GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1007

Short Title:  Plastic/Glass Container Deposit.	(Public)
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Sponsors: Representatives Gottovi; Barnes, Colton, Diamont, Ethridge, Gamble, Luebke, and McAllister.
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Referred to:  Environment.
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April 19, 1991

A BILL TO BE ENTITLED
AN ACT TO ENCOURAGE RECYCLING AND DISCOURAGE LITTERING BY REQUIRING A DEPOSIT ON GLASS AND PLASTIC BEVERAGE CONTAINERS AND REQUIRING DEALERS AND REDEMPTION CENTERS TO ACCEPT RETURNED GLASS AND PLASTIC CONTAINERS AND REFUND THE DEPOSITS.
The General Assembly of North Carolina enacts:
Section 1.  Article 9 of Chapter 130A of the General Statutes is amended by adding a new Part to read:
"Part 2C.  Beverage Container Deposits and Refunds.
"§ 130A-309.70.  Findings; intent.
(a)	The General Assembly finds that:
(1)	Beverage containers should be reused or recycled;
(2)	Beverage containers constitute a major source of nondegradable litter and solid waste in this State;
(3)	The collection and disposal of this litter and solid waste imposes a great financial burden on the citizens of North Carolina.
"§ 130A-309.71.  Definitions.
	Unless a different meaning is required by the context, the following definitions apply throughout this Part:
(1)	'Beverage' means any malt beverage; spirituous liquor; fortified wine; unfortified wine; wine cooler; soda or noncarbonated water; and all nonalcoholic carbonated or noncarbonated drinks in liquid form and intended for human consumption, except milk and dairy-derived products.
(2)	'Beverage container' means a bottle, can, jar, or other container, which has been sealed by a manufacturer, which contains a beverage, and which is made of glass or plastic.
(3)	'Consumer' means an individual who purchases a beverage in a beverage container for use or consumption.
(4)	'Dealer' means a person who sells or offers for sale in this State to consumers a beverage in a beverage container, including an operator of a vending machine containing a beverage in a beverage container.
(5)	'Distributor' means a person who engages in the sale of beverages in beverage containers to a dealer, including any manufacturer who engages in such sales.
(6)	'Fortified wine' has the same meaning as in G.S. 18B-101.
(7)	'Malt beverage' has the same meaning as in G.S. 18B-101.
(8)	' Operator of a vending machine' means its owner, the person who refills it, or the owner or lessor of the property upon which it is located.
(9)	'Redemption center' means a store or other location where any person may, during specified normal business hours, redeem the amount of the deposit for an empty beverage container.
(10)	'Refillable' means a beverage container which, after being used by a consumer, is to be reused as a beverage container at least five times by a manufacturer.
(11)	'Spirituous liquor' has the same meaning as in G.S. 18B-101.
(12)	'Unfortified wine' has the same meaning as in G.S. 18B-101.
(13)	'Use or 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 purposes of sale of a beverage.
(14)	'Wine cooler' means a beverage of less than eight percent (8%) 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 flavors or flavorings;
4.	Preservatives;
5.	Coloring; or
6.	Any other natural or artificial blending material.
"§ 130A-309.72.  Deposit and refund value.
Every beverage container sold or offered for sale to a consumer in this State which contains one gallon or less of a beverage  shall have a deposit and refund value.  The deposit and refund value shall be determined as follows:
(1)	For refillable beverage containers, except fortified and unfortified wine and spirituous liquor containers, the manufacturer shall determine the deposit and refund value according to the type, kind, and size of the beverage container.  The deposit and refund value shall not be less than five cents (5¢).
(2)	For nonrefillable beverage containers, except fortified and unfortified wine and spirituous liquor containers, the distributor shall determine the deposit and refund value according to the type, kind, and size of the beverage container.  The deposit and refund value shall not be less than five cents (5¢).
