LCO No. 2000 1 of 12 General Assembly Raised Bill No. 5340 February Session, 2020 LCO No. 2000 Referred to Committee on ENVIRONMENT Introduced by: (ENV) AN ACT CONCERNING TH E MODERNIZATION OF THE CONNECTICUT BOTTLE R EDEMPTION PROGRAM. 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 Section 22a-243 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2021): 2 For purposes of sections 22a-243 to 22a-245c, inclusive: 3 (1) "Carbonated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] mineral 11 water; 12 (3) "Beverage container" means the individual, separate, sealed glass, 13 Raised Bill No. 5340 LCO No. 2000 2 of 12 metal or plastic bottle, can, jar or carton containing a carbonated or 14 noncarbonated beverage, but does not include a bottle, can, jar or carton 15 (A) three liters or more in size if containing a noncarbonated beverage, 16 or (B) made of high-density polyethylene; 17 (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 beverages 20 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 a 31 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 empty 35 beverage containers from dealers and to prepare such containers for 36 redemption by the appropriate distributors; 37 (10) "Use or consumption" includes the exercise of any right or power 38 over a beverage incident to the ownership thereof, other than the sale or 39 the keeping or retention of a beverage for the purposes of sale; 40 (11) "Nonrefillable beverage container" means a beverage container 41 which is not designed to be refilled and reused in its original shape; and 42 Raised Bill No. 5340 LCO No. 2000 3 of 12 (12) "Deposit initiator" means the first distributor to collect the 43 deposit on a beverage container sold to any person within this state. 44 Sec. 2. Section 22a-244 of the general statutes is repealed and the 45 following is substituted in lieu thereof (Effective July 1, 2023): 46 (a) (1) Every beverage container containing a carbonated beverage 47 sold or offered for sale in this state, except for any such beverage 48 containers sold or offered for sale for consumption on an interstate 49 passenger carrier, shall have a refund value. Such refund value shall not 50 be less than [five] ten cents and shall be a uniform amount throughout 51 the distribution process in this state. (2) Every beverage container 52 containing a noncarbonated beverage sold or offered for sale in this state 53 shall have a refund value, except for beverage containers containing a 54 noncarbonated beverage that are (A) sold or offered for sale for 55 consumption on an interstate passenger carrier, or (B) that comprise any 56 dealer's existing inventory as of March 31, 2009. Such refund value shall 57 not be less than [five] ten cents and shall be a uniform amount 58 throughout the distribution process in this state. 59 (b) Every beverage container sold or offered for sale in this state, that 60 has a refund value pursuant to subsection (a) of this section, shall clearly 61 indicate by embossing or by a stamp or by a label or other method 62 securely affixed to the beverage container (1) either the refund value of 63 the container or the words "return for deposit" or "return for refund" or 64 other words as approved by the Department of Energy and 65 Environmental Protection, and (2) either the word "Connecticut" or the 66 abbreviation "Ct.", provided this subdivision shall not apply to glass 67 beverage containers permanently marked or embossed with a brand 68 name. 69 (c) No person shall sell or offer for sale in this state any metal 70 beverage container (1) a part of which is designed to be detached in 71 order to open such container, or (2) that is connected to another 72 beverage container by a device constructed of a material which does not 73 Raised Bill No. 5340 LCO No. 2000 4 of 12 decompose by photodegradation, chemical degradation or 74 biodegradation within a reasonable time after exposure to the elements. 75 Sec. 3. Section 22a-245 of the general statutes is repealed and the 76 following is substituted in lieu thereof (Effective July 1, 2021): 77 (a) No person shall establish a redemption center without registering 78 with the commissioner on a form provided by the commissioner with 79 such information as the commissioner deems necessary including (1) the 80 name of the business principals of the redemption center and the 81 address of the business; (2) the name and address of the sponsors and 82 dealers to be served by the redemption center; (3) the types of beverage 83 containers to be accepted; (4) the hours of operation; and (5) whether 84 beverage containers will be accepted from consumers. The operator of 85 the redemption center shall report any change in procedure to the 86 commissioner within forty-eight hours of such change. Any person 87 establishing a redemption center shall have the right to determine what 88 kind, size and brand of beverage container shall be accepted. Any 89 redemption center may be established to serve all persons or to serve 90 certain specified dealers. 