2016 -- H 7193

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LC003440

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO HEALTH AND SAFETY -- PLASTIC BOTTLE AND CONTAINER

LABELING ACT

     Introduced By: Representatives Barros, Abney, Kazarian, Coughlin, and Solomon

     Date Introduced: January 14, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 23-18.15-1 and 23-18.15-2 of the General Laws in Chapter 23-

18.15 entitled "Plastic Bottle and Container Labeling Act" are hereby amended to read as follows:

     23-18.15-1. Definitions. -- As used in this chapter:

      (1) "Label" means a molded imprint or raised symbol on the bottom of a plastic product,

unless the manufacturer demonstrates the reasonable necessity for an alternate location, and shall

include an add-on bar code, or deposit code which shall indicate where the container was sold in

which case it shall be near the product bottom.

      (2) "Plastic" means any material made of polymeric organic compounds and additives

that can be shaped by flow.

      (3) "Plastic bottle" means a plastic container that has a neck that is smaller than the body

of the container, accepts a screw type, snap cap, or other closure and has a capacity of sixteen

(16) fluid ounces or more, but less than five (5) gallons.

      (4) "Rigid plastic container" means any formed or molded container, other than a bottle,

intended for single use, composed predominantly of plastic resin and having a relatively

inflexible finite shape or form with a capacity of eight (8) ounces or more but less than five (5)

gallons.

     (5) "Beverage container" means any sealable bottle, can, jar, or carton which is primarily

composed of glass, metal, plastic or any combination of those materials and is produced for the

purpose of containing a beverage. This definition excludes containers made of biodegradable

materials, aseptic cartons, gable-top boxes, and foil pouches.

     23-18.15-2. Labeling requirements. -- No person shall distribute, sell or offer for sale

any plastic bottle or rigid plastic container, or any product in a plastic bottle or container, unless

the product bottle or container is labeled with a code indicating the plastic resin used to produce

the bottle or container. Plastic bottles or rigid plastic containers with labels and basecups of a

different material shall be coded by their basic material. The code shall consist of a number

placed within a triangle of arrows and letters placed below the triangle of arrows. The triangle

shall be equilateral, formed by three (3) arrows with the apex of each point of the triangle at the

midpoint of each arrow, rounded with a short radius. The arrowhead of each arrow shall be at the

midpoint of each side of the triangle with a short gap separating the pointer from the base of the

adjacent arrow. The triangle, formed by the three (3) arrows curved at their midpoints shall depict

a clockwise path around the code number. The numbers and letters used shall be as follows:

      (1) "1" -- PETE (polyethylene terephthalate);

      (2) "2" -- HDPE (high density polyethylene);

      (3) "3" -- V (vinyl);

      (4) "4" -- LDPE (low density polyethylene);

      (5) "5" -- PP (polypropylene);

      (6) "6" -- PS (polystyrene);

      (7) "7" -- OTHER.

     (b) All eligible beverage containers sold or offered for sale in the state, except those

defined in §23-18.18-2 shall indicate on the container the refund value or "return for refund" or

"return for deposit"; and words "Rhode Island" or "RI".

     (c) Labeling cannot appear solely at the bottom of metal beverage containers. Metal

beverage containers must have the labeling on the top. All eligible beverage containers sold or

offered for sale in the state, except those defined in §23-18.18-2, shall indicate on the beverage

container the refund value or "return for refund" or "return for deposit" and the words "Rhode

Island" or "RI".

     SECTION 2. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

amended by adding thereto the following chapter:

CHAPTER 18.18

BEVERAGE CONTAINER DEPOSIT ACT

     23-18.18-1. Purpose. -- The purposes of this chapter are as follows:

     (1) To provide a sustainable method for capturing beverage containers for recycling;

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     (2) To provide a monetary incentive to consumers to promote the redemption of beverage

containers at the appropriate redemption centers;

     (3) To maximize the amount of recycling of beverage containers by continuing existing

municipal recycling programs and by offering an additional method for consumers to recycle

beverage containers;

     (4) To allow Rhode Island resource recovery corporation to own and operate redemption

centers statewide to ensure beverage containers remain a part of the recyclable materials collected

and resold or reused by the corporation; and

     (5) To allow reverse vending machines at qualified dealer locations as determined by the

Rhode Island resource recovery corporation.

     23-18.18-2. Definitions. -- For the purposes of this chapter, the following definitions

shall have the following meanings:

     (1) "Beverage" means carbonated and non-carbonated, alcoholic and non-alcoholic and

non-alcoholic beverages, including packaged liquors and liquid mixes, but excluding liquids

intended for medicinal use or liquids packaged in aseptic cartons, gable-top boxes, or foil

pouches.

