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Full Text of HB3389  100th General Assembly

HB3389 100TH GENERAL ASSEMBLY

  
  

 


 
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.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3389LRB100 05314 HLH 15325 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Beverage Container Deposit Act.
 
6    Section 5. Definitions. As used in this Act unless the
7context otherwise requires:
8    "Beverage" means wine, alcoholic liquor, and beer, all as
9defined in the Liquor Control Act, mineral water, soda water,
10and similar carbonated soft drinks that are in liquid form and
11intended for human consumption.
12    "Beverage container" means any sealed glass, plastic, or
13metal bottle, can, jar, or carton containing a beverage.
14    "Consumer" means any person who purchases a beverage in a
15beverage container for use or consumption.
16    "Dealer" means any person who engages in the sale of
17beverages in beverage containers to a consumer.
18    "Dealer agent" means a person who solicits or picks up
19empty beverage containers from a dealer for the purpose of
20returning the empty beverage containers to a distributor or
21manufacturer.
22    "Department" means the Department of Agriculture.
23    "Distributor" means a person who engages in the sale of

 

 

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1beverages in beverage containers to a dealer in this State,
2including any manufacturer who engages in such sales.
3    "Geographic territory" means the geographical area within
4a perimeter formed by the outermost boundaries served by a
5distributor.
6    "Manufacturer" means any person who bottles, cans, or
7otherwise fills beverage containers for sale to distributors or
8dealers.
9    "Nonrefillable beverage container" means a beverage
10container not intended to be refilled for sale by a
11manufacturer.
12    "Redemption center" means a facility at which consumers may
13return empty beverage containers and receive payment for the
14refund value of the empty beverage containers.
 
15    Section 10. Refund values.
16    (a) A refund value of not less than $0.05 shall be paid by
17the consumer on each beverage container sold in this State by a
18dealer for consumption off the premises. Upon return of the
19empty beverage container upon which a refund value has been
20paid to the dealer or person operating a redemption center and
21acceptance of the empty beverage container by the dealer or
22person operating a redemption center, the dealer or person
23operating a redemption center shall return the amount of the
24refund value to the consumer.
25    (b) In addition to the refund value provided in subsection

 

 

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1(a) of this Section, a dealer or person operating a redemption
2center who redeems empty beverage containers or a dealer agent
3shall be reimbursed by the distributor that is required to
4accept the empty beverage containers in the amount of $0.01 per
5container. A dealer, dealer agent, or person operating a
6redemption center may compact empty metal beverage containers
7with the approval of the distributor that is required to accept
8the containers.
 
9    Section 15. Payment of refund value. Except as provided in
10Section 20:
11        (1) A dealer shall not refuse to accept from a consumer
12    any empty beverage container of the kind, size, and brand
13    sold by the dealer, or refuse to pay to the consumer the
14    refund value of a beverage container as provided under
15    Section 10.
16        (2) A distributor shall accept and pick up from a
17    dealer served by the distributor or a redemption center for
18    a dealer served by the distributor at least weekly, or when
19    the distributor delivers the beverage product if
20    deliveries are less frequent than weekly, any empty
21    beverage container of the kind, size, and brand sold by the
22    distributor, and shall pay to the dealer or person
23    operating a redemption center the refund value of a
24    beverage container and the reimbursement as provided under
25    Section 10 within one week following pickup of the

 

 

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1    containers or when the dealer or redemption center normally
2    pays the distributor for the deposit on beverage products
3    purchased from the distributor if less frequent than
4    weekly. A distributor or employee or agent of a distributor
5    is not in violation of this paragraph if the redemption
6    center is closed when the distributor attempts to make a
7    regular delivery or a regular pickup of empty beverage
8    containers.
9        (3) A distributor is not required to pay to a
10    manufacturer a deposit or refund value on a nonrefillable
11    beverage container.
12        (4) A distributor shall accept from a dealer agent any
13    empty beverage container of the kind, size, and brand sold
14    by the distributor that was picked up by the dealer agent
15    from a dealer within the geographic territory served by the
16    distributor, and the distributor shall pay the dealer agent
17    the refund value of the empty beverage container and the
18    reimbursement as provided in Section 10.
19        (5) The Department shall provide for the disposal of
20    empty beverage containers as required under paragraph (2).
21    The Department shall give priority consideration to the
22    recycling of the empty beverage containers, to the extent
23    possible, before any other appropriate disposal method is
24    considered or implemented.
 
