2021 -- H 5113

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LC000025

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO HEALTH AND SAFETY -- MINIATURE ALCOHOLIC BEVERAGE

CONTAINER ACT OF 2021

     

     Introduced By: Representative David A. Bennett

     Date Introduced: January 25, 2021

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 18.18

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MINIATURE ALCOHOLIC BEVERAGE CONTAINER DEPOSIT RECYCLING ACT OF

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2021

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     23-18.18-1. Definitions.

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     As used in this chapter:

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     (1) ''Beverage'' means an alcoholic beverage as described in chapter 1 of title 3, including,

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but not limited to, beer and other malt beverages, wine, or liquor.

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

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

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purpose of containing a beverage. This definition shall not include containers made of

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biodegradable material.

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     (3) ''Bottler'' means any person filling miniature alcoholic beverage containers for sale to

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distributors or dealers, including dealers who bottle or sell their own brand of beverage.

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     (4) ''Consumer'' means any person who purchases an alcoholic beverage in a miniature

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alcoholic beverage container for use or consumption with no intent to resell such beverage.

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     (5) ''Dealer'' means any person, who engages in the sale of alcoholic beverages in miniature

 

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alcoholic beverage containers to consumers in this state.

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     (6) ''Distributor'' means any person who engages in the sale of alcoholic beverages in

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miniature alcoholic beverage containers to dealers in this state including any bottler who engages

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in such sales.

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     (7) ''Label'' means a molded imprint or raised symbol on or near the bottom of a plastic

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product.

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     (8) "Miniature alcoholic beverage container" means any sealable bottle, can, jar, or carton,

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which is primarily composed of glass, metal, plastic, rigid plastic, or any combination of those

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materials that has a capacity of not more than one hundred milliliters (100 ml) and is produced for

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the purpose of containing an alcoholic beverage as described in chapter 1 of title 3, which containers

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are sometimes colloquially referred to as "nips."

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

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can be shaped by flow.

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     23-18.18-2. Refund value; Exemption.

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     Every miniature alcoholic beverage container sold or offered for sale in the state shall have

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a refund value of not less than fifty cents ($0.50). The provisions of this section shall not apply to

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such containers sold by a distributor for use by a common carrier in the conduct of interstate

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passenger service.

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     23-18.18-3. Refund of miniature alcoholic beverage container; Refusal to accept

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miniature alcoholic beverage container.

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     (a) Every consumer shall deposit with the dealer the refund value of each miniature

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alcoholic beverage container purchased from that dealer.

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     (b) Except as provided in subsection (f) of this section, a dealer shall accept from any

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person during business hours any empty miniature alcoholic beverage container of the type, size

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and brand sold by the dealer within the past sixty (60) days and shall pay that person the refund

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value of each miniature alcoholic beverage container returned.

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     (c) Except as provided in subsection (f) of this section, a distributor shall accept from any

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dealer any empty miniature alcoholic beverage container of the type, size and brand sold by the

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distributor within the past sixty (60) days and shall pay the dealer the refund value of the miniature

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alcoholic beverage container plus a handling fee of at least four cents ($0.04) per container if the

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empty miniature alcoholic beverage container is presented at the time of and at the location at which

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the dealer obtains filled miniature alcoholic beverage containers from the distributor.

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     (d) Except as provided in subsection (f) of this section, a bottler shall accept from a

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distributor or a dealer any empty reusable miniature alcoholic beverage container of the type, size,

 

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and brand sold by the bottler within the past sixty (60) days and shall pay the distributor or dealer

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the refund value of the beverage container plus a handling fee of at least four cents ($0.04) per

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container.

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     (e) Any person may establish a redemption center and shall have the right to determine

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what type, size and brand of miniature alcoholic beverage container shall be accepted. Except as

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provided in subsection (f) of this section, a distributor shall take from any redemption center any

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empty miniature alcoholic beverage container of the type, size and brand sold by the distributor

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within the past sixty (60) days and shall pay the redemption center the refund value of the container

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plus a handling fee of at least four cents ($0.04) per container.

