Florida Senate - 2018 SB 1856 By Senator Rader 29-00339-18 20181856__ 1 A bill to be entitled 2 An act relating to beverage container deposits; 3 creating s. 403.778, F.S.; providing a short title; 4 defining terms; establishing a refund value for 5 specified beverage containers; requiring consumers and 6 dealers to pay a deposit fee for specified beverage 7 containers; requiring certain information to be 8 affixed to or printed on deposit beverage containers; 9 providing for the redemption of beverage containers 10 and the refunding of deposit fees; providing 11 requirements and procedures for redemption centers; 12 authorizing the use of reverse vending machines; 13 specifying requirements and procedures for deposit 14 beverage dealers and distributors; requiring payment 15 of a certain handling fee; requiring dealers, 16 distributors, redemption centers, and recycling 17 facilities to keep specified information and records; 18 authorizing the Department of Environmental Protection 19 or other specified entities to conduct certain audits; 20 clarifying that certain trade secret information is 21 confidential but authorizing the release of that 22 information in a manner that would not reveal the 23 trade secret; requiring the department to adopt rules; 24 specifying which containers are subject to redemption, 25 deposit refunds, and handling fees; specifying 26 conditions for violation of the act; providing a civil 27 penalty for tendering more than a specified number of 28 containers not sold in this state; providing for 29 disposition of the penalty; prohibiting local 30 governments from imposing fees for the same or similar 31 purpose; providing an effective date. 32 33 WHEREAS, the Legislature finds that reducing roadside 34 litter is important for the promotion of tourism and to increase 35 the quality of life for the residents of this state, and 36 WHEREAS, the Legislature further finds that recycling is an 37 important element of an integrated solid waste management system 38 that protects and preserves environmental resources and reduces 39 economic costs to residents and businesses in this state, and 40 WHEREAS, the Legislature further finds that the reduction 41 of litter and the expansion of recycling program participation 42 is in the best interest of Floridians and visitors to this 43 state, and 44 WHEREAS, the purposes of this act are to reduce litter, to 45 increase recycling rates for specified deposit beverage 46 containers, to encourage recycling, to reduce waste disposal 47 costs, to provide a connection between manufacturing decisions 48 and recycling program management, to create local jobs, to 49 combat climate change, and to save energy, NOW, THEREFORE, 50 51 Be It Enacted by the Legislature of the State of Florida: 52 53 Section 1. Section 403.778, Florida Statutes, is created to 54 read: 55 403.778 Beverage container deposits.— 56 (1) SHORT TITLE.—This section may be cited as the “Florida 57 Beverage Container Deposit Act.” 58 (2) DEFINITIONS.—As used in this section, the term: 59 (a) “Certified recovered materials dealer” has the same 60 meaning as in s. 403.7046. 61 (b) “Consumer” means a person who buys a deposit beverage 62 in a deposit beverage container for use or consumption and pays 63 the deposit. 64 (c) “Dealer” means a person who engages in the sale of 65 deposit beverages in deposit beverage containers to a consumer 66 for off-premises consumption in the state. 67 (d) “Deposit beverage” means beer, ale, or other drink 68 produced by fermenting malt; mixed spirits, mixed wine, wine, 69 distilled spirits, and wine coolers; tea and coffee drinks, 70 regardless of dairy-derived product content; soda; carbonated 71 and noncarbonated water; and all nonalcoholic drinks in liquid 72 form which are intended for internal human consumption and are 73 contained in a deposit beverage container. The term does not 74 include: 75 1. A liquid that is a syrup in a concentrated form or 76 typically added as a minor flavoring ingredient in food or 77 drink, such as extracts, cooking additives, sauces, or 78 condiments. 79 2. A liquid that is a drug, medical food, or infant formula 80 as defined by the Federal Food, Drug, and Cosmetic Act, 21 81 U.S.C. ss. 301 et seq. 82 3. A liquid that is designed and consumed only as a dietary 83 supplement and not as a beverage as defined in the Dietary 84 Supplement Health and Education Act of 1994, Pub. L. No. 103 85 417. 86 4. Products frozen at the time of sale to the consumer or, 87 in the case of institutional users such as hospitals and nursing 88 homes, at the time of sale to the user. 89 5. Products designed to be consumed in a frozen state. 90 6. Instant drink powders. 91 7. Seafood, meat, or vegetable broths or soups, but not 92 juices made or derived from these products. 93 8. Milk and all other dairy-derived products, except tea 94 and coffee drinks containing such products. 95 (e) “Deposit beverage container” means a sealed, individual 96 container made of glass, aluminum, steel, bimetal, or plastic, 97 including polyethylene terephthalate, high-density polyethylene, 98 and all other plastic types and grades, in sizes of at least 6 99 fluid ounces but no more than 1 gallon, and used, at the time of 100 sale to the consumer, for containing a deposit beverage intended 101 for use or consumption in this state. 