91 (b) A dealer shall not refuse to accept at such dealer's place of 92 business, from any person any empty beverage containers of the kind, 93 size and brand sold by the dealer, or refuse to pay to such person the 94 refund value of a beverage container unless (1) such container contains 95 materials which are foreign to the normal contents of the container; (2) 96 such container is not labeled in accordance with subsection (b) of section 97 22a-244, as amended by this act; (3) such dealer sponsors, solely or with 98 others, a redemption center which is located within a one-mile radius of 99 such place of business and which accepts beverage containers of the 100 kind, size and brand sold by such dealer at such place of business; or (4) 101 there is established by others, a redemption center which is located 102 within a one-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. A dealer shall redeem an empty container of a 105 Raised Bill No. 5340 LCO No. 2000 5 of 12 kind, size or brand the sale of which has been discontinued by such 106 dealer for not less than sixty days after the last sale by the dealer of such 107 kind, size or brand of beverage container. Sixty days before such date, 108 the dealer shall post, at the point of sale, notice of the last date on which 109 the discontinued kind, size or brand of beverage container shall be 110 redeemed. 111 (c) A distributor shall not refuse to accept from a dealer or from an 112 operator of a redemption center, located and operated exclusively 113 within the territory of the distributor or whose operator certifies to the 114 distributor that redeemed containers were from a dealer located within 115 such territory, any empty beverage containers of the kind, size and 116 brand sold by the distributor, or refuse to pay to such dealer or 117 redemption center operator the refund value of a beverage container 118 unless such container contains materials which are foreign to the normal 119 contents of the container or unless such container is not labeled in 120 accordance with subsection (b) of section 22a-244, as amended by this 121 act. A distributor shall remove any empty beverage container from the 122 premises of a dealer serviced by the distributor or from the premises of 123 a redemption center sponsored by dealers serviced by the distributor, 124 provided such premises are located within the territory of the 125 distributor. The distributor shall pay the refund value to dealers in 126 accordance with the schedule for payment by the dealer to the 127 distributor for full beverage containers and shall pay such refund value 128 to operators of redemption centers not more than twenty days after 129 receipt of the empty container. For the purposes of this subsection, a 130 redemption center shall be considered to be sponsored by a dealer if (1) 131 the dealer refuses to redeem beverage containers and refers consumers 132 to the redemption center, or (2) there is an agreement between the dealer 133 and the operator of the redemption center requiring the redemption 134 center to remove empty beverage containers from the premises of the 135 dealer. A distributor shall redeem an empty container of a kind, size or 136 brand of beverage container the sale of which has been discontinued by 137 the distributor for not less than one hundred fifty days after the last 138 Raised Bill No. 5340 LCO No. 2000 6 of 12 delivery of such kind, size or brand of beverage container. Not less than 139 one hundred twenty days before the last date such containers may be 140 redeemed, the distributor shall notify such dealer who bought the 141 discontinued kind, size or brand of beverage container that such 142 distributor shall not redeem an empty beverage container of such kind, 143 size or brand of beverage containers. 144 (d) In addition to the refund value of a beverage container, a 145 distributor shall pay to any dealer or operator of a redemption center a 146 handling fee of at least [one] three and one-half cents for each container 147 of beer or other malt beverage and [two] three and one-half cents for 148 each beverage container of mineral waters, soda water and similar 149 carbonated soft drinks or noncarbonated beverage returned for 150 redemption. A distributor shall not be required to pay to a manufacturer 151 the refund value of a nonrefillable beverage container. 