HB4205 103RD GENERAL ASSEMBLY

LRB103 34179 LNS 64002 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4205

Introduced 11/1/2023, by Rep. Hoan Huynh

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.990 new

Creates the Bottle Deposit Act. Provides that, to encourage container reuse and recycling, every beverage container sold or offered for sale to a consumer in the State must have a deposit and refund value. Includes provisions regarding: a dealer as a distributor; requirements for labels, stamps, and brand names on beverage containers; application of the Act; the commingling of beverage containers and entering into commingling agreements; unclaimed deposits for beverage containers not subject to commingling agreements; redemption centers, including licensing requirements; prohibitions on certain types of beverage containers and holders; penalties, ranging from $100 to $1,000; exceptions for beverage containers used on international flights; licensing requirements, including fees for applications; the creation of the Beverage Container Enforcement Fund; administration by the Environmental Protection Agency; the denial of redemption center licenses; the unlawful possession of beverage containers; the prohibition of glass-breaking games; and annual reporting requirements. Makes a conforming change in the State Finance Act.

A BILL FOR

AN ACT concerning safety.

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 Bottle Deposit Act.

Section 5. Definitions. As used in this Act:

"Agency" means the Illinois Environmental Protection Agency.

"Beverage" means:

(1) wine, alcoholic liquor, or beer, as defined in the Liquor Control Act of 1934; or

(2) mineral water, tea, coffee, soda water or similar carbonated soft drinks, bottled water, juice, or other drinks in liquid form intended for human consumption.

"Beverage container" means a bottle, can, jar, carton, or other container made of glass, metal, or plastic that has been sealed by a manufacturer.

"Brand" means a name, symbol, word, or mark that identifies a beverage container, rather than its components, and attributes the beverage container to the owner of the brand.

"Commingling agreement" means an agreement between 2 or more initiators of deposit allowing the beverage containers for which they have initiated deposits to be commingled by dealers and redemption centers, as described in Section 30.

"Consumer" means an individual who purchases a beverage in a beverage container for use or consumption.

"Dealer" means a person who sells, offers to sell, or engages in the sale of beverages in beverage containers to a consumer, including, but not limited to, an operator of a vending machine containing beverages in beverage containers.

"Director" means the Director of the Environmental Protection Agency.

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

"Initiator of deposit" or "initiator" means a manufacturer, distributor, or other person who initiates a deposit on a beverage container under Section 10.

"Manufacturer" means a person that:

(1) sells or offers for sale a beverage in this State under the manufacturer's brand or label;

(2) licenses another person to sell or offer for sale a beverage in this State under the manufacturer's brand or label;

(3) imports into the United States for sale or offering for sale in this State a beverage that is manufactured outside of the United States by another person without a presence in the United States; or

(4) is an out-of-state wholesaler of liquor that holds a license issued under the Liquor Control Act of 1934.

"Nonrefillable" means a beverage container that, after being used by a consumer, is not intended to be reused as a beverage container by the manufacturer.

"Operator of a vending machine" means an owner of a vending machine, the person who refills a vending machine, or the owner or lessee of the property upon which a vending machine is located.

"Person" means an individual, partnership, corporation, or other legal entity.

"Pick-up agent" means an initiator of deposit, distributor or contracted agent of an initiator of deposit, or distributor that receives redeemed beverage containers from a redemption center and transports those containers for recycling.

"Premises" means the property of the dealer or the dealer's lessor on which a sale is made.

"Product stewardship" means a manufacturer's taking responsibility for managing and reducing the life-cycle impacts of the manufacturer's beverage containers, from product design to end-of-life management.

"Product stewardship program" means a program financed and either managed or provided by manufacturers individually or collectively that includes, but is not limited to, the collection, transportation, reuse, and recycling or disposal, or both, of unwanted beverage containers. "Product stewardship program" includes a program financed through an assessment paid by the manufacturers to a stewardship organization.

"Proprietary information" means information that is a trade secret or production, commercial, or financial information the disclosure of which would impair the competitive position of the submittor and would make available information not otherwise publicly available.

"Recycling" or "recycle" means a series of activities by which material that has reached the end of its current use is processed into material for use in the production of new beverage containers.

"Reuse" means a change in ownership of a beverage container or component in a beverage container for use in the same manner and purpose for which it was originally produced.

"Redemption center" means a place of business that deals in acceptance of empty, returnable beverage containers from consumers or dealers, or both, and that is licensed under Section 60.

"Refillable" means a beverage container that, after being used by a consumer, is to be reused as a beverage container at least 5 times by a manufacturer.

"Reverse vending machine" means an automated device that uses a laser scanner and microprocessor to accurately recognize the universal product code on beverage containers and to accumulate information regarding containers redeemed, enabling the reverse vending machine to accept containers from redeemers and to issue script for the containers' refund value. "Reverse vending machine" does not include a hand scanner or other similar device.

"Spirits" has the meaning given to that term in Section 1-3.02 of the Liquor Control Act of 1934.

"Stewardship organization" means a corporation, nonprofit organization, or other legal entity created by a manufacturer or group of manufacturers to implement a product stewardship program.