102 (f) “Distributor” means a person who is a manufacturer of 103 deposit beverages in deposit beverage containers in this state 104 or who buys, brings, or accepts delivery of deposit beverage 105 containers from an address, supplier, or any entity outside the 106 state and who engages in the sale of filled deposit beverage 107 containers to a dealer or consumer. The term includes federal 108 agencies and military distributors, but does not include 109 airlines and shipping companies that merely transport deposit 110 beverage containers. 111 (g) “Mobile redemption center” means a traveling certified 112 redemption center that offers on-site container redemption to 113 residences, businesses, or both, either on a one-time or regular 114 basis, regardless of whether the mobile service is associated 115 with a dealer or permanent redemption center. 116 (h) “On-premises consumption” means to consume deposit 117 beverages immediately and within the area under control of the 118 establishment, including bars, restaurants, cafes, passenger 119 ships, and airplanes. 120 (i) “Person” means a federal agency; the state or a 121 political subdivision of the state; an individual, partnership, 122 firm, association, public or private corporation, trust, or 123 estate; or any other legal entity. 124 (j) “Recycling facility” means all contiguous land, 125 structures, appurtenances, and improvements on land that is: 126 1. Used for the collection, separation, recovery, and sale 127 or reuse of secondary resources that would otherwise be disposed 128 of as municipal solid waste; and 129 2. An integral part of a manufacturing process aimed at 130 producing a marketable product made of post-consumer material. 131 (k) “Redeemer” means a person, other than a dealer or 132 distributor, who demands the refund value in exchange for the 133 empty deposit beverage container. 134 (l) “Redemption center” or “permanent redemption center” 135 means an operation in a fixed location which accepts empty 136 deposit containers from consumers or redeemers, provides the 137 refund value for empty deposit beverage containers intended to 138 be recycled, and ensures that such containers are properly 139 recycled. 140 (m) “Reverse vending machine” means a mechanical device 141 that accepts one or more types of empty deposit beverage 142 containers and issues cash, electronic credit, or a redeemable 143 credit slip with a value not less than the container’s refund 144 value. 145 (n) “Satellite drop-off site” means a designated site where 146 participating consumers bring empty containers for processing at 147 a centralized processing facility. 148 (3) REFUND VALUES.—Beginning July 1, 2019, every deposit 149 beverage container sold or offered for sale in this state shall 150 have the following refund value when empty: 151 (a) Twenty cents for each deposit beverage container with a 152 volume of at least 6 fluid ounces but less than 25 fluid ounces. 153 (b) Thirty cents for each deposit beverage container with a 154 volume of at least 25 fluid ounces but not more than 1 gallon. 155 (4) DEPOSIT FEE.— 156 (a) Beginning July 1, 2019, every deposit beverage 157 distributor must charge the dealer or consumer a deposit fee 158 equal to the refund value for each deposit beverage container 159 sold to the dealer or consumer in the state. The deposit charge 160 may appear as a separate line item on the invoice. 161 (b) Beginning July 1, 2019, every dealer must charge the 162 consumer at the point of sale a deposit fee equal to the refund 163 value for each deposit beverage container sold to the consumer 164 in the state, except on beverages intended for on-premises 165 consumption. The deposit charge may appear as a separate line 166 item on the invoice. 167 (c) Every deposit beverage container sold or offered for 168 sale in this state must be clearly identified by a stamp, label, 169 or other mark securely affixed to or printed on the deposit 170 beverage container bearing the word “Florida” or the letters 171 “FL” and indicating the refund value of the deposit beverage 172 container. Such stamp, label, or other mark must be provided by 173 the beverage distributor. 174 (d) Inventory already in circulation on July 1, 2019, must 175 be affixed with an adhesive sticker bearing the word “Florida” 176 or the letters “FL” and indicating the refund value of the 177 deposit beverage container. Such sticker must be provided by the 178 beverage distributor. 179 (e) Once a refund value has been affixed to a deposit 180 beverage container, the deposit fee on that container may not be 181 changed. 182 (5) REDEMPTION CENTERS.— 183 (a) A person may not establish or operate a redemption 184 center without registering with the department, on a form 185 provided by the department, and providing such information as 186 the department deems necessary to register a redemption center. 187 At a minimum, the department must obtain the following 188 information from a redemption center registrant: 189 1. The name and business address of the business owner of 190 the redemption center. 191 2. The types of deposit beverage containers to be accepted 192 and whether deposit beverage containers will be accepted from 193 redeemers, dealers, or both. 194 3. The hours of operation and whether the center will 195 operate a mobile redemption center or provide a satellite drop 196 off site. 197 (b) The operator of the redemption center shall report any 198 change in procedure to the department within 48 hours of the 199 change. A person establishing a redemption center has the right 200 to determine what kind, size, or brand of deposit beverage 201 container to accept. A redemption center may be established to 202 serve all persons or to serve certain specified consumers, 203 redeemers, and dealers. 