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     (f) A dealer, distributor, redemption center or bottler may refuse to accept any miniature

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alcoholic beverage container which contains material foreign to the normal contents of the

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container.

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     (g) Any bottler or distributor who receives deposits and/or handling charges under this

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chapter shall segregate said deposits or handling charges in a fund which shall be maintained

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separately from all other revenues. Said bottler or distributor shall report on a monthly basis to the

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Rhode Island resource recovery corporation and the division of revenue, the amount of said deposits

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or handling charges received and the amount refunded.

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     (h) Any bottler or distributor who is subject to the provisions of subsection (c), (d) or (e)

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of this section shall maintain a separate account to be known as the deposit transaction fund. Said

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fund shall be kept separate from all other revenues and accounts. Each bottler or distributor shall

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place in said fund the refund value for all miniature alcoholic beverage containers it sells subject

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to the provisions of this chapter.

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     Except as specified in subsection (d) of this section, amounts in such fund may only be

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expended to pay refund values paid after January 1, 2022, for returned miniature alcoholic beverage

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containers pursuant to subsection (c), (d) or (e) of this section. Amounts in such fund shall not be

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used to pay any handling fees required by subsection (c), (d) or (e) of this section. Each such fund

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shall be maintained by said bottlers and distributors on behalf of consumers who have purchased

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refundable miniature alcoholic beverage containers and on behalf of the state; except as specified

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in § 23-18.18-6, for no purpose are amounts in such fund to be regarded as income of said bottlers

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or distributors.

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     (i) The obligations to accept or take empty miniature alcoholic beverage containers and to

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pay the refund value and handling fees for such containers as described in subsections (b), (c), (d)

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and (e) of this section shall apply only to containers originally sold in this state as filled miniature

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alcoholic beverage containers. Any person who tenders to a dealer, distributor, redemption center

 

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or bottler more than ten (10) cases of twenty-four (24) empty miniature alcoholic beverage

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containers each, which a person knows or has reason to know were not originally sold in this state

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as filled miniature alcoholic beverage containers, for the purpose of obtaining a refund value or

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handling fee, shall be subject to the enforcement action and civil penalties set forth in § 23-18.18-

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10. For the purpose of this section and § 23-18.18-10, the term "person" shall include any

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individual, partnership, corporation, or other combination or entity.

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     23-18.18-4. Reports by bottlers and distributors of transactions affecting deposit

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transaction fund.

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     Every bottler or distributor shall report to the director of the division of revenue by the

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tenth day of each month, concerning transactions affecting its deposit transaction fund in the

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preceding month. Such report shall be made in a form prescribed by said director and shall include

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the number of miniature alcoholic beverage containers sold and the number of miniature alcoholic

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beverage containers returned in said month, the amount of deposits received in and payments made

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from said fund in said month and the most recent three (3) month period, any income earned on

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amounts in the deposit transaction fund during said preceding month, the balance in said deposit

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transaction fund at the close of said preceding month, and such other information as the director of

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revenue may require in furtherance of the director's duties pursuant to this chapter.

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     23-18.18-5. Abandoned deposit amounts; Determination and transfer.

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     (a) At the end of each month, any amounts that are or should be in a bottler's or distributor's

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deposit transaction fund and that are in excess of the sum of:

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     (1) Interest income earned on amounts in said account during that month; and

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     (2) The total amount of refund values received by said bottler or distributor for miniature

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alcoholic beverage containers during that month and the two (2) preceding months, shall be deemed

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

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fund for use as funds of the bottler or distributor.

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     (b) By the tenth day of each month, each bottler or distributor shall turn over to the director

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of the division of revenue any deposit amounts deemed to be abandoned at the close of the

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preceding month, pursuant to subsection (a) of this section. Such amounts may be paid from the

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deposit transaction fund. Amounts collected by the director of the division of revenue pursuant to

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this subsection shall be deposited in the water pollution control revolving fund established by § 46-

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12.2-6.

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     23-18.18-6. Reimbursements to bottlers or distributors.