25    Section 20. Refusal to accept containers.

 

 

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1    (a) Except as provided in subsection (c) of Section 25, a
2dealer, a person operating a redemption center, a distributor,
3or a manufacturer may refuse to accept any empty beverage
4container which does not have stated on it a refund value as
5provided under Section 10.
6    (b) A dealer may refuse to accept and to pay the refund
7value of any empty beverage container if the place of business
8of the dealer and the kind and brand of empty beverage
9containers are included in an order of the Department approving
10a redemption center under Section 30.
11    (c) A manufacturer or distributor may refuse to accept and
12to pay the refund value and reimbursement as provided in
13Section 10 on any empty beverage container that was picked up
14by a dealer agent from a dealer outside the geographic
15territory served by the manufacturer or distributor.
 
16    Section 25. Refund value stated on container; exceptions.
17    (a) Each beverage container sold or offered for sale in
18this State by a dealer shall clearly indicate by embossing or
19by a stamp, label, or other method securely affixed to the
20container, the refund value of the container. The Department
21shall specify, by rule, the minimum size of the refund value
22indication on the beverage containers.
23    (b) A person, except a distributor, shall not import into
24this State on or after the effective date of this Act a
25beverage container that does not have the refund value

 

 

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1indication securely affixed to it. The provisions of this
2subsection (b) do not apply if:
3        (1) for beverage containers containing alcoholic
4    liquor, the total capacity of the container is not more
5    than one quart or, in the case of alcoholic liquor
6    personally obtained outside the United States, one gallon;
7        (2) for beverage containers containing beer, the total
8    capacity of the container is not more than 288 fluid
9    ounces; and
10        (3) for all other beverage containers, the total
11    capacity of the container is not more than 576 fluid
12    ounces.
13    (c) The provisions of this Section do not apply to a
14refillable glass beverage container that has a brand name
15permanently marked on it and has a refund value of not less
16than $0.05, to any other refillable beverage container that has
17a refund value of not less than $0.05 and which is exempted by
18the Department, or to a beverage container sold aboard a
19commercial airliner or passenger train for consumption on the
20premises.
 
21    Section 30. Redemption centers.
22    (a) To facilitate the return of empty beverage containers
23and to serve dealers, any person may establish a redemption
24center, subject to the approval of the Department, at which
25consumers may return empty beverage containers and receive

 

 

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1payment of the refund value of those beverage containers.
2    (b) An application for approval of a redemption center
3shall be filed with the Department. The application shall state
4the name and address of the person responsible for the
5establishment and operation of the redemption center, the kind
6and brand names of the beverage containers that will be
7accepted at the redemption center, and the names and addresses
8of the dealers to be served by the redemption center. The
9application shall contain such other information as the
10Department may reasonably require.
11    (c) The Department shall approve a redemption center if it
12finds that the redemption center will provide a convenient
13service to consumers for the return of empty beverage
14containers. The order of the Department approving a redemption
15center shall state the dealers to be served by the redemption
16center and the kind and brand names of empty beverage
17containers that the redemption center must accept. The order
18may contain such other provisions to ensure that the redemption
19center will provide a convenient service to the public as the
20Department may determine.
21    (d) The Department may review the approval of any
22redemption center at any time. After written notice to the
23person responsible for the establishment and operation of the
24redemption center and the dealers served by the redemption
25center, the Department may, after hearing, withdraw approval of
26a redemption center if the Department finds there has not been

 

 

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1compliance with the Department's order approving the
2redemption center or if the redemption center no longer
3provides a convenient service to the public.
4    (e) All approved redemption centers shall meet applicable
5health standards.
 