204 (c) Municipal and county governments, nonprofit agencies, 205 dealers, and individuals may register to operate a redemption 206 center. 207 (d) The department, at any time, may review the 208 registration of a redemption center. 209 (e) Except for redemption centers operated by a certified 210 recovered materials dealer, a redemption center shall: 211 1. Verify that all deposit beverage containers to be 212 redeemed bear a valid Florida refund value. 213 2. Pay to the redeemer the full refund value for all 214 deposit beverage containers as provided for by this section. 215 3. Ensure all deposit beverage containers collected are 216 recycled through a contractual agreement with an out-of-state 217 recycler or an in-state certified recovered materials dealer. 218 (f) A redemption center must be maintained in full 219 compliance with applicable laws and with the orders and rules of 220 the department. 221 (g) A redemption center shall refuse to pay the refund 222 value on any broken, corroded, dismembered, or flattened deposit 223 beverage container or any deposit beverage container that 224 contains a free-flowing liquid, does not properly indicate a 225 refund value, or contains a significant amount of foreign 226 material. 227 (h) For purposes of this section, a redemption center is 228 deemed to be sponsored by a dealer if there is an agreement 229 between the dealer and the operator of the redemption center 230 requiring the redemption center to remove empty deposit beverage 231 containers from the premises of the dealer. 232 (6) REVERSE VENDING MACHINES.— 233 (a) A reverse vending machine may be used by a redemption 234 center if the machine accepts all of the same types of empty 235 deposit beverage containers and pays out appropriate refunds in 236 cash, electronic credit, or a redeemable voucher for those 237 containers that bear a valid Florida refund value. The refund 238 value shall be aggregated and then paid if more than one 239 container is redeemed in a single transaction. 240 (b) A redemption center or dealer that uses reverse vending 241 machines must ensure that the machines are routinely serviced to 242 maintain proper operation, continuous acceptance of containers, 243 and payment of refunds. 244 (7) REQUIREMENTS FOR DEALERS.— 245 (a) A dealer may not refuse to accept from any person and 246 redeem at the dealer’s place of business any empty deposit 247 beverage container of the kind, size, or brand sold by the 248 dealer or refuse to pay to such person the refund value of the 249 deposit beverage container as established by this section, 250 unless: 251 1. The deposit beverage container is broken, corroded, 252 dismembered, or flattened; contains a free-flowing liquid; does 253 not properly indicate a refund value; or contains a significant 254 amount of foreign material; or 255 2. There is a redemption center located within 1 mile of 256 the dealer’s place of business which accepts empty deposit 257 beverage containers of the kind, size, or brand sold by the 258 dealer at the dealer’s place of business. This subparagraph does 259 not apply unless the dealer posts a clear and conspicuous sign 260 at each public entrance to its place of business which specifies 261 the name, address, and hours of operation of the closest 262 redemption center location. 263 (b) If a dealer discontinues the sale of a deposit beverage 264 container of the kind, size, or brand previously sold at the 265 dealer’s place of business, the dealer may not refuse to accept 266 and redeem such containers for the 60-day period immediately 267 after the dealer’s last sale of that kind, size, or brand of 268 deposit beverage container. The dealer shall post at the point 269 of sale a notice of the last date on which the discontinued 270 kind, size, or brand of deposit beverage container may be 271 redeemed. Such notice must be so posted for the entire 60-day 272 period. 273 (c) A dealer accepting empty deposit beverage containers 274 shall: 275 1. Verify that all empty deposit beverage containers to be 276 redeemed bear a valid Florida refund value. 277 2. Pay to the redeemer the full refund value for all empty 278 deposit beverage containers as provided by this section. 279 3. Ensure that each deposit beverage container collected is 280 recycled through a contractual agreement with an out-of-state 281 recycler or an in-state certified recovered materials dealer. 282 (8) REQUIREMENTS FOR DISTRIBUTORS.— 283 (a) A distributor may not refuse to accept any empty 284 deposit beverage container of the kind, size, or brand sold by 285 the distributor or refuse to pay to a dealer or redemption 286 center operator the refund value of a deposit beverage container 287 established by this section when the deposit beverage container 288 is from a dealer or the operator of a redemption center if such 289 dealer or operator is located within the territory of the 290 distributor, or from an operator of a redemption center who 291 certifies to the distributor that the redeemed container was 292 from a dealer located and operated exclusively within the 293 territory of the distributor. 294 (b) A distributor may refuse to accept and redeem an empty 295 deposit beverage container that is broken, corroded, 296 dismembered, or flattened; contains a free-flowing liquid; does 297 not properly indicate a refund value; or contains a significant 298 amount of foreign material. 