Bill Text: MI HB6532 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Trade; containers; bottle deposit law; repeal, and provide for distribution of bottle deposit proceeds. Amends secs. 2, 3c, 3e & 3f of 1976 IL 1 (MCL 445.572 et seq.) & repeals 1976 IL 1 (MCL 445.571 - 445.576).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-11-28 - Bill Electronically Reproduced 11/27/2018 [HB6532 Detail]

Download: Michigan-2017-HB6532-Introduced.html

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HOUSE BILL No. 6532

 

 

November 27, 2018, Introduced by Reps. Lilly, Bellino, Rendon, LaFave and Cole and referred to the Committee on Michigan Competitiveness.

 

     A bill to amend 1976 IL 1, entitled

 

"A petition to initiate legislation to provide for the use of

returnable containers for soft drinks, soda water, carbonated

natural or mineral water, other nonalcoholic carbonated drink, and

for beer, ale, or other malt drink of whatever alcoholic content,

and for certain other beverage containers; to provide for the use

of unredeemed bottle deposits; to prescribe the powers and duties

of certain state agencies and officials; and to prescribe penalties

and provide remedies,"

 

by amending sections 2, 3c, 3e, and 3f (MCL 445.572, 445.573c,

 

445.573e, and 445.573f), section 2 as amended by 1998 PA 473 and

 

section 3c as amended and sections 3e and 3f as added by 1996 PA

 

384; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) A dealer within this state shall not sell, offer

 

for sale, or give to a consumer a nonreturnable container or a

 

beverage in a nonreturnable container. This subsection does not

 

apply after December 31, 2022.

 

     (2) A dealer who that regularly sells beverages for

 

consumption off the dealer's premises shall provide on the

 

premises, or within 100 yards of the premises on which the dealer

 

sells or offers for sale a beverage in a returnable container, a

 

convenient means whereby the containers of any kind, size, and

 

brand sold or offered for sale by the dealer may be returned by,

 

and the deposit refunded in cash to, a person whether or not the

 

person is the original customer of that dealer, and whether or not

 

the container was sold by that dealer.

 

     (3) Regional centers for the redemption of returnable

 

containers may be established, in addition to but not as

 

substitutes for, the means established for refunds of deposits

 

prescribed in subsection (2).

 

     (4) Except as provided in subsections (5) and (7), (8), a

 

dealer shall accept from a person an empty returnable container of

 

any kind, size, and brand sold or offered for sale by that dealer

 

and pay to that person its full refund value in cash.

 

     (5) A dealer who that does not require a deposit on a

 

returnable container when the contents are consumed in the dealer's

 

sale or consumption area is not required to pay a refund for

 

accepting that empty container.

 

     (6) Except as provided in subsection (7), (8), a distributor

 

shall accept from a dealer an empty returnable container of any

 

kind, size, and brand sold or offered for sale by that distributor

 

and pay to the dealer its full refund value in cash.

 

     (7) Each beverage container sold or offered for sale by a

 

dealer within this state shall clearly indicate by embossing or by

a stamp, a label, or other method securely affixed to the beverage

 

container, the refund value of the container and the name of this

 

state. This subsection does not apply after December 31, 2022.

 

     (8) A dealer or distributor may, but is not required to,

 

refuse to accept from a person an empty returnable container which

 

does not state on the container the refund value of the container

 

and the name of this state. This subsection does not apply to a

 

refillable container having a refund value of not less than 10

 

cents, having a brand name permanently marked on it, and having a

 

securely affixed method of indicating that it is a returnable

 

container.

 

     (9) (8) A dealer within this state shall not sell, offer for

 

sale, or give to consumers a metal beverage container, any part of

 

which becomes detached when opened.