"Unwanted beverage container" means a beverage container that is no longer wanted by its owner or that has been abandoned or discarded or is intended to be discarded by its owner.

"Use or consumption" means the exercise of any right or power over a beverage incident to the ownership thereof, other than the sale, storage, or retention for the purpose of sale of a beverage.

"Wine" has the meaning given to that term in Section 1-3.03 of the Liquor Control Act of 1934. "Wine" does not include wine coolers.

"Wine cooler" means a beverage of less than 8% alcohol content by volume consisting of wine and:

(1) plain, sparkling, or carbonated water; and

(2) any one or more of the following:

(A) fruit juices;

(B) fruit adjuncts;

(C) artificial or natural flavors or flavorings;

(D) preservatives;

(E) coloring; or

(F) any other natural or artificial blending material.

Section 10. Refund value. To encourage container reuse and recycling, every beverage container sold or offered for sale to a consumer in this State must have a deposit and refund value. The deposit and refund value are determined according to this Section.

(1) For refillable beverage containers, except wine and spirits containers, the manufacturer shall determine the deposit and refund value according to the type, kind, and size of the beverage container. The deposit and refund value may not be less than 5 cents.

(2) For nonrefillable beverage containers, except wine and spirits containers, sold through geographically exclusive distributorships, the distributor shall determine and initiate the deposit and refund value according to the type, kind, and size of the beverage container. The deposit and refund value may not be less than 5 cents.

(3) For nonrefillable beverage containers, except wine and spirits containers, not sold through geographically exclusive distributorships, the deposit and refund value may not be less than 5 cents.

(4) For wine and spirits containers having a volume of 50 milliliters or less, the refund value may not be more than 5 cents. For wine and spirits containers having a volume greater than 50 milliliters, the refund value may not be less than 15 cents.

Section 15. Dealer as distributor. Whenever a dealer or group of dealers receives a shipment or consignment of, or in any other manner acquires, beverage containers outside the State for sale to consumers in the State, the dealer or dealers shall comply with this Act as if they were distributors as well as dealers.

Section 20. Labels; stamps; brand names.

(a) Except as provided in subsections (b) and (d), the refund value and the word "Illinois" or the abbreviation "IL" must be clearly indicated on every refundable beverage container sold or offered for sale by a dealer in this State by embossing, stamping, labeling, or other method of secure attachment to the beverage container. The refund value may not be indicated on the bottom of the container.

(b) With respect to nonrefillable beverage containers the deposits for which are initiated under paragraph (3) of Section 10, the refund value and the word "Illinois" or the abbreviation "IL" must be clearly indicated on every refundable beverage container sold or offered for sale by a dealer in this State by permanently embossing or permanently stamping the beverage containers, except in instances when the initiator of deposit has specific permission from the Agency to use stickers or similar devices. The refund value may not be indicated on the bottom of the container.

(c) Notwithstanding subsection (a) and with respect to nonrefillable beverage containers, for the deposits that are initiated under paragraph (2) of Section 10, the refund value and the word "Illinois" or the abbreviation "IL" may be clearly indicated on refundable beverage containers sold or offered for sale by a dealer in this State by use of stickers or similar devices if those containers are not otherwise marked in accordance with subsection (a). A redemption center shall accept containers identified by stickers in accordance with this subsection or by embossing or stamping in according with subsection (a).

(d) Refillable glass beverage containers of carbonated beverages, for which the deposit is initiated under paragraph (1) of Section 10, that have a refund value of not less than 5 cents and a brand name permanently marked on the container are not required to comply with subsection (a). The exception provided by this subsection does not apply to glass beverage containers that contain spirits, wine, or malt liquor.

(e) An initiator of deposit shall register the container label of any beverage offered for sale in the State on which it initiates a deposit. Registration must be on forms or in an electronic format provided by the Agency and must include the universal product code for each combination of beverage and container manufactured. The initiator of deposit shall renew a label registration annually and whenever that label is revised by altering the universal product code or whenever the container on which it appears is changed in size, composition, or glass color. The initiator of deposit shall also include, as part of the registration, the method of collection for that type of container, identification of a collection agent, identification of all the parties to a commingling agreement that applies to the container, and proof of the collection agreement. The Agency may charge a fee for registration and registration renewals under this subsection.

(f) A beverage container that is sold or distributed in the State that is not in compliance with the initiator of deposit or the labeling registration requirements established in this Section may be removed from sale by the Agency.

Section 25. Application.

(a) Except as otherwise provided in this Section, a dealer operating a retail space of 5,000 square feet or more may not refuse to accept from any consumer or other person who is not a dealer any empty, unbroken, and reasonably clean beverage container or refuse to pay, in cash, the refund value of the returned beverage container as established by Section 10 unless the dealer has a written agreement with a redemption center to provide redemption services on behalf of the dealer and that redemption center:

(1) is located within 10 miles from the dealer, as measured along public roadways; or

(2) if there is no redemption center located within 10 miles from the dealer under paragraph (1), is the redemption center in closest proximity to the dealer, as measured along public roadways.