152 (e) The Commissioner of Energy and Environmental Protection shall 153 adopt regulations, in accordance with the provisions of chapter 54, to 154 implement the provisions of sections 22a-243 to 22a-245, inclusive, as 155 amended by this act. Such regulations shall include, but not be limited 156 to, provisions for the redemption of beverage containers dispensed 157 through automatic vending machines, the use of vending machines that 158 dispense cash to consumers for redemption of beverage containers, 159 scheduling for redemption by dealers and distributors and for 160 exemptions or modifications to the labeling requirement of section 22a-161 244, as amended by this act. 162 (f) For the purposes of this section, "refund value" means the refund 163 value established by subsection (a) of section 22a-244, as amended by 164 this act. 165 Sec. 4. Section 22a-245a of the general statutes is repealed and the 166 following is substituted in lieu thereof (Effective July 1, 2021): 167 (a) Each deposit initiator shall open a special interest-bearing account 168 at a Connecticut branch of a financial institution, as defined in section 169 Raised Bill No. 5340 LCO No. 2000 7 of 12 45a-557a, to the credit of the deposit initiator. Each deposit initiator shall 170 deposit in such account an amount equal to the refund value established 171 pursuant to subsection (a) of section 22a-244, as amended by this act, for 172 each beverage container sold by such deposit initiator. Such deposit 173 shall be made not more than one month after the date such beverage 174 container is sold, provided for any beverage container sold during the 175 period from December 1, 2008, to December 31, 2008, inclusive, such 176 deposit shall be made not later than January 5, 2009. All interest, 177 dividends and returns earned on the special account shall be paid 178 directly into such account. Such moneys shall be kept separate and apart 179 from all other moneys in the possession of the deposit initiator. The 180 amount required to be deposited pursuant to this section, when 181 deposited, shall be held to be a special fund in trust for the state. 182 (b) (1) Any reimbursement of the refund value for a redeemed 183 beverage container shall be paid from the deposit initiator's special 184 account, with such payment to be computed, subject to the provisions 185 of subdivision (2) of this subsection, under the cash receipts and 186 disbursements method of accounting, as described in Section 446(c)(1) 187 of the Internal Revenue Code of 1986, or any subsequent corresponding 188 Internal Revenue Code of the United States, as amended from time to 189 time. 190 (2) A deposit initiator may petition the Commissioner of Revenue 191 Services for an alternate method of accounting by filing with such 192 deposit initiator's return a statement of objections and other proposed 193 alternate method of accounting, as such deposit initiator believes proper 194 and equitable under the circumstances, that is accompanied by 195 supporting details and proof. The Commissioner of Revenue Services 196 shall promptly notify such deposit initiator whether the proposed 197 alternate method is accepted as reasonable and equitable and, if so 198 accepted, shall adjust such deposit initiator's return and payment of 199 reimbursement accordingly. 200 (c) (1) Each deposit initiator shall submit a report on March 15, 2009, 201 Raised Bill No. 5340 LCO No. 2000 8 of 12 for the period from December 1, 2008, to February 28, 2009, inclusive. 202 Each deposit initiator shall submit a report on July 31, 2009, for the 203 period from March 1, 2009, to June 30, 2009, inclusive, and thereafter 204 shall submit a quarterly report for the immediately preceding calendar 205 quarter one month after the close of such quarter. Each such report shall 206 be submitted to the Commissioner of Energy and Environmental 207 Protection, on a form prescribed by the commissioner and with such 208 information as the commissioner deems necessary, including, but not 209 limited to: (A) The balance in the special account at the beginning of the 210 quarter for which the report is prepared; (B) a list of all deposits credited 211 to such account during such quarter, including all refund values paid to 212 the deposit initiator and all interest, dividends or returns received on 213 the account; (C) a list of all withdrawals from such account during such 214 quarter, all service charges and overdraft charges on the account and all 215 payments made pursuant to subsection (d) of this section; and (D) the 216 balance in the account at the close of the quarter for which the report is 217 prepared. 