(3)	For fortified and unfortified wine and spirituous liquor containers of greater than 50 milliliters, the refund value shall not be less than fifteen cents (15¢).  On January 1, 1993, the Department shall issue a finding on the percentages of fortified and unfortified wine containers and spirituous containers returned for deposit.  If the Department finds the return rate of fortified wine containers plus the return rate for unfortified wine containers was less than sixty percent (60%) during l992, then, on July 1, l993, the refund value on fortified and unfortified wine containers shall not be less than twenty-five cents (25¢).  If the Department finds the return rate of spirituous liquor containers was less than sixty percent (60%) during l992, then on July 1, 1993, the refund value on spirituous liquor containers shall not be less than twenty-five cents (25¢).
"§ 130A-309.73.  Acceptance of beverage containers; limitations; duties of distributors.
(a)	Except as provided in G.S. 130A-309.76 and subsection (g) of this section, a dealer shall not refuse to accept at his regular place of business from any consumer or other person not a dealer any empty returnable container of any kind, size, and brand sold by that dealer, nor refuse to pay to the consumer its full refund value in cash as established by G.S. 130A-309.72.
(b)	A dealer may elect to accept returnable containers during all regular business hours.  If a dealer elects not to accept returnable containers during all regular business hours, such dealer shall display a poster meeting the requirements of G.S. 130A-309.78, indicating hours totaling at least three hours per day, five days per week, during which such containers will be accepted.
(c)	A dealer may limit the total number of beverage containers which he will accept from any one consumer or other person in any one business day to 240 containers, or any other number greater than 240.
(d)	A dealer or a redemption center may refuse to redeem from a consumer, and a distributor may refuse to redeem from a dealer or a redemption center, any:
(1)	Empty beverage container which is not labeled as required by G.S. 130A-309.77;
(2)	Beverage container which is not empty and free of materials foreign to the original contents of the container; and
(3)	Glass beverage container which is broken.
(e)	A distributor or manufacturer shall not refuse to accept from any dealer or any redemption center any empty returnable container of any kind, size, and brand sold by that distributor or manufacturer, nor refuse to pay the dealer or the operator of the redemption center its full refund value as established by G.S. 130A-309.72.
(f)	In addition to being reimbursed for the payment of the refund value, the dealer or any operator of a redemption center shall be reimbursed by the initiator of the deposit under G.S. 130A-309.72 for the cost of handling beverage containers in an amount that equals at least three cents (3¢) per returned container.
(g)	A dealer may refuse to accept beverage containers if there is a redemption center established pursuant to G.S. 130A-309.75 that serves that dealer as stated in the order approving the redemption center.
(h)	The Department may establish, by rule, criteria prescribing the manner in which the initiator of the deposit shall have the obligation to pick up any empty, unbroken, and reasonably clean beverage containers of the particular kind, size, and brand sold by the initiator from dealers to whom a distributor has sold those beverages and from redemption centers.  The obligation may be fulfilled by the initiator directly or indirectly through a contracted agent.  The rules may establish a minimum number or value of containers below which a distributor is not required to respond to a request to pick up empty containers.  Any rules promulgated under this subsection must allocate the burdens associated with the handling, storage, and transportation of empty containers to prevent unreasonable financial or other hardship.
(i)	Prior to March 1 of each year, each distributor shall report to the Department the total amount of deposits paid to it by any person during the preceding calendar year, as well as the total amount of refunds paid by it to any person during that calendar year.
"§ 130A-309.74.  Dealer as distributor.
Whenever any dealer or group of dealers receives a shipment or consignment of, or in any other manner acquires, beverage containers outside the State for sale to consumers in the State, such dealer shall comply with this Part as if they were distributors, as well as dealers.
"§ 130A-309.75.  Redemption centers.
(a)	Any dealer, group of dealers, municipality, agency, regional association, or any person or other entity may seek the approval of the Secretary to operate a redemption center to serve local dealers and consumers, at which consumers may return empty beverage containers pursuant to G.S. 130A-309.73.
