144 within a one-mile radius of such place of business and which accepts 103
145145 beverage containers of the kind, size and brand sold by such dealer at 104
146146 such place of business. A dealer shall redeem an empty container of a 105
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153153 kind, size or brand the sale of which has been discontinued by such 106
154154 dealer for not less than sixty days after the last sale by the dealer of such 107
155155 kind, size or brand of beverage container. Sixty days before such date, 108
156156 the dealer shall post, at the point of sale, notice of the last date on which 109
157157 the discontinued kind, size or brand of beverage container shall be 110
158158 redeemed. 111
159159 (c) A distributor shall not refuse to accept from a dealer or from an 112
160160 operator of a redemption center, located and operated exclusively 113
161161 within the territory of the distributor or whose operator certifies to the 114
162162 distributor that redeemed containers were from a dealer located within 115
163163 such territory, any empty beverage containers of the kind, size and 116
164164 brand sold by the distributor, or refuse to pay to such dealer or 117
165165 redemption center operator the refund value of a beverage container 118
166166 unless such container contains materials which are foreign to the normal 119
167167 contents of the container or unless such container is not labeled in 120
168168 accordance with subsection (b) of section 22a-244, as amended by this 121
169169 act. A distributor shall remove any empty beverage container from the 122
170170 premises of a dealer serviced by the distributor or from the premises of 123
171171 a redemption center sponsored by dealers serviced by the distributor, 124
172172 provided such premises are located within the territory of the 125
173173 distributor. The distributor shall pay the refund value to dealers in 126
174174 accordance with the schedule for payment by the dealer to the 127
175175 distributor for full beverage containers and shall pay such refund value 128
176176 to operators of redemption centers not more than twenty days after 129
177177 receipt of the empty container. For the purposes of this subsection, a 130
178178 redemption center shall be considered to be sponsored by a dealer if (1) 131
179179 the dealer refuses to redeem beverage containers and refers consumers 132
180180 to the redemption center, or (2) there is an agreement between the dealer 133
181181 and the operator of the redemption center requiring the redemption 134
182182 center to remove empty beverage containers from the premises of the 135
183183 dealer. A distributor shall redeem an empty container of a kind, size or 136
184184 brand of beverage container the sale of which has been discontinued by 137
185185 the distributor for not less than one hundred fifty days after the last 138
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192192 delivery of such kind, size or brand of beverage container. Not less than 139
193193 one hundred twenty days before the last date such containers may be 140
194194 redeemed, the distributor shall notify such dealer who bought the 141
195195 discontinued kind, size or brand of beverage container that such 142
196196 distributor shall not redeem an empty beverage container of such kind, 143
197197 size or brand of beverage containers. 144
198198 (d) In addition to the refund value of a beverage container, a 145
199199 distributor shall pay to any dealer or operator of a redemption center a 146
200200 handling fee of at least [one] three and one-half cents for each container 147
201201 of beer or other malt beverage and [two] three and one-half cents for 148
202202 each beverage container of mineral waters, soda water and similar 149
203203 carbonated soft drinks or noncarbonated beverage returned for 150
204204 redemption. A distributor shall not be required to pay to a manufacturer 151
205205 the refund value of a nonrefillable beverage container. 152
206206 (e) The Commissioner of Energy and Environmental Protection shall 153
207207 adopt regulations, in accordance with the provisions of chapter 54, to 154
208208 implement the provisions of sections 22a-243 to 22a-245, inclusive, as 155
209209 amended by this act. Such regulations shall include, but not be limited 156
210210 to, provisions for the redemption of beverage containers dispensed 157
211211 through automatic vending machines, the use of vending machines that 158
212212 dispense cash to consumers for redemption of beverage containers, 159
213213 scheduling for redemption by dealers and distributors and for 160
214214 exemptions or modifications to the labeling requirement of section 22a-161
215215 244, as amended by this act. 162
216216 (f) For the purposes of this section, "refund value" means the refund 163
217217 value established by subsection (a) of section 22a-244, as amended by 164