218 (2) Each deposit initiator shall submit a report on October 31, 2010, 219 for the calendar quarter beginning July 1, 2010. Subsequently, each 220 deposit initiator shall submit a quarterly report for the immediately 221 preceding calendar quarter, on or before the last day of the month next 222 succeeding the close of such quarter. Each such report shall be 223 submitted to the Commissioner of Revenue Services, on a form 224 prescribed by the Commissioner of Revenue Services, and with such 225 information as the Commissioner of Revenue Services deems necessary, 226 including, but not limited to, the following information: (A) The balance 227 in the special account at the beginning of the quarter for which the 228 report is prepared, (B) all deposits credited to such account during such 229 quarter, including all refund values paid to the deposit initiator and all 230 interest, dividends or returns received on such account, (C) all 231 withdrawals from such account during such quarter, including all 232 service charges and overdraft charges on such account and all payments 233 made pursuant to subsection (d) of this section, and (D) the balance in 234 Raised Bill No. 5340 LCO No. 2000 9 of 12 such account at the close of the quarter for which the report is prepared. 235 Such quarterly report shall be filed electronically with the 236 Commissioner of Revenue Services, in the manner provided by chapter 237 228g. 238 (d) (1) On or before April 30, 2009, each deposit initiator shall pay the 239 balance outstanding in the special account that is attributable to the 240 period from December 1, 2008, to March 31, 2009, inclusive, to the 241 Commissioner of Energy and Environmental Protection for deposit in 242 the General Fund. Thereafter, the balance outstanding in the special 243 account that is attributable to the immediately preceding calendar 244 quarter shall be paid by the deposit initiator one month after the close 245 of such quarter to the Commissioner of Energy and Environmental 246 Protection for deposit in the General Fund. If the amount of the required 247 payment pursuant to this subdivision is not paid by the date seven days 248 after the due date, a penalty of ten per cent of the amount due shall be 249 added to the amount due. The amount due shall bear interest at the rate 250 of one and one-half per cent per month or fraction thereof, from the due 251 date. Any such penalty or interest shall not be paid from funds 252 maintained in the special account. 253 (2) On or before October 31, 2010, each deposit initiator shall pay the 254 balance outstanding in the special account that is attributable to the 255 period from July 1, 2010, to September 30, 2010, inclusive, to the 256 Commissioner of Revenue Services for deposit in the General Fund. 257 Subsequently, for the fiscal years ending June 30, 2022, and June 30, 258 2023, eighty-two per cent of the balance outstanding in the special 259 account that is attributable to the immediately preceding calendar 260 quarter shall be paid by the deposit initiator on or before the last day of 261 the month next succeeding the close of such quarter to the 262 Commissioner of Revenue Services for deposit in the General Fund and 263 for the fiscal year ending June 30, 2024, and each subsequent fiscal year 264 thereafter, eighty per cent of the balance outstanding in the special 265 account that is attributable to the immediately preceding calendar 266 quarter shall be paid by the deposit initiator on or before the last day of 267 Raised Bill No. 5340 LCO No. 2000 10 of 12 the month next succeeding the close of such quarter to t he 268 Commissioner of Revenue Services for deposit in the General Fund. If 269 the amount of the required payment pursuant to this subdivision is not 270 paid on or before the due date, a penalty of ten per cent of the amount 271 due and unpaid, or fifty dollars, whichever is greater, shall be imposed. 272 The amount due and unpaid shall bear interest at the rate of one per cent 273 per month or fraction thereof, from the due date. Any such penalty or 274 interest shall not be paid from funds maintained in such special account. 275 Such required payment shall be made by electronic funds transfer to the 276 Commissioner of Revenue Services, in the manner provided by chapter 277 228g. 278 (e) If moneys deposited in the special account are insufficient to pay 279 for withdrawals authorized pursuant to subsection (b) of this section, 280 the amount of such deficiency shall be subtracted from the next 281 succeeding payment or payments due pursuant to subsection (d) of this 282 section until the amount of the deficiency has been subtracted in full. 283 (f) The Commissioner of Revenue Services may examine the accounts 284 and records of any deposit initiator maintained under this section or 285 sections 22a-243 to 22a-245, inclusive, as amended by this act, and any 286 related accounts and records, including receipts, disbursements and 287 such other items as the Commissioner of Revenue Services deems 288 appropriate. 