HB3389 100TH GENERAL ASSEMBLY

LRB100 05314 HLH 15325 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3389

Introduced , by Rep. Jehan Gordon-Booth

SYNOPSIS AS INTRODUCED:

New Act

Creates the Beverage Container Deposit Act. Provides that consumers shall pay a refund value of not less than $0.05 on each beverage container sold in this State by a dealer for consumption off the premises. Provides that the dealer or person operating a redemption center shall return the amount of the refund value to the consumer upon return of the empty beverage container. Provides that a distributor that is required to accept empty beverage containers shall reimburse the dealer in the amount of $0.01 per container. Provides that beverage containers must clearly indicate the refund value of the container. Contains provisions concerning penalties. Provides that the term "dealer" means a person who engages in the sale of beverages in beverage containers to a consumer. Provides that the term "distributor" means a person who engages in the sale of beverages in beverage containers to dealers. Effective July 1, 2017.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Beverage Container Deposit Act.

Section 5. Definitions. As used in this Act unless the context otherwise requires:

"Beverage" means wine, alcoholic liquor, and beer, all as defined in the Liquor Control Act, mineral water, soda water, and similar carbonated soft drinks that are in liquid form and intended for human consumption.

"Beverage container" means any sealed glass, plastic, or metal bottle, can, jar, or carton containing a beverage.

"Consumer" means any person who purchases a beverage in a beverage container for use or consumption.

"Dealer" means any person who engages in the sale of beverages in beverage containers to a consumer.

"Dealer agent" means a person who solicits or picks up empty beverage containers from a dealer for the purpose of returning the empty beverage containers to a distributor or manufacturer.

"Department" means the Department of Agriculture.

"Distributor" means a person who engages in the sale of beverages in beverage containers to a dealer in this State, including any manufacturer who engages in such sales.

"Geographic territory" means the geographical area within a perimeter formed by the outermost boundaries served by a distributor.

"Manufacturer" means any person who bottles, cans, or otherwise fills beverage containers for sale to distributors or dealers.

"Nonrefillable beverage container" means a beverage container not intended to be refilled for sale by a manufacturer.

"Redemption center" means a facility at which consumers may return empty beverage containers and receive payment for the refund value of the empty beverage containers.

Section 10. Refund values.

(a) A refund value of not less than $0.05 shall be paid by the consumer on each beverage container sold in this State by a dealer for consumption off the premises. Upon return of the empty beverage container upon which a refund value has been paid to the dealer or person operating a redemption center and acceptance of the empty beverage container by the dealer or person operating a redemption center, the dealer or person operating a redemption center shall return the amount of the refund value to the consumer.

(b) In addition to the refund value provided in subsection (a) of this Section, a dealer or person operating a redemption center who redeems empty beverage containers or a dealer agent shall be reimbursed by the distributor that is required to accept the empty beverage containers in the amount of $0.01 per container. A dealer, dealer agent, or person operating a redemption center may compact empty metal beverage containers with the approval of the distributor that is required to accept the containers.

Section 15. Payment of refund value. Except as provided in Section 20:

(1) A dealer shall not refuse to accept from a consumer any empty beverage container of the kind, size, and brand sold by the dealer, or refuse to pay to the consumer the refund value of a beverage container as provided under Section 10.

(2) A distributor shall accept and pick up from a dealer served by the distributor or a redemption center for a dealer served by the distributor at least weekly, or when the distributor delivers the beverage product if deliveries are less frequent than weekly, any empty beverage container of the kind, size, and brand sold by the distributor, and shall pay to the dealer or person operating a redemption center the refund value of a beverage container and the reimbursement as provided under Section 10 within one week following pickup of the containers or when the dealer or redemption center normally pays the distributor for the deposit on beverage products purchased from the distributor if less frequent than weekly. A distributor or employee or agent of a distributor is not in violation of this paragraph if the redemption center is closed when the distributor attempts to make a regular delivery or a regular pickup of empty beverage containers.

(3) A distributor is not required to pay to a manufacturer a deposit or refund value on a nonrefillable beverage container.

(4) A distributor shall accept from a dealer agent any empty beverage container of the kind, size, and brand sold by the distributor that was picked up by the dealer agent from a dealer within the geographic territory served by the distributor, and the distributor shall pay the dealer agent the refund value of the empty beverage container and the reimbursement as provided in Section 10.

(5) The Department shall provide for the disposal of empty beverage containers as required under paragraph (2). The Department shall give priority consideration to the recycling of the empty beverage containers, to the extent possible, before any other appropriate disposal method is considered or implemented.

Section 20. Refusal to accept containers.

(a) Except as provided in subsection (c) of Section 25, a dealer, a person operating a redemption center, a distributor, or a manufacturer may refuse to accept any empty beverage container which does not have stated on it a refund value as provided under Section 10.

(b) A dealer may refuse to accept and to pay the refund value of any empty beverage container if the place of business of the dealer and the kind and brand of empty beverage containers are included in an order of the Department approving a redemption center under Section 30.

(c) A manufacturer or distributor may refuse to accept and to pay the refund value and reimbursement as provided in Section 10 on any empty beverage container that was picked up by a dealer agent from a dealer outside the geographic territory served by the manufacturer or distributor.

Section 25. Refund value stated on container; exceptions.