218218 this act. 165
219219 Sec. 4. Section 22a-245a of the general statutes is repealed and the 166
220220 following is substituted in lieu thereof (Effective July 1, 2021): 167
221221 (a) Each deposit initiator shall open a special interest-bearing account 168
222222 at a Connecticut branch of a financial institution, as defined in section 169
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229229 45a-557a, to the credit of the deposit initiator. Each deposit initiator shall 170
230230 deposit in such account an amount equal to the refund value established 171
231231 pursuant to subsection (a) of section 22a-244, as amended by this act, for 172
232232 each beverage container sold by such deposit initiator. Such deposit 173
233233 shall be made not more than one month after the date such beverage 174
234234 container is sold, provided for any beverage container sold during the 175
235235 period from December 1, 2008, to December 31, 2008, inclusive, such 176
236236 deposit shall be made not later than January 5, 2009. All interest, 177
237237 dividends and returns earned on the special account shall be paid 178
238238 directly into such account. Such moneys shall be kept separate and apart 179
239239 from all other moneys in the possession of the deposit initiator. The 180
240240 amount required to be deposited pursuant to this section, when 181
241241 deposited, shall be held to be a special fund in trust for the state. 182
242242 (b) (1) Any reimbursement of the refund value for a redeemed 183
243243 beverage container shall be paid from the deposit initiator's special 184
244244 account, with such payment to be computed, subject to the provisions 185
245245 of subdivision (2) of this subsection, under the cash receipts and 186
246246 disbursements method of accounting, as described in Section 446(c)(1) 187
247247 of the Internal Revenue Code of 1986, or any subsequent corresponding 188
248248 Internal Revenue Code of the United States, as amended from time to 189
249249 time. 190
250250 (2) A deposit initiator may petition the Commissioner of Revenue 191
251251 Services for an alternate method of accounting by filing with such 192
252252 deposit initiator's return a statement of objections and other proposed 193
253253 alternate method of accounting, as such deposit initiator believes proper 194
254254 and equitable under the circumstances, that is accompanied by 195
255255 supporting details and proof. The Commissioner of Revenue Services 196
256256 shall promptly notify such deposit initiator whether the proposed 197
257257 alternate method is accepted as reasonable and equitable and, if so 198
258258 accepted, shall adjust such deposit initiator's return and payment of 199
259259 reimbursement accordingly. 200
260260 (c) (1) Each deposit initiator shall submit a report on March 15, 2009, 201
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267267 for the period from December 1, 2008, to February 28, 2009, inclusive. 202
268268 Each deposit initiator shall submit a report on July 31, 2009, for the 203
269269 period from March 1, 2009, to June 30, 2009, inclusive, and thereafter 204
270270 shall submit a quarterly report for the immediately preceding calendar 205
271271 quarter one month after the close of such quarter. Each such report shall 206
272272 be submitted to the Commissioner of Energy and Environmental 207
273273 Protection, on a form prescribed by the commissioner and with such 208
274274 information as the commissioner deems necessary, including, but not 209
275275 limited to: (A) The balance in the special account at the beginning of the 210
276276 quarter for which the report is prepared; (B) a list of all deposits credited 211
277277 to such account during such quarter, including all refund values paid to 212
278278 the deposit initiator and all interest, dividends or returns received on 213
279279 the account; (C) a list of all withdrawals from such account during such 214
280280 quarter, all service charges and overdraft charges on the account and all 215
281281 payments made pursuant to subsection (d) of this section; and (D) the 216
282282 balance in the account at the close of the quarter for which the report is 217
283283 prepared. 218
284284 (2) Each deposit initiator shall submit a report on October 31, 2010, 219
285285 for the calendar quarter beginning July 1, 2010. Subsequently, each 220
286286 deposit initiator shall submit a quarterly report for the immediately 221
287287 preceding calendar quarter, on or before the last day of the month next 222
288288 succeeding the close of such quarter. Each such report shall be 223
289289 submitted to the Commissioner of Revenue Services, on a form 224
290290 prescribed by the Commissioner of Revenue Services, and with such 225
291291 information as the Commissioner of Revenue Services deems necessary, 226
292292 including, but not limited to, the following information: (A) The balance 227