This subsection does not require an operator of a vending machine to maintain a person to accept returned beverage containers on the premises where the vending machine is located.

(b) A dealer may limit the total number of beverage containers that the dealer will accept from any one consumer or other person in any one business day to 240 containers, or any other number greater than 240.

(c) A dealer may refuse to accept beverage containers during no more than 3 hours in any one business day. If a dealer refuses to accept containers under this subsection the hours during which the dealer will not accept containers must be conspicuously posted.

(d) A distributor may not refuse to accept from any dealer or redemption center any empty, unbroken, and reasonably clean beverage container or any beverage container that has been processed through an approved reverse vending machine that meets the requirements of rules adopted by the Agency under this Act of the kind, size, and brand sold by the distributor or refuse to pay to the dealer or redemption center the refund value of a beverage container as established by Section 10.

(e) Notwithstanding subsection (g), a distributor or its agent may refuse to accept or pay the refund value and handling costs to a dealer, redemption center, or other person for a beverage container that has been processed by a reverse vending machine in a way that has reduced the recycling value of the container below market value. This subsection may not be interpreted to prohibit a written processing agreement between a distributor and a dealer or redemption center and does not relieve a distributor of its obligation under subsection (g) to accept empty, unbroken, and reasonably clean beverage containers. The Agency shall adopt rules to establish the recycling value of beverage containers under this subsection and the rules may authorize the use of a third party vendor to determine if a beverage container has been processed by a reverse vending machine in a manner that has reduced the recycling value below current market value. The rules must outline the method of allocating among the parties involved the payment for third party vendor costs.

(f) Reimbursement of handling costs is governed by this subsection.

(1) In addition to the payment of the refund value, the initiator of deposit under paragraphs (1), (2), and (4) of Section 10 shall reimburse the dealer or redemption center for the cost of handling beverage containers subject to Section 10, in an amount that equals at least 4.5 cents per returned container for containers picked up by the initiator after January 1, 2025. The initiator of deposit may reimburse the dealer or redemption center directly or indirectly through a party with which it has entered into a commingling agreement.

(2) In addition to the payment of the refund value, the initiator of deposit under paragraph (3) of Section 10 shall reimburse the dealer or redemption center for the cost of handling beverage containers subject to Section 10 in an amount that equals at least 4.5 cents for containers picked up on or after January 1, 2025. The initiator of deposit may reimburse the dealer or redemption center directly or indirectly through a contacted agent or through a party with which it has entered into a commingling agreement.

(g) The obligation to pick up and recycle beverage containers subject to this Act is determined by this subsection.

(1) A distributor that initiates the deposit under paragraph (2) or (4) of Section 10 has the obligation to pick up and recycle any empty, unbroken, and reasonably clean beverage containers of the particular kind, size, and brand sold by the distributor from dealers to whom that distributor has sold those beverages and from licensed redemption centers. A distributor that, within this State, sells beverages under a particular label exclusively to one dealer, which dealer offers those labeled beverages for sale at retail exclusively at the dealer's establishment, shall pick up any empty, unbroken, and reasonably clean beverage containers of the kind, size, and brand sold by the distributor to the dealer only from those licensed redemption centers that are located within 25 miles from the dealer, as measured along public roadways. A dealer that manufactures its own beverages for exclusive sale by that dealer at retail has the obligation of a distributor under this Section. The Agency may establish by rule, in accordance with the Illinois Administrative Procedure Act, criteria prescribing the manner in which distributors shall fulfill the obligations imposed by this paragraph. The rules may establish a minimum number or value of containers below which a distributor is not required to respond to a request to pick up empty containers. Any rules adopted under this paragraph must allocate the burdens associated with the handling, storage, transportation, and recycling of empty containers to prevent unreasonable financial or other hardship.

(2) The initiator of deposit under paragraph (3) of Section 10 has the obligation to pick up and recycle any empty, unbroken, and reasonably clean beverage containers of the particular kind, size, and brand sold by the initiator from dealers to whom a distributor has sold those beverages and from licensed redemption centers. The obligation may be fulfilled by the initiator directly or indirectly through a contracted agent.

(3) An initiator of deposit under paragraph (2), (3), or (4) of Section 10 has the obligation to pick up and recycle any empty, unbroken, and reasonably clean beverage containers that are commingled under a commingling agreement along with any beverage containers that the initiator is otherwise obligated to pick up and recycle under paragraphs (1) and (2).

(4) The initiator of deposit or initiators of deposit who are members of a commingling agreement have the obligation under this subsection to pick up and recycle empty, unbroken, and reasonably clean beverage containers of the particular kind, size, and brand sold by the initiator from dealers to whom a distributor has sold those beverages and from licensed redemption centers every 15 days. The initiator of deposit or initiators of deposit who are members of a commingling agreement have the obligation to make additional pick ups when a redemption center has collected 10,000 beverage containers from that initiator of deposit or initiators of deposit who are members of the commingling agreement.

The obligations of the initiator of deposit under this subsection may be fulfilled by the initiator directly or indirectly through a party with which it has entered into a commingling agreement. A contracted agent hired to pick up beverage containers for one or more initiators of deposit is deemed to have made a pick up at a redemption center for those initiators of deposit when it picks up beverage containers belonging to those initiators of deposit.