(a) Each beverage container sold or offered for sale in this State by a dealer shall clearly indicate by embossing or by a stamp, label, or other method securely affixed to the container, the refund value of the container. The Department shall specify, by rule, the minimum size of the refund value indication on the beverage containers.

(b) A person, except a distributor, shall not import into this State on or after the effective date of this Act a beverage container that does not have the refund value indication securely affixed to it. The provisions of this subsection (b) do not apply if:

(1) for beverage containers containing alcoholic liquor, the total capacity of the container is not more than one quart or, in the case of alcoholic liquor personally obtained outside the United States, one gallon;

(2) for beverage containers containing beer, the total capacity of the container is not more than 288 fluid ounces; and

(3) for all other beverage containers, the total capacity of the container is not more than 576 fluid ounces.

(c) The provisions of this Section do not apply to a refillable glass beverage container that has a brand name permanently marked on it and has a refund value of not less than $0.05, to any other refillable beverage container that has a refund value of not less than $0.05 and which is exempted by the Department, or to a beverage container sold aboard a commercial airliner or passenger train for consumption on the premises.

Section 30. Redemption centers.

(a) To facilitate the return of empty beverage containers and to serve dealers, any person may establish a redemption center, subject to the approval of the Department, at which consumers may return empty beverage containers and receive payment of the refund value of those beverage containers.

(b) An application for approval of a redemption center shall be filed with the Department. The application shall state the name and address of the person responsible for the establishment and operation of the redemption center, the kind and brand names of the beverage containers that will be accepted at the redemption center, and the names and addresses of the dealers to be served by the redemption center. The application shall contain such other information as the Department may reasonably require.

(c) The Department shall approve a redemption center if it finds that the redemption center will provide a convenient service to consumers for the return of empty beverage containers. The order of the Department approving a redemption center shall state the dealers to be served by the redemption center and the kind and brand names of empty beverage containers that the redemption center must accept. The order may contain such other provisions to ensure that the redemption center will provide a convenient service to the public as the Department may determine.

(d) The Department may review the approval of any redemption center at any time. After written notice to the person responsible for the establishment and operation of the redemption center and the dealers served by the redemption center, the Department may, after hearing, withdraw approval of a redemption center if the Department finds there has not been compliance with the Department's order approving the redemption center or if the redemption center no longer provides a convenient service to the public.

(e) All approved redemption centers shall meet applicable health standards.

Section 35. Unapproved redemption centers. Any person may establish a redemption center which has not been approved by the Department. Consumers may return empty beverage containers at those redemption centers and receive payment of the refund value of the beverage containers. The establishment of an unapproved redemption center shall not relieve any dealer from the responsibility of redeeming any empty beverage containers of the kind and brand sold by the dealer.

Section 40. Distributors' agreements authorized. A distributor may enter into a contract or agreement with any other distributor, manufacturer, or person for the purpose of collecting or paying the refund value on, or disposing of, beverage containers as provided in this Act.

Section 45. Redemption of refused nonrefillable metal beverage containers.

If the refund value indication required under Section 10 on an empty nonrefillable metal beverage container is readable but the redemption of the container is lawfully refused by a dealer or person operating a redemption center under other Sections of this Act or rules adopted pursuant to this Act, the container shall be accepted and the refund value paid to a consumer as provided in this Section. Each beer distributor selling nonrefillable metal beverage containers in this State shall provide individually or collectively by contract or agreement with a dealer, person operating a redemption center, or another person, at least one facility in the county seat of each county where refused empty nonrefillable metal beverage containers having a readable refund value indication as required by this Act are accepted and redeemed.

Section 50. Administrative review. Any person who is adversely affected by a final decision of the Department under this Act may have that decision judicially reviewed. The provisions of the Administrative Review Law shall apply to and govern all proceedings for the judicial review of final administrative decisions of the Department. The term "administrative decisions" is as defined in Section 3-101 of the Code of Civil Procedure.

Section 55. Penalties.

(a) Any person who violates the provisions of Section 10, 15, or 25, or a rule adopted under this Act, shall be guilty of a business offense punishable by a fine of not less than $1,000 for each offense.

(b) A distributor who collects or attempts to collect a refund value on an empty beverage container when the distributor has paid the refund value on the container to a dealer, redemption center, or consumer is guilty of a business offense punishable by a fine of not less than $10,000 for each offense.

(c) Any person who does any of the following acts is guilty of a business offense punishable by a fine of not less than $10,000 for each offense:

(1) Collects or attempts to collect the refund value on the container a second time, with the knowledge that the refund value has once been paid by the distributor to a dealer, redemption center or consumer.

(2) Manufactures, sells, possesses, or applies a false or counterfeit label or indication which shows or purports to show a refund value for a beverage container, with intent to use the false or counterfeit label or indication.

(3) Collects or attempts to collect a refund value on a container with the use of a false or counterfeit label or indication showing a refund value, knowing the label or indication to be false or counterfeit.

(d) As used in this Section, a false or counterfeit label or indication means a label or indication purporting to show a valid refund value which has not been initially applied as authorized by a distributor.

(e) Subsection (b) and paragraph (1) of subsection (c) of this Section do not apply to empty beverage containers which are intended to be refillable and are in a standard of condition except for sanitization to be refillable by the manufacturer.

Section 60. Rulemaking. The Department may adopt rules for the implementation and enforcement of this Act in accordance with the provisions of the Illinois Administrative Procedure Act.

Section 99. Effective date. This Act takes effect July 1, 2017.