2023 -- H 6054
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LC002381
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO HEALTH AND SAFETY -- MINIATURE ALCOHOLIC BEVERAGE
CONTAINER ACT OF 2023
Introduced By: Representatives Bennett, Spears, Knight, Ackerman, Carson, McGaw,
Cortvriend, Vella-Wilkinson, Morales, and Tanzi
Date Introduced: March 03, 2023
Referred To: House Environment and Natural Resources
It is enacted by the General Assembly as follows:
SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby 1
amended by adding thereto the following chapter: 2
CHAPTER 18.18 3
MINIATURE ALCOHOLIC BEVERAGE CONTAINER DEPOSIT RECYCLING ACT OF 4
2023 5
23-18.18-1. Definitions. 6
As used in this chapter: 7
(1) ''Beverage'' means an alcoholic beverage as described in chapter 1 of title 3, including, 8
but not limited to, beer and other malt beverages, wine, or liquor. 9
(2) ''Beverage container'' means any sealable bottle, can, jar, or carton which is primarily 10
composed of glass, metal, plastic or any combination of those materials and is produced for the 11
purpose of containing a beverage. This definition shall not include containers made of 12
biodegradable material. 13
(3) ''Bottler'' means any person filling miniature alcoholic beverage containers for sale to 14
distributors or dealers, including dealers who bottle or sell their own brand of beverage. 15
(4) ''Consumer'' means any person who purchases an alcoholic beverage in a miniature 16
alcoholic beverage container for use or consumption with no intent to resell such beverage. 17
(5) ''Dealer'' means any person, who engages in the sale of alcoholic beverages in miniature 18
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alcoholic beverage containers to consumers in this state. 1
(6) ''Distributor'' means any person who engages in the sale of alcoholic beverages in 2
miniature alcoholic beverage containers to dealers in this state including any bottler who engages 3
in such sales. 4
(7) ''Label'' means a molded imprint or raised symbol on or near the bottom of a plastic 5
product. 6
(8) "Miniature alcoholic beverage container" means any sealable bottle, can, jar, or carton, 7
that has dimensions of a minimum of two inches (2") in diameter across a minimum of two inches 8
(2") in height, is composed of either polyethylene terephthalate (PET), high density polyethene 9
(HDPE), polypropylene (PP), aluminum, or glass, and is not comprised of dark solid colors if 10
plastic, that has a capacity of not more than one hundred milliliters (100 ml), and is produced for 11
the purpose of containing an alcoholic beverage as described in chapter 1 of title 3, which containers 12
are sometimes colloquially referred to as "nips." 13
(9) ''Plastic'' means any material made of polymeric organic compounds and additives that 14
can be shaped by flow. 15
23-18.18-2. Refund value; Exemption. 16
Every miniature alcoholic beverage container sold or offered for sale in the state shall have 17
a refund value of not less than twenty-five cents ($0.25). The provisions of this section shall not 18
apply to such containers sold by a distributor for use by a common carrier in the conduct of 19
interstate passenger service. 20
23-18.18-3. Refund of miniature alcoholic beverage container; Refusal to accept 21
miniature alcoholic beverage container. 22
(a) Every consumer shall deposit with the dealer the refund value of each miniature 23
alcoholic beverage container purchased from that dealer. 24
(b) Except as provided in subsection (f) of this section, a dealer shall accept from any 25
person during business hours any empty miniature alcoholic beverage container of the type, size 26
and brand sold by the dealer within the past sixty (60) days and shall pay that person the refund 27
value of each miniature alcoholic beverage container returned. 28
(c) Except as provided in subsection (f) of this section, a distributor shall accept from any 29
dealer any empty miniature alcoholic beverage container of the type, size and brand sold by the 30
distributor within the past sixty (60) days and shall pay the dealer the refund value of the miniature 31
alcoholic beverage container plus a handling fee of at least four cents ($0.04) per container if the 32
empty miniature alcoholic beverage container is presented at the time of and at the location at which 33
the dealer obtains filled miniature alcoholic beverage containers from the distributor. 34
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(d) Except as provided in subsection (f) of this section, a bottler shall accept from a 1
distributor or a dealer any empty reusable miniature alcoholic beverage container of the type, size, 2
and brand sold by the bottler within the past sixty (60) days and shall pay the distributor or dealer 3
the refund value of the beverage container plus a handling fee of at least four cents ($0.04) per 4
container. 5
(e) Any person may establish a redemption center and shall have the right to determine 6
what type, size and brand of miniature alcoholic beverage container shall be accepted. Except as 7
provided in subsection (f) of this section, a distributor shall take from any redemption center any 8
empty miniature alcoholic beverage container of the type, size and brand sold by the distributor 9