(h) A dealer or redemption center has an obligation to pick up plastic bags that are used by that dealer or redemption center to contain beverage containers. Plastic bags used by a dealer or redemption center and the cost allocation of these bags must conform to rules adopted by the Agency concerning size and gauge.

(i) The obligations to accept or take empty beverage containers and to pay the refund value and handling fees for such containers as described in subsections (a), (d), (f), and (g) apply only to containers originally sold in this State as filled beverage containers. A person who tenders to a dealer, distributor, redemption center, or bottler more than 48 empty beverage containers that the person knows or has reason to know were not originally sold in this State as filled beverage containers is subject to the enforcement action and civil penalties set forth in this subsection. At each location where consumers tender containers for redemption, dealers and redemption centers must conspicuously display a sign in letters that are at least one inch in height with the following information: "WARNING: Persons tendering containers for redemption that were not originally purchased in this State may be subject to a fine of greater than $100 per container or $25,000 for each tender." A person who violates the provisions of this subsection is subject to a civil penalty of the greater of $100 for each container or $25,000 for each tender of containers.

(j) The Agency may revoke the license of a dealer or redemption center that has been adjudged to have committed a violation of this Section.

(k) In order to prevent fraud from the redemption of beverage containers not originally sold in this State, this subsection governs the redemption of more than 2,500 beverage containers.

(1) A person tendering for redemption more than 2,500 beverage containers at one time to a dealer or redemption center must provide to the dealer or redemption center that person's name and address and the license plate number of the vehicle used to transport the beverage containers. The dealer or redemption center redeeming these beverage containers shall forward that information to the Agency within 10 days, and the information must be kept on file for a minimum of 12 months.

(2) After complying at least once with the requirements of paragraph (1), a person need not comply with paragraph (1) each subsequent time that person tenders to a dealer or redemption center for redemption more than 2,500 beverage containers if:

(A) all of the containers were collected at one location in this State;

(B) all proceeds of the refund value benefit a nonprofit organization that has been determined by the United States Internal Revenue Service to be exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986; and

(C) the person tendering the containers for redemption signs a declaration indicating the person's name, the address of the collection point, and the name of the organization or organizations that will receive the refund value.

(l) An initiator of deposit may maintain a civil action in a circuit court against a person, other than a redemption center licensed in accordance with Section 10, that tenders to a redemption center or retailer more than 48 empty beverage containers that the person knows or has reason to know were not originally sold in this State as filled beverage containers. If the initiator of deposit prevails in any action, the initiator of deposit is entitled to an award of reasonable attorney's fees and court costs, including expert witness fees.

Section 30. Commingling of beverage containers.

(a) Notwithstanding any other provisions of this Act to the contrary, 2 or more initiators of deposit may enter into a commingling agreement through which some or all of the beverage containers for which the initiators have initiated deposits may be commingled by dealers and operators of redemption centers as provided in this Section.

An initiator of deposit that enters into a commingling agreement under this Section shall permit any other initiator of deposit to become a party to that agreement on the same terms and conditions as the original agreement. Once the initiator of deposit has established a qualified commingling agreement under the requirements of subsection (c), the Agency shall allow additional brands of beverage containers from a different product group to be included in the commingling agreement if those additional brands are of like material to those containers already managed under the commingling agreement.

For the purposes of this Act and notwithstanding any provision of this Act to the contrary, the State, through the Department of Financial and Professional Regulation and the Liquor Control Board, is deemed to be managing returned containers for which the State has initiated deposits in a commingling program under a qualified commingling agreement as long as the State allows a dealer or redemption center to commingle returned containers of like material.

(b) If initiators of deposit enter into a commingling agreement under this Section, commingling of beverage containers must be by all containers of like product group, material, and size. An initiator of deposit required under subsection (g) of Section 25 to pick up beverage containers subject to a commingling agreement also shall pick up all other beverage containers subject to the same commingling agreement. The initiator of deposit may not require beverage containers that are subject to a commingling agreement to be sorted separately by a dealer or redemption center.

(c) The Agency shall determine that a commingling agreement is qualified for the purposes of this Act if:

(1) 50% or more of beverage containers of like product group, material, and size for which the deposits are being initiated in the State are included in the commingling agreement;

(2) the initiators of deposit included in the commingling agreement are initiators of deposit for beverage containers containing wine and each initiator of deposit sells no more than 100,000 gallons of wine or 500,000 beverage containers containing wine in a calendar year; or

(3) the commingling agreement has been approved by the Agency under subsection (f).

(d) For purposes of this Section, containers are considered to be of like materials if made up of one of the following:

(1) plastic;

(2) aluminum;

(3) metal other than aluminum; and

(4) glass.

(e) For purposes of this Section, like products are those that are made up of one or more of the following:

(1) beer, ale, or other beverage produced by fermenting malt, wine, and wine coolers;

(2) spirits;

(3) soda;

(4) noncarbonated water; and

(5) all other beverages.