 

     (10) (9) A person, dealer, distributor, or manufacturer shall

 

not return an empty container to a dealer for a refund of the

 

deposit if a dealer has already refunded the deposit on that

 

returnable container. This subsection does not prohibit a dealer

 

from refunding the deposit on an empty returnable container each

 

time the returnable container is sanitized by the manufacturer and

 

reused as a beverage container.

 

     (11) (10) A dealer may accept, but is not required to accept,

 

from a person, empty returnable containers for a refund in excess

 

of $25.00 on any given day.

 

     (12) (11) A manufacturer licensed by the commission shall not

 

require a distributor licensed by the commission to pay a deposit

 

to the manufacturer on a nonrefillable returnable container.

However, a manufacturer licensed by the commission and a

 

distributor licensed by the commission may enter into an agreement

 

providing that either or both may originate a deposit or any

 

portion of a deposit on a nonrefillable returnable container if the

 

agreement is entered into freely and without coercion.

 

     (13) (12) A manufacturer shall refund the deposit paid on any

 

container returned by a distributor for which a deposit has been

 

paid by a distributor to the manufacturer.

 

     (14) (13) Subsections (4), (6), and (7) (8) apply only to a

 

returnable container that was originally sold in this state as a

 

filled returnable container.

 

     Sec. 3c. (1) There is created in the department of treasury a

 

bottle deposit fund which is a revolving fund administered by the

 

department of treasury. The Except as provided in subsection (4),

 

the money in the bottle deposit fund shall not revert to the

 

general fund.

 

     (2) The Except as provided in subsection (4), the amount paid

 

to the department of treasury by underredeemers shall be deposited

 

by the department of treasury in the bottle deposit fund created in

 

subsection (1) for annual disbursement by the department of

 

treasury in the following manner:

 

     (a) Seventy-five percent to the cleanup and redevelopment

 

trust fund created in section 3e.

 

     (b) Twenty-five percent to dealers to be apportioned to each

 

dealer on the basis of the number of empty returnable containers

 

handled by a dealer as determined by the department of treasury.

 

     (3) Not later than June 1 of each year, the department of

treasury shall publish and make available to the public information

 

related to section 3b(1) and send a report of that information to

 

the legislature.

 

     (4) Any money in the bottle deposit fund on December 31, 2025

 

shall lapse to the general fund and the state treasurer shall close

 

the bottle deposit fund.

 

     (5) (4) The department of treasury may promulgate rules to

 

implement sections 3a to 3d pursuant to subsection (4) and sections

 

3e(6) and 3f(5) under the administrative procedures act of 1969,

 

Act No. 306 of the Public Acts of 1969, being sections 24.201 to

 

24.328 of the Michigan Compiled Laws, 1969 PA 306, MCL 24.201 to

 

24.328, if the department of treasury determines that rules are

 

needed to properly implement and administer sections 3a to

 

3d.subsection (4) and sections 3e(6) and 3f(5).

 

     Sec. 3e. (1) The cleanup and redevelopment trust fund is

 

created within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the trust fund. The state treasurer

 

shall direct the investment of the trust fund. The state treasur er

 

treasurer shall credit to the trust fund interest and earnings from

 

fund investments.

 

     (3) Money Except as provided in subsection (6), money in the

 

trust fund at the close of the fiscal year shall remain in the

 

trust fund and shall not lapse to the general fund.

 

     (4) The Except as provided in subsection (6), the state

 

treasurer shall annually disburse the following amounts from the

 

trust fund:

     (a) For each of the state fiscal years 1996-1997, 1997-1998,

 

and 1998-1999, up to $15,000,000.00 each year of money in the trust

 

fund to the cleanup and redevelopment fund created in section 20108

 

of part 201 (environmental remediation) of the natural resources

 

and environmental protection act, Act No. 451 of the Public Acts of

 

1994, being section 324.20108 of the Michigan Compiled Laws.1994 PA

 

451, MCL 324.20108.

