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H0197.................................................by ENVIRONMENTAL AFFAIRS
BEVERAGE CONTAINERS - DEPOSIT - Adds to existing law to set forth the
provisions of the Idaho Beverage Container Act to provide for the recycling of
deposit beverage containers in the state of Idaho.
02/07 House intro - 1st rdg - to printing
02/10 Rpt prt - to Env Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 197
BY ENVIRONMENTAL AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO DEPOSIT BEVERAGE CONTAINERS; AMENDING TITLE 39, IDAHO CODE, BY THE
3 ADDITION OF A NEW CHAPTER 84, TITLE 39, IDAHO CODE, TO SET FORTH THE PRO-
4 VISIONS OF THE IDAHO BEVERAGE CONTAINER ACT, TO SET FORTH A SHORT TITLE,
5 TO STATE LEGISLATIVE INTENT, TO DEFINE TERMS, TO PROVIDE FOR A DEPOSIT
6 BEVERAGE CONTAINER FEE, TO PROVIDE FOR REGISTRATION AND RECORDKEEPING, TO
7 ESTABLISH THE DEPOSIT BEVERAGE CONTAINER SPECIAL FUND AND TO PROVIDE FOR
8 THE USE OF FUND MONEYS, TO PROVIDE FOR DEPOSIT BEVERAGE CONTAINER INVEN-
9 TORY REPORTS AND PAYMENTS, TO AUTHORIZE THIRD PARTY CONTRACTS FOR ADMINIS-
10 TRATIVE SERVICES, TO PROVIDE FOR MANAGEMENT AND FINANCIAL AUDITS, TO
11 AUTHORIZE RULES AND TO PROVIDE FOR IMPLEMENTATION, TO PROVIDE FOR PAYMENT
12 AND APPLICATION OF DEPOSITS, TO SPECIFY PROCEDURES FOR SALES OF DEPOSIT
13 BEVERAGE CONTAINERS, TO SET FORTH DEPOSIT BEVERAGE CONTAINER REQUIREMENTS,
14 TO PROVIDE FOR REDEMPTION OF EMPTY DEPOSIT BEVERAGE CONTAINERS, TO PROVIDE
15 FOR REDEMPTION CENTERS, TO SET FORTH REVERSE VENDING MACHINE REQUIREMENTS,
16 TO PROVIDE FOR REFUSAL OF REFUND VALUE PAYMENTS FOR CERTAIN DEPOSIT BEVER-
17 AGE CONTAINERS, TO PROVIDE FOR HANDLING FEES AND REFUND VALUES FOR CERTI-
18 FIED REDEMPTION CENTERS, TO PROVIDE FOR REDEMPTION CENTER REPORTING, TO
19 PROVIDE FOR RECYCLING FACILITY REPORTING, TO PROVIDE FOR AUDIT AUTHORITY
20 AND TO PROVIDE FOR THE ADVISORY COMMITTEE.
21 Be It Enacted by the Legislature of the State of Idaho:
22 SECTION 1. That Title 39, Idaho Code, be, and the same is hereby amended
23 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
24 ter 84, Title 39, Idaho Code, and to read as follows:
25 CHAPTER 84
26 IDAHO BEVERAGE CONTAINER ACT
27 39-8401. SHORT TITLE. This chapter shall be known and may be cited as
28 the "Idaho Beverage Container Act."
29 39-8402. LEGISLATIVE INTENT. The legislature finds that recycling is an
30 important element of an integrated solid waste management system, which can
31 protect and preserve environmental resources and reduce economic costs to res-
32 idents and businesses within Idaho. The legislature finds a need to expand
33 participation in recycling programs and to minimize costs to those participat-
34 ing and to government. The purpose of this chapter is to increase participa-
35 tion and recycling rates for specified deposit beverage containers, to provide
36 a connection between manufacturing decisions and recycling program management
37 and to reduce litter.
38 39-8403. DEFINITIONS. As used in this chapter:
39 (1) "Auditor" means the office of the auditing division of the legisla-
40 tive services office.
2
1 (2) "Consumer" means a person who buys a beverage in a deposit beverage
2 container for use or consumption and pays the deposit.