     (2) "Beverage container" means any sealable bottle, can, jar, or carton which is primarily

composed of glass, metal, plastic or any combination of those materials and is produced for the

purpose of containing a beverage. This definition excludes containers made of biodegradable

material, aseptic cartons, gable-top boxes, and foil pouches.

     (3) "Bottler" means any person bottling, canning or otherwise filling beverage containers

for sale to distributors or dealers.

     (4) "Consumer" means any person who purchases a beverage in a beverage container for

use or consumption with no intent to resell that beverage by such dealer at such place of business.

     (5) "Corporation" means the Rhode Island resource recovery corporation as established

pursuant to chapter 19 of this title.

     (6) "Dealer" means any person, including any operator of a vending machine, who

engages in the sale of beverages in beverage containers to consumers in the state, provided that

this does not include a restaurateur selling beverages to be consumed on the premises.

     (7) "Distributor" means any person who engages in the sale of beverages in beverage

containers to dealers in the state including any bottler who engages in such sale.

     (8) "Label" means a molded imprint or raised symbol on or near the bottom of a beverage

container and shall include an add-on bar code, or deposit code, which shall indicate where the

container was sold.

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     (9) "Plastic" means any material made of polymeric organic compounds and additives

that can be shaped by flow.

     (10) "Plastic bottle" means a plastic container that has a neck that is smaller than the body

of the container, accepts a screwtype, snap cap or other closure and has a capacity of sixteen

fluid ounces (16 oz) or more, but less than five (5) gallons.

     (11) "Restaurateur" means any person who operates a business for the sale of prepared

food and/or alcoholic beverages for immediate consumption in the area under their control.

     (12) "Reusable beverage container" means any beverage container so constructed and

designed that it is structurally capable of being refilled and resold by a bottler at least ten (10)

times after its initial use.

     (13) "Rigid plastic container" means any formed or molded container, other than a bottle,

intended for single use, composed predominantly of plastic resin and having a relatively

inflexible finite shape or form with a capacity of eight ounces (8 oz) or more but less than five (5)

gallons.

     (14) "Sales for on-premise consumption" means sales transactions in which beverages are

purchased by a consumer for immediate consumption within the area under the control of a

restaurateur.

     23-18.18-3. Refund value; Exemption. -- (a) Every beverage container sold or offered

for sale in the state shall have a refund value of not less than five cents ($0.05). The provisions of

this section shall not apply to such containers sold by a distributor for use by a common carrier in

the conduct of interstate passenger service.

     (b) Every beverage container, except permanently labeled reusable glass containers,

imported into, or offered for sale in the state by a bottler, distributor, or dealer shall clearly

indicate in at least eight (8) point type, by embossing or by stamp, or by label, or other method

securely affixed to any portion except the bottom of the beverage container, the refund value of

the container. A permanently labeled reusable glass beverage container first imported into, or

offered for sale in the state after the effective date of this act by a bottler, distributor, or dealer

shall clearly indicate in at least eight (8) point type, by embossing or by stamp, or by label, or

other method securely affixed to any portion except the bottom of the permanently labeled

reusable glass beverage container, that the container may be returned for deposit. A redemption

center may refuse to accept from any person any empty beverage container, except a permanently

labeled reusable glass beverage container, which does not state thereon a refund value and may

refuse to accept any permanently labeled reusable glass beverage container which does not state

thereon that the container may be returned for deposit.

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     (c) Every operator of a vending machine which sells beverages in beverage containers

shall post a conspicuous notice on each vending machine indicating that a refund of not less than

five cents ($0.05) is available on each beverage container purchased and where and from whom

that refund may be obtained. The provisions of this paragraph shall not be construed to require

such vending machine operators to provide refunds at the premises wherein such vending

machines are located.

     23-18.18-4. Return of container; Refund; Refusal to accept container. -- (a) Every

consumer shall deposit with the dealer the refund value of each beverage container purchased

from that dealer.

     (b) A dealer that receives deposits under this chapter shall segregate said deposits in a

fund which shall be maintained separately from all other revenues. Said dealer shall remit said

deposits on a quarterly basis to the corporation in a manner prescribed by the corporation. If the

dealer discontinues selling a certain brand beverage, they shall immediately notify the corporation

of the discontinuance, and shall continue to redeem that type of beverage container for at least

sixty (60) days after the date of the last sale of that type of beverage. Sixty (60) days before the

last date for redemption. the dealer shall post notice of that last redemption date.

     (c) A redemption center shall accept from any consumer any empty beverage container of

the type, size and brand sold by a dealer within ninety (90) days, and shall pay the consumer the

refund value of the beverage container.