(f) Subject to the requirements of this subsection, an initiator of deposit may enter into a commingling agreement for its beverage containers to be managed in a commingling program operated by a third party or by a stewardship organization. The third party or stewardship organization shall submit a plan for the operation of the commingling program to the Agency for review and approval as a qualified commingling agreement. A commingling program under this subsection must:

(1) require redemption centers to commingle all beverage containers of initiators of deposit included by like material;

(2) establish standards to provide for fair apportionment of costs among initiators of deposit included in the program either on the basis of the count of containers redeemed or on the total weight of containers marketed in the State. These standards may provide for the determination of the amount to be paid to a redemption center as based on the unit counts generated by a reverse vending machine, as long as the reverse vending machine is subject to periodic audits by the third party or stewardship organization on a schedule approved by the Agency; and

(3) require that, no later than the 20th day of the month following the end of March, June, September, and December, each initiator of deposit included in the commingling program report to the third party or stewardship organization operating the commingling program regarding its sales of beverages into the State for the previous 3-month period by brand and by number of nonrefillable beverage containers sold by product size and material type as well as the average beverage container weight by material type and size. The third party or stewardship organization shall assign financial responsibility for the costs of operating the commingling program to the initiators of deposit included in the commingling program based on each initiator of deposit's proportion of the total weight of beverage containers marketed in the State by material type or by actual count of containers redeemed.

The third party or stewardship organization operating the commingling program may require an initiator of deposit included in the commingling program to provide financial assurance in the form of a deposit no greater than the initiator of deposit's anticipated costs for beverage container deposits, redemption center handling costs, and any contractual fees for up to 4 months of anticipated sales in the State. The third party or stewardship organization shall retain any financial assurance required under this subsection in a separate account. If an initiator of deposit that has provided financial assurance in accordance with this subsection fails to reimburse the third party or stewardship organization for its incurred costs within 90 days of receipt of an invoice of such costs, the third party or stewardship organization may cover those invoiced costs using the financial assurance provided by the initiator of deposit in accordance with this subsection.

The Agency may approve no more than 2 commingling agreements as qualified commingling agreements under this subsection and may not approve a qualified commingling agreement under this subsection for a period exceeding 10 years.

(g) Not later than 48 hours following the execution or amendment of a commingling agreement, including an amendment that adds an additional party to an existing agreement, the parties shall file a copy of the commingling agreement or amendment with the Agency.

(h) The initiators of deposit participating in a qualified commingling agreement under this Section must submit to the Agency an application for reapproval of that commingling agreement in a form prescribed by the Agency at least 6 months prior to the date of expiration of the Agency's prior approval or reapproval.

After review of an application submitted under this subsection, the Agency may reapprove the commingling agreement for an additional period not to exceed 10 years.

Section 35. Unclaimed deposits.

(a) This Section applies only to those beverage containers that are not subject to a commingling agreement under Section 30.

(b) An initiator of deposit shall maintain a separate account to be known as the initiator's deposit transaction fund. The initiator shall keep that fund separate from all other revenues and accounts. The initiator shall place in that fund the refund value for all nonrefillable beverage containers it sells subject to this Act. Except as specified in subsections (d) and (e), amounts in the initiator's deposit transaction fund may only be expended to pay refund values for returned nonrefillable beverage containers. Amounts in the fund may not be used to pay the handling fees required by this Act. The fund must be maintained by the initiator on behalf of consumers who have purchased products in refundable nonrefillable beverage containers and on behalf of the State. Except as specified in subsections (d) and (e), amounts in the fund may not regarded as income of the initiator.

(c) An initiator of deposit shall report to the Department of Revenue by the 20th day of each month concerning transactions affecting its deposit transaction fund in the preceding month. The report must be in a form prescribed by the Department of Revenue and must include:

(1) the number of nonrefillable beverage containers sold and the number of nonrefillable beverage containers returned in the applicable month;

(2) the amount of deposits received in and payments made from the fund in the applicable month and the most recent 3-month period;

(3) any income earned on amounts in the fund during the applicable month;

(4) the balance in the fund at the close of the applicable month; and

(5) such other information as the Department of Revenue may require.

The report required by this subsection must be treated by the Department of Revenue as a return.

For the purposes of this subsection, "return" means any document, digital file, or electronic data transmission containing information required by this subsection to be reported to the Department of Revenue.

(d) The initiator's abandoned deposit amount, at the end of each month, is the amount equal to the amount of deposits that are or should be in the fund, less the sum of:

(1) income earned on amounts in the fund during that month; and

(2) the total amount of refund values received by the initiator for nonrefillable beverage containers during that month and the 2 preceding months.

Income on the fund may be transferred from the fund for use as funds of the initiator.

(e) By the 20th day of each month, an initiator shall turn over to the Department of Revenue the initiator's abandoned deposit amounts determined under subsection (d). Those amounts may be paid from the deposit fund. Amounts collected by the Department of Revenue under this subsection must be treated by the Department of Revenue as a tax and must be deposited in the General Revenue Fund.