3 (3) "Dealer" means a person who engages in the sale of beverages in
4 deposit beverage containers to a consumer for off-premises consumption in the
5 state.
6 (4) "Department" means the department of environmental quality.
7 (5) "Deposit beverage" means beer, ale or other drink produced by fer-
8 menting malt, tea and coffee drinks regardless of dairy-derived product con-
9 tent, soda, or noncarbonated water, and all nonalcoholic drinks in liquid form
10 and intended for internal human consumption that are contained in a deposit
11 beverage container. The term "deposit beverage" excludes the following:
12 (a) All products dispensed by the Idaho state liquor dispensary and Idaho
13 state liquor dispensary products sold by state liquor stores;
14 (b) A liquid which is:
15 (i) A syrup;
16 (ii) In a concentrated form; or
17 (iii) Typically added as a minor flavoring ingredient in food or
18 drink, such as extracts, cooking additives, sauces or condiments;
19 (c) A liquid which is a drug, medical food or infant formula as defined
20 by the federal food drug and cosmetic act (21 U.S.C. section 301 et seq.);
21 (d) A liquid which is designed and consumed only as a dietary supplement
22 and not as a beverage as defined in the dietary supplement health and edu-
23 cation act of 1994 (P.L. 103-417);
24 (e) Products frozen at the time of sale to the consumer or, in the case
25 of institutional users such as hospitals and nursing homes, at the time of
26 sale to the users;
27 (f) Products designed to be consumed in a frozen state;
28 (g) Instant drink powders;
29 (h) Seafood, meat or vegetable broths or soups, but not juices; and
30 (i) Milk and all other dairy-derived products, except tea and coffee
31 drinks with trace amounts of these products.
32 (6) "Deposit beverage container" means the individual, separate, sealed
33 glass, polyethylene terephthalate, high density polyethylene or metal con-
34 tainer less than or equal to sixty-four (64) fluid ounces, used for contain-
35 ing, at the time of sale to the consumer, a deposit beverage intended for use
36 or consumption in this state.
37 (7) "Deposit beverage distributor" means a person who is a manufacturer
38 of beverages in deposit beverage containers in this state, or who imports and
39 engages in the sale of filled deposit beverage containers to a dealer or con-
40 sumer. The term includes federal agencies and military distributors but does
41 not include airlines and shipping companies that merely transport deposit bev-
42 erage containers.
43 (8) "Import" means to buy, bring or accept delivery of deposit beverage
44 containers from an address, supplier or any entity outside of the state.
45 (9) "Importer" means any person who buys, brings or accepts delivery of
46 deposit beverage containers from outside the state for sale or use within the
47 state.
48 (10) "On-premises consumption" means to consume deposit beverages by a
49 consumer immediately and within the area under control of the establishment,
50 including bars, restaurants, passenger ships and airplanes.
51 (11) "Person" means individual, partnership, firm, association, public or
52 private corporation, federal agency, the state or any of its political subdi-
53 visions, trust, estate or any other legal entity.
54 (12) "Recycling facility" means all contiguous land and structures and
55 other appurtenances and improvements on the land used for the collection, sep-
3
1 aration, recovery and sale or reuse of secondary resources that would other-
2 wise be disposed of as municipal solid waste, and is an integral part of a
3 manufacturing process aimed at producing a marketable product made of
4 postconsumer material.
5 (13) "Redeemer" means a person, other than a dealer or distributor, who
6 demands the refund value in exchange for the empty deposit beverage container.
7 (14) "Redemption center" means an operation which accepts from consumers
8 and provides the refund value for empty deposit beverage containers intended
9 to be recycled and ensures that the empty deposit beverage containers are
10 properly recycled.
11 (15) "Refillable beverage container" means any deposit beverage container
12 which ordinarily would be returned to the manufacturer to be refilled and
13 resold.
14 (16) "Reverse vending machine" means a mechanical device, which accepts
15 one (1) or more types of empty deposit beverage containers and issues a
16 redeemable credit slip with a value not less than the container's refund
17 value. The refund value payments shall be aggregated and then paid if more
18 than one (1) container is redeemed in a single transaction.