     (d) The corporation shall establish the beverage container deposit fund which shall be

used for the purposes of accepting and holding the deposits received pursuant to subsection (b) of

this section. Amounts in such fund may only be expended to pay refund values paid for returned

beverage containers pursuant to subsection (c) of this section.

     (e) The obligations to accept or take empty beverage containers and to pay the refund

value for such containers as described in subsection (c) of this section shall apply only to

containers originally sold in the state as filled beverage containers. Any person who tenders to a

redemption center more than ten (10) cases of twenty-four (24) empty beverage containers each,

which they know or have reason to know were not originally sold in the state as filled beverage

containers, for the purpose of obtaining a refund value, shall be subject to the enforcement action

and civil penalties set forth in §23-18.18-10.

     (f) Vending machine exemption. An operator of a vending machine(s) who sells

beverages in containers only in a vending machine(s) may refuse to accept beverage containers

for redemption if there has been posted a conspicuous notice on each vending machine indicating

that a refund of not less five cents ($0.05) is available on each container purchased, and where

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and from whom the refund may be obtained.

     23-18.18-5. Redemption methods. -- (a) The corporation shall establish redemption

centers, at locations determined by the corporation, and shall accept from consumers such

beverage containers for recycling that meet the requirements of §§23-18.12-3 and 23-18.15-2.

     (b) A redemption center may refuse to accept any beverage container which contains

material foreign to the normal contents of the container.

     (c) Except as provided in subsection (b) of this section, a redemption center shall take

from any consumer any empty beverage container sold by a dealer or distributor within the past

ninety (90) days, and shall pay the consumer the refund value of the container.

     (d) Dealers, located within a square footage building area to be determined by the

corporation pursuant to §23-18.18-9(a) shall allow installation of reverse vending machines on

their property. These reverse vending machines shall be located in a sheltered area within the

dealer's physical building and shall be accessible to consumers during the normal hours of

operation. Ownership and operation of the reverse vending machines shall be the responsibility of

the corporation or its contracted agent. If the machine should break down, the dealer must notify

the corporation within twenty-four (24) hours in order for the corporation to provide an alternate

procedure for redemption.

     23-18.18-6. Abandoned deposit amounts; Determination. -- At the end of each quarter,

any amounts that are or should be in the corporation's beverage container deposit fund shall be

deemed to constitute abandoned deposit amounts. Income earned on said fund may be transferred

from said fund for use as funds for the corporation.

     23-18.18-7. Transfer of abandoned deposit amounts. -- By the tenth day after the end

of each quarter the corporation shall remit to the general treasurer seventy-five percent (75%) of

any deposit amounts deemed to be abandoned at the close of the preceding quarter, pursuant to

§23-18.18-6. Such amounts may be paid from the beverage container deposit fund. Amounts

collected by the general treasurer pursuant to this section shall be deposited in the general fund.

The remaining twenty-five percent (25%) of the abandoned deposit amounts may be used by the

corporation for purposes set forth in this chapter and for purposes of supporting municipal and

commercial recycling programs set forth in chapters 18.8 and 18.9 of this title.

     23-18.18-8. Prohibition on certain types of holders. -- No dealer shall sell or offer for

sale in this state containers connected to each other by a separate holding device constructed of

plastic rings or any other device or material which cannot be broken down by bacteria and or by

light into constituent parts.

     23-18.18-9. Administration; Rules and regulations. -- The director of the Rhode Island

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resource recovery corporation shall administer the provisions of this chapter. The director shall,

in accordance with the provisions of chapter 35 of title 42 ("The Administrative Procedures

Act"), promulgate and from time to time revise reasonable rules and regulations to effectuate the

purposes of this chapter; provided that said rules and regulations be promulgated not later than

December 31, 2016.

     23-18.18-10. Penalty. -- (a) The attorney general shall enforce all the provisions of this

chapter. Any bottler, distributor, redemption center or dealer who violates any provisions of this

chapter shall be subject to a civil penalty for each violation of not more than one thousand dollars

($1,000).

     (b) Any dealer failing to make full and timely payments as required by §23-18.18-4(b)

shall pay interest on any unpaid amounts at the rate of one and one half percent (1.5%) for each

month or part thereof until payment is made in full.

     SECTION 3. This act shall take effect on July 1, 2017; provided, that §23-18.18-9 shall

take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- PLASTIC BOTTLE AND CONTAINER

LABELING ACT

***

     This act would create the "Beverage Container Deposit Act" in order to provide a

sustainable method for capturing beverage containers for recycling.

     This act would take effect on July 1, 2017; provided, that §23-18.18-9 would take effect

upon passage.

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