 

     (b) In addition to the disbursements under subdivision (a),

 

each state fiscal year, 80% of the revenues received by the trust

 

fund from disbursements under section 3c to the cleanup and

 

redevelopment fund and 10% to the community pollution prevention

 

fund created in section 3f.

 

     (5) All Except as provided in subsection (6), all money in the

 

trust fund that is not disbursed pursuant to subsection (4) shall

 

remain in the trust fund until the trust fund reaches an

 

accumulated principal of $200,000,000.00. After the trust fund

 

reaches an accumulated principal of $200,000,000.00, interest and

 

earnings of the trust fund only shall be expended, upon

 

appropriation, for the purposes specified in section 20113(4) of

 

part 201 (environmental remediation) of the natural resources and

 

environmental protection act, Act No. 451 of the Public Acts of

 

1994, being section 324.20113 of the Michigan Compiled Laws.1994 PA

 

451, MCL 324.20113.

 

     (6) Any money in the trust fund on December 31, 2025 shall

 

lapse to the general fund and the state treasurer shall close the

 

trust fund.

 

     (7) (6) As used in this section, "trust fund" means the

cleanup and redevelopment trust fund created in subsection (1).

 

     Sec. 3f. (1) The community pollution prevention fund is

 

created within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the community pollution prevention

 

fund. The state treasurer shall direct the investment of the

 

community pollution prevention fund. The state treasurer shall

 

credit to the community pollution prevention fund interest and

 

earnings from fund investments.

 

     (3) Money Except as provided in subsection (5), money in the

 

community pollution prevention fund at the close of the fiscal year

 

shall remain in the community pollution prevention fund and shall

 

not lapse to the general fund.

 

     (4) The department of environmental quality shall expend

 

interest and earnings of the community pollution prevention fund

 

only, upon appropriation, for grants for the purpose of preventing

 

pollution, with an emphasis on the prevention of groundwater

 

contamination and resulting risks to the public health, ecological

 

risks, and public and private cleanup costs. The department of

 

environmental quality shall enter into contractual agreements with

 

grant recipients, who shall include county governments, local

 

health departments, municipalities, and regional planning agencies.

 

Activities to be performed by grant recipients and program

 

objectives and deliverables shall be specified in the contractual

 

agreements. Grant recipients shall provide a financial match of not

 

less than 25% nor more than 50%. Not more than $100,000.00 may be

 

granted in any fiscal year to a single recipient. Eligible

pollution prevention activities include all of the following:

 

     (a) Drinking water wellhead protection, including the

 

delineation of wellhead protection areas and implementation of

 

wellhead protection plans pursuant to under the safe drinking water

 

act, Act No. 399 of the Public Acts of 1976, being sections

 

325.1001 to 325.1023 of the Michigan Compiled Laws.1976 PA 399, MCL

 

325.1001 to 325.1023.

 

     (b) The review of pollution incident prevention plans prepared

 

by, and the inspection of, facilities whose storage or handling of

 

hazardous materials may pose a risk to the groundwater.

 

     (c) The identification and plugging of abandoned wells other

 

than oil and gas wells.

 

     (d) Programs to educate the general public and businesses that

 

use or handle hazardous materials on pollution prevention methods,

 

technologies, and processes, with an emphasis on the direct

 

reduction of toxic material releases or disposal at the source.

 

     (5) Any money in the community pollution prevention fund on

 

December 31, 2025 shall lapse to the general fund and the state

 

treasurer shall close the community pollution prevention fund.

 

     (6) (5) The department of environmental quality shall annually

 

prepare a report summarizing the grants made under this section,

 

contractual commitments made and achieved, and a preliminary

 

evaluation of the effectiveness of this section not later than

 

September 30, 1997, and September 30 of each year thereafter, and

 

shall provide a copy of this report to the chairs of the house and

 

senate appropriations subcommittees for the department of

 

environmental quality.

     Enacting section 1. 1976 IL 1, MCL 445.571 to 445.576, is

 

repealed effective January 1, 2026.