19 39-8404. DEPOSIT BEVERAGE CONTAINER FEE. (1) From January 1, 2004, to
20 December 31, 2004, every deposit beverage distributor shall pay to the depart-
21 ment a deposit beverage container fee on each polyethylene terephthalate, high
22 density polyethylene, or metal deposit beverage container manufactured in or
23 imported into the state. The fee shall be imposed only once on the same bever-
24 age container. The fee shall be one cent (1) per beverage container.
25 (2) No county shall impose or collect any assessment or fee on deposit
26 beverage containers for the same or similar purpose that is the subject of
27 this chapter.
28 39-8405. DEPOSIT BEVERAGE DISTRIBUTORS -- REGISTRATION -- RECORDKEEPING.
29 (1) By December 1, 2003, all deposit beverage distributors operating within
30 the state shall register with the department, using forms prescribed by the
31 department, and shall notify the department of any change in address or other
32 information previously submitted. After December 1, 2003, any person who
33 desires to conduct business in the state as a deposit beverage distributor
34 shall register with the department no later than one (1) month prior to the
35 commencement of the business.
36 (2) All deposit beverage distributors shall maintain records reflecting
37 the manufacture of their beverages in deposit beverage containers as well as
38 the importation and exportation of deposit beverage containers. The records
39 shall be made available, upon request, for inspection by the department; pro-
40 vided that any proprietary information obtained by the department shall be
41 kept confidential and shall not be disclosed to any other person, except:
42 (a) As may be reasonably required in an administrative or judicial pro-
43 ceeding to enforce any provision of this chapter or any rule adopted pur-
44 suant to this chapter; or
45 (b) Under an order issued by a court or administrative agency hearings
46 officer.
47 39-8406. DEPOSIT BEVERAGE CONTAINER SPECIAL FUND -- USE OF FUNDS. (1)
48 There is established in the state treasury the deposit beverage container spe-
49 cial fund, into which shall be deposited:
50 (a) All revenues generated from the deposit beverage container fee;
51 (b) All revenues generated from the deposit beverage container deposit;
52 and
4
1 (c) All accrued interest from the fund.
2 (2) Moneys in the fund shall be used to reimburse refund values and pay
3 handling fees to redemption centers. The department may also use the money to:
4 (a) Fund administrative, audit and compliance activities associated with
5 collection and payment of the deposits and handling fees of the deposit
6 beverage container fee and deposit program;
7 (b) Provide grant moneys to communities for the establishment of redemp-
8 tion centers;
9 (c) Conduct recycling education and demonstration projects;
10 (d) Promote recyclable market development activities;
11 (e) Support the handling and transportation of the deposit beverage con-
12 tainers to end-markets;
13 (f) Hire personnel to oversee the implementation of the deposit beverage
14 container fee and deposit program, including permitting and enforcement
15 activities; and
16 (g) Fund associated office expenses.
17 39-8407. DEPOSIT BEVERAGE CONTAINER INVENTORY REPORT AND PAYMENT. (1)
18 Beginning January 1, 2005, payment of the deposit beverage container fee and
19 deposits shall be made monthly based on inventory reports of the deposit bev-
20 erage distributors. All deposit beverage distributors shall submit to the
21 department documentation in sufficient detail that identifies:
22 (a) The number of beverages in deposit beverage containers, by container
23 size and type, manufactured in or imported to the state; and
24 (b) The number of these deposit beverage containers, by container size
25 and type, exported and intended for consumption out of the state during
26 the reporting period.
27 (2) The amount due from deposit beverage distributors shall be the net
28 number of deposit beverage containers imported into or manufactured in the
29 state (the total number of containers imported or manufactured less the total
30 number of containers exported for consumption outside the state) multiplied by
31 the sum of the prevailing deposit beverage container fee and the refund value
32 of five cents (5). Payment shall be made by check or money order payable to
33 the department of environmental quality. All inventory reports and payments
34 shall be made no later than the fifteenth day of the month following the end
35 of the payment period of the previous month.