293293 in the special account at the beginning of the quarter for which the 228
294294 report is prepared, (B) all deposits credited to such account during such 229
295295 quarter, including all refund values paid to the deposit initiator and all 230
296296 interest, dividends or returns received on such account, (C) all 231
297297 withdrawals from such account during such quarter, including all 232
298298 service charges and overdraft charges on such account and all payments 233
299299 made pursuant to subsection (d) of this section, and (D) the balance in 234
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306306 such account at the close of the quarter for which the report is prepared. 235
307307 Such quarterly report shall be filed electronically with the 236
308308 Commissioner of Revenue Services, in the manner provided by chapter 237
309309 228g. 238
310310 (d) (1) On or before April 30, 2009, each deposit initiator shall pay the 239
311311 balance outstanding in the special account that is attributable to the 240
312312 period from December 1, 2008, to March 31, 2009, inclusive, to the 241
313313 Commissioner of Energy and Environmental Protection for deposit in 242
314314 the General Fund. Thereafter, the balance outstanding in the special 243
315315 account that is attributable to the immediately preceding calendar 244
316316 quarter shall be paid by the deposit initiator one month after the close 245
317317 of such quarter to the Commissioner of Energy and Environmental 246
318318 Protection for deposit in the General Fund. If the amount of the required 247
319319 payment pursuant to this subdivision is not paid by the date seven days 248
320320 after the due date, a penalty of ten per cent of the amount due shall be 249
321321 added to the amount due. The amount due shall bear interest at the rate 250
322322 of one and one-half per cent per month or fraction thereof, from the due 251
323323 date. Any such penalty or interest shall not be paid from funds 252
324324 maintained in the special account. 253
325325 (2) On or before October 31, 2010, each deposit initiator shall pay the 254
326326 balance outstanding in the special account that is attributable to the 255
327327 period from July 1, 2010, to September 30, 2010, inclusive, to the 256
328328 Commissioner of Revenue Services for deposit in the General Fund. 257
329329 Subsequently, for the fiscal years ending June 30, 2022, and June 30, 258
330330 2023, eighty-two per cent of the balance outstanding in the special 259
331331 account that is attributable to the immediately preceding calendar 260
332332 quarter shall be paid by the deposit initiator on or before the last day of 261
333333 the month next succeeding the close of such quarter to the 262
334334 Commissioner of Revenue Services for deposit in the General Fund and 263
335335 for the fiscal year ending June 30, 2024, and each subsequent fiscal year 264
336336 thereafter, eighty per cent of the balance outstanding in the special 265
337337 account that is attributable to the immediately preceding calendar 266
338338 quarter shall be paid by the deposit initiator on or before the last day of 267
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345345 the month next succeeding the close of such quarter to t he 268
346346 Commissioner of Revenue Services for deposit in the General Fund. If 269
347347 the amount of the required payment pursuant to this subdivision is not 270
348348 paid on or before the due date, a penalty of ten per cent of the amount 271
349349 due and unpaid, or fifty dollars, whichever is greater, shall be imposed. 272
350350 The amount due and unpaid shall bear interest at the rate of one per cent 273
351351 per month or fraction thereof, from the due date. Any such penalty or 274
352352 interest shall not be paid from funds maintained in such special account. 275
353353 Such required payment shall be made by electronic funds transfer to the 276
354354 Commissioner of Revenue Services, in the manner provided by chapter 277
355355 228g. 278
356356 (e) If moneys deposited in the special account are insufficient to pay 279
357357 for withdrawals authorized pursuant to subsection (b) of this section, 280
358358 the amount of such deficiency shall be subtracted from the next 281
359359 succeeding payment or payments due pursuant to subsection (d) of this 282
360360 section until the amount of the deficiency has been subtracted in full. 283
361361 (f) The Commissioner of Revenue Services may examine the accounts 284
362362 and records of any deposit initiator maintained under this section or 285
363363 sections 22a-243 to 22a-245, inclusive, as amended by this act, and any 286
364364 related accounts and records, including receipts, disbursements and 287
365365 such other items as the Commissioner of Revenue Services deems 288
366366 appropriate. 289
367367 (g) The Attorney General may, independently or upon complaint of 290