within the past sixty (60) days and shall pay the redemption center the refund value of the container 10
plus a handling fee of at least four cents ($0.04) per container. 11
(f) A dealer, distributor, redemption center or bottler may refuse to accept any miniature 12
alcoholic beverage container which contains material foreign to the normal contents of the 13
container. 14
(g) Any bottler or distributor who receives deposits and/or handling charges under this 15
chapter shall segregate said deposits or handling charges in a fund which shall be maintained 16
separately from all other revenues. Said bottler or distributor shall report on a monthly basis to the 17
Rhode Island resource recovery corporation and the division of revenue, the amount of said deposits 18
or handling charges received and the amount refunded. 19
(h) Any bottler or distributor who is subject to the provisions of subsection (c), (d) or (e) 20
of this section shall maintain a separate account to be known as the deposit transaction fund. Said 21
fund shall be kept separate from all other revenues and accounts. Each bottler or distributor shall 22
place in said fund the refund value for all miniature alcoholic beverage containers it sells subject 23
to the provisions of this chapter. 24
Except as specified in subsection (d) of this section, amounts in such fund may only be 25
expended to pay refund values paid after January 1, 2024, for returned miniature alcoholic beverage 26
containers pursuant to subsection (c), (d) or (e) of this section. Amounts in such fund shall not be 27
used to pay any handling fees required by subsection (c), (d) or (e) of this section. Each such fund 28
shall be maintained by said bottlers and distributors on behalf of consumers who have purchased 29
refundable miniature alcoholic beverage containers and on behalf of the state; except as specified 30
in § 23-18.18-6, for no purpose are amounts in such fund to be regarded as income of said bottlers 31
or distributors. 32
(i) The obligations to accept or take empty miniature alcoholic beverage containers and to 33
pay the refund value and handling fees for such containers as described in subsections (b), (c), (d) 34
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and (e) of this section shall apply only to containers originally sold in this state as filled miniature 1
alcoholic beverage containers. Any person who tenders to a dealer, distributor, redemption center 2
or bottler more than ten (10) cases of twenty-four (24) empty miniature alcoholic beverage 3
containers each, which a person knows or has reason to know were not originally sold in this state 4
as filled miniature alcoholic beverage containers, for the purpose of obtaining a refund value or 5
handling fee, shall be subject to the enforcement action and civil penalties set forth in § 23-18.18-6
10. For the purpose of this section and § 23-18.18-10, the term "person" shall include any 7
individual, partnership, corporation, or other combination or entity. 8
23-18.18-4. Reports by bottlers and distributors of transactions affecting deposit 9
transaction fund. 10
Every bottler or distributor shall report to the director of the division of revenue by the 11
tenth day of each month, concerning transactions affecting its deposit transaction fund in the 12
preceding month. Such report shall be made in a form prescribed by said director and shall include 13
the number of miniature alcoholic beverage containers sold and the number of miniature alcoholic 14
beverage containers returned in said month, the amount of deposits received in and payments made 15
from said fund in said month and the most recent three (3) month period, any income earned on 16
amounts in the deposit transaction fund during said preceding month, the balance in said deposit 17
transaction fund at the close of said preceding month, and such other information as the director of 18
revenue may require in furtherance of the director's duties pursuant to this chapter. 19
23-18.18-5. Abandoned deposit amounts; Determination and transfer. 20
(a) At the end of each month, any amounts that are or should be in a bottler's or distributor's 21
deposit transaction fund and that are in excess of the sum of: 22
(1) Interest income earned on amounts in said account during that month; and 23
(2) The total amount of refund values received by said bottler or distributor for miniature 24
alcoholic beverage containers during that month and the two (2) preceding months, shall be deemed 25
to constitute abandoned deposit amounts. Income earned on said fund may be transferred from said 26
fund for use as funds of the bottler or distributor. 27
(b) By the tenth day of each month, each bottler or distributor shall turn over to the director 28
of the division of revenue any deposit amounts deemed to be abandoned at the close of the 29
preceding month, pursuant to subsection (a) of this section. Such amounts may be paid from the 30
deposit transaction fund. Amounts collected by the director of the division of revenue pursuant to 31
this subsection shall be deposited in the water pollution control revolving fund established by § 46-32
12.2-6. 33
23-18.18-6. Reimbursements to bottlers or distributors. 34
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If in any month the authorized payments from the deposit transaction fund by a bottler or 1