36 39-8408. CONTRACT FOR ADMINISTRATIVE SERVICES. The department may con-
37 tract the services of a third party to administer the deposit beverage con-
38 tainer program under this chapter.
39 39-8409. MANAGEMENT AND FINANCIAL AUDIT. The auditor shall conduct a
40 management and financial audit of the program for fiscal years 2005 and 2006,
41 and for each fiscal year thereafter ending in an even-numbered year. The audi-
42 tor shall submit the audit report, including the amount of unredeemed refund
43 value and recommendations, to the legislature and the department no later than
44 twenty (20) days prior to the convening of the next regular session. The costs
45 incurred by the auditor for the audit shall be reimbursed by the deposit bev-
46 erage container program special fund. The auditor may contract the audit ser-
47 vices of a third party to conduct the audit.
48 39-8410. RULES -- IMPLEMENTATION. The department may adopt rules as may
49 be necessary for the purposes of this chapter. Full implementation of the
50 deposit beverage container program shall commence no later than January 1,
51 2006.
5
1 39-8411. PAYMENT AND APPLICATION OF DEPOSITS. (1) By January 1, 2006,
2 every deposit beverage container sold in this state shall have a refund value
3 of five cents (5). Each container shall have the refund value clearly indi-
4 cated on it.
5 (2) The refund value is the amount of the deposit required. Once a refund
6 value has been applied to a deposit beverage container, the deposit on that
7 container may not be changed and shall be paid to the state.
8 (3) The deposit on each filled deposit beverage container shall be paid
9 by the deposit beverage distributor, who manufactures or imports beverages in
10 deposit beverage containers. Payment and reporting of the deposits shall be in
11 accordance with section 39-8407, Idaho Code. The deposits shall be deposited
12 into the deposit beverage container special fund.
13 (4) Deposit beverage distributors who are required under subsection (3)
14 of this section to pay a deposit shall also pay a deposit beverage container
15 fee and register with the state.
16 39-8412. SALES OF BEVERAGES IN DEPOSIT BEVERAGE CONTAINERS. (1) Beginning
17 January 1, 2006, every deposit beverage distributor who pays a deposit shall
18 charge the dealer or consumer a deposit equal to the refund value for each
19 deposit beverage container sold in Idaho. The deposit charge may appear as a
20 separate line item on the invoice.
21 (2) Each dealer shall charge the consumer the deposit beverage container
22 deposit at the point of sale of the beverage excluding sales for on-premises
23 consumption. The deposit charge may appear as a separate line item on the
24 invoice.
25 39-8413. DEPOSIT BEVERAGE CONTAINER REQUIREMENTS. (1) Except as provided
26 in subsection (2) of this section, every deposit beverage container sold in
27 this state shall clearly indicate the refund value of the container and the
28 word "Idaho" or the letters "ID." The names or letters representing the names
29 of other states with comparable deposit legislation may also be included in
30 the indication of refund value. Other indications may be required as specified
31 in rules.
32 (2) Subsection (1) of this section does not apply to any type of refill-
33 able glass beverage container which has a brand name permanently marked on it
34 and which has the equivalent of a refund value of at least five cents (5)
35 which is paid upon receipt of such container by a dealer or distributor.
36 39-8414. REDEMPTION OF EMPTY DEPOSIT BEVERAGE CONTAINERS. (1) Except as
37 provided in subsection (2) of this section, a dealer shall:
38 (a) Operate a redemption center by accepting all types of empty beverage
39 containers with an Idaho refund value;
40 (b) Pay to the redeemer the full refund value for all deposit beverage
41 containers which bear a valid Idaho refund value; and
42 (c) Ensure each deposit beverage container collected is recycled, and
43 forward documentation necessary to support claims for payment.
44 (2) Subsection (1) of this section shall not apply to any dealer:
45 (a) Who is located in a high density population area as defined by the
46 director in rules, and within five (5) miles of a certified redemption
47 center that is operated independently from a dealer;
48 (b) Who is located in a rural area as defined by rule;
49 (c) Who subcontracts with a certified redemption center for operation on
50 the dealer's premises;
51 (d) Whose sale of deposit beverage containers is only via vending
52 machines;
6
1 (e) Whose place of business is less than five thousand (5,000) square
2 feet of interior space or as provided by rule;
3 (f) Who can demonstrate physical hardship or financial hardship, or both,
4 based on specific criteria established in rules; or
5 (g) Who meets other criteria established by the director.