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     If in any month the authorized payments from the deposit transaction fund by a bottler or

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distributor pursuant to § 23-18.18-2 exceed the funds that are or should be in its deposit transaction

 

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fund, the state shall reimburse said bottler or distributor, from amounts received pursuant to § 23-

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18.18-5, for those refunds paid by the bottler or distributor for miniature alcoholic beverage

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containers for which the funds that are or should be in its deposit transaction fund are insufficient;

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provided, however, that such reimbursements to a bottler or distributor for a month shall not exceed

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the excess of:

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     (1) Amounts paid by said bottler or distributor to the state pursuant to § 23-18.18-5 in the

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preceding twenty-four (24) months over;

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     (2) Amounts paid by this state to said bottler or distributor pursuant to this section during

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said twenty-four (24) months.

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     23-18.18-7. Holding or connecting devices; Breakdown by bacteria or light.

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     No dealer shall sell or offer for sale in the state containers connected to each other by a

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separate holding device constructed of plastic rings or any other device or material which cannot

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be broken down by bacteria and or by light into constituent parts as provided in chapter 38 of this

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title.

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     23-18.18-8. Refund value; Statement on container.

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     Every miniature alcoholic beverage container, or offered for sale in the state by a bottler,

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distributor, or dealer shall clearly indicate, by embossing or by stamp, or by label, or other method

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securely affixed to any portion except the bottom of the miniature alcoholic beverage container,

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the refund value of the container. A permanently labelled reusable glass miniature alcoholic

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beverage container first imported into, or offered for sale in this state after the effective date of this

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chapter by a bottler, distributor, or dealer shall clearly indicate, by embossing or by stamp, or by

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label, or other method securely affixed to any portion except the bottom of the permanently labelled

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reusable glass miniature alcoholic beverage container, that the container may be returned for

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deposit. A dealer, distributor, redemption center, or bottler, may refuse to accept from any person

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any empty miniature alcoholic beverage container which does not state thereon a refund value.

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     23-18.18-9. Administration of provisions relating to bottlers and distributors; rules

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and regulations.

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     (a) The director of the department of environmental management shall administer the

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provisions of §§ 23-18.18-1, 23-18.18-2, 23-18.18-3(a) through (f), inclusive, 23-18.18-7, and 23-

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18.18-8. Said director shall promulgate rules and regulations to effectuate the purposes of said

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sections.

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     (b) The director of the division of revenue shall administer the provisions of §§ 23-18.18-

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3 (g) through (i), 23-18.18-4, 23-18.18-5 and 23-18.18-6.

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     The director of the division of revenue shall promulgate and from time to time revise rules

 

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and regulations to effectuate the purposes of said sections. Said rules and regulations shall include

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a provision to permit bottlers or distributors to borrow, without any interest charge, against their

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deposit transaction funds subject to such terms and conditions as the director deems appropriate.

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     23-18.18-10. Enforcement.

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     (a) The attorney general shall enforce the provisions of this chapter. Any bottler,

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distributor, redemption center or dealer who violates any provisions of this chapter or any person

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who violates § 23-18.1-3 shall be subject to a civil penalty for each violation of not more than one

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thousand dollars ($1,000).

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     (b) Any bottler or distributor failing to make full and timely payments as required by § 23-

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18.18-5 shall pay interest on any unpaid amounts at the rate of one and one-half percent (1.5%) for

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each month or part thereof until payment is made in full; provided, however, that any person,

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including a bottler, distributor, redemption center or dealer, who violates the provisions of § 23-

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18.18-3(i) shall be subject to a civil penalty of not less than one hundred dollars ($100) for each

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container or twenty-five thousand dollars ($25,000) for each tender of containers.

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     SECTION 2. This act shall take effect on January 1, 2022.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- MINIATURE ALCOHOLIC BEVERAGE

CONTAINER ACT OF 2021

***

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     This act would create a refundable fifty cent ($0.50) deposit for miniature alcoholic

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beverage containers, often referred to as "nips."

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     This act would take effect on January 1, 2022.

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