368368 the Commissioner of Energy and Environmental Protection or the 291
369369 Commissioner of Revenue Services, institute any appropriate action or 292
370370 proceeding to enforce any provision of this section or any regulation 293
371371 adopted pursuant to section 22a-245, as amended by this act, to 294
372372 implement the provisions of this section. 295
373373 (h) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 296
374374 12-555a shall be deemed to apply to the provisions of this section, except 297
375375 any provision of sections 12-548, 12-550 to 12-554, inclusive, and 12-555a 298
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382382 that is inconsistent with the provision in this section. 299
383383 (i) Any payment required pursuant to this section shall be treated as 300
384384 a tax for purposes of sections 12-30b, 12-33a, 12-35a, 12-39g and 12-39h. 301
385385 (j) Not later than July 1, 2010, the Department of Energy and 302
386386 Environmental Protection or successor agency shall establish a 303
387387 procedure that allows each such deposit initiator to take a credit against 304
388388 any payment made pursuant to subsection (d) of this section in the 305
389389 amount of the deposits refunded on beverage containers which such 306
390390 deposit initiator donated for any charitable purpose. 307
391391 Sec. 5. (NEW) (Effective October 1, 2020) The state shall have a 308
392392 redemption goal of ninety per cent for beverage containers, as defined 309
393393 in section 22a-243 of the general statutes, as amended by this act. The 310
394394 Commissioner of Energy and Environmental Protection may develop a 311
395395 strategy for attaining such goal. In developing any such strategy, the 312
396396 commissioner shall consult with municipalities, dealers and redemption 313
397397 centers, as defined in section 22a-243 of the general statutes, as amended 314
398398 by this act. The commissioner may report to the General Assembly and 315
399399 the Governor, from time to time, on the status of the state's attainment 316
400400 of such goal and any legislative recommendations for enabling such 317
401401 attainment or increasing such goal. 318
402402 Sec. 6. Section 22a-245b of the general statutes is repealed and the 319
403403 following is substituted in lieu thereof (Effective July 1, 2021): 320
404404 Any manufacturer who bottles and sells: [two] (1) Two hundred fifty 321
405405 thousand or fewer beverage containers containing a noncarbonated 322
406406 beverage that are twenty ounces or less in size each calendar year, or (2) 323
407407 one hundred thousand gallons or less of juice in beverage containers 324
408408 each calendar year, may apply to the Commissioner of Energy and 325
409409 Environmental Protection for an exemption from the requirements of 326
410410 sections 22a-244 to 22a-245a, inclusive, as amended by this act, with 327
411411 regard to such beverage containers containing noncarbonated 328
412412 beverages or with regard to such one hundred thousand gallons or less 329
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419419 of juice in beverage containers. Such application shall be accompanied 330
420420 by a sworn affidavit signed by such manufacturer or such 331
421421 manufacturer's authorized agent certifying such manufacturer bottles 332
422422 and sells two hundred fifty thousand or fewer of such beverage 333
423423 containers per calendar year or bottles and sells one hundred thousand 334
424424 gallons or less of juice in beverage containers per calendar year. Any 335
425425 such application filed on or before April 1, 2009, shall be deemed 336
426426 automatically approved and such exemption shall remain valid until 337
427427 December 31, 2009. Not later than November 1, 2009, and each year 338
428428 thereafter, each such manufacturer or such manufacturer's authorized 339
429429 agent may apply to the commissioner for an exemption in accordance 340
430430 with this section on a form prescribed by the commissioner. The 341
431431 commissioner shall approve each such application not later than thirty 342
432432 days after the receipt of the application by the commissioner, provided 343
433433 the applicant satisfies the requirements of this section. 344
434434 This act shall take effect as follows and shall amend the following
435435 sections:
436436
437437 Section 1 July 1, 2021 22a-243
438438 Sec. 2 July 1, 2023 22a-244
439439 Sec. 3 July 1, 2021 22a-245
440440 Sec. 4 July 1, 2021 22a-245a
441441 Sec. 5 October 1, 2020 New section
442442 Sec. 6 July 1, 2021 22a-245b
443443
444444 Statement of Purpose:
445445 To modernize the functioning of the Connecticut Bottle Bill by
446446 expanding its coverage and increasing certain fees paid pursuant to the
447447 bottle redemption program.
448448
449449 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
450450 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
451451 underlined.]
452452