6 Notwithstanding paragraphs (a) and (b) of this subsection, the director may
7 allow the placement of redemption centers at greater than prescribed distances
8 to accommodate geographical features while assuring adequate consumer conve-
9 nience.
10 (3) All dealers, regardless of the square footage of the dealer's place
11 of business, shall post a clear and conspicuous sign at each public entrance
12 to the dealer's place of business which specifies the name, address and hours
13 of operation of the closest redemption center locations.
14 (4) If there is no redemption center within the ten (10) mile radius of a
15 dealer due to the criteria described in subsection (2) of this section, then
16 the respective county and the state may determine the need for a redemption
17 center in that area. If a redemption center is deemed necessary, then the
18 state, with assistance from the county, may establish the redemption center
19 with funding from the deposit beverage container special fund.
20 (5) Businesses that sell deposit beverages for on-premises consumption,
21 such as hotels, bars and restaurants, shall collect used deposit beverage con-
22 tainers from the consumer, and use a certified redemption center for the col-
23 lection of containers, or become a certified redemption center.
24 39-8415. REDEMPTION CENTERS. (1) Prior to operation, redemption centers
25 shall be certified by the department.
26 (2) Applications for certification as a redemption center shall be filed
27 with the department on forms prescribed by the department.
28 (3) The state, at any time, may review the certification of a redemption
29 center. After written notice to the person responsible for the establishment
30 and operation of the redemption center and to the dealers served by the
31 redemption center, the state, after it has afforded the redemption center
32 operator a hearing, may withdraw the certification of the center if it finds
33 that there has not been compliance with applicable laws, rules, permit condi-
34 tions or certification requirements.
35 (4) Redemption centers shall:
36 (a) Accept all types of empty deposit beverage containers for which a
37 deposit has been paid;
38 (b) Verify that all containers to be redeemed bear a valid Idaho refund
39 value;
40 (c) Pay to the redeemer the full refund value for all beverage contain-
41 ers, except as otherwise provided in this chapter;
42 (d) Crush or destroy all deposit beverage containers that are accepted at
43 the time of redemption;
44 (e) Ensure each container collected is recycled through a contractual
45 agreement with an out-of-state recycler or an in-state recycling facility
46 permitted by the department; provided that this paragraph shall not apply
47 if the redemption center is operated by a recycler permitted by the
48 department; and
49 (f) Forward the documentation necessary to support claims for payment.
50 (5) Redemption centers' redemption areas shall be maintained in full com-
51 pliance with applicable laws and with the orders and rules of the department,
52 including permitting requirements, if deemed necessary.
53 39-8416. REVERSE VENDING MACHINE REQUIREMENTS. Reverse vending machines
7
1 may be used by redemption centers to satisfy the requirements of this chapter;
2 provided that the reverse vending machine shall accept any type of empty
3 deposit beverage container and pay out appropriate refunds via a redeemable
4 voucher for those containers that bear a valid Idaho refund value. If the
5 reverse vending machine is unable to read the Idaho refund value, then the
6 department shall specify a delayed date in which the reverse vending machines
7 may be used. The reverse vending machine shall be routinely serviced to ensure
8 proper operation and continuous acceptance of containers and payment of
9 refunds. All deposit beverage containers accepted by a reverse vending machine
10 shall either be crushed or destroyed at the point of redemption.
11 39-8417. REFUSAL OF REFUND VALUE PAYMENT FOR A DEPOSIT BEVERAGE CON-
12 TAINER. Redemption centers shall refuse to pay the refund value on any broken,
13 corroded, dismembered, flattened deposit beverage container, or any deposit
14 beverage container which:
15 (1) Contains a free flowing liquid;
16 (2) Does not properly indicate a refund value; or
17 (3) Contains a significant amount of foreign material.