For the purposes of this subsection, "tax" means the total amount required to be paid, withheld, and paid over or collected and paid over with respect to estimated or actual tax liability in this State, any credit or reimbursement allowed or paid in this State that is recoverable by the Department of Revenue, and any amount assessed by the Department of Revenue in this State, including any interest or penalties provided by law. "Tax" also means any fee, fine, penalty, or other debt owed to the State provided for by law if that fee, fine, penalty, or other debt is subject to collection by the Department of Revenue under statute or transferred to the Department of Revenue for collection.

(f) If any month the authorized payments from the deposit transaction fund by an initiator under this Section exceed the funds that are or should be in the initiator's deposit transaction fund, the Department of Revenue shall reimburse the initiator, from amounts received under subsection (e), for those refunds paid by the initiator for nonrefillable beverage containers for which the funds that are or should be in the initiator's deposit transaction fund are insufficient. However, reimbursements paid by the Department of Revenue to an initiator may not exceed amounts paid by the initiator under subsection (e) in the preceding 24-months less amounts paid to the initiator under this subsection during that same 24-month period.

(g) Any uniform tax administration provisions apply to the Department of Revenue's administration of the reports and payments required by this Section.

(h) Except as otherwise provided in this subsection, a manufacturer who produces no more than 50,000 gallons of its product in a calendar year is exempt from the requirements of this Section for that year. A brewer who produces no more than 50,000 gallons of its product or bottler of water who sells no more than 250,000 containers each containing no more than one gallon of its product in a calendar year is exempt from the requirements of this Section for that year.

(i) The Agency may remove from sale a beverage that is sold or distributed in the State by an initiator of deposit who is not in compliance with the reporting and payment requirements established in this Section if the Agency is notified by the Department of Revenue of that noncompliance. The Agency shall allow the sale of the beverage to resume upon notification by the Department of Revenue that all delinquent reports have been submitted and all payments are current.

Section 40. Redemption centers.

(a) Redemption centers may be established and operated by any person or municipality, agency, or municipal joint action agency, subject to the approval of the Director, to serve local dealers and consumers, at which consumers may return empty beverage containers as provided under Section 25.

(b) Application for approval of a redemption center must be filed with the Agency. The application must state the name and address of the person responsible for the establishment and operation of the center and the names and addresses of each dealer with whom the redemption center has entered into a written agreement to provide redemption services in accordance with subsection (a) of Section 25 and their distances from the redemption center, as measured along public roadways, and must include a statement that the redemption center will accept and manage all beverage containers the labels for which are registered in accordance with Section 20.

(c) The Director may, by order, approve the licensing of a redemption center if the redemption center complies with the requirements established under Section 60 and the applicable rules adopted under this Act.

(d) A licensed redemption center may not refuse to accept from any consumer or dealer any empty, unbroken, and reasonably clean beverage container of the kind, size, and brand sold in the State as long as the label for the container is registered under subsection (e) of Section 20 or refuse to pay in cash the refund value of the returned beverage container as established under Section 10. A redemption center or reverse vending machine is not obligated to count containers or to pay a cash refund at the time the beverage container is returned as long as the amount of the refund value due is placed into an account to be held for the benefit of the consumer and funded in a manner that allows the consumer to obtain deposits due within 2 business days of the time of the return.

(e) A redemption center shall tender to pick-up agents only beverage containers sold in the State that are placed in shells, shipping cartons, bags, or other receptacles in a manner that facilities accurate eligible beverage container unit counts.

(f) A redemption center shall prepare beverage containers for pick up by pick-up agents, which are subject to audit under rules adopted by the Agency in accordance with this subsection.

(1) A redemption center shall label each shell, shipping carton, bag, or other receptacle with the business name, initials, redemption center license number, or other unique identifying mark and with the number of beverage containers contained in each shell, shipping carton, bag, or other receptacle.

(2) The Agency may audit shells, shipping cartons, bags, or other receptacles that have been prepared for pick up by a redemption center.

(A) An audit may be conducted by the Agency on-site at the redemption center or off-site at a different location. Off-site audits may involve the use of bulk redemption technology.

(B) An audit must be conducted on a minimum of 1,000 beverage containers.

(C) If the results of an audit vary from the beverage container count labeled in accordance with paragraph (1), the Agency shall, in the case of an on-site audit, require the redemption center to add or remove containers to address the variation in the results of the audit or, in the case of an off-site audit, require the redemption center to accept payment from the initiator of deposit or pick-up agent adjusted in accordance with the variation in the results of the audit.

(D) The Agency may deny an application for approval of a redemption center under subsection (b) if the redemption center, pursuant to audits conducted by the Agency in accordance with this subsection, has repeatedly prepared for pick up shells, shipping cartons, bags, or other receptacles containing less than 97% of the beverage containers that such shells, shipping cartons, bags, or other receptacles are labeled as containing.

(g) The Agency may, in a manner consistent with the Illinois Administrative Procedure Act, revoke the license of a redemption center if the redemption center has not complied with the Director's approval order issued under subsection (c) or if the redemption center no longer provides a convenient service to the public.