distributor pursuant to § 23-18.18-2 exceed the funds that are or should be in its deposit transaction 2
fund, the state shall reimburse said bottler or distributor, from amounts received pursuant to § 23-3
18.18-5, for those refunds paid by the bottler or distributor for miniature alcoholic beverage 4
containers for which the funds that are or should be in its deposit transaction fund are insufficient; 5
provided, however, that such reimbursements to a bottler or distributor for a month shall not exceed 6
the excess of: 7
(1) Amounts paid by said bottler or distributor to the state pursuant to § 23-18.18-5 in the 8
preceding twenty-four (24) months over; 9
(2) Amounts paid by this state to said bottler or distributor pursuant to this section during 10
said twenty-four (24) months. 11
23-18.18-7. Holding or connecting devices; Breakdown by bacteria or light. 12
No dealer shall sell or offer for sale in the state containers connected to each other by a 13
separate holding device constructed of plastic rings or any other device or material which cannot 14
be broken down by bacteria and or by light into constituent parts as provided in chapter 38 of this 15
title. 16
23-18.18-8. Refund value; Statement on container. 17
Every miniature alcoholic beverage container, or offered for sale in the state by a bottler, 18
distributor, or dealer shall clearly indicate, by embossing or by stamp, or by label, or other method 19
securely affixed to any portion except the bottom of the miniature alcoholic beverage container, 20
the refund value of the container. A permanently labelled reusable glass miniature alcoholic 21
beverage container first imported into, or offered for sale in this state after the effective date of this 22
chapter by a bottler, distributor, or dealer shall clearly indicate, by embossing or by stamp, or by 23
label, or other method securely affixed to any portion except the bottom of the permanently labelled 24
reusable glass miniature alcoholic beverage container, that the container may be returned for 25
deposit. A dealer, distributor, redemption center, or bottler, may refuse to accept from any person 26
any empty miniature alcoholic beverage container which does not state thereon a refund value. 27
23-18.18-9. Administration of provisions relating to bottlers and distributors; rules 28
and regulations. 29
(a) The director of the department of environmental management shall administer the 30
provisions of §§ 23-18.18-1, 23-18.18-2, 23-18.18-3(a) through (f), inclusive, 23-18.18-7, and 23-31
18.18-8. Said director shall promulgate rules and regulations to effectuate the purposes of said 32
sections. 33
(b) The director of the division of revenue shall administer the provisions of §§ 23-18.18-34
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3 (g) through (i), 23-18.18-4, 23-18.18-5 and 23-18.18-6. 1
The director of the division of revenue shall promulgate and from time to time revise rules 2
and regulations to effectuate the purposes of said sections. Said rules and regulations shall include 3
a provision to permit bottlers or distributors to borrow, without any interest charge, against their 4
deposit transaction funds subject to such terms and conditions as the director deems appropriate. 5
23-18.18-10. Enforcement. 6
(a) The attorney general shall enforce the provisions of this chapter. Any bottler, 7
distributor, redemption center or dealer who violates any provisions of this chapter or any person 8
who violates § 23-18.1-3 shall be subject to a civil penalty for each violation of not more than one 9
thousand dollars ($1,000), except as provided otherwise in § 23-18.18-11. 10
(b) Any bottler or distributor failing to make full and timely payments as required by § 23-11
18.18-5 shall pay interest on any unpaid amounts at the rate of one and one-half percent (1.5%) for 12
each month or part thereof until payment is made in full; provided, however, that any person, 13
including a bottler, distributor, redemption center or dealer, who violates the provisions of § 23-14
18.18-3(i) shall be subject to a civil penalty of not less than one hundred dollars ($100) for each 15
container or twenty-five thousand dollars ($25,000) for each tender of containers. 16
23-18.18-11. Certain miniature alcoholic beverage containers prohibited. 17
(a) Effective January 1, 2024, no miniature alcoholic beverage container shall be sold in 18
this state that does not meet the minimum size requirements defined in § 23-18.18-1 19
(b) A bottler or distributor who engages in the sale of a miniature alcoholic beverage 20
container in violation of the provisions of this section shall be subject to a civil penalty as follows: 21
Number of offense: Fine/Penalty: 22
First offense: Warning 23
Second offense: $250 24
Third offense: $500 25
Fourth offense: $1,000 26
Fifth offense: $1,000 and loss of license. 27
SECTION 2. This act shall take effect on January 1, 2024. 28
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO HEALTH AND SAFETY -- MINIATURE ALCOHOLIC BEVERAGE
CONTAINER ACT OF 2023
***
This act would create a refundable twenty-five cent ($0.25) deposit for miniature alcoholic 1
beverage containers, often referred to as "nips." 2
This act would take effect on January 1, 2024. 3
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LC002381
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