(b)	Application for approval of a redemption center shall be filed with the Department.  The application shall state the names and addresses of the operator of the center and the person responsible for the center, and the names and addresses of dealers to be served and their distances from the redemption center.
(c)	The Secretary shall approve a redemption center if he finds that the center will provide a convenient service for the return of empty beverage containers.  The order approving a redemption center shall state the dealers to be served and the kinds, sizes, and brand names of empty beverage containers which the center will accept.
(d)	A redemption center shall not refuse to accept from any consumer or other person not a dealer any empty, unbroken, and reasonably clean beverage container of the kind, size, and brand sold by a dealer served by the center or refuse to pay in cash the refund value of the returned beverage container as established by G.S. 130A-309.72.
(e)	A list of the dealers served and the kinds, sizes, and brand names of empty beverage containers accepted and the hours the redemption center will accept returnable beverage containers shall be prominently displayed at each redemption center.
(f)	The Secretary may withdraw approval of a redemption center if it has not complied with the approval order or if the redemption center no longer provides a convenient service to the public.
"§ 130A-309.76.  Alternate redemption arrangements for vending machines.
Any dealer who is an operator of a vending machine or machines and who is not otherwise a dealer, may elect to arrange with another dealer or a redemption center, within five miles of the location of such vending machine or machines, to redeem beverage containers from his vending machines.  Any such dealer, so long as such arrangement is in effect, shall be relieved of the duty to redeem beverage containers under this Part.  Such dealer shall post on each vending machine the name and address of the redeeming dealer.
"§ 130A-309.77.  Labeling.
(a)	Every beverage container which contains a beverage which is sold or offered for sale in this State shall clearly indicate by embossing or imprinting on the normal product label, or in the case of metal beverage containers, on the top of the container the words 'North Carolina' or the initials 'N.C.' and the refund value of the container in not less than one-quarter inch type size.
(b)	This section does not apply to any permanently labeled glass beverage container having a refund value of not less than five cents (5¢) prior to the effective date of this Part and having a brand name permanently marked thereon, unless such glass beverage container contains spirituous liquors, fortified or unfortified wines, or malt beverages.
"§ 130A-309.78.  Posting redemption hours.
(a)	The Secretary shall prepare and print suitable posters for sale at cost to dealers who wish to give public notice of the hours during which returnable containers will be redeemed and the place of such redemption.
(b)	The posters shall be substantially in the following form:
'NOTICE TO CUSTOMERS
In accordance with the provisions of Article 25 of Chapter 130 of the North Carolina General Statutes, this store will redeem clean returnable beverage containers during the following 40 or more hours of each week:
Monday	             
Tuesday	             
Wednesday	             
Thursday	             
Friday	             
Saturday	             
Sunday	             

(Name of store or establishment)	(Operator, manager, or owner.)'
"§ 130A-309.79.  Prohibition on certain types of containers.
  No beverage may be sold or offered for sale to consumers in this State:
(1)	In a container composed of one or more plastics if the basic structure of the container, exclusive of the closure device, also includes aluminum or steel; or
(2)	In a container composed, in whole or in part, of aluminum and plastic or of aluminum and paper in combination where those materials are for practical reasons inseparable.
"§ 130A-309.80.  Noncompliance a misdemeanor.  
It is a misdemeanor punishable by a fine not to exceed five hundred dollars ($500.00) or imprisonment not to exceed 30 days:
(1)	To sell or offer for sale beverages in containers not labeled in accordance with the provisions of this Part;
(2)	To refuse to accept and return the deposit on a beverage container in accordance with the provisions of this Part;
(3)	To operate a redemption center without the permit required by this Article; or
(4)	To make a report pursuant to G.S. 130A-309.73 that is false.
"§ 130A-309.81.  Exception for beverage containers used on international flights.
This Part does not apply to any beverage container sold to an airline and containing a beverage intended for consumption on an aircraft flight in interstate or foreign commerce."
Sec. 2.  This act becomes effective January 1, 1992.