6    Section 35. Unapproved redemption centers. Any person may
7establish a redemption center which has not been approved by
8the Department. Consumers may return empty beverage containers
9at those redemption centers and receive payment of the refund
10value of the beverage containers. The establishment of an
11unapproved redemption center shall not relieve any dealer from
12the responsibility of redeeming any empty beverage containers
13of the kind and brand sold by the dealer.
 
14    Section 40. Distributors' agreements authorized. A
15distributor may enter into a contract or agreement with any
16other distributor, manufacturer, or person for the purpose of
17collecting or paying the refund value on, or disposing of,
18beverage containers as provided in this Act.
 
19    Section 45. Redemption of refused nonrefillable metal
20beverage containers.
21    If the refund value indication required under Section 10 on
22an empty nonrefillable metal beverage container is readable but
23the redemption of the container is lawfully refused by a dealer

 

 

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1or person operating a redemption center under other Sections of
2this Act or rules adopted pursuant to this Act, the container
3shall be accepted and the refund value paid to a consumer as
4provided in this Section. Each beer distributor selling
5nonrefillable metal beverage containers in this State shall
6provide individually or collectively by contract or agreement
7with a dealer, person operating a redemption center, or another
8person, at least one facility in the county seat of each county
9where refused empty nonrefillable metal beverage containers
10having a readable refund value indication as required by this
11Act are accepted and redeemed.
 
12    Section 50. Administrative review. Any person who is
13adversely affected by a final decision of the Department under
14this Act may have that decision judicially reviewed. The
15provisions of the Administrative Review Law shall apply to and
16govern all proceedings for the judicial review of final
17administrative decisions of the Department. The term
18"administrative decisions" is as defined in Section 3-101 of
19the Code of Civil Procedure.
 
20    Section 55. Penalties.
21    (a) Any person who violates the provisions of Section 10,
2215, or 25, or a rule adopted under this Act, shall be guilty of
23a business offense punishable by a fine of not less than $1,000
24for each offense.

 

 

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1    (b) A distributor who collects or attempts to collect a
2refund value on an empty beverage container when the
3distributor has paid the refund value on the container to a
4dealer, redemption center, or consumer is guilty of a business
5offense punishable by a fine of not less than $10,000 for each
6offense.
7    (c) Any person who does any of the following acts is guilty
8of a business offense punishable by a fine of not less than
9$10,000 for each offense:
10        (1) Collects or attempts to collect the refund value on
11    the container a second time, with the knowledge that the
12    refund value has once been paid by the distributor to a
13    dealer, redemption center or consumer.
14        (2) Manufactures, sells, possesses, or applies a false
15    or counterfeit label or indication which shows or purports
16    to show a refund value for a beverage container, with
17    intent to use the false or counterfeit label or indication.
18        (3) Collects or attempts to collect a refund value on a
19    container with the use of a false or counterfeit label or
20    indication showing a refund value, knowing the label or
21    indication to be false or counterfeit.
22    (d) As used in this Section, a false or counterfeit label
23or indication means a label or indication purporting to show a
24valid refund value which has not been initially applied as
25authorized by a distributor.
26    (e) Subsection (b) and paragraph (1) of subsection (c) of

 

 

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1this Section do not apply to empty beverage containers which
2are intended to be refillable and are in a standard of
3condition except for sanitization to be refillable by the
4manufacturer.
 
5    Section 60. Rulemaking. The Department may adopt rules for
6the implementation and enforcement of this Act in accordance
7with the provisions of the Illinois Administrative Procedure
8Act.
 
9    Section 99. Effective date. This Act takes effect July 1,
102017.