New Hampshire 2009 bill text

HB 675

The following text was found at http://www.gencourt.state.nh.us/legislation/2009/hb0675.html

AN ACT requiring a refundable deposit on beverage containers.

SPONSORS: Rep. Owen, Merr 4; Rep. Messier, Hills 17; Rep. Keans, Straf 1

COMMITTEE: Environment and Agriculture

ANALYSIS

This bill requires a refundable deposit on beverage containers.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0646

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT requiring a refundable deposit on beverage containers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Returnable Beverage Containers. Amend RSA by inserting after chapter 149-M the following new chapter:

CHAPTER 149-N

RETURNABLE BEVERAGE CONTAINERS

149-N:1 Definitions. In this chapter:

I. “Beverage” means beer, ale, or other drink produced by fermenting malt, wine, wine coolers, soda, or non carbonated water and all non alcoholic drinks in liquid form and intended for internal human consumption, except for unflavored rice milk, unflavored soy milk, milk, and dairy derived products.

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

III. “Commissioner” means the commissioner of the department of environmental services.

IV. “Consumer” means an individual who purchases a beverage in a beverage container for use or consumption.

V. “Dealer” means a person who sells, offers to sell, or engages in the sale of beverage containers to a consumer, including an operator of a vending machine containing beverages in beverage containers.

VI. “Department” means the department of environmental services.

VII. “Distributor” means a person who engages in the sale of beverages in beverage containers to a dealer in this state and includes a manufacturer who engages in such sales.

VIII. “Initiator of deposit” or “initiator” means a manufacturer, distributor, or other person who initiates a deposit on a beverage container.

IX. “Local redemption center” means a place of business that deals in acceptance of empty returnable beverage containers from either consumers or dealers, or both.

X. “Manufacturer” means a person who bottles, cans, or otherwise places beverages in beverage containers.

XI. “Nonrefillable” means a beverage container which, after being used by a consumer, is not to be reused as a beverage container by a manufacturer.

XII. “Operator of a vending machine” means an owner of a vending machine, the person who refills it, or the owner or lessee of the property on which it is located.

XIII. “Person” means an individual, partnership, corporation or other legal entity,

XIV. “Premises” means the property of the dealer or his lessor on which the sale is made.

XV. “Refillable” means a beverage container which, after being used by a consumer is to be reused as a beverage container at least 5 times by a manufacturer.

XVI. “Unflavored soymilk” means any liquid containing no additional flavoring ingredients and intended for internal human consumption, the primary protein source of which is soy protein derived from whole soybeans, isolated soy protein, soy protein concentrate, soy flour, spray dried tofu, or spray dried soymilk.

XVII. “Rice milk’ means and liquid intended for internal human consumption of which the primary protein source is rice protein derived from partially milled brown rice.

XVIII. “Reverse vending machine” means an automated devise that uses a laser scanner and microprocessor to accurately recognize the universal product code on 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.

XIX. “Use of 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.

XX “Wine” for this purpose does not include wine coolers.

XXI. “Wine coolers” means a beverage of less than 8 percent alcohol content by volume consisting of wine and:

(a) Plain sparkling or carbonated water; and

(b) Any one or more of the following:

(1) Fruit juices.

(2) Fruit adjuncts.

(3) Artificial or natural flavorings.

(4) Preservatives.

(5) Colorings.

(6) Any other natural or artificial blending material.

149-N:2 Refund Value. To encourage container reuse and recycling, every beverage container sold or offered for sale to a consumer in this state shall have a deposit and refund value. The deposit value shall be $0.05 per container. Handling fees per container shall be $0.035, or $0.03 for commingling.

149-N:3 Ownership of Deposits.

I. 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 section, the hours during which containers will not be accepted shall be conspicuously posted.

II. A distributor may not refuse to accept from arty dealer or local 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 department pursuant to this chapter of the kind, sizes, and brand sold by the distributor or refuse to pay to the dealer or local redemption center the refund value of a beverage container as established.