Section 45. Prohibition on certain types of containers and holders. A beverage may not be sold or offered for sale to consumers in this State:

(1) in a metal container designed or constructed so that part of the container is detachable for the purpose of opening the container without the aid of a separate can opener, except that nothing in this paragraph prohibits the sale of a container the only detachable part of which is a piece of adhesive-backed tape; and

(2) in a container composed of one or more plastics if the basic structure of the container, exclusive of the closure device, also includes aluminum or steel.

Section 50. Penalties.

(a) A violation of this Act by any person is a civil violation for which a fine of not more than $100 may be adjudged.

(b) Each day a violation under subsection (a) continues or exists constitutes a separate offense.

(c) Notwithstanding subsection (a), a person who knowingly violates subsection (g) of Section 25 commits a civil violation for which a fine of $1,000 may be adjudged.

Section 55. Exception for beverage containers used on international flights. This Act does not apply to any beverage container sold to an airline and containing a beverage intended for consumption on an aircraft flight in interstate or foreign commerce.

Section 60. Licensing requirements.

(a) A license issued annually by the Agency is required before any person may initiate deposits under Section 10, operate a redemption center under Section 40, or act as a contracted agent for the collection of beverage containers under paragraph (2) of subsection (g) of Section 25.

(b) The Agency shall adopt rules establishing the requirements and procedures for issuance of licenses and annual renewals under this Section, including a fee structure.

(c) An applicant under this Section shall include the following fees with a license application and an annual license renewal application.

(1) An applicant for approval of a redemption center shall submit a $100 license fee with an initial application and subsequent annual applications.

(2) An applicant for approval as an initiator of deposit:

(A) of a small brewery or a small winery that produces more than 50,000 gallons of its product or a bottler of water that annually sells no more than 250,000 containers, each containing no more than one gallon of its product, shall submit an annual license fee of $50.

For the purposes of this subparagraph:

"Small brewery" means a person that engages in either or both of the following activities:

(i) producing the person's own malt liquor by fermentation of malt, wholly or partially, or substitute for malt; or

(ii) producing or bottling low-alcohol spirits products consisting of malt liquor to which spirits have been added.

"Small brewery" does not include a person that engages in the activities described in item (i) or (ii) above that produces in total more than 30,000 barrels per year of malt liquor and low-alcohol spirits products consisting of malt liquor to which spirits have been added.

"Small winery" means a person that ferments and ages:

(i) up to 50,000 gallons per year of the person's own wine that is not hard cider; and

(ii) up to 3,000 barrels per year of the person's own wine that is hard cider;

(B) of a small beverage manufacturer whose total production of all beverages from all combined manufacturing locations in less than 50,000 gallons annually, shall submit an annual license fee of $50; and

(C) other than under subparagraph (A) or (B), shall submit a $500 annual license fee with each application.

(3) An applicant for approval as a contracted agent for the collection of beverage containers shall submit a $500 annual license fee with each application.

(d) In licensing redemption centers, the Agency shall consider at least the following:

(1) the health and safety of the public, including sanitation protection when food is also sold on the premises;

(2) the convenience for the public, including the distribution of centers by population or by distance, or both;

(3) the proximity of the proposed redemption center to existing redemption centers and the potential impact that the location of the proposed redemption center may have on an existing redemption center;

(4) the proposed owner's record of compliance with this Act and rules adopted by the Agency under this Act; and

(5) the hours of operation of the proposed redemption center and existing redemption centers in the proximity of the proposed redemption center.

(e) The Agency may grant a license to a redemption center if the following requirements are met:

(1) the Agency may license up to 5 redemption centers in a municipality with a population over 30,000;

(2) the Agency may license up to 3 redemption centers in a municipality with a population over 20,000 but no more than 30,000; and

(3) the Agency may license up to 2 redemption centers in a municipality with a population over 5,000 but no more than 20,000.

For a municipality with a population of no more than 5,000, the Agency may license redemption canters in accordance with rules adopted by the Agency.

(f) Notwithstanding subsection (e):

(1) an entity that is a distributor licensed by or registered with the Agency need not comply with subsection (e);

(2) a reverse vending machine is not considered a redemption center for purposes of subsection (e) when it is located in a licensed redemption center; and

(3) the Agency may grant a license that is inconsistent with the requirements set out in subsection (e) only if the applicant has demonstrated a compelling public need for an additional redemption center in the municipality.

Section 65. Beverage Container Enforcement Fund.

(a) The Beverage Container Enforcement Fund is created as a special fund in the State treasury. Any interest earned on moneys in the Fund shall be deposited into the Fund.

(b) The Fund consists of:

(1) fees for issuance of licenses and license renewals under Section 60;

(2) fees for registration of beverage container labels and registration renewals under subsection (e) of Section 20; and

(3) all other money appropriated or allocated for inclusion in the Fund.

(c) The Agency may combine administration and inspection responsibilities of other programs it administers with administration and enforcement responsibilities under this Act for efficiency purposes. However, money in the Fund may be used to Fund only the portion of staff time devoted to administration and enforcement activities under this Act.

(d) The Fund is a nonlapsing, revolving fund. All money in the Fund must be continuously applied by the Agency to carry out the administrative and enforcement responsibilities of the Agency under this Act.