289 (g) The Attorney General may, independently or upon complaint of 290 the Commissioner of Energy and Environmental Protection or the 291 Commissioner of Revenue Services, institute any appropriate action or 292 proceeding to enforce any provision of this section or any regulation 293 adopted pursuant to section 22a-245, as amended by this act, to 294 implement the provisions of this section. 295 (h) The provisions of sections 12-548, 12-550 to 12-554, inclusive, and 296 12-555a shall be deemed to apply to the provisions of this section, except 297 any provision of sections 12-548, 12-550 to 12-554, inclusive, and 12-555a 298 Raised Bill No. 5340 LCO No. 2000 11 of 12 that is inconsistent with the provision in this section. 299 (i) Any payment required pursuant to this section shall be treated as 300 a tax for purposes of sections 12-30b, 12-33a, 12-35a, 12-39g and 12-39h. 301 (j) Not later than July 1, 2010, the Department of Energy and 302 Environmental Protection or successor agency shall establish a 303 procedure that allows each such deposit initiator to take a credit against 304 any payment made pursuant to subsection (d) of this section in the 305 amount of the deposits refunded on beverage containers which such 306 deposit initiator donated for any charitable purpose. 307 Sec. 5. (NEW) (Effective October 1, 2020) The state shall have a 308 redemption goal of ninety per cent for beverage containers, as defined 309 in section 22a-243 of the general statutes, as amended by this act. The 310 Commissioner of Energy and Environmental Protection may develop a 311 strategy for attaining such goal. In developing any such strategy, the 312 commissioner shall consult with municipalities, dealers and redemption 313 centers, as defined in section 22a-243 of the general statutes, as amended 314 by this act. The commissioner may report to the General Assembly and 315 the Governor, from time to time, on the status of the state's attainment 316 of such goal and any legislative recommendations for enabling such 317 attainment or increasing such goal. 318 Sec. 6. Section 22a-245b of the general statutes is repealed and the 319 following is substituted in lieu thereof (Effective July 1, 2021): 320 Any manufacturer who bottles and sells: [two] (1) Two hundred fifty 321 thousand or fewer beverage containers containing a noncarbonated 322 beverage that are twenty ounces or less in size each calendar year, or (2) 323 one hundred thousand gallons or less of juice in beverage containers 324 each calendar year, may apply to the Commissioner of Energy and 325 Environmental Protection for an exemption from the requirements of 326 sections 22a-244 to 22a-245a, inclusive, as amended by this act, with 327 regard to such beverage containers containing noncarbonated 328 beverages or with regard to such one hundred thousand gallons or less 329 Raised Bill No. 5340 LCO No. 2000 12 of 12 of juice in beverage containers. Such application shall be accompanied 330 by a sworn affidavit signed by such manufacturer or such 331 manufacturer's authorized agent certifying such manufacturer bottles 332 and sells two hundred fifty thousand or fewer of such beverage 333 containers per calendar year or bottles and sells one hundred thousand 334 gallons or less of juice in beverage containers per calendar year. Any 335 such application filed on or before April 1, 2009, shall be deemed 336 automatically approved and such exemption shall remain valid until 337 December 31, 2009. Not later than November 1, 2009, and each year 338 thereafter, each such manufacturer or such manufacturer's authorized 339 agent may apply to the commissioner for an exemption in accordance 340 with this section on a form prescribed by the commissioner. The 341 commissioner shall approve each such application not later than thirty 342 days after the receipt of the application by the commissioner, provided 343 the applicant satisfies the requirements of this section. 344 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2021 22a-243 Sec. 2 July 1, 2023 22a-244 Sec. 3 July 1, 2021 22a-245 Sec. 4 July 1, 2021 22a-245a Sec. 5 October 1, 2020 New section Sec. 6 July 1, 2021 22a-245b Statement of Purpose: To modernize the functioning of the Connecticut Bottle Bill by expanding its coverage and increasing certain fees paid pursuant to the bottle redemption program. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]