III. In addition to the payment of the refund value, the initiator of the deposit shall reimburse the redemption center for the cost of handling beverage containers, in the amount of $0.035 per returned container for containers picked up by the initiator. The initiator of the deposit may reimburse the dealer or local redemption center directly or indirectly through a party with which it has entered into a commingling agreement.

IV. In addition to the payment of the refund value, the initiator of the deposit shall reimburse the dealer or local redemption center for the cost of handling beverage containers, at least $0.035 for containers picked up. The initiator of the deposit may reimburse the dealer or local redemption center directly or indirectly through a contracted agent or through a party with which it has entered into a commingling agreement

V. The reimbursement that the initiator of the deposit is obligated to pay the dealer or redemption center must be reduced by $0.005 for any returned container that is subject to a qualified commingling agreement that allows the dealer or redemption center to commingle beverage containers of like product group, material and size. A commingling agreement is qualified for purposes of this paragraph if the department determines that 50 percent or more of the beverage containers of like product group, material or size for which the deposits are being initiated in the state are covered by the commingling agreement. Once the initiator of deposit has established a qualified commingling agreement for containers of a like product group, material and size, the department shall allow additional brands to be included from a different product group if they are of like material. The state, through the department of environmental services shall make every reasonable effort to enter into a qualified commingling agreement under this subparagraph with every other initiator of deposits for beverage containers that are of like product group, size, and material as the beverage containers for which the state is the initiator of deposit.

149-N:4 Obligation to Pick Up Beverage Containers. The obligation to pick up beverage containers subject to this chapter shall be determined as follows:

I. A distributor that initiates the deposit has the obligation to pick up any empty, unbroken, and reasonably clean beverage containers of the particular kind, size, and brand sold by the distributor from dealers from whom that distributor has sold those beverages and from licensed redemption centers. The distributor will pick up from dealers and redemption centers within 7 business days, when the dealers and redemption centers have reached a quantity of 50 bags of cans and/or plastics, and 300 cases of glass.

II. An initiator of the deposit has the obligation to pick up any empty, unbroken, and reasonably clean beverage containers that are commingled pursuant to a commingling agreement along with any beverage containers that the initiator is otherwise obligated to pick up.

III. The obligation of the initiator of the deposit under this section may be fulfilled by the initiator directly or through a party with which it has entered into a commingling agreement.

149-N:5 Commingling of Like Products. For these purposes, like products shall be those that are made up of one of the following:

I. Beer, ale, or other beverage produced by fermenting malt, and wine coolers.

II. Soda.

III. Non-carbonated water.

IV. All other beverages.

149-N:6 Registration of Commingling Agreements. 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 department.

149-N:7 Unclaimed Deposits.

I. An initiator of a deposit shall maintain a separate account to be known as the deposit transaction fund. The initiator shall keep the fund separate from all other revenues and accounts. The initiator shall place in that fund the value of all non refillable beverage containers.

II. The initiator’s abandoned deposit amount at the end of each month shall be the amount equal to the amount of deposits that are or should be in the fund, less the sum of:

(a) Income earned on amount in the fund during that month; or

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

III. Income from the fund may be transferred from the fund for use as funds of the initiator. By the 20th day of each month, an initiator shall forward to the department of revenue administration the initiator’s abandoned deposit amounts determined pursuant to paragraph II. These amounts may be paid from the deposit transaction fund. These amounts shall be treated by the department of revenue administration as a tax.

149-N:8 Rulemaking. The commissioner shall adopt rules under RSA 541-A relative to the administration and enforcement of this chapter.

2 Liquor Fees Unaffected. The fee collected under RSA 178:26, I and the fee collected under RSA 178:30, V shall not be affected by the provisions of this act.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

09-0646

Revised 02/11/09

HB 675 FISCAL NOTE

AN ACT requiring a refundable deposit on beverage containers.