18 39-8418. HANDLING FEES AND REFUND VALUES FOR CERTIFIED REDEMPTION CEN-
19 TERS. (1) The state shall pay to each certified redemption center a handling
20 fee of not less than the prevailing beverage container fee for each deposit
21 beverage container redeemed by a consumer which is transported out-of-state or
22 received by an approved in-state company for an approved end use for recycling
23 or received by a department permitted recycling facility.
24 (2) Not less than thirty (30) days before paying the handling fees
25 required by this section, the department shall publish a notice statewide in
26 accordance with applicable state law of the recovery rate for the calendar
27 quarter for which the handling fee will be paid. Payments for handling fees
28 shall be made not less than six (6) months after the completion of the calen-
29 dar quarter to which the payment applies.
30 (3) The handling fee shall be paid in addition to the refund value of
31 each such empty beverage container. The department may choose to pay the
32 handling fee and refund value on the basis of the total weight of the contain-
33 ers received by material type and the average weight of each container type or
34 by count of containers redeemed.
35 (4) A handling fee and refund value may only be paid once for each con-
36 tainer redeemed by a consumer and claimed by a redemption center in accordance
37 with section 39-8419, Idaho Code.
38 39-8419. REDEMPTION CENTER REPORTING. (1) The state shall pay certified
39 redemption center handling fees and refund values as described in section
40 39-8418, Idaho Code, based on collection reports submitted by the redemption
41 centers. All redemption centers shall submit to the department information on
42 forms prescribed by the department. Information shall include at a minimum:
43 (a) The amount and type of containers accepted and rejected;
44 (b) The amount of refunds paid out;
45 (c) The amount and weight of each type of container transported out-of-
46 state or to a permitted recycling facility;
47 (d) Copies of out-of-state transport and weight receipts, or acceptance
48 receipts from permitted recycling facilities. If the redemption center and
49 the recycling facility are the same entity, copies of out-of-state trans-
50 port and weight receipts, or documentation of end use accepted by the
51 department, shall also be included.
52 (2) The requests for payment shall be no more frequent than two (2) times
8
1 per month. Beginning January 1, 2006, each center shall report the previous
2 quarter's information no later than thirty (30) days after the end of that
3 quarter so that the handling rate can be calculated. Failure to timely submit
4 the report shall postpone payment for those containers until they are timely
5 submitted for a subsequent quarter.
6 39-8420. RECYCLING FACILITY REPORTING. Recycling facilities, in addition
7 to any requirements under this chapter, shall prepare or maintain the docu-
8 ments involving empty beverage containers, as required by the department.
9 39-8421. AUDIT AUTHORITY. The records of the deposit beverage distribu-
10 tor, dealer, redemption center and recycling facility shall be made available,
11 upon request, for inspection by the department, a duly authorized agent of the
12 department, or the auditor. Any proprietary information obtained by them shall
13 be kept confidential and shall not be disclosed to any other person, except:
14 (1) As may be reasonably required in an administrative or judicial pro-
15 ceeding to enforce any provision of this chapter or any rule adopted pursuant
16 to this chapter; or
17 (2) Under an order issued by a court or administrative agency hearings
18 officer.
19 39-8422. ADVISORY COMMITTEE. The department shall convene an advisory
20 committee to assist it in developing any rules needed to implement this chap-
21 ter. The department shall select members of the committee so as to obtain
22 input on the state level as well as assess the impact on each individual
23 county, consumers, recyclers and the beverage industry. Members of the commit-
24 tee shall be appointed by the director and shall serve at the director's
25 pleasure. A simple majority of the committee members shall constitute a quorum
26 for the purposes of recommending rules and providing input to the director.
STATEMENT OF PURPOSE
RS 12723
The purpose of this legislation is to create the Idaho Beverage
Container Act. The Idaho Beverage Container Act will encourage
increased recycling of beverage containers, such as plastic,
glass and aluminum containers, through a small, refundable
deposit. This legislation would result in increased participation
in recycling efforts and consequently, a reduction in litter and
landfill-bound recyclable products in Idaho.
FISCAL IMPACT
There is no impact to the General Fund.
Contact
Name: Representative Bill Deal
Phone: 208/332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 19