Section 70. Agency administration. The Agency shall administer this Act and has the authority, following public hearing, to adopt necessary rules to carry it into effect. The Agency may adopt rules governing redemption centers that receive beverage containers from dealers supplied by distributors other than the distributors servicing the area in which the redemption center is located in order to prevent the distributors servicing the area in which the redemption center is located in order to prevent the distributors servicing the area within which the redemption center is located from being unfairly penalized. In addition to other actions required by this Act, the Agency responsibilities include:

(1) The Agency shall establish and maintain a registry of beverage container labels. The registry must contain the information of each beverage type and beverage contained filed under subsection (e) of Section 20 arranged and displayed in an organized and comprehensible manner. The Agency shall update the registry regularly and make information from the registry available upon request.

(2) The Agency shall provide information about the operation of this Act to any affected person whose premises it inspects or visits as part of its licensing and inspection responsibilities.

Section 75. Denial of redemption center license.

(a) The Agency shall notify an applicant denied a license for a redemption center of the reasons for the denial. Written notification must be sent to the mailing address given by the applicant in the application for a redemption center license.

(b) An applicant aggrieved by a decision made by the Agency may appeal the decision to the Pollution Control Board in accordance with Section 40 of the Environmental Protection Act or by filing an appeal with the Appellate Court and serving a copy of the appeal in accordance with the Code of Civil Procedure. The appeal to the Pollution Control Board or to the Appellate Court must be filed and served within 30 days of the mailing of the Agency's decision.

Section 80. Unlawful possession of beverage containers.

(a) A person is guilty of a violation of this Section if that person possesses more than 48 beverage containers that are not labeled as required under Section 20. This Section does not apply to any landfill or waste disposal sites permitted by the Agency under the Environmental Protection Act.

(b) A violation of this Section is a civil violation for which a fine of $100 per container in excess of 48 beverage containers may be adjudged.

(c) The Illinois State Police shall enforce this Section and prosecute any persons found in violation.

(d) An initiator of deposit may maintain a civil action in a circuit court against a person, other than a redemption center licensed in accordance with Section 60, in possession of more than 48 beverage containers that the person knows or has reason to know were not originally sold in this State as filled beverage containers. If the initiator of deposit prevails in any action, the initiator of deposit is entitled to an award of reasonable attorney's fees and court costs, including expert witness fees.

(e) The Agency may, by rule, adopt procedures for designating certain transportation activities and storage or production facilities or portions of facilities as exempt from this Section. Any exemption granted under this subsection must be based on a showing by the person owning or operating the facility or undertaking the activity that:

(1) the beverage containers stored or transported are intended solely for retail sale outside of the State;

(2) the beverage containers are being transported to and stored in a facility licensed by the Department of Revenue. No person shall receive, hold, store, or deliver any alcoholic liquors without a certificate of registration from the Department of Revenue in accordance with Article VIIA of the Liquor Control Act of 1934 prior to labeling and subsequent retail sale within the State; or

(3) the person is licensed by the Department of Revenue. No person shall receive, hold, store, or deliver any alcoholic liquors without a certificate of registration from the Department of Revenue in accordance with Article VIIA of the Liquor Control Act of 1934 to import malt liquor and wine into the State, the beverage containers contain malt liquor or wine and these containers are being transported or stored prior to labeling and subsequent retail sale within the State.

The Agency may require reporting of the numbers of beverage containers imported into and exported from the State under the terms of this subsection.

Section 85. Glass-breaking games. A person, firm, corporation, association, or organization may not hold, conduct, or operate any game, contest scheme, or device in which a person stakes or risks something of value for the opportunity to win something of value if that game, contest, scheme, or device involves the breaking of glass. A violation of this Section is a Class C misdemeanor.

Section 90. Reporting requirements.

(a) This Section establishes annual reporting requirements for initiators of deposit and pick-up agents that are not initiators of deposit.

(b) Each initiator of deposit shall report annually by March 1 to the Agency concerning its deposit transactions in the preceding calendar year. The report must be in a form prescribed by the Agency and must include the number of nonrefillable beverage containers sold by the initiator of deposit in the State by container size, beverage type, and redemption value, delineated at a minimum into wine, spirits, and all other beverage types, and must include the number of nonrefillable beverage containers returned to the initiator of deposit by beverage type and redemption value.

(c) Each pick-up agent that is not an initiator of deposit shall report annually by March 1 to the Agency concerning the redemptions for each initiator of deposit it served in the preceding calendar year. The report must be in a form prescribed by the Agency and must include the number of nonrefillable containers returned by the pick-up agent to each initiator of deposit it served by redemption value, except that the pick-up agent may report by average weight and total weight of beverage containers returned by material type for containers managed by a qualified commingling agreement under Section 30.

(d) Proprietary information submitted to the Agency in a report required under this Section that is identified by the submittor as proprietary information is confidential and must be handled by the Agency in the same manner as other confidential information.

Section 95. The State Finance Act is amended by adding Section 5.990 as follows:

(30 ILCS 105/5.990 new)

Sec. 5.990. The Beverage Container Enforcement Fund.