FISCAL IMPACT:

      The Department of Environmental Services, New Hampshire State Liquor Commission, Department of Revenue Administration, and New Hampshire Municipal Association state this bill will increase state revenues and expenditures and will decrease local revenues by an indeterminable amount in FY 2009 and each year thereafter. This bill will have no fiscal impact on county revenues or county and local expenditures.

METHODOLOGY:

    The Department of Environmental Services states this bill requires the Department to administer a refundable deposit program on beverage containers. The Department assumes the effective date of this bill is July 1, 2009, and assumes a five percent growth rate in the program each year following implementation. The Department based revenue estimates on actual Maine revenues, as Maine has enacted similar legislation and the populations of New Hampshire and Maine are comparable. The Department estimates state revenue from unclaimed deposits will increase by $1,200,000 million in FY 2010, $1,260,000 in FY 2011, $1,323,000 in FY 2012, and by $1,389,150 in FY 2013. The Department states it will require four additional positions to establish, administer, and enforce the program: two full-time inspectors (one supervisor position at labor grade 26, one inspector at labor grade 24), one half-time paralegal (labor grade 19), and one half-time administrative assistant (labor grade 12), increasing state expenditures as follows:

Position Costs

FY 2010

FY 2011

FY 2012

FY 2013

Salary (LG 26, FT)

$46,722

$48,770

$50,915

$53,138

Salary (LG 24, FT)

$42,842

$44,753

$46,722

$48,770

Salary (LG 19, 0.5 FTE)

$17,433

$18,145

$18,925

$19,695

Salary (LG 12, 0.5 FTE)

$13,270

$13,757

$14,323

$14,859

Benefits (Four Positions)

$46,859

$50,228

$53,856

$57,766

Overtime

$3,257

$3,420

$3,591

$3,770

Current Expense

$5,940

$6,237

$6,549

$6,876

OIT Charge

$11,682

$12,266

$12,879

$13,523

Office Space

$10,539

$11,066

$11,619

$12,200

Equipment (office furniture, computers, hybrid vehicle)

$35,000

$0

$0

$0

In-State Travel (vehicle maintenance)

$2,300

$2,415

$2,536

$2,663

Out-Of-State Travel (conferences and training)

$2,300

$2,415

$2,536

$2,663

Total Salary and Benefits

$238,144

$213,472

$224,451

$235,923

    The New Hampshire State Liquor Commission states under this bill the Commission would incur costs for the transportation, storage, and personnel associated with picking up empty beverage containers from over 1,300 off-premise licensees and 77 retail stores. Additionally, the Commission anticipates increased expenditures for deposit stickers, labor costs for placing stickers on existing inventory, and accounting processing costs. The Commission assumes the deposit on wine bottles cannot be passed to the consumer without an impact in wine sales, and therefore the Commission will absorb the full impact of the deposit, reducing wine revenue by $1,160,978 (23,219,553 wine bottles sold in FY 2008 x $0.05). Also, the Commission assumes the deposit will reduce the price advantage over other states and may reduce gallons of beer sold by up to 40%. Based on FY 2008 sales, a loss of 40% beer sales would reduce beer tax revenues up to $4,980,000 (41,500,000 gallons sold in FY 2008 x 40% = 16,600,000 x $.30 beer tax). However, the Commission cannot estimate the potential costs associated with these activities at this time. Finally, the Commission is uncertain whether vendor contracts for stickers and transportation could be completed within the 60-day timeframe given as the effective date of this bill.

    The Department of Revenue Administration states it is not clear from this bill what the Department is required to do with the abandoned deposit amounts initiators pay the Department; therefore, the fiscal impact cannot be determined at this time.

    The New Hampshire Municipal Association states the monies generated from the sale of recycled glass, plastic, and aluminum help reduce solid waste disposal costs. The Association states based on 2008 information from DES and assuming the program participation remains flat, local revenue will decrease by $1.4 million in FY 2010 and each year thereafter.

    This bill does not contain an appropriation or establish positions.

Updated February 12, 2009

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