299 (c) A distributor shall remove any empty deposit beverage 300 containers from the premises of a dealer serviced by the 301 distributor or from the premises of a redemption center 302 sponsored by any dealer serviced by the distributor when such 303 premises are located within the territory of the distributor. 304 (d) The distributor shall pay the refund value to a dealer 305 in accordance with a schedule for payment agreed to by the 306 dealer and the distributor for full deposit beverage containers. 307 The distributor shall pay the refund value to an operator of a 308 redemption center not more than 20 days after receipt of the 309 empty deposit beverage container. 310 (e) If a distributor discontinues the sale of a deposit 311 beverage container of the kind, size, or brand previously sold 312 at the dealer’s place of business, the distributor may not 313 refuse to accept and redeem such containers for the 150-day 314 period immediately after the distributor’s last day of delivery 315 of that kind, size, or brand of deposit beverage container. Not 316 less than 120 days before the last date such containers may be 317 redeemed, the distributor must notify the dealer who bought the 318 discontinued kind, size, or brand of deposit beverage container 319 that the distributor no longer redeems that empty container. 320 (9) HANDLING FEE REIMBURSEMENT.—Upon a dealer or a 321 redemption center redeeming empty deposit beverage containers, a 322 distributor must pay the dealer or redemption center a handling 323 fee in an amount that is at least 20 percent of the deposit 324 returned to the consumer in addition to the refund for such 325 beverage containers. 326 (10) REQUIRED INFORMATION AND RECORDS.— 327 (a) All dealers, distributors, redemption centers, and 328 recycling facilities that accept empty deposit beverage 329 containers shall submit the following information to the 330 department: 331 1. The amount and type of deposit beverage containers 332 accepted and rejected; 333 2. The amount of refunds paid out; 334 3. The amount and weight of each type of deposit beverage 335 container transported to each out-of-state recycler and in-state 336 certified recovered materials dealer; 337 4. Copies of transport and weight receipts from recycling 338 facilities. If the redemption center and the recycling facility 339 are the same entity, receipts must be independently verified. 340 Such documentation may be used for periodic, random department 341 audits of redemption centers. 342 (b) The records of dealers, distributors, redemption 343 centers, and recycling facilities that accept empty deposit 344 beverage containers must be made available, upon request, for 345 inspection by the department, a duly authorized agent of the 346 department, or an auditor employed by the state. 347 (c) Pursuant to s. 815.04, information that, if disclosed, 348 would reveal a trade secret as defined in s. 812.081, and that 349 must be reported in accordance with this section or rules 350 adopted pursuant to this section, is confidential and exempt 351 from s. 119.07(1) and s. 24(a), Art. I of the State 352 Constitution. However, for reporting or other informational 353 purposes, the department may provide potential trade secret 354 information in such a form that the names of the persons 355 reporting the information and the specific trade secret 356 information are not revealed. 357 (11) RULES.—The department shall adopt rules pursuant to 358 chapter 120 to implement this section. Such rules must include, 359 but need not be limited to, provisions for the redemption of 360 empty deposit beverage containers dispensed through vending 361 machines; the use of reverse vending machines that dispense 362 cash, electronic credit, or a redeemable voucher to consumers 363 for redemption of empty deposit beverage containers; the 364 scheduling of redemption by dealers and distributors; and 365 exemptions or modifications to the labeling requirement of this 366 section. 367 (12) OBLIGATION; VIOLATION OF SECTION; PENALTY; REQUIRED 368 SIGNAGE.— 369 (a) The obligation of a distributor or dealer to accept or 370 take empty deposit beverage containers and to pay the refund 371 value and handling fees for such containers applies only to 372 deposit beverage containers originally sold in this state as 373 filled deposit beverage containers. 374 (b) A person may not, during a single transaction, tender 375 to a dealer, distributor, or redemption center more than 24 376 empty deposit beverage containers that the person knows, or has 377 reason to know, were not originally sold in this state as filled 378 deposit beverage containers. A person who violates this 379 paragraph commits a noncriminal infraction, punishable by a 380 civil penalty of $100, which must be deposited in the 381 Administrative Trust Fund of the department and used to 382 administer this section. 383 (c) At each location where customers tender empty deposit 384 beverage containers for redemption, dealers and redemption 385 centers must conspicuously display a sign with letters that are 386 at least 1 inch in height advising consumers of the prohibition 387 and penalty in paragraph (b). 388 (13) PREEMPTION.—A county or municipality may not impose or 389 collect any assessment or fee on deposit beverage containers for 390 the same or similar purpose that is the subject of this section. 391 Section 2. This act shall take effect upon becoming a law.